DRDA Section is headed by an officer of the rank of KAS/KGS. It monitors the schemes such as Swarna Jayanthi Grama Swarojgar Yojana, Construction of Saamarthya Soudha, Kugrama-Suvarna Grama Yojana, Namma Bhoomi Namma Thota, etc.
About Swarna Jayanthi Grama Swarojgar Yojana
The Ministry of Rural Development, Government of India has launched a new programme known as "Swarnjayanti Gram Swarozgar Yojana" (SGSY) by restructurin the existing schemes namely :
· Integrated Rural Development Programme (IRDP)
· Training of Rural Youth for Self Employment (TRYSEM)
· Development of Women & Children in Rural Areas (DWCRA)
· Supply of Improved Toolkits to Rural Artisans (SITRA)
· Ganga Kalyan Yojana (GKY)
· Million Wells Scheme (MWS)
The SGSY Scheme is operative from 1st April 1999 in rural areas of the district. SGSY is holistic Scheme covering all aspects of self-employment such as organization of the Poor into Self Help Groups, training, credit, technology, infrastructure and marketing. The scheme will be funded by the financial institutions, Panchayat Raj Institutions, District Rural Development Agencies (DRDAs), Non Government Organisation (NGOs), Technical institutions in the district; will be involved in the process of planning, implementation and monitoring of the scheme. NGO’s help may be sought in the formation and nurturing of the Self Help Groups (SHGs) as well as in the monitoring of the progress of the Swarozgaris. Where feasible their services may be utilized in the provision of technology support, quality control of the products and as recovery monitors cum facilitators.
The scheme aims at establishing a large number of micro enterprises in the rural areas. The list of Below Poverty Line (BPL) households identified through BPL census duly approved by Gram Sabha will form the basis for identification of families for assistance under SGSY. The objective of SGSY is to bring assisted family above the poverty line within three years by providing them income generating assets through a mix of bank credit and Government subsidy. The rural poor such as those with land, landless labour, educated unemployed, rural artisans and disable are covered under the scheme.
The assisted families known as Swarozgaris can be either individuals or groups and would be selected from BPL families by a three member team consisting of Block Development Officer¸ Banker and Sarpanch.
SGSY will focus on vulnerable section of the rural poor. Accordingly the SC/ST will account for at least 50%, Women 40% and the disabled 3% of those assisted.
Once the person or group has been identified for assistance, their training needs also to be ascertained with reference to Minimum Skill Requirement (MSR). The assessment regarding technica l skills would be made by line departments and that of managerial skills by the banker, while scrutinising the loan applications. Swarozgaris possessing skills will be put through basic orientation programme which is mandatory. This programme includes elements Book Keeping, knowledge of market, identification and appraisal, acquaintance with product Costing, product pricing, familiarisation with project financing by banks as well as basic skills in the key activity identified. It will be for a short duration of not more than 2 days. Executive officer of Taluk panchayath, Bankers and line departments will act as resource persons for imparting the training. The training expenditur e will be met by DRDAs.
For those beneficiaries who need additional skill development/Upgradation of skills, appropriate training would be organised through Government Institutions, it is, Polytechnics, Universities, NGOs etc. Swarozgaris will be eligible for loans under SGSY when they possess Minimum Skill Requirement, and it will be disbursed only when they have satisfactorily completed the skill training.
For this training, Swarozgaris will be entitled for financial assistance if they are required to undergo training for more than a week. The rate of assistance would be fixed locally. The bank will provide loans to the Swarozgaris for this purpose. However, as the credit has to be extended before the project is taken up, notwithstanding the general security norms for lending under the scheme, banks may extend loans for skill development training with or without collateral/third party guarantee at their discretion.
Self - Help Groups (SHGs)
The Self-Help Groups shall be organised by Swarozgaris drawn from the BPL list Approved by Gram Sabha. The Scheme provides for formation of Self-Help Groups (SHGs), nurturing and their linkage with banks. Group activities will be given preference and progressively majority of the funding will be for Self Help Groups. Half the groups formed at block level should be exclusively women groups.
SHG under SGSY may consist of 10 to 20 persons belonging to BPL families. In Case of minor irrigation and in the case of disabled persons this number may be a minimum of 5 persons. The group shall not comprise more than one member of the same family. A person should not be a member of more than one group. SHG may be an informal group or registered under Societies Act, State Co-operative Act or as a partnership firm. The assistance (loan cum subsidy) may be extended to individuals in a group or to all members in the group for taking up income generation activities.
In States and Union Territories where the formation of SHGs has not taken root, banks may continue to extend credit facilities to eligible individual Swarozgaris.
For individual loans up to Rs. 50,000 /- and group loans up to Rs. 3 lakhs, the Assets created out of the bank loan would be hypothecated to the bank as primary security. In case where movable assets are not created as in land based activities such as dug well, minor irrigation etc., mortgage of land may be obtained. Where mortgage of land is not possible third party guarantee may be obtained at the discretion of the bank.
For all individual loans exceeding Rs. 50,000 /- and group loans exceeding Rs. 3 Lakhs in addition to primary security such as hypothecated/mortgage of land or third party guarantee as the case may be, suitable margin money / other collateral security in the form of insurance policy, marketable security / deeds of other property etc. May be obtained at the discretion of the bank.
Subsidy under SGSY will be uniform at 30% of the prospect cost, subject to a Maximum of Rs. 7,500/-. In respect of SC/ST it will be 50% of the project cost to a maximum Of Rs. 10,000 /-. For groups of Swarozgaris (SHGs) the subsidy would be at 50% of the cost of the project, subject to a ceiling of Rs. 1.25 lakhs. There will be no monetary limit on subsidy for irrigation projects. Subsidy under SGSY will be back ended. The availability of the benefit of subsidy to swarozgaris would be contingent on the proper utilisation of loan as also its prompt repayment and maintaining the asset in good condition.
Every SHG that is in existence at least for a period of six months and which has demonstrated the potential of a viable group will receive a r evolving fund of Rs. 25,000 /- from banks as cash credit facility. Of this a sum of Rs. 10,000 /- will be given to the bank by the DRDA. Banks may charge interest only on the sum exceeding Rs. 10,000 /-. The revolving is provided to the groups to augment the group corpus so as to enable larger number of members to avail loans and also to facilitate increase in the per capita loan available to the members. The revolving fund imparts credit discipline and financial management skills to the members so that they become credit worthy. SHGs that have demonstrated their successful existence, will receive the assistance for economic activities under the scheme.
The size of loan under the scheme would depend on the nature of project. There is No investment ceiling other than the unit cost i.e. investment requirement worked out for the project. The loans under the scheme would be composite loan comprising of Term Loan and working capital . The loan component and the admissible subsidy together would be equal to total project cost. Banks may follow model project report set out in key activities of the districts for finalising the project cost of the Swarozgaris. Under any circumstance under financing is to be avoided. Swarozgaris will be given the full amount of loan and subsidy and they will have the freedom to procure the assets themselves. Disbursements up to Rs. 10,000 /- under ISB sector may be made in cash where a number items are to be bought.
Emphasis is laid on multiple dose of assistance. This would mean assisting a Swarozgaris over a period of time with second and subsequent dose(s) of credit enabling him/her to cross the poverty line as also access higher amounts of credit. Subsidy entitlement for all doses taken together should not exceed the limit prescribed for that category. The second and subsequent doses may be granted by the same bank or any other bank during the currency of first/earlier loan provided the bank is satisfied about the financial discipline of the first/earlier dose.
Loan under the Scheme will carry interest as per the directives on interest rates issued by Reserve Bank of India from time to time.
All loan granted under the scheme are to be treated as advances under prioritysector. Loan applications should be disposed of within 15 days and at any rate not later than one month.Branch Managers may be vested with adequate discretionary powers to sanction proposals under the scheme without reference to any higher authority.
Post Credit follow up
Loan Pass Books in regional languages may be issued to the Swarozgaris which may contain all the details of the loans disbursed to them.
Bank branches may observe one day in a week as non public business working day to enable the staff to go to the field and attend to the problems of Swarozgaris.
Banks should ensure through proper monitoring and verification that quality assets Have been procured by the Swarozgaris. Necessary documents relating to actuation of assets Should be obtained by the bank and also followed through visits by field staff. In case of nonprocurement of assets by the Swarozgaris in spite of reasonable time and opportunity, the bank shall be free to cancel the loan and recover the money. Legal proceedings (Civil/Criminal) wherever necessary may be initiated against the Swarozgaris and against all members in case of SHG f or recovery of loan
Repayment of loan
All SGSY loans are to be treated as medium term loans with minimum repayment period of five years. Installments for repayment of loan will be fixed as per the unit cost approved by the NABARD/District SGSY Committee. There will be a moratorium on repayment of loans during the gestation period. Repayment installments should not be more than 50% of the incremental net income expected from the project. Number of installments may be fixed taking into consideration the principal amount, the interest liability and the repayment period.
Swarozgaris will not be entitled for any benefit of subsidy if the loan is fully repaid Before the prescribed lock-in period. The repayment period for various activities under SGSY, broadly be categorised into 5, 7 and 9 years depending on the project. The Corresponding lock-in period would be 3, 4 and 5 years respectively. If the loan is fully repaid before the currency period, the Swarozgaris will be entitled only to pro-rata subsidy.
Role of banks and state agencies
Banks will closely involved with Government agencies in implementing, planning And preparation of projects, identification of key activities, clusters, self-help groups, identification of individual Swarozgaris infrastructure planning as well as capacity building and choice of activity of the SHGs, grading of SHGs, selection of Swarozgaris, pre-credit activities and post credit monitoring including loan recovery.
For further information please contact.
Details of Self Help Groups (SHG) of Hassan District (Taluka-wise).