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.
The main objectives of the new revamped
• 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;
• 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.
SJSRY will have five major components,
Self Employment Programme (USEP)
(ii) Urban Women Self-help Programme
(iii) Skill Training for Employment
Promotion amongst Urban Poor (STEP-UP)
(iv) Urban Wage Employment
(v) Urban Community Development Network
Jayanti Shahari Rozgar Yojana
The following major changes have been
effected in the scheme:
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
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.
(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
(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
COMPONENTS UNDER REVAMPED SJSRY
Urban Self Employment Programme (USEP)
• USEP will focus on providing
assistance to individual urban poor beneficiaries for setting up gainful
• 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
• 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
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, reputed Engineering Colleges,
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
• 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
• 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
• The prevailing minimum wage rate, as
notified from time to time for each area, shall be paid to beneficiaries under
Urban Community Development Network
• 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
• 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.