In 2009, MoRD developed a strategic paper entitled “Poverty Eradication in India by 2015: Rural HH centered Strategy”. This paper draws lesson from experience of SGSY and other poverty reduction initiatives in India. As per this paper, it is estimated that out of estimated 70 million rural BPL HH, 45 million still needs to be organized into SHGs. Based on it, MoRD decided to restructure SGSY through establishment of NRLM and the Government of India approved it in 2010 and was formally launched on June 2011 in Rajasthan.

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