Government sponsored Scheme: DAY-NRLM/ (SGSY)

Swarnjayanti Gram Swarozgar Yojana (SGSY) was introduced by the Ministry of Rural Development to assist poor families living below the poverty line in rural areas in taking up self-employment. The scheme was renamed as National Rural Livelihood Mission in 2011. In 2016 the program was renamed “Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)”.

The objective of SGSY/ DAY- NRLM  is to bring every assisted family above the poverty line within three years by providing them with income-generating assets through a mix of bank credit and Government subsidy.

Salient features of the scheme:

The families assisted may be individual or on a group approach. Generally, the groups are formed with the members of BPL families only. In some cases 20% and in exceptional cases 30% of the group members may belong to APL families ((Orange) ration card group),  but the APL members of the groups are far from being office bearers and will not be entitled to get a subsidy.

The group formed should consist of 50% of the group in each block and should be exclusively for women who will account for at least 40% of the swarozgaries. SC/ST accounts for at least 15%m of the swarozgaries and disabled for 3%.

The selection of key activities will be approved by the panchayat samiti at the block level and DRD cell zilla parishad at the district level.

The scheme makes sure of the upgradation of technology in the identified activity cluster. The technology intervention seeks to add value to the local resources, including the processing of the locally available material for local and non-local markets.

The scheme assists in the promotion of marketing of the goods produced by the swarozgaries.

Subsidy:

Subsidy under SGSY is uniform @30% of the project cost, subject to a maximum of Rs. 7,500/- in the case of individual beneficiaries. In the case of SC/STs and disabled, the rate is 50% subject to a maximum of Rs. 10,000/-. For a group of swarozgaries , the subsidy is 50% of the project cost subject to a ceiling of Rs. 10000/- per capita

Expenditure on different components such as training and capacity building, revolving funds, subsidies, and infrastructure are to be prioritized by the DRD cell based on local requirements. However, the expenditure on infrastructure should not exceed 20% of the total annual allocation.

Interest subvention scheme under DAY-NRLM:

The scheme is limited to Women Self Help Groups under DAY-NRLM in rural areas only. For loans up to 3 lakhs under the scheme, banks will extend credit at a concessional interest rate of 7% per annum.

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