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Swarna Jayanthi Shahari Rozgar Yojana


The Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) shall sheek to provide gainful employment to the Urban unemployed or underemployed poor through encouraging the setting up of self-employment ventures or provision of wage employment.   This programme will rely on creation of Suitable community structures on the UBSP pattern and delivery of inputs under this programme shall be through the medium of urban local bodies and such community structures.

The Swarna Jayanti Shahari Rozgar Yojana shall be funded on a 75:25 basis between the Centre and the States.

The Swarna Jayanti Shahari Rozgar Yojana shall consist of two special schemes, namely-

(i)                 The Urban Self-Employment Programme (USEP)

(ii)                The Urban Wage Employment Programme (UWEP


The Swarna Jayanti Shahari Rozgar Yojana shall rest on a foundation of community empowerment.  Rather than relying on the traditional method of top down implementation, this programme shall rely on establishing and promoting community organisations and structures to provide supporting and facilitating mechanism for local development.  Towards this end community organisation like Neighborhoods Groups (NHGs), Neighborhood Committee (NHCs), and Community Development Societies (CDSs), shall be set up in the target areas based on the UBSP pattern (Annexure IV).  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 project suitable for that particular area.

These CDSs may also set themselves up as Thrift and Credit societies to encourage community savings, as also other group activities.  However, Thrift and Credit societies may be set up separate from the CDSs as well.  These bodies will try to link local resource generation efforts with wider institutional finance.  It is expected that these bodies will be registered under the Societies Registration act or other appropriate Acts to provide them direct access to funds under various schemes as also a wider finance and credit base.  A maximum expenditure at the rate of Rs. 100 per member for the first year, and Rs. 75 per member for each subsequent year will be allowed for activities connected with the CDSs.  The CDS, being a federation of different community based organisations, shall be the nodal agency for this programme.  It is expected that they will lay emphasis on providing the entire gamut of social section inputs to their areas including, but not limited to, health, welfare, education, etc.  through establishing convergence between schemes being implemented by different line departments within their jurisdiction.


This programme will have three distinct parts:-

(i)   Assistance to individual urban poor beneficiaries for setting up gainful self employment ventures.

(ii)  Assistance to groups of urban poor women for setting up gainful self employment ventures.  This sub-scheme may be called "The Scheme for Development of Women and Children in the Urban Areas (DWCUA)".

(iii)   Training of beneficiaries, potential beneficiaries and other persons associated with the urban employment programme for upgradation and acquisition of vocational and entrepreneurial skills.


(i)  The programme will be applicable to all urban towns in India.

(ii)  The programme will be implemented on a whole town basis with special emphasis on urban poor clusters.


(i)  The programme shall target the urban poor, defined as those living below the urban poverty line, as defined from time to time.

(ii)  Special attention will be given to women, persons belonging to Scheduled Castes/Tribes, disabled persons and other such categories as may be indicated by the Government from time to time.  The percentage of women beneficiaries under this programme shall be not be less than 30% SCs and STs must be benefited at least to the extent of the proportion of their strength in the local population.  A special provision of 3% shall be reserved for the disabled under this programme.

(iii)  Educational Qualifications: There will be no minimum educational qualification for beneficiaries under this programme.  However, to avoid an overlap with the PMRY scheme, for the self employment component, this scheme shall not apply to beneficiaries educated beyond the IX standard.  As regards the wage employment component, there will be no restrictions of educational qualifications whatsoever.  Where the identified activity requires skill, training of an appropriate level, as may be necessary, will be provided to the beneficiaries before extending financial support.

(iv)   A house-to-house survey for identification of genuine beneficiaries will be done.  Non-economic parameters will also be applied to identify the urban poor in addition to the economic criteria of the urban poverty line. (Detailed Guidelines are given in Annexure I).  Community structures like the CDSs will be involved in this task under the guidance of the Town Urban Poverty Eradication Cell/Urban Local Body.  Lists of beneficiaries finalised will be displayed at the Urban Local Body Office as also in the concerned local areas.  For ease of operation if desired, the house-to-house survey and beneficiary identification can be got done by the State nodal agency through any identified body at the ULB/community level specially empowered in this behalf.

All other conditions being equal, women beneficiaries belonging to women headed households shall be ranked higher in priority than other beneficiaries.  For purposes of this section, women-headed households shall mean households which are headed by widows.  divorcees, single women, or even households where women are the sole earners.



(i) Self-employment through setting up Micro-enterprises and skill development.

  This Programme encourage under-employed and unemployed urban youth to set up small enterprises relating to servicing, petty business and manufacturing, for which there is a lot of potential in urban areas.  Local skills and local crafts are encouraged for this purpose.  Each town has to develop a compendium of such project/activities keeping in view cost, marketability, economic viability etc.  To avoid duplication with the ongoing Prime Minister's Rozgar Yojana (PMRY), this component of SJSRY is confined to below poverty line beneficiaries who have got education upto ninth standard with emphasis on those given a higher priority on the basis of the non-economic criteria.  The maximum unit cost will be Rs. 50,000 and the maximum allowable subsidy will be 15% of the project cost, subject to a limit of Rs. 7500.  The beneficiary is required to contribute 5% of the project cost as margin money.  Annexure II may be seen for operational details.

In case a number of beneficiaries, either male or a mixed group consisting of males and females, decide to jointly set up a project such project shall be eligible for a subsidy which will be equal to the total permitted subsidy per person as per the above criteria.  In this case too the provision relating to 5% margin money per beneficiary will apply.  The over all project cost, which can be permitted, will be the simple sum of the individual project cost allowable per beneficiary.

Skill development through appropriate training is another element of this programme.  It is intended to provide training to the urban poor in a variety of   service and manufacturing trades 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 like carpentry and plumbing and also in manufacturing low cost building materials based on improved local technology.  Services of the Building Centres sponsored by the HUDCO/BMTPC within the states may be utilised for this purpose, as per the local requirements.

Training institutions such as ITIs/Polytechnics/Shramik Vidyapeeths, Engineering Colleges and other suitable training institutions run by Government, private, or voluntary organisations may be utilised and provide appropriate support for this purpose.  In addition, the Building Centres existing within the states may also be utilised.

The unit cost allowed for training will be Rs. 2000 per trainee, including material cost, trainer's fees, other miscellaneous expenses to be incurred by the training institution and the monthly stipend, to be paid to the trainee.  The total training period for skill up gradation may vary from two to six months, subject to a minimum of 300 hours.  (For operational details please see Annexure III).

Infrastructural support  may also be provided to beneficiaries setting up micro-enterprises in relation to marketing of their products etc.  This can be accomplished by providing setting places for the poor in the form of kiosks and rehri markets, setting up of "Nagar Palika Seva Kendras" for construction and other services, (like those provided by carpenters, plumbers, electricians, TV/radio/refrigerator mechanics who will be available to city residents on call) and through provision of weekend markets/evening markets in municipal grounds or on road sides on the one hand and technical assistance in relation to market surveys/trends, joint brand names/designs and advertising on the other hand.  It is also proposed that a Service Centre should be set up at the CDS level for those who have undergone skill up gradation training.  Appropriate space should be provided to trained persons who can be asked to enter themselves with the Service Centre so that they could be sent to attend day-to-day skilled tasks on call from citizens against appropriate payment fixed by the Community Development Society (CDS).  Appropriate publicity may be done within the town regarding the facilities available under the Service Centre.  (Operational details in regard to training and infrastructual support are at Annexure III).

Tool kits may also be provided to trainees who complete the training satisfactorily.  The cost of tool kits should not exceed Rs.600.  In case the cost exceeds of Rs. 600 there is no objection to the excess amount being met from funds other than this programme funds or even as beneficiary's contribution.

(ii) Development of Women and Children in Urban Areas (DWCUA):

This Scheme is distinguished by the special incentive extended to urban poor women who decide to set up self employment ventures in a group as opposed to individual effort.  Groups of urban poor women shall take up an economic activity suited to their skill, training, aptitude, and local conditions.  Besides generation of income, this group strategy shall strive to empower the urban poor women by making them indepdnent as also providing a facilitating atmosphere for self-employment.

To be eligible for subsidy under this scheme, the DWCUA group should consist of at least 10 urban poor women.  Before starting income generating activity the group members must got to know each other well, understand the group strategy, and also recognise the strength and the o้ential of each member of the group.  The group shall select an organiser from amongst the members.  The group will also select its own activity.  Care should be exercised in the selection of activity because the future of the group will rest wholly on an appropriate selection.  As far as possible activities should be selected out of an identified self of projects for that area maintained by the Town Urban Poverty Eradication cell.  In addition, every effort will be made to encourage the group to set itself up as a Thrift and Credit Society.


The DWCUA group society shall be entitled to a subsidy of Rs. 1,25,000 or 50% of the cost of project whichever is less.

Where the DWCUA group sets itself up as a Thrift and Credit society, in addition to its other entrepreneurial activity, the group/Thrift and Credit society shall also be entitled to a lump sum grant of Rs. 25,000 as revolving fund at the rate of Rs. 1000 maximum per member.  This revolving fund shall be available to a simple Thrift and Credit Society also even if the society is not engaged in any project activity under DWCUA.  This revolving fund is meant for the use of the group/socieity for purposes like:-

(i)    purchase of raw materials and marketing;

(ii)    infrastructure support for income generation and other group activities;

(iii)   one time expense on child care activity.  Recurring expenses like salary for staff etc.

(iv)    expenses not exceeding Rs. 500 to meet travel costs of group members for visit to banks etc.

(v)   where an individual member of a Thrift and Credit society saves at lest Rs. 500 in a fixed deposit for 12 months with the society, she will be entitled to a subsidy of Rs. 30 to be paid on her behalf towards a health/life/accident/any other insurance scheme for herself.  Moreover, in cases where the member saves at least Rs. 750 in a fixed deposit in 12 months, she will be entitled to a subsidy of Rs. 60, at the rate of Rs. 30 for the member herself and either Rs. 30 for her husband towards health/life/accident/any other insurance of Rs. 30 for any minor girl child in her family for health/accident insurance.  This expense may also be debited to the revolving fund; and

(vi)   any other expense allowed by the State as being necessary in the group of society/s interest.

A DWCUA  group/Thrift and Credit society shall be entitled for payment of revolving fund not earlier than one year after its formation.  In other words, only such a body in existence and functioning for at least one year shall be eligible for payment of the revolving fund.  The decision whether a group has been in existence and functioning for more than one year shall be taken on the basis of examination of the record of the group as regards the number of meetings held, the collections made from members towards group savings, the regularity of collection, the role of the group in capacity building or training of its members etc.


Special assistance may be provided for setting up of community seva kendras which could be used for multifarious activities such as work places/marketing centres etc. for beneficiaries under this programme.  These seva kendras should be administered on a day to day basis by the local CDS.  Land for such seva kendras shall have to be provided free of cost either by the local body or any other agency.  The construction of the seva kendra shall fellow the norms laid down under the scheme of urban wage employment.  However, not more than 10% of the total allocation under the self employment component can be spent on creation of infrastructure.


States may utilise an amount upto a maximum of 5% of their total allocation for training and capacity building of the personnel involved with the implementation of this programme whether State Government employees, ULB employees, CDS workers or any other involved parties.  In all cases the training schedules and programmes drawn up by the States shall be integrated with the national training plan drawn up by the Department of UEPA.  Care shall be taken to ensure that the latest information is presented during training.  States shall be responsible for translating training material provided by the Government of India or its recognised institutions into vernacular so that it can be used effectively.

States may also consider developing in house training capabilities within SUDAs and DUDAs imparting adequate training to and skill development of officials attached with these institutions to enable them to work as trainers. Besides reducing reliance upon outside agencies, and imparting a field flavour to the training, thereby making it more relevant and respensive towards the situation on the ground, this will enable a much wider spread to be achieved in training programmes than would be possible if only one identified institution was involved with the training, as was the case earlier.


States may utilise upto 2% of their allocation for activities under the IEC component.  Once again, care shall be taken by the State to ensure that full use is made of the material made available by the Department of UEPA and the recognised national institutions in this regard.


States shall seek to minimise unproductive expenditure.  In any case, not more than 5% of the total allocated funds to the state can be utilised for A&OE expenses of ULBs and other structures down the line shall be met from the 5% allowed for this purpose cut of the funds placed at their disposal.  Any expenditure incurred over and above this limit shall be met out of local resources.  A further sum, not exceeding 3% of the allocated amount at the ULB level can be used for strengthening the ULB structure, subject to the provise that the said ULB should have set up the UPE cell.


This programme shall seek 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.

This programme shall apply to urban local bodies, the population of which was less than 5 lakhs as per the 1991 census.

The material labour ratio for works under this programme shall be maintained at 60:40.  The prevailing minimum wage rate, as notified from time to time for each area, shall be paid to beneficiaries under this programme.

This programme shall be done tailed with the State sector EIUS scheme as well as the NSDP.  This programme is not designed to either replace or substitute the EIUS, the NSDP, or any other State sector scheme.


Community Development Societies (CDSs) shall survey and draw up a list of available basic minimum services in their areas.  Missing basic minimum services shall be first identified.  Other requirements of physical infrastructure shall be listed thereafter.  The term, "basic minimum services" above shall carry the same connotation as is carried under the scheme of EIUS.

The CDS shall prioritise the above services into two lists "A" and "B".  This prioritisation shall be final and not subject to change and modification by any other agency.  List A will be the order of priority for the missing minimum services whereas List B shall be the order of priority for other required infrastructure.  These lists along with the remarks of the CDS with respect to where such services should be located etc. shall be forwarded to the Town Poverty Eradication Cell at the beginning of the year.

The Town Poverty Eradication Cell shall separately consolidate both lists for the entire town and get detailed technical estimates prepared for the same.  Such detailed estimates should be drawn up first for the mission basic minimum services and thereafter for list "B" while drawing up the estimates the total funds availability to the town should be kept in view.

States shall delegat the power to issue administrative sanctions either to the ULB or to the respective DUDA.

In case the ULB is so empowered it will examine the CDSs recommendations and take a final decision on merits.  In case the DUDA is so empowered, the ULB will forward the CDS recommendations along with their own recommendations and technical sanctions to the DUDA for necessary action.

The DUDA shall examine the proposals received on merits, subject to the provise that proposals relating to basic minimum services shall be given priority over proposals for other infrastructure.  Administrative sanction for works will be issued by the DUDA.  Normally, Administrative sanctions should not be issued for an amount greater than 200% of the available funds.

Works are to be executed through CDSs, under the general control and supervision of the ULBs, as far as possible.  ULBs are expected to maintain a close watch over the quality of construction.  Work must be done departmentally and detailed guidelines as regards maintenance of muster rolls etc. will be issued in this regard by the concerned State Governments.  To the extent possible even the material components of the work should be done departmentally.  Where departmental work is not possible, due to the specialised nature of the work involved, such material component of the work may be got done through agencies by following the proper tendering/Government procedure.  In all cases it must be ensured that works undertaken under this programme are brought to a safe stage and no work is left incomplete of pending half way.  In case of cose escalation, or expansion in the nature of the work, or increase in the project estimate for any other reason whatsoever, and if additional funds are not available under this programme, it shall be the basic responsibility of the sanctioning authority/implementing authority i.e. DUDA/ULB to ensure completion of such works by bringing in additional resources from other programmes, if so required.


At the community level a Community Organiser shall be appointed for about 200 identified families.  Such Community Organiser should, as far as practicable, be a Woman.  She should be a full time functionary either recruited, or taken on deputation from some Government department, or from the ULB, or employed on a contract basis.  The Community Organiser's responsibility will include:

(i)   facilitating and promoting voluntarism and organising community structures/groups;

(ii)  guiding and assiting the community in need assessment and formulating plans;

(iii)  working with the community to implement and monitor the programme;

(iv)  liaise with the sectoral departments to establish initial contacts with the community;

(v)   facilitating community skill enhancement through interactive experiences;

(vi)  organising community level training and information sharing; and

(vii)   identification of suitable beneficiaries for self employment ventures from her area, preparation of the applications for finance after approval of the beneficiaries name by the CDS, and subsequent follow up with the ULBs/Banks/Administration untill final disposal of the application.

(viii)   regular follow up with the financed beneficiaries to monitor the progress of the self employment venture as also timely repayment of loans etc.

(ix)   any other function as may be assigned to her for furtherance of the target of alleviating urban poverty.

At the town level, there shall be an Urban Poverty Eradication Cell under the charge of a Project Officer.  The Project Officer shall be responsible for coordinating the activities of all the CDSs and COs.  This cell shall be responsible for ensuring convergence between the activities of the societies and the ULB.  It shall promote linkages and uniformity of purpose with all sectoral departments and schemes.  The UPE cell will first identify urban poor clusters and areas for setting up of community structures.  The other functions of the UPE Cell/Project Officer would include:

(i)   guide and monitor the work of CDSs;

(ii)   prepare city convergence plans based on the community plans and sectoral programmes at District and Municipal levels;

(iii)  promote integrated and coordinated implementation of the UPE convergence plan;

(iv)   promote linkages of the community structures with the ULB structures under the 74th Constitution Amendment Act;

(v)    mobilise the human and financial resources at the city level;

(vi)   review and approve community action plans; and

(vii)  monitor programme activities at city level (MIS)

At the District level, the State Government shall constitute a District Urban

Development Agency (DUDA) with an officer designated as the District Project Officer.  This Project Officer will work under the over all guidance of the District Collector but shall be personally responsible for ensuring effective implementation of urban poverty alleviation initiatives in all urban areas falling within the district.  The DUDA shall be registered under the Societies Registration Act or any other appropriate Act.  The DUDA  shall be provided with necessary support structure by the State.  The functions of the District Project Officer shall include:

(i)   develop a policy for urban poverty alleviation at the district level;

(ii)   promote and facilitate convergence with the sectoral departments at district/city/town level;

(iii)  promote information and experience exchange within the district; and

(iv)  monitor city convergence plans and implementation at the district level.

At the State level, there shall be a State Urban Development Authority, which will be headed by a full time senior officer of the State Government.  The SUDA shall be designate as the State Nodal Agency for urban anti poverty programme.  The SUDA shall monitor the programme, give suitable policy directions, and facilitate convergence at the State level.  The SUDA shall be registered under the Societies Registration Act and/or any other appropriate act.  The functions of the SUDA shall include:

(i)    develop the state urban poverty programme and policy within the overall state urban strategy;

(ii)   provide technical support to district/towns to achieve convergence targets and participatory systems;

(iii)  monitor and assess the programme (MIS);

(iv)   plan, coordinate inter-city/town visits;

(v)    plan, coordinate and monitor the State Training Plan;

(vi)   mobilise resources and determine allocations based on the need and performance;

(vii)  guide and supervise the programme implementation through visits to the projects;

(viii)  report the programme status monthly, or as per the requirement from time to time, to the Department of UEPA.


The State Government may prescribe guidelines for the implementation of the programmes in the State based on these guidelines.  However, care should be taken to ensure that SUDA plays only a facilitating role to promote initiative and flexibility in an overall participatory development process.  At the National level,  the Department of Urban Employment and Poverty Alleviation shall be the nodal department.  The programme shall be monitored and overseen by the UPA Division.  A high level monitoring committee headed by Secretary (UEPA) with representatives from different sectoral departmentsw engaged in social sector schemes aimed at the Urban poor, as well as interested parties like the RBI, State Government representatives etc., shall monitor the programme on a half-yearly basis.



The Swarna Jayanti Shahari Rozgar  Yojana shall consist of two special schemes, namely -

            1.Urban Wage Employment Programme (UWEP)

            2.Urban Self Employment Programme (USEP)

            Under Wage Employment Programme the amount allotted by the Government of Tamil Nadu and Government of India shares related to 2000-2001 have been distributed to all Town Panchayats.   

             Self Employment Programme  consists of the following sub-components.



            3.Development of Women and Children in Urban Areas.(DWCUA)

            4.Thrift and Credit Society

            5.Community Structu


For the training purposes a sum of Rs.8.58 Lakhs have been allotted by the Government of India and Government of Tamil Nadu shares.  Action is being taken  to select the beneficiaries to participate in the training course.   Training such as Tailoring, Motor Rewinding, Car Driving, Computer Training, Screen printing etc.,


For this purpose, a sum of Rs.17.20 Lakhs have been allotted by the Government of India and Government of Tamil Nadu shares.  Action is being taken for the construction of community centres, Toilets , Water facilities etc., for the beneficiaries living below,  the poverty line..


Under this scheme a sum of Rs.34.39 Lakhs have been allotted by  the Government of India and Government of Tamil Nadu shares.   So far 77 Groups have been formed to implement the above scheme besides 1113 Numbers of women benefited. This scheme is specially extended to urban poor women for setting up self employment ventures in a group for taking up economic activity suited to their skill training aptitude and local conditions for making them independent as also providing a facilitating atmosphere for self employment.   Action is being taken to form the DWCUA Groups in all the Town Panchayats to implement the scheme.  For this purpose all Executive Officers in the Town Panchayats are given training  in the Tamil Nadu Institute of Urban Studies, Coimbatore for the above schemes.



For this purpose Rs.17.34 Lakhs have been allotted to all the Town Panchayats by the Government of India and Government of Tamil Nadu shares.  


For this purpose Rs.41.76 Lakhs have been allotted  to all the Town Panchayats by the Government of India and Government of Tamil Nadu shares.   Action is being taken to implement the social work awareness campaign like as  Female Foeticide , Infanticide, Child Labour, Drug Adicts, AIDS and Rain Water Harvesting Structure.

Now the government have proposed to have a discussion about convergence of Mahalir Thittam with SJSRY Scheme.   It is submitted that the Mahalir Thittam is having Self Help Groups in Town Panchayats,  consisting of  women  members and also  from among the women living  below poverty line. 

Further, it is submitted that this DWCUA Scheme is applicable only to the women living  below  the poverty line.




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Rain Water Harvesting  ||  Urban Hygiene & Sanitation  || CMDA || Important Places || Tourist Attractions || Forms  ||  Contacts  ||  Links]  ||  Feedback ||    What is New?

Last  updated on Friday, May 30, 2008