The Swarnjayanti Gram Swarojgar Yojana (SGSY) is a major self employment scheme launched in April, 1999. For Groups of Swarozgaris (SHGs), the subsidy would be at 50% of the cost of the scheme or per capita subsidy of Rs. 10,000/- or Rs. 1.25 lakh, whichever is less. There will be no monetary limit on subsidy for irrigation projects. Subsidy is back ended. The SGSY seeks to promote multiple credits rather than a one – time credit injection.

Under the scheme focus is on group approach. The SHGs may consist of 10-20 members and in case of minor irrigation, and in case of disabled persons and difficult areas i.e., dills, deserts and sparsely populated areas, this number may be from 5-20. Self- Help Group (SHG) should also be drawn from the BPL list approved by the Gram Sabha. The SHGs broadly go through three stages of evolution such as group formation, capital formation through the revolving fund and skill development and taking up of economic activity for income generation.

The SHGs can be further strengthened and stabilized by federating them at say village or cluster of villages or block or District level depending upon the number of Self Help Groups and their spatial distribution. DRDAs may facilate in planning of network of SHGs by federating them at appropriate level, once SHGs have reached the stage of maturity and have stabilized.