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.
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
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.