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
150
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
158
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.