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Sreeram Viswanath

Published on: Sep 17, 2026

Swarna Jayanti Shahari Rozgar Yojana

The Swarna Jayanti Shahari Rozgar Yojana was inaugurated to replace three prior schemes focused on poverty alleviation: Nehru Rozgar Yojana (NRY), Urban Basic Services for the Poor (UBSP), and Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP). This initiative was revamped in 2009 under new guidelines to improve its effectiveness in providing employment opportunities to the urban poor. The aim of this article is to increase awareness and understanding of this vital welfare program.

Funding Pattern

This scheme operates on a funding ratio of 75:25 between the Central and State Governments, with the Central Government contributing the majority share. However, for special category states, the funding ratio changes to 90:10. These special category states include:

  • Arunachal Pradesh
  • Assam
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Jammu & Kashmir
  • Himachal Pradesh
  • Uttarakhand

Objectives

The primary goal of the scheme is to offer substantial employment opportunities to the urban unemployed and underemployed poor. It does so by promoting self-employment ventures and wage employment. Additional objectives include:

  • Promoting skill development and training programs that equip the urban poor with the capabilities necessary for self-employment or market employment.
  • Empowering communities to tackle urban poverty through self-managed structures such as Neighborhood Groups (NHGs), Neighborhood Committees (NHC), and Community Development Societies (CDS).

Target Population

This scheme is designed for the urban poor classified under the Below Poverty Line (BPL) segment, as identified by the Planning Commission of India. It's aimed at significantly improving their quality of life through self-employment and wage opportunities.

Components of the Scheme

The scheme primarily consists of the following components:

  • Urban Self-Employment Program (USEP)
  • Urban Women Self-Help Program (UWSP)
  • Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
  • Urban Wage Employment Program (UWEP)
  • Urban Community Development Network (UCDN)

Apart from these, a specialized component known as the Urban Programme for Poverty reduction among SCs and STs (UPPS) integrates into USEP and STEP-UP, fostering inclusivity and targeted support.

Urban Self-Employment Program

This component focuses on empowering the urban poor with self-employment opportunities through the following sub-components:

  • Assistance to individual beneficiaries for creating profitable self-employment ventures, through loans and subsidies.
  • Provision of technological, marketing, infrastructure, and knowledge support to the urban poor.

Target Groups

The program specifically benefits the BPL urban populace, with emphasis on women and marginalized groups such as the Scheduled Castes (SC), Scheduled Tribes (ST), and differently-abled individuals.

Identification of Beneficiaries

Beneficiaries are identified through house-to-house surveys in slum and low-income areas, led by Neighborhood Groups and aided by the City/Town Urban Poverty Alleviation Cell (UPA Cell). Additional support can also be sought from Non-Governmental Organizations (NGOs) and other identified bodies. For other schemes promoting urban employment like the Prime Minister's Employment Generation Programme (PMEGP), visit IndiaFilings to learn more.

Cluster Approach

The scheme is implemented using a cluster approach to ensure comprehensive benefits, including skill development, self-employment, and wage employment for every adult in the identified clusters.

Focus Sectors

Self-employment initiatives under the program focus on three core sectors: production, services, and business. This approach aligns with the goals of the Aatmanirbhar Bharat Rozgar Yojana, supporting self-reliant employment generation.

Financing Pattern

The program's financing pattern includes:

  • Subsidy support—up to 25% of the project cost, with a cap of Rs. 50,000.
  • Margin money—comprising 5% of the project cost.
  • Collateral requirements—none required.
  • Financial aid for Micro Business Centres—up to Rs. 80 lakhs per MBC, with an emphasis on eventual self-sufficiency.

Urban Women Self-Help Program (UWSP)

This component aims to empower women through economic activities and is broken down into the following:

  • Financial assistance to groups of urban poor women for establishing self-employment ventures with loans and subsidies.
  • Revolving Funds for Self-Help Groups (SHGs)/Thrift and Credit Societies formed by urban poor women.

Urban Women Self-Help Group Programme (Loan & Subsidy)

This program encourages urban poor women to start group-based self-employment ventures, providing them with independence and empowerment. Financial assistance includes a subsidy of Rs. 3,00,000 or 35% of the project cost (whichever is lower), and an additional bank loan and margin will cover the rest.

Urban Women Self-Help Program (Revolving Fund)

SHGs and T&Cs are granted up to Rs. 25,000 as a revolving fund for:

  • Procurement of raw materials and marketing of products.
  • Infrastructure support for group activities.
  • Covering travel expenses up to Rs. 500 for group members.

Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)

STEP-UP offers training programs to develop the skills of the urban poor, increasing their capacity for self-employment or improved salaried employment. Training covers service, business, and manufacturing activities, equipping participants with practical skills in sectors such as construction, carpentry, plumbing, and electrical services.

Urban Wage Employment Program (UWEP)

UWEP provides wage employment to BPL beneficiaries through labor-intensive projects funded by urban local bodies. These projects focus on constructing economically beneficial public assets, including community centers and stormwater management systems. The program is limited to towns with populations below Rs. 5 lakhs, according to the 1991 Census. This mirrors the focus of the Unemployed Youth Employment Generation Programme (UYEGP).

Urban Community Development Network (UCDN)

Community empowerment is a core aspect, achieved by establishing structures like Neighborhood Groups, Neighborhood Committees, and Community Development Societies in targeted urban areas. These organizations play a crucial role in achieving the goals of sustainable urban poverty alleviation, much like the efforts in the Mukhyamantri Yuva Swarozgar Yojana aimed at youth employment.

To discover more about similar impactful programs, explore the Swarna Jayanti Shahari Rozgar Yojana on IndiaFilings.

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Frequently Asked Questions

Common questions about Swarna Jayanti Shahari Rozgar Yojana: Urban Employment Initiative.

The SJSRY scheme is a comprehensive initiative aimed at providing gainful employment opportunities and promoting self-employment among the urban poor. It seeks to address urban poverty through a multi-pronged approach, including skill development, self-employment ventures, and wage employment programs.
The SJSRY scheme caters to the urban poor population, specifically those families classified as Below the Poverty Line (BPL) by the Planning Commission of India. Special emphasis is given to women, people from Scheduled Castes (SC) and Scheduled Tribes (ST), differently-abled individuals, and other vulnerable groups.
The SJSRY scheme is funded by the Central and State Governments in a ratio of 75:25, with the Central Government contributing the majority share. For special category states, the funding ratio is 90:10 between the Central and State Governments, respectively.
The SJSRY scheme comprises five major components: Urban Self-Employment Program (USEP), Urban Women Self-Help Program (UWSP), Skill Training for Employment Promotion among Urban Poor (STEP-UP), Urban Wage Employment Program (UWEP), and Urban Community Development Network (UCDN).
The USEP component provides assistance in the form of loans and subsidies to individual urban poor beneficiaries for setting up self-employment ventures. It also offers support in areas such as technology, marketing, infrastructure, and knowledge to help these individuals establish and sustain their enterprises.
The UWSP component is designed to assist groups of urban poor women in setting up profitable self-employment ventures. It provides loans, subsidies, and revolving funds to Self-Help Groups (SHGs) and Thrift and Credit Societies (T&CS) formed by these women.
The STEP-UP component focuses on providing skill training and development to the urban poor, enhancing their capacity for self-employment or securing better-paying salaried jobs. It covers various sectors, including services, business, manufacturing, and local skills and crafts.
The UWEP component aims to provide wage employment opportunities to urban poor beneficiaries living below the poverty line. It engages them in the construction of socially and economically useful public assets, such as community centers, storm water drains, roads, and night shelters.
The UCDN component focuses on community development and empowerment by establishing and strengthening community organizations like Neighborhood Groups (NHGs), Neighborhood Committees (NHCs), and Community Development Societies (CDSs) in targeted areas. These structures play a crucial role in sustaining urban poverty alleviation efforts.
The SJSRY scheme emphasizes a cluster-based approach, where all adults in identified clusters are provided with the benefits of skill development, self-employment, or wage employment opportunities. This comprehensive approach ensures that no urban poor household is left without the means to earn a livelihood.