Scheme of Assistance to Voluntary Organizations for Welfare of OBCs

The Scheme of Assistance to Voluntary Organizations for Welfare of OBCs was introduced by the Central Government during the Ninth Five Year Plan. This initiative aids voluntary organizations in executing welfare activities to enhance the wellbeing of Other Backward Classes (OBCs). Below is a comprehensive guide on the essentials of this scheme.

Objectives

The scheme aims to uplift the educational and socio-economic conditions of OBCs through voluntary efforts. It focuses on integrating the voluntary sector in enhancing the skills and employing the target group, ultimately encouraging them to start income-generating activities or secure gainful employment. This initiative underscores the necessity of assisting strong voluntary organizations while fostering their development.

Qualifying Organizations

Eligible organizations for receiving assistance under this scheme include:

Registered bodies under the Societies Registration Act, 1860, or any legal entity with independent status such as public trusts or charitable companies.
Entities with a structured administrative framework and a duly established managing/executive committee.
Organizations whose goals align with the scheme's objectives.
Those registered for at least three years, barring exemptions granted by the Ministry of Social Justice and Empowerment.
Entities maintaining a consistent bank account for the preceding three years.
Non-profit entities working for community benefits rather than individual gains.

Additionally, organizations should have at least two years of experience in the relevant domain, and their projects should be implemented in Backward Districts identified by the Planning Commission. For further guidance, you may consider consulting business consultation services.

Extension to Villages

Projects approved under this initiative can be implemented in villages under the Saansad Adarsh Gram Yojana (SAAGY). This helps extend the scheme's benefits to rural areas, fostering inclusive development.

Scope of Coverage

Assistance is provided for setting up centres and delivering services that enable OBCs to develop skills and start self-employment or wage employment. Projects eligible for funding are listed in Annexure-I, but new projects aligning with scheme requirements are welcomed. Fund allocation is based on state committee recommendations and fund availability.

Scope of Assistance

The level of assistance offered is merit-based. The Government of India may cover up to 90% of the approved expenses, with the remaining to be funded by the voluntary organization. For PSUs and organizations like NBCFDC, the GIA is limited to 30% of total project costs. If the Ministry of Social Justice and Empowerment implements any program element, costs are covered entirely by the scheme’s budget.

Projects already approved can receive a first instalment of up to 75% of estimated expenses upon submission of necessary documents. These include the prescribed application format, a utilization certificate, financial accounts from the past year, and budget estimates for the current financial year. Understanding the financial aspects can be complex, which is why expert advice from chartered accountants might be beneficial.

Norms for Fund Release

The following norms must be followed by qualified organizations to receive funding:

NGOs with multiple branches across states can apply for funds for each branch, either separately or collectively under a parent body.
Trainees will receive vocational training in specified centres based on the region's infrastructure and employment opportunities.
Organizations can conduct activities in either owned or rented buildings.
Grants are sanctioned under procedures stated in Rule 149 of the General Financial Rules, 1963, and recommendations from State Governments/UT Administrations.
Suspicion of corrupt practices will result in denial of funds, as integrity is paramount.
Funds must strictly be used for the intended purposes, preventing misuse.
Organizations must declare a commitment to terms via a non-judicial stamp paper with sureties to the President of India.

For more comprehensive information about financial compliance, you may refer to specialized services like GST rules and regulations management.

This provision does not apply to quasi-government institutions or those with an approved budget from the Government. Fund-receiving organizations must keep detailed accounts of government grants, and cannot dispose of assets bought with the funding without government approval.

For additional support related to government certification procedures, entities may consider BIS Certification services.

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Frequently Asked Questions

Common questions about Assistance for Voluntary Organizations in OBC Welfare.

The Scheme of Assistance to Voluntary Organizations for Welfare of OBCs is an initiative introduced by the Central Government during the Ninth Five Year Plan. It aims to provide financial assistance to eligible voluntary organizations undertaking welfare activities for the Other Backward Classes (OBCs) to improve their educational and socio-economic conditions.

The primary objective of the scheme is to improve the educational and socio-economic conditions of OBCs through voluntary efforts. It involves engaging voluntary organizations in upgrading the skills of OBCs and helping them initiate income-generating activities or find gainful employment.

To be eligible for assistance, a voluntary organization must be registered under relevant laws, have an appropriate administrative structure, align with the scheme's objectives, have been registered for at least three years (waivable), have maintained a bank account for the last three years, and operate on a non-profit basis.

The scheme supports projects that establish centers and develop services to enable OBCs to enhance their skills and start income-generating activities through self-employment or wage employment. An indicative list of eligible projects is provided in Annexure-I of the scheme guidelines.

The Government of India may contribute up to 90% of the approved expenditure for a project, while the voluntary organization must bear the remaining 10% from its own sources. For PSUs and other organizations like NBCFDC, the assistance is limited to 30% of the total project cost.

The funds are released in installments, with the first installment of up to 75% released after submitting required documents. The second installment is released after submitting audited accounts, utilization certificates, and inspection reports. Specific norms are outlined in the scheme guidelines.

No, voluntary organizations should not receive assistance for the same purpose from more than one source under this scheme.

Organizations receiving funds must maintain subsidiary accounts for the government grant and utilize the funds exclusively for the intended purpose. They also need to obtain prior approval for disposing of any capital equipment or property purchased with the grant.

Yes, the projects proposed by the organization are to be implemented at the Backward Districts identified by the Planning Commission under this scheme.

Yes, the projects admissible under this scheme can be adopted in villages under the Saansad Adarsh Gram Yojana (SAGY).