Revised Swarna Jayanti Shahari Rozgar Yojana

Backgrounder

 

 

With a view to provide gainful employment to the urban unemployed and underemployed through encouraging the setting up of self-employment ventures or provision of wage employment, a new urban poverty alleviation programme, namely, Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched by the Government of India on 01.12.1997. This scheme subsumed the earlier three urban poverty alleviation programmes, namely Urban Basic Services for the Poor (UBSP), Nehru Rozgar Yojana (NRY) and Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP).

An independent evaluation of SJSRY was carried out by the Ministry of Housing & Urban Poverty Alleviation in 2006 to assess the impact of the scheme in improving the conditions of the urban poor. Based on the study findings, lessons learnt in implementation and feedback received from State Governments, Urban Local Bodies and other stakeholders, a revision of the Guidelines of the SJSRY scheme has been made, with effect from the year 2009-2010.

 Objectives

The main objectives of the new revamped SJSRY are:

• Addressing urban poverty alleviation through gainful employment to the urban unemployed or underemployed poor by encouraging them to set up self-employment ventures (individual or group), with support for their sustainability; or undertake wage employment;

• Supporting skill development and training programmes to enable the urban poor have access to employment opportunities opened up by the market or undertake selfemployment; and

• Empowering the community to tackle the issues of urban poverty through suitable selfmanaged community structures like Neighbourhood Groups (NHGs), Neighbourhood Committees (NHC), Community Development Society (CDS), etc.

 Components

 SJSRY will have five major components, namely-

(i) Urban Self Employment Programme (USEP)

(ii) Urban Women Self-help Programme (UWSP)

(iii) Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)

(iv) Urban Wage Employment Programme (UWEP)

(v) Urban Community Development Network (UCDN)

 Revised Swarna Jayanti Shahari Rozgar Yojana

 The following major changes have been effected in the scheme:

(i) For special category States (8 NER States and 3 other hilly States i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Himachal Pradesh and Uttarakhand), the funding pattern for the Scheme between Centre and the States, has been revised from 75 :25 to 90:10.

(ii) For the beneficiary under the Urban Self Employment Programme (USEP) component of the Scheme, the education limit criteria of “not educated beyond 9th standard” has been removed and now no minimum or maximum educational qualification level has been prescribed for the purpose of eligibility of assistance.

(iii) For the self-employment (individual category), the project cost ceiling has been enhanced to Rs. 2.00 Lakhs from the earlier Rs. 50000/ - and the subsidy has also been enhanced to 25% of the project cost (subject to a maximum of Rs. 50000/-), from the earlier 15% of the project cost (subject to a maximum of Rs. 7500/-).

(iv) For the group enterprises set up by urban poor women, the subsidy has been made as 35% of the project cost or Rs. 300,000/- or Rs. 60,000/- per member of the Group, whichever is less. The minimum number required to form a women group has been reduced from 10 to 5. The revolving fund entitlement per member has also been enhanced from the existing Rs. 1000/- to Rs. 2000/-.

(v) Under the Urban Wage Employment Programme (UWEP) component, which is applicable to the towns having population less than 5 Lakhs as per 1991 census, the 60:40 Material labour ratio for the works under UWEP, flexibility of 10% (either side) is now accorded to the States/UTs.

(vi) The Skill Training of the Urban poor component has been restructured and quality skill training will be provided to the urban poor linking it with certification, imparted preferably on Public-Private Partnership (PPP) mode, with the involvement of reputed institutions like IITs, NITs, Poly-techniques,

ITIs, other reputed agencies etc. The average expenditure ceiling per trainee has been enhanced from the Rs.2600/- to Rs.10000/-.

(vii) 3% of the total Scheme allocation will be retained at the Central level for special / innovative projects to be undertaken to implement a time-bound targeting to bring a specific number of BPL families above the poverty line through self-employment or skill development.

 COMPONENTS UNDER REVAMPED SJSRY

 Urban Self Employment Programme (USEP)

• USEP will focus on providing assistance to individual urban poor beneficiaries for setting up gainful self-employment ventures.

• An Infrastructure component will enable setting up Micro-Business Centres (MBCs), housing common facilities and Informal Sector Markets, to be managed by the beneficiaries themselves in collaboration with other stakeholders.

• USEP targets the urban population below poverty line, as defined by the Planning Commission from time to time. The percentage of women beneficiaries under STEP-UP shall not be less than 30%. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/town population below poverty line (BPL). A special provision of 3% reservation should be made for the differently-abled, under this programme.

• The project cost ceiling for individual enterprises for self-employment is Rs.2 Lakhs with subsidy component of 25% of the project cost or Rs. 50000/-, whichever is less.

• In the infrastructure component, an average of Rs. 80 Lakhs can be provided for the MBCs (one time capital grant of Rs. 60 Lakhs + Rs. 20 Lakhs for the running cost for three years on a tapered scale).

 Urban Women Self-help Programme (UWSP)

Minimum number of women in a Women Self-Help Group should be 5.

• UWSP will aim at providing assistance by way of subsidy to urban poor women for setting up gainful group enterprises with SHG-Bank linkage.

• For setting up group enterprises, the UWSP group shall be entitled to a subsidy of Rs. 300,000/- or 35% of the cost of project or Rs. 60,000/- per Member of the Group, whichever is less. The remaining amount will be mobilized as Bank Loan and Margin Money.

• Revolving Fund assistance will also be provided to the Thrift & Credit Societies formed by the urban poor women [T & CS] at the rate of Rs. 2000/- per Member subject to a ceiling of Rs. 25000/- per T&CS.

• The Groups will be encouraged to undertake social security and other measures for the benefit of the members.

 Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)

• This component of SJSRY will focus on providing assistance for skill formation/ upgradation of the urban poor to enhance their capacity to undertake self-employment as well as access better salaried employment.

• Like USEP, STEP-UP will target the urban population below poverty line, as defined by the Planning Commission from time to time. The percentage of women beneficiaries under STEP-UP shall not be less than 30%. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/ town population below poverty line (BPL). A special provision of 3% reservation should be made for the differently-abled, under this programme. In view of the Prime Minister’s New 15-Point Programme for the Welfare of Minorities, 15% of the physical and financial targets under the Skill Training for Employment Promotion amongst Urban Poor (STEP-UP) at the national level shall be earmarked for the minority communities.

• STEP-UP intends to provide training to the urban poor in a variety of service, business and manufacturing activities as well as in local skills and local crafts so that they can set up self-employment ventures or secure salaried employment with enhanced remuneration. Training should also be imparted in vital components of the service sector like the construction trade and allied services such as carpentry, plumbing, electrical and also in manufacturing low-cost building materials based on improved or cost-effective technology using local materials.

• Skill Training may be linked to Accreditation, Certification and preferably be taken on Public-Private-Partnership (PPP) mode with the involvement of reputed institutions like IITs, NITs, Industry Associations, reputedEngineeringColleges, Management Institutes, Foundations and other reputed agencies. Training institutions such as ITIs/Polytechnics/ Shramik Vidyapeeths, Engineering Colleges and other suitable institutions run by Government, private, or voluntary organizations may be utilized and provided appropriate support for skills training of the urban poor subject to verification of their brand image and quality of instructions being imparted.

• The average unit cost allowed for training will not exceed Rs.10,000/- per trainee, including material cost, trainers’ fees, tool kit cost, other miscellaneous expenses to be incurred by the training institution and the monthly stipend, to be paid to the trainee.

 Urban Wage Employment Programme (UWEP)

 • UWEP seeks to provide wage employment to beneficiaries living below the poverty line within the jurisdiction of urban local bodies by utilising their labour for construction of socially and economically useful public assets. • These assets may be Community Centres, Storm water Drains, Roads, Night Shelters, Kitchen Sheds in Primary Schools under Mid day Meal Scheme and other community requirements like Parks, Solid Waste Management facilities, as decided by the community structures themselves.

• The Urban Wage Employment Programme (UWEP) will be applicable only to towns/cities with population upto 5 Lakhs, as per the 1991 Census.

• UWEP will provide opportunities for wage employment, especially for the unskilled and semi-skilled migrants/residents by creation of community assets. Special emphasis will be on the construction of community assets in low-income neighbourhoods with a strong involvement and participation of local communities.

• The material: labour ratio for works under this programme shall be maintained at 60:40. However, States/UTs can relax this material: labour ratio up to 10% (either way), wherever absolutely necessary.

• The prevailing minimum wage rate, as notified from time to time for each area, shall be paid to beneficiaries under this programme.

 Urban Community Development Network (UCDN)

 • UCDN will support and promote community organizations and structures such as Neighbourhood Groups (NHGs), Neighbourhood Committees (NHCs), and

Community Development Societies (CDSs) to facilitate sustainable local development.

• The CDSs shall be the focal point for purposes of identification of beneficiaries; preparation of applications, monitoring of recovery, and generally providing whatever other support is necessary to the programme. The CDSs will also identify viable projects suitable for that particular area.

IMPLEMENTATION & MONITORING

 • At the National level the Ministry of Housing & Urban Poverty Alleviation shall be the nodal Ministry for implementation of SJSRY.

• At the Central level, a Steering Committee headed by Secretary (HUPA) and having members from the States/UTs, Ministry of Finance, RBI, and other stakeholders will monitor the Scheme. This Committee will be meeting at least once in every three months.

• At the State level also, a State Level Monitoring Committee having members from the Banks, Micro Finance Institutions, Civil Society, and other stakeholders will be set up to effectively monitor the Scheme. This Committee will be meeting at least once in every three months.

• At the Urban Local Body level an Urban Poverty Alleviation & Livelihood Development Cell will coordinate and implement the scheme with a suitable monitoring system put in place.