20th April, 2019

Swarnjayanti Gram Swarozgar Yojana


  • Swarnjayanti Gram Swarozgar Yojana (SGSY) is a holistic self-employment scheme aimed at providing sustainable income to rural BPL households through income generating assets / economic activities to bring them out of poverty.
  • Under the scheme, assistance is given to the poor BPL families by mobilizing them into effective Self Help Groups (SHGs), building their capacities and skills and providing access to bank credit and government subsidy, including revolving capital funds for capital formation. The poor villagers are also supported with technological, infrastructure and marketing services.
  • The scheme promotes the establishment of key economic activities to be undertaken by SHGs based on the aptitude and occupational skill of the people, availability of natural resources and market potential. SSGY emphasizes on cluster approach for taking up activities to ensure the development of micro-enterprises, both land-based and otherwise.
  • SGSY is implemented by District Rural Development Agencies through the Panchayati Samitis with involvement of Panchayati Raj institutions, banks, the line departments and the NGOs.
  • Started as a flagship programme in 1999 by the Ministry of Rural Development, SGSY was restructured in FY 2010-11 as the National Rural Livelihoods Mission (NRLM) to implement it as a mission mode for targeted and time-bound delivery of results. NRLM is targeting universal social mobilization and universal financial inclusion, and adopting a demand driven strategy to involve states in formulating their own action plans for poverty reduction.


  • SGSY focuses on vulnerable, weaker and poor sections of society. Accordingly, out of the total beneficiaries assisted during a year, 50% of those assisted will be from SC/ST category; women will constitute 50% and 3% will be reserved for differently abled persons.
  • Generally, all members of SHGs should belong to families below the poverty line. However, if necessary, a maximum of 30% members in a group can be taken from families which are marginally above the poverty line.
  • The group should not constitute of more than one member per family.
  • Beneficiaries should not be members of more than one group.


  • The integrated approach of the scheme is expected to empower the assisted poor families socially and economically, by providing them a source of sustainable livelihood and a steady income. It also inculcates the habit of savings and banking habits among the members.
  • The government subsidy allowed under the scheme is 30% of the total project cost, subject to a maximum of Rs 7,500. In respect of SC/STs, however, subsidy will be 50% and Rs 10,000 respectively.
  • For groups (SHGs), subsidy is 50% of the project cost subject to per capita subsidy of Rs 10,000 or Rs 1.25 lakhs, whichever is less.
  • Subsidy for irrigation projects will have no monetary limit.
  • The beneficiaries, individual or in groups, will receive loans from banks equal to the total project cost.
  • Assistance in the form of revolving funds is provided to SHGs to augment their group corpus and they receive cash credit from banks equal to four times their group corpus.
  • The scheme has earmarked 10% of the central financial assistance for skill-based training of SHG members, 20% for infrastructure development (for cluster activities) and 15% for Special Projects.
  • SHGs are provided support for marketing their products through melas /exhibitions; provision of marketing intelligence, development of markets and consulting services.
  • Since the launch of SGSY, 22.53 lakh SHGs have been formed covering 66.97 lakh 66.97 lakh swarozgaris.

Documents Required

  • Passbook
  • Aadhaar Card
  • BPL Certificates
  • Voter`s ID
  • Loan Recommendation Letter from Block Development Officer (BDO)

How to Apply

  • Eligible beneficiaries may contact their BDO or District Rural Development Agencies (DRDA) to seek assistance under the program.
  • The Gram Sabha will first approve the list of BPL families after which the potential Swarozgaris for undertaking the economic activities would be identified in each habitation by a 3 member committee including the Sarpanch.
  • After selection, the DRDA will assist the assisted Swarozgaris in filling up the proforma application (available in local language) to be submitted to the banks for loan sanction which normally takes 15 days.

Relevant Link

You can find the detailed information at:

Contact Information

Ministry of Rural Development,
Krishi Bhavan, Dr. Rajendra Prasad Road,
New Delhi – 110001

Contact details of officials/officers of the Ministry can be accessed here: http://rural.nic.in/telephonelist.asp