CHAPTER-VI

POVERTY ALLEVIATION AND

RURAL DEVELOPMENT PROGRAMMES IN INDIA

– A BRIEF REVIEW

143

Poverty Alleviation and Rural Development Programmes in India-A Brief Review

"If a free society cannot help the many who are poor, it cannot save the few who are

rich".

- John F Kenned1

"The greatest evils and the worst of crimes is poverty; our first duty, a duty to which

every other consideration should be sacrificed, is not to be poor".

- George Bernard Shaw2

6.1: Introduction

India, the second most populous country in the world, despite experiencing

population explosion during the second half of the twentieth century, has been able to

bring down the growth rate of population, reduce the proportion of population below

poverty line and keep in check the percentage of population unemployed. It is fairly a

good achievement when we look at the problem-solution situation in terms of

proportion of population. But, India with a huge population base faces a brink state of

affairs when one looks at these tribulations in terms of absolute number of people

suffering. The population, poverty and unemployment situation in India vis-à-vis the

attempts made by the Governments and individuals to address these problems in the

country are briefly discussed in this chapter.

6.2: Population Scenario in India

Indian population, which was around 238 million in 1901 grew to about 1210

million in 2011 at more than fivefold increase in a time span of over a century3

(Graph 6.A). The population growth rate picked up enormously in the second half of

the twentieth century experiencing population explosion, with three fold increase in

the population from 361 million to 1,029 million in five decades (Graph 6.B). The

growth rate peaked during the decade 1961-1971 (an average of 2.48 per cent per

annum). This exerted a tremendous pressure on the resources which were already

stretched to the limits. Though the decadal population growth rate has been showing a

declining trend (from 24.66 per cent during 1971-1981 to 21.54 per cent during 1991-

2001 and falling below 20 per cent during the first decade of the new millennium),

increase in absolute number of people being added to the total population, every year,

is still agonizing because of the sheer population base of the country.

1 http://en.proverbia.net/citastema.asp?tematica=925, retrieved on 21-09-2014 2 http://en.proverbia.net/citastema.asp?tematica=925, retrieved on 21-09-2014 3 The World Bank (2011), World Development Indicators, International Bank for Reconstruction and

Development, Washington DC, USA, pp. 44.

144

Graph-6.A: Population Growth in India Since 1901

Source: World Development Indicators, 2011, pp. 44

Graph-6.B: Percentage Decadal Growth Rates of Population in India

(1951-1961 to 2001-2011)

Source: World Development Indicators, 2011, pp. 45

6.3: State-wise Population in India

Uttar Pradesh is the most populous state in the country with a population of

around 200 million, nearly equal to the population of Brazil. It is followed by

Maharashtra (112 million), Bihar (105 million), West Bengal (91 million), Andhra

Pradesh (85 million) and Madhya Pradesh (73 million) in that order. Sikkim (state)

145

and Lakshadweep (Union Territory) are the regions with the least populous areas

having 6 lakhs and 64 thousand inhabitants in them respectively. Population in each

state of the country exceeds the total population of most of the nations in other

continents. While twenty States and Union Territories have crossed a population mark

of 10 million, five States and Union Territories are yet to reach one million mark

(Map-6.I).

Map-6.I: State and Union Territory-wise Population in India (2011)

Source: World Development Indicators, 2011, pp. 37

146

Map-6.II: State and Union Territory-wise Growth of Population in India (1991-

2001)

Source: World Development Indicators, 2011, pp. 42

147

Map-6.III: State and Union Territory-wise Growth of Population in India (2001-

2011)

Source: World Development Indicators, 2011, pp. 43

The population of India, as per the Census 2011, was 1,028 million, an

increase of 181 million, in absolute terms, during the decade 2001-2011. This

absolute addition to the population was slightly lower than the population of Brazil,

the fifth most populous country in the world. India, accounting for only 2.4 per cent of

world’s surface area of 135.79 million square kilometers, is home to world’s 17.5 per

cent of the population and stands next to Bangladesh in population density, among the

top 10 populous countries. In comparison, United States, the third most populous

148

country in the world, possesses 7.2 per cent of world’s surface area, but accounts for

only 4.5 per cent of the world’s population4.

As per the estimations of United Nations, annual growth rate of world

population during the decade 2000-2010 was 1.23 per cent. During the same period,

population in USA grew at the rate of 0.7 per cent per annum and in China at the rate

of 0.53 per cent per annum. In contrast, India’s annual population growth rate for the

decade 2001-2011 was 1.64. At this rate, India is likely to lead the world in size of

population by 2030.

Eight states in the country, namely, Rajasthan, Uttar Pradesh, Uttarakhand,

Bihar, Jharkhand, Madhya Pradesh, Chattisgarh and Orissa are popularly referred to

as the eight Empowered Action Group (EAG) States. These eight states are home for

about 45 per cent of the country’s population. From the Maps 6.I and 6.II, it can be

observed that the population growth rates declined in EAG States in 2001-2011

decade compared to 1991-2001 decade. The magnitude of this decline was to the tune

of 7 percentage points in Rajasthan (from 28.4 to 21.4 per cent), 5.8 percentage

points in Uttar Pradesh (from 25.9 to 20.1 per cent), 1.2 percentage points in

Uttarakhand (from 20.4 to 19.2 per cent), 3.5 percentage points in Bihar (from 28.6

to 25.1 per cent), 1.1 percentage points in Jharkhand (from 23.4 to 22.3 per cent), 4

percentage points in Madhya Pradesh (from 24.3 to 20.3 per cent) and 2.3 percentage

points in Orissa (from 16.3 to 14.0 per cent), with the exception of Chattisgarh (from

18.3 to 22.6 per cent) where an increase in the growth rate by 4.3 per cent was

observed. Overall the fall in population growth rate was by about four percentage

points. This, together with similar decline in non-EAG States and Union Territories,

lowered rate of growth for the century by around 3.9 per cent, a healthy sign for the

economy. It might be an indication that the country has reached a point of inflection.

4 The World Bank (2011), World Development Indicators, International Bank for Reconstruction and

Development, Washington DC, USA, pp. 44.

149

6.4: Growth of Population, GDP and Food Grain Production in India: 1950-51 to

2010-2011

A comparison of decadal growth of population with Gross Domestic Product

at factor cost at constant prices and food grain production helps to comprehend if the

country’s economic development and food grain production have been able to cope up

with its escalating population, since population variables are both determinants and

consequences of development process. From Table 6.1 and Graph 6.C it can be seen

that, during the decade 2001-2011 the GDP grew annually by more than 14.1 per cent,

while the food grain production showed an annual growth rate of 1.09 per cent.

However, the country’s average annual growth rate at 1.76 per cent was higher than

that of food grain production2. These facts indicate that economy has to make every

effort to enhance growth rate of food production to keep pace with population growth.

Graph-6.C: Growth of Population, GDP and Food grains Production in India

(1950-51 to 2010-11)

Source: World Development Indicators, 2011, p. 60

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Table-6.1: Growth of Population, GDP and Food Grains Production in India

(1950-51 to 2010-11)

Year Population

(millions)

GDP at factor cost

(at constant prices in Rs.

Crores)

Food grain production

(million tonnes)

1950-1951 361 2,24,786 50.8

1960-1961 439 3,29,825 82

1970-1971 548 4,74,131 108.4

1980-1981 683 6,41,921 129.6

1990-1991 846 10,83,572 176.4

2000-2001 1,028.7 18,64,300 196.8

2010-2011 1,210.2 44,93,743 218.2

Source: World Development Indicators, 2011, p. 60

6.5: Rural Poverty in India

India, the second most populous country in the world, is home to 17 per cent

of the global population. Despite its impressive economic performance in the recent

years, poverty has remained a cause of great concern in the country. The Central as

well as the State Governments have been making relentless efforts to address this

issue through a number of employment generation and rural development

programmes. As a result, the percentage of rural people living below poverty line

(BPL) has halved, from 56.44 per cent in 1973 to 25.70 per cent in 2013. But, in

absolute terms, 216 million persons living BPL is still a source of anxiety for the

economy (Table 6.2).

Table-6.2: Rural Poverty in India: 1973-2013

Sl.

No. Years

Total Population (in crores)

No. of Persons Below

Poverty Line (in crores)

People Below

Poverty Line (in %)

1 1973 57.59 26.13 56.44

2 1983 71.91 25.20 45.65

3 1993 90.05 24.40 37.27

4 2004 109.70 22.09 28.30

5 2013 125.20 21.65 25.70 Source: Government of India (2008), Poverty Eradication in India by 2015 – Rural Household Centred

Strategy, Ministry of Rural Development, New Delhi, pp. 2

http://www.livemint.com/Politics/1QvbdGnGySHo7WRq1NBFNL/Poverty-rate-down-to-

22-Plan-panel.html, pp. 1

151

Map-6.IV shows that in 2011-12, the States of Uttarakhand, Madhya Pradesh,

Assam, Odisha, Bihar, Arunachal Pradesh, Manipur, Jharkhand and Chattisgarh had

Poverty Head Count Ratio (PHCR) above the national level estimate of 21.9 per cent

and the remaining 21 states and UTs have PHCR below the national level estimate.

Map-6.IV: Poverty Head Count Ratio: State and Union Territory-wise status in

India (2011-12)

Source: Millennium Development Goals India Country Report 2014

Note: Figures in parentheses indicate the number of States/UTs in each category

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6.6: Status of Unemployment in India

The Labour Force Participation Rate (LFPR), under the Usual Principal Status

(UPS) approach is estimated, by the Labour Bureau, GOI, to be 52.9 per cent at All

India level and in rural sector it is 54.8 per cent as compared to 47.2 per cent in the

urban sector. However, because of the seasonal nature of agriculture and more than

two-thirds of the cultivated area in the country being rain-fed with only one crop per

year, the rural workers, with hiring out their labour as the main source of income, are

either unemployed or have disguised unemployment or are heavily under employed.

This leads to low income - low consumption – low savings - lack of skills - low

productivity kind of poverty cycle.

Table-6.3: The Unemployment Rates in India: 2011-12

Approach* Rural Urban Rural + Urban

UPS 3.4 3.4 5.0 3.8

UPSS 2.9 4.7 3.3

CDS 6.3 6.3 6.3

CWS 4.2 5.8 4.6

Source: Report on Second Annual Employment and Unemployment Survey, 2011-12 by

Ministry of Labour & Employment, Government of India

* Four labour force estimation approaches followed by the Labour Bureau, GOI are

UPS (Usual Principal Status) approach, UPSS (Usual Principal and subsidiary

Status) approach, CDS (Current Daily Status) approach and CWS (Current Weekly

Status) approach.

The Labour Bureau, Government of India has estimated the rural

unemployment to be 3.4 per cent and urban employment to be 5.0 per cent during the

reference period 2011-12 (Table 6.3). Though the rural unemployment rate appears to

be lower, underemployment and disguised unemployment are the major predicament

faced by the rural labour force in India that pushes them in to poverty and reduces

their marginal productivity.

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Table-6.4: Per 1000 Distribution of Unemployed Rural Persons by Social Groups

According to Different Approaches: 2011-12

Approach Scheduled

Castes

Scheduled

Tribes

Other Backward

Classes

General

Category Overall

UPS 16 15 16 27 19

UPSS 14 11 15 24 17

CDS 36 33 31 35 33

CWS 22 22 22 31 25

Source: Report on Second Annual Employment and Unemployment Survey, 2011-12 by

Ministry of Labour & Employment, Government of India

* Four labour force estimation approache followed are UPS (Usual Principal Status)

approach, UPSS (Usual Principal and subsidiary Status) approach, CDS (Current Daily

Status) approach and CWS (Current Weekly Status) approach.

The Second Annual Employment and Unemployment Survey, conducted by

Labour Bureau of GOI has thrown up a few surprises. It is generally believed that the

socially disadvantaged groups, namely, Scheduled Castes, Scheduled Tribes and

Other Backward Classes have low participation in labour force and may be having

higher unemployment rate. Contrary to this general belief, as depicted in Table 6.4,

distribution of unemployed persons per 1000 population is the highest among general

category under UPS,UPSS and CDS approaches and in CWS approach it is much

lower and distributed alike among labour force belonging to SC, ST and OBC

categories. The UPS rates of participation in labour force for the SC, ST and OBC

groups are 55.9 per cent, 59.7 per cent and 53.3 per cent as against 48.5 per cent for

the General category5.

6.7: Government Initiative to Eradicate Poverty from India

The Ministry of Rural Development has been according top priority to

allround development of the rural areas, and there by eradication of poverty and

hunger from rural India, in conformity with national planning. The ministry has taken

a number of initiatives to build physical, economic and social infrastructure in rural

areas to bridge rural-urban gap and fulfill basic needs, ensure food as well as

livelihood security to rural populace. A glossary of all the development and

employment programmes in India is presented below in Table 6.5, followed by a brief

review of some important and relevant programmes.

5 Government of India, (2012), Report on Second Annual Employment and Unemployment Survey

(2011-12), Labour Bureau, Ministry of Labour and Employment, Chandigarh, pp. iv.

154

Table-6.5: Rural Development and Employment Programmes

Implemented in India after Independence

Plan

Period

Sl.

No. Programme/Plan/Institution

Year of

beginning Objective / Description

I 1 Community Development Programme (CDP)

1952 For overall development of rural areas with people’s participation

II 2 Hill Area Development Programme (HADP)

1960 For overall development of mountainous regions

3 Intensive Agriculture District Programme (IADP)

1960-61 To increase agricultural production through adoption of package of improved practices

III 4 Tribal Area Development Programme (TADP)

1962 For overall development of the tribal communities

5 Intensive Agriculture Area Programme (IAAP)

1964-65 To boost food grain production through intensive development of scientific and progressive agriculture

6 Credit Authorisation Scheme (CAS)

November 1965

A scheme of Qualitative Credit Control by Reserve Bank of India

7 Wells Cinstruction Scheme 1966 Promoting ground water irrigation

Annual Plans

8 High Yielding Variety Programme (HYVP)

1966-67 To increase productivity of food grain crops by adopting latest varieties of inputs of crops

9 Green Revolution 1966-67 To increase the food grains, especially wheat and rice, production

10 Nationalization of 14 Banks July 1969 To provide loans for agriculture, rural development and other priority sectors

IV 11 Pilot Intensive Rural Employment Projects (PIREP)

1972 For generation of rural employment

12 Employment Guarantee Scheme (EGS)

1972 For providing gainful employment to unemployed

13 Scheme of Differential Interest Rate

April 1972 To provide loan to the weaker sections of the society at a concessional interest rate of 4 per cent

IV 14 Employment Guarantee Scheme of Maharashtra

1972-73 To assist the economically weaker sections of the rural society

15

Accelerated Rural Water Supply Programme (ARWSP)

1972-73 For providing drinking water in the villages

16 Drought-Prone Area Programme (DPAP)

1973 To try a means for protection from drought by achieving environmental balance and by developing the ground water

17 Crash Scheme for Rural Employment (CSRE)

1972-73 For rural employment generation

18 Marginal Farmer and Agriculture Labour Development Agency (MFAL)

1973-74 For technical and financial assistance to marginal and small farmers and agricultural labourers

155

V

19 Minimum Needs Programme (MNP)

1974 For social and economic development of underprivileged population

20 Small Farmer Development Agency (SFDA)

1974-75 For technical and financial assistance to small farmers

21 Command Area Development Programme (CADP)

1974-75 To ensure better and rapid utilization of irrigation capacities of medium and large projects

22 Twenty Point Programme (TPP) 1975 For poverty eradication and raising the standard of living

23 National Institution of Rural Development

1977 To serve as training, investigation and advisory organization for rural development

24 Desert Development Programme (DDP)

1977-78 For controlling the desert expansion and maintaining environmental balance

25 Food for work programme 1977-78 For providing food grains to labourers for the works of development

26 Antyodaya Yojana 1977-78 To make the poorest families of the villages economically independent (in Rajasthan State)

27 Comprehensive Area Development Programme

1978 For overall development of selected areas

Annual Plans

28 Training Rural Youth for Self-Employment (TRYSEM)

Aug.15, 1979

To train rural youth for self-employment

Annual Plans

29 Whole Village Development Programme (WVDP)

1980 For building the development programme around the community as a whole

Annual Plans

30 National Rural Employment Programme (NREP)

1980 To provide profitable employment opportunities to the rural poor

VI 31 Integrated Rural Development Programme (IRDP)

Oct 2, 1980

For all-round development of the rural poor through a programme of asset endowment for self-employment

32 Development of Women and Children in Rural Areas (DWCRA)

Sep. 1982

To provide suitable opportunities of self-employment to the women belonging to the rural families who are living below the poverty line

33 Rural Landless Employment Guarantee Programme (RLEGP)

Aug 15, 1983

For providing employment to poor farmers and landless labourers

34 Self-Employment to the Educated Unemployed Youth (SEEUY)

1983-84 To provide financial and technical assistance for self-employment

35 .

Farmer Agriculture Service Centre’s ((FASC’s)

1983-84 To popularize the use of improved agricultural instruments and tool kits

36 National Fund for Rural Development (NFRD)

Feb 1984 To grant 100 per cent tax rebate to donors and also to provide financial assistance for rural development projects

156

VII 37 Comprehensive Crop Insurance Scheme

Apr 1, 1985

For insurance of agricultural crops

38 Special Food grains Production Programme (SFPP)

1986 To boost pulses production

39 Special Rice Production Programme (SRPP)

1986 To increase rice production

40 Forest Farming For Rural Poor (FFRP)

1986 For providing an alternative to shifting cultivation

41 Indira Awas Yojana (IAY) 1986 For providing housing for rural poor

42 Council for Advancement of People’s Action and Rural Technology (CAPART)

Sep1, 1986

To provide assistance for rural prosperity

43 Service Area Approach (SAA) Feb 1988

A new credit policy for rural areas

44 Million Wells Scheme 1989 To provide open irrigation wells, free of cost, to individual, poor, small and marginal farmers belonging to Scheduled Castes/Scheduled Tribes and freed bonded labourers

VII 45 Jawahar Rozgar Yojana April

1989

For providing employment to

rural unemployed

Annual

Plans

46 Agriculture and Rural Debt Relief

Scheme (ARDRS)

1990 To waive off bank loans up to

Rs.10,000 of rural artisans and

weavers

47 National Housing Bank Voluntary

Deposit Scheme

1991 To utilize black money for

constructing low cost housing for

the poor

VIII 48 Supply of Improved Tool kits to

Rural Artisans (SITRA)

July

1992

To supply modern toolkits to

rural craftsmen who are BPL

49 Rashtriya Mahila Kosh March 30,

1993

To facilitate credit support to

poor women for their socio-

economic up-liftment

50 Employment Assurance Scheme

(EAS)

Oct.2,

1993

To provide employment of at

least 100 days in a year to

villagers

51 Members of Parliament Local Area

Development Scheme (MPLADS)

Dec 23,

1993

To sanction Rs.1 crore per year

to every Member of Parliament

for various development works

in their respective areas

52 District Rural Development

Agency (DRDA)

1993 To provide financial assistance

for rural development

53 Mahila Samridhi Yojana 2 Oct,

1993

To encourage the rural women to

deposit in Post Office Saving

Account

54 Group Life Insurance Scheme in

Rural Areas

1995-96 To provide insurance facilities to

rural people on low premium

55 National Social Assistance

Programme

1995 To assist people living below the

poverty line

56 National Old Age Pension Scheme (NOAPS)

August 15, 1995

To provide pension to old people who are above the age of 65

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(Now 60) who cannot fend for themselves and do not have any means of subsistence

57 National Family Benefit Scheme (NFBS)

August 1995

To provide a sum of Rs. 10000 to a person of a below poverty line family who becomes the head of the family after the death of its primary breadwinner

IX 58 Ganga Kalyan Yojana 1997-98 To provide financial assistance to farmers for exploring and developing ground and surface water resources

59 Bhagya Shree Bal Kalyan Policy Oct 19, 1998

To uplift the girls’ conditions

60 Rajrajeshwari Mahila Kalyan Yojana

Oct 19, 1998

To provide insurance protection to women

61 Innovative Scheme for Rural Housing and Habitat Development Scheme

1999 To end shelterlessness and ensure conversion of all unserviceable kucha houses to pucca houses by the end of 11th plan period

62 Annapurna Yojana March 1999

To provide 10 kg food grains to senior citizens who do not get pension

63 Swarna Jayanti Gram Swarozgar Yojana

April 1999

For eliminating rural poverty and unemployment and promoting self-employment

64 Jawahar Gram Samridhi Yojana (JGSY)

April 1999

For creation of demand driven community / village infrastructure

65 Samagra Awas Yojana 1999-2000 For providing shelter, sanitation and drinking water

66 Pradhan Mantri Gramodaya Yojana

2000 To fulfill basic requirements in rural areas

67 Jan Shree Bima Yojana Aug 10, 2000

For providing Insurance Security to people living below poverty line

68 Antyodaya Anna Yojana (AAY) December 2000

To benefit the poorest of the poor in the country by providing them 35 Kgs of food grains per family per month @ Rs. 2 per Kg of wheat and Rs. 3 per Kg of rice.

69 Pradhan Mantri Gram Sadak Yojana (PMGSY)

Dec 25, 2000

To line all villages with pacca road

70 Khetihar Mazdoor Bima Yojana 2001 For insurance for Landless Agricultural Workers

71 Ashraya Bima Yojana June 2001

To provide compensation to labourers who have lost their employment

IX 72 Sampurna Gramin Rojgar Yojana Sep 25, 2001

For providing additional wage employment and food security, alongside creation of durable community assets in rural areas.

73 Shiksha Sahyog Yojana December 31, 2001

For education of Children Below Poverty Line

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X 74 Jai Prakash Narain Rojgar Gurantee Yojana

Proposed in 2002-03

budget

For employment Guarantee in most poor districts

75 Vande Matram Scheme Feb 9, 2004

As a major initiative in public-private partnership during pregnancy check-up

76 National Food for Work Programme

Nov 14, 2004

To intensify the generation of supplementary wage employment

77 Janani Suraksha Yojana April 12, 2005

For providing care to expectant mothers

78 Bharat Nirman Programme Dec 16, 2005

For development of Rural Infrastructure including six components: Irrigation, water supply, Housing, Road, Telephone and Electricity

79 National Rural Employment Guarantee Scheme

Feb 2, 2006

To provide at least 100 days wage employment in rural areas

80 Aam Aadmi Bima Yojana 2007 For (posthumously awarded) death and disability insurance for rural landless households

XI 81 Rashtriya Krishi Vikas Yojana August 1, 2007

To achieve 4 per cent annual growth in agriculture through development of Agriculture and its allied sectors during the XI Plan period

82 Rashtriya Swasthya Bima Yojana April 1, 2008

Health insurance for poor (BPL), Domestic workers, MGNERGA workers, Rikshaw pullers, Building and other construction workers, and many other categories as may be identified by the respective states

83 Prime Minister’s Employment Generation Programme (PMEGP)

2008-09 A credit-linked subsidy programme for creation of employment in both rural and urban areas of the country.

XI 84 Indira Gandhi National Widow Pension Scheme (IGNWPS)

February 2009

For BPL widows

85 Indira Gandhi National Disabled Pension Scheme (IGNDPS)

2009 BPL persons with multiple and severe disabilities in the age group of 18 to 64 years eligible for a grant of Rs 200 per month.

86

National Family Benefit Scheme (NFBS)

2009 A grant of Rs. 5000 in case of death due to natural cause and Rs. 10000 in case of accidental death of primary bread winner was provided to bereaved household

87 Indira Gandhi Matritva Sahayog Yojana

2010 A cash incentive of Rs. 4,000 to women (19 years and above) for the first two live births

88 Pradhan Mantri Adarsh Gram Yojana

2010 For integrated development of Schedule Caste majority villages in four states

89 National Rural Livelihood Mission (NRLM)

June 2011 To organize rural poor into SHG groups and make them capable for self-employment and thereby to develop better livelihood options for the poor

159

XII 90 National Food Security Act August 2013

To provide subsidized food grains to approximately two thirds of India’s 1.2 billion people

Since 2014

91 Pradhan Mantri Jan Dhan Yojana August 2014

A financial inclusion programme, where in any one can open new bank account with zero balance too and the account holders are given insurance coverage up to Rs. 1,00,000

92 Saansad Adarsh Gram Yojana October 2014

Each MP takes the responsibility of developing three villages (with physical and institutional infrastructure) by 2019

93 Micro Units Development and Refinance Agency Ltd. (MUDRA) Bank

April 2015 To facilitate all the individuals, especially those living in rural and interior parts of India to get the benefits of formal banking system and establish and grow their micro business.

Since 2014

94 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

May 2015 A term life insurance policy that can be renewed either on a yearly basis or for a longer period of time and provides coverage on the death of policy holder who is in the age group of 18 to 50 years.

95 Pradhan Mantri Suraksha Bima Yojana (PMSBY)

May 2015 An accidental death and disability insurance scheme, especially for the rural people.

96 Atal Pension Yojana June 2015 To bring pension benefits to allow people of the unorganized sector to enjoy social security with minimum contribution per month.

Source: i) Pratiyogita Darpan, General Studies on Indian Economy (2010)

ii) http://en.wikipedia.org/wiki/List_of_government_schemes_in_India retrieved on 10-07-2014

iii).http://en.wikipedia.org/wiki/Poverty_alleviation_programmes_in_India#National_Old_Age_Pen

sion_Scheme_.28NOAPS.29 retrieved on 10-07-2014

iv) http://en.wikipedia.org/wiki/National_Food_Security_Act,_2013 retrieved on 10-07-14

v) http://www.mapsofindia.com/my-india/society/what-is-pahal-and-how-is-it-going-to-benefit-lpg-

users, retrieved on 09-06-2015

6.8: Plan-wise Developmental Programmes by Government of India for

Reduction of Poverty and Unemployment6 & 7

6.8 (i): First Five-Year Plan (1951-56): India was essentially an agrarian economy

providing livelihood to more than 70 per cent of the workforce and contributing more

than 50 per cent of the GDP on the eve of launching the first five-year plan. Focus of

this plan included investments on dams and irrigation works, land reclamation,

promotion of animal husbandry within the ambit of agriculture, and revival of rural 6 http://www.planningcommission.nic.in/plans/fiveys/welcome.html 7 http://indiaonline.in/Profile/Economy/PlanningCommission/Five-Year-Plans.aspx

160

industries. It aimed at increasing the supply of goods and services and improving the

standard of living of people with the utilization of available labour force. In order to

achieve the target set for rural development an ambitious programme, Community

Development Programme (CDP) was launched in 1952 intending for overall

development of rural areas with people’s participation.

6.8 (ii): Second Five-Year Plan (1956-61): It was contemplated that providing

employment opportunities outside agriculture would go a long way in addressing the

problem of underemployment in the primary sector and hence the focus was laid on

promotion of non-agricultural activities. But, in spite of conceiving and executing a

number of public works programmes during the off season to generate employment

on the one hand and creating and strengthening capital stocks in the rural areas on the

other hand, magnitude of unemployment continued unabated. However, the

government tried to address this issue by way of maximizing the use of labour force

through proper mobilization of the existing resources at minimum social cost. Hill

Area Development Programme (HADP) for overall development of mountainous

regions and Intensive Agriculture District Programme (IADP) aimed at increasing

agricultural production through adoption of package of improved practices were the

two major programmes implemented during this plan period.

6.8 (iii): Third Five-Year Plan (1961-66): The primary objectives of this plan were

achieving a national income growth rate of more than 5 per cent and attaining self-

sufficiency in food grains production by mid 1960s. It targeted to generate

employment for 3.5 million people in agriculture sector and 10.5 million aspirants in

non-agriculture sector. Some studies showed that underemployment ailing the

economy was to the tune of around 20 million people (George, P. T. and Raju, K.N.

(1980) Rural Employment, Review of policies and programmes. National Institute of

Rural Development, Hyderabad, p.60). Generation of employment, promotion of

rural industries and effective use of rural works programmes were the three pronged

components of the development strategy. In order to promote rural industries, rural

electrification was also prioritized. Unfortunately, high population growth rate acted

as a bottleneck in ameliorating underemployment problem in rural areas. Tribal Area

Development Programme (TADP) aiming at overall development of the tribal

communities and Intensive Agriculture Area Programme (IAAP) to boost food grain

production through intensive development of scientific and progressive agriculture,

161

Credit Authorisation Scheme (CAS) by RBI for qualitative credit control, Wells

Construction Scheme for promoting ground water irrigation were the important

development programmes started during that plan period.

6.8 (iv): Annual Plans (1966-69): Three annual plans during this period witnessed

launching major development programmes which transformed the country from being

a food aid seeking economy to a self-sufficient food producer, in the coming years,

including High Yielding Development Programme (HYVP) that laid the foundation

for Green Revolution were launched during the annual plans period. Nationalization

of 14 major banks to extend loans for agriculture, rural development and other priority

sectors was also done during this period.

6.8 (v): Fourth Five-Year Plan (1969-74): A strategy to directly attack poverty

through target approach was the novel concept conceived during this plan. The

Government reiterated its commitment to create gainful employment on a large scale

and thereby paved the way for rapid strides in agriculture development. Several wage

employment programmes were implemented in rural areas in order to improve the

asset base of rural poor and involve them in the process of production and income

generation. The Government also pondered over shifting the investment pattern from

urban to rural areas, capital-intensive to labour-intensive sectors in line with wage-

Good model. The major thrust given for poverty alleviation in terms of development

programmes and policies included Pilot Intensive Rural Employment Projects

(PIREP) for generation of rural employment, Employment Guarantee Scheme (EGS)

for providing gainful employment to unemployed, Scheme of Differential Interest

Rate (DIR) to provide loan to the weaker sections of the society at a concessional

interest rate of 4 per cent, Employment Guarantee Scheme of Maharashtra (EGSM) to

assist the economically weaker sections of the rural society, Accelerated Rural Water

Supply Programme (ARWSP) for providing drinking water in the villages, Drought-

Prone Area Programme (DPAP) to provide protection against drought by achieving

environmental balance and by developing the ground water irrigation, Crash Scheme

for Rural Employment (CSRE) for rural employment generation and Marginal Farmer

and Agriculture Labour Development Agency (MFAL) for providing technical and

financial assistance to marginal and small farmers and agricultural labourers.

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6.8 (vi): Fifth Five-Year Plan (1974-79): The main objective under this plan was

creation of employment opportunities on a large scale in agriculture and allied sectors,

which were more diversified and dispersed in nature. The initiative behind this effort

was that technological breakthroughs in the agricultural sector would enhance the

potential for intensive agriculture which extends the scope for accommodating

burgeoning labour force in that sector. The major development pogrammes initiated

during this plan period were Minimum Needs Programme (MNP) for social and

economic development of underprivileged people, Small Farmer Development

Agency (SFDA) for technical and financial assistance to small farmers, Command

Area Development Programme (CADP) to ensure better and rapid utilization of

irrigation capacities of medium and large projects, Twenty Point Programme (TPP)

for poverty eradication and raising the standard of living, establishment of National

Institution of Rural Development (NIRD) to serve as training, investigation and

advisory organization for rural development, Desert Development Programme (DDP)

for controlling the desert expansion and maintaining environmental balance, Food for

work programme (FWP) for providing food grains to labourers for the works of

development, Antyodaya Yojana to make the poorest families of the villages

economically independent (in Rajasthan State) and Comprehensive Area

Development Programme for overall development of selected areas.

6.8 (vii): Annual Plans (1979-80): A couple of major rural development programmes

initiated during this interim period included Training Rural Youth for Self-

Employment (TRYSEM) and Whole Village Development Programme (WVDP) for

building the development programme around the community as a whole.

6.8 (viii): Sixth Five-Year Plan (1980-85): The Government faced the challenge of

growth rate of labour force exceeding growth rates of population and employment. It

was expected that around 108 million new job seekers would enter the labour market

during this plan period. Agriculture, rural development, village and small-scale

industries and construction sectors were identified to generate additional employment,

of which agriculture and allied activities sector alone was expected to generate half of

this projected employment. Employment policy envisaged for this period hovered

around reduction in open unemployment and underemployment by increasing the rate

of growth in gainful employment. Seeds of economic liberalization were sown during

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this plan period. A policy of doing away with price controls and ration shops led to

increase in food prices and a raise in cost of living as a consequence. Rural

development and poverty alleviation programmes initiated during this period included

Integrated Rural Development Programme (IRDP) envisioned to be an umbrella

programme comprising of various special programmes for all-round development of

the rural poor through a programme of asset endowment for self-employment which

were expected to generate capacious employment, Development of Women and

Children in Rural Areas (DWCRA) to provide suitable opportunities of self-

employment to the women belonging to the rural families who are living below the

poverty line, Rural Landless Employment Guarantee Programme (RLEGP) for

providing employment to poor farmers and landless labourers, Self-Employment to

the Educated Unemployed Youth (SEEUY) to provide financial and technical

assistance for self-employment, establishment of Farmer Agriculture Service Centres

((FASCs) to popularize the use of improved agricultural instruments and tool kits and

creation of National Fund for Rural Development (NFRD) to grant 100 per cent tax

rebate to donors for rural development projects and also to provide financial

assistance for such projects.

6.8 (ix): Seventh Five-Year Plan (1985-90): The planners looked ahead to an

increase in country’s labour force by 39 million employment aspirants, while the rate

of growth in employment was pegged at 4 per cent per annum. Employment strategy

unfurled in the plan documents emphasized increased cropping intensity, diffusion of

improved technologies in rain-fed and low productive regions, promotion of labour-

intensive infrastructure development and so on. The plan also earmarked 20 per cent

of fund allocation for social forestry and 10 per cent for works directly benefiting Sc

and ST workers in backward areas with predominant proportion of unemployed and

landless labourers. Ambitious programmes implemented during this plan period

included Comprehensive Crop Insurance Scheme (CCIS) as a risk mitigation

mechanism for farmers exposed to brutal weather uncertainties, Special Food grains

Production Programme (SFPP) to increase rice production, Forest Farming For Rural

Poor (FFRP) for providing an alternative to shifting cultivation, Indira Awas Yojana

(IAY) to provide housing for rural poor, instituting Council for Advancement of

People’s Action and Rural Technology (CAPART) to provide assistance for achieving

rural prosperity, Service Area Approach (SAA) as a new credit policy for expanding

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loan base and ease lending in rural areas, Million Wells Scheme (MWS) to provide

open irrigation wells, free of cost, to individual, poor, small and marginal farmers

belonging to Scheduled Castes/Scheduled Tribes and freed bonded labourers and

Jawahar Rozgar Yojana (JRY) to mitigate the problem of seasonal unemployment.

6.8 (x): Annual Plans (1990-92): The efforts by the Government to tackle rural

misery continued during this interim period. Agriculture and Rural Debt Relief

Scheme (ARDRS) to waive off bank loans up to Rs.10,000 of rural artisans and

weavers and National Housing Bank Voluntary Deposit Scheme to utilize black

money for constructing low cost housing for the poor were the two major state

initiatives of this regime.

6.8 (xi): Eighth Five-Year Plan (1992-97): The plan envisioned deceleration in

population growth rate, improvement in employment opportunities and reduction in

poverty. Focus of employment generation strategy was shifted from providing

employment of relief type to that aimed at building durable productive assets.

Employment generation to the tune of 10 million person days per annum was planned.

JRY was restructured for this purpose. The planners tried to break the nexus between

unemployment, poverty and economic hardships by planning and executing various

programmes that included Supply of Improved Tool kits to Rural Artisans (SITRA) to

supply modern toolkits to rural craftsmen who are below poverty line (BPL),

establishment of Rashtriya Mahila Kosh (RMK) to facilitate credit support to poor

women for their socio-economic up-liftment, Employment Assurance Scheme (EAS)

to provide employment of at least 100 days in a year to villagers, Members of

Parliament Local Area Development Scheme (MPLADS) to sanction Rs.1 crore per

year to every Member of Parliament for various development works in their

respective constituencies, establishment of District Rural Development Agency

(DRDA) to provide financial assistance for rural development, Mahila Samridhi

Yojana (MSY) to encourage the rural women to deposit in Post Office Savings

Account, Group Life Insurance Scheme in Rural Areas (GLISRA) to provide

insurance facilities to rural people at low premiums, National Social Assistance

Programme (NSAP) to provide necessary assistance to people living below the

poverty line, National Old Age Pension Scheme (NOAPS) to provide pension to old

people who are above the age of 65 years (now revised to 60 years) who cannot fend

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for themselves and do not have any means of subsistence and National Family Benefit

Scheme (NFBS) to provide a sum of Rs. 10000 to a person of a below poverty line

family who becomes the head of the family after the death of its primary breadwinner.

6.8 (xii): Ninth Five-Year Plan (1997-2002): This plan aspired at fast paced

industrialization, agriculture and rural development, human development and poverty

reduction through full-scale employment. An attempt was made to provide basic

facilities like education, safe drinking water and primary health care to all. Self

reliance on domestic resources was emphasized in prioritizing agriculture and rural

development activities. Programme and policy initiatives of the Government during

this five-year plan included Ganga Kalyan Yojana (GKY) to provide financial

assistance to farmers for exploring and developing ground and surface water

resources, Bhagya Shree Bal Kalyan Policy (BSBKP) to uplift the girls’ conditions,

Rajrajeshwari Mahila Kalyan Yojana (RMKY) to provide insurance protection to

women, Innovative Scheme for Rural Housing and Habitat Development (RHHDS) to

end shelterlessness and ensure conversion of all unserviceable kucha houses to pucca

houses by the end of 11th plan period, Annapurna Yojana (AY) to provide 10 kgs. of

food grains to senior citizens who do not get pension, Swarna Jayanti Gram

Swarozgar Yojana (SGSY) for eliminating rural poverty and unemployment and

promoting self-employment, Jawahar Gram Samridhi Yojana (JGSY) for creation of

demand driven community/village infrastructure, Samagra Awas Yojana (SAY) for

providing shelter, sanitation and drinking water, Pradhan Mantri Gramodaya Yojana

(PMGY) to fulfill basic requirements in rural areas, Jan Shree Bima Yojana (JSBY)

for providing Insurance Security to people living below poverty line, Antyodaya Anna

Yojana (AAY) to benefit the poorest of the poor in the country by providing them 35

Kgs of food grains per family per month at the rate of Rs. 2 per Kg of wheat and Rs. 3

per Kg of rice, Pradhan Mantri Gram Sadak Yojana (PMGSY) to line all villages with

pacca roads, Khetihar Mazdoor Bima Yojana (KMBY) to provide insurance facility to

landless agricultural workers, Ashraya Bima Yojana (ABY) to provide compensation

to labourers who have lost their employment, Sampurna Gramin Rojgar Yojana

(SGRY) for providing additional wage employment and food security to people and

creating durable community assets in rural areas and Shiksha Sahyog Yojana (SSY)

for the education of Children Below Poverty Line.

6.8 (xiii): Tenth Five-Year Plan (2002-07): This plan set the target of poverty

reduction by 5 percentage points by the end plan period. It also aimed at increasing

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wage rates by 50 per cent by 2007 and providing gainful and high-quality

employment at least to the additional job seekers. In its effort to achieve the targets

the Government launched many employment generation and poverty alleviation

initiatives including Jai Prakash Narain Rojgar Gurantee Yojana (JPNRGY) for

providing employment Guarantee in most poor districts, Vande Matram Scheme

(VMS) as a major initiative in public-private partnership during pregnancy check-up,

National Food for Work Programme (NFWP) to intensify the generation of

supplementary wage employment, Bharat Nirman Programme (BNP) for the

development of Rural Infrastructure including six components: Irrigation, water

supply, Housing, Road, Telephone and Electricity, National Rural Employment

Guarantee Scheme (NREGS) to provide at least 100 days wage employment to all the

rural households whose adult members are ready to do manual work and Aam Aadmi

Bima Yojana (AABY) for providing (posthumously awarded) death and disability

insurance for rural landless households.

6.8 (xiv): Eleventh Five-Year Plan (2007-12): The pushy targets set for the eleventh

plan included inter alia; achieving a growth rate target of 4 per cent per annum in

agricultural GDP, creation of 70 million new employment opportunities, lessening the

educated unemployment level to below 5 per cent, increasing real wage rate of

unskilled workers by 20 per cent and reducing the headcount ratio of consumption

poverty by 10 percentage points. The Government came up with many schemes in its

efforts to mitigate poverty and unemployment. Some of such programmes were

Rashtriya Krishi Vikas Yojana (RKVY) to achieve 4 per cent annual growth in

agriculture through development of Agriculture and its allied sectors, Rashtriya

Swasthya Bima Yojana (RSBY) for providing health insurance coverage to poor

(BPL), Domestic workers, MGNERGA workers, Rikshaw pullers, Building and other

construction workers, and many other categories as may be identified by the

respective states, Prime Minister’s Employment Generation Programme (PMEGP), a

credit-linked subsidy programme for creation of employment in both rural and urban

areas, Indira Gandhi National Widow Pension Scheme (IGNWPS) for widows who

are BPL, Indira Gandhi National Disabled Pension Scheme (IGNDPS) for BPL

persons with multiple and severe disabilities in the age group of 18 to 64 years who

are eligible for a grant of Rs 200 per month, National Family Benefit Scheme

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(NFBS), a grant of Rs. 5000 in case of death due to natural cause and Rs. 10000 in

case of accidental death of primary bread winner to be provided to bereaved

household, Indira Gandhi Matritva Sahayog Yojana (IGMSY) for providing a cash

incentive of Rs. 4,000 to women (19 years and above) for the first two live births,

Pradhan Mantri Adarsh Gram Yojana (PMAGY) For integrated development

of Schedule Caste majority villages in four states and National Rural Livelihood

Mission (NRLM) to organize rural poor into SHG groups and make them capable for

self-employment and thereby to develop better livelihood options for the poor.

6.8 (xv): Twelfth Five-Year Plan (2012-14 and then discontinued): The major

poverty alleviation programmes launched in the recent years include National Food

Security Act (NFSA) to provide subsidized food grains to approximately two thirds

of India's 1.2 billion people.

6.8 (xvi): Since 20148: The major programmes launched by the Central Government

to provide social and financial security to the rural people are Pradhan Mantri Jan

Dhan Yojana, a financial inclusion programme which allows a person to open new

bank account with zero balance too and he is given insurance coverage up to Rs.

1,00,000, Saansad Adarsh Gram Yojana, with a responsibility on each MP to develop

three villages by 2019, Micro Units Development and Refinance Agency Ltd.

(MUDRA) Bank to help individuals living in rural and interior parts of India to

establish and develop micro business, Pradhan Mantri Jeevan Jyoti Bima Yojana

(PMJJBY) to provide insurance coverage on the death of policy holder who is in the

age group of 18 to 50 years, Pradhan Mantri Suraksha Bima Yojana (PMSBY), an

accidental death and disability insurance scheme, especially for the rural people and

Atal Pension Yojana to bring pension benefits to people of the unorganized sector.

8 http://www.mapsofindia.com/my-india/society/what-is-pahal-and-how-is-it-going-to-benefit-lpg-

users, retrieved on 09-06-2015

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6.9: Details of some major programmes implemented in India to address

the problems of Unemployment and Poverty9, 10 & 11

6.9 (i): Rural Landless Employment Guarantee Programme (RLEGP)

The programme was launched by the Government of India on 15th August,

1983, with an objective of creating employment, constructing the productive projects

and improving the rural life. However, due to lack of resources the guarantee part of

the programme could not be implemented. The total expenditure was financed by the

central government. The resources were allotted to the States/Union territories on the

basis of determined standards, in which 50 per cent weightage was given to the

cultivators and marginal farmers on the basis of number and the rest of 50 per cent of

weightage was given based on the poverty. The wages given to the workers were in

accordance with the Minimum wages Act. Out of the total expenditure, 10 per cent

was earmarked for SC /ST beneficiaries. This programme also allocated funds for

social forestry, Millions wells Scheme and Indira Awas Yojana. The condition which

needed to be satisfied as per the norms of the programme was that the total

expenditure made on labour component should not be less than 50 per cent of the total

expenditure and involvement of contractors was completely prohibited. Since 1989-90

RLEGP was merged with Jawahar Rozgar Yojana (JRY).

6.9 (ii): National Food for Work Programme (NFWP)

The programme was launched on November 14, 2004 in 150 backward

districts of the country identified by the planning commission in consultation with the

Ministry of Rural Development and state governments. The objective of the

programme was to provide additional resources apart from the resources made

available through Sampoorna Grameen Rozgar Yojana to those districts. The

resources were made available for generation of supplementary wage employment

and to offer food security through creation of need based socio economic and

community assets. It was a cent per cent centrally sponsored scheme. Later on it was

subsumed under National Rural Employment Guarantee Programme since February

2nd, 2006.

9 Pratiyogita Darpan, General Studies on Indian Economy (2010) 10 GOI (2009) Annual Report: 2008-09. Ministry of Rural Development, Government of India, New

Delhi. 11 MoRD (2008) Poverty Eradication in India by 2015 – Rural Household Centered

Strategy. Ministry of Rural Development, Government of India, New Delhi.

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6.9 (iii): Sampoorna Grameen Rozgar Yojana (SGRY)

The schemes like Employment Assurance Scheme and the Jawahar Gram

Samridhi Yojana were merged into the Sampoorna Grameena Rozgar Yojana and the

scheme was started on September 25, 2001. The prime objective was to provide wage

employment and food security in rural areas. It also favoured creation of durable

community, social and economic assets and infrastructure development in these areas.

The scheme was self targeted to women, SC/ST beneficiaries and parents of children

withdrawn from hazardous occupation. The preference for wage employment was

given to people below poverty line. The annual outlay was Rs. 10,000 crores which

included 50 lakh tonnes of food grains. The cash component was shared between

centre and states in the ratio of 75:25. The payment on food grains was made directly

to Food Corporation of India at economic cost by the centre. However, the

transportation cost was needed to be borne by the States. The workers were paid

minimum wages, which was a mix of minimum 5 kgs of food grains and at least 25

per cent of wages in cash. The programme was implemented by all the tiers of

Panchayath Raj Institutions. Each level was an independent unit for creation of action

plan and its execution. The resources were distributed among Zilla panchayaths,

Taluk panchayaths and the Gram panchayats in the ratio of 20:30:50. This scheme

was merged in to MGNREGP in 2006.

6.9 (iv): Swarnajayanti Gram Swarojgar Yojana (SGSY)

Restructuring of poverty alleviation programmes was done by Ministry of

Rural Development and was nomenclatured as Swarnajayanti Gram Swarojgar

Yojana. The programme came into effect from 1st April 1999 replacing IRDP

(Integrated Rural Development Programme) and its allied schemes such as TRYSEM

(Training of Rural Youth for Self Employment), DWCRA (Development of Women

and Children in Rural Areas), Supply of Improved Toolkits to Rural Artisans

(SITRA), Ganga Kalyan Yojana (GKY) and Million Wells Scheme (MWS). The

objectives of the scheme included focused approach of poverty alleviation, capturing

benefits of group lending; combating of problems associated with multiple

programmes addressing same issues. The scheme aims at establishment of

microenterprises in rural areas of the country. Its main emphasis is on bringing the

assisted poor family above the poverty line in three years by providing them income

generating assets through a mix of bank credit and government subsidy. The monthly

income from the activity undertaken should not be less than Rs. 2,000, net of

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repayment to the bank. Subsidy under SGSY is a uniform of 30 per cent of the project

cost subject to maximum of Rs. 7,500. For SC/ST beneficiaries it is 50 per cent of the

project cost subject to a maximum limit of Rs.10,000. The scheme is implemented on

a cost sharing basis between centre and states in the proportion of 75:25 for non-

North-Eastern states and 90:10 for North-Eastern states. Safeguards for vulnerable

section of society in the form of reservation in the benefits i.e., 50 per cent for SC/ST

participants, 40 per cent for women and three per cent for disabled beneficiaries have

been provided. It covers the self employment aspects such as organization of the poor

into self help groups, training, credit, technology, infrastructure and marketing.

6.9 (v): Jawahar Rozgar Yojana (JRY)

Jawahar Rozgar Yojana was initiated in the terminal year of seventh five year

plan on 1st April 1989 on dissolution of National Rural Employment Programme

(NREP) and Rural Landless Employment Guarantee Programme (RLEGP). It was one

of the major wage employment programmes of the country which was implemented in

all villages through Panchayath Raj institutions. Durable rural infrastructure crucial

for development of village economy was created under this programme. From 1993-

94, JRY implementation took place in three streams. During the first stream general

works under JRY and sub-schemes such as Indira Awas Yojana and Million wells

schemes were implemented. During second stream JRY was implemented in 120

districts in an intensified way and hence was termed as Intensified JRY. Third steam

focused on more innovative projects. This scheme was replaced by Jawahar Gram

Samridhi Yojana (JGSY) in 1999.

6.9 (vi): Million Wells Scheme (MWS)

It was started as a sub plan of NREP/ RLEGP to provide open irrigation well

at free of cost to the poor belonging to SC and ST category, to marginal farmers,

small farmers and freed bonded labourers. From 1989 onwards this programme was

continued under JRY and during 1995-96, it was given an independent status.

Funding of this scheme was shared by the centre and state governments in the ratio of

80:20. It was merged with Swarna Jayanti Gram Swarojgar Yojana with effect from

1st April 1999.

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6.9 (vii): Intensified Jawhar Rozgar Yojana

This second stream of JRY was implemented in 120 backward districts of 12

states being badly affected with unemployment and under employment commencing

from 1993-94. Later in the year 1996 it was merged with Employment Assurance

Scheme. The works which generated ample employment opportunities such as

creation of small irrigation facility on barren lands, forestry and so on and other plans

which aimed at creation of rural infrastructure including primary educational

institutions were prioritized under this programme.

6.9 (viii): Innovative and Special Employment Scheme

Termed as the third stream of JRY special and modern projects were

implemented from 1993-94 onwards under this programme mainly to halt migration

of labour, to encourage women employment and development of productivity in the

desert areas. Schemes like Operation Black Board started in 1987 were included as

part of this programme to fulfill the objectives of JRY with construction of school

buildings and class rooms on priority basis.

6.9 (ix): Employment Assurance Scheme (EAS)

EAS was introduced on 2nd October 1993 in 1778 developmental blocks in

rural areas of 261 districts in the country. This scheme was further implemented in

697 development blocks under Drought Prone Area Programme (DPAP) and Desert

Development Programme (DDP). Later in 1995, it was extended to 2,475

developmental blocks of the country. In 1996, when Intensified JRY was merged with

EAS, it became operational in 3,206 blocks of the country. During 1997 it was

extended to 1,123 new blocks, thus covering all the 5448 rural blocks of the country.

The main objective of this scheme was to provide profitable employment for not less

than 100 days for desiring villagers between the age group of 18 to 60 years during

agricultural lean season to create economic infrastructure. Later on in April 1999, the

scheme was reorganized and was made the single wage employment programme and

was centrally sponsored on a cost sharing ratio of 75: 25. However, on September

25th, 2001 this scheme was merged with Sampoorna Gramin Rojgar Yojana (SGRY).

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6.9 (x): Indira Awaas Yojana (IAY)

IAY evolved as a programme of rural employment in 1980’s. The right to

housing is linked to right to living with dignity through this developmental

programme. The need for the fulfillment of rural housing is pivotal for the alleviation

of poverty in rural areas. It is considered as a flagship scheme of the Ministry of Rural

Development in providing housing facilities for rural families identified as below

poverty line.

Evolution of IAY

The previous developmental programmes such as National Rural Employment

Programme and Rural Landless Employment Guarantee Programme (1983) lacked

uniform policy pertinent to rural housing in various states. To be more explicit, some

of the states permitted only construction of new buildings, while some other states

permitted renovation or up-gradation of existing buildings. In some other cases, states

permitted RLEGP/ NREP to bear only a part of construction cost and insisted that

beneficiaries should bear the remaining cost component. To overcome these

anomalies, Government of India, in June 1985, earmarked a part of RLEGP funds for

construction of houses exclusively for SC/ST families and freed bonded labourers. As

a result, IAY was launched as a sub-scheme of RLEGP in 1985-86. Later, IAY was

merged with Jawahar Rozgar Yojana with effect from April 1989. Out of the JRY

funds, six per cent was allotted for the implementation of IAY. In 1993-94, coverage

of IAY was extended to non SC/ST BPL families in rural areas. The share of fund

from JRY allotted to IAY increased from 6 per cent to 10 per cent, subjected to

condition that the allocation from JRY should not exceed 4 per cent for non SC/STs

and tribal poor.

IAY as an Independent Scheme

In January 1996, IAY got delinked from JRY and started functioning as an

autonomous scheme. BPL beneficiaries under IAY during 2010 received a grant of

Rs. 45,000 for new construction in plain areas and Rs. 48,000 for new construction in

hilly or difficult areas. From 2013 onwards, the grants for IAY beneficiaries increased

from Rs.45,000 to Rs.70,000 for new constructions in plain areas and from Rs. 48,000

to Rs. 75000 in hilly or difficult areas after realizing the steep rise in the cost of

building materials and to ensure good quality and affordable housing facility. IAY

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beneficiaries can also avail loan up to Rs. 20,000 per housing unit at a differential

interest rate of four per cent per annum. For up-gradation of kutcha house a subsidy

amount of Rs. 15,000 is provided. IAY funding is shared in the ratio of 75: 25

respectively by central and state governments, except in North Eastern states, where

the ratio is 90:10. In case of union territories, cent per cent of the fund is provided by

central government.

Allocation of IAY Funds

Of the total funds, 75 per cent is earmarked to fulfill housing shortage (for

construction of new houses). Out of the total IAY beneficiaries, 60 per cent are

SC/STs , 3 per cent are physically challenged persons and 15 per cent are minorities.

IAY beneficiaries are accorded priority under Nirmal Bharat Abhiyan for

construction of toilets. An additional assistance of Rs. 9000 is provided for sanitary

latrines. During 2009-10, for IAY the central allocation was Rs. 8.4 lakhs and the

released amount was Rs. 8.6 lakhs. The utilized amount for the year 2009 was 13.29

lakhs. The target number of houses to be constructed for the year 2009 was 40.52

lakhs, of which 33.86 lakh houses were constructed.

The allocation for 2012 was Rs. 9.4 lakhs, and the released amount was Rs.

9.8 lakhs. The utilized amount was Rs. 12.9 lakhs. Of the targeted number of 27.26

lakh houses, 24.71 lakh houses were constructed. The transparency in programme

implementation is ensured through a website called Awasoft launched in July 2010

which captures complete and comprehensive data about IAY.

Convergence

IAY beneficiaries can derive benefits from Rajiv Gandhi Grameen

Vidyutikaran yojana, total sanitation campaign, Janashree and Aam Aadmi Bima

yojana and DRI scheme.

Bharat Nirman Programme

Rural housing is a vital component of Bharat Nirman Programme. It has been

formulated at two phases. In the first phase, 60 lakh houses were envisaged to be

constructed under IAY across the country in a time span of four years from 2005 to

2009. A total of 71.6 per cent of target houses were constructed with an expenditure

of Rs 21720 crores. In the second phase, 120 lakh house constructions were targeted

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within a time span of five years from 2009. In the span of first three years, 85.72 lakh

houses have been constructed.

Women Empowerment

IAY scheme aims at gender equity and women empowerment. Houses

constructed under IAY scheme has to be allotted in the name of women. In 2011-12,

out of 31.66 lakh houses constructed, 21.15 lakh houses had been sanctioned in the

name of women beneficiaries constituting about 65 per cent of the total.

Homestead Scheme

This scheme was launched with an aim to provide homestead sites for rural

BPL households included in the permanent waiting list of BPL households not having

house site. The amount of assistance granted is Rs. 20000 per family. The fund is

shared between central and state governments in equal proportion.

6.10: Antyodaya Anna Yojana (AAY)

AAY was launched in December 2000 for the benefit of poorest of the poor in

the country by providing them 35 Kgs of food grains per family per month at the rate

of Rs. 2 per Kg of wheat and Rs. 3 per Kg of rice. The States /Union Territories were

required to bear the distribution cost including margin to dealers, retailers as well as

transportation cost, thereby transferring entire food subsidy to consumers under the

scheme. By 2005-06 around 2.5 crore families were covered under the scheme.

6.11: Integrated Rural Development Programme (IRDP)

IRDP was launched as a major poverty eradication programme on 2nd October

1980. Though it was started initially in 2, 300 blocks, was subsequently extended all

over the country. The main aim of the programme was to bring all rural families

above poverty line by making them economically independent. Self-employment of

targeted group was promoted by providing them productive assets through financial

assistance, in the form of loans, by financial institutions including commercial banks,

regional rural banks and co-operative banks and subsidy by the government. The

subsidy component was shared by central and state governments in the proportion of

50:50. In 1999 IRDP was merged with Swarna Jayanti Gram Swarojgar Yojana

(SJGSY) in 1999.

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6.12: Development of Women and Children in Rural Areas (DWCRA)

DWCRA was started as a sub-plan of Integrated Rural Development

Programme (IRDP) in September 1982. The objective of the programme was to

provide self-employment opportunities to rural women belonging to below poverty

line families. By making a group of 10 to 15 participants, women were encouraged to

take up economic activities of their choices, depending upon the availability of local

resources. The scheme was merged with SJGSY in 1999.

6.13: Rashtriya Mahila Kosh (RMK)

RMK, the National Women Fund, an institution meant to facilitate credit

support to poor women for their socio-economic up-liftment, was set up under

Societies Registration Act, 1860 on March 30th, 1993. Financial support to women

was extended through NGOs, Women Development Corporations, State Government

agencies like DRDAs, Dairy Federations, Muncipal Councils and so on. RMK

provided loans to afore said organizations at 8 per cent and in turn these organizations

lent to women Self Help Groups / ultimate women beneficiaries at an interest rate

ranging from 8 per cent to 18 per cent. The loan provided by RMK was totally

security free and the organizations were also not insisted upon to provide any

collateral.

6.14: Jawahar Gram Samridhi Yojana (JGSY)

With a primary objective of creating demand driven community infrastructure

and assets to enable the rural poor to increase the opportunities for sustained

employment and a secondary objective of generation of wage employment for the

unemployed rural poor, JGSY was launched on April 1st, 1999. Village Panchayaths

were given the responsibility of implementing the scheme and Gram Sabhas were

empowered to approve the scheme works. Of the total fund allocation for the scheme,

22.5 per cent had to be earmarked for individual schemes for SC/ST beneficiaries and

3 per cent for creation of barrier free infrastructure for the disabled. DRDA/Zilla

Parishad was entrusted with the responsibility of co-ordination, supervision and

monitoring of the scheme. Subsequently JGSY was merged with Sampoorna Gramin

Rojgar Yojana w.e.f. from September 25th, 2001.

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6.15: Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP was a credit-linked subsidy programme launched by Ministry of

Micro, Small and Medium Enterprises (MSME) in 2008-09 for creation of

employment in both rural and urban areas of the country. It was launched by merging

Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation

Programme (REGP). The financial implication of the scheme to be implemented over

a period of 4 years was Rs. 4,485 crores and the expected employment generation was

37, 37,500. The beneficiaries, selected with the help of Gram Panchayaths and at

special awareness camps were provided a mandatory Entrepreneurship Development

Programme Training for 2 to 3 weeks. The maximum cost of the project was fixed at

Rs. 25 lakhs in manufacturing sector and Rs. 10 lakhs in business sector. The subsidy

component in the rural areas was 25 per cent for general category beneficiaries and 35

per cent for the special categories. Margin money component was 10 per cent in the

general category and 5 per cent in the special category.

6.16: National Social Assistance Programme (NSAP)

Government of India on 15th August 1995 included National Social Assistance

Programme ( NSAP) in central budget for 1995-96. It comprised of National Old Age

Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS), and National

Maternity Benefit Scheme (NMBS). These programmes provided social assistance for

aged, BPL households in case of death of primary breadwinner and for maternity

purpose. NMBS was transferred to Ministry of Health and Family Welfare in 2001

and was subsumed under Janani Suraksha Yojana.

From 1st April 2000, a new scheme named Annapurna scheme, aiming at

providing food security to meet requirements of senior citizens, though eligible but

not covered under NOAPS, was initiated. Under this scheme, 10 kilograms of food

grains per month is provided to the target group free of cost.

6.17: Indira Gandhi National Old Age Pension Scheme (IGNOAPS)

Government of India in 2007 modified the eligibility criteria for grant of old

age pension to persons aged 65 years and above belonging to BPL and renamed the

National Old Age pension Scheme as Indira Gandhi National Old Age Pension

Scheme. NOAPS covered 87.09 lakh beneficiaries up to 2006-07 and now under

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IGNOAPS, the number of beneficiaries rose to 223 lakhs by December 2012. The

upper age limit of 65 years was reduced to 60 years during 2011 and the amount of

pension was increased from Rs. 200 to Rs. 500 per month for those who are in the age

group of 80 years and above.

6.18: Indira Gandhi National Widow Pension Scheme (IGNWPS)

In February 2009, Government of India initiated pension programme for BPL

widows in the age group of 40 to 64 years with an amount of Rs. 200 per month per

beneficiary. Subsequently, the upper age limit was reduced from 64 years to 59 years.

Later in 2012, the upper age limit was increased to 79 years from 59 years and the

pension amount to Rs 300 per month per beneficiary. By December 2012, IGNWPS

covered around 42 lakh beneficiaries.

6.19: Indira Gandhi National Disabled Pension Scheme (IGNDPS)

BPL persons with multiple and severe disabilities in the age group of 18 to 64

years were eligible for a grant of Rs 200 per month. From 2012 onwards, the amount

has been increased to Rs. 300 per month per beneficiary and the upper age limit has

been relaxed to 79 years from 64 years. The scheme has covered eight lakh

beneficiaries.

6.20: National Family Benefit Scheme (NFBS)

Under this grant of Rs. 5000 in case of death due to natural cause and Rs.

10000 in case of accidental death of primary bread winner was provided to bereaved

household. The beneficiaries had to be of the age group of 18 to 64 years. From 2012

onwards, the upper age limit has been reduced to 59 years and the amount has been

increased to Rs. 20000. As on December 2012, 2.91 lakh BPL families had been

benefited from the scheme.

6.21: Caring for the Differently Abled Persons

Poverty is the precursor and consequence of disability. Poor people with

disabilities are caught in vicious circle of poverty and disability, each being cause and

consequence of other. In India, 2.13 per cent (2.19 crores) of persons are suffering

from disability. Out of 2.19 crores, 1.26 crores are male and remaining 0.93 crores are

female. Of the total disabled persons in the country 75 per cent live in rural areas, 49

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per cent of them are literate and 34 per cent are employed. Government of India

recognizes disabled persons as a valuable human resource and hence has taken

initiatives to bring them to mainstream in the society. The Government has tailored

several developmental programmes which focus on their up-liftment socially and

economically in the society. The programmes concentrating on disabled persons are

as under

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

MGNREGA is a demand driven scheme and hence, a separate earmarking of

employment / resources has not been made. The persons with disabilities defined

according to Equal opportunities, protection of rights and full participation Act, 1995

are considered as special category of vulnerable persons for purposes of MGNREGA.

The people with the severity of disability of about 40 per cent and above are

considered under MGNREGP. Persons with disability defined according to National

trust for welfare of person with autism cerebral palsy, mental retardation and multiple

disabilities Act, 1999 are also considered for employment. By December 2012, 3.1

lakh persons with such disabilities were employed under MGNREGP.

National Rural Livelihood Mission (NRLM)

This scheme ensures 3 per cent of the total households covered shall have

persons with disabilities. NRLM advised states to follow participatory vulnerability

assessment process while undertaking social mobilization at community level. About

1,742 swarojgaries with disabilities had been assisted under Swarnajayanthi gram

swarozgar Yojana / National Rural livelihood Mission in 2012-13.

Indira Awas Yojana (IAY)

Under this programme about three per cent of the funds are earmarked for

construction of houses for physically and mentally challenged persons. In 2012, the

total number of houses sanctioned for construction was 22.15 lakhs, of which 37,274

houses (1.68 per cent) were allotted to disabled persons.

National Social Assistance Programme (NSAP)

IGNDPS under NSAP for BPL persons with multiple disabilities in the age

group of 18 to 79 years provides pension grant of Rs.300 per month per beneficiary.

By December 2012, eight lakh beneficiaries had been covered under this programme.

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6.22: Pradhan Mantri Gram Sadak Yojana (PMGSY)

The key component for rural development is the rural connectivity which

enables access to economic and social services and thereby increases agricultural

income and productive employment avenues. Government of India launched a cent

per cent centrally sponsored PMGSY on 25th December 2000. The main objective of

the yojana is the construction of all-weather road which have culverts and cross

drainage structures operable round the year for unconnected habitations in rural areas

with population of 500 persons and above in plains and 250 persons and above in

hilly areas, desert areas and tribal areas. The yojana will also permit up-gradation of

existing roads in districts having eligible habitation with designated size of

population. It prioritizes rural core network routes carrying more traffic.

Unit of Operation of PMGSY

Unit of operation of this programme is a habitation and not the revenue village

or panchayath. Habitation is a cluster of people living in an area/location which does

not change over time. The common examples of such habitation are Desam, Dhanis,

Tolas, Majras, Hamlets and so on. The unconnected habitations are ones with

population of designated size, located at a distance of at least 500 metres and above

from an all weather connecting road. For those blocks which borders international

boundary in hilly states, all the habitation within a path distance of 10 kilometres may

be treated as a cluster.

Concept of Core network, through routes and link routes

The road work taken up under Pradhan Mantri Gram Sadak Yojana should be

the part of core network. The core network refers to a network of through routes and

link routes. Through routes collect traffic from several link roads or a long chain of

habitation and lead it to a marketing outlet /centre. The link routes connect single

habitations or group of habitations to through routes.

Prioritization and its order

Priority will be accorded based on the size of population the proposed road

would serve. First preference is given to those roads which connect a population size

of 1000 and above in a habitation. These through routes are construed as WBM roads.

Second preference is given to those through routes connecting a habitation with

population size ranging from 500 to 999. These through routes are construed as fair

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weather through routes. The third preference is given for those routes which connect a

population size of 250 to 499 in a habitation.

Scope of PMGSY

The yojana is restricted only to rural areas and to rural roads also called as

other district roads or village roads. Other district roads or village roads serve rural

production centres and provide them with outlet to market centres. Government

allocates 80 per cent of the budget for new rural connectivity and remaining 20 per

cent for up-gradation of existing connectivity / routes.

Action plan was prepared for connecting 66,802 habitations with 1,46,185 km

of all weather roads. The action plan also envisaged up-gradation of 1,94,130 km of

the existing rural road network. It was estimated that an investment of Rs. 48,000

crores is required for achieving the targets under Bharat Nirman. During the first two

years of 11th five year plan, an expenditure of Rs. 25,780 crores had been incurred on

rural roads and 93,636 Km long road network had been completed.

6.23: Mahatma Gandhi National Rural Employment Guarantee Act

(MGNREGA)

National Rural Employment Guarantee Act was notified on September 7th,

2005. This act laid the foundation for a new scheme called National Rural

Employment Guarantee Scheme (NREGS) which was launched on February 2nd,

2006. The programmes, inter alia Sampoorna Grameen Rozgar Yojana and National

Food for Work Programme were subsumed in to NREGS and was initiated and

implemented by the Ministry of Rural Development, Government of India. It is

considered as flagship scheme of the government which directly touches lives of the

poor and promotes inclusive growth.

The main objective of NREGS is to enhance livelihood security in rural areas

by providing 100 days of guaranteed wage employment every financial year to every

household whose adult members volunteer to do unskilled manual work.

The act was implemented in phased manner. In phase I (2006-07), the scheme

was introduced in 200 districts of the country. Later on it was extended to another 330

districts in phase II during 2007-08. The coverage was extended to all rural districts of

the country in 2008-09. At present, 619 districts are covered under NREGS. During

2008-09, 4.51 crore households were provided employment opportunities. It is the

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first ever law which guarantees wage employment at an unprecedented scale at the

international level. The primary objective is to augment wage employment. The

auxiliary objective is to strengthen natural resource management through works which

addresses cause of chronic poverty such as drought, deforestation and soil erosion.

All the poverty alleviation and rural development programmes or schemes that

have been envisaged, formulated, implemented and evaluated in the country have

borne mixed bag of results (proportion of population living below poverty line has

halved after the onset of planning era, but, absolute number of people suffering from

the pangs of poverty and hunger have grown during the same period). Partial success

in fulfilling the objectives have kept the faith in such programmes alive, while

allegations of corruption, only 15 per cent of the money spent on such programmes

reaching the intended beneficiaries (as quoted by the former Prime Minister late Sri

Rajiv Gandhi in a public address at Mumbai) have weakened the cases of such large

scale programmes. Duplication of the programmes in terms of their objectives, target

beneficiaries, implementing agencies has also added to the woes of poor execution of

the schemes. Against this backdrop, MGNREGS, the first programme to provide legal

right to employment for the rural working class beset with problems of under

employment, disguised unemployment, poverty, hunger and low standard of living,

was launched in 2006 with a promise to provide employment to rural people on a

sustainable basis, to ensure livelihood security to them and infuse transparency in its

administration.

Table-6.6: Performance of MGNREGS: 2006-12

Sl.

No. Particulars

2006-07

(200

Districts)

2007-08

(330

Districts)

2009-10

(All

Districts

Hereon)

2009-10 2010-11 2011-12

1 Households Employed

(crore) 2.10 3.39 4.51 5.26 5.49 4.99

2 Person-days of Employment

generated (crore) 90.5 143.59 216.32 283.59 257.15 211.41

3

Work Provided per year to

Households who worked

(days)

43 42 48 54 47 42

4 Total Funds Available

( Rs. crore) 12,073.55 19,305.81 37,397.06 49,579.19 54,172.14 43,273.58

5 Expenditure

(Rs. crore) 8,823.35 15,856.89 27,250.10 37,905.23 39,377.27 37,548.79

6 Average Wage per day (Rs.) 65 75 84 90 100 117

7 Total Works taken up (lakhs) 8.35 17.88 27.75 46.17 50.99 74.13

8 Works completed (lakhs) 3.87 8.22 12.14 22.59 25.90 15.01 Source: http://www.planningcommission.nic.in/plans/planrel/fiveyr/12th/pdf/12fyp_vol2.pdf retrieved on

08-09-2014 page 287

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Table 6.6 shows that MGNREGS, in its six years of existence between 2006

and 2012, has generated 1202.56 crore person days of employment, by covering on an

average 4.29 crore rural households, spending Rs. 1,66,761.63 crore on 225.27 lakh

works. The average days of employment provided per household per year was 46.

Though the scheme was not successful in eradicating poverty, it was able to lessen the

misery for the participating households. The impact of MGNREGA on the rural

economy in Karnataka was analysed during the course of this study and the results are

presented in Chapter 7.

6.24: Rural Development through Individual Initiatives

Responsibility of rural development need not always rest on the Government

whether Central, State or at the local level. Even the individuals at the village level

can weave miracles in generating employment, driving away social evils, lessening

the tribulations of poverty and ensuring community welfare with social justice. Two

such success stories from Indian villages are presented below.

6.25: Marvel of Rural Transformation in Ralegan Siddhi, Maharashtra by

Padma Bhushan Anna Baburao Hazare12

Kisan Baburao Hazare, fondly called as “Anna Hazare, hails from Ralegan

Siddhi, a village in Parner Taluka of Ahmednagar district, Maharashtra. Forced to

discontinue formal education while studying in seventh standard, he started his career

as a flower vendor in Mumbai. The spirit of fighting for social cause was evident in

him in his younger days as he was part of the group that fought the thugs patronized

by the landlords and prevented them from intimidating the poor out of their shelters.

Entering the Indian military service, initially he served as a truck driver and later on

was attested as a soldier. He was the lone survivor of an aerial attack at Khem Karan

during the Indo-Pak war of 1965, while he was driving a truck and was also the lone

survivor when the Naga rebels attacked his post while serving in Nagaland. Those

moments of life and death and Swami Vivekanada’s booklet, “Call to the youth for

nation building” transformed him in to a Gandhian dedicating his life for the cause of

nation in general and upliftment of his misery ridden village in particular.

When he returned to his native village, after retiring from Indian army, it was

ill with acute poverty, a frail ecosystem, neglect, deprivation and hopelessness. The

12 http://en.wikipedia.org/wiki/Anna_Hazare, retrieved on 29-05-2015

183

villagers possessed land, but crop cultivation was tedious and least remunerative due

to rocky terrain. Unscrupulous tree felling had left the land eroded and frequent

droughts were experienced. Water scarcity and unsanitary conditions plagued the

village. Illicit liquor manufacturing and trading had become one of the major sources

of income for many. Needless to say, quite a number of villagers had become alcohol

addicts. A large part of the earnings was spent on paying interest for the loan taken

from moneylenders. The village was deprived of education and employment

opportunities. As a result crime and domestic violence had become a routine affair.

Amidst this cacophony Anna Hazare unfurled his dream of and plan of village

revival. To begin with he took up a common cause, dear to all, that is, renovation of

village temple. The poor villagers’ contribution flowed in the form of Shramdaan

(voluntary work). The youths, organized by him in to a Tarun Mandal (Youth

Association), joined hands with him in his endeavor of village development.

6.25 (i): Prohibition of Alcohol

A resolution to close down all the illegal liquor manufacturing units in the

village, numbering more than 30, and ban alcohol sale and use in the village, was

taken in a meeting held in the village temple and hence became a religious

commitment for the villagers. Most of the liquor brewing units was voluntarily shut-

down and those which refused to comply with the collective decision were

demolished by the members of Tarun Mandal. The alcoholics were punished to save

their families from inflicting self-destruction. Naturally, Anna Hazare’s efforts

received unconditional support from the village women folk, who bore the brunt of

alcoholism and domestic violence. Similar fate awaited sale of tobacco, beedi and

cigarettes in the village. As a result of Anna Hazare’s appeal to the State Government,

Bombay Prohibition Act, 1949 was amended to ensure that liquor prohibition would

come in to force if 25% of the women in the village demanded it.

6.25 (ii): Establishment of Grain Bank

With the aim of ensuring food security to farmers at the time of drought and

crop failure, Anna Hazare started the grain bank in the village temple. The farmers

have to donate food grains when they have surplus and borrow grains when they are

in need. Interest on borrowed grain has to be paid in kind. With this arrangement,

thereafter, the villagers never went hungry due to shortage of food grains nor were

they forced to borrow money to buy food. It also helped the farmers to desist from

resorting to distress sale of crop produce at lower prices immediately after harvest.

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6.25(iii): Initiating Watershed Development Programme

Ralegan Siddhi surrounded by hillocks provided an ideal location for

undertaking watershed development activities. Villagers agreed to construct a

watershed embankment. Impounding of water improved water percolation. Augment

in water table solved the problem of water scarcity and increased irrigation potential.

To make the best use of available water, cultivation of water-intensive crops like

paddy and sugarcane were banned and cultivation of low water requiring crops like

pulses, oilseeds and some cash crops, adoption of high yielding varieties were

encouraged. As a result within a short time span area under irrigation in Ralegan

Siddhi went up from 70 acres to 2500 acres.

6.25 (iv): Work on Education Front

When Anna Hazare initiated his village development programme, the village

had only a primary school and the literacy rate in the village was a mere 30.43 per

cent. Boys had to move to nearby towns for further education and the girls were

forced to be contended with primary education. To increase the literacy rate and

improve the education level, the villagers formed the Sant Yadavbaba Shikshan

Prasarak Mandal, under the leadership of Anna Hazare and started a pre-school and a

High School in the village.

6.25(v): Institutionalizing Gram Sabhas

A Gram Sabha is an assembly of all village adults, and not just the few elected

representatives in the Gram Panchayath. Gram Sabhas are the important democratic

institutions for collective decision making in India as advocated by the Gandhian

Philosophy. It was on Anna Hazare’s insistence and campaigning that Gram Sabha

Act was amended in Maharashtra State and now it is mandatory on the part of gram

panchayaths to obtain sanction from the Gram Sabha preior to deciding the

expenditure on development works in the village.

6.25(vi): Removal of Untouchability

Anna Hazare’s moral leadership motivated the villagers to abolish

untouchability and caste descrimination in Ralegan Siddhi. Dalits have become

integral part of the social and economic life of the village. In the community marriage

programmes organized in the village marriages of Dalits and that of others are held

together. Through shramdaan upper caste villagers have built houses for dalits and

have helped them in repaying their loans.

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Today Ralegan Sidhi has become a role model for rural development and Anna

Hazare has shown to all stakeholders in the economic development process, as to

what collective action by the villagers themselves, under able and upright leadership

can achieve in the realm of village transformation in all the social and economic

fronts. Success of this colossal effort is worthy of emulation all over rural India.

6.26: Popatrao Bapuji Pawar’s vision and toil fetches National Productivity

Award to Hiware Bazar Village, Maharashtra13&14

Hiware Bazar is a village located in Nagar Taluka of Ahmednagar district in

Maharashtra State, now noted for its irrigation system and water conservation

program which helped the villagers to fight drought and drinking water problem.

Similar to the social and economic backwardness of Ralegan Sidhi village was

experiencing before Anna Sahab Hazare initiated reform measures and developmental

activities in that village, Hiware Bazar was also a victim of social evils like alcohol

addiction (there were 22 liquor shops in the village), gambling and conflicts among

villagers, high crime rate were the major roadblocks for the village development. To

add to this agony agriculture and allied activities were not profitable. To overcome

this distress there was widespread migration of families. The bad reputation the

village had gained over the years had kept away the government administrative setup

and the deputed school teachers from serving the village.

6.26(i): Commencement of the Development Programme

A group of youngsters from the village under the leadership of Popat Pawar

decided to usher in a new dawn in the life of the village. He fought the local election

and was elected as the village sarpanch in 1990. During his tenure as the village chief

he initiated several programmes which led to overall development of the village. He

began with the task of improving village’s moral environment by closing down the

illicit liquor retail outlets and creating a favourable atmosphere for school education.

Then Popat Ram unrolled the works of setting right the rural infrastructure. The

village’s percolation tank was repaired. Farmers were assisted to secure bank loans to

start rainwater harvesting. With two years’ painful struggle the reluctant Forest

Department was persuaded to launch Joint Forest Management (JFM) programme in

the village and 70 hectares of forest land was developed. Total geographical area of

the village (976 hectares, with about 500 hectares of arable land) is divided in to three

13 http://www.rainwaterharvesting.org/People/..%5CRural%5CHirve.htm, retrieved on 29-05-2015 14 http://en.wikipedia.org/wiki/Hiware_Bazar, retrieved on 09-06-2015

186

micro watersheds. Under JFM and Employment Guarantee Scheme (EGS) water and

soil conservation works were taken up in the upper reaches. The village is maintaining

a patch of land where 100 different species of plants are preserved.

6.26(ii): Adarsh Gaon Yojana

Under the Adarsh Gaon Yojana Hiware Bazar was selected as the village to be

developed as a model village in the taluka. About 52 earthen bunds, two percolation

tanks, 33 loose stone bunds and nine check dams were constructed under this

programme. High water demanding crops like sugarcane and banana were avoided.

Villagers adopted drip-irrigation system to conserve soil and water. Floriculture and

vegetable production were taken up along with cultivation of jowar, bajra, wheat,

onion, and potato. The gross harvest rose from a mere 100 tonnes in early 1990s to

6000 tonnes in 2004. Dairy enterprise was expanded and milk production saw a

tenfold increase from 150 litres per day in mid-1990s to 4000 litres per day by 2010.

The average income of the village increased twenty-fold. Number of families below

poverty decreased from 168 in 1995 to only 3 families by 2010. At the National

Ground Water Congress held in New Delhi in 2007, Hiware Bazar was bestowed with

“National Water Award” by the Government of India.

6.26(iii): Change in Attitude

As the village development programmes initiated by Popat pawar started

bearing fruit, a sea change in the attitude of people came about. About 35 families

which had migrated to Pune and Mumbai returned to the village. Villagers started

celebrating ‘Ganapathy Utsava’ as village festival instead of keeping an idol in each

and every corner of the village. The money saved from this act of ‘oneness’ was

donated to the wife of a Kargil martyr living in a neighbouring village. ‘Samodayik

Kheti’ principle (two or three families working collectively in each others’ farm) by

the farmers has not only solved the problem of labour scarcity, but also has created an

environment of social cohesion.

Hiware Bazar which was earlier shunned by outsiders and treated as a

punishment transfer place is today a village frequently visited by people seeking

guidance in the process of rural development and boasts of more than 60 millionaires

in the village with 235 families. The success story of Hiware Bazar has shown to the

world that right leadership with support from committed villagers can transform a

rural area beset with hundreds of problems in to a model worthy of emulation

elsewhere.