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 Scheme

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.

Skill Upgradation

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.

Security norms

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.

Revolving Fund

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.

Lending Norms

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.

  • Principal Secretary,  Rural  Development &  Panchayath  Raj Department, M.S. Building, Bangalore.
  • Director, (SEP), Rural  Development &  Panchayath  Raj Department, M.S. Building, Bangalore.
  • Chief Executive Officer, Zilla Panchayath, Hassan.
  • Project Director, DRDA Cell, Zilla Panchayath, Hassan.
  • Assistant Project Officer, DRDA Cell, Zilla Panchayath, Hassan.
  • Executive Officer, Taluk Panchayath, Alur/Arakalgud/Arasikere,/Belur,/ Channarayapatna/Hassan/Holenarasipur/Sakleshpura.
Please click here to view kannada version of the scheme



Details of Self Help Groups (SHG) of Hassan District (Taluka-wise).

Click on the Taluka Name to view the SHGs of that taluka.

1. Alur 4. Belur 7. Holenarsipur
2. Arakalgud 5. Channarayapatna 8. Sakaleshpur
3. Arsikere 6. Hassan