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ARF (FS) - IRDP/ SGSY

Objective:

  • The objective of the scheme is to provide credit for the promotion of agriculture,allied activities,SSI, including cottage industries/village industries,handicrafts and other rural crafts and allied activities in rural areas with a view to promote the integrated rural development and securing prosperity in rural areas.
  • NABARD (then ARDC) provides refinance facility for the same, since 1978-79.
  • The Government since 1/4/99 has decided to merge various self employment programme (viz.IRDP,DWCRA,TRYSEM,SITRA,GKY and MWS) into a new scheme called SGSY(Swarnajayanti Gram Swarozgar Yojana).
  • The new scheme will cover 30% of the poor in each block in next 5 years.
  • Every assisted family, is to brought above the poverty line in 3 years.

Salient features of SGSY:

  • Covers all aspects of self-employment, viz.organisation of SHG, training, credit, technology upgradation, infrastructure and marketing. 
  • Focus the activities on cluster approach.
  • Importance to group approach through SHG,individual projects are also considered.
  • Credit will be a critical component.
  • More involvement for banks in implementation.
  • The programme will be implemented by integrating with Block Plans.
  • Exclusive women groups in addition to groups involving women.
  • The list of families assisted will be from the BPL (Below Poverty Level) as identified by the Grama Sabha under the BPL Census.
  • Credit cum subsidy programme. Credit will be critical component and subsidy only a minor component.
  • Promotes multiple credit rather than one time credit-under IRDP.

Selection of Beneficiaries:

  • Beneficiaries will be selected from the BPL list of Grama Sabha.
  • Selection will be done by the block level SGSY committee constituted for the purpose under the chairmanship of Block level Panchayat President.
  • The coverage of vulnerable groups among rural poor will be;50% by SC/ST,40% by Women and 3% by Disabled.
  • Family having an annual income below the poverty line of Rs.11000/-(at 1991- 92 price level)eligible for assistance under IRDP has now modified as per capita monthly expenditure basis of Rs.327.48(for Kerala at 1996-97 prices).

Identification of Services:

  • The district level technical group constituted should prepare model project profiles for financing, all land based/farm activities and activities in ISB sector.

Quantum of Investment:

  • Per family/enterprise investment under IRDP should be sufficiently enlarged by increasing credit and subsidy.
  • The banks should provide adequate credit, irrespective of proportionate increase in subsidy component.
  • The working capital requirement should be fully taken into account while sanctioning loans and its availability to be ensured.

Subsidy eligible:

  • The subsidy eligible under IRDP will be as follows

    Individual Projects 30 % of project costs with a maximum  of Rs.7500/-
    SC/ST 50% of project costs with a maximum of Rs.10000/-
    Group activities (SHG) 50% of project costs with a maximum of Rs.125000/-

  • There will not be any upper limit on subsidy for irrigation projects.
  • Back ended subsidy system to be followed for the administration of subsidy under the scheme.

Security norms:

  • The limit for obtaining mortgage is fixed for loan above Rs.25000/- vide NABARD Mumbai letter dated 06/03/1997.
  • The security norms as prescribed by KSCARDB under the IRDP/Schemes to be followed.

Mode of Repayment:

  • The bank should fix realistic repayment schedule after taking into consideration of the level of income generation and economic life of assets.
  • The minimum period for IRDP loans may be fixed at 5 years,with initial grace wherever required.
  • The maximum repayment period will be 15 years under farm sector and 10 years under non-farm sector loans
  • The rate of interest will be as fixed by KSCARDB from time to time as per guidelines issued by NABARD/RRI.

Monitoring and Reporting System:

  • The scheme will be monitored at Block level,District Level and State level by the respective committees constituted for the purpose.
  • The monthly progress statement under IRDP/SGSY to be furnished through the controlling officers to the respective review committees.
  • The monthly loan disbursement statement to be furnished to KSCARDB for drawals of refinance in the prescribed format.

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