Implementation of Major Government Sponsored Schemes

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(a)   Prime Minister’s Rojgar Yojana (PMRY)


The prime Minister’s Rojgar Yojana is a programme for the Educated Unemployed Youths for promoting the entrepreneurship among the educated youths for their self-employment to reduce unemployment in the country. The scheme is being implemented in the state since the year 1993-94 and so far 264256 beneficiaries have been assisted under the scheme since inception. During the programme year 2005-06 a total number of 33885 cases were sanctioned by various banks against a target of 32000 beneficiaries recording achievement index of 105.8%. The state has been enjoying the priviledge of being first in surpassing the targets under the scheme every year. The year wise achievement under the scheme is given in Table No.3.

(b)  Swarnajayanti Gram Swarojgar Yojana (SGSY)


The scheme is being implemented in the State w.e.f. 01.04.99. It aims establishing a large number of micro enterprises in the rural areas, building upon the potential of the rural poor. The objective of SGSY is to bring every assisted family above poverty line in three years. The scheme was launched in the State in w.e.f. 1st April 1999. As against credit mobilisation target of Rs.184.94 crores for the State Rs.180.99 crores were disbursed recording achievement index of 97.97% during 2005-06.

(c)   Swarna Jayanti Shahari Rojgar Yojana


The Swarna Jayanti Shahari Rojgar Yojana (SJSRY) seeks to provide gainful employment to the urban unemployed or under employed poor though encouraging the setting up of Self Employment ventures or provision of wage employment. The scheme is being implemented in the state w.e.f. 01.12.1997 subsuming earlier scheme for Urban Micro Entrepreneurs (SUME) in it. For financial year 2005-06, physical target of 8645 was fixed with subsidy amount of Rs.6.48 crores. The achievement against this was 7268 in physical terms and Rs.5.19 crores in financial terms under USEP. Thus achievement index works out to 60.17% while under DWCUA banks have achieved 47.1% and 38.1% in respect of physical & financial targets.



(A)  Self Help Groups

Self Help Groups are emerging as effective supplementary credit delivery system for poor in general and rural poor in particular including those who are marginally above poverty line and could be termed as “near poor” in particular. The Self Help Groups also offers business opportunities for tapping small deposits and for micro finance. As such the lending under Self Help Groups programme has been widely accepted as innovative credit delivery mechanism for upliftment of rural poor mainly on account of added advantage like low transaction cost, effective monitoring / follow up and excellent recovery performance.


Most of the groups under Government Sponsored Scheme having evolved under different circumstances, do not always conform to the norms of the SHG linkage programme of the Banks and this has been coming in the way of linking them with the formal banking system.


The agency wise number of SHGs formed in the State is indicated below


Zila Panchayat


Rajiv Gandhi Watershed Mission


Mahila Bal Vikas


Padhana Badhana Andolan


NGOs / Banks




Credit Linkage of SHGs

Although credit linkage of SHG has been gradually increasing, it is not in consonance with the number of SHGs formed in the state. The spread of SHG concept is not uniform throughout the state and is concentrated in a few districts such as Indore, Khandwa, Dewas, Satna, Ujjain, Dhar, Jhabua, Mandsaur, Gwalior, Jabalpur etc. The number of SHGss credit linked in the state has increased from 74 SHGs with bank loan of Rs.14.34 lacs in 1997-98 to 45105 SHGs involving bank loan Rs.10968.74 lakh in 2004-05.


The above SHGs were credit linked by 16 Commercial Banks, 19 RRBs, and 21 DCCBs spread over 48 districts in the state as detailed below:



No. of Participating Branches

No. of Participating Branches

No. of SHGs credit linked

Bank Loan






















Region – wise spread of Credit Linkage of SHGs

Although all the 48 districts of MP have been covered under SHG-Bank Linkage Programme, there is wide disparity under different regions. It may be observed from the following table that the Malwa region with 59.47% credit linkage of SHGs has performed far better than other regions viz. Northern (10.08%), Eastern (10.96%), Central (9.56%) and Mahakaushal (9.93%)



District Covered

No. of SHGs Credit Linked

% of Share of Total


13. Districts : Shajapur, Ujjain, Indore, Dewas, Khandwa, Burhanpur, Khargone, Badwani, Dhar, Jhabua, Ratlam, Neemuch and Mandsaur




8 Districts : Bhopal, Sehore, Raisen, Vidisha, Rajgarh, Hoshangabad, Harda & Guna




8 Districts : Sagar, Tikamgarh, Chhattarpur, Damoh, Panna, Satna, Rewa, Sidhi, Shahdol, Umaria & Anuppur




11 Districts : Sagar, Tikamgarh, Chhattarpur, Damoh, Panna, Satna, Rewa, Sidhi, Shahdol, Umaria & Anuppur




8 Districts : Balaghat, Mandla, Dindori, Jabalpur, Katni, Narsinghpur, Seoni, & Chhindwara









Plan for 2006-07

NABARD MPRO, Bhopal had evolved strategy credit link 25250 SHGs during 2005-06. A notable development is that major Commercial Banks, viz., SBI, State Bank of Indore, PNB, UBI, UCO Bank, CBI etc., have taken a corporate decision to credit link SHGs on a priority basis during 2005-06. Apart from Commercial Banks, RRBs would also be extending credit to 5800 SHGs. The emphasis will be on enabling NGOs, banks and the Government Departments concerned to enhance micro credit through the SHG – Bank Linkage Programme and to coordinate the efforts of various agencies involved in the task.


As per the Potential Linked Credit Plans prepared by NABARD for 2006-07, a sum of Rs.5644.44 lakh has been estimated towards financing 22500 SHGs. With the valuable support and cooperation from Government, NGOs, Banks etc. the goal of financing 22600 SHGs can be achieved.

(B)  Kisan Credit Card


With a view to provide emergent credit to progressive farmers of good track record and to simplify and smoothen the operation of rural credit system, Kisan Credit Card scheme has been introduced by Banks in the state, which will facilitate availment of credit for all short term agriculture activities. The scheme was launched in the State on 12th September 1998 in 92nd State Level Bankers’ Committee meeting at Indore when 11 Kisan Credit Cards issued by Central bank of India and Bank of India were distributed at the hands of Hon’ble Union Finance Minister Shri Yashwant Sinha. Since then the banks are making continuous progressive in issuance of the Kisan Credit Card in the state. As per information available for March 2006 a total number of 35,77,834 Kisan Credit Cards have been issued by various banks.

(C)  Swarojgar Credit Card


 With a view to provide adequate and timely credit i.e. term loan or working capital or composite loan as per need / convenience of the borrower or nature of activity upto a limit of Rs.25000 the scheme was launched in 2004.


Against the annual target of 19034 banks have issued 9584 cards with loan amount to the tune of Rs.43.63 crores during 2005-06 while 18480 cards have been issued upto the 31.03.06.

(D)  Artisan Credit Card


In March 2003, Artisan Credit Card (ACC) scheme was introduced to meet ton the credit requirements of artisans both for their investment as well as working capital needs upto the maximum limit of Rs.2 lacs.


The banks have issued 1078 cards during the financial year 2005-06 and cards have been issued under the scheme till 31.03.06.

(E)  General Credit Card


Though RBI has issued guidelines to all banks to launch General Credit Card Scheme for the constituents in rural and semi urban areas for the loans upto Rs.25000 however, the progress will be monitored from the quarter ended June 06 in SLBC meeting.


100% KCC coverage in Ratlam & Jhabua districts

Two districts in the State viz., Jhabua and Ratlam have been identified for 100% coverage of Households under KCC/ GCC before the end of June 2006. Special DLCC meetings were held in these districts on 24 and 25 April 2006 which were addressed by Hon’ble Minister of State for Agriculture Shri Kantilal Bhuria. Action plans have been chalked out for issuing KCC to all farmers. Banks are making efforts to cover all eligible farmers under KCC during 2006-07 and ensure that all crop loans are issued through KCC only.

To ensure issuance of KCC to all eligible farmers, Director Agriculture will organize a meeting of all banks while at BLBC level continuous dialogue will take place at to know the factual position of number of farmers



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