Dr.

Hanumant Yadav,

Rural Development Schemes

(Self-employment Schemes)
1. Swarnjayanti Gram Swarozgar
Yojana (SGSY)/
2. National Rural Livelihoods
Mission (NRLM)
Dr. Hanumant

Yadav

Dr. Hanumant Yadav,

Swarnjayanti Gram Swarozgar Yojana

(SGSY)
Swarnjayanti Gram Swarozgar Yojana (SGSY)
is the single self-employment programme for
the rural poor launched on April 1, 1999.
The SGSY programme replaced the earlier
self-employment and allied programmes IRDP, TRYSEM, DWCRA, SITRA, GKY and
MWS.
It offered the perfect balance of credit and
subsidy.

Dr. Hanumant Yadav,

S.G.S.Y - STATUS
S.G.S.Y - 1999: a holistic programme
covering all aspects of selfemployment implemented in all the
States/UTs except Delhi & Chandigarh
Main Achievements since inception
38.9 lakh SHGs formed
1.47 crores Swarozgaris assisted
financially with bank credit &
subsidy

Dr. Hanumant Yadav,

S.G.S.Y - STATUS

Credit mobilization: from Rs.1100

crore in 1999-00 to over Rs.4450
crores in 2009-10
Per capita investment: from
Rs.17000 in 99 to Rs. 31800 in 09
Skills and placement projects: About
1.72 lakh beneficiaries trained &
1.35 lakh placed

Dr. Hanumant Yadav,

PROGRESS : S.G.S.Y 2009-10

Item

2009-10

1 SHGs formed (in Lakh)

3.9

2 Swarozgaris
3 assisted
(Lakhs)

Target

18.2

Ach (% ach)

20.8

(116%)

4 SC/ST s

10.8

(52%)

5 Women

15.2

(72%)

6 Minority

2.4

7 Total Investment (Rs. Cr)

6409

8 Subsidy : Credit Ratio

2.3

31817

Per Capita Investment

(11.6%)

Dr. Hanumant Yadav,

NEED FOR RESTRUCTURING

Shortcomings

experienced during
implementation
Feedback from key stakeholders
Large scale initiatives of some states
Recommendations of various studies
Steering Committee constituted by the
Planning Commission for the 11th Plan
Recommendations of Prof.
Radhakrishna Committee
6

Dr. Hanumant Yadav,

KEY LESSONS FROM LARGE SCALE

EXPERIENCES
Building institutions of poor critical to address
poverty holistically
Even the poorest family can come out of
abject poverty , in 6 - 8 years provided they
are:
organized, build and nurture own
institutions
provided continuous handholding support
able to access thrift and credit in repeat
doses, for meeting varied priority
requirements
7
minimum Rs.1.0 lakh per family required

Dr. Hanumant Yadav,

KEY LESSONS FROM LARGE SCALE

EXPERIENCES
Institutions of poor greatest source of
strength for the poor
Poor to drive all project initiatives
poor can best be reached through
empowered poor
Role of project staff and N.G.Os
redefining required as facilitators of
the process for enabling emergence of
community resource persons

Dr. Hanumant Yadav,

NATIONAL RURAL LIVELIHOODS

MISSION:
GOAL - POVERTY ELIMINATION

Sustainable livelihoods for

the rural
poor through social
mobilization and
institution building
9

Dr. Hanumant Yadav,

NATIONAL RURAL LIVELIHOODS

MISSION

Two major livelihoods streams:

accessing and optimizing self

employment opportunities, and,
accessing skilled wage
employment opportunities in
growing sectors of the economy
10 10

Dr. Hanumant Yadav,

GUIDING PRINCIPLES

Poor have a strong desire to come out of

poverty, and, have innate capabilities

Social mobilization and building strong

institutions of the poor critical for
unleashing their capabilities

Dedicated and sensitive support

structure required to induce social
mobilization
11 11

Dr. Hanumant Yadav,

Dedicated Support
Institutions
(Professionals,
Learning Platform
M & E Systems)

Institutional
Platforms of
Poor
(Aggregating and
Federating Poor, Women,
Small & Marginal
Farmers, S.Cs and S.Ts)

Human and
Social Capital
(Leaders, CRPs,
Community ParaProfessionals)

12

Dr. Hanumant Yadav,

SALIENT FEATURES: UNIVERSAL

SOCIAL MOBILISATION

Saturation approach
One member from each household,
preferably a woman, would be
organized into a S.H.G
All villages, blocks and districts in a
phased manner
Focus on most vulnerable: SC/ST,
PVTGs, minorities, women headed
households
Special focus on states with large tribal
population and LWE districts

13

Dr. Hanumant Yadav,

INSTITUTION BUILDING

Formation, nurturing - SHGs and their

Federations at village, block and
district level
Other collectives livelihoods
organisations
Institutional platform to provide space,
voice and resources for the poor
Best done through community
resource persons, federations of the
poor
14

Dr. Hanumant Yadav,

CAPACITY BUILDING

Continuous capacity building key to

strong institution building and
empowerment
Multi-pronged approach
Knowledge dissemination to all members
Most effective training at village level
Creating a cadre of trainers, service
providers, Community Resource Persons
(CRPs) and Master Craftsmen
Network of training institutions for
capacity building at districts and State
level

15

Dr. Hanumant Yadav,

BUILDING PRO-POOR FINANCIAL

SECTOR

Access to credit key to coming out

of poverty. Out of Rs.100,000 per
family required around 90% has to
come from financial institutions

Strategic partnerships with banking sector

Leverage IT and business correspondents
models
Facilitation support: Bank Mitras
Financial literacy and financial counseling
Interest subsidy on loans to SHGs
Micro insurance to cover life, health and assets
16

Dr. Hanumant Yadav,

KEY LIVELIHOODS PROMOTION

2 major livelihoods account for 80 85 % of

the incomes of the poor agriculture and
livestock

Promote end-to-end solutions, covering the

entire value chain

Promote community managed sustainable

agriculture for food security and for
secure livelihoods
17

Dr. Hanumant Yadav,

SKILL DEVELOPMENT AND

PLACEMENT

Up-scaling of Skill development through

public-private partnerships
15% of allocation for placement linked
skill development projects
50% of the funds for projects transferred
to States for inter district projects
Clear focus on placement
60 lakh skilled jobs for rural poor in 7
years planned
18

Dr. Hanumant Yadav,

SELF EMPLOYMENT AND MICRO

ENTERPRISE DEVELOPMENT

Entrepreneurship development
among local youth to generate
in self employment

60 70 lakh micro-enterprises

19

Dr. Hanumant Yadav,

ESTABLISHMENT OF RSETIS AND

THEIR EFFECTIVE FUNCTIONING
Plan
to set up 500 Rural Self
Employment
Training
Institutes
(RSETIs)
Bank led institutes. MoRD grant Rs.1
crore
for
building,
and,
reimbursement of training cost for
BPL candidates.
State Government would provide land
free of cost.
20

Dr. Hanumant Yadav,

LINKAGE WITH PRIs

Establish healthy relationship between

institutions of the poor and the PRIs based
on mutual respect and understanding

Institutions of the poor have a regular

dialogue with PRIs, provide all information
to them, and, actively participate in the
Gram sabhas

PRIs understand the role that S.H.Gs and

federations play in the life of the poor, and,
include pro-poor initiatives in their plans
21

Dr. Hanumant Yadav,

PARTNERSHIPS: N.G.O

N.G.Os pioneers in the country in

grassroots social mobilisation, building
institutions of poor
Partnership based on: mutual respect, core
principles of NRLM, accountability to
institutions of the poor, outcomes based
Learn from best practices of N.G.Os
Strengthen social capital created and
nurtured by them
Resource villages and resource blocks for
mentoring other blocks and districts
Pilots for innovations
22

Dr. Hanumant Yadav,

PARTNERSHIPS

Industry/ Industry associations:

Livelihoods promotion forward and
backward linkages
Skills and placement
Academic institutions
Capacity building of development
professionals, village level community
professionals
Evaluations and mid-course corrections
23

Dr. Hanumant Yadav,

FINANCIAL NORMS

Formation of S.H.G Rs.10,000 per S.H.G

Revolving fund: Rs. 10,000 to Rs. 15,000
per SHG equivalent to corpus of SHG
Capital Subsidy: Max Rs. 2.50 lakh per
SHG calculated @ Rs 15,000 for general
and Rs 20,000 for SC/ST per Swarozgari
RF and Capital subsidy - directly to SHGs
or through their federations

24

Dr. Hanumant Yadav,

FINANCIAL NORMS

Capacity building, skills training:

Maximum of Rs 7500 per Swarozgari

Interest subsidy: Difference between

PLR and Rs 7% per annum interest rate

Corpus fund for federations

Rs 10,000 at Village/Panchayat level
Rs 20,000 at Block level
Rs 100,000 at District level
25

Dr. Hanumant Yadav,

ACCOUNTABILITY

Extensive use of I.T for transparency

and real time monitoring
Accountability Systems

Regular meetings of S.H.Gs and

federations financial transactions
read out in the meeting

Social audit for transparency and

accountability
26

Dr. Hanumant Yadav,

RESULTS MONITORING

Computerised MIS

Periodic monitoring by teams of

experts visiting states

Baseline and impact evaluation by

independent agencies

Large scale independent study

panel data - monitoring same
households, once a year over 10
years
27

Dr. Hanumant Yadav,

Dr. Hanumant Yadav

28