Sampoorna Grameen Rozgar Yojana (SGRY)

The Sampoorna Grameen Rozgar Yojana (SGRY) was a comprehensive rural employment generation programme launched by the Government of India on 25 September 2001. It represented a significant milestone in India’s continuing efforts to alleviate rural poverty and ensure food and livelihood security for the underprivileged. By integrating wage employment with the creation of durable community assets, SGRY sought to promote sustainable rural development and self-reliance at the grassroots level.

Background and Genesis

The Sampoorna Grameen Rozgar Yojana was introduced by merging two earlier employment schemes — the Jawahar Gram Samridhi Yojana (JGSY) and the Employment Assurance Scheme (EAS). This consolidation aimed to streamline rural employment initiatives under a single, unified framework, thereby improving administrative efficiency and avoiding duplication of efforts.
The programme was launched during the tenure of Prime Minister Atal Bihari Vajpayee, reflecting the government’s focus on inclusive growth, food security, and rural infrastructure enhancement. The name “Sampoorna Grameen Rozgar” — meaning “Complete Rural Employment” — symbolised the holistic approach adopted to tackle both unemployment and hunger in India’s vast rural areas.

Objectives of the Scheme

The primary objectives of the Sampoorna Grameen Rozgar Yojana were:

• To provide additional wage employment in rural areas to the unemployed and underemployed poor.
• To create durable community assets that would support long-term rural development.
• To ensure food security through the distribution of foodgrains as part of wage payment.
• To strengthen Panchayati Raj Institutions (PRIs) by entrusting them with planning, implementation, and monitoring responsibilities.

The overarching goal was not only to generate income but also to empower local institutions and foster sustainable development through participatory planning and community involvement.

Structure and Funding Pattern

SGRY was implemented as a centrally sponsored scheme, jointly funded by the Central and State Governments. The Central Government provided 75 per cent of the funds, including the cost of foodgrains, while the State Governments contributed the remaining 25 per cent in cash.
A unique feature of the programme was the “food-for-work” component. The Central Government supplied foodgrains — mainly wheat and rice — free of cost to States and Union Territories, which were distributed as part of wages to labourers employed under the scheme. This mechanism simultaneously addressed the twin challenges of rural unemployment and hunger.

Implementation Mechanism

The implementation of the Sampoorna Grameen Rozgar Yojana was decentralised, with a clear emphasis on the role of Panchayati Raj Institutions. The funds and foodgrains were allocated directly to the Zila Parishads (District Panchayats), Intermediate Panchayats (Block level), and Gram Panchayats (Village level).
The scheme was executed in two distinct streams:

1. Stream I: Implemented through the Panchayati Raj Institutions. Funds and foodgrains were distributed among districts based on rural population and poverty ratios. Gram Panchayats identified and implemented projects such as rural roads, water conservation structures, sanitation works, and school buildings.
2. Stream II: Implemented through District and State-level agencies, including line departments, District Rural Development Agencies (DRDAs), and autonomous bodies. This stream focused on larger infrastructure projects that benefited multiple villages or regions.

At least 50 per cent of the funds were mandatorily earmarked for the Gram Panchayats to ensure local-level employment and community participation.

Coverage and Beneficiaries

The target group of SGRY included all rural poor individuals who were willing to do manual labour, with a special focus on people living below the poverty line (BPL). Preference was given to Scheduled Castes (SCs), Scheduled Tribes (STs), and women, with a minimum of 30 per cent of employment opportunities reserved for women.
Each beneficiary was entitled to wage payments partly in foodgrains and partly in cash, with the cash component determined by prevailing local wage rates. The scheme ensured that no individual received less than the statutory minimum wage.

Types of Works Undertaken

The works approved under the Sampoorna Grameen Rozgar Yojana were designed to generate employment while simultaneously creating durable assets for long-term rural prosperity. Major categories included:

• Construction and maintenance of rural roads and bridges to enhance connectivity.
• Water conservation and irrigation projects, including check dams and canals.
• Land development and soil conservation measures.
• Construction of school buildings, community centres, and panchayat halls.
• Development of minor forest produce and social forestry projects.
• Flood control and drainage works.
• Rural sanitation and drinking water facilities.

The emphasis was placed on labour-intensive projects to maximise employment generation and ensure broad participation.

Monitoring and Evaluation

Monitoring of SGRY was carried out through a multi-tier structure involving the Ministry of Rural Development, State Governments, and Panchayati Raj Institutions. District Rural Development Agencies (DRDAs) were responsible for maintaining records of funds, materials, and employment generated. Periodic inspections, social audits, and progress reports were mandatory to ensure transparency and accountability.
Despite these mechanisms, challenges in data accuracy and irregular reporting were noted in several states, indicating the need for more robust monitoring systems.

Achievements and Impact

The Sampoorna Grameen Rozgar Yojana contributed significantly to rural employment and infrastructure during the early 2000s. Its achievements included:

• Generation of millions of person-days of employment annually.
• Distribution of large quantities of foodgrains, directly addressing rural hunger.
• Strengthening of rural infrastructure, particularly in backward and drought-prone areas.
• Empowerment of Panchayati Raj Institutions, which gained experience in planning and implementing development projects.

The programme provided much-needed relief during times of agrarian distress, drought, and economic downturns, making it a vital component of India’s rural safety net.

Limitations and Criticism

Despite its successes, SGRY faced several limitations:

• Leakages and mismanagement in the distribution of foodgrains and funds.
• Delayed payments and irregular supply of foodgrains in some states.
• Inadequate asset maintenance, as many projects lacked follow-up planning.
• Regional disparities in implementation efficiency, with backward districts often lagging.
• Limited duration of employment, which failed to provide sustainable income security.

Critics also argued that the partial payment in foodgrains sometimes led to undervaluation of labour and inefficiencies in wage disbursement.

Transition and Legacy

In 2006, the Sampoorna Grameen Rozgar Yojana was merged with the National Food for Work Programme (NFFWP) and later subsumed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The new act provided a legal guarantee of employment and introduced robust mechanisms for transparency, accountability, and social auditing, thereby institutionalising many of SGRY’s objectives.
The legacy of SGRY lies in its pioneering integration of wage employment and food security within a decentralised development framework. It served as a crucial link in India’s policy evolution from short-term employment schemes to rights-based, legally enforceable rural employment programmes.