DIPLOMA IN RURAL DEVELOPMENT DRD-02 Rural Development in India Block 4 RURAL DEVELOPMENT PROGRAMMES IN INDIA Unit – 1 IRDP, TRYSEM, MGNREGA, SGSY, Indira Awas Yojana (IAY), Livelihood Mission, Health Mission, Self Help Group Movement, Pradhan Mantri Gram Sadak Yojana (PMGSY) Unit – 2 Watershed Management Programmes and Sustainability Odisha State Open University Page 1 EXPERT COMMITTEE Sri Jagadananda (Chairman) Ex-State Information Commissioner, Odisha Mentor and co – founder, CYSD Bhubaneswar, Odisha Dr. Sruti Mohapatra (Member) Chief Executive, State Disability Information and Resource Centre Bhubaneswar, Odisha Dr. Dharmabrata Mohapatra (Member) Head, PG Dept. of Rural Development, Ravenshaw University, Cuttack, Odisha Dr. M.G.Bage (Member) Associate Professor, Dept. of Rural Development, Utkal University, Bhubaneswar, Odisha Ms. Dipti Ray (Member) Assistant Professor, Dept. of Rural Management, NISWASS, Bhubaneswar, Odisha Dr. Rabindra Garada (Special Invitee) Associate Professor, Dept. of Rural Development, Utkal University, Bhubaneswar, Odisha Sri S T Rehman (Convenor) Academic Consultant (Rural Development), Odisha State Open University, Sambalpur, Odisha DIPLOMA IN RURAL DEVELOPMENT Course Writer: Course Editor: Ms. Sangita Panda S T Rehman Faculty Academic Consultant Ravenshaw University Odisha State Open University Cuttack (Odisha) Sambalpur (Odisha) Odisha State Open University Page 2 Unit-1 IRDP, TRYSEM, MGNREGA, SGSY, Indira Awas Yojana (IAY), Livelihood Mission, Health Mission, Self Help Group Movement, Pradhan Mantri Gram Sadak Yojana (PMGSY) Learning Objectives: After completion of this unit, you should be able to:  Explain the concept of each development programmes of rural India  Differentiate the types of programmes as per the indicators of development  Justify the consequences and modifications of various schemes and programmes Structure: 1.1 Introduction 1.2 Integrated Rural Development Programmes (IRDP) 1.3 Training Rural Youth for Self Employment (TRYSEM) 1.4 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 1.5 Swarnajayanti Gram Swarozgar Yojana (SGSY) 1.6 Indira Awaas Yojana (IAY) 1.7 National Rural Livelihoods Mission (NRLM) / Aajeevika 1.8 Health Mission – NRHM 1.9 Self Help Groups (SHGs) 1.10 Pradhan Mantri Gram Sadak Yojana (PMGSY) 1.11 Let Us Sum Up 1.12 Key Words 1.13 References 1.1 Introduction: Rural development programmes in India was started well before independence after 1858 when British Government took the governance of India. Even in ancient period also, top priorities was given to development of socio-economic condition of the people. Odisha State Open University Page 3 Ancient Indian philosophy knows the relationship between human resources and economic development. In their daily prayers in Atharva Veda, Rig Veda etc. they gave the message "Let its live together, work together, acquire knowledge together, our education becomes powerful and dynamic etc." In India, Kautilya provides a systematic treatment of management of human beings as early as 4th century B.C. in his treatise "Arthashastra". Kautilya provides an excellent discussion on staffing and personal management embracing job descriptions, qualifications for jobs, selection procedure, executive development, incentive systems and performance evaluation. Rural Development Programmes during British Period: Several famines and food scarcities occurred in India during the period of 1860 and 1870 and again between 1890 and 1900. During the period, the Government officials apprehended food grains and controlled the market to ensure their distribution to the needy people of rural areas. This humanitarian outlook towards the rural needy indigenous people may be termed as the beginning of the rural development in India. Lord Curzon, Viceroy of India (1901-05), established a research institute, which is currently known as Indian Agricultural Research Institute (New Delhi), at Pusa in Bihar. Indian Agricultural Services was started in the year 1906. The non-co-operation resolution passed by the Congress in Calcutta session in September 1920 was a clear cut approach to rural development by recommending hand spinning in every house and hand weaving as a part of weavers, who had left their profession due to lack of raw materials and other essential resources. Thereafter, Mahatma Gandhi developed a comprehensive programme for development which included the promotion of khadi and village industries, basic and adult education, and eradication of poverty inequality, upliftment of women and propagation of national integration. Sevagram and Wardha became the centre for turning these into action through country wide army volunteers in rural reconstruction. In 1921, Mr. Spencer Hatch (YMCA) started Martha dam Experiment in South Travancore for complete upward development for more abundant life for rural development, spiritually, mentally, physically, socially and economically deprived classes. Martha dam Rural Reconstruction Centre worked on the philosophy of Self- Help and the present concept of formulation of self-help groups as a Credit Delivery Odisha State Open University Page 4 System for the poor is derived from that philosophy. Mr. F. L. Brayne, the then Deputy Commissioner of Gurgaon District, started village upliftment movement in the year 1920 called Gurgaon scheme. The scheme claimed to deal with the whole life and activities of the peasants and his family and to present a complete remedy from the terrible conditions in which he lived. In Baroda, a rural reconstruction programme was started state in 1932. A rural reconstruction centre was set up for economic as well as for educational and moral programmes. Firka Development Scheme of Madras was started in 1946 in 34 Firkas. In the scheme an attempt was made to encourage local leadership and to install into them a philosophy of self-help. Developmental Programmes during Planned Era: The alleviation of poverty and unemployment continues to remain a major area concern of successive five years plan in the post independent scenario. The launching of Community Development Programmes (CDP) by the first president of India, Dr. Rajendra Prasad on October 2, 1952 was a land mark in the history of India, which ushered in an era of development with the participation of the people. Before the launch of Community Development Programmes, isolated schemes at Nilokheri and Faridabad were under the way. Etowah Pilot Project was also going on since 1948.Top priorities were given to 'agriculture'. Other programmes include communication, health, sanitation, housing, education, employment, children welfare and small and cottage industry. 1.2 Integrated Rural Development Programme (IRDP): Poverty eradication has been one of the major objectives of planned development. The strategy and policy of direct attack on poverty by way of target approach for rural poor came into being in the Fourth Five year plan. With the main objective of improving the asset base of the poor and to involve the poor in the production/income generation processes of the economy. Integrated Rural Development Programme (IRDP) was initiated. IRDP was taken up initially in 2300 blocks and has been extended to all the blocks of the country since 2nd October, 1980. Odisha State Open University Page 5 Programme Implementation: IRDP aims at providing income generating assets and self-employment opportunities for the rural poor. Assistance under IRDP is given to a target group of rural poor belonging to families Below Poverty Line (BPL), in the form of subsidy by the Government and term credit by financial institutions. Criteria for Allocation of Funds to the States: Allocation of funds to states is being made by the central government in proportion to the poverty levels in each state on the basis of official estimates of the Planning Commission. These official estimates of poverty are arrived at by the Planning Commission based on the National Sample Survey Organisation, Consumer Expenditure Surveys conducted every five years. Devolution of funds to districts is based on a formula evolved by the respective state governments. Further devolution to the blocks is done by the governing body of the DRDA based on the criteria approved by it. Target Group: The target group consists of families of small and marginal farmers, agricultural labourers and rural artisans etc. Whose per capita monthly expenditure does not exceed the poverty line (ranging been Rs. 216.65 and Rs. 327.48 for different States/UTs) as estimated by the Planning Commission. Currently, the Below Poverty Line census is being carried out in all the states and the revised poverty line will be used to categorise BPL families. Within the target group, special safeguards have been provided by reservation of: • 50% benefits for SCs/STs; • 40% for women and; • 3% for physically handicapped persons; • Priority is also to be given to women headed households, assignees of surplus land, freed bonded labourers and acceptors of small family norm. However, this should not in Odisha State Open University Page 6 any way adversely affect the safeguards provided for SCs/STs, women and physically handicapped persons; • The flow of financial assistance (subsidy + credit) to the categories described above should be commensurate with the percentage of the physical coverage. Pattern of Subsidy: Pattern of subsidy is: • 25% for small farmers; • 33 —1% for marginal farmers, agricultural labourers, and rural artisans; and • 50% for SCs/STs beneficiaries and physically handicapped persons. The ceiling on subsidy in respect of individuals is: • Rs. 4,000 in normal areas; • Rs. 5,000 in DPAP/DDP areas; • Rs. 6,000 in SC/ST families and physically handicapped persons; • Rs. 7,500 or 50% of the project cost, whichever is less for unemployed educated youth; and • For activities involving at least 5 persons, the ceiling has been fixed at Rs. 1.25 lakhs or 50% of the project cost, whichever is less. Implementing Agency: District Rural Development Agency / Zilla Parishad is the implementing agency for this programme. The Government Body at the district level provides guidance and directions to DRDAs. It includes local MPs, MLAs, and Chairman of Zilla Parishad, Heads of District Development Departments and representative of SCs/STs, women and NGOs. At the grassroots level, the programme is carried out by Block Development Officer, and the other block staff with the help of the village level functionaries. Funding Pattern and Release of Funds: Odisha State Open University Page 7 IRDP is financed on a 50:50 cost-sharing by the Centre as well as by the states. The funds are released differently to the DRDAs. BPL Census and Selection of Beneficiaries: In order to target assistance to poor families, a BPL census is conducted at the beginning of each plan period by the states, at the behest of Ministry of Rural Areas and Employment. The Gram Sabha is involved in the identification and selection of beneficiaries under IRDP from the initial stage itself. After the survey census is completed, the same is verified in the. Gram Sabha and once it is approved, such a list is drawn up. The same is sent to the Panchayat samitis/ blocks and DRDAs for record. Identification of Thrust Areas and Selection of Projects for Beneficiaries: The project profiles to be taken up for beneficiaries, take into account the beneficiary's needs and includes and the local resource endowment. The investment target for the year, the choice of the BPL family for the activity, forward and backward linkages and infrastructural support, etc, are also taken into account while making a project profile. The activities can be taken up in primary sectors, secondary sectors and tertiary sectors. Credit Target: At the beginning of the year target for credit for RDI at the all-India level as well as the state level are fixed. This is done in consultation with the RBI, NABARD and the participating banks. Credit should normally flow in the ratio 2:1 to subsidy. However, the effort is to see that credit-subsidy ratio exceed 2:1. The ceiling limit for collateral free loans is Rs. 50,000. Acquisition of Assets and Cash Disbursement Scheme: The assets procured should be of standard quality at economic prices and to the satisfaction of the beneficiary. Beneficiaries under IRDP are generally given assets and not the cash. However, sometimes the quality or the price is not to the satisfaction of beneficiaries for the purchase of quality assets and to minimize the leakage in its disbursement if the assistance is given to the beneficiary in cash. Experience has shown that reliance can be Odisha State Open University Page 8 placed on the good sense of the beneficiaries in purchasing of assets subject to some safe-guards. Disbursement of money in cash to a beneficiary improves his/her bargaining power and has the added advantage of reducing delays and other malpracticed precedent in disbursement in kind. Hence, with effect from the year 1991- 92 it was decided to permit disbursement of assistance in cash under the Cash Disbursement Scheme with a view to giving greater choice to beneficiaries in purchasing assets. Initially it was implemented in 50% of the blocks. With effect from the year 1996-97, it is extended to all the blocks of the country. Release of Subsidy (Back-end Subsidy): Earlier, simultaneously with the disbursement of loan by the bank, the subsidy amount was debited from the DRDA account and credited to the account of the beneficiaries. Thus is effect, the beneficiary was burdened only with the bank credit portion. This adjustment of subsidy at the beginning itself was termed as front-end subsidy. It was, however found that the beneficiaries were repaying the loan immediately, thereby availing of amount of the subsidy. This in effect meant misuse of subsidy. To make beneficiary utilise the loan for sustainable income generation, the system of front-end subsidy was stopped. The subsidy would be adjusted only in the last few instalments. At the sometime a lock-in period for subsidy has also been stipulated and the subsidy would be adjusted only in the last few instalments and it will not be allowed in the event of the repayment made before the stipulated lock-in period. The loan document would be taken by the bank for the full project cost and it would be inter-alia stipulated that in case of misutilisation of the loan, the entire amount of subsidy would be forfeited. Such forfeited amount of subsidy will be available to the bank for adjustment against the borrower's dues. Why Credit Plan: A new project of Family Credit Plan (FCP) has been launched in the year 1994-95. It is in operation in 316 selected districts. Under this scheme, more than a single member of the family can be given assistance, subject to the normal subsidy limits for the family. The banks mobilize higher credit for families selected under this scheme. The current levels of investment under FCP have crossed Rs. 26,110 at the all-India level. Odisha State Open University Page 9 Monitoring and Supervision: IRDP is being monitored from the central level down to grassroots level. At the state level, a State Level Coordination Committee (SLCC) monitors and reviews the implementation of the scheme and lays down policy guidelines. A High Level Coordination Committee on credit support to IRDP also functions at the central level to monitor and review all aspects relating to credit linkage for IRDP. The progress under IRDP is being monitored on a monthly, quarterly, half yearly and annual basis through reports returns submitted by DRDAs/States. The shortfall, if any, in the performance under IRDP has been brought from time to the notice of all concerned states/UTs for corrective measures. Over and above, the implementation of the Programme is monitored through the annual Project Directors' Workshop and periodic meetings with the State secretaries. At the Block/DRDA level monitoring is done through field visits and physical verification of assets for which an inspection schedule for the district and block functionaries has been laid down. 1.3 TRYSEM (Training Rural Youth for Self Employment): Women and the youth constitute a significant proportion of the productive work force of the country. IRDP is essentially a self-employment programme. Therefore it is logistically reasonable to focus on the youth, both men and women in the age group of 15 - 35, and equip them with necessary skills and entrepreneurship capabilities. Keeping this in view, along with IRDP, as its special component, TRYSEM was introduced in 1979. Similarly, in the case of women, though IRDP was supposed to cover 40 per cent of the total beneficiaries, it was felt that if they were organized in groups, they would be more effective in income generating self-employment enterprises. It is on this premise that DWCRA was launched in 1983. Let us now have a look at the objectives of TRYSEM, its strategy, the organizational framework and the linkages. Origin and Objectives of TRYSEM: The rural unemployed youth are categorized into four groups: (i) Literate and Skilled, (ii) Literate and Unskilled, (iii) Illiterate but Skilled and (iv) Illiterate and Unskilled. While the fourth category was mainly dependent on wage employment, the other three Odisha State Open University Page 10