Swarojgar Credit Card Scheme (SCC Scheme) was introduced in September 2003 consequent upon the announcement made

by Hon'ble Prime Minister in his Independent Day Speech on 15 August 2003.


SCC Scheme aims at providing adequate and timely credit ie. working capital or block capital or both to small artisans, handloom weavers, service sector personnel, fishermen, self employed persons, rickshaw owners, other microentrepreneures, SHGs, etc., from the banking system in a flexible, hassle free and cost effective manner. Borrowers in urban areas can also be covered under SCC Scheme. Small business covered under priority sector is also eligible under SCC Scheme. Any scheme/project that is income generating/ employment generating may be covered under the scheme. The facility may also include a reasonable component for consumption needs. Farm sector activities like fisheries, dairy, etc., can also be covered under the scheme. Generally such of the self-employment activities which have regular turn-over/income stream on short-interval basis can be covered under SCC scheme.

SCC is a credit delivery mode and not a purpose. Coverage of SCC will not make a unit ineligible for subsidy. Banks can issue SCCs to target borrowers of SCC scheme for disbursing credit under any scheme whether it is covered under subsidy or not.

NABARD's Cluster Development Programme

Cluster Definition A cluster is generally defined as a geographically bounded concentration of similar, related or complementary businesses with shared infrastructure, markets and services and faced with common opportunities and threats. Defined differently, a cluster is a is competitive - collaborative arrangement characterised by
• • •

Geographical concentration of rural artisans engaged in similar productive activity with shared infrastructure, markets and services faced with common opportunities and threats.

In this mode of Cluster Development. intensive and entailing higher level of financial support. give a boost to rural industrialisation. skill development. the size of NABARD financial intervention and challenges are different. the intervention budget would be limited to Rs. managerial inputs. the cluster development objectives and strategies are the same for both the types of clusters except that in the case of clusters for intensive development . The implementation period for the intensive cluster development would be a maximum of 5 years with an outlay not exceeding Rs. to go in for development of selected clusters on its own by partnering with other government agencies. In all cases the assistance should meet the criteria of cost effectiveness in terms of the impact on livelihoods and incomes. raw material access. The cluster development programme of NABARD is a comprehensive strategy aimed at holistic development of the cluster through planned interventions . NABARD would primarily be the source for meeting the resource requirements to fund the planned promotional interventions. NABARD had decided to develop 55 clusters (50 clusters on Participatory basis and 5 clusters for intensive development) in a period of 3-5 years starting from 2005-06. credit support and marketing assistance. Intensive Clusters Under Intensive Development. As a part of its commitment to NPRI programme. Support from other agencies wherever forthcoming would be utilised.15 lakh per cluster over a period of 3 years. one crore. 65 clusters were developed by NABARD New Cluster Policy Considering the excellent potential in the cluster approach for rural industrialization and the recognition of NABARD's role in rural clusters by several agencies including the GoI. NABARD had decided in 2005-06. interventions are more broad-based. NABARD would be the main promoter and involve its resources wherever assistance is not forthcoming from other agencies/ the other agencies do not have provision for support. NABARD would follow two models of cluster development :(i) Participatory model of cluster development (ii) Intensive Development model of cluster development Participatory Clusters Under participatory cluster. the approach would be to coordinate the efforts of all the agencies involved in carrying out the action plan prepared for the cluster development. Objectives Strengthening of existing clusters. towards sustainable competitive advantage through technology upgradation & transfer. Broadly speaking.National Programme for Rural Industrialisation (NPRI) for development of Clusters The National Programme for Rural Industrialisation (NPRI) was proposed by the Union Finance Minister in his budget speech for the financial year 1999-2000. and development of new clusters in exceptional cases. with a mission to set up 100 rural clusters every year for the next five years to.

Implementation of the Action Plan.NGO) and Cluster Development Facilitator (CDF) Conducting Base-line Survey & Diagnostic Study Drawing up Action Plan. Cluster Philosophy • • • • Focussed assistance. Focus Areas The following sectors have been identified for development on priority basis under Cluster Development Programme: • • • • Agri & Allied Activities Food Processing Small & Micro Enterprises in rural areas Traditional arts. District Rural Industries Project (DRIP) NABARD on a pilot basis had launched an integrated area-based credit intensification programme in collaboration with Government. such as. Close monitoring to spur continuous development and innovation. Review & Monitoring (Concurrent) Documentation (Concurrent) Evaluation and documentation of changes as a result of our intervention at the end of 5 years.to achieve the main objective of raising the income level and thereby living standards of the artisans through various interventions. handicrafts and handlooms Cluster Development Strategy The Cluster Development Strategy will have the following stages : o o o o o • • • • Identification of the Cluster Identification of Cluster Development Agency (CDA . Flexible instruments of assistance to meet specific needs of cluster. Demand based assistance. Banks and other .

Envisages promotional. (subsequently bifurcated into Ganjam and Gajapati districts in Orissa). infrastructural and linkage support from various project partners.. Does not envisage provision of any new subsidies other than the normal facilities (including existing subsidies) available for setting up of RNFS units in the district. Ganjam. Gwalior (Madhya Pradesh).Main Features • • • • • • • • A participatory programme of State Govt. Realistic assessment of potential for growth of RNFS and gearing up the entire district machinery committed to rural development. Facilitates adequate. thus covering 106 districts. NGOs and Developmental agencies for credit intensification towards development of RNFS. NABARD had since extended the project in phases. Sabarkantha (Gujarat) and Sawai Madhopur (Rajasthan). timely. Banks. Encouraged by the success achieved in the pilot districts and keeping in view the overwhelming support received from all the Project Partners in development of RNFS in the DRIP districts. Kurnool (Andhra Pradesh). Objective Creation of significant number of sustainable employment opportunities in rural areas through enhanced credit flow to RNFS with complementary financial and nonfinancial promotional support Coverage On a pilot basis the project was launched during 1993-94 in 5 select districts in the country viz. List of DRIP districts Drip Philosophy • • • • • Focussed Attention Systematic Planning Participatory Process Coordinated efforts Credit plus Approach DRIP . A flexible programme open to adoption of new ideas and innovations Launch of kisan credit card . qualitative and need. DRIP is not a target-oriented programme. energy and resources of all project partners to harness the potential for rural development.development agencies with focus on district known as District Rural Industries Project (DRIP) during 1993-94 with a view to evolving a role model for rural industrialisation.based credit support through banking channel for setting up of new units as well as for expansion/ modernisation of existing units. Facilitates convergence of the experience.

KVKs.for Rabi Crops. there would be 2-3 meetings per month.• • • • • Provide affordable credit for farmers in India. literature. Undertake activities such as financial literacy. Rs. 50000/. health etc Nabard providing financial support for first 3 years . Efforts towards Financial Literacy. ATMA. Started by the Government of India and NABARD Cash credit facilities without going through time-consuming bank credit screening processes repeatedly Valid for five years Maximum limits: Rs. community health and sanitation are essential components of the programme. visuals etc. 50000/. Undertake socio-economic developmental activities like community works. Creation of employment opportunities in farm and non-farm sectors in the programme area. Wadi project • • • • • • Wadi”' in Gujarati means a 'small orchard' covering one or two acres Effective tool for tribal development evolved gradually out of two decades . education. Farmers club programme • • • • • • • Organised by rural branches of banks with the support and financial assistance of NABARD For the mutual benefit of the banks concerned and rural people Coordinate with banks to ensure credit flow among its members Maintain better bank borrower relationship Organise minimum one meeting per month and depending upon the need.for Kharif Crops. Rejuvenation of the environment in an integrated and comprehensive manner leading to improved quality of life Farmers tech transfer fund • • • • • • Supporting all farmers including Farmers’ Club members Facilitate adoption of appropriate technologies through Trainingcum-Exposure (T&V) visits Dissemination of appropriate technologies and commercial intelligence through direct contacts. Special emphasis is given to women in the programme. etc. Credit Counselling etc Entering into Agreements with Research Institutions/SAUs. credit counselling and other related activities.

develop enterprise and creating employment opportunities in rural areas . . Set up small/ micro-enterprises.Rural Entrepreneurship Development Programme ( 1982) • • • • • • Achieve rural prosperity through credit and related activities. for development of this sector. for creation of sustainable employment REDPs motivate the potential entrepreneurs and instill in them confidence to start new enterprises. Recognizing the importance of the Rural Non-farm Sector (RNFS) in the faster economic development of rural areas refinance support and promotional assistance.

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