Demand exceeds employment scheme targets

While the rural development ministry claims high success rate in the previous two years under its flagship Swarnajayati Gram Swarozgar Yojana (SGSY), a total of 3,24,526 eligible self-help groups (SHGs) are still awaiting financial assistance under the programme.

The ministry's outcome budgets for 2005-06 and 2006-07 show that assistance was provided to more SHGs than targeted.

However, the ministry's targets fell short of the requirements of the almost 25-lakh-strong SHG movement.

Considering the number of SHGs which are passing the gestation period of 12 months to 18 months, when they would become qualified for assistance, the targets do not match the demand on the ground.

In 2005-06, the government set a target of helping 53,000 SHGs. This was much below the 94,000 lakh SHGs in 2002-03 and 90,000 lakh SHGs in 2004-05 which passed Grade II and became eligible for financial assistance.

Adding to the problem is the backlog of SHGs which have applied for assistance. Minister of Rural Development Raghuvansh Prasad Singh had earlier admitted that 3.25 lakh SHGs were still to be provided assistance. This means these 3.25 lakh SHGs are left the middle of their Swarozgar (Self Employment-Entreprenuership) process, even after passing the Grade II scrutiny by the District Rural Development Agency (DRDA) authorities.

Ministry officials said the problem was lack of enough funds to meet the rising number of women SHGs. While the SGSY guidelines prescribe that at least 40 per cent of the SHGs should be of women, the ratio is 51 to 21 already.

"We have requested the Ministry of Finance and the Planning Commission to enhance the provision under the SGSY to clear the backlog," said Singh.

The Budget outlay for SGSY for 2007-08 is Rs 1,620 crore, which is Rs 540 crore more than the previous year's Rs 1,080 crore. This is exclusive of the assistance to be provided for the North-Eastern region.

"For the first year of the 11th Plan period, the allocation for SGSY has increased by Rs 600 crore and these enhanced funds are expected to clear some backlog," said Singh.

Official estimations the additional Rs 600 crore can help only 35,000 to 40,000 SHGs as the entire amount cannot be transferred to the DRDAs as SGSY grants.