The scheme introduced in 1999 is valid till 2010. SGSY is a holistic programme covering all aspects of self employment to BPL (below poverty line) families such as organisation of poor into Self Help Groups (SHGs), imparting training for skill upgradation, infrastructure development and marketing of products .The Central and State Governments fund SGSY scheme in the ratio of 4:1%.The objective of SGSY is to bring the assisted families (Swarozgaris) above the poverty line (APL) by providing them income-generating assets through Bank credit and Government subsidy.

Under the SGSY, assistance is given to the poor families living below the poverty line in rural areas for taking up self-employment. The persons taking up Self-Employment are called swarozgaris. They may take up the activity either individually or in Groups, called the Self-Help Groups. For successful Self-Employment, it is necessary to take up the right activity. For this purpose, 4 to 5 activities are selected in each Block with the help of officials, non-officials and the Bankers. These are called ‘Key Activities’, and should be such that they give the Swarozgaris an income of Rs. 2000 per month, net of Bank loan repayment. The objective of the SGSY to bring the assisted BPL families above poverty line by providing them income granting assets through mix bank credit and government subsidy. Subsidy for individual Swarojgaries is Rs. 10000. For group, subsidy is 50% of project cost, subject to per capita subsidy of Rs. 10000 or 1.25 lakh whichever is less.

At least one member from every BPL household could become a member of a self-help group. To form Self Help Group 10-15 members of the similar interest should come together and start saving. The group should meet regularly and start an economic activity. Under the scheme the group can avail of credit cum subsidy training and marketing support. Subsidy under the SGSY will be uniform at 30% of the project cost, subject to a maximum of Rs. 7500/-. In respect of SC/STs and disabled persons however, these will be 50% and Rs. 10,000/- respectively. For group of Swarozgaris (SHGs ), the subsidy would be 50% of the project cost subject to per capital subsidy of Rs. 10,000/- or monetary limit on subsidy for irrigation projects.

Please contact the relevant department.
 

Contact

CAPART
India Habitat Centre, Zone-V-A,
2nd Floor Lodhi Road, New Delhi-110003.
Ph: 011 - 24642391, 24642393, 24642395
Fax: 011 - 24648607, 246 5822
Email: capart@caparthq.delhi.nic.in