Standing Committee 10-11

7/31/2019 Standing Committee 10-11

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Swaranjayanti Gram Swarozgar Yojana (SGSY)

Subject: Standing Committee on Rural Development Examination of

Demands for Grants for the year 2010-2011 of the Department of

Rural Development.

2. (v) A detailed note on Funds Allocated during the current Five Year Plan

(2007-2012), amount actually spent, targets fixed, for various

activities vis-a-via achievement, the reason for not achieving the

targets, if any, may also be indicated.

2. (vi)The amount earmarked during previous two Annual Plans, the amount

spent and the achievement made against the targets fixed for

various activities.

Reply to point 2. (v) & (vi): The Swaranjayanti Gram Swarozgar Yojana(SGSY) is amajor self employment programme for the rural poor under implementation since 1-4-

1999. The approved Plan outlay for the SGSY during current Five Year Plan is of Rs

17803 crore. Financial and Physical progress with regard to SGSY for the current Plan

is indicated below:

( Rs. in crores)

Year CentralAllocation

(RE)

CentralRelease

% Release Credit mobilization

Target Achievement %age

1 2 3 4 5 6 711th

Plan

2007-08 1800.00 1697.70 94.32 3743.55 2760.31 73.73

2008-09 2350.00 2337.89 99.48 3929.80 3530.07 89.832009-10(up to

Dec,09)

2350.00 1761.59 74.96 4443.91 2427.37 54.62

As compared to other years the credit mobilization during 2008-09 was significantlyhigher at 89.83% as against 73.73% during 2007-08

Reason for less credit Mobilization:-(i) Limited outreach of banks in rural areas leading to

(a) Unbanked blocks(b) Single man bank branches

(ii) Low awareness & motivation about the programme among the bankers(iii)Swarozgaris not perceived as credit worthy targets by banks.(iv) Insufficient training & capacity building of swarozgaris for making them credit

worthy.


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Under the scheme, physical targets and achievements during current five year plan is

given below:

*Assisted Swarozgaris are those who get Bank credit linked subsidy

** Including special projects

Particulars 2007-08 2008-09 2009-10 (upto Dec,09)

Target Ach. Target Ach. Target Ach.

1. No. of SHGsSwarozgarisassisted*(Assuming 10members perGroup)

1155000

1154269(100%)

1381689

1470032(106%)

1552884 957769(62%)

2. Total numberof individual

Swarozgarisassisted*

481250 545026(113%)

380981 291392(76%)

269598 143485(53%)

3. Total numberof Swarozgarisassisted **

1636250

1699295(103%)

1762670

1861875(106%)

1822482 1164898(64%)


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Annexure-I

SWARNJAYANTI GRAM SWAROZGAR YOJANA(SGSY)

(i) Brief particulars of the all Schemes/Projects

Reply: Swarnjayanti Gram Swarozgar Yojana(SGSY) is a holistic programme covering

all aspects of self-employment such as organisasation of the poor into self help

groups(SHGs), traning, credit, technology, infrastructure and marketing. There are

two key aspects of SGSY-namely Activity Clusters and the Group Approach. Under

the former, up to 10 key activities can be selected in each block. Assistance under

SGSY(to individual swarozgaris or self help groups) is given in the form of subsidy by

govt. and credit by the banks. Special safeguards have been provided to vulnerable

sections by way of reserving 50% benefits for SCs/STs, 40% for women, Minorities* to

the extent indicated by Ministry of Rural Development for each state and 3% fordisabled persons of the total Swarozgaries assisted during the year. Subsidy under

SGSY is uniform at 30% of the project cost subject to a maximum of Rs.7500. In

respect of SCs/STs and disabled persons, these will be 50% and Rs.10,000

respectively. For SHGs the subsidy is 50% of the cost of the scheme subject to per

capita subsidy of Rs.10,000/- or Rs.1.25 lakh whichever is less. There is no monetary

limit on subsidy for irrigation projects. Subsidy under the scheme is provided as

back-ended.

SGSY is financed on Cost Sharing basis by the Centre and the States in a ratio

of 75:25 for Non-NE States and 90:10 for NE States. This programme is being

implemented in all states except Delhi and Chandigarh since 1999. SGSY is

implemented by District Rural Development Agency(DRDA) through the panchayat

Samities and with the active involvement of other panchayati Raj Institutions, t1he

banks, the line departments and the Non Government organization(NGOs). The

programme is reviewed by a State Level SGSY Committee at the State level and a

Central Level Coordination Committee(CLCC) at the central level. Similar Committees

operate at the District and the Block Level as well.

Point No.(ii) : Total outlay in the current Five Year Plan(2007-2012) year-wise/project-wise.

Reply: Approved outlay of SGSY for current Five Year Plan is as under:

Approved Outlay (During current Five Year Plan) (Rs. in crores)

11th Plan Outlay - 17803.002007-08 - 1800.002008-09 - 2350.00

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2009-10 - 2350.00

Point No.(iii): Physical and Financial targets, if any, laid down in the saidplans for each Scheme.

Reply: Financial & Physical targets during current Five Year Plan

Year Central Allocation

(RE)

(Rs. In crore)

Target for credit

Mobilization

(Rs. In crore)

Target for No. of

Swarozgaris to be

assisted

(lakh. Swarozgaris)

2007-08 1800.00 3743.55 16.36

2008-09 2350.00 3929.80 17.62

2009-10 2350.00 4443.91 18.22

Point No.(iv): The percentage of achievement of plan targets (both in the

physical and financial terms) during preceding Year of Plan and the reasonfor slow progress, if any, in the achievement of the targets.

Reply: Financial and Physical achievement under SGSY during the Current Planis given below:

FINANCIAL PROGRESS DURING THE PRECEDING YEAR OF THE 11th PLAN

(Rs. in crores)Year Central

Allocat-

ion

CentralRelease

% Release Credit mobilization

Target Achievement %age

1 2 3 4 5 6 711th

Plan

2008-09 2350.00 2337.89 99.48 3929.80 3530.07 89.83

PHYSICAL PROGRESS PRECEDING YEAR OF THE 11th PLAN

2008-09

Target Ach.1. No. of SHGs Swarozgaris assisted (Assuming10 members per Group)

1381689 1470032(106%)

2. Total number of individual Swarozgarisassisted*

380980 291392(76%)

3. Total number of Swarozgaris assisted $ 1762670 1861875(106%)


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As compared to other years the credit mobilization during 2008-09 was significantlyhigher at 89.83% as against 73.73% during 2007-08

Reason for low credit Mobilization:-(v) Limited outreach of banks in rural areas leading to

(c) Unbanked blocks(d) Single man bank branches

(vi)Low awareness & motivation about the programme among the bankers(vii) Swarozgaris not perceived as credit worthy targets by banks.(viii) Insufficient training & capacity building of swarozgaris for making them

credit worthy.

Point No. (v): Proposal by the Department of Rural Development (Ministryof Rural Development) and amount actually provided by the PlanningCommission for the scheme in Annual Plans separately for the last threeyears. Copies of Annual Plan proposals as finalized along with the reasons

for variation between the proposals

Reply: Proposed and approved Annual Plans outlay during the years 2007-08, 2008-09 and 2009-10 are as under:-

(Rs. in crores)Year Proposed outlay Amount provided

2007-08 8000.00 1800.00

2008-09 3000.00 2350.00

2009-10 12423.54 2350.00

Point No. (vi): Statement showing budget estimates, revised estimates and

actual expenditure for the past two years and budget estimates for the

current year showing separately plan and non-plan expenditure:

Reply: Statement showing budget estimates, revised estimates and actual

expenditure (so far) for the year 2007-08,2008-09 and Budget Estimates for 2009-10

is as under:

(Rs. in crores)

Year Budget Estimates Revised Estimates Actual Release

Plan Non Plan Plan Non-Plan Plan Non-Plan

2007-08 1800.00 0.00 1800.00 0.00 1697.70 0.00

2008-09 2150.00 0.00 2350.00 0.00 2337.89 0.00

2009.10 2350.00 0.00 2350.00 0.00 1761.59 0.00


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Point No.(vii) Actual expenditure, revised estimates along with amountsurrendered during the last two years;

Reply:- Statement showing actual expenditure, revised estimates along with amount

surrendered during the last two years is given below:

(Rs. in crores)

Year Revised Estimates Actual Release Amount

Surrendered/

Savings*

Plan Non-

Plan

Plan Non-Plan Plan

2007-08 1800.00 0.00 1697.70 0.00 102.30

2008-09 2350.00 0.00 2337.89 0.00 12.11

* No amount was surrendered during the year 2007-08 and 2008-09. However, thesavings was re-appropriated to other schemes in the Department with the approval ofMinistry of Finance/ Parliament.

Point No. (viii): Physical target set out for each year during the last twoyears and achievement thereof, with reasons for shortfall, if any, inachievement of targets.Reply:- Physical targets and achievements during 2007-08 and 2008-09 are

indicated below:

Year Total No. of Swarozgaris Assisted

Target Achievement

2007-2008 1636250 1699295

2008-2009 1762670 1861875

Point No.(ix): The difference between physical and financial targets fixed

during the last two years;

Reply:-Physical and Financial targets fixed during the last two years are as given

below:

Year FinancialAllocation(Centre +

State)(Rs. in crore)

Target No. ofSwarozgaris to

be assisted(in lakh.)


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2007-08 2268.82 16.36

2008-09 2643.44 17.62

There is no difference between physical and financial targets fixed during last

two years.

Point No. (x): The steps taken/proposed to be taken and suggestions, ifany, for improvement in the implementation of the schemes.

Reply:-The following steps have been taken for proper implementation of the

programme:-

i) The Ministry has been emphasizing on capacity building and training by

upscaling the RUDSETI model, through the setting up of Rural Self

Employment Institutes (RSETIs) in each district in the country, and making

adequate use of existing institutions like NIRD/SIRDs, ETCs etc. During 2008-09, 110 proposals were received from Banks for setting up of RSETIs and an

amount of Rs.104 crore was released.

ii) The percentage of credit mobilisation against the target has risen from 74% in

2007-2008 and 2008-2009 at 74% and 90% respectively. The Ministry closely

monitors the performance of credit mobilization against the targets by holding

Central Level Coordination Committee (CLCC) meetings in which

representatives of Reserve Bank of India, National Agricultural Bank for Rural

Development (NABARD) and also the Banking Division of the Ministry of

Finance and Commercial Banks are instructed to take corrective measures

regarding any shortfall in the targets. Meetings of State Level BankersCommittee (SLBC), District Level Bankers Committee (DLBC) and Bank Level

Bankers Committee (BLBC) are held regularly to monitor the Bank performance

regarding zero lending and pending applications.

iii) Performance Review Committee meetings has also been held regularly toreview the physical and financial targets. During 2009-10, Performance ReviewCommittee has been held in12th June 2009. The programme is also regularlymonitored at the State level/Central levels, on the basis of monthly, half-yearlyand Annual Progress Reports.

iv) The swarozgaris from different State/UTs participate both in National and

International Trade Fairs to promote marketing & create space for the SGSYproducts. In order to assist the poor rural BPL swarozgaris to showcase andmarket their products, Ministry organizes SARAS Fairs across the country. Since2003-04, Ministry has organized 115 regional SARAS Fairs in major cities of thecountry including New Delhi

v) The Ministry has created marketing infrastructure at Rajiv GandhiHandicrafts Bhavan and Dilli Haat, Pitampura at Delhi for providing marketing


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avenues to the rural poor. Ministry has purchased a land at Jasola, New Delhito construct SARAS Haat. Ministry has released funds to 594 DRDAs for settingup of 3 Village Haats in each District.

vi) Involvement of the NGOs has also been sought in the formation of Self-HelpGroups(SHGs) i.e. in formation of SHGs, their capacity building, training,

assistance to acquire Bank finance, and project monitoring etc.

xiii Apart from the normal activities, under SGSY, an innovative intervention for

demand based skill development training projects, for increasing the

employability of rural BPL youth leading to their placement or self employment

has been taken up at the National level under the Special Projects component

of SGSY. 64 such projects have been sanctioned for covering about 4.54 lakh

rural youth. Out of about 1,19,795 of youth trained so far in these projects,

more than 93,000 have found employment through successful placement in

various sectors.

In addition to the above a EFC memorandum for restructuring the SGSY asNational Rural Livelihood Mission (NRLM) has been approved. A proposal isnow being prepared for approval of CCEA. The main features of NRLM are

i) Universalization and setting up of peoples institutions-to bring each &every BPL family into SHG fold & creation of federations at village, cluster,block and other levels.

ii) Provision of subsidy at enhanced ratesiii) Introduction of interest subsidyiv) Putting in place a sensitive support structure for improved programme

implementationv) Enhanced focus on training & capacity building through a multi pronged

strategyvi) Setting up of Rural Self Employment Training Institutes (RSETIs) in each

district of the country.vii) Upscaling of placement linked skill development projectsviii) Giving flexibly to States to prepare state specific poverty elimination Action

Plans.iv) Improved accountability & transparency through social audits & MIS etc.

Point No.(xi): System of monitoring and control over the performance of

each scheme.

Reply: SGSY is monitored from the Central level down to grass root level. At the

State level, a State Level Coordination Committee (SLCC) monitors the programme.

At the Central level, the Central Level Co-ordination Committee(CLCC) monitors and

reviews the implementation of the scheme and lays down policy guidelines and

monitors and reviews all aspects relating to credit linkages for SGSY. In addition, the

progress under SGSY is monitored periodically through reports and returns submitted

by DRDAs/States. In this regard detailed monitoring formats for reporting progress of

the programme have been circulated to all the DRDAs. Implementation of the


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Programme is monitored through the annual Project Directors Workshop and periodic

meetings with the State Secretaries. At the Block/DRDA level monitoring is done

through field visits and physical verification of assets. A dedicated MIS for complete

monitoring of the scheme is being designed and will be in place over the next few

months.

Point No. (xii): Systems/Programmes dropped restructured/during the

last two years along with reasons therefore.

Reply:-Therestructuring of the SGSY programme into NRLM is still under process.

Point No.(xiii): Copy of the last review/ evaluation of the scheme, made by

the Planning Commission or by any other agency.

Reply:- The SGSY was launched during the year 1999-2000. The last concurrent

evaluation of SGSY was conducted by Centre for Management Development, during

2002-03. A study was conducted by the National Institute of Rural

Development(NIRD) in 2005 in 13 States,24 districts, 48 blocks covering 1410

swarojgaris and during 2007, an Evaluation Study on coverage of SC/ST in the

implementation of SGSY has been conducted by the Banker Institute of Rural

Development(BIRD) in the states of Andhra Pradesh, Bihar Chhattisgarh, Kerala,

Orissa, Tamil Nadu and Uttar Pradesh.

Point No.(xiv): Brief notes on supplementary grants and excess grantspresented to the House during the previous year, The purpose and theamount spent so far. Whether the ministry proposes to present any suchsupplementary grant during the remaining period of current financial year.

Reply: During 2008-09 an additional amount of Rs. 200 crore has been received due

to the following reasons:-

a) As per Cabinet decision, the guidelines for SGSY were changed to provide

higher Central share. Subsidy in respect of the North Eastern States. The ratio

was changed from 75:25 to 90:10 in respect of NE States.

b) To set up Rural Self Employment Training Institutes (RSETIs) in the country.

c) Special Projects under SGSY

The entire sum of Rs. 200 crore received as additional allocation was expendedduring the year. Under SGSY during the current financial year 2009-10 no

supplementary grant has been/is proposed.

Point No. (xv): Note giving details of other expenditures like non-Planexpenditure etc. covered under the Schemes in point no.(i) above, showingbudget estimates, revised estimates and actual available for the last twoconsecutive years and budget estimates for current year together with the


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reason for variation, if any, in actual expenditure as compared to B/E andR/E during the last two years.

Reply:There is no allocation for non Plan expenditure under SGSY.

Point No.( (xvii): Any other information which the Department may like to

provide to the committee.

Reply: Nil

Documents

Standing Committee 10-11