DISTRICT RURAL DEVELOPMENT AUTHORITY

OBJECTIVES

Jawahar Gram Samridhi Yojna will have the following objectives:

PRIMARY OBJECTIVE

Creation of demand driven community village infrastructure including

1. Durable assets at the village level.
2. Assets to enable the rural poor to increase the opportunities for sustained employment.

Secondary Objective

Generation of supplementary employment for the unemployed poor in the rural areas.

Special Safeguards For the Weaker Sections of the Community.

   22.5% of annual allocation shall be earmarked for SCs/STs individual beneficiary Scheme.

   The wage employment under the programme shall be given below Poverty Line families.

Status

The programme will be implemented as a centrally sponsored scheme on cost sharing basis between the Centre and the States in the ratio of 75:25. In the case of Union Territories, entire funds under the scheme will be provided by the Centre.

Programme Strategy

The programme will be implemented through the village Panchayats.

CRITERIA AND PROCEDURE FOR ALLOCATION/RELEASE OF RESOURCES

Criteria for Allocation of Resources

The Central assistance will be allocated to the States/UTs on the basis of proportion of rural poor in a state to the total rural poor in the country or as per criteria to be decided by the Government/National Development Council from time to time. The poverty estimates     prepared by the Planning Commission will be used for this purpose.

At the district level, the allocation of funds will be made on the index of backwardness  formulated on the basis of equal weightage to the proportion of rural SC/ST population in a district to total SC/ST population in the state and inverse of per capita production of the  agriculture workers in the district.

From the district, the entire funds allocated to each district will be distributed to the village  panchayats. DRDAs/Zila Parishads will release the funds directly from Centre or State.       They would not wait for matching share either from Centre or State.

For the purpose of allocation of funds to the village panchayats, the population of each village  panchayat having less than 1000 population will be taken as 1000.There will, however, be no  upper ceiling on population for the purpose of allocation of funds of village panchayats. Weightage will be given to population of SCs/STs/60% of the resources earmarked for village panchayats will be distributed on the basis of adjusted Sc/ST population and 40% on the basis of adjusted total population (including Sc/ST population).The manner of calculation is given at Annexure-1.

Release of Central Assistance to DRDAs/ZPs

Central assistance will be released every year directly to the DRDAs/ZPs in two installments,subject to the fulfillment of the following conditions:

Release of Funds to Village Panchayats

The funds to village Panchayats will be distributed by the DRDAs/ZPs within fifteen days of the receipt of the funds by the DRDAs/ZPs from the Central or the State Governments.

In so far as forest villages are concerned DRDAs/ZPs will place the allocated funds at the disposal of the respective district level forest official for taking up works under the programme in these villages. The forest authority at the district level will utilize these funds, take up works in the forest village through a committee of five members, consisting of at least one SC/ST and a women,  as per belt need of the village community.

Works, Planning And Execution

Works to be taken Up Under JGSY

All works that result in the creation of durable productive community assets can be taken up under the programme as per the felt need of the area/people by the village panchayat. The works that can be taken up under the programme are given in following paras.

Priority shall be given in the following order

      Infrastructure for Scs/STs habitations.

      Infrastructure support for Swarnjayanti Gram Swarozgar    Yojana(SGSY).

      Infrastructure required for supporting agriculture activities in the village panchayat.

      community infrastructure for education, health and roads.

      Other social, economic and physical infrastructure.

In taken up these works, the village panchayat may take into consideration the facilities being created indoor Basic Minimum Services  and other Centrally Sponsored Schemes or State Governments schemes.For instance,while formation of roads is taken up under JGSY,black topping of roads may be taken up under other programmes.

While creating rural infrastructure,the wage material-ratio of 60:40 may be suitably relaxed so as to enable the build up of demand driven rural infrastructure. Care may,however,be taken to ensure purely material oriented works are not taken up and simultaneously efforts should be made to take up labour intensive works with sustainable low-cost technology.To provide supplementary wage employment to the rural poor.the wage material-ratio shall be as close to 60:40 as possible.

Annual Action Plan

In keeping with the above guidelines,each village Panchayats shall prepare before the beginning of each financial year. An Annual Action Plan equivalent of value of 125 per cent of its share of funds allocated in the preceding year before the beginning of each financial year.No work can be taken under JGSY unless it forms part of the Annual Action Plan.

While preparing the Annual Action Plan prepared by the village Panchayats should be thoroughly discussed in the meeting of the Gram sabha.The Gram sabha shall approve the Annual Action Plan including the individual works to be taken up for SCs/STs.This exercise shall be completed before May, 31 of each year.

The Panchayats will thereupon execute the works.The Panchayats will have the power to execute works/schemes  upto Rs. 50,000/- with the approval of Gram Sabha.No other administrative or technical approval will be necessary.However, for works/schemes costing more than 50,000/- after taking approval of the Gram Sabha,the Village Panchayat shall seek the technical/administrative approval of appropriate authorities.

In case of shortage of technical staff or otherwise,it shall be permissible for the village panchayat to have the projects technically apprised by even private technically qualified people. State Government should lay down norms for employment of such private technical qualified staff.

Implementing Agencies

The programme will be implemented through the Village Panchayats,who will be responsible for planning and execution of the Yojana,The technical supervision will be the responsibility of the Panchayat Samities and DRDAs/ZPs.

Forest Department in the District will be implementing the programme in forest villages in consultation with the people of the concerned forest village keeping in view the JGSY guidelines and forest(Conservation) Act,1980 as amended from time to time.

At the village level,the entire work relating to co-ordination,review,supervision and monitoring of the programme will be the responsibility of the village Panchayat.

At the district level,the DRDAs/ZPs and at the intermediate level the Panchayat Samities will have overall responsibility for guidance,co-ordination,supervision,periodical reporting and monitoring the implementation of the programme. The DRDAs/ZPs will also be accountable to the State Government to ensure that the returns/report in respect of the works taken up for execution in the district are furnished in time.

EMPLOYMENT ASSURANCE SCHEME

BROAD OUTLINE AND OBJECTIVES

OBJECTIVE

   The Primary Objective of the EAS is creation of additional wage employment opportunities during the period of acute shortage of wage employment through manual work for the rural poor living below the poverty line.

   The Secondary objective is the creation  of durable community,social and economic assets for sustained employment and development.

   PROGRAMME STRATEGY

   The programme will be implemented through the Zila Parishads.

   The list of the works will be finalised by the Zila Parishad in consultation with the MPs as per procedure described at para 4.7

   Where there is no Zila Parishad,a Committee comprising of MLAs,MPs and other public representative would be constituted for the selection of works.

   Employment Assurance Scheme will operate at district/Panchayat Samiti levels throughout the country .However,works under EAS should be taken up only in those pockets of the Panchayat Samities/districts where there is need for creating additional wage employment.

   70% of the funds allocated for each district would be allocated to the Panchayat Samities(Intermediate Panchayat).30% of the funds will be reserved at the district level and shall be utilised in the areas suffering from endemic labour exodus/areas of the distress.

   No works should be taken up under the programme if the demand for the wage employment can be fulfiled under other plan or non-plan works.

   Only labour intensive works of productive nature which create durable assets should be included in the Annual Action Plan.

   The works under the scheme should normally be taken up to provide additional wage employment whenever there is acute shortage and the resources under normal plan/non-plan schemes are not available to generate adequate opportunities of wage employment to meet the demand.

CRITERIA FOR ALLOCATION OF RESOURCES

   EAS is a Centrally Sponsored Scheme.Funds for this programme will be shared in the ratio of 75.25 between the Centre and the States.

   70% of the funds so allocated for each district would be allocated to the Panchayat Samitis(Intermediate Panchayats) on the basis of the proportion of the rural population in the respective Panchayat Samitis in the district.

   30% of the funds will be reserved at the district level and shall be utilised in the areas suffering from ensemic labour exodus/areas of the distress.

   Diversion of resources from one district to another will not be permitted Similarly,diversion of resource meant for a Panchayat Samitis to another Panchayat Samitis will also not be permissible.

PROCEDURE FOR RELEASE OF FUNDS

Central assistance would be released every year directly to the DRDAs Who in turn will release 30% of the district allocation to the Zila Parishad and 70% to the Panchayat Samitis as per the formula prescribed.

Funds will be released in two installments.

First Installment:-The district which obtained second/subsequent instalment of funds in the preceding financial year shall automatically receive the first instalment.But those districts which did not receive the second instalment in the preceding financial year shall have to submit the proposal for the first instalment with necessary documents as mentioned under Para marked with *

In case of cold snow bound districts of Himachal Pardesh and J&K,districts of North-Eastern States,to be decided mutually between the Central Government and the State Government concerned ,which have a limited  working season,the entire Central assistance,shall be released in one installment.

*Second instalment:- The second instalment of Central assistance will be released on request from the DRDA in the prescribed Proforma as per Annexure-1 and on fulfillment of the following conditions:

   60% of total available funds,that is opening balance of the year (In case of proposal for first installment,opening balance of the previous year)plus the amount received including the State share should have been utilised at the time of applying for the second installment.

   The opening balance of the district should not exceed 15% of the total funds available during the previous year.In case,the opening balance exceeds this limit,the Central share of the excess will be deducted at the time of release of second installment.

   The State Government has made sufficient provisions in their Budget to match the Central release.

   The State Government should have released all its contribution(including those of previous year) due up to the date of the application.In the event of shortfall in State share,corresponding amount of Central share will be deducted from the amount of Central share of second instalment of current year.

   Submission of Audit reports for the previous year submission of Action taken report the comments made in the audit report of previous year(s)

   Submission of utilisation Certificate from DRDAs based on reports received from Zila Parishads and Panchayat Samitis which in turn should be based on the reports of the executing agencies for the previous year should be available in the prescribed Performa at Annexure-11

   Submission of non-diversion and non-embezzelment certificate.

PLANNING & ORGANISATION

IMPLEMENTING AUTHORITY

Zila Parishad  shall be the 'Implementing Authority' for the funds released to both Zila Parishad and Panchayat Samitis.The ZPs would be responsible for approval of Annual Action Plan,entrusting works to the implementing agencies,supervision and co-ordination of works and furnishing of necessary reports to the State and Central Government through the concerned DRDAs.

IMPLEMENTING AGENCIES

The implementing agencies of EAS within a district can be any line department,corporation of the State Government and panchayati Raj Institutions at all three levels.

Entrustment:

   The Panchayat Samitis ,while forwarding the list of works,would also indicate the implementing agencies to the extent of their share.The implementing agencies could be only from those mentioned at para 4.2 ZPs would be responsible for entrusting the works to the implementing agencies.

   It shall be the duty of the head of each implementing agency in the district to scrupulously ensure the implementation of the works allotted by the Zila Parishads under EAS. All implementing agencies shall bear the expenditure incurred ,measurement of physical work done ,payment of wages to labour,submission of periodical statements of attendance,details of work and accounts for all works entrusted to them under EAS

   The implementing agencies may utilize one person from among the beneficiaries group as animator/leader/facilitator in maintenance of animator/leader/facilitator  can be paid wages applicable to the skilled workers.If the animator/leader/facilitator is not from among  the beneficiaries(one of the labour working on the scheme) then he would be treated as  a contractor and such work would not be treated as EAs work. Such work would be treated as zila Parishad's own scheme.

Ban On Contractor :-

   The programme will be implemented departmentally only,Contractors are not permitted to be engaged for execution of any of the works under the programme .No middleman or any other intermediate agency should be employed for executing works under the programme.The full benefit of Wages to be paid should reach the workers and the cost of the works should not involve ant commission charges payable to such contractors,middlemen,or intermediate agency.

ANNUAL ACTION PLAN

An Annual Action Plan(AAP) shall be prepared every year.The responsibility for preparation of the Annual Action Plan shall be that of the Implementing Authority namely the Zila Parishad.

   The Zila Parishad should obtain from Panchayat Samitis list of works for the 70% portion of the funds.Similarly they may formulate proposal at the district level for the 30% portion. Based on these proposal the Zila Parishads would prepare an Annual Action Plan,separately for 70% of funds Panchayat Samiti-wise and of the district.While formulating the Annual Action Plan the Zila Parishjad will consult the MPs of the district .The manner in which the ZPs would approve the Annual Action Plan shall be as per the rules in force in each state.

   The annual action plan prepared for each Panchayat Samiti(for 70% portion of the funds)and for the district (for 30% portion of the funds) should contain(a) Ongoing EAs works of the previous years and (b) New works which should be taken up under EAS.

   The annual action plan prepared by the Zila Parishad for the ZP/Panchayat Samiti components should not exceed 125% of the funds allocated to the district in the preceding year (125% should be reckoned separately for 70% and 30% portion of the funds)

   As soon as the Annual Action Plan is finalized the Zila Parishads shall inform the concerned Gram Panchayats the works selected in that Gram Panchayat area.

   The works included in the annual action plan should be such that they should be completed within a period of one year but in exceptional cases within two years. The format to reflect the annual action plan is given in Annexure-111 and Annxure-1V

   No work can be executed under EAs unless it forms part of the Annual Action Plan.

   The Zila Parishads/Panchayat Samitis are permitted to spend up to a maximum of 15% on maintenance of the assets created under the programme within the district/Panchayat Samiti.

COORDINATE AND SUPERVISION OF WORKS

Zila Parishad would be responsible for the overall coordination and supervision of the works subject to overall control of the ZP.The Panchayat Samitis shall exercise of the works taken up with Panchayat Samiti Component.

WORKS UNDER EAS AND THEIR EXECUTION

In formulating the Annual Action Plan and while taking up the works,Zila Parishad shall give priority to the works of soil and moisture conservation,minor irrigation,rejuvenation of drinking water sources and augmentation of ground water,traditional water harvesting structures and such other schemes of individual nature which are integral to Watershed development. However ,since the nature of the works should be such that they could be completed in one or two years. Watershed development programme requiring commitment for four years may not be taken up. Other priority works may be formation of rural roads linking villages with other village,Panchayat Samiti H.Q., agriculture fields,drainage works and forestry in the community lands.(The roads taken up under Employment Assurance Scheme shall conform to certain minimum standard prescribed).Other than these,they should essentially take up works that are labour oriented.

The works taken up under the programme should result in durable assets. However ,further strengthening or upgradation of such works can be done by utilizing funds from other schemes.For example ,a road work taken up under EAS should be of such standard that the community should be able to use it as such.However, the road could be further strengthening /upgraded/black topped with other funds. But it will not be open to the implementing agencies to use EAS and the remaining works with departmental funds) or to use EAS funds for making payment for the wages for their departmental works.

THE FOLLOWING WORKS SHALL NOT BE TAKEN UP UNDER THE PROGRAMME

   Building for religious purpose etc.

   Monuments,Memorials,Statues,Panchayat Buildings,Compound walls.

   Big Bridge

   Government Office Buildings,Panchayat Buildings,Compound walls and Desilting of irrigation Tanks.

   Building for Higher Secondary Schools and Colleges.

CREDIT-CUM-SUBSIDY SCHEME FOR RURAL HOUSING

There are a large number of households(below the poverty line and above it) in the rural areas,who could not be covered under India Awass Yojana,as either they do not fall within the range of eligibility  or due to the limits imposed by the available budget.On the other hand ,due to limited re-payment capacity ,these rural housing finance institutions.The needs of this large majority can be met through a scheme which is part-credit and part-subsidy based.The introduction of a part-credit, part-subsidy based scheme will be an important step in the direction of redefining the role of the Government from that of a 'provider' to a 'facilitator' as envisaged in the national housing and Habitual Policy 1998.

Target Group

The target group under the credit-cum-subsidy Scheme will be rural households having an annual income of upto Rs. 32000/-only .However ,Below Poverty Line Rural Households shall be given preference .At least a minimum of 60% of the funds allocated under this scheme as subsidy to each State shall be utilised in financing the construction of houses for the Scheduled Castes Scheduled Tribes and freed bonded labours.

Target Area

The state may independently decide whether it decide  desires to implement this Scheme throughout the state or within a few districts/blocks.The target areas that can be taken up under the Credit-cum-Subsidy Scheme should be solely the rural areas and at least 20 Kms away from the metropolitan and large towns and 5Kms away from the small and medium towns.

Identification of Beneficiaries

Identification of beneficiaries under the credit-cum-subsidy Scheme and the modus operandi to be adopted is the sole prerogative of the State.

Implementing Agency

The implementing Agency for the credit cum-subsidy Scheme for Rural Housing may be the State Housing Corporation ,specified scheduled Commercial Bank,Housing Finance Institution or the DRDAs/ZPs .The identification of the most appropriate implementing agency under the credit-cum-Subsidy Scheme shall be left to the State Government.

Criteria of Allocation

The subsidy element of the Credit-cum-Subsidy Scheme will be shared on 75:25 basis between the Centre and the States. The criteria of allocation of funds under the credit -cum-subsidy Scheme to the States shall be both poverty ratio as determined by the Planning Commission and the housing shortage.The proportion of the two variable shall be 50:50.The allocation of funds within the State can be decided by the respective State Government.It shall be the sole prerogative of the State Government to specify inter-district targets,once the State target has been communicated by the Ministry of Rural Development.

Upper Limit of Construction Assistance Subsidy/ Loan

Ceiling of subsidy that can be given under this scheme is Rs. 10000/- per household. The upper limit of construction loan admissible under this scheme will be Rs. 40000/ -per household. The State Government is free to identify the agency from whom the loan will be sourced and distributed. This may be from either a Scheduled Commercial bank,Housing Finance Institution of State Government directly.

Monitoring

Overall monitoring of this scheme will be the responsibility of the Ministry of Rural Development.The following reports and returns should be submitted by the State Government under the scheme to the Ministry.

   A monthly progress report to be furnished as in Proforma-1 on or before the 10th of the succeeding month.

   A detailed annual progress report to be furnished as in Proforma-11 on or before 25th April of the following financial Year.

Release of central Assistance to State Governments

Central Assistance to the tune of 75% under the credit-cum-subsidy scheme shall be remitted to the State Government directly in case the state identifies the State Housing Board,state Rural Housing Corporation or a specified scheduled commercial bank as its implementing agency. In  case the State wishes to implement this scheme through it DRDAs/ZPs,the funds be disbursed directly to the DRDAs identified by the State under intimation to the state. Matching grant the state Government of 25% should be contributed within 15 days of the receipt of the central allocation.

The Central allocation of the State shall be released in two installments.However, the release of second installments shall be contingent on the submission of the following as specified in proforma-111:

   Utilization Certificate by the implementing agency

   Audit report for the previous year by the implementing agency

   Non-embezzlement certificate

   Progress and monitoring reports.

   Release of State contribution

   Opening balance of not more than 20% of the allocation of the previous year. In case the opening balance exceeds this limit, the central share in excess Will be deducted at the time of the next year's installment.

   Any other condition imposed from time to time will also have to be complied with.

   The interest amount accrued on credit-cum-subsidy funds shall be treated as part of the credit-cum-subsidy resources.

   The Credit-cum-subsidy funds(Central and State)shall be kept in a nationalized scheduled commercial bank or Post Office in an exclusive and separate savings bank account by the implementing agency.

   General

    The Indira Awass Yojana guidelines pertaining to sanitary lartrines,improved chulhas,use of cost effective and environment friendly designs ,materials and technologies shall apply mutatis mutandis to the Credit-cum-subsidy scheme for Rural Housing

 GUIDELINES OF SWARNJAYANTI GRAM SWAROZGAR YOJANA

swaranjayanti Gram Swarojgar Yojana(SGSY) will be a holistic programme covering all aspects of self-employment,viz,oganisation of the rural poor into self-help groups and their capacity building,planning of activity clusters infrastructure build up technology,credit and marking.

Each District will draw up a comprehensive plan of the resource and the strategies for poverty eradication .This would involve identifying 4 to 5 activity clusters in each block based on there sources but also on the occupational skills of the people. The existing infrastructure for the clusters of activities will be reviewed and gaps will be identified.

Each district will prepare project reports in respect of different activities to be taken up regarding the time and cost frams as well as the responsibility of different organisation. The banks and other financial institutions will be closely associated and involved in preparing these project reports so as to avoid delays in sanctioning of loans and to ensure adequacy of financing.

SGSY will focus on the Group approach.This would involve organisation  of the poor and their capacity building.The formation of Self-help groups under DWCRA  yields good results.Elsewhere too,the group approach was found to be very effective .The objective is to extend this approach to SGSY. Under SGSY,self-Help Groups(SHGs) will be formed and steps will be taken to nurture these groups to enable them to function effectively as well as to choose their economic activity. Efforts would be made to involve women members in each SHG.Besides,exclusive women groups will be continue to be formed as is currently being done under DWCRA.At the level of the Block,at least half of the groups will be exclusively women groups.

Suitable entry points such as thrift & credit will be identified at the local level for the Self-Help groups. SHGs will have to satisfy certain minimum norms before they can be considered for accessing credit. Revolving fund that is currently being given as one-time grant will be supplemented by expenditure to be incurred on the groups for capacity building.

Group activity will be given preference and progressively,majority of the funding will be for SHGs.Likewise,the major share of SGSY assistance will be in activity clusters. However ,a certain percentage (about 25%)may need to be made available for assistance to other activities,so as to give a certain flexibility.

The Gram Sabha will authenticate the list of families below the poverty line identified in the BPL census.Since group formation will involve voluntary action on the part of the members there cannot be any selection. In case of individual beneficiaries, their selection will be made in the Gram Sabha. A suitable design will be evolved in consultation with the banks to ensure a better selection of individual beneficiaries and their capacity building so as to prepare them to receive and manage credit.

SGSY will seek to lay emphasis on skill development through well-designed coures. The duration of training and the training curriculum will be designed in accordance with the needs of the identified activities as well as the needs of the groups/individuals.Training will take place only after the group has made a decision to take up a particular economic activity in consolation with the financing bank. Training will precede extension of credit so as to ensure efficiency of loan utilisation. Training or skill development would be imparted through recoginised training institutes, masters craftsman etc. Suitable provision for incurring expenditure on training will be made in the programme,DRDAs will be allowed to set apart upto 10% of the allocation on training.This would be maintained as SGSY-Training Fund and will also be used for setting up appropriate training facilities for the identified activities ,where none exist.

SGSY will seek to develop close linkage with the credit mechanism in such a manner as would promote multiple rather than a one-time credit injection' The credit requirements of the beneficiaries will be assessed and only that amount of credit as can be comfortably handled by the beneficiaries will be given.However credit will not be a one-time activity.The beneficiaries will be allowed and,in fact,Sencouraged to increase their credit intake over the years.This would involve

   A closer association of the banks and other financial institutions with the selection of the beneficiaries ,closer interaction with the SHGs,as well as their involvement with the selection of projects:

   A mechanism for post-credit monitoring,particularly in the case of individual beneficiaries

   A responsibility on the part of the SHGs to reply the loans on time:

The subsidy admissible to the general individual beneficiaries under the integrated programme will be uniform irrespective of category or area at 30% (50% for SC/ST) of the project cost subject to a ceiling of Rs. 1.25 lakh will continue.Consequent to the merger of GKY community minor irrigation project as applicable earlier.There shall be no limit on the investment.

SGSY will seek to ensure that the infrastructure needs for the identified activities are met in full ,so as to enable the rural poor to derive the maximum advantage from their investments.The States will strive to provide for necessary investments will be made under SGSY subject to a ceiling of 20%(25% in the case of North Eastern States) of the total programmes allocation for each district.This amount will be maintained by the DRDAs as SGSY-Infrastructure Fund' and which can also be utilised to generate additional funding from other sources.Planning for infrastructure will be made in close concert with the banks,infrastructure needs and their fulfillment will be constantly and closely monitored.

SGSY will ensure upgradation of the technology in the identified activity clusters. The technology intervention will seek to add value to the local resources,including processing of the locally available material from natural and other resources for local and non-local market. For this purpose,existing institutional structures will be strengthened. Transmission of technology and necessary training to the rural poor will be carefully planned and ensured.Suitable institution will be identified in each district to cater to the requirements of the technology upgradation and dissemination. SGSY will also suitable link up with the banks.Infrastructure needs and their fulfillment will be constantly and closely monitored.

SGSY will ensure upgradation of the technology in the identified activity clusters.The technology intervention will seek to add value to the local resources including processing of the locally available material from natural and other resources for local and non-local market.For this purpose,existing institutional structures will be strengthen.Transmission of technology and necessary training to the rural poor will be carefully planned and ensured. Suitable institutions will be identified in each district to cater to the requirements of the technology upgradation and dissemination. SGSYU will also suitable link up with IRE Pof MNES.IREDA.REC etc. to provide for planning for rural resources and making available cheaper alternative sources of energy to the rural poor.

SGSY will provide for promotion of marketing of the goods produced by the SGSY beneficiaries. This would involve providing of market intelligence,development of markets,consultancy services,as well as institutional arrangements for marketing of the goods produced by the rural poor.This would also serve as a venue for buyer-seller meet. Suitable initiatives will be taken up for permanent exhibition-cum-sale points. Necessary linkage will be established with the different commodity boards.

Credit is a component in SGSY,subsidy being only a minor and enabling component. The success of any such self-employment programme depends considerable on the confidence with which banks and other financial institutions lend to the rural poor. It is therefore necessary that these agencies are fully involved and closely associated with the entire gamut of activities. It is proposed to involve the banks and other financial institution closely in the planning and preparation of projects,identifications of activity clusters,infrastructure planning as well as capacity building and choice of activity of the SHGs.Mechanisms will be put in place for closer association of banks in the selection of beneficiaries,per-credit activity as well as post-credit monitoring including loan recovery.

The objective under SGSY will be to bring every assisted poor family above the poverty line in a period of three years.

Subject to availability of funds SGSY will broadly seek to cover 30% of the rural poor families over the next 5 years in each district.

SGSY will seek to cover the rural artisans in a signification manner,enabling them to utilise the inherent skill to overcome poverty. Identification of activity clusters them to take into account the presence of the rural artisans among the BPL families. Improved toolkits to rural artisans will be financed from within SGSY in consonance improved toolkits but also to purchase raw materials and meet their working capital needs.

SGSY will be implemented by the DRDAs .The process of planning ,implementation and monitoring would integrate institutions in the district. DRDAs will be suitably revamped and strengthen.

SGSY will focus on improving the capacity of the delivery mechanism in such a manner as to effectively serve the poor. Emphasis will be laid on training   of personal.

Funding for SGSY between the Centre and the States will be in the ratio of 75.25(It is necessary to have a uniform pattern of funding for all poverty alleviation schemes so as to ensure that any given programme does not suffer for lack of interest by the States on this account)

The funds of Government of India will be distributed as per poverty levels as per the present practice.However additional parameters such as absorption capacity,special requirements etc. will also be taken into consideration. (a) closer association of the banks and other financial institutions with the selection of the beneficiaries of projects:(b) a mechanism for post-credit monitoring,particularly in the case of individual beneficiaries:and (c) a responsibility on the part of the SHGs to repay the loan on time:

The subsidy admissible to the general individual beneficiaries under the integrated programme will be uniform irrespective of category or area at 30% (50% for SC/ST) of the project cost subject to a ceiling of Rs. 7,5000/-(10,000 for SC/ST).For Group beneficiaries, the existing pattern of subsidy at 50% of the cost of the scheme ,subject to a ceiling of Rs. 1.25 lakh,will continue.Consequent to the merger of GKY into SGSY,there will be no absolute monetary ceiling for the individual and community minor irrigation project as applicable earlier.There shall be no limit on the investment levels.

SGSY will ensure upgradation of the technology in the identified activity clusters. The technology intervention will seek to add value to the local resources,including processing of the locally available material from natural and other resources for local and no-local market. For this purpose,existing institutional structures will be strengthen. Transmission of technology and necessary Training to the rural poor will be carefully planned and ensured.Suitable institution will be identified in each district to cater to the requirements of the technology upgradation and dissemination.SGSY will also suitable link up with IREP of MNES/IREDA.REC etc. to provide.