MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI PRADEEP JAIN `ADITYA`)
(a): The Swarnjayanti Gram Swarojgar Yojana (SGSY) is a Centrally Sponsored Scheme and the
funding for the programme is shared between the Centre and the States in the ratio of 75:25,
except for North Eastern States, in whose case the ratio is 90:10. The central allocation
earmarked for the States, including Chhattisgarh, Jharkhand and Orissa, is distributed in
relation to the incidence of poverty in the States.
(b): A statement indicating release of central share of funds during the last three year
i.e. 2007-08 to 2009-10 and the current financial year 2010-11 (as on 31-10-2010) is at
Annexure.
(c) & (d): The SGSY is a holistic self employment programme aimed at improving family
incomes of the rural BPL population through a process of social mobilisation including
organizing them into Self Help Groups (SHGs), their training and capacity building, credit
linkage with banks and infrastructure and marketing support. SGSY is now being re-structured
into the National Rural Livelihoods Mission (NRLM) with a view to implement it in a mission
mode for targeted and time bound delivery of results. The salient features of NRLM are as
follows:
I. Universal Social Mobilisation, through ensuring that at least one member of each
rural BPL family is brought under the SHG network, and, formation of federations of SHGs
at various levels.
II. Provision of professional implementation structure from National to Sub district
levels.
III. Universal financial linkage, for ensuring linkage of all SHG members with banks and
ensuring availability of credit for the poor for consumption and livelihoods requirements by
building a pro- poor financial sector through
a. Provision of Revolving Fund & Capital Subsidy and using the same strategically for
leveraging credit for the poor
b. Introduction of Interest Subsidy for prompt repayment of loans
c. Strategic partnerships with banking sector
d. Leverage IT and business correspondents models
e. Financial literacy and financial counseling to SHG members
f. Micro insurance to cover life, health and assets
IV. Up scaling of skill development and placement projects for skilled wage employment to
rural BPL youth and innovative projects in the nature of pilot projects for triggering growth
impulses.
V. Involvement of States for State specific Action Plans in order to ensure that specific
needs of the states are addressed.
VI. Monitoring, Evaluation & Transparency: Under the NRLM there will be (i) regular impact
assessment (ii) a comprehensive MIS (iii) social accountability practices like social audits,
self correcting mechanism of SHGs etc.
(e) & (f): There were repeated consultations with the State Governments before restructuring
of SGSY as NRLM. A conference of State Ministers of Rural Development had been organized in
September, 2009 with a view to elicit comments of all the State Governments. The comments so
received have been considered while restructuring SGSY as NRLM. Subsequent to approval of NRLM
also, the State Governments have been consulted systematically through workshops and meetings on
finalisation of guidelines for the programme.
