Rural Development in First Five Year Plan

Chapter 15:

COMMUNITY DEVELOPMENT AND RURAL EXTENSION

I. Basic principles Community Development is the method and Rural Extension the agency through which the Five Year Plan seeks to initiate a process of transformation of the social and economic life of the villages. The Plan provides Rs. 90 crores for community projects and proposes the establishment over a period of about ten years of a network of extension workers throughout the country. The object of this chapter is to indicate briefly the significance of the two programmes and their place in national reconstruction. 2. For some three decades rural development work has been undertaken by different branches of the administration in the States. Until a few years ago, the expenditure on development was meagre and rural development work was thought of largely in terms of particular items of improvement in village life and in agricultural practice, and special attention was given, for instance, to the number of wells sunk or repaired, for the supply of irrigation or drinking water, the supply of seeds or fertilisers, or the number of manure pits dug. Starting of rural credit societies etc. These are essential items in any rural programme, but there was no coordinated approach to village life as a whole. 3. If one goes back to the study of the efforts made before World War II in individual Provinces and States and considers, the experience gained in later years in Sevagram in Madhya Pradesh, in the Firka Development scheme in Madras, in the Sarvodaya centres in Bombay, in Etawah and .Gorakhpur in Uttar Pradesh and other centres which are perhaps less well known, certain broad conclusions emerge. These are :

i.

ii. iii.

When different departments of the Government approach the villager, each from the aspect of its own work, the effect on the villager is apt to be confusing and no permanent impression is created. The peasant's life is not cut into segments in the way the Government's activities are apt to be ; the approach to the villager has, therefore, to be a coordinated one and has to comprehend his whole life. Such an approach has to be made, not through a multiplicity of departmental officials, but through an agent common at least to the principal departments engaged in rural work, whom it is now customary to describe as the village level worker. Programmes which have been built on the cooperation of the. people have more chances of abiding success than those which are forced down on them. While the official machinery has to guide and assist, the principal responsibility for improving their own condition must rest with the people themselves. Unless they feel that a programme is theirs and value it as a practical contribution to their own welfare, no substantial results will be gained. Programmes largely dependent on expenditure by the Government, in which the elements of selfhelp and mutual cooperation on the part of villagers are present only in a nominal degree are shortlived. The essential idea should be the reduction of chronic unemployment which is a feature of rural lifethrough the practice of scientific agriculture and cottage and small-scale industries. Advice and precept are of no avail unless they are backed by practical aidssupplies of seed and fertiliser, finance and technical guidance for solving the farmer's immediate problems. Whatever the measures of the effort which the Government wishes to make, the best results will be gained if the programmes are pursued intensively, and practically every agriculturist family has its own contribution to make through a village organisation.

iv.

v. vi.

2 vii.
The approach to the villager would be in terms of his own experience and problems, conceived on the pattern of simplicity, avoiding elaborate techniques and equipment until he is ready for them. There has to be a dominant purpose round which the enthusiasirfofthe people can be aroused and sustained, a purpose which can draw forth from the people and those who assist them on behalf of the Government the will to work as well as a sense of urgency. The aim nhould be to create in the rural population a burning desire for a higher standard of living a will to live better.

viii.

IIcommunity development programme These lessons from the experience of the past have been brought together in the conception and concrete formulation of the community development programme, which has been launched during 1952. While the concept is not a new one, progress has in the past been hampered by insufficiency of available funds. Size of the unit 2. For each community project, as at present planned, there will be approximately 300 - villages with a total area of about 450 to 500 square miles, a cultivated area of about 150,000 acres and a population of about 200,000. The project area is conceived as being divided into 3 Development Blocks, each consisting of about 100 villages and a population"of about ^0,000 to 70,000. The Development Block is, in turn, divided into gioups of 5 villages each, each group being the field of operation for a village level worker. Location of Units 3. The initial programme has been started with approximately 55 Projects of rural development located in select areas in the several States of India. A certain degree of flexibility is allowed in the actual allotment of projects. Thus, while many are complete projects of about 300 villages each, some are also independent development blocks of about 100 villages each, depending upon the needs pnd conditions of the particular areas chosen for development. '4. As increased agricultural production is the most urgent objective, one of the basic criteria in the selection of this first set of Project areas has been the existence of irrigation facilities or assured rainfall. In assessing irrigation facilities and the possibilities of development, irrigation from river valley projects, from tubewells, as well as from minor irrigation works, have been taken into account. In States like West Bengal and Punjab, with a large population of displaced persons, the selection of project areas aims also at helping the resettlement of these persons. Seven areas have been selected on the ground ofthei' being inhabited predominantly by scheduled tribes. In every field of activity, whether social or economic, urban and rural development are complementary, for, neither towns nor villages can advance alone. Where the existing urban facilities are inadequate or where large numbers of displaced persons have to be rehabilitated, the intention is that the urban development should take the form of new townships. Six such projects have been proposed to be taken up under the current programme. Under such rural-CMW-urban development, new towns will come into existence to serve as centres which will draw sustenance from the surrounding countryside and, in return, carry to it new amenities and the spirit of a developing and changing economy. The creation of new centres of small-scale industrial production, closely coordinated wilh rural development, is fundamental to national development, for in no other way can the present occupational imbalance between agriculture and industry, between village and town, be corrected. With the development of power resources and of communications and the growth of basic industries, the scope for establishing such centres will steadily increase and, as the economy develops, this programme will gain in importance. During the first few years, however, it is inevitable that by far the greatest stress in community development, as indeed in national planning, should be on rural

3
areas. The intensive development of agriculture, the extension of irrigation, rural electrification and the revival of village industries, wherever possible, with the help of improved techniques, accompanied by land reform and a revitalised cooperative movement, are programmes closely related to one another, and together ca'culated to change the face of the rural economy. Main lines of activity 5. The main lines of activity which wil! be undertaken in a community project, can be briefly divided into the following Agriculture and related matters.Irrigation.Communications.Education.Health.Supplementary employment Housing.Training.Social Welfare. Agriculture and related matters 6. The programme includes reclamation of available virgin and waste land ; provision of commercial fertilizers and improved seeds ; the promotion of fruit and vegetable cultivation, of improved agricultural technique and land utilisation ; supply of technical information, improved agricultural implements, improved marketing and credit facilities , provision of soil surveys and prevention of soil erosion, encouragement of the use of natural and compost manures and improvement of livestock, the principal emphasis here being on the establishment of key villages for breeding pedigree stock and the provision of veterinary aid, as well as artificial insemination centres. For attaining this objective, agricultural extension service will be provided at the rate of one agricultural extension worker for every 5 villages. One of the important functions of the agricultural extension worker will be to encourage the growth of a healthy'cooperative movement. The aim will be to see that there is at least one multi-purpose society in every village or group of villages on which practically every agriculturist family is represented. It is expected " that the cooperative principle, in its infinitely varying forms, will be capable of adaptation for finding a solution to all problems of rural life." Multi-purpose societies will therefore have to be used for practically every development activity in the community project area, including the encouragement of rural arts and crafts. Irrigation 7. The programme visualises provision of water for agriculture through minor irrigation works, e.g., tanks, canals, surface wells, tubewells, etc., the intention being that at least half of the agricultural land, if possible, be served with irrigation facilities. Communications 8. The road system on the country side is to be so developed as to link every village within the Project area upto a maximum distance of half a mile from the village, the latter distance being connected by feeder roads through voluntary labour of the villagers themselves, only the main roads being provided for and maintained by the State or other public agencies. Education 9. It has been realised that the full development of a community cannot be achieved without a strong educational base, alike for men and women. The community projects have been planned to provide for social education, expansion and improvement of primary and secondary education and its gradual conversion to basic type, provision of educational facilities for working children and promotion of youth welfare. Vocational and technical training will be emphasised in all the stages of the educational programme. Training facilities will be provided for imparting improved techniques to existing artisans and

4
technicians, both in urban and rural areas. Training centres which already exist in any area, will be strengthened and developed, and new ones established to meet the requirements of the project area. Health 10. The Health Organisation of the Project area will consist of 3 primary health units in the Development Blocks and a secondary health unit equipped with a hospital and a mobile dispensary at the headquarters of the Project area and serving the area as a whole. It would aim at the improvement of environmental hygiene, including provision and protection of water supply ; proper disposal of human and animal wastes ; control of epidemic diseases such as Malaria, Cholera, Small-pox, Tuberculosis, etc. Provision of medical aid along with appropriate preventive measures, and education of the population in hygienic living and in improved nutrition. Supplementary Employment 11. The unemployed and the under-employed persons in the village community will be provided with gainful employment to such extent as is possible, by the development of cottage and small-scale industries, construction of brick kilns and saw mills and encouragement of employment through participation in the tertiary sector of the economy. Housing 12. Apart from the provision of housing for community projects personnel, steps will be taken, wherever possible, to provide demonstration and training in improved techniques and designs for rural housing. In congested villages, action in the direction of development of new sites, opening of village parks and playgrounds and assistance in the supply of building materials, may also be necessary. Training 13. The training of village level workers, project supervisors and other personnel for the Community Development Programme will be carried out in 30 training centres .which have been set up with the assistance of the Ford Foundation of America. Each training centre will have facilities for about 70 trainees. Each centre will have double training staff so that the trainees can be divided into two groups. One group will be getting practical and supervisory work experience, while the other group will be utilising the centres' facilities for lectures, demonstrations and discussions. In view of the great demand on the training centres to turn out people quickly for the opening of new projects, the training period will, in the first instance, be limited to six months. In addition to the training of village level workers and supervisors, the agricultural extension service workers in the Project areas will take steps for the training of the agriculturists, panches and village leaders. Social welfare 14. There will be provision for audio-visual aid for instruction and recreation, for organi-adons of community entertainment, sports activities and Melas. Organisation 15. CentreFor the implementation of the Community Development Programme as indicated above, the Central Organisation will consist of a Central Committee (the Planning Commission has been designated as the Central Committee) to lay down the broad policies and provide general supervision, and an Administrator of Community Projects under the Central Committee. The Administrator will be responsible for planning, directing and co-ordinating the Community Projects throughout India under the general supervision of the Central Committee and in consultation with appropriate authorities in the various

5
States. He will be assisted by a highly qualified executive staff to advise him on administration, finance, personnel, community planning and other matters. 16. StateAt the State level, there will be a State Development Committee or a similar body consisting of the Chief Minister and such other Ministers as he may consider necessary. There will also be a State Development Commissioner or a similar official who will act as the Secretary to the State Development Committee and will .be responsible for directing community projects in the State. Where the work justifies it, there may, in addition, be a Deputy Development Commissioner specifically in charge of community projects. 17. DistrictAt the District level, there will be, wherever necessory, a District Development Officer responsible for the Community Development Prog,i cmme in the district. This officer will have the status of an Additional Collector and will operate under the directions of the Development Commissioner. He will be advised by a District Development Board consisting of the officers of the various departments concerned with Community Development, with the Collector as Chairman and the District Development Officer as executive Secretary. 18. ProjectAt the Project level, each individual project unit (consisting of a full project or one or more Development Blocks where there is not a full project) will be in charge of a Project Executive Officer. In the selection of Project Executive Officers, special regard will be paid to experience, general outlook, understanding of the needs and methods of Community Development, capacity for leadership and ability to secure both official and non-official co-operation. Each Project Executive Officer in charge of a full project, will have on his staff approximately 125 supervisors and village level workers, who will be responsible for the successful operation of all activities at the Project Level. This organisational pattern will be adapted to suit local conditions and needs as may be deemed necessary by the Administrator and the respective State Governments. People's participationthe crux of the programme 19. While on the subject of organisation, it is necessary to stress the importance of ensuring, right from the start, the people's participation, not merely in the execution of the Community Development Project but also in its planning. This in fact is the very essence of the programme. '20. The Community Development Programme aims at the establishment of a suitable organ to e-.sure participation of the villagers at the planning stage. It contains provisions for the setting up of a Project Advisory Committee. It is intended that the Project Advisory Committee should be as representative as possible of all the non-official elements within the project area. In securing participation of the villagers in the execution of the programme, the Community Projects Organisation will avail of all non-official local voluntary organisations and especially the Bharat Sevak Samaj, which is likely to be set up in the project area on the lines indicated in the pamphlet recently circulated by the Planning Commission. Villager's contribution to the programme 21. The pattern of the project as drawn up includes major items of works normally implemented through Government agencies. This is bound to involve higher expenditure through elaborate administrative staff, middlemen's fees and possibly in certain cases, questionable practices. If the people are to be trained to be the builders of the future, the works have to be entrusted, even at certain risks, to the people themselves through their representative agencies, the Governmental organisation furnishing the technical assistance and the essential finance. It is intended that a qualifying scale of voluntary contribution, either in the form of money or of labour, should be laid down and this contribution will be a condition precedent to development schemes being undertaken under the Community Development Programme.

6
In all these cases, contributions may be In the form, either of voluntary labour or of cash. In respect of backward areas and areas predominantly populated by scheduled castes and scheduled tribes it may not be possible for the villagers to make any financial contribution. In these areas, the villagers should be asked-to contribute by way of labour effort required for executing the works programme under various heads. The agency of the Bharat Sevak Samaj is hoped to become a major avenue for the organisation of the voluntary effort on the part of the villagers. Finance 22. The estimated expenditure on a basic type of a rural community project, i.e., a project without the provision for an urban unit, is Rs. 65 lakhs over a period of 3 years. Of this amount, about 5 8-47 lakhs will be^rupee expenditure, and Rs. 6-53 lakh swill be dollar expenditure. The estimated cost of an urban unit (which it is intended to provide in a few projects) is Rs. in lakhs. Of this amount, the estimated rupee expenditure is about Rs. 95-55 lakhs and the dollar expenditure is Rs. 15 -45 lakhs. In order to enable expansion of the programme in future years, the Central Committee felt that some reduction in the estimated cost of a rural community project, basic type, should be made and, after examination of the question, has now decided that oil community projects should be operated on the basis of a reduced total of Rs. 45 lakhs per project. So far as the existing projects are concerned, this would mean that the area of operations under each project on a population basis of 2 lakhs per project should be so revised or adjusted as to conform to the new expenditure pattern. The Community Development Programme imposes financial obligations on the Centre as well as on the State Governments. Broadly, the proportions which have been fixed are 75 per cent for the Centre and 25 per cent for the State in respect of non-recurring expenditure, and 50 per cent each for Centre and States in respect of recurring expenditure. This applies to ' grants-in-aid '. Loan amount is totally found by the Centre. After the three-year period, the Community Project areas are intended to become Development Blocks on the lines recommended for adoption in Chapter VI of the Grow More Food Enquiry 'Committee's Report. It is expected that in so far as the Community Project areas are concerned, the expenses of such development blocks will be borne entirely by State Governments after the third year. The expenditure, mostly recurring, is likely to be about Rs. 3 lakhs per project. Supporting projects 23. The Community Development Programme is related to and supported in part by most of the other projects under the Indo-American Technical Cooperation Programme. The fertiliser required by the Community Development Programmes will be acquired and distributed in accordance with the Operational Agreement No. I which deals with the " Project for Acquisition and Distribution of Fertilizer ". Similarly, the iron and steel needed for farm implements and tools will be acquired and distributed in accordance with the " Project for the Acquisition and Distribution of Iron and Steel for Agricultural purposes ". The tubewells to be constructed in the project areas will be allocated from the " Project for Ground Water Irrigation ". Information and services with respect to soils and fertilizer application will be made available from the " Project for distribution of soil fertility and fertiliser use ". Assistance in Malaria control in the project areas will be forthcoming from the " Project for malaria control planned under the Technical Cooperation Programme". The training, of Village Level Workers and Project Supervisors will be carried out under the " Vmage Workers Training Programme " Evaluation 24. A systematic evaluation of the methods and results of the Community Development Programme will, no doubt, make a significant contribution by pointing up those methods which are proving effective, and those which are not ; and furnishing an insight into the impact of the Community Development Programme upon the economy and culture of India. In orde"* that it may be useful to those administering the Community Development Projects and serve as a basis for informed public opinion regarding the

7
programme, the evaluation work is being arranged to be conducted by the Planning Commission in close cooperation with the Ford Foundation and the Technical Cooperation Administration. IIINational Extension Service In setting out our proposals on the subject of administration of district development programmes, we have already attempted to analyse the organisational features of extension work in the district. The entire subject has been carefully reviewed recently by the Grow More Food Enquiry Committee. After examining the results of the campaign for increased food production, which has been in progress for several years, the Committee state the problem which extension workers have to meet in the following words : " No plan can have any chance of success unless the millions of small farmers in the country accept its objective, share in its making, regard it as their own, and are prepared to make the sacrifices necessary for implementing it. The integrated production programme has failed to arouse enthusiasm for the reasons we have given. The food problem is a much wider one than mere elimination of food imports. It is the problem of bringing about such a large expansion of agricultural production as will assure to an increasing population progressively rising levels of nutrition. In other words, the campaign for food production should be conceived as part of a plan for the most efficient use of land resources by the application of modern scientific research and the evolution of a diversified economy. In its turn, agricultural improvement is an integral part of the much wider problem of raising the level of rural life. ' The economic aspects of village life cannot be detached from the broader social aspects ; and agricultural improvement is inextricably linked up with a whole set of social problems. The lesson to be derived from the working of the G. M. F. programmes thus confirms the experience of States and private agencies engaged in village development. It is that all aspects of rural life are interrelated and that no lasting results can be achieved if individual aspects of it are dealt with in isolation. This does not mean that particular problems should not be given prominence but the plans for them should form parts of, and be integrated with, those for achieving the wider aims. It is only by placing this idealof bringing about an appreciable improvement in the standards of rural life and making it fuller and richerbefore the country and ensuring that the energies of the entire administrative machinery of the States and the best nonofficial leadership are directed to plans for its realisation that we can awaken mass enthusiasm and enlist the active interest and support of the millions of families living in the countryside in the immense task of bettering their own condition." 2. This analysis led to the Committee to propose the establishment of a national extension organisation for intensive rural work which could reach every farmer and assist in the coordinated development of rural life as a whole. The detailed proposals of the Committee on the organisation of the extension network at various levels have been described earlier. The programme envisaged by the Committee, for which the necessary provision has been made in the Plan, is that the Central Government should assist State Governments in establishing extension organisations so as to bring their entire area under extensive development within a period of about ten years. During the period of the Plan, about 120,000 villages are to be brought within the operations of the extension, that is, nearly one-fourth of the rural population. The Central and the various State Governments are expected in the near future to frame detailed programmes for reorganising the existing extension services, arranging for further recruitment and preparing training programmes. In drawing up these programmes the Central and State Governments will have to examine the necessity for providing the basic training in agriculture and animal husbandry to the village level workers and the various supervisory subject matter specialists. Where existing facilities are inadequate, steps will have to be taken to augment them with a view to ensuring an adequate supply of extension workers for each major linguistic region. There is little doubt that the implementation of these proposals can give a new and powerful momentum to all rural work and, in particular, to the programme for increaeds agricultural production.

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3. The organisation of extension services with the object of securing increased production and raising the standard of village life is a new undertaking. Extension is a continuous process designed to make the rural people aware of their problems, and indicating to them ways and means by which they can solve them. It thus involves not only education of the rural people in determining their problems and the methods of solving them, but also inspiring them towards positive action in doing so. It is, therefore, of the highest importance that for this task, personnel of the right type should be obtained who will take to their work with zeal and enthusiasm. The qualities required are not only the ability to acquire knowledge but also dedication to the task of serving the rural people and the development of a will to find solutions for their problems. People from village surroundings with experience of practical farming are likely to prove of special value as extension workers. 4. The training of extension workers requires the closest attention and must be related to the serivces that they will have to perform. They have to understand rural problems, the psychology of the farmer, and oner solutions to his various difficulties. They have to try and find out the felt needs of the people, and the solutions that they offer must be demonstrated by acting in close cooperation with the farmers. They should be able to discover leadership and stimulate it to action. Their success will depend on the extent to which they gain the confidence of the farmers. Their duties have thus to be educative and demonstrative. Their training will thus have many facets. Periods spent in gaining a thorough training will be a good investment. If the period of extension training is to be shortened, so as to be able to cover a larger area than may be otherwise possible, care should be taken to see that it is preceded by adequate opportunities for basic training in all aspects of rural development. Their conditions of service should also be such as are calculated to keep up their zeal and enthusiasm and ensure the continuous maintenance of high standards of performance. There should be considerable scope for promotion for men who start at the bottom. In order to develop the true extension approach much might be gained if all extension workers, whether graduates or field level workers, were to start at the field level and only those who proved their worth, received promotions to higher positions. A fair proportion of these positions should also be open to village workers who display the necessary qualities of leadership and ability. For this purpose, courses should be provided at different levels to enable the promising extension workers who start at the field level to reach positions of greater responsibility 5. It is important to secure that the extension service retains its character of continued utility to the rural areas which they serve. This factor should, therefore, be particularly borne in mind in judging the work of officials who man this service. Local opinion on the extent to which an extension worker has made himself useful should be an important criterion in assessing his ability. 6. The confidence of the villager is gained with difficulty and lost easily. It is, therefore, of the essence of extension that the initial start is made with items whose usefulness to the cultivator in increasing agricultural production has been well established. It is only after sufficient confidence is gained that comparatively untried measures can be put forward, and even these should be held out as experiments until the people have found the answer for themselves. 7. The -immediate effect of the first impact of an extension organisation is to increase the demands of the cultivator for credit, supplies and implements. The satisfaction of these demands is a necessary consequence of extension activities and they will succeed to the extent this responsibility is handled efficiently. Extension activities will be adversely affected if arrangements cannot be made for supplying the needs which they-generate. 8. Finally, it may be pointed out that extension workers have to be supported effectively by research workers to whom they can bring their problems and whose results they carry to the people. Special arrangements are, therefore, needed to ensure the closest cooperation between extension and research.

2nd Five Year Plan

Chapter 7:

DISTRICT DEVELOPMENT ADMINISTRATION

Recent Developments In India the district has always been the pivot of the structure of administration. With the acceptance of a Welfare State as the objective the emphasis in district administration has come to be placed overwhelmingly on development activities. The progress cf the national extension and community development, increase in the number of village panchayats and the response of the people to opportunities for cooperation in development programmes have served to stress the importance of planning and execution of development programmes within the district with the full "support and participation of the best non-official leadership at all levels. 2. In the First Five Year Plan problems relating to the administration of district programmes were reviewed and a number of recommendations made. The object of this chapter is to consider action that has been taken during the past three or four years and to" suggest directions in which the administration of district programmes may be further strengthened in view of the tasks to be undertaken in the second five year plan. As was pointed out in the First Five Year Plan, apart from finding personnel and the need to adapt the administrative system to the temper of democratic government, the reorganisation of district administration has to provide for

1. establishment for development at the village level of an appropriate agency which derives its
authority from the village community; 2. integration of activities of various development departments in the district and the provision of a common extension organisation;

3. linking up, in relation to all development work, of local self-governing institutions with the
administrative agencies of the State Government;

4. regional coordination and supervision of district development programmes; and 5. strengthening and improvement of the machinery of general administration.
These tasks are of even greater importance for the second five year plan. 3. The strengthening and improvement of the machinery of general administration has to be undertaken at State headquarters as well as at other levels. At State headquarters coordination is achieved through an inter-departmental committee of Secretaries in charge of various development departments. The chairman of the committee is the Chief Secretary or the Secretary in charge of planning. Generally, the functions of coordination for planning and for the implementaion of district programmes are combined in a single officer commonly described as the Development Commissioner. As a rule, a committee of the State Cabinet under the Chief Minister provides overall guidance and direction. State Planning Boards which include leading non-officials have also been constituted in most of the States. 4. At the beginning of the first five year plan several States, especially those which had been recently integrated, were without adequate administrative cadres. This deficiency has been largely made good, but several small States are experiencing difficulty in obtaining officers on deputation from other States.

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States which had abolished zamindari or jagirdari such as Bihar, Rajasthan and Hyderabad are taking steps to provide the necessary administrative agencies at various levels. 5. Steps which have been taken during the past few years such as the programme of national extension and community projects, integration of district development activities on the national extension pattern, and the development of village panchayats, point to the need for speeding up the development of democratic institutions within the district Tn this respect, a certain hiatus has continued to exist which it is necessary to remove. It is important that sound institutions should be built up as early as may be possible to enable the people of each area to assume the principal responsibility for the development of their resources and for solving their local problems as part of the wider scheme of state and national planning. 6. The implementation of the plan and of national extension and community projects have enhanced the responsibilities of the district administration. The additional personnel located in the district by the development departments for carrying out national extension and community projects and other programmes have been a sourca of strength to the district administration. On the other hand, the task of supervision over different branches of activity has become larger and more complex and the claims upon the time and energy of the Collector have increased. Large-scale programmes for agricultural development, expanding and improving the cooperative movement and promoting village and small industries and the development of urban areas are new responsibilities for which the Collector will have specially to equip himself. It is obvious that administrative agencies have a much larger part to play in these directions than ever before. The people also look to a larger share in the working of various programmes. In many States, to enable the Collector and the team of officers at the district level to meet the new demands, additional Collectors and District Development or Planning Officers have been appointed and there has been greater delegation of authority. The Collector, the Sub-Divisional Officer and the Block Development Officer are functioning as leaders of teams of specialists whose work they guide and knit together. In several States more sub-divisions have been created, and phased programmes for establishing new sub-divisions are being followed. Action along these lines should be pursued .systematically in all States as it has been decided to extend the national extension service programme over the entire country in the next five years. Village Planning And Village Panchayats 7. The preparation of the first five year plan in the States took place mainly at State headquarters. Subsequently, attempts were made to break up State plans into district plans. In national extension and community project areas, as programmes were carried to the village to be worked in cooperation with the people, the significance of village planning was increasingly realised. In the programme of local development works local communities had to propose schemes which they could undertake through their own labour with support from the Government It has been recognised that unless there is comprehensive village planning which takes into account the needs of the entire community, weaker sections like tenantcultivators, landless workers and artisans may not benefit sufficiently from assistance provided by the Government The national extension movement aims at reaching every family in the village. This aim cannot be fullfilled unless, as was pointed out in the First Five Year Plan, there is an agency in the village which represents the community as a whole and can assume responsibility and initiative for developing the resources of the village and providing the necessary leadership. Indeed, rural progress depends entirely on the existence of an active organisation in the village which can bring all the peopleincluding the weaker sections mentioned aboveinto common programmes to be carried out with the assistance of the administration. 8. These considerations have been taken into account in the preparation of the second five year plan. Early in 1954 State Governments were requested to arrange for the preparation of plans for the second five-year period for individual villages and groups of villages such as tehsils, talukas, development blocks, etc. It was essential that local initiative in formulating plans and local effort and resources in carrying them out should be stimulated to the maximum extent possible. This would help to relate the plans to local needs and conditions and also to secure public participation and voluntary effort and contribution. Village planning was to be concerned primarily with agricultural production and other associated activities,

11
including cooperation, village industries, communications and other local works programmes. These suggestions were generally followed and in all States village plans and district plans were prepared and formed a basis of the draft plans presented by State Governments. 9. The methods adopted for preparing the second five year plan have provided valuable training both to the rural people and to rural officials associated with development. It is realised that the pattern of district administration envisaged in the national extension and community development programme will remain incomplete unless village institutions are placed on a sound footing and are entrusted with a great deal of responsibility for carrying out local programmes. The experience of setting up ad hoc bodies in villages to implement development programmes has also reinforced this conclusion. The development of village panchayats on the right lines has significance for several reasons. Under the impact of new developments, including the growth of population, land reform, urbanisation, spread of education, increase in production and improvements in communications, village society is in a state of rapid transition. In emphasising the interest of the community as a whole and in particular the needs of those sections which are at present handicapped in various ways, village panchayals along with cooperatives, can play a considerable part in bringing about a more just and integrated social structure in rural areas and in developing a new pattern of rural leadership. 10. It is the general aim to establish a statutory pan-chayat in every village, especially in areas selected for national extension and community development projects. During the first five year plan the number of village panchayats has increased from 83,087 to 117,593. According to the tentative programmes drawn up for the second five year plan, by 1960-61 the number of village panchayats will increase to 244,564. All over India there is need to review village boundaries so that there might be evolved good, efficient working village units with live panchyats. Thus, there are over 380,020 villages in India with populations of 500 and below. More than 78 million people or 27 per cent of the rural population live in such villages. There are 104,268 villages with a population between 500 and 1000. About 73 million people live in these villages, constituting over 25 per cent of th'e rural population. More than half the rural population thus lives in villages with populations below 1000. A proportion of such villages is in hilly areas which are sparsely populated, and in these grouping may be difficult In other areas question of combining existing villages into units with a population of about 1000 deserves to be examined. It is necessary to have villages which are small enough to have a sense of solidarity and yet not so small that personnel cannot be provided or the essential services, organised for their benefit. The second conference of local SelfGovernment Ministers held in 1954 recommended that where individual villages are not large enough to serve as units for panchayats, a single panchayat may serve a population of 1000 to 1500. This is useful up to a point, but the real problem concerns the organisation of convenient village units. 11. In the First Five Year Plan it was recommended that to enable panchayats to play their part in organising village development programmes, legislation should confer on them certain functions relating to. village production programmes and the development of village lands and resources. Recently this proposal has been further examined. The functions of village panchayats may be distinguished broadly between two groups, administrative and judicial. Administrative functions may be divided conveniently between (1) civic, (2) development, (3) land management and (4) land reforms. The civic functions of panchayats are embodied in legislation in different States in more or less similar terms. They include such tasks as village sanitation, registration of births, deaths, etc., organisation of village watch and ward, construction, maintenance and lighting of village streets, etc. 12. The functions of village panchayats in relation to development may be set out as follows:

1. framing programmes of production in the village; 2. in association with cooperatives, framing budgets of requirements for supplies and finance for
carrying out programmes;

3. acting as a channel through which an increasing proportion of government assistance reaches

the village:

12 4. developing common lands such as waste lands, forests, abadi sites, tanks, etc., including
measures for soil conservation;

5. construction, repair and maintenance of common village buildings, public wells, tanks, roads, etc.; 6. organisation of mutual aid and joint effort in all activities; 7. promotion of cooperative societies; 8. organising voluntary labour for community works; 9. promoting small savings; and 10. improvement of livestock.
13. The functions of panchayats in respect of management of village lands and the implementation of land reforms are specially related to the lines along which it is proposed that the agrarian structure should be reorganised and are explained in chapter IX. The main land management functions are:

1. regulation of the use of common lands such as waste lands, forests, abadi sites, tanks, etc.; 2. cultivation of lands set apart for the benefit of the village community, as in consolidation of
holdings;

3. adaptation of standards of good management and cultivation to local conditions and their
enforcement; and

4. association with the work of maintenance of land records;

The functions of. panchayats in relation to land reforms arise from legislation which may be enacted by each State. In the main, they entail the association of the village panchayat with such activities as

1. determination of land to be allotted to owners and tenants on the exercise of rights of resumption
for personal cultivation,

2. determination of surplus lands on the application of ceilings on agricultural holdings, and 3. redistribution of surplus lands arising from the imposition of ceilings.
Village panchayats are already associated in several States in the work of consolidation of holdings. 14. The judicial functions of panchayats concern

1. the administration cf civil and criminal justice, 2. enforcement of minimum wages for agricultural workers, and 3. simple disputes pertaining to land.
The common pattern in States for facilitating the exercise of these functions is to establish separate judicial panchayats whose territorial jurisdiction extends as a .rule to a number of villages. 15. It was recognised in the First Five Year Plan that the process of election by which panchayats are constituted might not always throw up a sufficient number of persons with qualities most needed in village reconstruction such as good farmers, cooperative workers and social workers. Similarly, instances might

13
occur in which weaker sections of the population, especially the landless, might not be adequately represented in the panchayat. Nomination of additional members, which was suggested as a possible course in the First Five Year Plan, is not free from defects. To meet deficiencies, it may be desirable to empower village panchayats to co-opt a limited number of persons, say, two or three, in the case of smaller panchayats and up to, say, one-fifth in the case of the larger panchayats. A representative of the principal cooperative society of the village could also be an ex-officio member of the village panchayat. In the panchayat legislation of a number of States provision exists for a measure of reservation in favour of Hari-jans and backward classes. In the actual administrations of panchayat legislation it is necessary to pay special attention to the representation through election of weaker sections of the village community. 16. Once it begins to function actively, an institution like the village panchayat will soon face the difficult problem of finance. Panchayat legislation in most States provides for series of sources of revenue such as tax on trade or profession, property tax, licence fees, fines and watch, and ward tax. In most cases, however, these do not yield any significant resources. In the main, panchayats have to rely on three sources given to them by State Governments. The first of these is the grant of a proportion of the land revenue. The second, of which there are not many instances yet, is the right given to the panchayat to collect land revenue and to realise the collection fees allowed to village headmen. The third source is the right to utilise income from common lands, tanks, etc. In the Punjab and in one or two other States, in the course of consolidation of holdings, by agreement a certain amount of land is given to the village community, so that the income can be used for common benefit Grants to panchayats of a proportion of the land revenue are made in several States. They vary from 10 to 15 per cent at one end to about 30 per cent. at the other. It is desirable that a proportion of the iand revenue in each village should be assigned to the panchayat for local development. This will serve as a nucleus fund to be augmented by the panchayat from contributions in labour and money from members of the community. We suggest that State Governments may consider making grants to village panchayats in two parts, a basic proportion, say, 15 to 20 per cent. of the land revenue, with an additional grant extending up to, say, 15 per cent of the land revenue on condition that the panchayat raises an equal additional amount by taxation or voluntary contributions. Panchayats should also be assisted in developing sources of recurring income. 17. In programmes sponsored by State Governments and district authorities, the panchayat has to find a proportion of the cost through labour and through contributions in other forms. Its own direct expenditure concerns the provision of elementary services in the village and the maintenance of minimum staff. The responsibilities entrusted to panchayats will continue to grow. In some cases full-time panchayat secretaries have been appointed: in others part-time arrangements have been made. It is not necessary to prescribe any set pattern, but different ways of providing staff assistance to village panchayats which are being adopted in the States should be studied and, according to circumstances, those which are found suitable can be adopted. The staff for the Panchayats should be suitably trained. 18. As the coverage of the national extension movement expands, the work of village panchayats should be closely integrated with the programmes adopted in development blocks. Panchayats will have two sets of programmes, namely, those which are sponsored by the Government through extension workers and by District Boards through their agencies, and those which are undertaken by the village community of its own volition and from its own resources in manpower, materials and money. Towards the former the village has to find a share of the cost mainly in the form of labour. While both sets of programmes are vital and the village panchayat should be used wherever possible in carrying out development programmes, an important test of the success of the Panchayat as an institution is the proportion which the second set of programmes bears to the first. The true significance of the panchayat lies in its role in mobilising the contribution of the community. It is also desirable that where village panchayats undertake activities such as minor irrigation works, land development, soil conservation, etc., they should be given the assistance which is commonly made available to individuals under various schemes. In fact local communities shouid be encouraged to undertake joint activities to the maximum extent possible. District Plans

14
19. When planning is undertaken on a national scale a careful view has to be taken as to which programmes should form part respectively of the national, state and district plans. Among the factors which have to be taken into account are

1. the level at which an activity can be undertaken with. the necessary technical and administrative 2. whether an activity is limited to a particular area or has significance for a wider area, so that it
should form part of a larger interconnected plan, and resources,

3. the extent to which public participation and co-operation are called for in implementing the
programme or augmenting its scope and influence. On these considerations the Central Government has to undertake the main responsibility for the development of major industries, the railway network, national highways and over-all co-ordination in various fields of development such as irrigation and power, large and small industries, etc. There are other projects which are best planned on a State basis, as for example, irrigation and power schemes of medium size, road transport services and surveys for drawing up minor irrigation programme. Plans for districts and villages merge into the State plan which, in turn, has to take cognizance, of plans prepared from the point of view of a country as a whole. 20. In drawing up the second five year plan it was agreed that a State plan should include to the maximum extent possible all programmes to be implemented by the State Government or by public authoriftes such as local bodies or by special boards set up within the State. The fact that for any particular programme either the whole or a part of the resources came tram the Central Government or from various agencies set up by it did not, in principle, affect the inclusion of a programme within the State plan. This course was adopted because in the second five year plan one of the most important aspects was the preparation of plans at various levels below that of the State, that is, for individual villages, towns, talukas, tahsils or extension blocks and districts. It was recognised that both -at the district and at the State level three kinds of programmes sponsored on behalf of public authorities would be included in the plan, namely,

a. programmes intiated at the level in question, e.g. taluka, district and State. b. programmes initiated at lower levels and integrated with those in (a), and c. programmes initiated at levels above and integrated with (a), for instance, schemes sponsored by
the Central Government but execute] through States or schemes sponsored by the State Government andimplemented through machinery available in the district. 21. A State plan has to be presented in two different ways, namely, according to different sectors of development represented in it and according to regions and districts. Programmes for different sectors include those which are to be executed directly by departments at State level and others which are to be executed through districts but are co-ordinated at the State level. Thus, a district plan would include programmes prepared on a territorial basis for villages, groups of villages, talukas, extension blocks, municipal areas, etc. and also programmes to be executed within the district which are derived from departmental plans formulated at ,the State level. That part of the district plan which is prepared within the district is important both for the range of activities which it embodies and for the fact of association with the people at every level and the opportunity afforded to them to determine their needs and to contribute towards their fulfilment. 22. Just as in drawing up State plans the preparation of district plans is an important stage, so also in the implementation of the State plan its break up into district plans is an essential step. In particular, in different sectors in the State plan programmes or schemes in which local participation and community action have a special contribution to make are to be separated out and shown as constituents in the plans of districts. Those items of work become pail of the district plan in which, in the main, the resources

15
provided by Government are in the nature of a nucleus to be augmented through popular support and participation. The value of district plans as a method of approach in planning is enhanced by the ambitious scale on which national extension and community projects are proposed to be undertaken. By the end of the second five year plan this programme will serve almost the entire rural population. Each State will have its phased programme for bringing different blocks, talukas, etc. under the national extension and community development programme. A district plan will include programmes for all parts of a district, whether or not, at a given date, they are provided with extension services. The district plan has, therefore, to take into account the requirements and activities of areas under the extension programme as well as of those outside it. This makes the district plan and important influence in educating public opinion, in bringing together various programmes in the district within a common frame and in developing comw'unity participation, cooperative self-help and local initiative and leadership. The people of each district arc thus enabled to assess their needs and resourcesJ'udge for themselves the tasks to be undertaken with the active support of the administration, and put forth the requisite effort. Moreover, as a partnership in effort between the administration and the people a district plan will specify obligations to be met by both. 23. The main constituents of a district plan are:

1. the community development and national extension programme, 2. social welfare extension projects, 3. agricultural production programme and allied activities in the field of rural development such as
animal husbandry, soil conservation etc.,

4. development of co-operatives, 5. village panchayats, 6. village and small industries, 7. schemes for utilising effectively resources developed through State projects for irrigation,
electricity, communications, industrial development and expansion of training facilities,

8. housing and urban development, 9. the programme of small savings, 10. aiding construction projects through labour co-operatives and shramdan, 11. programmes for the welfare of backward classes, 12. programmes in rural and urban areas relating to social services, especially expansion of
education at primary and secondary levels, health units, health education, sanitation, malarial control, family planning, etc.

13. utilising and assisting voluntary organisations engaged in constructive social work, 14. land reform, 15. prohibition work, and 16. dissemination of information about programmes of national, state, regional and local
development.

16
24. These programmes are undertaken through several official and non-official agencies, and in a number of them there has to be co-ordination between more than one agency. Thus, in addition to administrative officials and the officials of the various development departments, each district will generally have a rural local board, a large number of village panchayats, and a number of municipal bodies in rural areas. The importance of towns as focal points in economic growth is likely to increase, and urban and rural areas have to be viewed together in terms of planned regional development. In areas selected for intensive work under the national extension and community development programme, there are project or block advisory committees which include, besides Members of Parliament and the State Legislature, a number of non-officials appointed by the State Government The existence of a larger number of agencies whose work has to be co-ordinated through a district plan suggests certain possibilities of reorganisation of development machinery in the districts. District Development Machinery 25. During the first five year plan, as has been stated earlier, the national extension machinery has become part of the normal district administration. In almost all States district development or planning committees have been set up which associate representatives of the district in the State legislature and in Parliament, representatives of the district board and the principal municipal bodies and leading nonofficial workers with the formulation and implementation of development programmes in the district. The functions of these committees are essentially advisory or consultative. On the whole, they have not secured the degree of participation and cooperation from the public which is implicit in the concept of district planning. The association through these committees of the district board and of other local bodies with the work of development does not go far enough. In the First Five Year Plan the role of local bodies in development programmes was reviewed and it was suggested that the general direction of policy should be to encourage them and to assist them in assuming responsibility for as large a portion of administration and social services within their areas as may be possible. It was pointed out that it might be necessary to work out suitable arrangements for linking local self-governing bodies in different fields with one another, for instance, village panchayats with district or sub-divisional local boards. While the process developed, it was suggested that State Governments should secure the close co-operation of local self-governing bodies in the field of development in such directions as the following:

1. Programmes undertaken by local bodies should be integrated with State programmes and should
be shown as part of district plans; 2. Local bodies should be used as agencies for carrying out the social service programme of State Governments. "It is a good general rule for any authority to try and pass the responsibility for a project to the authority immediately below it if, with a measure of help and guidance, the latter can do the job equally or nearly as well";

3. Institutions run by local bodies and services provided by them should be inspected, supervised
and guided by the technical and administrative personnel of the State Government on exactly the same lines and with the same vigour as may be adopted for the State Government's own institutions and services;

4. Members representing the district board should provide the nucleus for development committees
set up for framing and watching the execution of the district and taluka development programmes. These committees would also include other institutions;and

5. Wherever sub-divisions exist or are created in the future, the establishment of sub-divisional local
boards should be considered. 26. In practice these recommendations have not been carried out to any great extent In a number of States, as in Madhya Pradesh, Orissa, Bihar. Punjab, Uttar Pradesh and elsewhere, thought has been given recently to the future structure and functions of district boards with reference to the functions of village pan-chayats and to those of various administrative agencies functioning in the district. The Taxation Enquiry Commission expressed the view that district local boards could no longer continue in

17
their existing form and that their position in the structure of local self-government had.become increasingly unstable. The need for creating a well-organised democratic structure of administration within the district is now being widely felt. In this "tructure village panchayats will have to be organically linked with popular organisations at a higher level. In some States it may be convenient to have a democratic body at the district level, in others at the level of sub-divisions. In either case there are two essential conditions to be aimed at In the first place, the functions of the popular body should come to include, if necessary by stages determined in advance, the entire general administta-tion and development of the area other than such functions as law and order, administration of and certain functions pertaining to revenue administration. The second condition is that for smaller areas within the district or the subdivision such as development blocks or talukas, sub-committees of the popular body should be assigned clear functions in the implementation of local programmes. The subject requires careful and objective study in the light of conditions prevailing in different parts of the country and experience during the first five year plan. We therefore recommend a special investigation under the auspices of the National Development Council. While this investigation proceeds and the results of experiments made in various States are studied more closely from the point of view indicated above, there is need for strengthening and reorganising the non-official agencies which have been created in almost all States for assisting in the implementation of development programmes, specially at the district level and in national extension and community project areas. 27. At the district level, the primary object is to coordinate the work of various agencies concerned with development and to associate with them representatives non-official and others who may be in a special position to assist. At the development block or taluka level the main aim is to secure the largest measure of participation, especially from cooperative organisations, village panchayals and voluntary agencies. A review of the manner in which district development committees and project advisory committees have functioned suggests that as an immediate step in reorganisation it will be useful for State Government to set up district development councils and development committees for are.as such as development blocks or talukas. A district development council might include

1. representatives of the district in the State legislature and in Parliament, 2. representatives of municipal committees and rural local bodies, 3. representatives of the cooperative movement, 4. representatives of village panchayats, 5. co-opted members from leading social service agencies, from educational institutions and from
amongst constructive social workers, and

6. the Collector along with sub-divisional officers and district officers in charge of various
development departments. 28. The functions of a district development council way bs described as

1. advising on the formulation of each year's plan of development within the general framework of
the 'State five year plan; 2. reviewing progress in the implementation of approved programmes of development;

3. recommending measures for the effective and speedy fulfilment of schemes of economic and
social development and, more especially, of national extension anri community projects, agricultural production programmes, local development works, social services and village small industries;

18 4. promoting public participation and cooperation in development programmes and expanding local
community effort both in urban and rural areas;

5. assisting the development of cooperatives and village panchayats; 6. promoting the small savings movements; 7. general supervision over the work of village panchayats in respect of land reform, land
management and' rural development generally;

8. enlisting the active association and cooperation of teachers, students and others in the study and
development of local resources;

9. providing opportunities for general education through fairs, exhibitions, seminars etc; 10. training of members of panchayats and cooperatives.
The functions of development committees constituted for development blocks or talukas will be similar to those of district development councils. Their membership might comprise:

1. representatives of village panchayats, 2. representatives of urban local bodies and of the rural local board, 3. representatives of the cooperative movement, 4. representatives of the area in the State legislature and in Parliament (to the extent their other
commitments permit them to participate),

5. co-opted members from leading social service agencies, from educational institutions and from
amongst constructive social workers,

6. officials in charge of development departments.

29. Although the functions of district development councils and block or taluka development Committees will be advisory, they should be given a considerable amount of initiative in suggesting the details of various programmes and the distribution of resources within the general scheme approved for the district by the State Government. Their work should be suitably planned, they should be consulted before programmes are finalised and their reviews of work done in the field should take place at regular intervals. Their special responsibility will be to ensure that the maximum amount of public cooperation and participation are secured, that the various programmes operate so as to be complementary to one another, and that disadvan-taged sections of the community benefit adequately.Development councils for districts and development committees for blocks or talukas constituted broadly on the lines mentioned above will take the place of exiting development committees and project advisory committees. It is envisaged that in the beginning these bodies may be non-statutory. Their effective functioning will mark an important stage in the reorganisation of district administration and the experience gained will indicate the lines along-which the structure of district administration may be modified and strengthened to meet the basic needs of democratic development. Moreover, progress along these lines will emphasise two specially valuable features of district and area planning. Local programmes represent an area of common action significant for the welfare of the mass of the people in which differences in view and affiliation are of relatively small consequence. Secondly, working with one another and with the people and their representatives will go a long way to bring the outlook and attitudes of local officials in line with the requirements of the socialist pattern of society and to break down barriers between different grades which are themselves and impediment to success in the common effort. Institutions and practices such as

19
seminars, sharing of experience and for consultation in formulating and reviewing programmes of work have already proved useful in this direction. Coordination And Supervision 30. Coordination and supervision of development programmes have to be organised at various levelsin the taluka or the development block, in the district or the sub-division, for a group of districts constituting a region and at the State level. At each stage two problems arise. The first is that the work of different techincal departments has to be knit together so as to make a single, coordinated programme. The second problem concerns guidance and inspection, and evaluation and reporting. The need for coordination arises, on the one hand, in relation to policy and allocation of resources and, on the other, in terms of the requirements of a common extension agency. The strength of a coordinated programme of development lies in the quality of the specialised services which are brought together. Coordination should therefore be so organised as to bring out the best in the specialist. This involves a clear appreciation of the responsibilities of technical departments at each level in the scheme of operations, and a proper recognition of their contribution to the common programme. As pointed out earlier, at the State level coordination of programmes is undertaken by the Development Commissioner under the direction of a Cabinet committee on development. In the district or the sub-division these responsibilities devolve on the Collector and the sub-divisional officer. Development programmes in the second five year plan are much larger in scope than those in the first five year plan. It is not now possible for the Development Commissioner, with the other responsibilities he bears at the State level, to tour sufficiently and keep in close touch with the working of the State plan in the districts. This difficulty will be specially felt in the larger States. In the circumstances of the second five year plan the need for setting up machinery for effective regional coordination and for supervision of district work cannot therefore'be too greatly stressed. 31. District administration is an agency of change towards a new social order. It has to respond to the needs and aspirations of the people. It will be judged both by the practical results it produces and by the methods and institutions of popular association and cooperation which it integrates into its basic structure.

20

3rd Five Year Plan

Chapter 33:

HOUSING AND URBAN AND RURAL PLANNING

The housing programme which had its beginning in the First Five Year Plan was directed mainly towards housing for industrial workers ynd low income groups. The programme was considerably expanded during the Second Five Year Plan with the introduction of schemes of slum clearance and slum improvement, plantation labour housing, village housing and land acquisition and development. The Table below shows the anticipated expenditure in the Second Plan: Table 1 Anticipated expenditure in the Second Plan (Rs. crores) scheme subsidised industrial housing slum clearance low income group housing village housing plantation labour housing middle income-group housing in Union Territories state housing schemes land acquisition and development town planning total anticipated expenditure 24-2 9.9 37-8 3-7 0-1 0.3 1-2 2-0 1-1 81-3

2. Besides (he housing schemes mentioned above, a few other specific schemes designed to benefit sections of the community like scheduled castes, scheduled tribes and backward classes in rural areas, handloom weavers, displaced persons etc., were undertaken. The housing programme for workers in the coal and mica industries was implemented with resources provided by the labour welfare funds for these industries. During the Second Plan the Life Insurance Corporation began to provide funds for house building to middle income groups and to State Governments for undertaking rental housing for their low paid employees. Housing on a considerable scale was also undertaken by the Central Government Departments and public enterprises for their employees. The total outlay on public housing during the Second Plan was of the order of Rs. 250 crores and about 500,000 houses were constructed. 3. Although efforts on an increasing scale have been made in housing during the First and Second Plans, the problem of catching up with the arrears of housing and with the growth of population will continue to present serious difficulty for many years to come. Between 1951 and 1961 there was an increase in population of nearly 40 per cent in towns with a population of 20,000 or more. It was reckoned in the Second Plan that the shortage of houses in urban areas might increase by 1961 to about 5 million as comaared to 2.5 million houses in 1951. 4. The growth of population and, in particular, of the urban population suggest:, at Ieast three genera], considerations in relation to the directions in which housing programmes should be developed during the Third and subsequent Five Year Plans. Firstly, housing policies need to be set in the larger context of economic development and industrialisation, both large-scale and the problems likely to emerge over the

21
next decade or two. Proposals relating to location and dispersal of industries will; therefore, be of increasing importance in the solution of the housing problem. In the second place, it is necessary to coordinate more closely the efforts of all the agencies concerned, whether public, cooperative or private. The need to undertake the preparation of master plans for urban areas becomes all the greater, for without these plans there is no means of bringing together and maximising the contribution of different agencies towards well-defined common objectives pursued systematically over a long period. In the third place, conditions have to be created in which the entire programme of housing construction, both public and private, must be so oriented that it serves specially the requirements of the low income groups within the community. In working out the housing programmes for the Third Plan an attempt has been made to bear these consideration? in mind. 5. The housing schemes, which have been operating in recent years, namely, those relating to subsidised industrial housing, low income group housing, slum clearance, plantation labour housing, land acquisition and development and village housing will be continued and expanded in the Third Plan. There will be special emphasis on land acquisition and development as this is basic to the success of all housing programmes. New programmes for housing economically weaker sections of the community, dock labour and pavement dwellers will also be taken up. Concerted efforts will be made to prepare master plans and regional development plans of metropolitan and industrial cities and resource regions. Provision has also been made in the Third Plan for undertaking experimental housing and research in bui'ding techniques and for collecting housing statistics, the absence of which has been a great handicap in the past. OUTLAY AND TARGETS 6. For housing and urban development programmes, the Third Five Year Plan provides Rs. 142 crores as against the revised outlay of Rs. 84 crores in the Second Plan. In addition, funds for housing are also expected to be provided by the Life Insurance Corporation, whose contribution is estimated at about Rs. 60 orores. The distribution of the outlay for various schemes in the Third Plan is shown below : Table 2: Outlay in Third Plan1961-66 (Rs. crores) scheme (0 Ministry of Works, Housing and Supply subsidised industrial housing dock labour housing slum clearance, slum improvement and cons truction of night shelters low income group housing middle income group housing in Union Territories village housing plantation labour housing land acquisition and development provision for experimental housing, reasearch and statistics total (;';') other schemes States' housing schemes town planning including preparation of master plans. urban development schemes total outlay 29-8 2-0 28-6 35-2 2-5 12-7 0-7 9-5 1-2 122-0 2-3 5-4 12-3 20-0

22
programmes included in the Plan (i & ii) (Hi) programmes to be financed from the f nds expected to be provided by the Life Insurance Corporation . grand total The following are the main targets proposed for the Third Plan: Table 3: Targets in Third Plan number of houses/tenaments subsidised industrial housing low income group housing slum clearance Village housing 73000 75000 100000 125000 142.0 60-0 202-0

7. Besides the provision for housing mentioned above, there are certain additional housing programmes financed from other sources. The coal and mica mine welfare funds are expected to provide in the Third Plan about Rs. 14 crores for the construction of 60,000 houses. The programme for the welfare of backward classet includes allotments for housing. Tentative estimates of the Ministries of Railways, Commerce and Industry, Communications and others suggest that over the plan period they may build about 300,000 houses for their employees at an approximate cost of Rs. 200 crores. Broadly, in ths course of the Third Plan, under various housing schemes and the construction programmes of Ministries, 900,000 houses might be constructed as compared to about 500,000 in the Second Plan. 8. In the private sector there has been an increasing amount of construction, but it is difficult to estimate its precise magnitude. The net investment on housing and other private construction, which was reckoned at Rs. 900 crores in the First Plan, is estimated at about Rs. 1000 crores in the Second Plan. In the Third Plan private investment on housing and other construction is placed at about Rs. 1125 crores. Housing Boards 9. In the present stage of development, finance provided directly by Government can meet only a fraction of the demand for housing. Institutional arrangements are, therefore, required which will enable large numbers of persons, many of them with small incomes, to build for themselves. In this connection, the possibility of setting up a Central Housing Board is at present under study. Such an organisation could help to channel additional funds into housing, encourage the flow of credit on easy terms amongst other things by means of insured mortgages, improve lending practices and provide the machinery needed for the creation of a sound mortgage market in housing. It could, for instance, raise finance, directly to some extent and provide loan assistance to State Governments or State Housing Boards for purchase and development of land, construction of houses and acquisition and redevelopment of slum areas. Funds obtained from the Life Insurance Corporation and from the Central Government could be channelled through it. In States where Housing Boards already exist, they generally serve as construction agencies for implementing the State housing programmes. The existence of a Central Housing Board and of Housing Boards in the States could in due course, secure for the development of housing resources which might not be otherwise readily available. Together these institutions could assist in evolving housing policies which would facilitate construction of houses by persons of limited means for their own use and also enable banks and other financial institutions to undertake various services. It is proposed to consider these aspects further with a view to implementing the housing programmes of the Third Plan and laying the foundations for larger development in the future. Land Acquisition And Development

23
10. Availability of building sites in sufficient numbers and at reasonable rates is essential for the successful implementation of the housing programme. During the Third Plan, therefore, a fair share of the resources available for housing is being devoted to land acquisition and development. A scheme was introduced in 1959 for giving financial assistance to Start Governments in the shape of loans repayable over a period of 10 years for acquiring and developing lands in selected places. The land acquired is to be utilised for house building under different schemes and for the provision of related community facilities like parks, playgrounds, schools, hospitals, shops, post offices etc. In the Third Plan a programme entailing an outlay of Rs. 26 crores (inclusive of the contributions to be made by the Life Insurance Corporation) is envisaged for land acquisition and development. The resources made available under this programme could serve as nuclei for 'revolving funds' in the States and be utilised for bulk acquisition and development of land. Housing of Industrial Workers 11. Under the subsidised industrial housing scheme which was formulated in 1952 for providing housing to industrial workers employed in factories and mines, mainly in the private lector, the Central Government provides to State Governments, State Housing Boards and municipal bodies 50 per cent of the cost as loan and 50 per cent as subsidy. Industrial employers and cooperative societies of industrial workers are given financial assistance to the extent of 75 per cent and 90 per cent respectively, the extent of subsidy in both qases being 25 per cent. To enable industrial workers to provide the remaining 10 per cent of the cost, they have been allowed to draw non-refundable loans from their provident fund accounts. By the end of the Second Plan, the construction of about 140,000 tenements costing Rs. 45 crores had been approved. About 100,000 tenements had been completed and the rest were under different stages of construction. 12. The scheme should have made greater progress if even the subsidised rate of rent had not proved a comparatively high charge for workers, with the result that in some areas the tenements which have been constructed have not been occupied by industrial workers. The question of bringing down the rent so that jt should be within the paying capacity of workers needs further study. Along with it, arrangements should be made to provide cheap transport for taking workers to their places of work. Certain aspects of the scheme have been revised already. Workers have a larger measure of choice as between different types of accommodation. Open developed and demarcated plots of land along with some building and roofing materials can be taken up by workers, so that they may build huts of the prescribed pattern themselves. For those who do not wish to go in for 'self-built' huts on open developed plots, 'skeletal' housing with the necessary foundation, plinth and roof to form a stable structure is provided. The rent for open developed plots is about Rs. 2 to Rs. 3 per month, whereas for skeletal housing it is about Rs. 8 per month. For nonfamily workers hostel or dormitory accommodation is built. A few other modifications such as extension in the period of repayment of loan, increase in the ceilings of standard costs to fit in with the rise in prices of building materials and labour, liberalisation of allotment rules and provision of developed sites to employers and cooperatives have been introduced. Recently employers have been granted a concession in income-tax in the shape of an initial depreciation allowance of 20 per cent on the cost of construction of new houses for their low-paid employees, in addition to exemption. for three years from payment of income tax on the rental value of small houses. 13. Despite the steps which have been taken to make the industrial housing scheme more attractive to employers, much progress cannot be achieved without the employers generally accepting the housing of a substantial portion of workers as an essential obligation. It is necessary to remember that housing conditions for industrial workers have continued to deteriorate and that without improvements in this direction efforts to increase industrial efficiency and productivity will also be affected. The problem is, therefore, one of working out arrangements for new industries as well as for the established industries which might be feasible from the financial and other aspects and would also result in an effective contribution towards the solution of the housing problem. For instance, new establishments with a prescribed limit of paid-up capital (say, Rs. 20 lakhs or more) could be placed under the obligation of constructing one-half of the housing required by their labour over a period of perhaps 10 years. In the case of the older establishments, in any specific scheme that is worked out the contribution already made

24
by an employer to provide housing for their workers should be taken into account. In these industries also, over a period, the aim might be to ensure that about 50 per cent of the housing required is made available directly by the industries and the rest as part of the general scheme of housing development. To the extent the employers are unable to construct directly the Government or the Housing Boards may take up construction. In such cases, the employers could contribute towards the cost of construction. These and other suggestions should be considered jointly in consultation with representatives of employers and workers with a view to evolving a satisfactory scheme. Housing of Dock Workers 14. A provision of Rs. 2 crores has been made in the Third Plan for giving loan assistance to Dock Labour Boards at Bombay, Calcutta and Madras to enable them to build houses for workers registered with them. A suitable approach might be for Government to grant loans to the extent of 80 per cent of the cost of construction. With the provision made in the Plan, it should be possible to build about 5000 houses. In recent years port development has been undertaken on a large scale, and in cooperation with the port authorities a coordinated view of the housing problems in the ports should now be taken. Holding For Low Income Groups 15. The low income group housing scheme provides for grant of loan assistance upto 80 per cent of the cost of the dwelling, subject to a maximum of Rs. 8000, to persons whose income does not exceed Rs. 6000 per annum. Assistance on this scale is also given to local bodies, public institutions run on no-profitno-lo&s basis, recognised hem'.h, ctK;:Lab-c and educational in-ti-tutions and cooperative societies. 16. Since the scheme began in 1954, loans for about 85,000 houses have been sanctioned, and by the end of the Second Plan about 53,000 houses were completed. There is considerable demand for loans under this scheme. Progress has been gr:uter in towns where developed sites are available. It is felt that in the Third Plan special steps should be . taken to enable those sections of the community which are economically weak to obtain clue benefits from the scheme, such as those with an annual income of Rs. 1800 or less. Persons in this category are in a position to pay rent in the range of Rs. 10 to 12 or, at the most, Rs. 15 per mensem. The principal methods for providing housing for diem would appear to be either through construction of rental housing mainly by Housing Boards and local bodies or through housing cooperatives. As a basis for further consideration, it might be possible to provide local bodies with loans at a concessional rate of interest repayable over a long period. Apart from pucca houses, the question of providing open developed plots or skeletal housing on the lines of the industrial housing and slum clearance schemes could be considered. Housing cooperatives comprising economically weaker persons could also be given similar assistance. Roughly about a third of the provision under the low income group housing scheme could be earmarked for economically weak persons. Exemptions from State and local taxes would also need to be considered. As more institutional finance for the housing of low income groups generally becomes available, larger proportion of the funds provided by Government could be utilised for housing schemes for the economically weaker sections. Plantation Labour Housing 17. The Plantation Labour Act, 1951, requires very employer of plantation labour to prov-de and maintain for all workers and their families residing in plantations, necessary housing accommodation, at the rate of at least 8 per cent of tho workers every year, until all such workers hav been provided for. A number of planters, particularly the smaller ones, found it difficult to discharge this obligation due to inadequacy of financial resuorces. Accordingly the plantation labour housing scheme was introduced in 1956 for assisting such planters as needed financial help Under this scheme, loans are given to the extent of 80 per cent of the cost of construction of the dwelling, excluding the cost ot land and its development, subject to a maximum f Rs 2400 per house in North India and Rs.1920 per house in South India. The planters are required to contribute the balance of 20 per cent from their own resources.

25
18. By the end of the Second Plan only 700 houses costing Rs. 14 lakhs had been sanctioned and 300 houses completed. The main difficulty in the way of the scheme has been the inability of the planters to furnish adequate security for the loan. The scheme requires the planters to mortgage to the State Governments land and houses built on it as security for the loan. The planters are not in a position to comply because their land and other properties are usually mortgaged with banks as security for the loans advanced to them for the normal working expenses of the plantations. 19. To make it easier for planters to avail of the loans, some State Governments have relaxed the security conditions. A 'Pool Guarantee Fund" Is also proposed to be set up with an additional -z per cent interest charged on loans to the planters and the interest earned thereon' from year to year. This Fund will serve as collateral security for the grant of loans and the losses, if any, in excess of the assets in the Fund will be shared equally by the Central Government, the State Government and the Commodity Board concerned. Middle Income Group Housing 20. A scheme for providing loans to middle income groups was introduced in February, 1959, with funds provided by the Life Insurance Corporation and is meant for persons whose income is between Rs. 6000 to Rs. 12,000 per annum. Loans to the extent or 80 per cent of the cost of the house subject to a maximum of Rs. 16,000 (Rs. 20,000 in the case of those who do not already possess a plot of land) are provided under the scheme. The loans are advanced to individual borrowers through the State Governments at the rate of 5i per cent per annum. By the end of the Second Plan a sum of Rs. 10.5 crores was disbursed to State Governments and Union Territories. Loans were sanctioned t 3600 applicants and about 500 houses were constructed. Progress was comparatively small in the initial stages as this was a new scheme for which rules for the grant of loans had to b drawn up and other arrangements made. Th Third Plan allocations do not provide finance for this scheme except in the Union Territories, but it is likely that from funds provided by the Lift Insurance Corporation about Rs. 20 crores might become available for the middle income group housing scheme and for the rental housing scheme for State Government employees mentioned below. Rental Housing For State Government Employees 21. The object of the rental housing schcnr for State Government employees is to assist State Governments in providing housing accommodation to their low paid employees. Under the scheme, which was introduced in February1959 the Life Insurance Corporation grants loans carrying* an interest of 5 per cent per annum to State Governments, and the loans are repayable over a period of 20 years. A sum of about Rs. 7 crores was given to State Governments under the scheme during the Second Five Year Plan, and 2500 houses were sanctioned and 735 were comoieted. Slum Clearance And Improvement 22. The Third Plan provides for a programme of about Rs. 29 crores for slum clearance and improvement. A scheme for giving financial assistance to State Governments and local bodies to enable them to clear some of the worst slums in big cities was initiated during the Second Plan. By the end of the Second Plan 208 projects costing about Rs. 19 crores and involving re-housing of 58,200 families living in slum conditions v/ere taken up in different towns and cities. About 18,000 units have been already completed. For such of the families as cannot afford to pay even the subsidised rent of a pucca tenement, the sqheme provides for skeletal housing and open developed plots with a separate washing platform and latrine for each family, leaving it to the slum dwellers to build huts of a prescribed pattern themselves on a self-help basis in accordance with the technical directions of the State Government. 23. Some of the difficulties which came in the way of implementation of the slum clearance and improvement programme were the lengthy and time-consuming procedures of acquisition of slum areas, non-availability and high costs of alternative sites near existing places of work, inability of the slum

26
dwellers to pay even the subsidised rent and their reluctance to move from the areas selected for clearance. Some States like Mysore, Madras, Madhya Pradesh, Assam, Punjab, West Bengal and Delhi Administration have enacted legislation for speedier acquisition of slum areas and for scaling down the rate of compensation. Similar legislation is also needed elsewhere. The scheme was reviewed by the Advisory Committee on Slum Clearance and by a Study Team set up by the Committee on Plan Projects. These Committees recommended that while long-term plans were required, it was even more essential to think of short-term measures to relieve acute distress in the slum areas and, as an immediate measure, minimum amenities like sanitary latrines, proper drainage, uncontamina-tcd water supply, moderately good approach roads, paved streets, and proper lighting should be provided. Following consideration of the reports of these two committees the scope of the slum clearance programme was extended to include slum imporvement. Larger resources were also provided as a matter of immediate priority for dealing with slum problems in six major cities, namely, Calcutta, Bombay, Madras, Delhi. Kanpur and Ahmedabad. In these cities, the total subsidy for slum clearance was raised from 50 per cent to 62i per cent and the Central Government'* share in it from 25 per cent to 37 percent. 24. The maximum effort under this scheme should continue to be concentrated on the six cities mentioned above. However, it is proposed that in the Third Plan, in principle, slum clearance and improvement work could be taken up wherever State Governments consider that the slum problem exists in acute form. In view of limitations of resources, it is considered that ordinarily towns and cities with a population of 100,000 or more should receive priority. It is -suggested that State Governments may arrange for surveys of slum areas, classifying them in two categoriesareas which may have to be cleared and re-developed completely, and those which can be made habitable through the improvement of environmental conditions. If the owners of slum properties falling within the second category fail to carry out the improvements, these should be carried out through local bodies and the cost recovered from the owners; where necessary, the properties could be acquired or requisitioned. Wherever improvements are carried out by local-bodies in slum areas on public lands or requisitioned lands, it may be necesary to give them grants for providing essential services. The cooperation of voluntary organisations and social workers should be fully enlisted in carrying out the programme of slum clearance. 25. While steps are being taken to clear or improve the existing slums, it is equally important that newslums should not be allowed to grow up. This is by no means an easy object to achieve. Besides preparing and strictly implementing master plans for all growing towns and cities, it will be essential to enforce municipal bye-laws and building regulations, and at the same time, to expand housing facilities for low income groups and for economically weaker sections. As transitional measures, night shelters and dormitory accommodation for pavement dwellers and non-family workers have considerable urgency. Similarly, the housing of sweepers and scavengers must receive special attention. In selecting slum areas for clearance and improvement high priority should be given to areas predominantly inhabited by sweepers and scavengers. Urban Planning and Land Policy 26. Urbanisation s an important aspect of the process of economic and social development and is closely connected with many other problems such as migration from villages to towns, levels of living in rural and urban areas, relative costs of providing economic and social services in towns of varying size, provision of housing for different sections of the population, provision of facilities like water supply, sanitation, transport and power, pattern of economic development, location and dispersal of industries, civic administration, fiscal policies, and the planning of land use. These aspects are of special importance in urban areas which are developing rapidly. The number of cities with a population of 100,000 or more has increased from 75 in 1951 to 115 in 1961, and their population now forms about 43 per 'cent of the total urban population. Of the aspects mentioned above, in the long run, the most decisive are the pattern of economic development and the general approach to industrial location. The broad objective must be to secure balanced development between large, medium-sized and small industries, and between rural and urban areas. While this is by no means easy to realise, the main ingredients of developmental policy are the following:

27
i. ii. As far as possible, new industries should be established away from large and congested cities. In the planning of large industries, the concept of region should be adopted. In each case, planning should extend beyond the immediate environs to a larger area for whose development the new industry would serve as a major focal point. In community development projects or other areas within a district the rural and urban components of development should be knit into a composite plan based in each case on schemes for strengthening economic inter-depen-dence between towns and the surrounding rural areas. Within each rural area the effort should be to secure a diversified occupational pattern in place of the present extreme dependence on agriculture.

iii.

iv.

In considering the nature of the urban problem to be phased over the next decade, it is necessary both to deal with the situation which exists now and to ensure action along the right lines for the future. 27. Costs of urban development.Much of the deterioration which occurs in living conditions in rapidly growing urban areas is due to the high costs of urban development, in particular, the costs of providing housing, water supply, drainage, transport and other services. The situation is further accentuated by the existence of unemployment, overcrowding and the growth of slums and the fact that a significant proportion of the population in many cities is without shelter. The problems to be faced are formidable in size and complexity, and solutions for them can be found only if their nature is fully appreciated not only by the State Governments, but also by municipal administrations and by the public generally and if an increasing amount of community effort and citizenship participation can be called forth within each urban area. There are certain minimum directions in which action should be taken during the Third Plan so that, for the future, at any rate, a correct course is set. These are : i. ii. iii. control of urban land values through public acquisition of land and appropriate fiscal policies; physical planning of the use of land and the preparation of master plans; defining tolerable minimum standard* for housing and other services to be provided for towns according to their requirements and also prescribing maximum standards to the extent necessary;and strengthening of municipal administrations for undertaking new development responsibilities.

iv.

28. Control of urban land values.The most important elemev.t in raising housing and other costs and in restricting the scale on which improvements can be undertaken in the interests of low income groups is high land prices. Apart from normal increases, a major factor in raising land prices is speculation. In some towns, there are powerful factors like the setting up of new industries and the establishment of new public and other offices which stimulate speculative activity. However, since the rapid economic development of the country as a whole is under way and exerts its influence in all directions, elements of rising land values are present in larger or smaller degree in almost every urban area. In several urban areas, there is need for drastic measures, legislative and others, for freezing land values and also for undertaking large scale public acquisition of land. According to the nature of the situation the need for adequate measures for taxation of urban land and property exists, without exception, in all towns. 29. Specific measures for checking rise in land values can become effective if there is strict regulation of the uses of land, especially in and around metropolitan cities, large and growing cities and new industrial towns. It is for such towns that the preparation of master plans referred to later is of special importance. The following are the principal steps to be taken for controlling land values: 1. Issue of notifications for freezing land values with a view to early acquisition of land by public authorities.

28
2. Acquisition and development of land by public authorities in accordance with the interim general plans is essential for preventing speculation. The land should bs acquired in bulk, although, depending upon local circumstances, the programme of acquisition would have to be suitably phased. Acquisition proceedings should be speedy and legal proceuures should be simplified as far as possible. It is important that development of the acquired lands should be expedited. The essential services have to be provided by public authorities. Besides development undertaken directly by them, under appropriate regulations, cooperative and private agencies should also be utilised 3. Allotment of land on a lease-hold basis. As a rule, lands acquired by public authorities should be given out onl-f on a lease-hold basis so that, besides the recurring income secured on account of the ground rent, a fair share in the increase in the value of land continues to accrue to the community. 4. Betterment levies and taxation of agricultural lands put to non-agricultural users. These are growing sources of revenue for States and local bodies, but in several States the existing provisions are inadequate. 5. Capital tax on transfer of free-hold lands. 6. Taxation of vacant plots in developed areas with power to acquire if they are not built upon within specified periods. 7. Setting a ceiling on the size of individual plots and limiting the number of plots which a single party may be permitted to acquire. 8. Determination of appropriate norms of rent and regulation and control over rents These measures lie at the base of proposals for planned urbanisation and have therefore to be given concrete shape as a matter of high priority. 30. Preparation of master plans.To secure orderly development of towns and cities, town planning is indispensable. The first step in this direction will be the preparation of interim general plans establishing the broad pattern of land use to which developments should conform. This should be followed by the preparation of detailed master plans for urban and regional development. Master plans should be drawn up in the first instance for metropolitan cities. State capitals, port towns, new industrial centres and other large and growng cities where, in the ordinary course, conditions are likely to deteriorate further. A tentative list* of such towns and cities has been drawn up for the Third Plan period. In redeveloping existing cities and building up new towns, it is of the utmost importance that the regional approach should be followed. This is necessary both for securing a proper balance between social and economic development and for achieving greater cultural unity and social integration in the life of developing urban communities. Greater attention to the environment and appreciation of the day to day needs of the people can go a long way to give to all citizen a sense of community in urban life. 31. The primary responsibility for the preparation of master plans lies with State Governments and the local administrations concerned. For the Third Plan, limited provision has been made at the Centre for assisting the State Governments in the preparation of master plans for these cities and towns. An essential preliminary is the enactment of suitable legislation on town and country planning. It is also necessary that State Governments establish Town Planning Organisations with adequate trained personnel. The Central Regional and Urban Planning Organisation can assist State Governments and organisations concerned with the establishment of new towns, in the preparation of master plans and informulating suitable urban and regional development policies. 32. Standards.For the solution of the housing problem for the bulk of the population and for the elimination of slums and other evils, it is essential that certain minimum standards of residential and office accommodation and other services are set, keeping in view the requirements of the community as a

29
whole and the limited resources available. It is also desirable that maximum standards should be prescribed. This will go some distance in making the investment on housing yield more socially desirable results. Luxury housing and waste of urban land should be prevented so that larger numbers of modest dwelling units can be constructed for the same investment. For achieving this objective, the principal methods are (a) adoption of fiscal measures including local taxation, aiming at discouraging diversion of funds for luxury housing, (b) advice on building designs, (c) modifications in existing building bye-laws of local bodies so as to facilitate construction of low cost housing in accordance with austere standards and specifications, (d) prefabrication of building components, and (e) greater use of locally available cheaper materials. The systematic study of standards and advice relating to them constitute important aspects of the work of the National Buildings Organisation. 33. Strengthening municipal administration. At the local level, municipal administrations alone can undertake satisfactorily the task of providing the services needed for development in urban areas, expansion of housing and improvement of living conditions. Most municipal administrations are not strong enough to carry out these functions. They should be sufficiently strengthened by increasing their resources and personnel and by enlarging their jurisdiction and functions. Where the present limits of the selected urban areas are insufficient to cope with the problem, they should be extended. In the case of growing towns, it would be desirable from (he beginning to provide for larger rather than smaller municipal areas, so that these towns and the rural areas surrounding them can be developed together in a coordinated manner without having to face difficulties later on account of separate jurisdictions. Inevitably, municipal administrations have larger functions than in the past for providing civic services. It is envisaged that a large proportion of towns will in future have separate development plans of their own and these will be integrated with the plans of States. In this context, a careful review of the administrative and financial measures which should be taken in cities with a population of one lakh or more other than the metropolitan areas should be undertaken in each State. Rural Housing And Plannlng 34. Improvement in housing conditions in the villages has a manifold significance. It raises the level of living, provides greater opportunities for work and is a vital element in the transformation of rural life. Yet, because of the magnitude of the problem and iis inherent difficulties the task of improving housing conditions in the villages has to be viewed, not as an isolated objective, but as a part of the larger scheme of rural development. Consequently, rural housing is intrinsically a part of community development and village planning. The specific programme for rural housing as such is intended to supplement the resources of the community development movement at the level of the block and the village by way of assistance in the form of technical advice, demonstration, provision of improved designs and lay-outs, better use of local materials and, to a limited extent, provision of finance. Its essential object is to help create healthy environmental conditions for all sections of the village population and for balanced development of rural life as a whole. It is against this background that the village housing scheme which was introduced in 1957 has to be considered and its working reviewed. 35. The village housing scheme provides for the selection of villages in groups of four to six and the preparation of lay-out plans for these villages after carrying out physical and socio-economic surveys. The implementation of lay-out plans and rebuilding of houses is taken up in stages so that the entire village is remodelled over a period of 8-10 years. Cooperatives for the manufacture of different building components are organised. Assistance in the shape of loans'up'o 662/3 percent of the cost of construction subject to a maximum of Rs. 2000 per house is given for building of houses. Loans are also given for carrying out improvements in existing houses in accordance with the standards prescribed by the State Governments. Provision has also been made in the scheme for acquisition of land required for streets, community buildings, new house sites and for thinning out densities etc. Research-cum-training centres have been established at six centres for promoting research in improving local building materials and construction techniques and for training personnel required for executing the scheme. The rural housing celis set up in the States for preparing lay-out plans and model designs etc. have been further strengthehed.

30
36. During the Second Five Year Plan about 3700 villages were selected and soc'o-economic and physical surveys of about 2000 villages. were completed. Lay-out plans of 1600 villages were drawn up and loans amounting to Rs. 3-6 crores were sanctioned for construction of about 15,400 houses. About 3000 houses were completed and the remaining houses were under different stages of construction. 37. In the working of the village housing scheme during the Second Plan it has been observed that as a rule the scheme has been taken up in isolated villages and not in groups of villages as was envisaged in the scheme. The latter aspect is important because it is only when a small' group of villages is taken up together that it is possible to arrange to set up a brick kiln or arrange for the supply of components on a cooperative basis to meet a continuing demand. The full impact of a housing programme in the rural area by way of increase in employment and improvement in environmental conditions cannot be obtained unless the programme is undertaken systematically in groups of adjoining villages. Lay-out plans are at present prepared generally for se'ected villages. They provide for the extension of the village site, improved village streets and drainage and land for such common amenities as the village school, the playground for school children and the panchayat bhavan. However, not enough is being done in these directions, and the available funds tend to be devoted mainly to the construction and improvement of a small number of houses. It is suggested that the first clain on the resources provided for the village housing scheme should be on account of the extension of the village site, improvement of roads and drainage and allotment of land for essential purposes of interest to the community as a whole. The key to improved housing is the availability of land for the extension of village site. To the greatest extent possible, the community itself, through mutual arrangement. should be expected to provide the additional land required. However, for assisting the community to acquire land for providing house sites for agricultural workers and Hariinns it may be useful, as suggested later, to provide for a limited measure of assistance. The first place in the programme for improving village housing should be given to housing for Harijans, agricultural workers and those sections of the community whose housing conditions are specially deplorable. For scheduled tribes and scheduled castes in particular, besides funds available under the village housing scheme, assistance by way of subsidy is also given under the programme for the welfare of backward classes. Provisions under the two programmes should be utilised in a coordinated manner. 38. Rural housing cells, which have been set up in the States, and research-cum-training centres are already engaged in designing, houses suited to different parts of the country, and involving the use of local materials. Work in these directions has to be intensified. There is frequently a temptation to resort to houses on urban patterns constructed in brick and cement without sufficient emphasis being placed on the use of local materials, economy of construction cost, cultural traditions and background of the locality and functional requirements of rural life. There is also inadequate stress on community effort in improving roads and drainage, contribution by way of land for the extension of the village site and mutual aid in constructing improved housing. The scale of the rural housing problem is so vast that provision of additional funds by itself, necessary as this may be, can produce only a small impact. In the main problem is one of creating a widespread desire for better living, evolving practical methods for improving the village environment and building better houses at relatively small cost based mainly on cooperative selfhelp, community effort and contribution and the use of local building materials. 39. In the Third Plan it will be essential to link up the programme more closely with different schemes of community development such as provision of water supply, roads, drainage, public health, education etc. It is also necessary that rural housing activities should be effectively coordinated with other connected programmes of rural development so as to ensure that the villages selected under the village housing scheme derive the maximum benefit from the limited resources which are available. For example, the subsidy admissible under the programme for ameliorating the living conditions of scheduled castes and scheduled tribes should be made available to members of these communities residing in the villages selected under the scheme. Village and small industries should also be set up to the extent possible in the selected villages. Special attention has to be given to the setting up of brick-kilns and local production of building components, such as doors, windows, etc. For this purpose, cooperatives should be organised, and they should be given technical assistance and materials such as wood and coal-dust. 47 170 Plan. Com./ND/91

31
40. A number of new villages are coming up on account of reclamation of large tracts of land and development of new areas for agriculture. It should be ensured that the lay-out plans of such villages are prepared in advance and they develop in a planned way. In the case of existing villages where the problem is, in part, one of redevelopment, the success of the programme will depend upon their proper selection. The scheme already lays down that amongst other considerations preference will be given to (a) villages which are situated in flood-affected areas, (b) villages which have substantial populations of backward classes and agricultural labourers, (c) villages in which consolidation of holdings has been completed or in which programmes for increasing agricultural production are being successfully implemented, and (d) villages whose inhabitants happen to be displaced because of major development projects or natural calamities. Villages which have concentrations of artisans should also be given preference. Evidence of cooperative self-help and willingness on the part of the village community to contribute land for the extension of the village site and to give priority to the housing of Harijans and other backward classes should be important considerations in the selection of villages suitable for a programme of village housing. In selected villages in which these conditions are fulfilled, with a view to facilitating the total effort that is called for, it may be necessary to give a limited amount of assistance by way of grant to the village panchayat for undertaking the improvement of village streets and drainage as an essential step in the programme for replanning the village as a whole. 41. House sites for agricultural workers.In the land reform legislation enacted in some States provision has been made for conferring rights of occupancy or ownership on tenants of village house sites. In a few States there are provisions for transferring ownership on payment of compensation. It is essential that priority should be given to the provision of land for families of landless agricultural workers. Wastelands and bhoodan lands should be used for this purpose to the extent possible. In some congested villages, while emphasising the obligations of the village community, it may be necessary to supplement its contribution in providing the land needed for extension of the village site, through acquisition of additional land for house sites tor agricultural labourers. It is proposed to earmark Rs. 5 crores by way of grant under the village housing scheme for assisting States in securing house sites for landless agricultural workers in villages in which they form a fairly large part of the population and a comprehensive housing programme is taken in hand. Housing Statistics 42. The present position of housing statistics is unsatisfactory in relation to the needs of planning. Except for data regarding the total number of houses and house-holds in the country thrown up by the decennial census there are no proper statistics on such aspects as current building activity, additions to houses made each year, quantity and cost of materials used, production and consumption of building materials and prices of building materials. Certain basic items of information on housing conditions have been collected in the population census 1961. These will facilitate compilation of an inventory of housing in the country and throw useful light on structural, functional, size and tenure characteristics. 43. The National Buildings Organisation is arranging for the collection of housing statistics in the public sector through various construction agencies such as the Central and State Public Works Departments and others. In other fields., the actual collection of statistics has to be undertaken by the appropriate agencies, while questions of method and approach have to be considered by the National Buildings Organisation and the Central Statistical Organisation. In view of the unsatisfactory state of statistics regarding building and construction, in November, 1960, the Central Council of Local Self-Government proposed that local bodies should modify their bye-laws so as to make it incumbent on applicants, both at the time of applying for building permits and for issue of completion certificates, to provide detailed information about investment and other aspects. In February 1961, the Central Statistical Organisation requested State Statistical Bureaus to initiate the collection of information from corporations and municipalities on a uniform pattern. The forms suggested by the Central Statistical Organisation provide for a common classification of buildings and seek information regarding the nature and type of construction, area, estimated cost, number of dwelling units in the case of residential construction, and materials used for walls, roof and floor. As the subject is one of considerable complexity and large numbers of cities and towns are involved, it would be desirable first to establish an adequate system of

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building statistics in a small number of cities and towns and to phase the programme for extending it to other centres. To be useful, it is important that the returns should flow at regular intervals and in the ordinary course of administration of building rules and bye-laws. 44. Statistics of production and consumption of building materials are also needed from time to time to survey the supply and demand position ol materials of building construction. While figures of production are already available in the case ot organised industries such as steel, cement, etc., no reliable estimates of materials such as bricks, lime etc. produced in the unorganised sector are available. These may be collected through periodic sample surveys. Statistics of consumption and requirements of building materials could, however, be developed through the use ot technological ratios related to value of construction on the basis of certain type studies. Some type studies have already been carried out in the country and there is need to increase their scope and coverage. Prices of selected building materials and wage rates at selected centres in the country should also be collected regularly and published by the National Buildings Organisation and State Statistical Bureaus. Research And Training 45. A considerable volume of research in the field of housing and construction has been undertaken in recent years at the Central Bunding Research Institute and at other cenires. Since its establishment in 1954, the National Buildings Organisation has also sponsored a series of research projects and endeavoured to make the results of research more widely available. Thus, investigations have been carried out regarding techniques and materials for water proof renderings for mud walls, effect of wall thickness and ceding heights on thermal insulation, utilisation of low-grade gypsum tor light weight partitions, masonry mortars, hollow bricks and tiles, utilisation of waste products like blast furnace slag for the production of light weight aggregates and the influence of climatic and regional factors in relation to designs of houses and other aspects. Research in housing and construction is essential for reducing building costs and improving the quality of construction, and programmes now in hand should be further intensified. The training of different types of construction workers is an important factor in securing these objectives and has to be organised much more extensively and systematically than in the past. The work of research-cM/n-traming centres for rural housing has far-reaching interest, and the results achieved in evolving new designs of rural houses and fuller use of local building materials should be carried into the field through education and practical demonstration. 46. With the growth of population in towns and cities and the progress of the economy, problems of housing and urban and regional development will come to occupy an increasingly critical place in the successive Five Year Plans. The right solutions to these problems are of great consequence both for social stability and for general welfare. In varying degree, these problems are faced both by advanced and by less-developed countries, and over the years a considerable body of knowledge and experience has been built up by the United Nations and other international agencies as well as by research centres and institutions abroad. The National Buildings Organisation, which already serves as a Regional Housing Centre for research and study of the problems of hot and arid zones in the ECAFE region can make the results of studies and experiments undertaken by other countries and international organisations available to construction agencies and organisations in different parts of India.

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4th Five Year Plan

Chapter 9:

COOPERATION AND COMMUNITY DEVELOPMENT

Cooperation The volume of cooperative credit (short and medium-term) for agricultural purposes increased from Rs. 203 crores in 1960-61 to Rs. 429 crores in 1967-68 and an estimated Rs. 490 crores in 1968-69. Longterm credit increased from Rs. 12 crores in 1960-61 to about Rs. 120 crores in 1968-69. Appreciable progress took place in the cooperatively organised processing of agricultural produce mainly in the sector of sugar factories, which now account for about a third of the total sugar production. The value of agricultural inputs distributed by cooperatives rose from about Rs. 36 crores in 1960-61 to rbout Rs. 250 crores in 1968-69. Of the inputs, the largest item consists of fertilisers and the value of these distributed by the cooperatives increased from about Rs. 28 crores in 1960-61 to needy Rs. 200 crores in 1968-69, representing about 60 per cent of the total consumption of fertilisers in the country. The total value of agricultural prod 'ce handled by cooperative marketing and processing societies rose from Rs. 174 crores in 1960-61 to an estimated Rs. 583 crores in 1968-69. The value of retail consumer trade undertaken by cooperatives in rural areas recorded an increase from Rs. 17 crores in 1960-61 to Rs. 275 crores in 196869. The corresponding figures for turn-over in urban areas were Rs. 40'crores in 1960-61 and Rs. 270 crores in 1968-69. 9.2. Apart from quantitative progress, there were several organisational developments of significance during this period. One of them was the emergence of national cooperative federations. The formation of the national federations and the reorganisation of the National Cooperative Union of India at the apex, added a new dimension to the cooperative structure. Another important development was the reorganisation of the cooperative training programme. This had two main aspects. A new stress was laid on instruction in business management. In pursuance of this objective, a Central Institute was started at Bombay in 1964 to impart training in business management to key personnel engaged in consumer cooperation. This was merged in 1967 with <he National Cooperative College and Research (nssitute, Poona thus leading to the estfiblishirent of Vaikumh Mehfa National Institute of Cooperative Management. Secondly, following the recom-met'dations of the study tea.m on Cooperative Training (1961), a decision was taken to transfer responsibiiity for the management of training centres to the cooperative unions both at the national and State levels. The National Cooperative Union of India set up a special committee, called the Committee for Cooperative Training on which devolved the task of running the National Institute and the cooperative training colleges. In a number of cases, the State Governments transferred the charge of their cooperative training Centres to State Cooperative Unions. 9.3. The cooperative movement has been uneven in i's development in different regions as well as in c'ifferent sectors of cooperative activity. So far as cooperative credit is concerned, inadequacy of development is particularly marked, though in different degrees, in the eastern States of Assam, West ficis'r-i], Bihar and Orissa, and in Rajasthan. The eastern region, with about 27 per cent of the rural popu'ation, accounted for only about 9 per cent of cooperative credit. An informal group, constituted by the Reserve Bank of India, examined the institutional arrangements for agricultural credit in 1964, and in view of the serious gaps which existed pan'cularly in the States mentioned, recommended the establishment of agricultural credit corporations as a transitional arrangement. In pursuance of this recommendation, necessary legislation has recently been enacted by Parliament. 9.4. While, for the country as a whole, cooperative short and medium term agricultural credit nearly doubled during 196068, the progress towards development of a viable structure at the level of the primary credit societies and central cooperative banks has been much below expectations. Two factors

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have contributed to this situation. The firsf has been the slow progress in the programme of organising viable primary credit societies by amalgamation of the non-viable societies. The second has been the increase in overdues. At the level of (he primary credit societies, the proportion of over-dues to outstandjngs increased from 20 per cent in 1960-61 to 32 percent in 1967-68. For central co-operative hanks, the increase was from 12.4 per cent to 25 per cent. Of 344 central cooperative banl:s, as many as 67 accumulated overdues exceeding 50 per cent of the outstandicgs. This has brought in its wake a new problem of rehabilitation and reorganisation of weak central cooperative banks. 9.5. One of the notable developments of the period has been the organisation of a network of consumer cooperatives in urban areas. The impetus for this development came from the national emergency in 1962. The programme was accelerated during the period following devaluation. Alongside the organisation of consumer cooperatives, arrangements were also made to facilitate flow of supplies directly from the manufacturers. In order to secure working capital accommodation, the Central Government introduced a guarantee scheme under which central or wholesale consumer cooperatives and. consumer federations are eligible for financial accommodation against a margin not exceeding 10 per cent. As a result of these measures, the volume of retail trade handled by consumer cooperatives in the urban areas has vastly increased. The expansion has not been free from adverse features. Many consumer stores are heavily dependent for their business on distribution of controlled items. Approach to Cooperative Development 9.6. Growth with stability being the key-note of the Fourth Plan, agricultural cooperatives on the one hand and consumer cooperatives on the other will occupy a central position in the strategy of co-operative development. Growth of agriculture is largely dependent-on intensive agriculture and this involves a substantial increase in credit, inputs and services. The aim will be to ensure that the services which the farmer requires are institutionalised to the greatest extent possible. In the process of such instilutionalisation, which will not be to a set pattern, the cooperative form of organisation will have ample opportunities not only to expand but also to establish itself as viable and efficient. It will be part of policy during the Fourth Plan to ensure that the opportunities before cooperatives are as large and varied as they can utilise effectively. While it will be for the cooperatives themselves to make the effort involved and reach those standards of efficiency which will enable them to compete with other forms of organisation serving similar purposes, Government for its part will endeavour to assist the cooperatives +o eouio themselves for the f'-k in important aspects such as finance, organisation and trained personnel. In regard to agro-industries, preference will continue to be given to cooperatives in the matter of licensing and institutional finance. 9.7. The outlays on cooperative development programmes are : Table 1 : Outlay on Cooperative Development Programmes Sl.no. (0) 1 2 3 4 5 Outlay (Rs. crores) (1) states union territories centrally sponsored central sector Total

(2) 119.21 4.61 2.4.50 30.25 178.57

In addition a provision of Rs. 90 crores Ins been separately made in the Central sector plan for support to the ordinary debentures of lar.d development banks. Furthermore, provisions have been made in the animal husbandry and dairy plan for development of livestock and dairy cooperatives.

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Cooperative Credit 9.8. One of the basic weaknesses of the cooperative credit system is the non-viability of a large number of primary agricultural credit societies, During recent, years, programmes of rationalisation of the cooperative credit structure, at the primary level, have been under way. As a result, the number of primary agricultural credit societies has gone from 212,000 at the end of 1960-61 to 171,800 at the end of 196768. However,, a number of non-viable credit cooperatives still continue to clutter up the credit system. It is estimated that as a result of reorganisation, about 120,000 potentially viable societies are likely to emerge and that th; rest of the societies would have to be absorbed in the process of amalgamation. One of the most important tasks before the cooperative credit movement is to accelerate the pace of such reorganisation, so that the ccoperattive short and medium-term credit structure is placed on a viable footing. It is proposed tu accord high priority in the Plan to this reorganisation. Necessary provision has been included in the State Plans for this programme for grant of management subsidy to and share capital contribution in the reorganised society. 9.9. Among the bottlenecks in the flow of adequate cooperative credit is the existence of weak district central cooperative barks in several areas. It is estimated that over one-third of the cooperative banks fall in this category. It is proposed to undertake suitable programmes directed towards rehabilitation and reorganisation of such banks. In the interim period it is proposed to devise measures whereby the primary credit societies within the jurisdiction of such banks may be financed directly by the concerned apex banks. 9.10. Slackness in recovery of loans, resulting in mounting overdues in cooperative credit institutions is undermining the soundness of cooperative credit structure in many areas and has led to stagnation, if not recession, of cooperative credit. The feature of heavy overdues is prevalent not only in comparatively less developed States but also in relatively advanced States. This points to the deficiencies in loaning policies of cooperatives, inadequate arrangements for supervision and weaknesses of internal management of cooperatives. Recurrence of natural calamities in sucessive years has also accentuated the problem of overdues in many areas. Systematic efforts need to be made both by the State Governments and by the cooperative banks towards substantial reduction of overdues. The responsibility for initiating legal action against wilful defaulters rests with the primary credit societies. To meet situations where the managements of primary Credit Societies do not take prompt action, there is provision in the cooperative societies Acts of some Staies enabling the central cooperative bank concerned to initiate action on its own against the defaulting. members of primary credit societies. Incorporation of similar provisions in other Cooperative Societies Acts as recommended by the All India Rural Credit Review Committee will be helpful in dealing with the problem of overdues. Att.n-tion will also be paid to strengthening the recovery stciff in the Department and the Central Cooperative Banks. The State Plans include the necessary provision. Wher& failure to repay the overdues is not wilful but due to natural calamities, conversion of short-term loans into medium-term loans should be taken rp expeditiously by having recourse to agricultural credit stabilisation funds maintained by cooperative banks which have been augmented by Governmer:; as instance through a Centrally sponsored scheme and to the National Agricultural Credit stabilisation Fund maintained by the Reserve Bank. Along with the collection of past overdues, action should be taken to prevent their recurrerce in future through adoption of more rational loaning policies relating to size of credit to production outlay, effective linking of credit with marketing, strict supervision over utilisation of loans and above '^ll the education of members of cooperatives in the rights and obligations connected with their membership. 9.11 Tt is needless to stress the importance of bringing about a substantial increase in deposits at various levels. The urgency of this task arises from a number of considerations. Increasing the deposit resource would help to absorb overdues and keep up the Hew of credit in an uninterrupted manner. Tt will also facilitate increase in loanable resources for meeting the growing demand for credit in areas of intensive agriculture. Deposit mobilisation is reces-sary to mop up a part of the increased income in. the rural areas for productive investment. The cooperative credit structure, therefore, has to make effective measures to increase its deposits. There would also be need for State Governments to undertake necessary enabling legislation to amend the Cooperative Societies Act, so that the Deposit Insurance Scheme could be

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extended to the deposits of cooperative banks. Cooperative banks will be encouraged and assisted to open more branches in rural areas for facilitating the flow of credit, for rendering services more efficiently and for tapping larger resources. 9.12. The ability of the cooperative short and medium-term credit structure to expand loan operations is dependent on the viability of the structure, the progress in the rationalisation of primary credit societies, reduction in overdues, mobilisation of deno'ils and liberalisation of loan policies. If the programmes mentioned are effectively implemented, it should be possible for the cooperatives to aim ar drbursing short and medium-term credit of the order of Rs. 750 crores in 1973-74. 9.13. One of the striking developments has been the progress of land development banks which handle long-term credit. These banks new function in all the Slates through, a network of 1250 primary banks and branches. It is proposed to accelerate the pace of expansion of land development banking so that adequate support may be forthcoming for schemes of basic importance to agriculture throughout the country such as land reclamation, soil conservation, land shaping, and construction of surface works, lubewells and other works of minor irrigation. Organisationally and administratively land development banks are equipped to handle loan operations of over Rs. 1000 crores. However, in the light of availabie resources, a loaning target of Rs. 700 crores has been fixed for the Plan. This may subsequently be reviewed in case increased resources become available. For a large number of schemes distributed in different States, constituting in each case a sizeable and integrated project and satisfying the criterion of economic viability, the Agricultural Refinance Corporation will be able to provide refinance of ths order of Rs. 200 crores during the Plan period. Provision has been made for lending support to the ordinary debentures and the special debentures of land development banks. 9.14. As recommended by ihe Ail India Rural Credit Review Committee, the present lending policies and procedures of the Land Development Banks have to be reviewed in a comprehensive manner so a? to bring them in line with the requirement of so'-ind investment credit and to ensure the optimum use of scares long-term resources. In the for-mula<ion of these policies, account should be taken of the special problems of small farmers. Under intensely supervised credit programmes, they should be helped in certain lines of investment either by undertaking such operations on a group basis or by their being enabled to make the repayment over a fairly long period. 9.15. There is need for increasing coordination between the normal lending operations of the Land Development Banks with those pertaining to the Agricultural Refinance Corporation on the one hand and with the operations of the cooperative banks on ihe other. There should be close collaboration between the Land Development Banks and the Cemral Cooperative Banks. Together they should ensure that inputs for production are accessible to the long-term borrower adequately and in time. Coordination should also be ensured in regard to credit for purposes such as the sinking of wells which, depending on the repaying capacity of the borrower, may quality either for a medium-term loan or a long-term one. 9.16. Long-term cooperative credit has hitherto been disbursed to the individual borrowers either by primary land development banks or by branches of central land development banks. In the Fourth Plan, it is proposed to try out on a pilot basis, how far primary credit societies could act as agents of the central land development bank for scrutiny of applications, disbursement of credit, supervision and recovery of instalments. In each State, a limited number of societies satisfying appropriate criteria pertaining to financial strength and operational efficiency wi51 be selected for functioning as agencies of the land development banks in their respective areas. This type of arrangement may be gradually expanded to an increasing number of societies after experience has been gained as a result of this experiment. The bulk of the loans issued by cooperatives is in small amounts of less than Rs. 500 each Even so, farmers with relatively larger holdings are the main beneficiaries of cooperative credit. The traditional emphasis on linking of credit to security offered by a borrower in the form of land and other tangible assets, exclusion of small farmers from the membership of cooperatives, domination of cooperatives by the more affluent and powerful section of the rura! community, absence of tenancy records and prevalence of the system of oral tenancies are among the major factors that have led to denial of adequate credit to small farmers.

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The crop loan system, recommended for adoption, aims at shifting the emphasis in loaning operations from assets nexus to production potential. The system needs to be implemented in full in all the areas. 9.17. Since 1961, Government has been giving grants to cooperative banks and societies as an inducement to them to give larger loans to small cultivators for production purposes. These amounts are credited to special bad debt reserves of cooperatives. Following a review in 1964, the basis for Government contribution to the bad debt reserve fund has been changed and is now related to additional loans given from year to year to small cultivators. So far, a sum of about Rs. 7 crores has been granted by Government for this purpose and a further sum of Rs. 5 crores is expected to be given in the Fourth Plan. 9.18. Jn the Fourth Plan. one of ihe main endeavours will be to orient the policies and procedures of credit cooperatives and land development barks in favour of small cultivators. The All India Rural Credit Review Committee has made a numb?r of recommendations in this direction. These will be sought fu be implemented, the more important changes being in the following directions :

1. If the resources available to a particular society are inadequate to meet the requirements of all its
members, it will seek to ensure that the needs of the small cultivators are adequately met on a priority basis. 2. The larger cultivators will be called upon to contribute a relatively higher proportion of their borrowings towards share capital while the smaller cultivators will invariably be extended the facility of paying their share amount in convenient instalments.

3. Stress will be laid on effective implementation of crop loan system. To ascertain whether the
small farmer is receiving adequate attention, it is intended that the credit limit statements are so separated so as to identify small farmers vi^-a-vis others.

4. Loaning policies of land development banks will be liberalised, e.g., liberalisation in respect of
valuation of landed property offered as security, issue of joint loans for groups of small cultivators, emphasis on the operational and economic viability of the proposed investment and not merely the value of tangible security and phasing of the repaying programme in accordance with the capacity of the small cultivators.

5. Bigger cultivators who can repay loans in shorter periods will be encouraged to avail of medium
term credit for investment, so that larger volume of long-term credit can be made available for small farmers from land development banks. Cooperative Marketing 19.19 Compared to cooperative credit, 'the development of cooperative marketing of agricultural produce is of recent origin. Following the recommendations of All India Rural Credit Survey Report, an integrated programme of cooperative marketing was taken up in the Second Plan and followed up in the Third. As a result, cooperative marketing structure has been built up at various levels. On the eve of the Fourth Plan, there were nearly 3300 primary marketing societies, of which 500 were special commodity marketing societies. The higher level of cooperative marketing structure consists of 20 apex marketing societies and three commodity marketing federations at the State level and one National "Agricultural Cooperative Marketing Federation at the all India level. There are also 173 central marketing societies including 15 special commodity societies, mainly at the district level. 9.20. Consistently with the programme for increasing agricultural production, steps will be taken to strengthen the existing cooperative marketing structure, "especially at the primary level. Necessary provision for this purpose has been mads in the State Plans. The marketing federations at the State and national level will be strengthened to enable them to reach optimum efficiency and to provide the requisite leadership, financial support aod guidance to their affiliated institutions.

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9.21. At present, only marketing cooperatives in Gujarat and a few processing cooperatives in other areas have adopted the system of grading and pooling. Efforts will be made to introduce this and other improved marketing techniques in as many cooperatives as possible. As further measures to improve marketing practices of the cooperatives, the schemes initiated in the previous years for estabiisning grading unics with equipment and suitable trained personnel and for maintenance of price fluctuation funds which enable the societies to make outright purchases of agricultural produce from small growers, will be continued. 9.22. Cooperatives will aim at handling in the last year of the Fourth Plan, 8 million tonnes of foodgrains, 36 million tonnes of sugarcane, 0.6 million tonne of groundnut, 10,000 tonnes of fruit and vegetable and 1.8 million bales of cotton. At current prices, the value of agricultural produce likely to be handled by marketing and processing cooperatives is expected to be of the order of Rs. 900 crores in 1973-74. Cooperatives are also expected to handle agricultural commodities worth Rs. 25 crores in inter-State tsade and Rs. 10 crores in the export trade. Cooperative Processing 9.23. Considerable success has been achieved in the establishment of sugar factories in the cooperative sector. This was facilitated by the licensing policy of Government and the assistance provided by the Industrial Finance Corporation. A concerted programme to develop cooperative processing of other agricultural produce was taken in hand from Second Plan onwards. It has been accelerated in recent years. By the end of 1968-69, 1596 cooperative processing units had been organised. These included 79 cooperative sugar factories, 237 cotton ginning and pressing units, 26 cotton spinning mills, 784 paddy pressing units, 188 oil mills, and 38 fruit and vegetable units. Recently the need and scope for further developing of cooperative processing in the context of increased agricultural production was examined by an expert committee. Keeping in view its recommendations and the available resources, the Fourth Plan envisages the organisation of additional 550 units. A commodity-wise breakup of these units is given in the Annexure II. 9.24. A review made by an expert committee on planning of cooperative agricultural processing units has indicated that the tendency has been to set up processing units on the basis of stereo-typed schemes. In the Fourth Plan, it is proposed that organisation of new processing units should be preceded by proper feasibility studies, advance locational planning with reference to supply of raw material, storage and marketing of finished products and overall economics of each "projects. Facilities to provide technical advice are already being developed in various apex marketing societies. Efforts will be made to strengthen this technical machinery. Attention will also be paid to the need to consolidate and maximise the operational efficiency of existing units and ensure the fuller utilisation of their installed capacity. Cooperative Handling of Agricultural Inputs 9.25. With the development of intensive agriculture, there will be a substantial step-up in the demand for inputs such as chemical fertilisers, seeds, agricultural implements and plant protection material. It is proposed lhai cooperatives intensify their activities and enlarge their distribution system. The expectation is that, by 1973-74, cooperatives will be handling fertilisers worth about Rs. 650 crores, improved seeds Rs. 50 crores, pesticides Rs. 50 crores and implements Rs. 15 crores. To enable the cooperatives 10 handle the distribution of inputs of this order, it v/ill be necessary for them to have access to adequate bank finance. For this purpose, a provision has been made to cover a part of the requisite margin money to be provided by the cooperatives. 9.26. Cooperatives have recently made a beginning in ths production or agricultural inputs. Some marketing cooperatives in the States have organised granular fertiliser mixing units. Production and processing of improved seeds, formulations of pesticides, manufacture of small agricultural implements have also been taken up in the cooperative sphere in increasing measure. A major venture is the establishment of the fertiliser project of the Indian Farmers Fertiliser Cooperative Ltd. with an investment

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ol about Rs. 85 crores. This project is proposed as a complex of gas-based ammonia and urea plants at Kalol and phosphate plant at Kandia in Gujarat State. This fertiliser factory is expected to produce 318,500 tonnes of ammonia, 382,000 tonnes of urea and 637,000 tonnes of complex fertilisers per annum. Another factory in the cooperative sector in Maha-rashtra State is also proposed to be set up. Storage 9.27. A network of cooperative godowns has been established during recent years. On the eve of the Fourth Plan, there are 15,000 rural godowns and about 4000 mandi level or rail-head godowns. The total capacity is estimated to be of the order of 2.6 million tonnes. So far, the programme of storage has been financed entirely by Plan funds. In the Fourth Plan. it is expected that cooperatives will, for this purpose, have increasing recourse to bank finance and that the provision made in the Plan will be used essentially as margin money.. On this basis, it is visualised that cooperatives will establish in the Fourth Plan an additional storage of about 2.0 million tonnes. Consumer Cooperation 9.28. The broad institutional framework of consumer cooperatives comprises a National Federation to which 14 State federations are affiliated. The State federations, in turn, comprise 371 central or wholesale consumer cooperative societies. Linked to the central cooperatives are about 2800 branch stores (including department stores). There are also about 14,000 primary consumer cooperatives. Apart fiom the consumer cooperatives organised for the general urban population, cooperatives have also been sat up for specific consumer groups such as employees in industrial undertakings and university students. 9.29. With the organisation of various central and wholesale stores, practically all districts with an urban population of 50,000 or above have been brought wi chin the area of operation of such stores. In the Fourth Plan, therefore, stress will'be laid on consolidation and strengthening of existing consumer cooperatives at difi'erent levels rather than the organisation of new institutions. On the institutional side, the weakest link in the consumer cooperative movement lies at the level of primary consumer cooperatives. While over 14,000 primary consumer cooperatives have been registered, about 3.500 cf them are dormant. The rest are mostly engagsd in distributing rationed and controlled foodgrains and ether commodities. One of the major tasks hereafter to ba undertaken is a survey of the existing primary consumer cooperatives with a view to identifying the institutions that are viable or are potentially viable so that, on a selective basis, such primary consumer cooperatives could be further strengthened and developed. 9.30. Attention will also be paid to the reorganisation and strengthening of central wholesale consumer cooperatives with a view to building them up as large-sized multi-retail unit cooperative societies. The superstructure of the consumer cooperative movement comprising the State federations and the National Federation will have to be strengthened with a view to enabling these institu-tions'to play an effective role in procurement of supplies, besides promotional and service functions. At the retail stage, the structure is lopsidcd. It comprises, on the one hand, big retail outlets in the form of department stores with a large assortment of goods and, on the other, very small retail cutlets in the form of single-roomed shops primarily dealing in rationed and controlled items. The latter category accounts for over 96 per cent of the total outlets tluough which the consumer movement is currently operating. These stores have practically no impact on normal consumer trade. To correct this imbalance, efforts will be made to develop retail outlets of the intermediate size, diversify the range of business of consumer cooperatives and improve their operational efficiency and economic viability. 9.31. In the rural areas, retailing of consumer articles is conceived essentially as the responsibility of primary agricultural credit societies supparted by marketing cooperatives. In this fierd, the expansion in business has been significant. The progress, however, has been largely accounted for by distribution of foodgrains and other controlled articles. Moreover the progress has been extremely uneven an .1 has been confined to a few States. In the Fourth PI in, efforts will be made to spread and diversify this activity

40
with a view to enlarging the number of village and marketing cooperative involved in it. The effort will be develop an effective consumer service so that cooperatives become part of a per-niLnent distributive set up for making available a wide range of essential consumer goods in the rural areas. With the expansion and greater diversity of operations of consumer cooperatives and marketing cooperatives there is need for evolving appropriate working relationships between them. Steps will be taken to this end. Rural Electric Cooperatives 9.32. One of the significant developments contemplated in the Fourth Plan relates to the involve-in, nt of the cooperative form of organisation in thg programme of rural electrification. Pilot rural electric cooperatives are in the process of being set up in five States. The licencing of these cooperatives is among the functions allotted to the Rural Electrification Corporation. The objectives of the cooperatives include the supply of electricity for agricultural and agro-industrial purposes and the encouragement of active participation of the people by giving them some degree of control on electricity supply. Urban Cooperative Banks 9.33. In urban areas, the salary earners' societies and the primary urban cooperative banks can make an important contribution to future development. The salary earners' societies have proved highly successful in a large number of governmental departments and organisations and non-official corporations all over the country. They have proved valuable for providing consumption finance and m .ibiiising savings. The primary cooperative banks, in the .selected urban areas in which they have come up, have been financing activities of small producers and traders and are perhaps the most suitable types of organisation for this purpose. It is necessary for cooperative departments and the State Cooperative Banks to take active interest .in ths wider establishment and sound working of these cooperative organisations. It is envisaged that the operations of the urban cooperative banks will be considerably expanded especially in regard to th-. financing of small scale industries and small industrialists. In order to enable urban banks to discharge this responsibility, it will be necessary to strengthen their share capital base. The Reserve Ba.^k has recently approved a scheme for giving loans to the Slate Governments for share capital participation, on a selective basis, in such of these urban banks as are engaged or interested in productive activities related to the financing of small scale industries. It is expected that the State Governments will take advantage, of this scheme. Other Types of Cooperatives 9.34. While the focus of development will be on the cooperatives concer.sed with agricultural credit, marketing, processing and consumer needs, other types of cooperatives will also continue to receive attention. The programme relating to dairy, poultry and fisheries cooperatives and forest labour cooperatives and industrial cooperatives has been dealt with elsewhere. In cooperative farming, priority will be given to the revkalisation of the existing weak rnd dormant societies. New societies will be organised only in compact areas and if they have a potential for growth. Attention will be given to the strengthening of the labour contract societies and o;her types of non-agricultural cooperatives. Management, Training and Education 9.35. Placing of adequate, competent and trained staff in key positions in cooperative institutions banking, marketing, processing, consumer stores is crucial for their successful functioning. At present, a majority of these institutions are managed by personnel on deputation from Government, who have no continuing stake in the growth of the institutions and often lack aptitude for business. It is essential for the instiutions to reduce this dependence on borrowed personnel. For attracting the right type of persons, it is necessary to have mangcment pools in different sectors in each State to be operated by the federal organisations like the apex banks, land development bank, apex marketing federation and State federation of consumer cooperatives. In due course, such pools could become the nucleus for

41
establishment of cadres of key management personnel in different sectors. A beginning has been made in recent years in some States. It is proposed to pursue this programme vigorously. 9.36. The programme of cooperative training and education will be increasingly linked with the cooperative activities envisaged. The Vaikunth Mehta National Institute of Cooperative Manage-roens: will be further developed as an apex institute of study and research in cooperation. The cooperative training colleges for intermediate personnel and cooperative training centres for junior personnel will be adequately equipped for training the requisite personnel. 9.37. In a strategy of cooperative development, there is need for continuing to stress the role of a wellinformed and enlightened membership in the promotion and working of cooperative societies. A programme essentially directed towards the education of office-bearers and members of primary agricultural credit societies through peripatetic instructors has been in operation for some lime. Of late, there has been a perceptible indication of dissatisfaction with the content and effectiveness of this programme. In some areas and even states, the programme has been curtailed or drastically modified. The programme is proposed to be revised in the light of an evaluation study recenily brought out by the Programme Evaluation Organisation of the Planning Commission. It is necessary to ensure that the peripatetic instructors are liked with the cooperative training centres. Efforts will also' be made to ensure that the member education programme for village cooperatives is supported and supervised by central cooperative banks, marketing societies and other functional federations. II. COMMUNITY DEVELOPMENT AND PANCHAYATI RAJ 9.38. The Community Development programme was started in 1952. It now covers the whole country. Its unit remains the block and its aim that of chieving rural development through people's paricipation and initiative. The assistance from Government, so far as resources would allow, took the shape of a budget grant for the block and a team of extension workers under a Block Development Officer. The latter was to coordinate all schemes of a developmental character within the block. In the integrated programme, divided into stages of five years each, agricultural development occupied the foremost position. 9.39. The next step was that of attempting to weld together Panchayati Raj and Community Development. This objective followed from the acceptance of the recommendations of the Study Team of the Committee on Plan Projects (Balwan-trai Mehta Committee). The three-tier Panchayati Raj system, together with its modifications in different States, thus set the pattern of local development administration. At each level village or group of villages, block or group of blocks, and districtthere was to be a link between the administrative apparatus and elected representatives. 9.40. All villages are now covered by blocks. There are some 5265 blocks, including 4S9 tribal development blocks. Of these 999 are in Stage I and 2585 in Stage II. The rest have completed ten years and passed both the stages. Village Pancha-yats exists in all States and most Union Territories. The other tierSamitis at the Block level and Zila Parishads at the district levelhas been constituted in all States except Madhya Pradesh, Kerala, Jammu and Kashmir, parts of Bihar and Nagaland. There is not much diversity in the functions and powers of ihe village panchayats and panchayat functions and powers of the Zila Parishads from State to State. 9.41. The working of the programme has thrown up a variety of experiences. The operation of the Blocks in five year-stages, with tapering financial provision from stage to stage, was based on the assumption that, by the end of the initial ten-year period, there would be adequate mobilisation of resources by the local institutions and sufficient channelling of other Plan funds to make any separate provision thereafter for the Blocks unnecessary. Community Development, in other words, would then no longer be assisted and schematic but self-reliant and locally rooted. These assumptions have not proved correct. By and large the programme continues to be dependent on Government initiative and even more so on Government funds. Where funds were lacking, activities languished and the staff remained almost supernumerary. Where, however, administrative and financial support has been forthcoming, che

42
combined contribution of Parcha-yati Raj and Community Development has been significant in the formulation and implementation of local development plans. There has also been a large measure of coordination and integration of the field staff. In certain instances, the Panehayati Raj institutions have, for their part, made attempts to raise increasingly large resources through tax measures. In the majority of cases, however, local finance has continued to play very little part in local Development. New Dimensions 9.42. With all their drawbacks, the Community Development Programme and Panehayati Raj institutions have provided a new dimension to rural development and introduced a structural change of- considerable importance in the district administration. Within the limitations of resources the programme has aitemped to do something which in many cases, had never before been attempted. Improvement of agriculture has remained in the forefront throughout. Investment from the available block funds on agricultural development has over thq years almost equalled the provisions for all other sectors of development taken together. In many States, the block organisation has been virtually the only field agency for carrying out development programmes. There has been sizeable contribution from tlie local communities to the deve-. lopmental effort. 9.43. Some States have recently introduced changes in the pattern of organisation. While there has to be considerable flexibility in regard to the typ^ of. organisation, contents of programme and extent of resources, the need for an integrated approach to rural development, including coordination between otncial and non-official agencies, remains basic. Also important is a continued emphasis on priority programmes such as agriculture and family planning. The State Plans accordingly provide Rs. 84.69 crores for programme of community development. It is necessary to ensure that these funds are supplemented to the largest extent possible by resources mobilised by the Panehayati Raj institutions. Simultaneously, there should be progressively larger devolution of programmes and resources by the States. Pilot Study on Growth Centres 9.44. As a part of studies on area planning, a Centrally sponsored scheme of Pilot Research Project in Growth Centres is being launched. The aim of the pilot project will be to evolve a broad research methodology and pattern for identifying emerging growth centres, and to indicate how the growtli potential cf these centres could be promoted through comprehensive and scientific study of the overall development needs, and how these centres could be meaningfully woven into the frame of the district plan and thus help in the process of planning from below. The scheme will thus bring under close study action strategies relevant to the acceleration of infergrated area development around potential growth centres. A number of projects will be set up in different areas in the States and Union Territories. A few projects would be located in institutions working on planning methodology. To facilitate integration with district planning, the growth centres will. to the extent possible, be located in districts for which detailed plans in terms of guidelines and norms provided by the Planning Commission are already being drawn up. Integration 9.45. Panchaya-i Raj having been accepted as the pattern for local development administration, fuiler and more active involvement of the institution is necessary in the process of economic development and social advance. The viability of these institutions would depend on the extent to which they can undertake obligations for mobilising should likewise be assisted to build up their own revenue-yielding assvts. The administrative apparatus at the district, block and village level has to be jnt3grated and, where necessary, strengthened. The integration has to comprise not only the staff of the Community Development and Panehayati Raj institutions but also normal departmental staff deal in;; with all development schemes of a local character. At the same time, the administrative, financial and other procedures relevant to these

43
inititutfons call fcr a careful periodical review to ensure that they remain attuned to the responsibilities devolving on them. Annexure I Physical Programmes- Base Level and Targets sl. no. (0) 1 2 3 4 5 6 7 8 9 10 programme unit base-level 1968-69 (estimated) (3) 30 fourth plan target level anticipated 1973-74 (4) (5) 12 42 15 260 60 750 700 900 215 650 6.4 500 400

(1) membership of primary agricultural credit societies coverage of agricultural families short and medium term loan advance long-term loan advance agricultural produce marketed by cooperatives cooperative processing units fertilisers to be retailed by cooperatives . storage distribution of consumer articles in rural areas retail sales of urban consumer cooperatives

(2) million

percent 45 Rs. crores 490 Rs. crores 120 Rs. crores 583 number 1600 Rs. crores 200 million 2.6 tonnes Rs. erores 275 Rs. erores 270

317 550 450 2.0 225 130

* For the Fourth Plan period as a whole. It excludes loans of the order of Rs. 200 crores on schemes refinanced by Agricultural Refinance Corporation. Annexure II Type-wise break-up of the New Processing Units proposed for the Fourth Five Year Plan sl. type of unit no. (0) (1) 1 sugar factories 2 sugar bye-products units 3 rice mills (new) 4 modernisation of rice mills 5 rice bran oil units 6 ginning and pressing units 7 vanaspati 8 oil mills 9 solvent plants 10 caltlefeed plants 11 fruits and vegetables 12 cold storage no. of units (2) 30 20 108 88 5 32 7 112 2 3 27 45

44
13 other units 14 total 71 550

45

5th Five Year Plan

Chapter-5:

PLAN OUTLAYS AND PROGRAMMES OF DEVELOPMEN

I. Plan Outlays The Draft Fifth Five Year Plan envisaged an outlay of Rs. 37250 crores in the public sector. The revised Plan outlay is now estimated at Rs 39303 crores excluding provision for inventories. Public Sector Outlays 5.2. Not only has the Total Plan Outlay been increased from Rs 37250 crores to Rs 39303 crores but the outlay for the next two years has been reckoned at Rs 19902 crores as against the estimate for the first three years of the Plan which aggregate to Rs 19401 crores. 5.3. The break down of the revised outlay under major heads of development is as follows : Fifth Five Year Plan Outlay-1974-79 (Rs. crores) draft fifth plan (0) agriculture and allied programmes irrigation and flood control power industry and mining transport and communications education social and community services (including economic and general services but excluding education) hill and tribal areas and NEC schemes sectoral distribution not yet reported. Total (1) 4935.00 2681.00 6190.00 9029.00 7115.00 1726.00 5074.00 revised fifth plan 1974-77 1977-79 (2) (3) 2130.19 2513.40 1651.50 3513.05 5205.35 3552.67 587,77 2322.42 1788.68 3780.85 4995.25 3328.76 696.52 2444.35

1. 2. 3. 4. 5. 6. 7.

1974-79 (4) 4643.59 3440.18 7293.90 10200.60 6881.43 1284.29 4766.77

8. 9. 10
1 2

500.00

177.50 260.44

272.50 66.29 79856.60

450.00 326.73 39287.491

37250.00

79400.89

Does not include an amount of Rs- 16 crores for which sectoral break-up is not worked out. Sectoral break-up does not include an amount of Rs. 203 crores added subsequently.

The outlays for the remaining years of the Plan are based on the following broad considerations : -

i.

The plan priorities of the Draft Fifth Plan have been kept unchanged;

46 ii. iii. iv.

the outlays for on-going projects/schemes have been determined on the basis of present and future demand, past performance, current completion schedules and escalation in costs ; provisions have been made for new starts, including those which have long gestation periods, keeping in view the demand pattern for 1981-82 and in some cases 1983-84 ; and an attempt has been made to see that the investments are not only fruitful but that they also ensure adequate return. In agricultural production, power, irrigation and education sectors targets were suggested keeping in view the national targets, natural resources of States and their present state of preparedness.

5.4. There is substantial step-up in the outlays on irrigation and flood control, power and industry and minerals. In agriculture, education and social services sectors though the revised outlays for the Fifth Plan as a whole are smaller, the outlays for the last two years of the Plan are higher than the outlays for the first three years. 20-Point Economic Programme 5.5. The 20-Point Economic Programme was announced by the Prime Minister on 1st July, 1975. The various constituents of the 20-Point Economic Programme, especially those which require financial investment, have been identified. Priority has been accorded to the implementation of the schemes falling under this programme. The outlays of the Centre, States and Union Territories for the remaining two years of the plan1977-79 and the Fifth Plan are indicated below : (Rs. crores) 1975-76 anticipated (0) centre states and U.Ts. Total (1) 119.01 1850.68 1969.69 1976-77 approved outlay (2) 163.71 2173.97 2337.68 1977-79 proposed outlay (3) 757.06 5334.67 6091.73 total (4) 1039.78 9359.32 10399.10

Annexures 21 and 22 indicate the proposed outlays for 1 977-79 in respect of different constituents of the 20-Point Economic Programme. Overall Outlay 5.6. The distribution of the outlays by sectors, by Ministries, by States and by Union Territories is shown in Annexures 17-20, Briefly, the revised Plan outlays are as follows : (Rs. crores) 1. central sector 2. states 3. union territories 4. hill and tribal areas Total 2. Agriculture and Irrigation 19954,10 18265.08 634.06 450.00 39303.24

47
5.7. Agriculture Production: The methodology followed in arriving at the projections of foodgrains, important commercial crops, irrigated areas and other physical programmes has been explained in the chapter on the Rate and Pattern of Growth. These estimates relate to average weather conditions in a given year. However, in order to allow for variations in the effect of weather, provisions have been made in individual state plans on a slightly higher scale so that the total production is not materially lowered even if some part of the country is affected. If these outlays are utilised with a fair degree of efficiency and if weather conditions are favourable in all the states, the total production would naturally be much higher and could be of the order shown in the table below. (mt-million tonnas, mh-million hectares, mb-million bales ) item (0) foodgrains (mt) oil seeds (mt)-five major sugar cane (mt) cotton ( mb -170 kg) jute and mesta (mb -180 kg) high-yielding varieties (mh) fertilizers consumption (mt) minor irrigation (mh) 1973-74 level (1) 104.7 8.9 140.8 6.3 7.7 25.8 2.8 23.1 maximum production estimates (2) 132.9 12.6 173.5 9.0 7.7 40.0 5.0 31.6

5.8. The expenditure on Agriculture and allied programmes during 1974-77 is likely to be about Rs. 2 I 30 crores. The outlays proposed for the last two years of the Plan period are of the order of Rs. 251 3 crores. The Sectorwise outlays are shown in Annexure 23 and the State-wise allocations are given in Annexure 24. 5.9. Performance of the important programmes, like DPAP, minor irrigation, production and distribution of high-yielding varieties of seed and distribution of fertilisers have been specifically examined and necessary provision has been made. The outlays for reclamation of alkline, saline and acidic soils and plant protection programmes have been suitably enhanced. Emphasis has also been placed on developing organic sources of manure and higher outlays provided for setting up biogas plants. Adequate provision has also been made for accelerating the minikit seed programme and strengthening of the extension services. Provision has also been made for augmenting storage capacity in the public sector. Irrigation 5.10. The total irrigation potential likely to be created during the Fifth Plan period is placed at 13-1 million hectares ; 5-8 million under 'major and medium' and 7'3 million under'minor'. Allowing for certain adjustments the additional potential should be of an order higher than 11 million hectares. Major and Medium Irrigation 5.11. During the first three years of the Fifth Plan the expenniture on major and medium irrigation projects is likely to be Rs. 1474 crores. For the remaining two years of the Plan, an outlay of Rs. 1 621 crores is indicated keeping in view the progress achieved on each project, new completion schedules, development of additional command and escalation in costs. Where work could be accelerated, higher, outlays have been provided for projects such as Nagariuna-sagar, Sarda Sahayak, Rajasthan Canal, Malaprabha and Kadana, Commitments to international agencies like the World Bank in respect of certain

48
projects and obligation of States to provide matching funds in respect of inter-State projects have been kept in mind. 5.12. An Outlay of Rs. 1013 crores has been provided for new starts during the Plan period. In selecting new projects, priority was accorded to those located in drought prone areas. On the basis of the data furnished by the States and the discussions held recently, an additional potential of 5-8 million hectares is expected to be acnieved during the Fifth Plan period. Details indicating the outlays and benefits Statewise are given in Annexures 25 and 26. 5.13. Planning Commission has been laying great emphasis on modernisation of certain important irrigation schemes urgently, particularly those completed earlier to the Plan periods. Provision has been made for some schemes like Godavari Barrage, Tajewala and Okhia Barrages and Bhimgoda headworks. Minor Irrigation 5.14. According to the outlays available to the states for the first three years, a maximum potential of nearly 3'4 million hectares is likely to be created during the first three years of the Plan. The provision made in the following two years of the Plan almost equals the provision in the first three years. As a number of the projects are nearing completion, it is expected that an additional 3-9 million hectares will be brought under irrigation during the next two years. Soil and Water Conservation 5.1 5. The programme for treatment of area in river valley catchment of major reservoirs and other soil and water conservation programme made a late start. A considerable step-up in outlays for implementation of these programmes has been made for the remaining two years'of the Fifth Plan. In some of the States, soil and water conservation programmes have also been taken up with institutional credit support and the targets of physical performance are likely to be achieved. Area Development 5.16. This important programme for optimising the use of irrigation water and utilisation of the potential created from selected commands of major irrigation works also took time to make a start. Now the Command Area Development Authorities have been set up and other infrastructure facilities developed. Therefore, the provision in the Central sector would be almost 22 per cent higher for the remaining two years as compared to the outlays for the first tnree years. The provisions in the respective states adequately match the provision made in the Central sector. Investment in Agricultural Financial Institutions 5.17. More and more institutional finance is being extended to the development programme for rural areas which leads to higher physical achievements with less public sector outlays. Accordingly, for providing support to Agricultural Refinance and Development Corporation, adequate budgetary provision has * been made in the Central Sector, which is almost 55 per cent higher than the outlay in the draft Fifth Plan. In the State, sector, provisions have also been made for investment in agricultural financial institutions which are higher by about 22 per cent. The provision made for the remaining two years in some of the States especially in the eastern region for strengthening of cooperative structure and development of loaning programmes by the Land Development Banks is almost 62% higher than the outlays available for the first three years. The total investment outlay is being raised to Rs. 129 crores. It is to be noted that the major portion of it will go to minor irrigation sector. This should generate sizeable investment and strengthen the operational capability of the Central/State Ground Water Boards. Forestry

49
5.18. Taking note of the fact that forestry development has assumed a significant dimension as a source of timber and fuel and for the maintenance of the natural ecological system, special programmes for social forestry and economic plantations have been given high priority. Accordingly, for the remaining two years of the plan, the provision made is almost double the outlays provided for in the first three years of the Plan. Adequate provision has also been made for 'project Tiger' and for the development of National Parks and for strengthening the reserch programme in the forestry sector. Animal Husbandry and Dairy Farming 5.19. There had been some delay in giving a start to the special livestock development programmes through small and marginal farmers and agricultural labourers. By and large the targets under production oriented projects such as intensive cattle development projects, intensive poultry production-cummarketing centres, sheep and wool extension centres and fluid milk plants and milk product factories are expected to be achieved in full. There are 85 subsidised projects for cross-breed calf rearing, 57 poultry production projects, 45 piggery production projects and 38 sheep production projects through small and marginal farmers and agricultural labourers in 148 districts. Intergrated milk production-cum-marketing projects would be implemented in the States of Meghalaya, Assam, Sikkim, Himachal Pradesh, J and K, Orissa and Kerala as a second phase of the 'Operation Flood' project. Emphasis will continue to be laid on cross-breeding in cattle through establishment of exotic cattle breeding farms and intensive artificial insemination measures. Particular emphasis will be laid on scientific poultry breeding programme. Programmes for the control of rinderpest and foot and mouth disease would be continued. Fisheries 5.20. There has been some delay in the start of a few projects but the targets for mechanisation of boats, production of fish seed and development of fishing harbours are expected to be achieved in full A special Trawler Development Fund will be created in order to helo, in particular, smaller entrepreneurs and cooperatives to purchase and operate trawlers for marine fishries. Fish Farmers Development Agencies would be started in the states for augmenting inland fish production and exploitation of water bodies in rural areas. 5.21. The UNDP assisted palagic fishery project would be continued for exploration and exploitation of fishery resources and this scheme would be extended to cover both the West and South East coasts. A survey of the North West coast would be conducted. An intergrated fishery development project around two fishing harbours at Veraval and Mangrol in Gujarat would be taken up with world Bank assistance. A research vessel will be provided to the Central Marine Fishries Research Institute. Research and Education 5.22. In spite of the fact that the trend of expenditure during the first three years has been low on account of ban on recruitment of staff, the research priorities in different fields of crop production and animal husbandry have been maintained to yield new innovations in developing farm level technology. The coordinated research programmes have been suitably strengthened with the active participation of the Agricultural Universities in different States. A new research complex has been established in the northeastern region. New institutes have also been established for strengthening cotton research and for developing research programmes on farm tools, equipment and machinery. Provisions have been made for projects with collaboration of agencies of United Nations. The Educational programmes have been further strengthened by setting up new Agricultural Universities which now number 21 covering 1 6 States. Cooperation 5.23. Taking note of the desirability of strengthening the cooperative structure, provision has been sufficiently enhanced for Agricultural Stabilisation Fund, rehabilitation of weak Central Cooperative Banks

50
and assistance to cooperative credit institutions in developing States. Thus the revised outlay for 1977-79 is almost 60 per cent higher than the outlays for the first three years of the Fifth Plan. Similarly, adequate provisions have been made in the State sector to provide for strengthening of cooperative structure by organising Farmers Service Societies-and LAMPS in the tribal areas. Provisions have also been made for increasing the loaning programmes for m'nor irrigation, land development and supply of inputs. Flood Control 5.24. The anticipated expenditure in the first three, years is likely to be of the order of Rs. 177-69 crores. For the next two years (1 977-79). an outlay of Rs. 167.59 crores has been indicated (Annexure 27). 5.25. Some of the .important schemes are the Patna City Protecton Works, flood protection works in North-Bihar and U.P., flood control and drainage works in Jammu and Kashmir, drainage works in Punjab, improvement of lower Damodar system in West Bengal and flood protection works in North Bengal. The provision also covers the flood control works in the Brahmputra valley for which provision has been rr.ade in the Central sector. 5.26. The Centre is also assisting in sharing the cost of flood control component of the Rengali dam in Orissa and anti-sea erosion works in Kerala. It also meets the cost of the flood forecasting system that has been set up in the Department of Irrigation. 3. Power 5.27. In the Fourth Plan an additional 4280 MW of generating capacity was added, taking the installed capacity to 18456 MW. In the first two years of the Fifth Plan 3524 MW were added, and with the requisite efforts on the part of the project authorities, it might be possible to add 2387 MW capacity during 1976-77. In the first three years, the outlay on generation projects would be about Rs. 2145 crores. It is now expected that a total of about 12500 MW of generating capacity would be added during the Fifth Plan. Out of the projects which are currently under implementation, generating capacity of about 6000 MW would be still under construction at the end of the Fifth Plan. Experience indicates that management and techniques of construction and monitoring, would need to be considerably improved. 5.28. In finalising the Fifth Plan for Power, emphasis has been placed on the completion of on-going schemes as expeditiously as possible. In recommending outlays, the latest cost of each generation project, status of progress of major items of works, delivery schedules for the equipment and any constraints likely to be faced in implementation were all taken into account. Particular consideration has also been given to infra and inter-State transmission lines, setting up and strengthening of regional load despatch centres, and investments on distribution. Transmission and distribution losses are expected to be reduced. The needs of schemes covered by external assistance have baen also kept in view. Rural electrification will also be significantly higher than in the first three years of the Fifth Plan. The States will also be attracting institutional finance for rural electrification. The programme of energising pump sets will be accelerated. About 13 lakh pump sets are expected to be energised during the Fifth Plan period, as against about 6.3 lakh pump sets in the first three years. About 81,000 additional villages are also expected to be electrified in the Fifth Plan. 5.29. In planning advance action for the Sixth Plan, the power requirements till the end of the Sixth Plan are being kept in view. It has been assumed that the healthy trends In improved utilisation of capacity which have been observed in the Fifth Plan period and the progress in reduction of distribution losses, will continue. Special attention will be paid towards ensuring that regional grids are strengthened, that there is a balanced development of peaking and base load stations in each region, and that optimal use is made of these stations both by an integrated operation within the region and where necessary by cooperation between regions. With these considerations in mind, provision has been made for a number of new starts in the thermal and hydel projects including a centrally owned super thermal station. The views of the States were taken note of particularly in regard to aspects like readiness of projects, construction periods

51
and escalation in cost. Many States expressed their willingness to raise additional resources to meet the requirements of new power projects. 5.30. The power position in northern and eastern regions will continue to be comfortable. But western and southern regions are expected to face both peaking and energy deficits. 5.31. Increased outlays are provided for training facilities for the operation and maintenance of power system, testing facilities for electrical equipment and R and D in such priority areas as geothermal and tidal power. 5.32. The revised outlays under the various categories are summarised below:Fifth Plan Power-Financial Outlay (Rs crores) item (0) 1. generation 2. transmission and distribution 3. rural electrification (a) M.N.P. and state plan (b) rural electrification corporation 4. survey and investigations 5. Total states (1) 3722.71 1897.73 union terntone (2) 6.52 78.78 centre (3) 665.24 104.74 total (4) 4394.47 2081.25 dratititth plan (5) 3323.81 1634.27

360.54 314.02 74.92 6369.92

10.74

371.28 314.02 55.24 825.22 132.88 7293.90

698.24 400.00 133.68 6190.00

2.72 98.76

5.33. The generation schemes which have been or are expected to be commissioned 'n Fifth Plan period are shown in Annexure 28. The regionwise break up of installed capacity is expected to be as in Annexure 29. 4. Industry and Minerals 5.34. The stresses and strains in the economy kept the industrial growth low :2.5% during 1974-75 and 5.7% during 1975-76. Even so, significant increase in production have been achieved in some of the basic industries like steel, coal, cement, non-ferrous metals and power generation. Decline was particularly noticed in industries like passenger cars, consumer durables and cotton textiles. 5.35. Some of the steps taken to correct this situation can be mentioned. 21 industries including cotton spinning, basic drugs and industrial machinery have been delicensed. In respect of 29 selected i ndustries, the existing units including foreign and MRTP companies have been permitted to utilise their installed capacity without limit. In order to promote exports of engineering goods, 15 engineering industries have been allowed the facility of automatic growth of capacity,at 5% .per annum or up to a ceiling of 25% in a Plan period in physical terms. Various facilities have been extended to non-resident Indians for the establishment of industrial undertakings and for investing their earnings in selected industries. The resources of I DBI and other term lending institutions are also proposed to be augmented. Conditions are now favourable for maintaining the tempo of growth in industrial production and investment, achieved during the last quarter of 1975-76.

52
5.36. In making revised allocations, speedy completion of projects and appropriate action for starting new projects with long gestation periods have been kept in mind. As against an outlay of Rs. 13,528 crores envisaged in the draft Fifth Plan, the revised figure is placed at Rs. 1 6,660 crores : Rs. 9660 crores in the Central and States Public Sectors and Rs. 7000 crores in private and cooperative sectors. Central Public Sector 5.37. A detailed list of projects and programmes included in the Central sector of the plan is given in Annexure 30. The broad break up of certain important groups of industries in the public sector is as follows : Outlays for important groups of industries (Rs. crores) Industry Steel Fertilisers Coal (including lignite) Oil exploration, refining and distribution Petrochemicals Machinery and engineering industries Outlay 1675 1533 1147 1575 349 365 Industry Non-ferrous metals Iron ore (including Kudremukh Project) Paper and newsprint Cement Textiles Ship Building Outlay 468 513 203 102 104 147

1. 2. 3. 4. 5. 6.

7. 8. 9. 10. 11. 12.

5.38. The targets of production visualised in the Plan for selected industries is given in Annexure 31. The average rate of industrial growth during the Fifth Plan is reckoned to be around 7% per annum. In view of the relatively lower rate of growth in the first 2 years of the plan, the growth rate in industrial production in the lernaining 3 years of the Plan will have to be maintained around 9 to 10% Steel 5.39. The domestic demand for finished mild steel is estimated at about 7.75 MT by 1978-79, while the production is expected to be 8.8 MT including a production of 1.06 MT from the mini steel plants and reroilers. Though a few special categories of steel will still need to be imported, on the whale the country has now emerged as a net exporter of steel. 5.40. The 1.7 MT stage of Bokaro is expected to be completed by the end of 1976. This plant, except the cold-rolling mill, is expected to expand to 4.0 MT by June 1979. The work on the expansion of Bhilai steel plant to 4.0 MT is expected to be completed by December 1981. Plans have also been drawn up for rehabilitation and modernisation of the IISCO plant. 5.41. Considering the longer gestation period in the steel industry, various alternatives for expansion and development are under consideration. Non-Ferrous Metals 5.42. The Korba plant is expected to achieve its full capacity of 100,000 tonnes of aluminium along with associated fabricating facilities, before the end of the Fifth Plan. Along with the capacity existing in the

53
private sector, this will contribute to the total capacity of 325,000 tonnes and will be adequate to meet the domestic requirements. 5.43. With the commissioning of the Khetri copper complex, the current smelting capacity is 57,000 tonnes per annum. Provision has been made for the development of mining projects at Malanjkhand and Rakha and expansion of copper mines in the Bihar belt. The Plan envisages a production target of 37,000 tonnes of copper from domestic ore by 1978-79. 5.44. The capacity for zinc production is expected to increase to 95,000 tonnes by 1978-79 with the completion of the expansion of Debari smelter (45,000 tonnes) and installation of a new smelter at Vizag (30,000 tonnes). 5.45. A provision of Rs. 468 crores has been made in the Plan towards the various schemes included for the development of non-ferrous metals and associated facilities. Engineering Industries 5.46. The bulk of the investments is for completing the programme for the production of electric generation equipment and supporting facilities in Bharat Heavy Electricals Limited and for diversification of the production programme of Hindustan Machine Tools for the manufacture of lamp machinery, printing machinery, tractors and watches. Provision has also been made for balancing facilities at Heavy Engineering Corporation and for rehabilitation and diversification programmes of engineering undertakings taken over by the Government. 5.47. A large step up in scooter production is envisaged. The concept of a mother unit supplying components for assembly to a number of subsidiary units has been introduced in the public sector. 5.48. Provision has been made for the Hindustan Shipyard to achieve a production of three ships per annum of 21,600 DWT size. Cochin shipyard will have a capacity of two ships per annum of 75,000 DWT size by 1 977-78. The further expansion to four ships per annum will also be started before the end of the Plan. The establishment of one or more new shipyards is currently under consideration. 5.49. A detailed plan for the development of electronic industry on a scientific basis has been drawn up. Provision has been made for testing facilities and R & D support for the growth of the electronic industry. Fertilisers 5.50. The installed capacity for nitrogenous fertilisers is expected to reach 4.7 million tonnes by 1 978-79. Since a part of this capacity will be realised only in the last year of the Plan, the production target is placed at 2.9 million tonnes. 5.51. The demand for phosphatic fertilisers has not increased to the extent envisaged. Measures have been mitiated to stimulate consumotion of phosphatic fertilisers. Further expansion of phosphatic fertiliser capacity is being planned. 5.52. Apart from the new plants envisaged in the public sector, it is expected that additional capacity will be promoted in the private sector. 5.53. A total provision of Rs. 1 533 crores has been made in the Fifth Plan for fertilser projects as compared to Rs. 1093.28 crores in the draft Plan. This includes a lumpsum provision for new fertiliser projects and also fertiliser projects in the cooperative sector. Oil and Natural Gas

54
5.54. Programme for the exploration and exploitation is being stepped up to intensify activities in the most promising oil bearing areas where the payback is likely to be quicker. Resources are, therefore, mainly being canalised to the development and production of oil from off-shore and selected on-shore areas. 5.55. A time-bound programme has been drawn to develop production of oil from Bombay High to a rated capacity of 10 million tonnes per annum by 1980-81. Studies for optimal exploitation of resources, transportation, processing and utilisation of the oil and associated natural gas are being currently carried out. 5.56. The draft Plan envisaged a step up of crude oil production from 7.2 million tonnes in 1973-74 to 12.0 million tonnes in 1978-79. The production target for crude oil is now placed at 14.18 million tonnes in 1978-79. 5.57. Taking into account the enlarged programme, the outlays for ONGC during the Fifth Plan, have now been revised to Rs. 1056 crores as compared to Rs. 420 crores in the Draft Fifth Plan. Oil Refining 5.58. The refinery programmes included in the Plan cover the completion of the Kaldia refinery, the expansion of Koyali and the establishment of refineries at Mathura and Bongaigaon. All these projects are expected to be completed in the Fifth Plan excepting Mathura refinery which is scheduled to be commissioned by 1980. By the end of the Fifth Plan, refining capacity will be stepped upto31.5 million tonnes. Provision has been made in the Planter these schemes. Petrochemicals 5.59. The first major petrochemicals complex at Baroda will be completed during the Fifth Plan period. The Aromatic Project of the complex has already been commissioned. The defines and the downstream units are expected to be commissioned between August, 1977 and April, 1978. The polyester filament yarn project of Petrofils Cooperative Ltd. is also expected to be commissioned in phases between March and July, 1977. A provision of Rs. 349 crores has been made for the above mentioned schemes. A Refinery-cum-Petrochemical unit at Bongaigaon has been included in the Plan. Coal 5.60 In consonance with the broad policy frame for the Energy sector drawn up by the Fuel Policy Committee, the Draft Fifth Plan envisaged a production target of 1 35 million tonnes by 1978-79. 5.61. A comprehensive programme of advance action involving bulk purchase of standardised plant and equipment and various technical, managerial and administrative improvement together with a favourable industrial climate has resulted in higher production of coal. 5.62. The demand for coal, however, has not kept pace with production. After keeping in view the outlook for coal consuming industries and a review of the current energy situation, the likely demand of coal at the end of the Fifth Plan period has now been projected at 124 million tonnes. Provision has been kept for an export of 2.5 million tonnes of coal in 1978-79 as compared with 1.5 million tonnes envisaged earlier. Consistent witn the revised outlook in demand, the production programmes are being rephased, in a way which would not hamper the future growth. 5.63. Even with this target, the outlays for the Plan are likely to be of the order of Rs. 1025 crores as against the earlier provision of Rs. 747.60 crores. This includes the requirements for the setting up of 1 0 million tonnes of additional washery Capacity, of which, 4 million tonnes will be operational by 1 978-79.

55
Two units of low temperature carbonisation plants are also contemplated. Adequate provision has been made for better housing facilities and other welfare activities etc. Lignite 5.64. The draft Fifth Plan made a provision of Rs. 39.80 crores for the Neyveli Lignite Project which was expected to reach a production of 6.0 million tonnes in 1978-79. 5.65. On the basis of the review now carried out, this provision has been increased to Rs. 122.25 crores, mainly on account of escalated cost of the specialised mining equipment which is to be imported. In view of the slippages in the implementation of the programme, a production of 4.5 million tonnes of lignite is now expected by the end of the Fifth Plan period, the production of 6 million tonnes being attainable by 1 980-81. Iron Ore 5.66. The production target envisaged for iron ore in the Draft Plan was 58 million tonnes. Due to slight fill in the domestic demand, the production now envisaged is 56 million tonnes, 5.67. As currently reckoned Donimalai, Bailadila-5 and Kiriburu expansion projects will be commissioned in 1976-77. The development of Meghahatu-buru project for meeting the requirements of Bokaro steel plant at the 4 million tonnes stage is expected to be taken up shortly. Provision has also been made for establishing pelletisation capacity. A notable feature in the field of iron ore development has been the decision to develop the Kudremukh magnetite deposit for a production of 7.5 million tonnes of magnetite concentrates at a cost of around Rs. 567 crores. 5.68. Based on current estimates, a provision of Rs. 107.57 crores, excluding the investments on Kudermukh Project, has been made in the Plan. Consumer Industries Sugar 5.69. To achieve speedy implementation of licences issued and to make new sugar factories and expansion schemes economically viable, incentives were announced in September, 1975. The capacity is expected to increase from 4.3 million tonnes in 1 973-74 to 5.4 million tonnes in 1 978-79. Cotton Textiles 5.70. From a production of 7900 million metres of cloth in 1973-74, the production is expected to go up to 9500 million metres in 1978-79. The share of the mill sector is envisaged at 4800 million metres and the decentralised sector would contribute the balance of 4700 million metres. 5.71. The spinning capacity .is being expanded so as to ensure adequate availability of yarn to the decentralised sector. 5.72. To accelerate the modernisation of the textile industry, a scheme to extend long term finance at concessional rate is being drawn up. A provision of Rs. 104 crores has been made for the rehabilitation and modernisation of the mills of the National Textile Corporation. Cement

56
5.73. The capacity in the cement industry is expected to go up to 23.5 million tonnes by 1978-79 from 19.7 million tonnes in 1973-74. 5.74. The share of the public sector (Central and States) in the cement industry is expected to increase from 2.30 million tonnes in 1973-74 to 3.88 million tonnes in 1978-79. Drugs and Pharmaceuticals 5.75. The drug industry which was mainly confined to formulation activities and the manufacture of bulk drugs from penultimate intermediates has in a progressive manner entered into the field of manufacture of bulk drugs. 5.76. Public sector has been given a prominent role in the overall development of drug industry. A significant step up in production in the area of antibiotics, synthetic drugs and formulations in public sector is envisaged. Vegetable Oils and Vanaspati 5.77. The production of vanaspati is expected to increase from 449,000 tonnes in 1973-74 to 610,000 tonnes in 1978-79. Paper and Newsprint 5.78. The production of paper and paper board is expected to be stepped up to 1.05 million tonnes by 1978-79 from 0.77 million tonnes in 1973-74 Provision has been made for initiating construction of two new projects in the Central sector. 5.79. Production of newsprint is envisaged to be stepped up to 80,000 tonnes by 1978-79. The additional production will be contributed primarily by the expanded capacity of NEPA and the Kerala Newsprint project in the public sector. 5.80. A provision of Rs. 203 crores has been made in the Central Sector of the Plan for the development of paper and newsprint industry. Industrial and mineral programme relating to atomic energy 5.81. The major programmes in this field are the completion of heavy water plants, the schemes under the nuclear fuel complex and the expansion of public sector undertakings under the Department of Atomic Energy. A provision of Rs. 184.18 crores has been made for these programmes. 5. Village and Small Industries Small Scale Industries 5.82. The number, volume and range of production of small scale industries have continued to grow. Schemes of extension services and increase in institutional finance have materially assisted in this increase. Regional testing centres have been established. A few branches of Small Industries Service Institutes have also been opened. 5.83. For the next two years, adequate provisions have been made both for the continuing schemes and for schemes to be formulated for margin or seed money to facilitate institutional finance and for supply of machines on hire-purchase terms. Industrial Estates

57
5.84. Of 455 estates functioning by March, 1974, 347 were located in urban and semi-urban areas and the remaining 108 in rural areas. In these estates, about 1 0,1 40 units were functioning providing employment to 1.76 lakh persons. 5.85. Adequate provision has been made for the continuing schemes as well as some new schemes. Khadi and Village Industries 5.86 Ihe employment in Khadi ragistered an increase from 9.78 lakhs in 1974-75 to 10.0 lakh persons in 1975-76. The increase in village industries was from 9.82 lakhs to 11.28 lakh persons. 5.87. A study has recently been completed by the Administrative Staff College, Hyderabad, regarding the viability of some village industries. Meanwhile, provisions have been made for expansion of the existing programmes. Handloom and Powerloom Industries 5.88. Certain special schemes have been initiated for revitalisation and development of the handloom industry as a part of the 20-point Economic Programme. These schemes include intensive development projects (each covering about 10,000 handlooms) and export-oriented production projects (each covering about 1,000 handlooms). 5.89. Adequate provisions for continuing schemes as well as for the States to meet a part of the cost of intensive development projects have been made. For the powerloom industry, provisions have been made for processing facilities and setting up technical service centres. The value of exports of handloom fabrics and manufactures is expected to go up to Rs. 1 40 crores from the current level of about Rs. 1 00 crores. Sericulture 5.90. During the last two years, schemes have been taken up for production of industrial bivoltine mulberry silk in Karnataka, West Bengal, Tamil Nadu and Andhra Pradesh. 5.91. These schemes will be expanded during the next two years. The production of raw silk is expected to increase from the present level of about 3.2 m. Kgs to about 5.0 m. Kgs. by 1978-79 and the exports from Rs. 17.5 crores to Rs. 21.0 crores. Coir Industry 5.92. Recently, a high-powered Study Team has been set up to review the proQress and suggest measures for the development of this industry. Meanwhile, adequate provisions have been made for the continuing schemes. Over the next two years, the value of exports is expected to increase from the present level of about Rs. 19 crores to Rs. 22 crores. Handicrafts 5.93. Recently, a massive scheme for training 30,000 carpet weavers has been initiated which will help to promote larger exports of woollen carpets. Steps have been taken to develop a few selected handicrafts having a high potential for development. 5.94. The value of exports of handicrafts is expected to go upto Rs. 240 crores, as against the present level of about Rs. 190 crores.General

58
5.95. The levels of production and exports achieved by some industries are shown in Annexure 32. 5.96. The provisions made for the next two years in the Central and the State sectors for different small industries are shown in Annexure 33. 6. Transport and Communications 5.97. A sectorwise break-up of the provisions in the Central sector for Transport and Communications is indicated in Annexure 34. Railways 5.98. The expenditure for the first three years of the Plan is likely to be about Rs. 1149 crores; while an outlay of Rs. 1053 crores is proposed for the next two years. 5.99. By 1978-79, the railways would be equipped to carry an estimated originating freight traffic of 250 to 260 million tonnes, of which the largest single commodity would be 98 million tonnes of coal. While finalising provision for replacement or acquisition of locomotives and wagons, emphasis has been laid on better utilization of existing track and rolling stock capacity by maximising movement in block rakes and reducing turn-round time. 5.100. In regard to non-suburban passanger traffic,outlays have been provided after taking into consideration past trends and possible growth in the next two years. Provision for suburban traffic takes into consideration the optimisation programmes of the Railways. 5.101. Full provisions have been made for completion of on-going traffic and project oriented lines. Some provision has also been made for new lines of promotional character to the extent permitted by the available resources. 5.102. Despite constraints on resources, the electrification projects of Virar-^abarmati, Panskura-Haldia and Tundla-Delhi sections have been completed. By the end of the Fifth Plan, it is expected that the Madras-Trivellore section will be fully electrified while electrification of Waltair-Kirandul and MadrasVijayawada sections would have reached an advanced stage. 5.103. Adequate provision has been made for meeting the Railways' share of the investment in Road Transport Corporations. An outlay of Rs. 50 crores has also been provided for Metropolitan Rail Transport scheme. 5.104. Outlays on the different items of the Railway Development programmes are given in Annexure 35. Roads 5.105. Main emphasis has been on completion of spill over works of the Fourth Plan, which included a number of missing bridges and road links. It is expected that during the last two years of the Plan, work will be largely completed on such of those works which were in progress at the commencement of the Fifth Plan. Besides, provision has also been made for certain new schemes of essential character, particularly those relating to safety of the traffic. 5.106. The revised outlays for the Central programmes are given below. The figures in the brackets refer to spill over schemes. (Rs. crores)

59
programme (0) national highways strategic roads roads of inter-siate and economic importance highway research and developmer roads in sensitive border areas special road/bridge works of national significance mainly for second Hooghly bridge at Calcutta tools and plants Total estimated expenditure (1974-77) (1) 176.56 {159.79} 14.00 (12.00) 9.24 (9.24) 0.20 1.00 9.02 outlays (1977-79) (2) 151.06 ('93.06) 24.00 ('21.00) 20.76 (14.76) 1.80 9.00 15.98 revised plan outlay (3) 327.62 ('252.85) 38.00 (33.00} 30.00 (24.00} 2.00 10.00 25.00

1. 2. 3. 4. 5. 6.

7. 8.

7.82 217.84 (181.03)

5.00 227.60 (1128.82)

12.82 445.44 (309.85)

5.107. In the State Plans also emphasis has been laid on completion of the spill over works so that investments already made fructify early. Provision has also been made for rural roads under the Minimum Needs Programme. 5.108. The likely expenditure during the first three years, 1974-77 is reckoned at about Rs. 479.32 crores and the outlays for the next two years are kept at Rs. 423.04 crores. Road Transport 5.109. The main scheme under the Central sector road transport relates to the Delhi Transport Corporation. At the beginning of the Fifth Plan, the D.T.C. had a total fleet of 1495 buses. During the first three years, the Corporation is likely to acquire 1137 buses, including 682 buses for augmentation and 455 buses for replacement. Provision has been made for acquisition of additional 389 buses based on consideration of traffic growth and efficient fleet utilisation and for construction of additional depots and terminals. A total outlay of Rs. 29.77 crores is envisaged against the Draft Fifth Plan provision of Rs. 23.00 crores. 5.110. In the State sector the estimated expenditure on Road transport during 1974-77 is likely to be Rs. 197.08 crores and an outlay of Rs. 205.87 crores is provided for the next two years. Major Ports 5.111. The traffic handled at Major Ports is expected to increase from 65.84 million tonnes in 1974-75 to about 77 million tonnes in 1978-79. The main increase is expected to be in iron ore and general cargo, 5.112. With the completion of the major spillover projects at Haldia, Madras, Visakhapatnam, Marmugao and Mangalore during 1976-77 the capacity for handling traffic in bulk commodities like iron ore, coal and fertilisers will be considerably augmented. Provision has also been made for work in connection with replacement of oil pipeline at Bombay, Salaya off-shore terminal, and Kudremukh Iron ore export at Mangalore.

60
5.11 3. The draft Fifth Plan, provided an outlay of Rs. 308 crores for major ports including about Rs. 200 crores for spill-over schemes. The total outlay now envisaged is Rs. 521.46 crores including Rs. 363.55 crores for spill-over schemes. Minor Ports 5.114. In the revised Fifth Plan, an outlay of Rs. 49,67 crores has been provided for minor ports including Rs. 27.29 crores in the Plans of States and Union Territories. The provision for Central schemes is on account of Minor Ports Survey and Dredging Organisation and development of port facilities in the Andaman and Nicobar Islands and Lakshadweep. Shipping 5.115. In view of a number of major and far-reaching developments such as decline in the import of crude oil, opening of the Suez Canal, non-materialisation of the projected coastal movement of coal, and escalation in the price of ships, the target for shipping tonnage has been reduced from 8.6 million GRT to 6.5 million GRT. Details of the operative tonnage, tonnage on order and tonnage to be acquired are shown in Annexure 36. 5.116. Indian ships, whether new or old are acquired partly by the Shipping Companies out of their own resources and partly through loans granted by the Shipping Development Fund Committee (SDFC) at subsidised rates of interest. A provision of Rs. 410 crores for the Plan period has been made as against the original estimates of Rs. 243 crores. 5.117. Suitable provision has also been made for expansion of training facilities and programmes for the walfare of seamen and for loan assistance to the sailing vessels industry. Inland Water Transport 5.118. Outlay of Rs. 14.73 crores for next two years includes development of Rajabagan Dockyard, operations of the Central Inland water Transport Corporation and operation of river services on the Ganga. In the Centrally Sponsored programme, the provision of Rs. 5.83 crores is mainly for dredging of Cum-berjua Canal in Goa, ferry services on Hooghly, improvement of Champakara-Neendakara Canal in Kerala and improvement of Buckingham Canal in Andhra Pradesh and Tamil Nadu. 5.119. In addition, a provision of Rs. 7.75 crores has been made for the development of Inland Water Transport in the States and Union Territories. Light Houses 5.120. As against the draft Fifth Plan provision of Rs. 12 crores for lighthouses and lightships, the revised provision is Rs. 1 3.66 crores. Of this, the provision for 1977-79 is Rs. 6.13 crores. The revised outlay includes Rs. 6.53 crores for Salaya Decca Chain and Floating Aids for approach channel to the Salaya Off-shore Terminal. Air-India 5.121. One Boeing 747 aircraft joined the Air India fleet of 5 Boeing 737 and 9 Boeing 707 during the Plan period. The outlay of Rs. 38.65 crores during "1977-79 has been made to cover this liability as well as other supporting facilities including interim arrangements towards establishing real time computer system. Indian Airlines

61
5.122. Indian Airlines have already acquired during this Plan period 6B-737 aircraft and placed orders for 3 Air Buses (equivalent to 9B-737 aircraft) which are expected to join Indian Airlines fleet shortly. The old Turboprop aircraft are also to be replaced. A total provision of Rs. 99.45 crores has been made to cover the payment liability of the aircraft acquired or to be acquired and for interim arrangements towards use of real time computer facilities. International Airports Authority of India 5.123. A sum of Rs. 27.67 crores has been provided for the programme of IAAI in the Fifth Plan. This includes a provision of Rs. 11 crores for a new International and Cargo Terminal Complex at Bombay. Civil Aviation Department 5.124. The provision of Rs. 65.15 crores inter alia includes outlays on aeronautical communication services and works at aerodromes. Under aeronautical communication services, provision has been made for augmentation of calibration facilities and for improving the aeronautical fixed and mobile telecommunication net work. These would further improve the safety of aircraft operation. As regards works at aerodromes, the emphasis in the Draft Fifth Plan on the development of existing aerodromes rather than the taking up of new works has been continued. Meteorology 5.125. The Plan provision of Rs. 39.58 crores includes the completion of 2.36 M Telescope by the Indian Institute of Astro-physics. This also includes a provision of Rs. 20 crores for Monsoon 1977 experiment, Monex 1979 and INSAT programme. Tourism 5.126. A provision of Rs. 23.62 crores has been made for the programme of Department of Tourism and that of Rs.17.12 crores for the India Tourism Development Corporation (ITDC). The programmes under the Department of Tourism include loans to hotel industry in the private sector, integrated development of tourist resorts at Kovalam, Gulmarg, Goa and KuliiManali and construction of a number of youth hostels,tourists bungalows and forest lodges. The programmes under ITDC include expansion of hotels and construction of travellers' lodges, motels and cottages. 5.127. In the State Sector also a provision of Rs. 33.21 crores has been mt.de for the development of tourism. Postal Services 5.128. The Plan provision of Rs. 24.38 crores apart from covering the expenditure on opening or upgradation of 2520 post offices during the first three years of the Fifth Plan, is expected to enable opening or upgrading of additional 3800 post offices in the next two years. Telecommunications 5.129. The revised Plan outlay of Rs. 1129.45 crores would enable creation of additional exchange capacity of 8.42 lakh lines. 5.130. Adequate funds have been set apart for expanding the telegraph system and opening of about 45 Telex exchanges with 10,000 lines capacity.

62
Overseas Communication Services 5.131. The revised provision of Rs. 35.87 crores includes funds for INTEL-SAT Dehradun Earth Station, SPC Telex Exchange at Bombay and Indo-USSR Tropo Link. Token provisions have also been made for a wide-band submarine Link between India and Malayasian Peninsula as well as the new schemes relating to Indo-Afghan Tropo-scatter Link, Andaman Earth Station and Third Earth Station at Calcutta. I.T.I, and Hindustan Teleprinters Limited 5.132. Adequate provision has been made for the continuing and the expansion programmes of these industries. 5.133. The statement below gives the programme-wise outlays: Fifth Plan Outlay : Communications programme (0) 1. P and 7" Department (i) postal services (ii) telecommunications 2. other communications (i) indian telephone industries (ii) overseas communications service (iii) hindustan teleprinters limited (iv) monitoring organisation (for radio frequency management) (v) INSAT 3 Total outlay (Rs. crores) (1) 1153.83 24.38 1129.45 112.78 52.85 35.87 3.00 1.06 20.00 1266.61

Sound Broadcasting 5.134. The revised provision of Rs. 37.63 crores lays emphasis on completion of continuing schemes costing Rs. 32.52 crores. The balance provision is for initiating action for new Transmitter schemes, improvement of studio facilities, software requirements and construction of staff quarters. Television 5.135. The revised Fifth Plan outlay for TV is Rs. 50.98 crores, of which Rs. 33.41 crores is for continuing schemes and Rs. 17.57 crores for new schemes. The new schemes include setting up of 2 transmitters of 10 KW each at Hyderabad and Jaipur and 4 low-power transmitters of 400 watts at Gul-barga, Sambalpur, Muzaffarpur and Raipur. These transmitters would serve about 40 per cent of the villages covered under the Satellite Instructional Television Experiment (SITE) programme after the termination of Experiment. For Community Viewing, provision has been made for about 3000 conventional TV sets and modificatipn of about 2400 special sets deployed under the SITE programme. The Plan also provides for software schemes to improve the quality of programme. 7. Education

63
5.136. Plan outlays for education during the first three years of the plan have been somewhat modest because of the economic situation but the growth in the total governmental expenditure on education, both plan and non-plan, must be considered substantial. The total expenditure is estimated to rise from Rs. 1450 crores in 1974-75 to about Rs. 2287 crores in 1 976-77. 5.137. Elementary Education : Very high priority has been given to this programme. Adequate provision has been made for additional enrolment in terms of teaching personnel and construction of class-rooms, especially in backward areas. 5.138. The table below indicates the additional enrolments, which are likely to be achieved by the end of the Fifth Plan : Growth of Enrolment (figures in lakhs) CLASSES I-V boys girls (1) (2) 396 245 (100) (66) 37 33 30 63 308 (79) CLASSES VI-VIII boys girls (4) (5) 107 (48) 46 (22) 17 16 33 140 (59) 12 13 25 71 (32)

1. 2. 3. 4. 5.

(0) 1973-74 (position) *

total (3) 641(84) 70 60 130 771(96)

total (6) 153 (36) 29 29 58 211 (46)

1974-77 (additional achievemenit) 1977-79 (proposed additional 30 target) 1974-79 (additional achievement 67 line 2+3) 1978-79 (likely position) 463 (111)

5.139. In addition to the expansion of educational facilities, provision has been made for curricular reorientation, work experience and strengthening of educational institutions for teachers. 5.140. Secondary Education : The existing trend in the increase of enrolment has been kept in view. Against the additional enrolment of 1 5 lakhs likely to be achieved in the first three years, an enrolment target of another 15 lakh in classes IX-XI/XII has been proposed for 1977-79. The percentage of children of the age-group 1.4-1 71 8, enrolled in classes IX-XI/XII will increase from 20 in 1973-74 to 25 in 197879. While making provisions, note has been taken of the requirements on account of the introduction of the new pattern of education. 5.141. After detailed preparatory work, vocationalisation at the secondary stage will be initiated in selected areas during the next two years so that well-conceived and fully thought-out programmes are implemented. 5.142. University Education : The main emphasis in university education is on consolidation and improvement. Provision is, however, being made to provide additional educational facilities to weaker sections of society and in the backward areas. Facilities through evening colleges, correspondence courses and private study will be expanded. Post-graduate education and research will continue to be strengthened through the development of centres of advanced study, science service centres, common computer facilities and regional instrumentation workshops. Programmes of faculty development, like summer institutes, seminars and orientation courses will be stepped up. These figures are taken from Draft Fifth Plan. The Third Education Survey, however, indicated that the enrolments in classes l-V-andVI-VIII in 1973-74 were 611 lakhs (80%) and 141 lakhs (33%) respectively. Assuming the Survey enrolments as the base figures, the loial enrolment in 1978-79 in Ihese iwo groups would be 741 lakhs

64
(92%) and 199 lakhs (43 %).Figures in parenthesis indicate the proportion of children of respective age groups enrolled in Classes I-V and VI-VIII. 5.143 Non-Formal Education : With the strengthening of existing programmes of non-formal education, about 16 lakh participants are expected to be covered under these programmes. The existing programmes are intended to be reviewed. 5.144. Scholarships: 12,000 awards are being given every year from 1974-75 onwards, from the non-plan budget. The number of annual awards under the National Scholarship Scheme was 3,000 in each of the first two years of the Plan and 5000 in 1 976-77. Provision has been made to increase the number to 7,000 in 1 977-78 and to 10,000 in 1 978-79. Provision has also been made for continuing 20,000 yearly national loan scholarship awards during the Fifth Plan period. The number of national scholarships for talented children from rural areas, which was 1 0,000 each year during 1 974-77, will be increased to 1 5,000 per year during 1 977-79; thus increasing the number of scholarships per community development block from 2 to 3. Other programmes of scholarships will be continued. 5.145. Language Development: Provision has been made for the appointment of 2000 additional Hindi teachers in middle and secondary schools during 1977-79, in non-Hindi speaking States. These are in addition to 4,000 teachers appointed during 1974-77. This programme will be reviewed with a view to determining its benefits. The Central Institute of Indian Languages (Mysore), the Kendriya Hindi Sansthan (Agra), the Rashtriya Sanskrit Sansthan (New Delhi) and the Central Institute of English and Foreign Languages (Hyderabad) will be further developed. 5.146. Other Programmes : Provision has been made for strengthening of the existing Nehru Yuvak Kendras and for setting up some more Kendras at approved places. While the coverage of the National Service Scheme will be expanded. National Service Volunteers Scheme is expected to be launched on a pilot basis. Facilities for games and sports, coaching camps and rural sports will be expanded. Provision has been made for the development of Central Libraries. 5.147. Technical Education : Generally, the emphasis is on consolidation and quality improvement in terms of faculty development, replacement of obsolete equipment and diversification of courses. Centres of studies in material science, cryogenic engineering, energy studies and ocean engineering are expected to be established in close collaboration with user agencies. Provision has been made for augmenting physical facilities at the existing Institutes of Management, and preparatory work will be started for establishment of the fourth Institute at Lucknow. Reginal Engineering Colleges and the Engineering Departments in the universities will be-further developed. 5.148. Cultural Programmes : Provision has been made, inter alia, for further development of the three national academies of Sahitya, Sangeet Natak and Lalit Kala, propagation of culture among college and school students, revision of district gazetteers and development of various activities of the Archaeological Survey of India. 5.149. 20-Point-Socio-Economic Programmes : Three components of this programme are provision of books and stationery to students at cheaper rates, supply of essential commodities to hostel students at subsidised prices and expansior if apprenticeship training programme. The capacity of the textbook printing presses is being developed further. Book banks will continue to be established in educational institutions. The coverage of apprenticeship scheme is being expanded. 5.150. Outlays : For completing the various tasks related to educational development, an outlay of Rs. 1285 crores has been provided for different sectors as indicated below : (Rs. crores)

65
sub-head (0) 1. 2. 3. 4. 5. 6. 7. 8. 9. elementary education secondary education university education special education other programmes toial (general education) technical education art and culture Total education likely expenditure 1974-77 (1) 180 111 140 9 57 497 75 16 555 proposed 1977-79 (2) 230 139 152 9 65 595 81 21 697 proposed fifih plan outlay (3) 410 250 292 18 122 1092 156 37 7285

In relation to the first three years, the proposed outlay in the next two 'ears marks a considerable step-up. 8. Health, Family Welfare Planning and Nutrition Health Central Sector 5.1 51. In the draft Fifth Plan, an amount of Rs. 252.79 crores was provided for this sector The expenditure during the first three years is likely to be Rs. 1 52-93 crores. An outlay of Rs. 182'90 crores has been recommended for the last two years after assessing the performance of various major on-going programmes and after keeping in view the broad aspects of health strategy. 5.152. Among the Centrally sponsored schemes National Malaria Eradication Programme has been allocated Rs. 196-44 crores as against the original provision of Rs 96-71 crores in the Draft Fifth Plan. A substantial increase in the outlay for this programme has become necessary to contain the disease according to a revised strategy. Provision has also been made for more effective implementation of National Leprosy Control Programme and the National Scheme for prevention of impairment of vision and control of blindness. A pilot research project to develop a strategy for control of filaria in rural areas has also been included. Adequate provision has been made during 1 977-79 for establishing combined food and drug testing laboratories and for giving Central assistance to existing food laboratories in the States. State Sector 5.153. An outlay of Rs. 543 21 crores was provided in the draft Plan for various health programmes under the States and Union Territories. The total likely expenditure for the first three years of the Fifth Plan is estimated at Rs. 159-92 crores. For the remaining two years of the Fifth Five Year Plan i.e., 1977-79, an outlay of Rs. 185-91 crores has been recommended. 5.154. These provisions include the requirements of the on-going programmes and the reed for reasonable expansion, extension and development of rural health services. It has been ensured that all the primary health centres and sub-centres in the country would get drugs at the enhanced level of Rs.1 2,000/-per PHC and Rs. 2,000/- per sub-centre per annum. Adequate provision has also been made for medical education. General 5.155. The revised total Fifth Plan outlay for the Health Sector thus works out to Rs. 681.66 crores. The break-up of the outlay for the Central and State Sectors is given below :

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(Rs. crores) scheme (0) 1. central 2. centrally sponsored 3. siaies/U.Ts 4. Total Family Welfare Planning Programmes 5.156. In the draft Plan an amount of Rs. 516.00 crores was provided for programmes relating to family welfare planning. The likely expenditure during the first three years of the Fifth Plan is expected to be of the order of Rs. 237.65 crores. 5.157. An outlay of Rs. 259'71 crores has been recommended for the period 1977-79. The family planning programmes wilt be carried forward in an integrated manner alongwith Health,Maternity and Child Health Care and Nutrition services on the basis of the strategy outlined in the draft Fifth Plan. Firm and bold steps envisaged in the National Population Policy to improve the tempo of the programme has been kept in view in recommending the revised outlays. To cope with the increasing demand for sterilisation, facilities will be expanded at 1000 selected Primary Health Centres and 325 Taluka level hospitals during 1976-79. Two hundred additional post-partum centres beyond the original targets in the draft Fifth Plan are also proposed to be opened. Another unit of the Hindustan Latex Ltd. will be set up at Farakka to meet the increased demand of Nirodh. The India Population Project with Sl DA/I DA assistance will be carr.pleted by the end of the Fifth Plan. Special multi-media motivation campaigns on pilot basis will be launched in Uttar Pradesh, Andhra Pradesh, and West Bengal. Maternity and child health programmes will be vigorously pursued and furds for this purpose will be made available on the basis of performance. Research and evaluation facilities will be strengthened. Funds for completion of incomplete buildings and for construction of essential buildings for Rural Family Welfare Planning Centres have been provided. 288 New Rural Family Welfare Planning Centres will be opened in a phased manner. 5.158. A total provision of Rs. 497.36 crores has been envisaged in the revised Fifth Plan. Summary of the outlays is given in the enclosed statement (Annexure 37). Nutrition Central Sector 5.159. Indraft Fifth Ptan, an amount of Rs. 70 crores was provided in the Central Sector. Rs. 50 crores were earmarked for the Subsidiary Food and a Nutrition Scheme of the Department of Food, and Rs. 20 crores for the Applied Nutrition Programme of the Department of Rural Development. Nutrition Schemes of the Department of Food 5.160. The likely expenditure during the first three years of the Fifth Plan is placed at Rs. 6.53 crores. Under the revised Fifth Plan an outlay of Rs. 6.70 crores has been provided during 1977-79 for production of nutritions foods. An amount of Rs. 1.27 crores has also been recommended during 1977-79 for other schemes like fortification of Food Stuffs, nutrition education through mass media, Pilot Research Projects etc. An outlay of Rs. 7.97 crores has thus been recommended for 1977-79 making up a Fifth Plan provision of Rs. 14.50 crores. 1974-77 anticipated expenditure (1) 28.60 124.33 159.92 372.85 1977-79 proposed revised fifth outlay plan outlay (2) 39.06 143.84 185.91 368.87 (3) 67.66 268.17 345.83 681.66

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Applied Nutrition Programme (Deptt. of Rural Development) 5.1 61. The outlay of Rs. 20 crores provided in the draft Fifth Plan was meant for providing Central assistance to the on going Applied Nutrition Blocks, opening of 700 new blocks and maintenance of post operational blocks for one year after existence for a period of five years. Due to constraint of resources in the social Services Sector only 192 blocks were set up in the first two years (1974-76) of the Plan. The likely expenditure during the first three years of the Plan is Rs. 4.48 crores. A sum of Rs. 8.51 crores has been recommended for 1977-79. The total outlay under the revised Fifth Plan works out to Rs. 1 2.99 crores. State Sector 5.1 62. In the draft Fifth Five Year Plan, an amount of Rs. 330.00 crores was provided for the States and Union Territories, for the supplementary Feeding programmes, i. e.. Mid-day Meals Programme for the School going children and Special Nutrition Programme for the children in the age group of 0-6 years and expectant and lactating mothers. Likely expenditure during the first three years of the Plan is placed at Rs. 44.24 crores. The slow progress in the initial years of the Fifth Plan was mainly due to the financial constraint and non-availability of funds in the non-Plan budgets of the State Governments for meeting cost of food, administration and transport for the beneficiaries. For the remaining years of the Fifth Plan adequate provision has been made from the non-Plan resources of the State for beneficiaries cf special nutrition programme at the end of the Fourth Plan. After taking into account a reasonable expansion, a provision of Rs. 43.94 crores has been recommended by Planning Commision for 1977-79-The revised outlay under the Fifth Plan thus works out to Rs. 88.18 crores. A statement showing programme-wise break-up under the revised Fifth Plan is attached (Annexure 38). 9. Urban Development, Housing and Water Supply Urban Development 5.163. Provision made in the State Plans for integrated Urban Development are being supplemented by funds provided for the scheme of integrated Urban Development in the Central Sector. This scheme provides loan assistance to State Governments for developing the necessary infrastructure. It is expected that over a period of time the State Governments will be able to build up a corpus of seed money for expansion programmes 5.164. Urban Development progrmmes were taken up in the three metropolitan cities of Calcutta, Bombay and Madras and nine other cities in 1974-75. Additional six cities were taken up in 1975-76 and it is expected that six more will be taken up during 1976-77. Work for the preparation of Plans for some other cities is in hand . 5.165. In view of the progress made so far, total provision of Rs. 256.13 crores has been made for Urban Development for next two years against a likely expenditure of Rs. 249.33 crores during 1974-77, as indicated in Annexure 39.Housing 5.166. The main thrust of the programmes in the Fifth Plan is directed towards ameliorating the conditions of the backward sections of the society. This is sought to be achieved by augmenting the programmes for the construction of housing colonies by State Housing Boards and by taking up on a large scale a programme for the provision of house-sites for landless labourers in rural areas. While the bulk of this programme is being undertaken in the State Plans, the activities of the Housing and Urban Development Corporation in the Central sector are being geared up to meet the expanding demand. A provision is being made to increase the Equity participation in HUDCO to enable it to generate resources of the order of Rs. 150 crores in the Fifth Plan period. Separate provisions have been made for the scheme of subsidised housing for plantation labourers and Dock labourers. AdeqLate emphasis has also been

68
placed on research and development activities for generating better and cheaper designs. The outlays for various programmes in the State and Central sectors have been indicated in Annexure 40. Water Supply and Sanitation Rural Water Supply 5.167. The main objective is to provide safe water supply in difficult and problem villages. At the end of the Fourth Plan period, it had been estimated that there were 1.13 lakhs of such villages. It is expected that in the first three years of the Fifth Plan with a provision of Rs. 201.10 crores, about 57,800 villages would have been covered. The allocation made for the remaining two years is on the basis of providing safe water supply for additional 53,900 villages. The provision which has been made is of the order of Rs. 180.14 crores (inclusive of Rs. 1 57.87 crores under the MNP). The revised Fifth Plan outlay would now be Rs. 381.24 crores. Urban Water Supply and Sanitation 5.168. Particular emphasis is being laid on completion of spill over schemes. In the first three years with an investment of Rs. 257.54 crores, about 266 towns are likely to be covered with water supply and 46 towns with sewerage and drainage systems. With an outlay of Rs. 281.63 crores for the remaining two years of the Fifth Plan, about 254 towns are likely to be covered with water supply and 38 with sewerage and drainage systems. The outlay mentioned above will be supplemented from the Central sector scheme of Integrated Urban Development in cities of national importance such as Bombay, Calcutta, Madras, Hyderabad, Ahmedabad, Bangalore, Kanpur, Lucknow, Agra, Allahabad, Varanasi, etc. The outlay in the Fifth Plan amounts to Rs. 539.17 crores against the outlay Rs. 431.00 crores in the Draft Fifth Plan. 5.169. The revised Fifth Plan also provides for an outlay of Rs. 10.27 crores for supporting programmes such as public Health Engineering training to train about 3000 Public Health Engineering personnel and mechanical composting to set up 27 mechanical compost plants along with 60 mechanical sieve plants in different cities. A provision also exist for converting about 30,000-35,000 dry latrines into sanitary latrines. 5.170 The revised outlays for water Supply and sanitation are given in Annexure 41. 10. Craftsman Training and Labour Welfare Central Plan 5.171. In the draft Fifth Plan, an amount of Rs. 14.57 crores was provided in the Central Plan. The likely expenditure during the first three years of the Fifth Plan is placed at Rs. 4.01 crores. 5.172. For the two year period 1977-79 a provision of Rs. 10.17 crores has been made. This will cover (i) the requirements of the major on-going training institutions such as the Central Staff Training and Research Institute, the Foreman Training Institute, and the Central Training Institutes for instructors ; (ii) the strengthening/extension of the Advanced Training Institute ; (iii) the expansion of the Apprenticeship Training programme ; (iv) Vocational Training in Women's occupations ; and (v) Sche.nes relating to research, surveys and studies to be undertaken by various institutes. Flans of States Union Territories 5.173. In the draft Fifth Plan, an amount of Rs. 42.37 crores was provided for States and Union Territories. The likely expenditure during the first three years of the Plan is placed at Rs. 15.69 crores. 5.174. For the two year period 1977-79, an .outlay of Rs. 20.27 crores has been suggested keeping in view the requirements of (i) the industrial training institutes ; (iiy-the expansion of the Apprenticeship Training Programmes in the establishments ; (iii) the strenghtening of the employment service organisations; (iv) the setting up of labour welfare centres, and promoting safety measures; and (v) the Employees' State Insurance Scheme,

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Revised Fifth Plan Outlays for Craftsmen Training and Labour Welfare (Rs. lakhs) draft fifth five year plan (0) centre state union territories Total (1) 1457 3751 486 5694 1974-77 anticipated expenditure (2) 401 1407 162 1970 1977-79 proposed outlay (3) 1017 1685 342 3044 revised fifth plan outlay (4) 1418 3092 504 5074

ll. Hill and Tribal Areas, Backward Classes Social Welfare and Rehabilitation Hill Areas 5.175. This scheme refers to the hill regions of Assam, Tamil Nadu, U.P., West Bengal and the Western Ghats region. Programmes of singnificance are funded party from the State Plan and partly from the subplan allocations. During the fisrt three years of the Plan, Central allocations would be of the order of Rs. 76 crores while the States are likely to invest about Rs. 68 crores. 5.176. With the experience gained so far, the programme is now expected to gather momentum. A provision of Rs. 94 crores is earmarked for the next two years in the Central Plan. Tribal Areas 5.177. Tribal sub-plans incorporating programmes of particular significance to the tribal economy are being prepared for areas, with large concentration of Scheduled Tribes, in 16 States and 2 Union Territories. These programmes are funded through provisions in the State Plans, and Central assistance. So far about 40, out of 145 Integrated Tribal Development projects have been formulated and an amount of Rs. 65 crores is likely to be spent during the first three years of the Plan. 5.178. Initial difficulties are now expected to be overcome and it is expected that the rest of the lTDPs would be formulated and implemented in the remaining period of the Fifth Plan. On this basis, a provision of Rs. 125 crores of Central assistance is being made for the next two years. 5.179. Priority has been accorded to regional schemes of agriculture, power and communications forwarded by NEC for securing a balanced development of the north-eastern region. It is expected that in the first three years an expenditure of Rs. 28 crores would be incurred on such schemes. Due to initial difficulties in identifying and implementing schemes, the programme has had a slow start. It is, however, now gathering pace. A provision of Rs. 62 crores has been kept for the next two years. 5.180. A statement indicating the outlays for these programmes is given below : (Rs. crores) anticipated expenditure 1974-77 (0) 1. Hill areas 2. N.E.C. (1) 76 28 outlays for 1977-79 (2) 94 62 total fifth plan (3) 170 90

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3. tribal areas 4. total 65 169 125 281 190 450

Welfare of Backward Classes 5.181. The revised Fifth Plan outlays for the Centre and the States have been raised to Rs. 119 crores and Rs 208 crores respectively. The details are given in Annexure 42. In the Central Plan, emphasis has been placed on post-matric scholarships, schemes for coaching of students and girls' hostel. In the State Plans, provision has been made inter alia for educational incentives, subsidised housing, various agricultural programmes and requirement of development Corporations. Social Welfare 5.182. The revised Fifth Plan outlays for the Centre and States are Rs. 63.53 crores and Rs. 22.60 crores respectively. Details are given in Annexure 43. 5.183. These outlays are related to the progress reported in the implementation of the various schemes. Care has been taken to ensure that important programmes like Intergrated Child Care Services, Working Girls Hostels, Scholarships for Handicapped Persons in the Central Sector and women and child welfare Programmes and Programmes of Social Defence in the State sector are provided adequate funds. Rehabilitation 5.184. The Draft Fifth Plan envisaged the resettlement of 65827 families. This figure has now been reassessed at 67067 familes. It is expected that against an overall expenditure of Rs. 47.62 crores in the first three years of the Plan, 35767 families would have been recently resettled. The outlays for the next two years of the Fifth Plan are based on the following considerations : (i) Sri Lanka : Of the expected 28,434 families, 16,434 have so far been resettled at a cost of Rs. 14.17 crores. It is expected that 12,000 families would be resettled during the next two years at an approximate cost of Rs. 14 crores. (ii) Dandakarnaya : Of the 9120 families in camp, 3120 have been resettled in the first three years at an approximate cost of Rs. 1 3.54 crores. It is expected that 6000 families would be resettled in the remaining period of the Plan at an approximate cost of Rs. 12 crores. Besides the direct cost of resettlement, the outlays include expenditure on major irrigation projects and other infrastructure development. (iii) Residual problems of rehabilitation in West Bengal : On the basis of the recommendations contained in the report of the working Group set up by the Department of Rehabilitation, a provision of Rs. 10.20 crores has been made. This is based on an assessment that besides acceleration of the SFDA/MFAL programmes in areas where these migrants were concentrated and outlays required for the provision of medical facilities, 8000 plots in the colonies of displaced persons located in the Calcutta Metropolitan District and 4000 other urban plots would be developed. (iv) Other Schemes : With regard to progammes for the resettlement of repatriates from Burma, West Pakistan, Uganda, Zaire and migrants from Indian enclaves in former East Pakistan, an expenditure of Rs. 1 7.73 crores has been incurred in the first three years of the Plan, to resettle 1 5843 families. It is expected that in the remaining two vears 11 300 families would require resettlement for which a provision of Rs. 1 7.39 crores has been made. 5.185. Scheme-wise outlays provided in the Fifth Plan are given in Annexure 44.

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12. Science and Technology 5.186. In finalising the Fifth Five-Year Plan for Science and Technology (S&T) an attempt has been made to restructure research programmes as far as practicable into projects with predetermined time spans, costs and expected benefits. In a departure from previous practice, the S&T programmes of the different Ministries were the subject of separate discussions at which emphasis was placed on aligning research programmes to conform more closely with plan priorities and promoting quicker interaction between the users of research and the research agencies, so that problems ara more sharply defined and transfer of technology is facilitated. 5.187. Particular attention Fs expected to be paid to fuller use of existing facilities, avoiding of unplanned duplication of research into similar problems by different agencies, minimising sub-critical funding by spreading resources over too many projects, and closer monitoring of research programmes right up to the stage of their application in the field. 5.188. The thrust of the various sectoral programmes broadly remain as outlined in the draft Fifth Plan. In agriculture, specific emphasis will be placed on programmes to control crop diseases, crop sequencing, dry farming, agricultural implements, post harvesting technology etc. New agro-industrial complexes, setting up of a fish farm and increased support to agricultural institutes, animal sciences and fisheries institutes are envisaged in the Plan. Programmes for improving the technology used in village and rural industries are proposed to be intensified. Activities proposed cover bee keeping, pottery, palm gur, gur and khandsari. To acquire a closer insight into the problems of optimal management of water resources, an Institute of Hydrology is proposed to be set up. Steps will be taken to see that central R & D irrigation schemes are not sub-criticaliy funded and a mechanism is set up to see that research findings are expeditiously applied in the field. 5.189. In the area of energy, a multi-pronged approach to develop biogas technology, as well as new sources such as solar energy, tidal and wind power has been initiated. A major programme on magneto hydro dynamics is being undertaken as an inter-institutional project. Programmes for improved mining techniques, mine safety, transportation and gassification of coal have been given priority. Programmes for developing stowing materials, improved instruments, and processes for upgrading coal are being funded. 5.190 In power engineering, test facilities, specially those connected with high voltage/DC transmission lines have been given special attention. No significant departures from the draft Fifth Plan programmes have been proposed in the research programmes of the Department of Atomic Energy except for the power reactor fuel reprocessing plants and investment in facilities for making seamless steel tubes for ball bearings and power plants. 5.191. In steel, the major thrust in use of S&T has been to improve the productivity and capacity utilisation of the steel plants, utilise low grade materials, improve refractory quality, develop new alloys and work on new techniques for making sponge iron. A wide range of chemicals particularly pesticides, drugs, and intermediates hitherto imported, is being developed by several institutions, in particular by CSIR laboratories and the public sector companies in these fields. In heavy engineering, the setting up of a research institute for welding deserves special mention. 5.192. Special emphasis is being paid to surveying and research on developing the country's natural resources. The programmes of bodies such as the National Remote Sensing Agency, geological and other surveying agencies and National Institutes of Oceanography have been given high priority. These are being supplemented by the programme of the Department of Space for launching satellite with remote sensing capabilities and institutional research facilities for petroleum exploration and reservoir studies. Tree breeding and prevention of disease in important tree species have been given special attention. In meteorology, apart from strengthening the existing institutes, a major new programme is India's participation in Monsoon 77 in collaboration with USSR and Monex (monsoon experiment) as a part of a

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world-wide study of the factors which affect the weather. Provision has been made for INSAT-1, the proposed Indian-owned geo-synchronous satellite which will provide a variety of meteorological data. 5.193. In health, the focus has been placed on research into new methods of family planning, integrated system for delivery of health care services to infants, and control and prevention of communicable diseases including malaria, tuberculosis and cholera. 5.194. The priority area in housing and urban development is the development of new low cost housing designs and materials, rural sanitation and waste water treatment. Agencies concerned with environmental protection have been given due attention. 5.195. In the area of electronics, substantially more funds will be given to various institutions for research in the indigenisation of a large variety of electronic components. In addition, the Department of Electronics will establish major multi-user regional computer centres in certain metropolitan cities and set up a corporation for making semi-conductor devices. Support will be given to developing the infra-structure for electronic standards and testing techniques at various institutes like NPL and the national test houses. The Department has already established corporations for maintaining computers & developing trade and technology in electronic items. Tele-communication research will concentrate on indigenising many of the components hitherto imported and development work on electronic communication systems, the major emphasis being on instruments, transmission system and exchange equipment. An Asian Telecommunication Training Centre is proposed to be set up at Ghaziabad. 5.196. The major efforts in space research will be to gear up research work and develop components to enable a series of variants of the SLV 111 launcher being produced and more advanced satellites being launched in collaboration with other countries. The proposed INSAT-1 which, in addition to meteorological equipment will have various tele-cummunication and other capabilities, will give added relevance to these programmes. 5.197. Under the Department of Science & Technology, plans have been finalised for making a beginning with the national information system on science and technology (NISSAT). Provision has been made for the manufacture of fer rites and electronic ceramics by a new company and for a substantial step-up in funds for sponsored projects under the Science and Engineering Research Committee. 5.198. Considerable effort is proposed to be put into developing new instruments for operation, process control, measurement and research by a variety of agencies. Coordinating inputs are proposed to be provided by the Instrument Development Division of the Department of Science & Technology. 5.199. Testing facilities under agencies like the National Test House and Indian Standards Institution will be strengthened. 5.200. In order to stimulate indigenous research, industrial licensing regulations have been liberalised in the case of industries which are proposed to be set up based on R&D developed in-house or by national laboratories. The question of levying R&D cess is under consideration. 5.201 A Department wise distribution of the outlays for Science and Technology is indicated in Annexure 45. A provision of Rs. 5 crores has been included in the outlays of each of the Ministries of Information & Broadcasting and Tourism & Civil Aviation (Meteorology) for INSAT.

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6th Five Year Plan

Chapter 11:

RURAL DEVELOPMENT AND COOPERATION

Development of the rural areas has been one of the abiding concerns of the successive five year plans. Beginning with Community Development /programme in the early 50's which helped to establish a network of basic extension and development services in the villages, thereby creating awareness in the rural communities of the potential and means of development which made quicker adoption of major technological advances later in the mid 60's in agriculture possible, reinforced with abolition of intermediary landlords and reform of land tenure system, the investments in the successive five year plans have led to the creation of essential pliysical and institutional infrastructure of socio-economic development in many rural areas. Later, realising that the benefits of various development programmes were in the main being taken by those better endowed in terms of land resources, programmes specifically designed for the development of small and marginal farmers and the landless and agricultural labourers were taken up in the early 70's. A special programme for the development of Drought Prone Areas (DPAP) was introduced in the mid 70's and a programme of development of desert areas in the late 70's. A programme of Food 'for Work was launched in 1977 to provide opportuniities of work for the rural poor particularly in slack employment periods of the year which would at the same time create durable community assets. Irrigation facilities have been expanded manifold. With a view to removing regional disparities, particularly in less endowed or dis-advantaged areas, like the hill and tribal areas, special sub-plans of development were introducd. Special financial and fiscal concessions, credit on softer terms and subsidies have also been made available to under-developed areas to attract increased industrial investment. A Minimum Needs Programme was designed to secure to the rural areas within a reasonable time-frame certain basic amenities in the field of education, health, drinking water, electrification, roads and house-sites. The major thrust of the Five Year Plan 1980-85 will be on strengthening the socio-economic infrastructure of development in the rural areas, alleviating rural poverty and reducing regional disparities. The specific programmes and strategies to be adopted during the Plan period to achieve these goals have been dealt with in relevant chapters. This Chapter deals only with special employment and income generation programmes for the rural poor, special area development programmes and the institutional means for rural development. RURAL DEVELOPMENT Review 11.2 The Small Farmers Development Agencies (SFDA) programme, aimed at the target group of small and marginal farmers and agricultural labourers, has been in operation since 1971 covering 1818 blocks in the country. The objective of the Programme was to assist persons specifically identified from this target group in raising their income level. This was to be achieved by helping them, on tlie one hand, to adopt improved agricultural technology and acquiring means of increasing agricultural production like minor irrigation sources, and on tlie other hand, to diversify their farm economy through subsidiary activities like animal husbandary, dairying, horticulture etc. The Agencies were to make particular efforts to ensure that the needed inputs and credit were made available to these persons by respective credit agencies. Enrolling them as members of the credit'cooperatives was one of the operational objects ^of the programme so that they could draw necessary assistance from them. Up to March, 1980 the Agencies had identified 16.7 million persons from the target group for assistance. Of these, 8 million beneficiaries including 1.3 million belonging to the scheduled castes and scheduled tribes, have been assisted. 6.1 million or 75 per cent of these beneficiaries have been helped in acquiring access to improved agricultural practices through subsidised supply of inputs, improved implements and field demonstrations. Bulk of the remaining I.9 million beneficiaries have been covered under the more substantive asset development

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programme like acquisition of milch cattle, sheep, poultry, piggery etc. (0.9 million), minor irrigation (0.9 million), and other categories including forestry and village industries (0.1 million). 11.3 Short term credit advanced to the beneficiaries of this programme through cooperatives was Rs. 27.76 crores during 1979-80 and through commercial banks Rs. 6.03 crores. The cumulative medium and long-term loans advanced through cooperatives upto March, 1980 amounted to Rs. 112.82 crores and Rs. 140.20 crores respectively. The total outlay utilised by way or subsidy to beneficiaries and other grants, and expenditure on execution, amounted to Rs. 156.10 crores during the period 1974-79. It will be seen that while the numbers identified for assistance represented only a segment and not the whole of the target group, the numbers benefited are only about half the number identified. Furthermore, the nature of assistance given to the bulk of them comprised items which did not lead to any specific additional asset creation. The actual impact of these items of assistance on the income of the beneficiaries therefore varied a great deal and in many cases has been of doubtful significance. Where, however, assistance has been given lor developing minor irrigation sources or for acquiring milch cattle, sheep, goats, poultry etc. the impact has been significant. The principal reason for a lower coverage under such asset creation purposes has been the progressive erosion in the integrated functioning of the Block agency which is the main implementation agency, inadequacies of the credit institutions and lack of coordination and adequate support 'from concerned departments to tlie Agencies' -programmes. 11.4 The concept of an Integrated Rural Development Programme was first proposed in the Central budget of 1976-77, and a beginning was made. This programme was intended to' assist the rural population to derive economic benefits from the developmental assets of each area. The programme with some modifications was introduced on an expanded scale in 1978-79, beginning with 2300 blocks, of which 2000 were under coterminus coverage with SFDA, DPAP and CAD programmes. With another 300 blocks added during 1979-80, its coverage was 2600 blocks as on 31-3-1980. Besides the small and marginal farmers, this programme was more specific in regard to agricultural workers and landless labourers and additionally brought within its purview rural artisans also. The programme emphasised the family rather than individual approach in identification of beneficiaries. 5.3 million families had been identified under the programme for assistance as on 31-3-1980. Of these, 2 million families have been already given assistance in some form. Under this programme, as in the SFDA Programme, largest coverage has been under the 'improved agriculture' category (60 per cent in 1979-80), followed by animal Iiusbandry (15 per cent in 1979-80). Though conceptually this programme was comprehensive in scope and sought to secure, through a process of block level planning, fuller exploitation of the local growth potential with a view to making an optimum impact on the local poverty situation, in point of fact it has also tended to operate on the same lines as the SFDA. Undoubtedly the programme has only recently begun and has yet to firmly establish itself. It has also been subject to the same constraints as the ones earlier mentioned in respect of SFDA. 11.5 Drought Prone Areas Programme (DPAP) is currently being implemented in 557 blocks spread over 74 districts in thirteen States. This programme has been in operation since the Fourth Plan. Since its inception upto March, 1980 a total expenditure of Rs. 426 crores has been incurred on this programme. Under this programme upto December, 1979 13.30 lakh hectares of land had been treated with soil and moisture conservation measures, irrigation potential of 2.72 lakh hectares cicatcd, afforestation and pasture development taken up on 4.77 lakh hectares and 72,000 milch animals distributed to individual beneficiaries. The weakest aspect of its operation has, however, been its lack of effort and impact on the development of better dry land farming practices and cropping patterns. 11.6 The Desert Development Programme is operating in 128 blocks covering arid areas in 20 districts in 5 States in the country, including the two cold desert areas of Ladakh and Spiti. The main aim of the programme is to check desertification and combine it with projects which facilitate development of productivity and productive resources of the area and its inhabitants. Under this programme since its inception in 1977-78 upto March, 1980, an expenditure of Rs. 23.21 crores has been incurred. The expenditure has mainly been on schemes of afforestation, water harvesting, rural electrification and animal husbandry. Investments under this programme have been somewhat slow in picking up; particularly in forestry and pasture development. This has been largely due to the forestry organisation in

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the States being inadequately equipped to meet the particular requirements ol the desert areas. However, Rajasthan which has the largest coverage under the programme has now established a specialised Directorate of Desert Forestry and Pasture Development. 11.7 A Food for Work Programme was initiated in 1977-78, aimed at creation of additional employment in rural areas on works of durable utility to the community, with the use of surplus foodgrains available in the buffer stock for payment as wages. Beginning somewhat haltingly, the programme gained momentum in 1978-79 when over 12 lakh tonnes of foodgrains were utilised creating 372.8 million mandays of employment. During 1979-80, the utilisation has been provisionally estimated at 23 lakh tonnes of foodgrains inclusive of the special allotments which were made to the States affected by drought in that year, resulting in about 600 to 700 million mandays of employment as estimated on incomplete reports. The programme, besides creating substantial additional employment in the rural areas during lean employment periods, more particularly in areas affected by the wide spread drought of 1979, has made a favourable impact on stabilisation of wafes in the rural areas and also helped check the rise in prices 01 foodgrains. Notwithstanding, however, its very substantial achievements in respect of employment generation and even more so its popularity and promise, the programme suffered from severe limitations in respect of planning and supervision of works. The operation of this programme on a year-to-year basis had resulted in uncertainty about its continuance for the full Plan period. In the circumstances, the State Governments were disinclined to build the needed technical and administrative support to effectively plan, monitor and oversee the programme. No serious attempt appeared to have been made by the State Governments to develop for each block where the programme was being implemented, a shelf of projects which would be the most useful from the point of view of local needs and would also, fit in with overall national priorities. As a result, works of low priority with dubious utility have been taken up at several places. For want of a back-up financial provision in many States, which could be used to finance the cost of materials required for works, the tendency has been to take up kachha roads on a large scale, which unless brought to at least a semi-pacca stage would not be able to survive one or at best two monsoons. Due to lack of the needed administrative and technical back-up, the work was often executed through contractors. This is, however, not to say that work everywhere has been of this nature. A great deal of durable assets whether in tlie nature of irrigation tanks or school buildings, panchayat buildings, drinking water wells, paving of village streets and drainage and such like have also been created. 11.8 As brought out above the SFDA, IRD, DPAP, DDP and the Food for Work programmes have over the years achieved their objectives only partially. The size of the problem which these programmes, especially the individual beneficiary oriented programmes like SFDA and IRD, have to deal with is enormous. The pace and the manner in which the problem of rural poverty has been dealt with so far leaves much to be desired both qualitatively and quantitatively. Only a small fraction of the rural poor has so far been covered effectively by these poverty amelioration programmes. Even amongst those covered, a sizable portion is of those who had some land. The bottom deciles of the rural poor i.e., the landless and the rural artisans, who are the poorest, have in most cases been left untouched. In the area development programmes (DPAP/ DDP) also, while significant progress has been made in expanding minor irrigation and dairying, the same measure of effort has not gone into the programmes of soil and water conservation on a scientific watershed development basis, and on afforestation and pasture development. These are programmes of critical importance to these areas. Of all elements, the weakest has been the introduction of changes in agronomic practices and cropping patterns most advantageous in the particular agro-climatic potential of the area. Marginal lands continue to be over exploited through crop husbandry even though optimal utilisation in many cases would be through pasture and grass land? development. Animal husbandry is an important and promising activity for these areas but while afiout a million beneficiaries hnve been enabled to acquire milch cattle and other nnima's, the back-up effort in respect of better feed and fodder, health care and breed improvement has been grossly inadequate. The constraints from which these programmes have suffered have not been financial but organisational inadequacies and lack of a clear-cut plan of development for the area to which coordinated effort of all concerned agencies could be directed. Strategy for the Sixth Plan

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11.9 Alleviation of rural poverty will be the prime objective of the Sixth Plan. An increase in the productive potential of the rural economy is an essential condition for finding effective solutions to the problems of rural poverty. At the same times, recognising the constraints which limit the scope for higher growth rate in medium-term, more direct means of reducing the incidence of poverty and destitution would have to be employed. It is well known that the hard core of poverty is to be found in rural areas. The poorest sections belong to the families of landless labourers, small and marginal farmers, rural artisans, Scheduled Castes, Scheduled Tribes and socially and economically backward classes. House-holds below the p'overty line will have to be assisted through an appropriate package of technologies, services and asset transfer programmes. 11.10 The strategy and methodology for accelera* ted rural development will be as follows:

a. increasing production and productivity ifl agriculture and allied sectors; b. resource and income development of vulnerable section of the rural population through
development of the primary, secondary and tertiary sectors;

c. skill formation and skill upgrading programmes to promote self and wage employment amongst
the rural poor;

d. facilitating adequate availability of credit to support the programmes taken up fcr the rural poor; e. promoting marketing support to ensure the viability of production programmes and to insulate the
rural poor from exploitation in the marketing of their products;

f. provision of additional employment opportunities to the rural poor for gainful employment during
the lean agricultural season through a national rural employment programme (NREP);

g. provision of essential minimum needs; and h. involvement of universities, research and technical institutions in preparing a shelf of projects
both for self-employment and NREP and in preparing strategies for the scientific utilisation of local resources. 11.11 The development of the rural areas is the concern of all sectors of the economy and these areas draw benefits of development in varying des-re'ss from various sector. In this chapter programrnes which are directly aimed at the development of the target group of the rural poor and the principal institutional instruments relevant therefor have been dealt with. There are three broad categories of these programmes:

i. ii. iii.

Resource and income development programme for the rural poor. Special Area development programme. Works programme for creation of supplementary employment opportunities.

RESOURCE DEVELOPMENT OF THE RURAL POOR 11.12 A number of programmes have been operating in the country, some for as much as the last ten years (SFDA/MFAL) and some introduced recently, aimed at improving the economic conditions of the rural poor. None of these programmes covered the whole country, though a large number of blocks in the country had more than one of these programmes operating simultaneously in the same area for the same target group. This territorial overlap combined with the different funding patterns of these programmes, not only created considerable difficulties in effective monitoring and accounting, it often blurred the programme objectives. In practice, therefore, these programmes were reduced to mere subsidy giving programmes shorn of any planned approach to the development of the rural poor as an inbuilt process in

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the development of the area and its resources. It is proposed that such multiplicity of programmes for the rural poor operated through a multiplicity of agencies should be ended and be replaced by one single integrand programme operative throughout the country. The programme will be called the Integrated Rural Development Programme (IRDP). Of the 350 million people below the poverty line in the country, around 300 million are in the rural areas. These consist largely of the landless labourers, small and marginal farmers, rural artisans, and other workers. The hard core of poverty is constituted by the marginal farmers, agricultural labourers (about half of whom are landless), rural artisans and fishermen constituting nearly one-third of the rural work force. Possessing little or virtually no assets, they need to be enabled to acquire productive assets and/or appropriate skills and vocational opportunities and then backed effectively with services to increase produc-ion and productivity. If through special programmes of specific beneficiary oriented assistance this group could be brought above the poverty line. a major impact would have been secured on the overall economic levels of the country. 11.13 The main objective of the IRD programme will be to evolve an operationally integrated strategy for the purpose, on the one hand, of increasing rro-duction and productivity in agriculture and "allied sectors based on better use of land, water and sunlight, and on the other, of the resource and income development of vulnerable sections of the population in all the blocks of the country. Any developmental strategy which aims at improving the lot of the rural poor must aim at creating new productive assets for them. Improving the productivity of land by providing access to inputs like water, improved seeds, and fertilizers would be an essential means to help those categories of the rural poor, who have some land asset. Diversification of agriculture through animal husbandry, dairying, forestry, fishery, sericulture etc. will benefit both the landless and the land holders and this would form an important plank of the programme. Processing and manufacturing activities based on local resources will also have to be identified and fully exploited. Post harvest technology will have to be improved so that both producers and consumers benefit from enhanced production. 11.14 Since the bulk of the rural poor are landless or marginal farmers, a significant part of the activities for their benefit will have to be in the non-farm sector. While subsidies will continue on the existing pattern to help the rural poor to acquire productive assets their role which has been overplayed will have to be brought in the correct perspective. Formulation of schemes to launch the prospective beneficiaries in viable economic activities is the linch pin of this programme. Identification of these activities, formulation of projects based on these, provision of forward and backward linkages, arranging of credit and choosing the right beneficiary, are the most important aspects of the process of helping the intended beneficiaries. Village and cottage industries and the services sector offer considerable untapped potential for self and wage employment. These sectors have heretofore received only scant attention in the poverty amelioration programmes. The potential of these sectors needs to be optimally exploited by strengthening the arrangements for the supply of raw materials, consumer-based designs and marketing facilities. It is proposed to cover a sizable number of beneficiaries in each block through programmes in these sectors. Suitable support will be provided through programmes of skill formation. In these tasks, the educational, research and technical institutions will be fully involved through sui'able agreements between them and the concerned development departments. An All India Coordinated Research Project for the development of technologies for increasing the income of landless labour families will be initiated. 11.15 The operational strategy of IRDP will have the following main elements: (1) A five year development profile will be drawn up for each district dis-aggregated into blocks, based on practical (achievable) possibilities of development in agriculture and allied sectors. This plan will be based on a scientific understanding of the developmental assets of the district and will particularly deal with optimum development of ground and surface water (minor irrigation) resources, fuller water utilisation (including private sources like wells and tubewells), and dairy, animal husbandry, fisheries, forestry and local manurial and fuel resources includingbio-gas, development. The plan so formulated will become the framework of action for the relevant . schemes of development in these sectors.

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(2) While access to agricultural extension services is to be provided to all tanners, the programme will ensure that a farm guidance is provided on a systematic basis to the small and marginal farmer families. A specific operational programme will be drawn up by the extension agency for this purpose. (3) A special programme of assistance to the poorest of the rural households will be drawn up to raise the specific households, so identified, above the poverty line. This programme will be implemented on a phased basis. A household rather than individual approach will be followed, implying that the economic uplift of the household will be sought through a package of activities involving all working members, with particular attention being given to economic programmes for women. In the identification of families to be assisted, the village council (Gaon Sabha) must be involved, and the identification done in a manner which would ensure that only those belonging to the target group are identified. (4) A blueprint for exploiting the available potential in the secondary and tertiary sectors, which also spells out linkages for training and marketing will be prepared for each block and families from among the target group identified for assistance based on such a blueprint. (5) A suitable mechanism should also be developed to secure representation of the poor on the implementing agencies at the district, block and village levels to facilitate better planning and implementation of the programme. A village plan register indicating details of all the identified families and the development programmes drawn up for them should be maintained at each village. (6) The credit plan for the District/Block while taking into account ^h_e total credit needs of the area, must also specifically indicate the credit programme for the target groups. It must also be ensured that their needs are met on a priority basis. (7) IRDP will be implemented through a single agency in each district. Such agencies already exist in most districts in the country. In others new agencies will be set up. Adequate autonomy for these agencies to enable them to formulate and implement An unambiguous organisational arrange-the programmes effectively is necessary. ment for making available the needed support from various concerned departments is essential and must be clearly spell out. Each district agency will have a multidisciplinary planning team which may be funded out of the programme provision. the planning teams will take up the preparation of block plans in each district, and will also prepare specific development projects within the framework of such plans with the help, where necessary, of appropriate technical personnel available in the district or higher levels in concerned departments. (8) Effective implementation of the programme is largely dependent on an efficient and well-equipped field level organisation. Block organisation which has necessarily to be the field level agency for implementation has been greatly eroded over the years, and needs to be strengthened adequately in the terms of staff, both specialised and village level. Where the T&V extension scheme has been introduced, clear linkages will need to be established between the personnel working with this scheme, both at the specialist and V.L.W. level and the plan of work to be undertaken under IRDP. (9) IRDP has been conceived essentially as an anti-poverty programme. This objective is proposed to be achieved by enabling the poorest families to acquire productive assets, technology and skills as would make their economic activities viable. These families will also need support from social services like health, education and housing. It will be necessary to link to the extent possible the prospective beneficiaries under the IRDP to these social services, particularly programmes like applied nutrition, compulsory primary education, adult education, family welfare, children's and women's welfare, activities etc. The prospective beneficiaries having been identified, these lists should be made available to the departments concerned for them to follow up these persons in respect of the services handled by them. The house-hold-centered poverty alleviation strategy will thus come to consist of steps not only for the economic emancipation of the family, the but also the education of the children, health and welfare of the vulnerable members, adoption of small family norm etc.

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11.16 Of the approximately 20,000 families in a block, about 10,00012,000 families on an average would be below the poverty line, though undoubtedly in individual blocks this number would vary from area to area. It is proposed to provide specific assistance under this programme to 3,000 families on an average in each block during the Sixth Plan. These families should be from the bottom deciles of the rural population below the poverty line. It is essential that specific income generating projects are developed for each identified beneficiary family. Though the nature and scope of development projects for these families will vary from block to block depending upon opportunities, it is assumed that of the 3,000 families approximately 2,000 could on an average be covered by schemes broadly falling in the area of agriculture and allied activities, 500 in villages and cottage inlus-tries and another 500 in the services sector. It is important that the identification of an economic acivity(s) for a household is done in full consultation with the beneficiary household concerned so that the project is appropriate to its inclination and management capability. The project must also be able to give enough net income to take it across the poverty une. ^ 11.17 The scale of funding under the Programme will be Rs. 5 lakhs per block in the first year of the plan, Rs. 6 lakhs in the second year and Rs. 8 lakhs each' in the last three years, this gradual stepping up will take care of the time that will initially be taken in developing the district/block plans, identifying all the eligible beneficiaries, building up the organisation and putting the programmes on a firm fooling. In consonance with the funding pattern the target of beneficiary coverage could be lower in the first two years and higher in the last three years, with about 3,000 families covered on an average in each block over a full five year period. Credit for Weaker Sections 11.18 Small and marginal farmers who constitute over 70 per cent of the farming population have little input mobilising power and risk taking capacity. Hence credit is a key input in achieving a rapid diffusion of benefits from new technology. It is also essential for promoting self-employment and in the creation of productive assets. The success of Integrated Rural Development Programme will mainly hinge on the preparation of viable schemes for these identified for assistance and the provision of investment credit therefore on and assured basis. While over the years there has undoubtedly been an impressive step-up in credit availability to the weaker sections, its dispersal among various strata of the rural poor has been extremely disparate. Among them the main beneficiaries have been Ihe small and marginal farmers, the former distinctly more than the latter. The least to benefit have been the landless and the rural artisans, who as a category account for as much as one-fourth of the rural work force. The policy of stipulating a minimum percentage for the entire target group of weaker sections has done little to prevent glaring intragroup distortions. Experience shows that bracketing those who have some resource (land) with those who have none generally tends to operate to the disadvantage of the latter. It, therefore, appears necessary that the strategy of credit deployment should be so oriented as to equitably serve the needs of each category. This will call for more effective credit planning and prescription of separate targets of credit for the sub-group of the landless and the artisans, alongwith arrangements for the formulation of economically viable projects for them. 11.19 While attempting to do this, it needs to be stressed that the credit delivery systems, of both cooperative and commercial banks, will require considerable toning up. Simplification of procedures, systematic identification of the most needy among the target group and preparation of appropriate investment projects for them and re-orientation from security-based lending to project-based lending are some of the important aspects of an improved delivery system. Crcdit-cum-input supply melas Or other effective credit and input delivery systems will have to be adopted on a large scale before the onset of kharif and rabi sowings. Full support will need to be given by the extension agency in building up the awareness and motivation of the rural poor in respect of their production and investment needs. It is also proposed to devise suitable credit insurance schemes for insulating weaker sections from total loss due to factors beyond their control. Alongside, fullest emphasis will be given to recovery disciplines, pressures which have lately developed in some parts of the country for general writing off of overdues can only be viewed with extreme concern, for the consequences of this will be disastrous for the credit system as a whole. The aim of the Sixth Plan is to secure a high rate of rural credit expansion to serve the productive

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needs of all with priority being given to the credit needs of the various economic groups among the poor. Recycling of credit is an imperative of the process of expansion. Drought Prone Area Programme 11.20 The DPAP which covers 557 blocks spread over 74 districts in the country is an integrated area development programme in agricultural sector and aims at optimum utilisation of land, water and livestock resources, restoration of ecological balance and stabilising the income of the people particularly the weaker section of the society. Some of the important elements of the programme are:

i. ii. iii. iv. v. vi.

Development and management of water resources. Soil and Moisture conservation measures. Afforestation with special emphasis on social and farm forestry. Development of pasture lands and range management in conjunction with development of sheep husbandry. (v) Live-stock development and dairy development. Restructuring of cropping pattern and changes in agronomic practices, and Development of subsidiary occupations.

11.21 The programme will be continued during the Sixth Plan period with the strategy for development of these areas being re-oriented to insulating the economy of these areas from the effects of recurring droughty through diversification of agriculture and promoting afforestation, pasture development and soil and water conservation. Of late, operational plans for these areas are being prepared from year to year.This is inconsistent with the long-term perspective which is essential for these areas. What is needed is to evolve a medium-term strategy for development of these areas from which should flow the annual action programmes. Mere spending of money even on ac-cepied priority programmes would not meet the objective unless this Is done as a part of clearly conceived perspective of development. Economic development of tnese areas would be achieved through activities which in the long run contribute actively in creating conditions which mitigate the effects of drought in these areas. Watershed management will receive the highest priority and steps will be taken to promote the cooperative management of the watershed by the people in the area. Medium term project profiles which aim at achieving the objectives of the programme would be prepared for each drought prone district as also five year and one year project profiles which will be scrutinised and approved by the competent authority. An inter-disciplinary Task Force has been set up to review the scope and coverage of this programme. Individual beneficiary content of these programmes will be supported thiough the IRDP. The DPAP has a large potential for generating avenues of employment. This will be optimally utilised in conjunction with the National Rural Employment Programme. Overlap of areas under this programme with those under the Desert Development Programme will be eliminated. Desert Development Programme 11.22 The Desert Development Programme aims at checking further desertification of the desert areas and raising productivity of the local resources to raise the income and employment levels of the local inhabitants. The programme will continue to be implemented both in the hot and cold arid zones of the country during the Sixth Plan. The emphasis will be on arresting desertification through activities which restore ecological balance, stabilise sand dunes, and facilitate soil and water conservation. Plantation of shelter belts, adoption of water harvesting techniques and development of pastures to sustain the livestock economy will be vigorously pursued. Exploitation of the natural resources of these areas will be closely linked to replenishment of these resources, It is proposed to encourage innovative use of land for fodder crops, pastures and fuel and fodder plantations. This diversification can substantially improve the economy of the desert areas in keeping with the ecological requirements of the area. In the cold arid

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zones of Ladakh and Spiti, irrigated agriculture and improved animal husbandry practices would be among the activities to be encouraged. Outlays for IRDP and related Programmes 11.23 The outlay on the IRDP programme during the Plan period 1980-85 will be Rs. 750 crores in the central sector. It is a Centrally Sponsored Scheme and the outlay will be matched on an equal basis by the States. The IRDP which will be operative in all the blocks in the country will replace the on-going SFDA/IRD/SLPP programmes. No separate prevision also would need to be made for minor irrigation subsidy. The scheme of Training of Youth for Self-Employment (TRYSEM) will be operated as a part of IRDP for the benefit of the identified households. A small provision, however of Rs. 5 crores is being made separately for TRYSEM to meet some exceptional needs in suitable cases to strengthen the institutional infrastructure. The Drought Prone Areas Programme will continue to be financed at the rate of Rs. 15 lakhs per block per year with a total plan outlay of Rs. 175 crores in the central sector which will be matched on an equal basis by the States. The outlay for the Desert Development Programme will be Rs. 50 crores in the central sector with a similar provision in the State Plans. There is a provision of Rs. 17.55 crores in the central sector for other programmes of rural development including the scheme for Rural Godowns. The provisions in the State Plans for Rural Development amount to Rs. 1509.22 crores (Details in Annexure 11.2). This includes the matching contribution of States for IRDP, DPAP, DDP along with the provision for the National Rural Employment Programme. NATIONAL RURAL EMPLOYMENT PROGRAMME (NREP) 11.24 The problem of employment in rural areas is mainly of seasonal unemployment and underemployment. Fuller employment opportunities for the rural work force will in the main have to be found within the agricultural and allied sectors themselves, through intensification and diversification of agriculture based on expansion of irrigation and improved technology. However, the very dimensions of the problem call for a multi-pronged strategy which aims on the one hand at resource development of vulnerable sections of the population, and' on the other, provides supplementary employment opportunities to the rural poor, particularly during lean periods, in a manner which will at the same time contribute directly to the creation of durable assets for the community. Programmes in the nature of Small Farmers' Development Agencies. Integrated Rural Development, Drought Prone Areas Programme, Desert Development Programme, Command Area Development Programme, TRYSEM and the like, aim at resource development on individual or area basis. As for the object of providing supplementary employment opportunities, a beginning was made in this direction through the Food for Work Programme. Based on the experience of this programme, it is possible to build it into a well directed and sustained national programme for providing supplementary employment opportunities to those seeking work, during lean employment periods of the year. In the past, however, special programmes for solving the problem of unemployment and under-employment have often tended to be formulated and implemented in isolation of the on-going developmental projects. It is necessary to view employment as an indivisible component of development and ensure that both in concept and implementation, employment and development become catalysts of each other, and the benefits to the community from the limited resources available maximised. 11.25 During the Plan period, additional opportunities for employment will become available through the large number of developmental projects to be undertaken in the public and private sectors Such opportunities will, however, not be sufficient to absorb the growing numbers of the rural work force. Rural

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development programmes in the form of individual beneliciary and area development schemes and other sectoral programmes in the Plan will also provide opportunities to many of the rural poor for gainful employment through production enhancing activities. Beneficiaries of these activities will in the main be those with an asset base. A large number of people in the rural areas are without assets or with grossly inadequate assets and need to be provided wage employment. This segment of the rural poor which largely depends on wage employment virtually has no source of income during the lean agricultural period. The National Rural Employment Programme is conceived, in the main to take care of this segment of the rural poor. Under this programme, development projects and target group oriented employment generation projects will be closely intertwined. 11.26 NREP will be implemented as a Centrally sponsored scheme on 50:50 sharing basis between ttie Centre and the States. The Centre will provide its 'share in the form of foodgrains to the extent surplus foodgrains are available, and the rest in cash. Inter-State allocation of foodgrains will be made on a rational criteria related to the population size of the target group i.e. a States' population of marginal farmers and agricultural labourers and its rural population below the poverty line. The States will be encouraged to procure sorghum, millets and other locally grown foodgrains and utilise them under the scheme. Suable financial and operational arrangement will be worked out in each State in this behalf. This would besides, making additional foodgrains available for NREP, help in insulating the producers from uneconomical sale of their produce and also save substantially on cost of movement of foodgrains from distant godowns to the work sites. For the storage of foodgrains so procured, rural godowns programme and other programmes for building up storage capacity in rural areas e.g., cooperative societies godowns, can be suitably used. 11.27 The wage paid under the programme should be on par with the minimum agricultural wage prescribed for the area. The quantum of foodgrains as part of i he wage should 'be such as to be adequate for the family's need. It should be adequate if the two components of the wage (foodgrains and cash) are in equal proportion. In any case the foodgrains component should not exceed 2 Kgs. per head per day. 11.28 Efforts will also be made to organise mobile fair price shops at the centres where rural works are in progress so that cloJi, vegetable oil, salt and other essential items of consumption could also be made available. 11.29 Contractors are to be totally excluded from the execution of the rural works on which employment is offered through NREP. Neither will the distribution of foodgrains be entrusted to middlemen or contractors. 11.30 Only about half the States had involved Pancha'yati Raj institutions in the Food for Work Programme. Given proper technical and administrative supervision, these institutions have the capability of planning and executing works answering to local needs, at comparatively low costs. The P-EO Evaluation Study of the Food for Work Programme has also highlighted this fact. It is, therefore, desirable that these institutions are involved in planning and execution works under NREP in all States to the extent possible, considering local conditions and nature of the work. The educational research and technical institutions in the block would be associated with the Panchayati Raj institutions in preparing a shelf of projects which will help to ensure that the assets created are at least equal in value to the wages paid. 11.31 It is contemplated that a district level employment plan disaggregated blockwise, will be formulated. This plan will estimate the numbers likely to be seeking work, separately for skilled and unskilled workers, and the work opportunities likely to be available under various plan and non-plan works in the district. The work opportunities and shortfalls will be identified, preferably in terms of blocks and the programme of works under NREP formulated accordingly. The aim of the NREP should be to provide employment opportunities during the lean agricultural period.

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11.32 It i's necessary that the State Governments have a shelf of projects on a sufficiently dispersed scale prepared for each block so that the programme may be implemented on a planned and systematic basis and technical soundness of the works ensured. Preparation of projects will be a continuous process. For this purpose the State Governments will have to strengthen/build up adequate technical personnel at the block and higher supervisory levels. Some of the States have a rural engineering organisation or seme technical personnel at the block level, but considering the size and spread of the programme, it is quite inadequate. Some States have none at all. It is necessary that each Block should have a reasonable complement of technical staff (overseers). To ensure effective monitoring of the programme, suitable strengthening of staff will be necessary at all levels. The locally available expertise of technical institutions like IITs, Agricultural Universities, Engineering Colleges etc. as well as of voluntary organisation should be fully utilised. Block level project preparation and monitoring group's could be set up wherever the size of the programme warrants it. 11.33 The implementation agencies would be required to give priority to works relating to social forestry and pasture development, soil and water conservation, irrigation, flood protection and drainage, field channels in irrigation command area's, construction and improvement of village tanks and ponds, school and dispensary buildings and works to improve village environments, hygiene and sanitation. Only those roads may come in the priority category which can be made at least scmi-pucca with culverts or have a reasonable prospect of being brought within the regular road programmes of the State or Panchayati Raj Institutions, as the case may be. While only such works as create community assets should be taken up, an exception may be made in tlie case of works benefiting individuals belonging to Scheduled Castes and Scheduled Tribes in respect of group housing and land development projects. Special attention will be paid to programmes where women can be gainfully employed. 11.34 In order {o ensure that benefits of this programme reach the weaker sections of the society, at least 10 per cent of the allocation under the programme would be earmarked for utilisation exclusively on programmes of direct benefit to Sche-d iled Castes, viz. drinking water wells in Harijan Bastis, community irrigation schemes in which majority of the beneficiaries are Harijans, environmental improvement works in Harijan localities and horsesites/group housing for the Harijans. Another at least 10 per cent of the allocation under the Programme would be specifically earmarked for utilisation on programmes of social forestry and fuel plantations. The utilisation of provisions by the States on these two activities will be specially monitored. 11.35 It will be desirable to regulate employment on the rural works taken u'p' under the NREP and other Plan works so as to take particular care of the needs of the families in the target group. Specific attention will also be paid to promoting women's participation in this programme. Outlays for NREP and Specie Employment Programmes 11.36 An outlay of Rs. 980 crores has been provided for the programme for the Sixth Plan period in the Central Sector. There will be a provision in the State Plans for this programme from 1981-82 onwards as it is being operated on 50:50 sharing basis. This is included in the provision of Rs. i 509.22 crores for rural development programmes in State plans. (Statewise details in Annexure 11.2). This wil! be supplemented from the provisions made for special employment programmes in some states. The outlay for NREP includes both the wage as well as the 'materials' component of works. For no individual work should 'material' component exceed 40 per cent though for the programme as a whole 33 per cent should normally be the proportion. The outlays provided in the central and state plans are expected to generate 300-400 million mandayS of employment on an average per year during the plan p'eriod. The Planning Commission will review tha performance of the programme and depending on the actual experience, consideration will be given to expanding its scope and size. There is also a provision in some State plans for sp'ecial employment schemes as under:

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(Rs. crores) Karnataka MaharaShtra Uttar Pradesh West Bengal 55.90 450.00 100.00 4.75 610.65

11.37 NREP will confer concurrent benefits on those seeking daily wage employment and on the local village community only if the portfolio of projects indicating the precise man-days of labour 1 needed for completing each specific task is prepared carefully. The project preparation and task implementing agencies should ensure that the economic output of the project is at least equal to the wages paid and total amount spent. 11.38 A high-level NREP Committee will be set up to provide overall guidance and organise continuous monitoring of the programme so that timely corrective measures can be initiated, wherever structural weaknesses become apparent. All State programmes will be submitted to this Committee for the entire PSan period. PANCHAYATI RAJ AND COMMUNITY DEVELOPMENT Review 11.39 Democratic decentralisation, symbolised by the establishment of Panchayati Raj institutions at the village, block and district levels in the wake of the Balwant Rai Mehta Committee Report (1958) is a natural extension of democracy at tlie national and state levels. Transfer of authority to and sharing of the state functions and responsibilities v/ith the local communities and geographical units was considered crucial to the whole process and meaning of development. Besides having a better appreciation of local needs and capability of eliciting local participation in the formulation and imple mentatiori oT their plans of development, these institutions were expected to act as nurseries and training ground for leadership. This called for a new administrative culture and a faith in the capacity of our people to take decisions and execute them and to consider decentralisation of State's power and functions to these institutions not only as a means of development but an end in itself. 11.40 In the above backdrop, most of the States enacted laws establishing Panchayati Raj institutions at various levels, vested with financial developmental, and in some cases judicial powers and responsibilities for their areas. In some States, e.g. Maha-rashtra, Gujarat, Andhra Pradesh and Rajasthan, fthese bodies were made quite strong and the devolution of functions were significant. In some other States like J&K, Manipur, Sikkim and Tripura, only Gram Panchayats are functioning in the North Eastern region where tribal population predominates, historically and culturally, the traditional panchayats still command a decisive voice on a number of issues and disputes. In other States also a three tier Panchayati Raj structure with varying degrees of powers and functions has been established. In Kerala, which earlier had only Gram Panchayats, a strong District level Panchayati Raj body is proposed to be established through a recent enactment. At present there are 228593 Gram Panchayats, 4478 Block Panchayat Samitis and 252 Zila Pan-shads in the country. A potentially viable and useful structure of Panchayati Raj thus exists in form, but its effectiveness has been limited in practice. There has been considerable erosion in the powers and functions of these institutions in many States. Adequate financial support has generally been denied to these institutions in most States, often even in respect of the "transferred" schemes, and programmes. These institutions themselves have shown little inclination to raise their own resources locally. Besides, there has been a general apathy at the administrative and political levels towards strengthening these bodies.

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11.41 All theses factorsexogenous as well as endogenous have left these potentially dynamic peoples' institutions, in a virtually moribund State in most parts of the country. A Committee was consequently set up in 1977 under the Chairmanship of Shri Asoka Mehta to review the present status and to consider the restructuring necessary to secure their close involvement in the planning and implementation of programmes of rural development. The Committee submitted its report in 1978, which was considered by a conference of Chief Ministers in May, 1979. Besides suggesting larger devolution of funds and functions to these bodies, the Committee had recommended in favour oT making Zila Parishad as the principal executive organ of Panchayati Raj with the Block Panchayat Samiti being converted in effect to a block level committee of the Zila Parishad. In regard to the lowest level unit, i.e., the Panchayat, the Committee recommended the concept of Mandal Panchayats comprising of 15,000 to 20,000 population and 10 to 15 villages, with a somewhat smaller size in tribal and other sparsely populated areas. There was general agreement in the Chief Ministers' Conference to the need for increased devolution and clear definition of functions and funds to be transferred to these institutions. There was, however, considerable opposition to the idea of Mandal Panchayats. As regards Zila Parishad vis-a-vis Block Panchayat Samiti also the general opinion was that one structural pattern cannot be universalised for the whole country and that it was neither easy nor necessary to upset the existing structural patterns in different States. The Conference recommended that a Model Bill may be prepared which could then be considered by each State in the light of its own context and adapted with such modifications as it considered necessary. Strategy for Sixth Plan 11.42 During the Sixth Plan it is proposed to strengthen the process of democratic decentralisation. Irrespective of whatever structural pattern that is existent or that may be devised, effort will be to devolve on these instiiutions all such functions, appropriate to each level, which are capable of being planned and implemented at that level. These institutions v/ill be particularly involved in the planning and execution of Integrated Rural Development Programme and the National Rural Employment Programme. They will also have prominent role in District and Block level planning and in 'the planning of Minimum Needs Programme for their area of operation. 11.43 Any set of programmes aimed at the transformation of rural societies, with their complex sets of social values and goals, would be meaningless and in fact self-defeating, if they do not involve effeclivelv the rural women. This subject has been dealt with in a separate chapter. Suffice here to say that the women in the villages suffer from a number of social, economic and educational handicaps and inequalities, perhaps even more than their urban counterparts. They share almost the whole burden of household chores, besides significantly helping their menfolk in farming operations. The need for organising and informing the women as will enable them to effect better home management and thereby reduce their own drudgery as well as promote family welfare is imperative. Indeed, with the increased diversification of agriculture to animal husbandry etc. envisaged in the Plan the role and participation of women in the economic activities of the family gets even more accentuated. A useful institutional means for mobilising women in rural areas is through their organisations like Mahila Mandals centred around both social and economic activities. A large number of such Mahila Mandals had been formed under the Community Development Programme, estimated at around 66,000. Most of them, however, have languished for lack of proper guidance and follow-up. Even the small complement of tv/o gram scvikas and one mukhya sevika, which was part of the original Block staffing pattern, has ceased to exist \n most blocks. It is proposed during this Plan to take up a programme of strengthening activities oT interest to women, both social and economic through revitalised Mahila Mandals in a phased manner in a substantial number of blocks, as an integral part of the Integrated Rural Development Programme. 11.44 The Block agency is, and will continue to be, the main agency for implementing or assisting in implementation of various programmes of rural development. The effectiveness of this agency as an instrument for coordination of all development activities has been eroded over time. Now that the Integrated Rural Development Programme is proposed to be extended to the whole country, along with the National Rural Employment Programme and the increased demands of the Panchayati Raj system, this agency in it's present weak state will not be able to cope with the magnitude and the diversity of the task it will be called upon to handle. The need for strengthening it is, therefore, imperative. The situation,

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however, varies from state to state. The present status and strength of the block agency will, therefore, be examined State-wise and the State Governments assisted in suitably strengthening it on a mutually agreed basis within the provisions of the Integrated Rural Development Programme. The aim is to devise a compact multidisciplinary apparatus at the block level which will be able to effectively service the needs of diverse rural development activities. Suitable linkages will also be established with the village and higher level functionaries of the T&V extension scheme. To cater to the training needs of the developmental functionaries particularly at the district and the State levels, the National Institute of Rural Development would be further strengthened in its research and training services. Outlays 11.45 The outlay for various schemes of Panchayati Raj and Community Development would be Rs. 7.17 crores in the Central Sector and Rs. 344.90 crores in the States and UTs sector, aggregating thus to Rs. 352.07 crores. (Statewise details in Annexure 11.2) COOPERATION 11.46 Cooperation as an instrument of economic development of the disadvantaged, particularly in the rural areas has received considerable emphasis during the successive Plans. The founders of planning in the country saw a village Panchayat, a village cooperative and a village school, as the trinity of institutions on which a self-reliant and just economic and social order was to be built. The non-exploitative character of cooperatives, voluntary nature of their membership, the principle of one man one vote, decentralised decision making and self-imposed curbs on profits eminently qualified'ihem as an instrument of development combining the advantages of private ownership with public good. Review 11.47 Having begun ^primarily in the field of credit as a defensive mechanism against the usurious money lenders, cooperatives have througli the last three decades of planning come to embrace a large gamut of activities to serve the interests of the producers and consumers. Credit, however, still continues to be the predominant [activity. Taking the latest published figures, there were 1.16 lakh Primary Agricultural Credit Societies including LAMPS, FSSS etc. In 1978-79, with a membership of 5.18 crores. The number of borrowing members was around 37 per cent of the total membership. The cooperatives today cover almost all the villages in the country and their working capital stood at Rs. 2950 crores on 30th June, 1979. In 1979-80, the figure of short term credit advanced is provisionally estimated at around Rs. 1300 crores and medium and long term investment credit at Rs. 400 crores. While all round progress has been made in the field of credit by cooperatives, a few disconcerting features deserve special notice. Firstly, the rate of growth of agricultural credit advanced by the cooperatives has lately slowed down. Notwithstanding the needs of a rapidly developing agriculture, the short term credit advanced by the cooperatives has stayed around Rs. 1200 to Rs. 1300 crores during the last 3 years. The position of medium and long term credit representing investment loans is distinctly worse, with a loaning of about Rs. 339 crores an 1977-78, Rs. 448 crores in 1978-79 and only Rs. 400 crores i.n 1979-80. The most important reason for this stagnation in credit flow is the mounting overdues which are clogging the process of credit recycling. While the sheer volume of overdues in some states make it impractical to recover these in one instalment and demand's some practical solutions for recovery over a phased period, the tendency which has developed in some States to write off the debts can only 'be viewed with extreme concern. It sets in undesirable precedent and will hamper recovery efforts in future. Secondly, while it is satisfying to note that the share of the weaker sections of the rural community has been steadily increasing over the years and is at present placed at over 40 per cent of the total, this share falls short of their essential oroduction needs. Though the small and marginal farmers are apparently getting credit in larger proportion (35 per cant) than the land area held by them (21 per cent), considering that these farmers have to depend m-'unly on credit for the purchase of their inputs, unlike the larger fanners who can use their own surpluses, the flow of cooperative credit to the small and marginal farmers is still inadequate. However, in case of tenants, share croppers, landless agricultural labourers and rural

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artisans, who are the poorest ,and therefore the most needy, the flow of cooperative credit in terms of percentage share has continued to range only around 3 to 5 'percent over the years. There have also been considerable ''"gional disparities in credit availability. Partly dna to the poor absorptive capacity and partly due to lack of coordination among concerned developmental agencies, the cooperatives have not been able _to ensure an increasing flow of production loans and investment credit in most of the tribal and hill areas. Thirdly, though the cooperative's have now come to cover almost the entire country-side, the membership is only around 45 per cent of the total rural families. The weakest sections of the rural community are still not adequately represented in the membership roll. 11.48 Cooperatives are playing an important role in the supply of fertilisers on credit or cash to farmers and carrying it to the remotest parts of the country. In quantitative terms, it is estimated that 23.5 lakh tonnes of NPK (Rs. 900 crores worth) of chemical fertilisers would have been distributed by the net work of 47000 cooperative outlets in 1978-79. However, private retailers have been progressively eating into their share of the total sales. Stagnation in credit flow has also affected their sales which are to a large extent on credit. Consequently their share in total sales has come down to about 43 per cent in 197980 ;as against 5560 per cent a few jyears ago. 11.49. Linking of production credit with input supply on the one hand and marketing and processing of agricultural produce on the other has 'been considered critical to the success of the production programme. Cooperative marketing infrastructure has now come to cover almost 'all the important secondary and terminal markets in the country, comprising 3370 primary marketing societies at the mand'-level (including 550 Special Commodity Agricultural Marketing societies), 173 Central/District Cooperative Marketing Societies, 27 State/A pcx co-operative marketing federations and the National Agricultural Cooperative Marketing Federation (NAFED) and its 25 main branches. During the last two decades, the marketing cooperatives have attained significant growth in business operations and have also diversified their activities manifold; yet their total share in the market still continues to be small, pxcept in procurement operations (for the buffer stock) in some States, nor has their share kept pace with the rapidly "rowing output and volume of agricultural produce. Tn nominal value terms, agricultural produce marketed by the cooperatives hay risen from Rs. 1100 crores in the terminal year of the Fourth Plan to Rs. 1750 crores at the end of 1979-80. During 1978-79. sugarcane followed by foodgrains and cotton constituted the bulk of the value of agricultural produce marketed by the cooperative system. Bulk of the;turnover is accounted for by only the five States of ^un^ab, Hpryana, Kerala. Madhya Pradesh and Uttar Pradesh. Tn the marketing of horticultural and other products, the role of cooperatives is only marginal compared to the potential. One of the constraints in the development of agricultural marketing Ins ben the \vv'k financial base at the primary level. They also suffer from lack of suitable personnel for such conTnercial operation^ and there iv not "nough linkage and business relationship among the different cooperative sectors c.f.. between producers rooperativf": a"r) consumers cooperatives. Some of these problems have wakened the ability of the cooperatives to undertake larger marketing operations on behalf of their members. Tn the field of agricultural processing, the most conspicuous success has been the one achieved bv sugar cooperatives and cooperative milk up''ons in some parts of the country. Rice mills, dal rm'lls, cotton Tinning and processing units, spinning mills, oil crushing and processing, fruits and vegetable processin" units, poultry food, jute baling etc.. are some of the other processing activiies in the cooperative sector which are steadily expanding. Tn terms of im'pact. however, except for sugar and milk, cooperatives account for rather a small share. 11.50 Adequate and Scientific storage facilities with cooperatives are essential to their operational efficiency in the marketing of iagricultural produce, agricultural inputs and consumer goods. The programme now is to ensure that all re-organised primary agricultural credit societies and marketing societes are assisted to build up owned storage of appropriate capacity within a phased period. The total sanctioned storage capacity at the end of 1979-80 in the cooperative sector comprised 67.8 lakh tonnes of which 47 lakh tonnes has been established. The completed capacity comprises 22000 godowns at the primary societies' level with a capacity of 22 lakh tonnes and 5040 godowns of 25 lakh tonnes capacity at the marketing societies' level. Within a period of 10 years, 1969-79, the completed storage capacity in the cooperative sector has gone up from 26 lakh tonnes to 47 lakh tonnes, though, undoubtedly the intensity ot coverage has been uneven among States. Occasional scarcity of building materials, delays in

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acquisition of land. lack of centralised arrangement for technical supervision, cost escalation and in some cases the indifferent attitude of managements have been responsible for slow progress in construction. With a view to meeting the growing needs of producers especially of potato, fruits, onion, etc., a systematic programme iq establish cold storage facilities at. strategic pincrs has been taken in hand. At the end of March 1980, the number of cold stores organised in the cooperative sector was 204 with licensed capacity of 4.6 lakh tonnes, accounting for approximately 15 per cent of the total cold storage capacity ip the country. Of this, 125 units with a capacity of 2.14 lakh lonnes had already be^n installed and the rest were at various stages of installation. An assessment carried out of th" cold stores indicates that these units were being utilised bv the small and middle farmers also and that there had been propressive increase in the level of capacity utilisation during the last three years. Taking into consideration the need for more cold storage rapacity for a variety of perishables and the trends of potato production in certain areas, an expanded programme of cold storage capacity in the cooperative sector is being contemplated in the Sixth Plan. 11.51 Of all the maior cooperative activities, consumer activity is the most recent. Tt has. however, made headway and come to occupy a'n important role in the distribution of consumer articles in rural as well as urban areas. A tour tier system comprising the National federation. State federations. Central society at the district and the primary societies at the base level, I 1""1 been operating in tip's field. As on 30th Tune 1979, thi" structure consisited of a National federation. 14 State consumer cooperative federations, 8 State cooperative marketing-rMW-consumer federations. 481 Central/Wholesale consumer societies at the district level and 16348 primary consumer cooperatives at the base level. The d ;':'tr''ct level who1^-s'llc societies v'^ro ilso operating 3690 branches including about 700 departmental stores. Over 5W)("! cooperative societies have also been functioning arnong i"dustri;i1 workers, "mriloyees of railways, posts and telegraphs, etc. Tn the rural area's, a^out 1900 primary marketing societies and over 37000 villages/service cooperatives anti other cooperative societies were connected with the distribution of consumer articles. During 1979-80, the total retail trade handled 'by the urban consumer cooperatives was estimated at Rs. 800 crores. In the rural areas, the total value of consumer articles sold by the cooperatives is also estimated at Rs. 800 crores in 1979-80. One of the major problems concerning these cooperative stores both in the rural as well as in the urban areas has, however, been inadequate marketing finance, uncertainties in the procurement of supplies and lack of trained and skilled manpower. 11.52 It would thus be seen that the progress of cooperatives over the years presents a mixed picture. There has been much progress quantitatively and yet there are a number of indicators which point to serious lacunae in their development. The cooperatively weak States, particularly in the eastern region do not seem to have made up any of their lag. In fact, some of the so-called cooperatively advanced States have also slided down particularly in the field of credit due to mounting overdues. Nearly 37 per cent of the total primary marketing cooperatives are not doing any business and are virtually defunct. Only five States account for more than 80 per cent of the total marketing of agricultural produce done by cooperatives. Even in the'se States, the management studies undertaken have pointed to the scope for bringing about considerable managerial improvements. The cooperative share of total fertiliser sales which was at one time around 55 per cent has come down to around 43 per cent. Sluggishness in credit development due to heavy overdues in a large number of States has eroded the overall viability 01 primary cooperatives and has thus affected all other fields of activity like marketing of agricultural produce, farm inputs and consumer goods. In the ultimate analysis, the most outstanding of the deficiencies, which indeed is at the root of many of the palpable shortfalls in cooperative performance, is in the area of management. In spite of considerable discussion over the years in regard to the need for proper manpower development, the cooperatives have by themselves shown a singular lack of appreciation of this problem. Strategy for the Sixth Plan 11.53 In the light of the problems and constraints discussed above, it is proposed to specifically direct attention during the Five Year Plan to the following tasks on a priority basis:

89 i. ii.
A clearly conceived action programme to be drawn up for the strengthening of primary village societies so that they are able to effectively act as multi-purpose units catering to diverse needs of their members. Re-examination of the existing cooperative policies and procedures with a view to ensuring that the efforts of the cooperatives are more systematically directed towards ameliorating the economic conditions of the rural poor. Re-orientation and consolidation of the role of the cooperative federal organisations so that they are able through their constituent organisations to effectively support a rapidly diversifying and expanding agricultural sector, including horticulture, food processing, poultry, dairying, fishery, animal husbandry, sericulture etc., with credit, input supply, marketing and other services. Development of professional manpower and appropriate professional cadres to man managerial positions.

iii.

iv.

Programmes 11.54 The primary village (multi-purpose) society is the base on which the entire cooperative structure rests. A programme of re-organisation of these societies had been undertaken a few years ago based on certain stipulated viability criteria and such a re-organisation has already been carried out in 'form in most States of the country. Nevertheless, even where this programme is said to have been completed, the basic objective of re-organisation has not yet been achieved in substance. A very large number of reorganised societies still continue without even One full time manager. Furthermore, a large number of managers so appointed have either received no training or extremely inadequate training. Stable arrangements still do not exist in many States for regular payment of salaries to managers. Financial constraint is said to be one of the reasons for this state of affairs. Nevertheless, this particular task is of such importance that it must take precedence over 'other schemes and projects of development on which considerable funds are presently being expended. Without a stable and prop'erly staffed, primary society, the base of all cooperative activity will continue to remain weak. The Centrally sponsored scheme for assistance to States to contribute towards the deficit in the salary fund of managers of reorganised societies will be continued during the Sixth Plan. Besides, the share capital of these societies will be strengthened, subject to certain norms of performance, to enable them to take up diversified activities on an expanded scale. 11.55 The cooperatives have for some time been alive to their responsibility towards the rural poor. The percentage of short and medium term credit to weaker sections has moved up from 29 per cent of the total cooperative credit disbursed in 1973-74 to about 40 per cent presently and in long-term credit to about 38 per cent. However, on further examination, it is observed that the bulk of this credit has gone to the small and marginal farmers, namely, those who have a land base. The share of tenants, agricultural labourers and rural artisans has continued to stagnate around 3 to 5 per cent of the total cooperative credit during the last decade. The membership pattern of village cooperatives also reveals a similar trend. While small and marginal farmers constituted about 44 per cent of the total membership in 1977-78, agricultural labourers and rural artisans constituted only around 10 per cent. Without, therefore, minimising in any way the efforts which have already been made by the cooperatives t& direct their benefit to the weaker sections, a much greater thrust in that direction is called for with a view particularly, to giving greater coverage to the poorest among the target group of the weaker sections. It would be necessary lor tne cooperatives to mount a systematic programme for enrolling the landless workers, members of the scheduled castes and scheduled tribes, fishermen, artisans and others among the poorest as members, so that they could get the benent of facilities offered by the cooperatives. Mere enrolment, however, of these persons as members will not be enough. It will be necessary that each primary society systematically identifies the members who are below the poverty line and draws up a specific credit plan for them in the light of individual possibilities of development and carries it out within a reasonable time-frame. This will need to be closely coordinated with the Integrated Rural Development Programme.

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11.56 A tendency has developed among cooperative federal organisations often to promote their own business at the cost of their constituents. The programmes and policies of cooperative federations at the State as well as the national level would be so oriented as to make these institutions more effective as federations of affiliated cooperatives. They would thus be called upon to enlarge not only their own business but at the same time provide leadership to their affiliated organisations and lend full support to them in their business operations. In respect of commodities, which have inter-State marketing possibilities, the State and national federations would be expected to undertake larger inter-State trade. Coordination and linkage between marketing and consumer cooperatives would be strengthened so that the latter may be able to procure farm produce directly from the farmers through the marketing cooperatives instead of resorting to procurement through private wholesalers and intermediaries. Special attention will be given to strengthening the activities of consumer cooperatives in the urban areas and to the development of consumer business of primary village cooperatives and marketing societies in rural area's to serve as a dependable adjunct to the public distribution system. The Central sector scheme for strengthening NAFED; NCCF and other Federations and the Centrally sponsored scheme for the development of cooperative marketing, processing and storage etc. in underdeveloped States would be continued during the Sixth Plan. The capital base of National Cooperative Development Corporation, which is the principal financing and promotional organisation at the national level for the development of cooperative marketing, storage, processing, supply of farm inputs and rural consumer activity, will be further strengthened during the Sixth Plan with a view to enabling it to lend support to these activities on an expanded scale. 11.57 Irrespective of whatever objectives that may be laid down in terms of expected levels of performance and whatever programmes of assistance that may be developed, it is ultimately in the area of management and man-power development that the key to successful implementation lies. In spite of a number of committees and frequent discussions that have been devoted to this subject over the last three decades, the picture does not seem to have altered in any significant way. Neitner the scheme of organisation or "Pools" 01 personnel nor of formation of cadres for different sectors of cooperative activity have made much headway so far. The main resistance has come from cooperative organisations themselves, who have been averse to taking personnel recmned on a centralised basis either by the cooperative departments or by special "cadre" societies or the sectoral federations. As most cooperative institutions by themselves are not big enough to either oiler suitable salary scales or career advancement prospects to be able to attract the right kind of personnel, it appears necessary that a system be devised by which key personnel are recruited for the whole range of small and medium cooperatives in an organised manner, which should make it possible to otter adequate wages to the persons employed, provide them opportunities of career advancement within the sector as a whole and make them feel part of a larger system with potentialities of development to eacn according to his capacity and competence. In other words, a cooperative sector must operate as one inter-linked whole in this manner rather than as a mere collection of small scattered institutions. Special attention will be given during the Sixth Plan to devising a suitable system in this behalf which will make available to the cooperatives, caders of properly qualilied and trained personnel to handle their diverse activities. Care will, however, have to be taken that the system contemplated is such as reconciles to the extent possible, the sensitivity and the autonomy of the individual organisations where the persons recruited will actually be employed. Along side, sectorwise surveys of cooperative activities will be undertaken on a scientific basis to identify their organisational, operational and managerial deficiencies and to work out measures for their sound growth. Another aspect of management is in regard to the commitment and quality of the elected office bearers. The cooperatives are often criticised for being dominated by vested interests. The solutions sought so far have been in the nature of limiting the number of terms of office etc. While these measures are useful as far as they go, thdy still do not impinge on the basic question of commitment of an office bearer to the objectives of the society. An office bearer of a marketing society, who does not market his own produce through his marketing cooperative, is hardly likely to have any stake in the performance of that society, likewise, of a credit cooperative bank, who is himself a defaulter in payment of dues is hardly likely to pursue recovery discipline in his society. It will be necessary to take a close look at the bye-laws of various types of cooperatives and to suitably revise these, wherever necessary to ensure that such commitments are built into the bye-laws as to eliminate mere office seekers from the management of the society. In fact, dairy cooperatives of the "Anand Pattern" have a specific clause built into the bye-laws about the supply of miJk to the cooperative for a certain minimum number of days in a year as an

91
essential qualification for office. A similar provision needs to be built in the bye-laws of other type of cooperatives also. 11.58 ah agriculture which is projected to grow at an annual compound rate of about 4 per cent during the Sixth Plan period would demand substantial credit, farm inputs, and marketing and storage support. Within this overall growth rate, the rate of growth of production in dairying, animal husbandry, poultry, fishery and fruits and vegetables has been projected at a rate higher than for crops. The Integrated Rural Development Programme "which would now cover the entire country would demand much larger multisided support from the cooperatives. Particular attention will be given to the development and strengthening of dairy cooperatives in the context of Operation Flood II, in which cooperatives constitute the organisational frame-work of the project almost wholly. The role of the fishery cooperatives has only been somewhat marginal so far, both qualitatively and quantitatively. Fishermen have been one of the poorest and the most exploited sections of the rural community. A specific programme of strengthening the cooperative structure in this field will therefore be drawn up. Minor Irrigation Development and water management is another important area of activity in which corporations will have to be particularly encouraged. Cooperatives are also expected to play an expanded role in the public distribution system and in the supply of essential consumer articles in rural and urban areas. Considerable expansion in the storage capacity of cooperatives is envisaged during the Sixth Plan with a view to strengthening and enlarging their role in the marketing of agricultural produce, supply of farm inputs and retailing of consumer articles. Substantial increase is proposed during the Plan in the oil-seeds processing capacity, particularly for soyabean to encourage increased production and in cold storage capacity to support expanded programmes of potato, fruits and vegetables production. Programmes for setting up cooperative sugar factories and spinning mills would be suitably accelerated. The cooperative training and education programmes would also be intensified and increasingly linked to the growing and diversified needs of the various sectors of cooperative movement. Taking into consideration. the demand for cooperative services and the reasonable capabilities of the cooperative system, the following targets of physical performance in important cooperative activities have been projected for the period 1980-85. Table No. 11.1 Targets for Cooperative Operations Sl. N. Physical Programmes Unit Base level anticipated achievement 1979-80 (3) 1300 125 275 1750 Level for the terminal year 1984-85 (4) 2500 240* 555* 2500

(0) 1 2 3 4

W Short term loans Medium term loans Long term loans Value of agricultural produce to be marketed through Coops. Fertiliser to be distributed through Coops. (a) Quantity

(2) Rs. crores Do. Do. Do.

(b) Value Value of consumer goods to be distributed through Coops, in rural areas Value of Consumer goods to Do. be distributed in urban areas through Coops. Construction of additional

Lakh tonnes (NPK) Rs. crores Do.

23.50 900 800

45.00 1600 2000

800

1600

92
godowns '. (a) Rural godowns (i) No. (ii) Capacity Lakh tonnes (b) Marketing godowns (i) No. (ii) Capacity Lakh tonnes (c) Total storage capacity to Do. be completed Construction of Cold Storage (i) No. Lakh tonnes Processing Units installed (i) Sugar factories (ii) Spinning Mil's (iii) Oil Units (including Copra Units) (iv) Others Total

22000 22 5040 25 47

52000 44 7500 38 82

125 2.14 142 62 304 1529 2037

276 7.48 185 90 390 1694 2359

10

* Total cumulative target of medium and long term loans during the period 1980/85 is Rs. 3100 crores. Outlays 11.59 The total Central Plan outlay for various schemes of cooperation for the Sixth Plan period 1980-85, is Rs. 330.15 crores. The outlay in the State and Union Territories Sector is Rs. 584.08 crores. Thus, total public sector outlay on various schemes of cooperation is Rs. 914.23 crores. This outlay is mainly for strengthening the capital base of the cooperatives and to assist them in building the necessary infrastructure and capacities to enable them to undertake higher level of business and improve their services. The level of their development and operational efficiency will' however, depend very largely on the quality of management and leadership that they can bring to bear on their operations. (Details are given in Annexure 11.1 and 11.2). SPECIAL AREA PROGRAMMES 11.60 The Plan provides for special Central assistance totalling Rs. 1370 crores for certain area programmes. These are described in Chapter 25 (Hill Areas and North Eastern Council) and Chapter 26 (Tribal Areas). Some State Governments have also made allocations in the Sixth Plan for accelerated development of certain identified special areas. The Statewise Sixth Plan outlay is as follows: Outlay for the Development of Special/Backward Areas:States (Rs. crores) 2.50 45.00 2.50 10.00 5.00

l 2 3 4 5

Gujarat Jammu & Kashmir Kerala Meghalaya Nagaland

93
6 West Bengal Total 45 00 110.00

The areas for which this provision has been made are indicated below:

1. Gujarat: 25 backward talukas have been identified by the State Government and a special
provision of Rs. 2 lakhs annually is envisaged for each taluka i.e. Rs. 50 lakhs annually for 25 tnlukas. 2. Jammu & Kashmir: The provision has been made for Leh and Kargil areas in Ladakh. Outlay also includes provision for beneficiary-oriented programmes for nomadic tribes in the StateGujjars and Bakarwals.

3. Kerala: There area number of regions in the State which have been considered as backward
economically and socially. They include areas like Kasargode and Cannanore districts, Wynad in Kozhi-kode District and areas in Malappuram and Idukki districts.

4. Meghalaya: The outlay is for border areas regarded as special areas for purposes of accelerated
development.

5. Nagaland: The following areas have been identified as backward by the State Government: 1. Tuensang District a. Tuensang Sadar Sub-Division b. Kiphere Sub-Division 2. Mon District 3. Meluri Area in Phek District 4. Aghunato area in Zunheboto District 5. Peren in Kohima District 6. West Bengal: The outlay is meant for the following backward regions in the State: 1. Hill Areas 2. North Bengal 3. Jhargram 4. Sundarbans
PEOPLES PARTICIPATION 11.61 The Planning process in a democratic country can acquire fuller meaning and depth if the people not only associate themselves in planning lor their development but also participate consciously in plan implementation. The successive five year Plans have emphasised the need for promoting peoples' organisations to secure this end. Tile very raison d'etre of Panchayati Raj was to ensure peoples' participation in local planning and implementation. Likewise the emphasis through the Plans on building np cooperatives was to strengthen peoples' involvemeflt in the management of their economic

94
development. Panchayati Raj and cooperative institutions though peoples' organisations are, however, creatures of the Government through various statutes. These have been dealt with in earlier sections of the Chapter. What is of equal importance is the promotion of purely non-governmental organisations, formal or informal in nature, which could motivate and mobilise people in specific or general developmental tasks. Experience suggests that the task of educating and mobilising the people in this direction is more effectively accomplished when it is institutionalised. Individual action though important can only be sporadic in nature, whereas institutionalised action can be distinctly more effective in mobilising local resources, articulating needs and coordinating the developmental tasks which are undertaken by the people. The following are some of the forms of institutionalised action.

a. Youth and Women's organisations operating at different spatial levels, particularly for promoting b. Voluntary organisations engaged in general developmental work in an area or on a specific
activity like education or health or a combination of a few such activities. eco-development and environmental sanitation.

c. Organisations of specific beneficiary or interest groups like self-employed women, or farmers or

of people who have common economic interest such as marketing.

d. Organisation of the farmers living in command area of irrigation projects catchment areas in the
hills and watershed areas in unirrigated regions into cooperatives for improving land and water management without affecting the individuality of holdings.

e. Religious, social or cultural organisations or clubs (Rotary. Jaycees. Lions etc.) which often
undertake developmental activities in selected areas.

f. Professional organisations or educational institutions which take up study, research and social
action programmes as part of their professional or social Commitments. 11.62 Success stories in the field of voluntary action are many. To recount only i few of the ones which have attracted country-wide notice are the Jamkhed Project in child and health care in Maharashtra. Bharat Agro Industries Foundation Programe in animal husbandry and social forestry. I Wat Paoads ip the fields of cottage ir>dn!trv and Self-employed Women's Association (SIEWA.) of Ahmedabad. The country is indeed dotted with numerous examples of highly successful voluntary action of this nature. However, considering the vast nool of motivated Individuals avEnlabI 0 in the country, pver in the smallest hamlet, whit has fructified so far bv wav of organisational effort m this behalf is not even a fraction nf the -potential. An t'rnriortant objective of the Sixth Plan is to meaningfully tap this potential. 11.63 Peonies' participation is to be sought in fields of activity. The following, however, is an illustrative list of some of the actwities in which awareness and conscious participation of the people rs nti("'l for success and would, therefore, be pursued with earnestness:

a. Optimal utilisation and development of renewable sources of energy, including forestry through
the formation of renewable energy associations at the block level. b. Family welfare, health and nutrition education and relevant community programmes in this field.

c. "Health for all" programmes. d. Water Management and Soil Conservation (warabandi, watershed development etc.) e. Social Welfare programmes for weaker sections. f. Implementation of minimum needs programme. g. Disaster preparedness and management (floods, cyclones etc.).

95
In all Government programmes touching upon the above areas of development, care will be taken to see that the existing policies and procedures are reviewed and reoriented to motivate, encourage and suport peoples' participation in an organised way through local groups and associations, or voluntary organisations. 11.64 Further, supplemental action by voluntary agencies in promoting activities for self-employment as well as development of the rural poor will he of invaluable help in optimising the results of Plan programmes, by enhancing the effectiveness and efficiency of the services provided by governmental functionaries and bv motivating the concerned beneficiaries and rendering suitable guidance to them in the formulation of viable projects and sources of funding. 11.65 Another area of voluntary action is through business houses, which have been given an added incentive of exemption from income tax under section 35CC and 35CCA of the Income Tax Act for expenditure incurred by them on certain permissible items of rural development. There is increasing interest among the business houses for involvement in rural development work. However, the efforts made so far are scattered and sporadic. It is proposed that during this Plan the business houses and their chambers will be persuaded to coordinate their efforts so that a comprehensive programme of development is taken up in selected areas/blocks with the combined resources of the participating business houses. If so required certain specific blocks will be selected in each State for such action. T1" 1" input of financial and managerial assistance from business houses will need to be utilised as far as possible through local peoples' groups or voluntary organisations. 11.66 The role of Government agencies should be to help people to help themselves. Success in achieving a rapid improvement in the quality of life of the rural and urban poor will depend upon the extent of involvement of our vast human resourcea in national development. Annexure 11.1 Sixth Plan Outlays : Special Programmes of Rural Development, C.D. and Panchayati Raj and CooperationCentral Sector (Rs. in crores) Outlays for 1980-85 Sl. No. Special Programmes of Rural Development RDP 1 2 DPAP 3 DDP 4 National Grid of Rural Godowns 5 TRYSEM 61 Council for Advancement of Rural Technology sub-total (1- 6) NREP Total (I) II. C. D. & Panchayati Raj III. Cooperation 1 Cooperative Credit 2 Cooperative Marketing, Processing & Storage 3 Consumer Cooperatives 4 Cooperative Training & Education 5 Miscellaneous

750.00 175.00 50.00 17.50 5.00 0.05 997.55 980.00 1977.55 7.17 35.00 178.50 56.00 10.50 0.15

96
sub-total (III) Grand Total (I+II+III) 333.15 2314.87

Annexure 11.2 Sixth Plan Outlays: Special Programmes of Rural Development, C.D. & Panchayati Raj and Cooperationstates, U.Ts. Sl.No. Name of the (Rs. in crores) Sixth Plan Outlays State Special C.D.& Cooperation Programmes of Panchavati Rural Develop Raj merit including NREP (1) (2) (3) (4) Andhra 87.25 59.50 29.5 Pradesh Assam 42.25 8.00 25.60 Bihar 190.00 22.35 27.25 Gujarat 144.00 6.30 32.00 Haryana 28.93 16.50* 26.80 Himachal 16.90 3.00 6.75 Pradesh J&k 24.10 6.00 5.00 Karnataka 49.15 2.50 50.00 Kerala 25.10 41.40 22.00 Madhya 155.00 15.00 47.90 Pradesh Maharashtra 81.00 0.51 57.44 Manipur 7.00 2.00 1.80 Meghalaya 3.00 2.40 3.28 Nagaland 6.50 7.00 1.50 Orissa 105.00 5.25 30.00 Punjab 36.00 18.15 41.50 Rajasthan 105.75 0.33 24.3S Sikkim 0.25 1.60 Tamil Nadu 120.00 78.00 25.33 Tripura 6.55 4.48 5.00 Uttar 147.96 18.37 55.36 Pradesh West 126.00 18.00 46.00 Bengal Total States 1507.44 335.29 566.00 1.78 9.61 18.08 1509.22 344.90 584.08 * Includes Rs. 10 crores for National Rural Employment Programme.

(0) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19. 20 21 22

U.Ts. Grand Total States & U.Ts.

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7th Five Year Plan (Vol-2)

RURAL DEVELOPMENT AND POVERTY ALLEVIATION PROGRAMMES

APPROACH AND STRATEGY FOR THE SEVENTH PLAN 2.1 Poverty alleviation programmes have to be viewed in the wider perspective of socio-economic transformation in the country. While the present strategy of direct attack on poverty through specific poverty alleviation programmes is justified on account of insufficient percolation of benefits to the poor from overall economic growth, it should be appreciated that the strategy of direct attack on poverty cannot be sustained and would not yield the desired results, if the overall growth of the economy itself is slow and the benefits of such growth are inequitably distributed. For one thing, the resources and the capabilities needed for running such programmes cannot be generated in the system unless the economy itself is buoyant and there is a sustained increase in output. Secondly, the demand for goods and services produced by the poorer household enterprises rises significantly in response to the overall increase in incomes in the country so that the viability of these household enterprises depends critically on the sustained increase in national income. Further, it is necessary to ensure that the pattern of overall economic growth itself is such as to generate adequate incomes for the poorer sections through its greater impact on employment-generation and on the development of the less developed regions. The programmes for poverty alleviation should thus be regarded as supplementing the basic plan for overall economic growth, in terms of generating productive assets and skills as well as incomes for the poor. 2.2 The economic betterment of the poorer sections cannot be achieved without social transformation involving structural changes, educational development, growth in awareness, and change in out-look, motivation and attitudes. The social framework should be such as to provide opportunities for the poorer sections to display initiative and to stand on their legs. Moreover, such a framework can ensure that the benefits of poverty alleviation programmes really reach the poor and are not frittered away through various leakages. Strict enforcement of land reforms and revamping of credit institutions can provide the necessary access to assets and resources for the poor as well as promote a more equitable social structure. Greater participation of the poor through the elected institutions at the grassroots level as well as through their own organisations is another means to achieve social change. Improvement of literacy and education, both through formal and non-formal means, and the imaginative use of various mass media for communicating useful information and knowledge as well as for changing the outlook of the people by instilling in them the egalitarian spirit the urge for and confidence in achieving self-betterment through co-operative endeavour, are essential for speeding up the process of socio-economic transformation. 2.3 Admittedly, there have been various deficiencies in the implementation of the poverty alleviation programmes. However, there has been a distinct improvement in the actual implementation of these programmes over the Sixth Plan. The Approach to the Seventh Plan reiterates the goal of bringing down the percentage of population below the poverty line to less than 10 by 1994-95. Therefore, the special programmes for income generation for the poor through assets endowment and wage employment for them will be continued at an accelerated pace during the Seventh Five Year Plan. 2.4 In view of the deficiencies noticed in the implementation of the Integrated Rural Development Programme (IRDP), it has been suggested that greater priority should be assigned to rural employment programmes by shifting resources away from IRDP. The argument is two-fold. First, the household enterprises of the type visualised are inherently uneconomic and are in any case handicapped for lack of

98
necessary infrastructure. Secondly, owing to the illiteracy and weak economic position of the beneficiaries and the existence of a chain of intermediaries, only a small portion of the intended outlay reaches the actual beneficiaries. Employment programmes on the other hand, it is argued, can provide secure wageincome to the poor, through the creation of durable community assets. 2.5 However, the experience of the working of poverty alleviation programmes is by no means uniform in the country. In general, the performance of IRDP has been better in the relatively developed regions which are well provided with infrastructure and where level of awareness among the beneficiaries is high. Even in the less developed areas, performance has been satisfactory wherever special efforts have been made for undertaking the necessary follow-up measures and for greater involvement of people through their representatives. 2.6 As to the economic viability of the household-enterprises, it should be noted that such enterprises are already in existence on a wide scale in the developed as well as the less developed regions. In fact, they are a major source of employment and income for the poor in rural areasnext only to land. But they suffer from various handicaps in regard to the supply of raw materials, access to credit, facilities for marketing, etc. As a result, there is considerable exploitation of these households by the middlemen. Public intervention to provide the necessary services to these already existing enterprises would contribute to a substantial increase in their income. Government-sponsored programmes for the poor, such as dairy and poultry, account for only a small proportion of the total market for such products now, sometimes even less than one per cent. 2.7 The demand for such products, and for a number of other rural crafts, is highly responsive to increase in income and, therefore, there is no reason for pessimism about the prospects for income generation for the poor from such activities so long as overall economic growth is satisfactory. Besides, the possession of productive assets and skills confers other advantages such as economic security, social status and creditworthiness. Such activities are labour-intensive and not land-intensive and, therefore, typically suit the marginal holdings and the landless. Even though the capital-output ratios (investment per unit of output) for some of these activities are higher than that for crop production, they are still very much lower than for many of the small-scale industrial enterprises. In many cases, where traditional skills are available and remain underutilised for want of resources, the capital-output ratio turns out to be much lower than even for crop production. These activities, in general, require government support for resources, training in skills, and marketing. 2.8 IRDP and employment programmes are not mutually exclusive. As it is, most of the IRDP beneficiaries supplement their incomes through wage earning in agriculture as well as from projects under National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP). These activities supplement one another and together ensure a more stable flow of incomes to the poor throughout the year. The problem of ensuring maximum benefits to the target groups by minimising leakages is common for all the poverty alleviation programmes and indeed for the rural development programmes in general. Apart from the necessary restructuring of the administrative set-up, there is no alternative to raising the awareness of the rural poor and involving representative institutions from below in the formulation as well as implementation of such programmes. 2.9 Cost-effectiveness of the programmes and minimisation of leakages should be the two guiding principles in the implementation of poverty alleviation programmes. Economic viability should be understood primarily in terms of cost effectiveness, i.e., maximum income generation per unit of total expenditure incurred. This is to be distinguished from economic viability defined as level of investment sufficient to enable a family to cross the poverty line. The ability of a poorer household to cross the poverty line depends on its overall income, i.e., income from the poverty alleviation programmes and other wage and non-wage incomes accruing to it. 2.10 Cost-effectiveness or efficiency of programmes depends to a considerable extent, on the nature of activities chosen. In view of the significant regional diversities in the country in regard to resource

99
endowments, availability of infrastructure, administrative arrangements, etc., there need to be sufficient flexibility in the choice of activities in different regions in keeping with the specific circumstances of the area concerned. One should thus expect considerable diversity in the mix of activities from region to region. 2.11 The total impact of the programme depends on the degree to which the different poverty alleviation programmes, including the Minimum Needs Programme (MNP), are integrated with one another and with the overall development of the area. For example, endowment of land under land reform measures can enable a family to grow fodder for the animal given under the IRDP;development of house, sites under MNP can be integrated with the construction of the houses under NREP or RLEGP and vice-versa, and both in turn integrated with the IRDP by developing work sheds and production estates around the housing complex. NREP and RLEGP can also be used extensively for raising productivity in agriculture through construction of field channels for irrigation and for drainage, 2.12 To achieve the above objectives of cost-effectiveness and minimisation of leakages by imparting the necessary flexibility in the choice of activities and by achieving integration in the programmes, a threepronged strategy is envisaged in the Seventh Plan. (a) Poverty alleviation programmes would be formulated and implemented in a decentralised manner with the participation of people at the grassroots level through village pan-chayats, panchayat samities, zilla parishads, etc. Such an approach will contribute to the selection of project suited to local conditions, and to the integration of poverty alleviation programmes with area development. This framework will also help in the timely provision of services in their appropriate sequence and in ensuring that the benefit of such programmes really reach those for whom they are intended. The Working Group on District Planning constituted by the Planning Commission had recommended a gradual approach towards decentralisation for achieving the objectives of effective implementation of poverty alleviation programmes and balanced regional development. During the Seventh Plan, decentralisation of the planning process and full public participation in development will be pursued on the lines suggested by the Working Group. (b) The launching of a large number of programmes both through the normal sectoral efforts and other steps designed to cater to target-group households has resulted in a multiplicity of organisations, leading to duplication of management efforts. Further, the delivery system at various levels has proved to be inadequate. The effective implementation of poverty alleviation programmes would call for better planning at the district level involving various disciplines or departments, tighter organisational set-up to ensure optimal use of resources and closer monitoring. A High Level Committee has been set up by the Planning Commission to review the existing administrative arrangements for Rural Development and Poverty Alleviation Programmes and to recommend an appropriate structural mechanism to ensure that they are planned in an integrated manner and effectively implemented. Measures will be taken during the Seventh Plan for strengthening, proper training and orientation of the local administrative machinery within the framework of an integrated administrative organisation. (c) Keeping in view the limited absorptive capacity of the poorest households, the Approach to the Seventh Plan has also emphasised the need for taking up group-oriented activities for beneficiaries, to the extent possible, through the promotion of co-operatives, registered societies, informal groups, etc., so that the economies of scale, inherent in some of these activities, especially in the provision of services, are fully realised while, at the same time, group initiative and effort of the poor are promoted. This is necessary to protect the beneficiaries from the adverse operation of market forces whether on supply of inputs or on the sale of their produce. The mass media will have to be geared forincreasing awareness among the rural poor and for disseminating information, non-formal education and functional skills and knowledge required by them. For purposes of bringing about a greater degree of awareness among, and participation of, beneficiaries, a Central scheme is proposed to be launched for the organisation of the beneficiaries both in terms of group-oriented economic activities and increased conscientisation. Further, voluntary agencies would be increasingly involved in the formulation as well as implementation of poverty alleviation programmes during the Seventh Plan, especially for ensuring greater participation of the people.

100
INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) Review of Performance 2.13 The programme of asset-endowment under IRDP was designed to develop self-employment ventures in a variety of activities like seri-culture, animal husbandry and land-based activities in the primary sector; weaving handicrafts, etc., in the secondary sector; and service and business activities in the tertiary sector. With a view to diversifying the occupational structure, it had been stipulated that 33 per cent of the beneficiary coverage should, as far as possible, be in the secondary and tertiary sectors. The assets provided to the selected households were financed through a mix of government subsidies and institutional credit on an average subsidy credit ratio of 1:2. The capital cost of the assets was subsidised to the extent of 25 per cent for small farmers, 33-1/3 per cent for marginal farmers, agricultural labourers and rural artisans and 50 per cent for the scheduled tribes. A family could receive upto Rs. 3,000 by way of subsidy. In drought prone areas, the limit of subsidy ceiling was Rs. 4,000 while for tribal beneficiaries it was Rs. 5,000. 2.14 The key indicators of performance in the Sixth Plan are given in Table 2.1. It would be seen that at the national level the targets have been achieved in respect of all the quantitative parameters set out in the programme guidelines. However, the performance has been uneven as between States. TABLE 2.1 IRDP Performance in the Sixth Plan S.I Mo. Items Targets 198085 198081 4 300.66 Achievements 1981- 1982-83 1983-84 1984-85 1980-85 82 5 6 7 8 9 250.55 400.88 407.36 407.36 1766.8 207.72 194.23 406.09 773.51 207.72 206.96 472.20 857.48 901.0 788.39 1661.17 3101.61

1 1. 2. 3. 4. 5. 6. 7. 8.

9. 10. 11. 12. 13.

2 Total allocation (Rs. crores) Central allocation (Rs. crores) Central release (Rs. crores) Total expenditure (Rs. crores) Total term credit mobilised (Rs. crores) Total investment mobilised (Rs. crores) Total no. of beneficiaries covered (lakhs) No. of SC/ST beneficiaries covered (lakhs) Per capital subsidy (Rs.) Per capita credit (Rs.) Per capita investment (Rs.) Subsidy Credit Ratio Sectorwise coverage

3 1500.00 750.00 1500.00 3000.00 4500.00 150.00 50.00

127.80 153.36 204.48 82.58 128.45 176.17

158.64 264.65 359.59 289.05 467.59 713.98

447.69 732.24 1073.57 1179.60 1329.60 4762.78 27.27 7.81 27.13 10.01 34.55 14.06 36.85 15.37 39.82 17.38 165.62 64.63

1000.00 2000.00 3000.00 1:2

582 1060 1642

975 1723 2698

1041 2066 3107

1102 2099 3201 1:1.90

1186 2153 3339 1:1.82

1003 1873 2876 1:1.87

1:1.82 1:1.77 1:1.98

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(%) (a) Primary sector (b) Seconday sector (c) Tertiary sector

93.56 2.32 4.12

83.02 4.92 12.06

68.7 15.7 15.6

58.9 13.2 27.9

54.5 15.7 29.8

2.15 The Programme Evaluation Organisation of the Planning Commission, RBI, NABARD, Institute of Financial and Management Research, Madras, and a number of other institutions have conducted studies in respect of IRDP. Most of these studies were based on the experience of the first one or two years of the programme, when it had yet to stabilise and when the per household investment levels were very meagre. 2.16 The number of persons who would have crossed the income level of Rs. 3500 according to these studies would not exceed around 40 per cent (PEO 49 per cent), although additional incomes have accrued in the case of 55 to 90 per cent of the beneficiaries, and the relative consumption expenditure of households assisted under these programmes has been found to be generally higher than for comparable non-beneficiary households. The Sixth Plan had assumed an ICOR of 1.5 and resources had been allocated in such a manner as to enable average investment per household of around Rs. 3000. The studies made so far indicate that ICOR assumptions were too optimistic and the investment levels per household were inadequate, in quite a few cases, to generate enough additional income to carry the beneficiaries, particularly those with a large income gap, above the income level of Rs. 3500. Some of the other significant issues brought out by the evaluation studies are as follows: (i) The financial allocations and physical targets under the Programme were determined on a uniform basis per block, without regard to the incidence of poverty, or even the size of population, which in some cases also, resulted in the selection of ineligible families. (ii) The extent of wrong identification was quite high at around 15-20 per cent. The main reasons for wrong identification were: (a) reliance on lists of households identified under the SFDA where the identification was based on land holding rather than income; (b) non-involvement of people's institutions in the survey and selection process; (c) better bank-ability of those having an asset base; and (d) collusion between the government functionaries and vested interests in some cases. (iii) There have also been complaints of outright leakages through corruption and malparactoces which,however, have not been quantified by any of the studies. Some factors which could have promoted this are: (a) non-involvement and lack of awarness among the beneficiaries: and (b) methodology of adminstration of subsidy; and (c) insufficient investment in terms of project cost norms resulting in purchase of substandard assests. (iv) The selection of schemes under the Programme has shown an overwhelming bias towards animal husbandry, more particularly milch cattle. While this activity has considerable employment and income generation potential, this was vitiatedly by: (a) the shortage of good quality animals; (b) artificial increase in prices of animals; and (c) absence of linkages and support structures for feed, health cover and marketing. On the other hand, the predominance of this activity can be explained by factors such as the familiarity of the beneficiaries and block functionaries alike, and absence of expertise in projectisation with respect to secondary and tertiary activities. (v) While the Programme guidelines stipulated that 33 per cent of the beneficiaries should be assisted under the secondary and tertiary sectors, the actual percentage in earlier years was much lower (Table 2.1). Though there has been a distinct improvement in the later years, there has been a tendency even now to concentrate on petty business activities. While these can yield quick returns with relatively low

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project investment levels, the life of the investment is likely to be short, and in many cases they may not become selfsustaining. (vi) A disturbing distinction between the so-called production programmes and beneficiary-oriented programmes has been noticed. Even the banks have sometimes referred to IDRP loaning as credit at the expense of priority production sectors, although most of the activities taken up under IRDP would fall within that category. (vii) A major problem has been found to lie in the absence of backward and forward linkages. It appears that no real steps have been taken to provide institutional support for the supply of raw materials and, more particularly, for marketing, which was an important component of the total Sixth Plan strategy for Rural Development. Back-up support from sectoral departments was also found to be largely missing. (viii) Inadequacy of banking infrastructure in certain areas, particularly in the North-East, has affected credit flow adversely; shortages of staff, almost everywhere, have resulted in insufficient scrutiny and delayed disposal of loan applications, and absence of supervision and follow-up; insistence on security in spite of instructions to the contrary, has resulted in the exclusion of the poorer among the target group; prescription of unrealistic loan repayment schedules has resulted in non-productive use of assistance; and non-availability of loan passbooks with the beneficiaries has encouraged malpractices and adversely affected repayments. (ix) Another weakness of the IRDP which has been discovered during the implementation is non-adoption of the cluster or group approach. (x) An important bottleneck has also been found to lie in administrative weaknesses both in terms of the qualified staff required at the block and district levels and in respect of vertical and horizontal coordination and integration between different departments. 2.17 Although there have been many shortcomings in the Programme, there have been strong positive features also. The evaluation studies have brought out that it has resulted in substantial additional incomes to a large number of beneficiaries and the creation of assets which, in 70-80 per cent cases, were found to be intact. In some cases it has actually resulted in a change in occupational structure. There has been a definite shift in the sectoral coverage pattern also, with the secondary and tertiary sector activities having increased from about 6.44 per cent in 1980-81 to about 46 per cent in 1984-85. The per household investment has gone up from Rs. 1642 in 1980-81 to Rs. 3339 in 1984-85 and there has also been an increase in the credit-subsidy ratio. Training of Rural Youth for Self-Employment (TRYSEM) 2.18 With the objective of providing technical skills to rural youths to enable them to take up selfemployment in the broad fields of agriculture and allied activities, industries, services, and business activities, the scheme of Training of Rural Youth for Self-Employment was started on 15th August, 1979. The Sixth Plan aimed to train 2 lakh rural youths every year at the rate of 40 youths per block per annum. The target-group comprised rural youths between the ages of 18 and 35 from families living below the poverty line. It was also indicated that a minimum of 30 per cent of the trained youths should belong to Scheduled Caste SC and Scheduled Tribe ST communities and a minimum of 31-1.3 per cent of the rural youths trained should be women. 2.19 Against the target of 10.05 lakh youths to be trained during the Sixth Plan, 9.4 lakh youths were actually trained which accounts for 93.3 per cent of the target. Of the 9.4 lakh youths trained, 4.46 lakh youths (49.4 per cent) were self-employed. Member of SC and ST account for 31.5 per cent of the persons trained, while women account for 34.8 per cent of the total number of persons trained. Development of Woman and Children in Rural Areas (DWCRA)

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2.20 It was noticed in the first three years of the Plan that the benefits under the IRDP were not flowing to women in adequate measure. Therefore, a programme for Development of Women and Children in Rural Areas (DWCRA) was introduced in September, 1982 in 50 districts on a pilot basis with a view to increasing their income and also to provide support services needed to enable them to take up incomegenerating activities. For this purpose, assistance could be given either to individual woman or to those organised into homogenous groups to take up economically viable activities on a group basis together with the provision of support services and child-care facilities for the women so organised. 2.21 The Sixth Plan outlay for the scheme was Rs. 15.60 crores which was to be shared equally by the Centre and the States. In addition, UNICEF assistance was to be made available to the extent of Rs. 5.40 crores. It was realised that Government effort would require to be supplemented by voluntary agencies also and a scheme of assistance to voluntary agencies under DWCRA was formulated. Besides, need was also felt for the construction of multipurpose community centres for the purpose of imparting training to workers to enable them to take up income generating activities, demonstration of appropriate technology and living quarters for gramsevikas of the area. In all, 3308 Groups covering 52,1.70 Women beneficiaries were actually organised under the Programme in the Sixth Plan. Measures Proposed in the Seventh Plan 2.22 Many of the shortcomings of the Integrated Rural Development Programme (IRDP) outlined above would appear to stem from the fact that a programme of massive dimensions, having a multiplicity of critical parameters and functioning in a highly diverse environment, was launched with what .can be called very little preparation. The Sixth Plan period could thus be called a period of trial in which the Programme has gradually come to be known, understood and even stabilised. The gaps that have been revealed and the weaknesses that have been experienced in the process will be remedied in the Seventh Plan so as to make the IRDP an effective instrument of poverty alleviation. 2.23 The Programme will continue to aim at the poorest among the poor who will be identified by an annual household income of Rs. 4800, which is substantially lower than the cut-off income of around Rs. 6400 at the poverty line level. Towards achieving this end, much greater care will be exercised in the process of selection of beneficiaries. Detailed household surveys, with maximum involvement of the local community, will be carried out with the dual objective of identifying those who, having already received assistance in the Sixth Plan, require supplementary assistance to achieve economic viability and those in the lowest strata of the poverty group, who have not been approached so far. The survey may have to be accompanied by a process of registration of poor families with the objective of identification of targetgroup households, not only for the IDRP but also for the delivery of an integrated package of benefits under the other programmes connected with poverty alleviation and raising the levels of living of the poor, such as the NREP/ RLEGP and MNP, etc. 2.24 Considering the low absorptive capacity of the poorest among the poor, apart from the emphasis on the group approach indicated eariler, the adoption of the total household approach will be emphasised as a major plank of the Programme. This would mean not only the provision of a total package of benefits and services under different programmes to the identified households but also the provision of assistance under the IRDP in the form of more than one scheme of assests over a period of time, if necessary to different members of the household, so as to gradually create a capacity for productive absorption of credit and generation of self-sustaining income. 2.25 It is important to ensure a balanced sectoral coverage under the Programme. To achieve this objective there would be a renewed emphasis on decentralised planning at the district level with the objective of drawing up project and sub-sectoral profiles based on the local potential and the on-going sectoral plans and programmes which could help to identify the major potential thrust areas in different regions. Such plans at the district level would have to be prepared within the first year of the Seventh Plan. In the process, on-going target group-oriented schemes being implemented by different departments will be rationalised and others capable of such orientation, the Special Rice Programme,

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Operation Flood II (OF-11), Programmes for Handlooms and Sericulture, etc. would be given a specific direction towards the target group of the IRDP with a view to achieving maximum integration between the individual beneficiary-oriented content of the IRDP, on the one hand, and the infrastructure and service support made available through such programmes, on the other. For example, the benefits intended to be provided to 10 million families under the OF-II could be easily directed first to the IRDP beneficiaries who might have got milch cattle, rather than having an independent selection of farmers who in most cases would be better off and more easily able to fend for themselves. 2.26 Within the above broad framework, due emphasis would be given to augmenting productivity through IRDP by taking up land-based activities like minor irrigation, dry farming, horticulture and even farm forestry. With the emphasis of IRDP on the poorest of the poor, this would imply large scale conjunctive activity with land reforms, i.e., land distribution and grant of ownership rights to sharecroppers and tenants and with programmes like NREP and RLEGP i.e., development of distributed/ distributable lands, etc. 2.27 Concrete steps will be taken to step up activity in the Industries, Services and Business (ISB) sector. Realistic project profiles will be worked out for household enterprises, and wherever possible larger groups enterprises, in areas of traditional skills. These will take into account the need to provide balancing equipment and improvement of existing capital stock along with the provision of working capital to maintain continued income flows and asset development and renewal. In a number of other sectors of the economy like water supply and sanitation and improved agricultural implements, there is considerable scope for developing productive ventures for production, fabrication and service/repair of new technologybased equipments, which will be exploited and developed to the maximum extent as part of secondary and tertiary sector activity under IRDP. 2.28 A major area of weakness under the Programme, i.e., the absence of infrastructural support and backward and forward linkages, will be given special attention. For the most part this will have to come from the sectoral departments in the form of development of appropriate technology, production and supply of good-quality assets and provision of other inputs and services. In order to ensure this an attempt would be made to spell out the provision of such support specifically in the sectoral plans. In addition, to meet the requirements of programme specific and balancing infrastructure at the local level, funds will be provided separately, over and above subsidy funds, as a part of the overall outlays under IRDP. These funds, among other things, would be utilised for developing institutions such as District Supply and Marketing Societies at the district level to take care of raw materials/ input requirements and marketing. It will be emphasised that an infrastructure sub-plan should be prepared as anintegral part of the sub-sectoral district plans mentioned earlier. While doing this, the support likely to be available through the plans of sectoral departments as well as the planned use of the IRDP infrastructure funds would both have to be spelt out. 2.29 The process of skill endowment to members of the target groups would be considered as an integral part of the IRDP. The training of youths under TRYSEM would, therefore, be provided on the basis of actual need and requirement, and there will be no separate targets at a macro-level for TRYSEM. The costs of training in the form of stipends, etc. will be met out of the funds set out for infrastructure, etc. under the IRDP. The Sixth Plan scheme for strengthening of training infrastructure for TRYSEM will be reoriented and replaced by a new scheme to develop Composite Rural Training and Technology Centres (CRTTC) in each district as nodal institutions within a larger system of training and technology dissemination covering the district as a whole. Such centres will be developed around existing ITIs, Polytechnics, etc. 2.30 The technology component of these Centres would be developed by CART acting through Statelevel Science and Technology Institutions. For purposes of technology development and dissemination, major thrust areas and areas with evident potential for application in the context of small ventures under IRDP and other special programmes of rural development will be identified, and techno-economic profiles based on such technology will be prepared together with appropriate training packages, wherever necessary. The dual objective of this would be to ensure widespread dissemination of technology already

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developed and to bring home the economic advantages of the same in maximum measure to members of the target group. In identified thrust areas where the state of technology may be in a relatively nascent stage, experimental projects would be taken up by CART through different governmental and nongovernmental agencies. 2.31 A major role in the Programme would continue to be played by the banking sector. It is expected that credit to the tune of around Rs. 4000 crores would have to be mobilised from the banking structure. The role of cooperative institutions, which had not been upto the mark in the Sixth Plan, will have to be emphasised, and a reasonable percentage of the total credit would have to be mobilised from these institutions. This would call for strengthening of the cooperative institutions both through the sectoral Plan funds and infrastructure funds available under the IRDP. In certain regions, particularly the north-east, the bank infrastructure will be substantially expanded and strengthened with a view to extending credit in areas hitherto deprived of it. Strict measures will be taken to enforce the instructions by which IRDP loans are exempted from security. Besides, steps will be taken to see that the terms of loan and repayment schedules are rationalised so that the poorest of the poor are able to improve their levels of living from increases in productivity and, if necessary, a moratorium on repayment in certain cases would be considered. Steps will also be taken to ensure the provision of working capital and even a cash credit limit, wherever necessary and feasible. Loan pass books would be issued to all beneficiaries to ensure proper accounting and follow-up. 2.32 The ceilings of subsidy fixed for different categories of beneficiaries in the Sixth Plan would continue. Within these, the average subsidy per household would be stepped up from around Rs. 1000 in the Sixth Plan to around Rs. 1333 to allow for a higher per capita investment level (around Rs. 4000 as compared to Rs 3339 in 1984-85) so as to ensure adequate income returns. The position regarding the average subsidy per household can be reviewed for the last three years of the Plan. The manner of administering the subsidy will be reviewed and rationalised with a view to ensuring that leakages are minimised and the beneficiary, without adding any extra burden, is motivated towards productive utilisation of the loan. 2.33 Due emphasis would continue to be given under the IRDP to direct the maximum quantum of benefits towards women, who admittedly constitute a substantially deprived section of the community. Efforts to be made in this direction through IRDP would be supplemented by continuing the Programme for the Development of Women and Children in the Rural Areas (DWCRA) in the Seventh Plan. Considering that the Sixth Plan experience with this programme was still of a pilot and experimental nature, the Programme would be implemented in 1000 blocks. The objective would be mainly to organise women in socio-economic activity groups with the dual objective of providing self-employment opportunities and social strength to them. In the process voluntary agencies and people's action group would be involved to the maximum extent possible. Efforts will also be made to integrate with the DWCRA other programmes for the development of Women and Children, viz., the ICDS Integrated Child Development Services and other State programmes like SIAD Social Inputs for Area Development, so as to provide a larger and more comprehensive coverage of women and children and to reduce duplication and increase the cost-effectiveness of the total, effort. 2.34 The Special Livestock Production Programme (SLPP), which had continued in the Sixth plan as a separate programme, although financed through IRDP outlays, will be merged with the IRDP under which substantial activity in the milch cattle sector has. in any case been noticed. The pattern of assistance under the SLPP will, wherever feasible be provided under the main IRD Programme. With the merger of this programme with the IRDP and considering ihe normal emphasis on milch cattle that is likely to continue in the IRDP even otherwise, there is likely to be a substantial demand for good quality heifers and other milch animals. Keeping this in view a new breeding programme, the Special Livestock Breeding Programme (SLBP), will replace the SLPP in the Seventh Plan. This would enable the farmers selected for this purpose to contribute to the poverty alleviation programmes by producing good quality animals, and create alternative market channels for animal sales towards the Programme requirements even for target-group cattle-owners.

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2.35 Keeping in view the objective of bringing down the poverty ratio to less than 10% by 1994-95, it would be aimed to provide assistance to around 20 million households under the IRDP in the Seventh Plan. Considering that between 50 and 60 per cent of the Sixth Plan beneficiaries may not have actually crossed the poverty line, it is expected that around 50 per cent of the beneficiaries to be assisted in the Seventh Plan will be cases requiring supplementary assistance on an average, at the Subsidy rate of Rs. 500 per household. 2.36 To enable these targets to be achieved, an outlay of Rs. 1328.88 crores has been provided for IRDP and allied programmes in the Seventh Plan in the Central sector to be matched by an equal amount by the States. This outlay would include provision for subsidy for the main programme, funds for infrastructure, training stipends, etc., to the extent of 20 per cent of the subsidy funds; setting up of the CRTTC and the Special Livestock Breeding Programme and certain other programmes like strengthening of Block Administration, Computerised District Rural Information system, strengthening of Extension Training Centres, etc. Of the total outlay, Rs. 1887.05 crores would be available for subsidy and Rs. 471.76 crores for infrastructure, etc. under the IRDP. The remaining amount would be for other schemes mentioned above. 2.37 The outlays under the Programme will be based upon the principle of selectivity geared to actual incidence of poverty in different States. For the first two years 50 per cent of the allocations will be made on the basis of an equal allocation per block as in the Sixth Plan, and the remaining 50 per cent on the basis of incidence of poverty determined by the NSSO survey. From the third year onwards, the allocations would be based entirely on the incidence of poverty. NATIONAL RURAL EMPLOYMENT PROGRAMME (NREP) Review of Performance 2.38 The NREP was launched in October, 1980 and became a regular Plan programme from April, 1981. The programme was expected to generate additional gainful employment in the rural areas, to the extent of 300-400 million mandays per annum, create durable community assets, and improve nutritional status and living standards of the poor. 2.39 An outlay of Rs. 1620 crores was provided under this Programme, out of which the outlay from 198081 onwards (Rs. 1280 crores) was to be shared equally between the Centre and the States. The yearwise performance under the Programme is indicated in Table 2.2. 2.40 A major step was taken in 1983-84 when it was decided to subsidise the cost of the foodgrains to be distributed under this Programme. A subsidy to the extent of 37 Paise to 40 Paise per kg was provided for wheat and rice to be distributed under the Programme. According to the guidelines, foodgrains were to be provided at the rate of 1 kg per man day. The total foodgrains made available each year during 1980-85 and the utilisation are indicated in Table 2.3. 2.41 The creation of durable assets was an important objective of this Programme and, in fact, the real distinguishing feature between the Food for Work Programme and the NREP. With a view to ensuring the durability of assets created, a provision had been made allowing for expenditure on materials to the extent of 40 TABLE 2.2 Performance of NREP in the Sixth Plan Year Resource availability (Rs. crores) Expenditure (Rs. crores) Employments generation (in million mandays) Man-day Wage: cost (Rs.) Material ratio

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1980-81' 1981-82 1982-83 1983-84 1984-85 346.32 460.37 540.15 535.59 590.68 219.03 317.63 394.76 392.22 519.14 413.58 354.52 351.20 302.76 352.31 5.25 9.04 11.24 13.08 14.74 62:38 69:31 62:38 60:40

"For the first six months, the Food for Work Programme was in operation. TABLE 2.3 Utilisation of Foodgrains under NREP Year Total foodgrains available (lakh (MTs) total Foodgrains Percentage utilised (lakh MTs) utilisation 3 13.44 2.33 1.72 1.47 1.70 4 87.30 60.42 46.56 60.02 58.45 Percapita foodgrains utilised (kgs.) 5 3.22 0.64 0.45 0.49 0.48

1 1980-81 1981-82 1982-83 1983-84 1984-85

2 15.62 3.43 3.57 2.88 2.72

per cent of the total project cost (revised to 50 per cent in 1983-84). Table 2.4 shows the different catagories of assets created under this Programme during the Sixth Plan. TABLE 2.4 Assete created under NREP (1980-85) Assets Social forestry Soil conservation Works benefiting SC/ST School & other buildings Tanks Roads Irrigation & flood control Others (ha) (ha) (Nos) (Nos) (Nos) (Kms) (ha) (Nos) 1980-81 54567 228130 16001 N.R. 166463 385144 141539 1981-82 103319 136971 90423 21302 13709 73010 105640 7276 1982-83 100984 37823 158971 75402 15996 104498 166408 15683 1983-84 110903 79863 89325 28865 11955 53909 219077 14495 1984-85 93967 29957 128693 78691 11630 34705 54566 24468

2.42 It would be seen from the foregoing review that the employment generation target under the NREP has been consistently achieved. However, it is not known as to how much of this has been directed towards those who are landless and the poorest among the poor. To this extent the programme has apparently lacked a direct focus on the target-group population, for whom it was meant. It has, however, had a substantial impact in terms of stabilisation of wages in the rural areas, containing prices of foodgrains and the creation of a wide variety of community assets which could be expected to help in raising the levels of living of the rural population.

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2.43 As regards asset creation under NREP, it would be seen from Table 2.4 that productive works such as soil conservation, social forestry and irrigation had shown a decline between 1980-81 and 1982-83 while there was a sharp increase in building works, and roads continued to have an important place in the Programme. 2.44 As regards specific type of assets reported to have been constructed, the reviews have brought out certain features which would have to be considered for the future:

i.

ii.

The growing propensity to take up all kinds of building works in increasing measure suggests local pulls and pressures geared to a desire for a very wide and thin coverage and easier implementability of such works as compared, for example, with water-shed-based land development works which require expertise among the field planners. In the process, material costs have tended to be high with subsequent higher maintenance requirements, durability of assets in some has been suspected and long-term income generation and employment effects have been limited. In the case of social forestry which constituted an important component of the programme (10 per cent of the resources were earmarked for this purpose) it was found that in addition to road-side plantation which has been generally popular, projects in some States included growing of nurseries for distribution of saplings to all farmers, big and small, and in some cases plantation in small village lots without adherence to appropriate cost and physical norms. Ten per cent of the outlays had been earmarked for works of direct benefit to members of Scheduled Castes and Scheduled Tribes who are among the poorest of the poor. Such works could include drinking water wells, housing, on-farm works, etc., although the number of such works showed an increase over the years, many States were not able to spend the earmarked outlays. Moreover, sufficient details of the types of works taken up in this category have also not been available. Projects for roads which have accounted for a substantial percentage of funds under NREP in many cases have not been found to have a meaningful relationship with priorities arising from the Minimum Needs Programme.

iii.

iv.

Measures Proposed in the Seventh Plan 2.45 The National Rural Employment Programme will be continued in the Seventh Plan as an important component of the anti-poverty strategy. As indicated earlier, this will have to be viewed as an integral part of the total package, which would imply that an effort would have to be made to direct and monitor the wage employment opportunities accruing through this Programme to members of the target group including those indentified for assistance under the IRDP. The same principle would apply in the choice of projects which would, therefore, have to take account of labour-intensity of projects, their capacity to provide reasonably long spells of employment during implementation, direction towards poor, long-term income and employment generation potential, capacity to create a base for productive asset endowment and capacity for filling gaps in vital infrastructure. Based on this, priority will be accorded to works for the development of waste lands and marginal lands allotted under land reform measures, renovation of derelict tanks for large scale development of fisheries with the target-group orientation, social forestry including fuel and energy plantations, fodder and pasture development and roadside plantations with maximum involvement of the community/ target-groups in their management coupled with nursery development of target-group land-holders. Development of composite homestead projects for the shelterless in the form of housing complexes-cum-production estates within a larger concept of habitat development, field works in irrigation command areas and micro watersheds, roads according to welldefined techno-economic norms and within planned priorities such as those arising out of the MNP, and need-based construction of buildings which apart from schools, panchayat ghars, etc., would provide vital economic infrastructures like buildings for godowns, banks and workshops/shops for target-group beneficiaries would be chosen.

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2.46 The broad objectives of the programme, while remaining the same as in the Sixth Plan, would have to conform to the above priorities. 2.47 The Sixth Plan experience has shown that the distribution of foodgrains has not kept up to the stipulated level of 1 kg. per manday for a variety of reasons relating to problems of storage and movement, quality of food-grains and diversion to the public distribution system, and in some cases because of local preferences for coarse grains. The importance of foodgrain distribution under the Programme cannot be over-emphasised in view of its effects both on stabilization of prices and the improvement of nutritional standards of workers. With the comfortable food stocks, an additional I million tonnes of foodgrains will be provided for the Programme over and above its normal requirements. The quantum of foodgrains distribution per worker per day would also be stepped up. The States will be asked to prepare detailed action plans to ensure that the process of foodgrain distribution is streamlined to achieve the Programme objectives. Where-ever necessary, coarse grains would have to be purchased locally and made available for the Programme. Efforts have been made successfully in some States to distribute other commodities such as sarees as wage payment in kind. Such efforts would be encouraged in other areas also in such manner as to provide encouragement to decentralised production of handloom textiles, etc. 2.48 With a view to overcoming the problems of ad hoc selection of projects and suspicious about the quality of work, detailed guidelines for important sub-sectors figuring under the Programme such as roads, social forestry and housing have already been issued. These will have to be supplemented by the preparation of detailed techno-economic norms at the State level and of technical training manuals for the implementation staff. The provision allowing for spending upto 50 per cent of the allocations on materials would be continued in the interest of ensuring the durability of the assets created. Since the relative costs of labour and materials for different projects would vary, the stipulated ratio would be maintained for the district as a whole which would allow substantial flexibility in the context of decentralised economic planning. RURAL LANDLESS EMPLOYMENT GUARANTEE PROGRAMME (RLEGP) Review of Performance 2.49 RLEGP was introduced from 15th August, 1983 with the objective of (a) improving and expanding employment opportunities for the rural landless with a view to providing guarantee of employment to at least one member of every landless household upto 100 days in a year and (b) creating durable assets for strengthening the infrastructure so as to meet the growing requirements of the rural economy. An outlay of Rs. 500 crores to be fully financed by the Central Government was provided under this programme in the Sixth Plan. The implementation of the programme was entrusted to the States/UTs, but they were required to prepare specific projects for approval by a Central Committee. During (1985) the Central Committee approved 320 projects with an estimated cost of Rs. 906.59 crores. The target for employment generation in 1983-84 and 1984-85 was fixed at 360 million mandays against which 260.18 million man-days of employment was actually generated. 2.50 This programme is expected to have resulted in the creation of a large number of durable community assets and economic infrastructure in the rural areas. However, a tendency to concentrate on assets creation on the basis of departmental plans rather than on the basis of the requirements determined locally and of the need to provide the requisite quantum of employment to the landless labourers, has been noticed. Concentration on road projects was also initially observed which was later sought to be restricted to not more than 50 per cent of the total outlays and also confined to the priorities arising out of the Minimum Needs Programme. Measures Proposed in the Seventh Plan

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2.51 Mid-way during the Sixth Plan, the RLEGP was started with the dual objective of expanding employment opportunities in the rural areas and providing sharper focus on the landless labour households which constitute the hard-core of the people below the poverty line. Suggestions have been made that this should be merged with the NREP. However, considering that a substantial part of the RLEGP funds would be committed to the on-going projects and also since it has not been found feasible to introduce a full guarantee of employment even to a limited section, this programme would continue as a separate entity for the time being. In the meanwhile, efforts would also be made to implement a limited guarantee for providing 80 to 100 days employment to the landless labour households through this programme. The issue of merger and a wider guarantee could be considered at the mid-term Plan review stage. 2.52 As in the case of the NREP, wage material cost-ratio will be 50 : 50, which, however, will be maintained on a project by project basis. Experience in the Sixth Plan in certain States has shown that if integrated projects are developed this stipulation would still allow substantial scope for productive works to be planned within a decentralised frame-work at the district level. 2.53 Under both these Programmes, 20 per cent of the resources will be earmarked for social forestry in view of the importance of eco-restoration and providing the benefits in the form of usufruct to the members of the community, particularly the poor. In addition, 10 per cent of the funds would be earmarked for works of direct and, if necessary, individual benefit to the members of scheduled castes. A separate provision within the RLEGP will be made for rural housing with the objective of constructing one million houses in the Seventh Plan. This will be closely integrated with the housing component of the MNP. 2.54 Five per cent of the outlays to be provided for RLEGP and NREP would be available for strengthening the implementation agencies. Further, based on past experience regarding problems of maintenance of assets created under such programmes, the question of providing funds to the extent of 10 per cent of the overall outlays for these programmes for maintenance will be considered. Maintenance under this provision would generally have to relate to sectors for which maintenance funds and systems are ordinarily not available and actual maintenance will have to be carried out on the basis of detailed maintenance plans to be drawn up for each district. 2.55 An outlay of Rs. 1250.81 crores has been provided for NREP in the Central Sector which will be matched equally by the States. The outlay of Rs. 1743.78 crores has been provided for RLEGP to be borne entirely by the Centre. Based on the average wage of Rs. 8.61 per day as in 1984-85 and a wage material cost-ratio of 50:50, a total employment of 1445 million man-days under NREP and 1013 million man-days under RLEGP is likely to be generated during the Seventh Plan at an average rate of around 290 million man-days and 200 million man-days per annum, respectively. 2.56 The formula for allocation of resources among the States, which provided for 25 per cent weightage to the incidence of poverty and 75 per cent weightage to the population of agriculture labourers and marginal farmers in the Sixth Plan will be changed to provide equal weightage to those from 1986-87 onwards, because it has been noticed that the existing formula has tended to benefit, in some cases, States which are more agriculturally advanced. DROUGHT-PRONE AREA PROGRAMME (DPAP) Review of the Sixth Plan 2.57 A Rural Works Programmes was started in 1970-71 in areas chronically affected by drought with the principal objective of organising permanent works to obviate scarcity relief and to generate adequate employment through labour-intensive schemes such as major, medium, and minor irrigation works, soil conservation, afforestation, and village and district roads necessary to open up the area for agricultural production. In the Fourth Plan, after the mid-term appraisal, this programme was re-designated as

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Drought Prone Area Programme (DPAP) and reoriented as an integrated area development programme with the objective of developing the land, water, livestock and human resources of these areas. The programme has been in operation in 511 blocks of 70 districts in 13 States. 2.58 A Task Force was constituted in 1980 to review the on-going special programme and development schemes taken up under DPAP, to study the existing coverage of the DPAP; to lay down objective criteria for inclusion/ exclusion of areas under the programme; to spell out the main components of the broad strategy of development under the programme and also to identify the linkages between DPAP and other on-going rural development programmes. The Task Force submitted its report in 1982 and made several recommendations for improving the impact and coverage of the DPAP. While implementing the recommendations of the Task Force, some of the States had not agreed to the exclusion of some areas, from 1982-83, from this programme, whereas a few States had even suggested the inclusion of new areas which they considered to be drought-prone. 2.59 An Inter-Departmental Group on DPAP/DDP was set up in 1984 by the Department of Rural Development to examine the representations received from these States for purposes of inclusion/reinclusion of blocks under these programmes. It is as a result of the recommendations of the InterDepartmental Group that 120 blocks were added to DPAP, while 16 blocks were deleted from the programme. The net addition has, therefore, been 104 blocks to the existing coverage of 511 blocks (upto 1984-85). 2.60 During the Sixth Plan, the financing pattern was on the basis of equal sharing between the Centre and the States. The funding norm under the DPAP has been at the rate of Rs. 15 lakhs per block per year. The Sixth Plan allocations for DPAP was Rs. 350 crores. As against this, the actual expenditure amounted to Rs, 310 crores. 2.61 The physcial achievement during the Sixth Five Year Plan are as follows: 1. Soil and moisture conservation 2. Creation of irrigation potential (minor irrigation) 3. Afforestation and pasture 4. Milk societies established 5. Sheep societies established 6. Employment generatedman-days Measures Proposed in the Seventh Plan 2.62 The strategy adopted in the Sixth Plan for DPAP will continue during the Seventh Plan which would inter-alia include increased stress on activities which can contribute directly to the restoration of the ecological balance and increasing the per capita income through the effective development of land and other natural resources including efficient utilisation of scarce water, conservation of scanty rainfall, and arresting its run-off in drought-prone areas. Accordingly, the Programme, as at present, would continue to be implemented as an integrated area development programme rather than as a programme merely for creating increased employment opportunities. Integrated district plans, taking into account resourcesavailable under sectoral programmes and other special programmes like NREP, RLEGP, and IRDP, will be prepared to achieve the objective of restoration of ecological balance of the area by way of soil and moisture conservation, development and management of irrigation, afforestation, restructuring of cropping pattern, and development of livestock resources. ('00 ha.) -do-doNos. Nos. '000 4265.59 3276.67 3869.86 3426 622 176996

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2.63 For DPAP the existing pattern of assistance and the funding norm per block per year would be continued during the Seventh Plan for which an outlay of Rs. 237 crores as Central share has been provided. LAND REFORMS Review of Performance 2.64 Land Reforms have been recognised to constitute a vital element both in terms of the anti-poverty strategy and for modernisation and increased productivity in agriculture. Redistribution of land could provide a permanent asset base for a large number of rural landless poor for taking up land-based and other supplementary activities. Similarly, consolidation of holdings, tenancy regulation and updating of land records, would widen the access of small and marginal land-holders to improved technology and inputs and thereby directly lead to increase in agricultural production. 2.65 A land reforms policy with a five-fold objective was continued in the Sixth Plan. The objective envisaged (i) abolition of intermediary tenures; (ii) tenancy reforms aimed at security of tenure, regulation of rent and conferment of ownership rights on tenants; (iii) ceiling on land-holdings and distribution of surplus land; (iv) consolidation of holdings; and (v) compilation and updating of land records. It was expected that legislative measures to confer onwership rights on tenants would be introduced in all States by 1981-82, that the programme of taking over and distribution of surplus ceiling land would be completed by 1982-83, that compilation updating of land records would be completed in a phased manner by 1985 and that consolidation of holdings would be taken up in all States with the aim of completing it in 10 years with priority being assigned to command areas of irrigation projects. In addition, Land Reforms Amendment Acts were to be brought within the Ninth Schedule, Ceiling Laws were to be automatically enforced in command areas of irrigation systems and the State Governments were expected to take more initiative in the development of Bhoodan lands. 2.66 A scheme for providing financial assistance to assignes of ceiling-surplus land had also been started in 1975-76 for the landless poor, so as to enable them to take to profitable cultivation on the assigned land which is generally of poor quality. As the scheme now stands, financial assistance is provided upto Rs. 2500 per hectare to be given as a grant to the assignee, for various purposes like simple land development, provision of inputs as well as immediate consumption needs. Since the inception of the scheme, Rs. 25.07 crores have been released to the States under this Programme. 2.67 An outlay of Rs. 30 crores was provided for this Scheme in the Central Sector for the period 1980-85 and an equal amount was to be provided as matching outlay by the States. Actual utilisation of funds has, however, been very low, largely because the States have not been providing their matching share, and due to the non-submission of utilisation certificate of allocated resources, the Central releases could not be made. It was also found that there was little or no linkage between this Programme and the IRDP or the NREP/RLEGP, and it functioned in isolation, generally through the Revenue Agencies rather than the DRDA and the Block. 2.68 Ceiling laws are prevalent all over the country except in the north eastern regionNagaland, Meghalaya, Arunachal Pradeshwhere land is generally held by the community, and in the Union Territories of Andaman and Nicobar Islands, and Goa, Daman and Diu. In other areas, the ceiling was first imposed on land-holdings in the fifties and sixties. Later, National Guidelines on the subject were framed in 1972. Under the two sets of ceiling laws, 7.2 million acres of land have been declared surplus, 5.6 million acres have been taken possession of, and 4.4 million acres distributed. Thus, 2.8 million acres of land declared surplus have not been distributed so far. Of this, 1.6 million acres are involved in litigation and 0.89 million acres have been reserved for specific public purposes. It would be seen that a very large chunk of surplus distributable land is blocked due to litigation. Jurisdiction of civil courts has been barred in respect of land reforms cases (because of their inclusion in the Ninth Schedule of the Constitution). However, the writ jurisdiction of the High Court and Supreme Court remains. Article 323B (42nd Amendment) of the

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Constitution provides for setting up land tribunals after extinguishing the writ jurisdiction of High Courts. But concerted action in this regard still remains to be taken. 2.69 About 4.2 million acres of land were received in Bhoodan, but so far only about 1.3 million acres have been distributed. The State Governments have not taken any initiative for the development of these lands even where these are in compact blocks. This is an area where a conscious thrust would be necessary. Similarly, there is an area of 16.7 million hectares of culturable wasteland in the country, the development and utilisation of which is not being monitored. Some States have been distributing wastelands, but the total picture is not clear. There is thus an urgent need to bring both these categories of land into a comprehensive redistributive land reforms policy with appropriate measures for enforcement and monitoring. 2.70 Fifteen out of the 22 States in the country have enacted laws on consolidation of land-holdings. Upto the year 1979-80, the consolidated area in the country was 46.2 million hectares. Consolidation has been completed in Punjab and Haryana and is nearing completion in Uttar Pradesh, Bihar, Gujarat, Himachal Pradesh, Jammu & Kashmir and Karnataka. Madhya Pradesh and Orissa have also started consolidation operations. The total area consolidated during the Sixth Plan was 5.6 million hectares. Thus, the total area consolidated so far is 51.8 million hectares, which is only 33 per cent of the total cropped area in the country. It is evident that efforts in this direction would have to be considerably stepped up. Measures Proposed in the Seventh Plan 2.71 Land reforms in the Seventh Plan would be looked upon as an intrinsic part of the anti-poverty strategy. 2.72 Whenever laws have not been enacted by the States for securing the rights of tenants and regulation of rent, the State Governments will take appropriate steps to enact such laws during the Seventh Plan. In order to expedite the process, attempts will also be made to organise quick surveys for recording/registration of tenants with maximum involvement of the local community and people's institutions. Such action may be necessary even in those States where tenancy, although abolished, may have re-emerged informally for a variety of reasons. Tribals and scheduled castes will be protected from alienation of their lands not only to non-tribals, but to the big land-owners among them, through appropriate legislation. 2.73 The full potential of land redistribution has not been realised both in terms of covering the entire surplus that may be available and taking possession of and distribution of that already identified. Legal and administrative bottlenecks have no large gaps between declaration of surplus land, taking actual possession of the land and its distribution. Appropriate measures will have to be taken to reduce the gap. Reassessment of ceiling surplus land will have to be done by the states,especially in the command areas and other newly irrigated areas. 2.74 To ensure the best use of surplus land that cannot be distributed because it is unfit for cultivation, the State Governments would have to take possession in order to avoid encroachment and to ensure their development in a planned manner.2.75 The scheme for financial assistance to the assignees of ceiling surplus land would be continued during the Seventh Plan. Since land as an endowed asset is only the first stage of productive self-employment for a large section of the poverty group, close linkages will have to be forged with IRDP and other rural development programmes so that assignees of ceiling and other lands are given priority in identification and their performance monitored separately. 2.76 Consolidation operations have not made much headway in many States. Consolidation of landholdings is especially important in the States of the eastern region where the Special Programme for Rice Production would be taken up. Some of the factors working against consolidation are: (a) fear of displacement among tenants and share-croppers; (b) advantage of having land in fragmented parcels in the event of floods and other natural calamities; and (c) apprehensions that the bigger farmers would get

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a better deal. These factors would have to be borne in mind while considering a policy for consolidation in the Seventh Plan. As far as possible, the holdings of small and marginal farmers need to be consolidated in such a way that they form contiguous blocks of land so that the exploitation of groundwater for them as well as provision of various agricultural services and inputs becomes economical. 2.77 Land records form the base for all land reform measures and therefore regular periodical updating of land records is essential in all States. This will necessarily have to include scientific surveys of unmeasured lands and recording of the rights of tenants and share-croppers which have remained unrecorded up till now. A Centrally Sponsored Scheme is proposed to be implemented during the Seventh Plan on the basis of matching contributions by the States and Centre, for updating of land records. The States would also be assisted in strengthening the revenue machinery at the grassroot level as well as at the supervisory levels. Training programmes for revenue functionaries and survey and settlement staff would be conducted to improve their efficiency as well as to bring about attitudinal changes. 2.78 A sum of Rs. 36.71 crores has been provided in the Centre for the Centrally Sponsored Scheme of financial assistance to assignees of ceiling surplus land, strengthening of revenue machinery and updating of land records. For the programmes in the States a sum of Rs. 353.88 crores and for the Union Territories Rs. 5.24 crores have been provided. COMMUNITY DEVELOPMENT AND PANCHAYATI RAJ Review of Performance 2.79 The Community Development Programme had provided an elaborate delivery mechanism in the form ofdevelopment Blocks and the village level extension agency. However, over the years, this mechanism had suffered considerable erosion and gradual disintegration. With the launching of the IRDP in the Sixth Plan efforts were made to restore, to a substantial extent, the mechanism provided under the Community Development Programme. As a result the position improved but the total delivery system has still not been able to attain its effectiveness as originally envisaged. The position varies in different States, but an almost uniform feature is the gradual erosion of the control of BDO over the extension team at the block and village levels. Simultaneously, a multiplicity of functionaries has emerged at this level for implementation of a large number of programmes aimed at the same people for raising their standard of living. 2.80 Similarly although Panchayati Raj institutions, in one form or another exist in most States, they have for a variety of reasons not been actively and effectively involved in the implementation of rural development programmes except in a few States. On the other hand it has been seen that wherever this has happened the quality of programme implementation has been decidedly better. 2.81 In terms of instruments of planning Community Development and Panchayati Raj institutions have been reduced to an extremely peripheral status with the budget provision in many cases being limited to maintenance of staff while in other cases there is duplication and repetition of a large number of small schemes which are being simultaneously executed on a much larger scale through sectoral and special programmes, e.g. those relating to health, sanitation, road-building, panchayat ghars, etc. Measures Proposed in the Seventh Plan 2.82 With the launching of large-scale multi-sectoral, country-wide programmes of rural development aiming both at individual households and at the creation of assets in the rural areas the original concept of Community Development could be said to have been substantially restored. This would be further strengthened by the measures already taken or proposed to be taken to strengthen and rationalise the administration and delivery mechanism. For purposes of the Seventh Plan, Community Development and Panchayati Raj would have to be viewed in this context and would have to break free from the

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conventional methodology of including a large number of small schemes through minimal budget provisions. What goes by the name of Community Development in the documents would have to be viewed now more in the nature of a scheme for village development which would imply the planning and implementation of a number of residual activities at the village level which do not get covered in the normal sectoral plans and special programmes e.g. village paths, drainage and sanitation. This in turn would have to be done on the basis of local, decentralised planning at the village and block levels for which block funds, both in the nature of outright and incentive grants, would have to be placed at the disposal of Panchayati Ftaj and Community Development bodies rather than by forming sectoral plans for the villages at the State and National levels. This would imply a considerable degree of rationalisation in the drawing up of plans for Community Development and Panchayati Raj and substantial autonomy in their implementation. 2.83 In addition, the States would be called upon to activate Panchayati Raj institutions, particularly at the village and block levels, with a view to ensuring their active involvement in the planning and implementation of the special programmes of rural development, particularly those concerned with poverty alleviation and the provision of minimum needs. Special Employment Programme 2.84 In addition to the Central programmes, some of the State Governments have introduced their own special employment programmes in the rural sector. These are Andhra Pradesh, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Tamil Nadu and West Bengal. The Seventh Plan outlay for these schemes is Rs. 509.24 crores. Monitoring and Evaluation 2.85 In the Sixth Plan, the Monitoring process had been confined, more or less, to watching the physical and financial progress in terms of money spent and physical coverage achieved, together with some analysis of per household investment levels, unit cost of wage employment, etc. Evaluation studies, on the other hand, were postfacto in nature and were not of much help in applying correctives on a continuous basis. 2.86 The whole machinery and system for monitoring and concurrent evaluation will be strengthened in the Seventh Plan. A Central Scheme will be started for the establishment of a Computerised District Rural Information System (DRIS) in each district with the ultimate objective of providing a data base for planning, selection of beneficiaries and schemes and monitoring their performance. In addition, steps will be taken to strenghthen the data collection and monitoring machinery at the block and district levels. A system of concurrent evaluation covering 72 blocks in 36 districts with a beneficiary sample of around 1500 per month, will also be launched for continuous follow-up and application of correctives. Strengthening of Administration 2.87 As already indicated, a High Level Committee has been set up to review the Administrative Arrangements for Rural Development and Poverty Alleviation Programmes with a view to developing appropriate structural mechanisms to ensure that they are planned and implemented in an effective and integrated manner. In the meanwhile, the scheme for Strengthening of Block Level Machinary, the objective of which was to restore the full complement of the administrative staff according to the schematic pattern of the community development programme, will be continued. Within this, steps would be taken to strengthen and upgrade the position of the BDO, rationalise and increase the strength of the workers at the village level and provide facilities for the implementing and supervisory staff for easy movement so that their efticieny is increased. Training

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2.88 It has been observed over the years that the emphasis that had been given to the training of the administrative and extension staff during the community development days has been gradually reduced both because of the disintegration of the programme itself and due to paucity of resources with the State Governments. Steps will be taken to strengthen the training institutions at different levels. A scheme of European Economic Community (EEC) assistance for this purpose will be continued and will be further supplemented by a Central Scheme to provide 100 per cent assistance for non-recurring expenditure and 50 per cent assistance for recurring expenditure involved in the setting up and strengthening of institutes of rural development and extension training centres in the States. The National Institute of Rural Development will also be strengthened and will be expected to play an active role in the coordination of training arrangement for different levels of rural Development functionaries in the States. Communications strategy 2.89 A communications strategy involving Doordar-shan, Akashvani, and DAVP will be developed for creating awareness among the beneficiaries and the people at large about the anti-poverty and the Minimum Needs Programmes, through the dissemination of relevant information and knowledge and through the educational programmes devised for this purpose. RURAL ENERGY Integrated Rural Energy Planning Programme 2.90 The pattern of rural energy consumption is dominated by non-commercial energy source such as firewood, agricultural waste and cowdung which form 90 per cent of the total energy consumed in the rural areas. These non-commerical energy sources also comprise of about half of the total energy consumed in the country. The continued and widespread use of non-commercial energy sources has resuffeld in large-scale destruction of the environment at very high social cost. 2.91 The Sixth Plan had proposed an Integrated Rural Energy Planning Programme, on a pilot basis, which would provide a mix of energy options for meeting the diverse energy needs of rural areas on an areawise basis, in most cost-effective manner. To implement this recommendation, the Planning Commission set up a Rural Energy Planning Exercise. Under this exercise Integrated Rural Energy Pilot Programmes were initiated since 1981 in selected States to develop the design and approach of planning and implementing area-based block-level integrated rural energy projects. Review of IREPP in the Sixth Plan 2.92 The Programme was started initially in four States in 1981, and subsequently extended to five more States by 1984-85. It was developed in three phases in each State. Phase-l involved setting up of a Working Group to prepare an Approach Paper on the Rural Energy Problem in the State. Phase-ll involved selection of pilot blocks and districts for preparation of IREP Projects for these blocks. During Phase-lll, implementation of the IREP projects was taken up. By the end of the Sixth Plan period, 20 block-level IREP projects were in different stages of implementation in the selected States, 2.93 In each of the pilot projects a block-level integrated energy plan was prepared, based on which the mix of the different energy options was promoted, depending on the resource endowments and the availability of various commercial and non-commercial energy sources in that block. The main items that were promoted included windmills, solar cooking, and heating systems, biomass, improved chulahs, improved bullock carts, improved kerosene stoves, improved equipment including pump-sets for better utilisation of electricity, better designed diesel pumpsets and pressure cookers. A total expenditure of Rs. 4.13 crores was incurred on the programme during the Sixth Plan period, relating to staff, preparation of project reports, incentives and subsidies, extension, demonstration, grants to R&D and other institutions and industries.

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2.94 The thrust of the programme during the Sixth Plan was to develop the design of block-level IREP projects and to evolve an institutional mechanism at the State, district, block and village levels to plan and implement these IREP projects. For this purpose State cells for coordinating the programme with the different departments, and project cells at the district level for implementing the programmes, were set up. The nodal department for the programme varied from State to State. Similarly, the implementation at district level was done either directly by the District Magistrate or througn the Zila Parishad, DRDS, etc. In view of the interdepartmental nature of the programme, many problems of coordination had to be tackled. On the basis of the Sixth Plan experience a standard institutional mechanism for planning and implementation of the programme at the State/ District levels is to be developed. 2.95 The mix of the different energy resources and technologies to meet different types of energy demand varied from project to project, depending on the specific situation and resource endowments in the block. Subsidies were often provided for different energy technologies over and above the standard subsidies being provided through on-going Central and State Schemes. These subsidies had to be changed a few times, depending on the response of the beneficiaries and the field performance of the technologies. The purpose of these enhanced subsidies was to break initial barriers in specific areas in the adoption of new technologies which were found to be technically and economically desirable. 2.96 Financial incentives were combined with extension and demonstration as part of a comprehensive approach to change the existing energy pattern to a desired pattern, as determined by the block level energy plan. This approach was found to be successful in most of the projects, and as a result subsidy could be reduced and eventually removed for certain new technologies. However, a mechanism needs to be developed so that subsidies for the IREP blocks can be based on a set of norms and specific guidelines, instead of being fixed on ad hoc basis. 2.97 Another lesson learnt from the exercise during the Sixth Plan was the urgent need to develop expertise in the States and districts to prepare and implement integrated area-based rural energy plans. Expertise for preparing such plans was usually not available in the existing departments and projects tended to be taken up on an ad hoc basis. However, as a result of the combined efforts of the Planning Commission and the State Governments, model project documents have been prepared for several selected blocks which would be utilised as the basis for replicating the programme in other blocks. 2.98 Professional staff were usually reluctant to work in the rural areas because of lack of facilities and unattractive salary structure vis-a-vis alternative opportunities in the urban areas; so posts took a long time to get filled up. This points to the need for providing suitable incentives to young professionals to work in energy programmes for rural areas. Also, training and orientation courses provided to the staff on an experimental basis need to be replaced by regular training programmes and proper training facilities. 2.99 Another significant lesson learnt was the importance of closely involving the rural community from the earliest stages of planning of this programme. Local institutions such as village Panchyat, primary and secondary schools, colleges, technical institutions, industries and financial institutions including local banks have also to be closely involved to make the programme a success. For this purpose District Working Groups have to be formed with the participation of the above institutions. 2.100 The Sixth Plan experience also brought out the urgent need for setting up an effective monitoring system for this programme at the National and State levels, so that policy guidelines and direction could be provided to the IREP projects regarding the various techno-economic aspects of the programme, especially on investments for supply of energy sources to rural areas, on a regular and continuing basis. SEVENTH PLAN Integrated Rural Energy Planning Programme

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2.101 On the basis of experience of the pilot IREP Programme during the Sixth Plan in the selected States, the Programme would be fully activised in all the States and Union Territories during the Seventh Plan. In the Seventh Plan effort would be made to develop the institutional mechanism in all the States/UTs for planning and implementing such integrated projects in selected blocks in each State. 2.102 The IREP Programme in the Seventh Plan would consist of the following component (i) Developing institutional mechanism in the States/ UTs (ii) Training (iii) Project preparation (iv) Project implementation (v) Provision of financial incentives (vi) Monitoring 2.103 These components would be funded through Central and States financial outlays for IREPP. The Central Financial component would be utilised for setting up institutional mechanism through funds for staff support and their training, and monitoring of the Programme. The State financial component would be utilised for project preparation; project implementation which would include demonstration and extension programmes; grants to local institutions and industries; and for provision of financial incentives to users and manufacturers for IREP projects. 2.104 For the preparation of block-level IREP projects, different energy options would consist of the ongoing schemes of Central and State Governments, including those involving conventional sources of energy such as rural electrification, supply of petroleum products, oil, fuelwood and soft coke, as well as new and renewable sources of energy. Rural energy resources and technologies not covered by any ongoing Central and State schemes would, however, be promoted in the IREP blocks through appropriate subsidies and incentives. 2.105 Brief details on the different components of the programme during the Seventh Plan are given in the following paragraphs. 2.106 (i) Institutional mechanism in the States/UTs. State cells consisting of professional economists and engineers and other supporting staff would be created in a suitable nodal department at the State level, such as the Planning department, for coordinating and directing the programme in the State. District cells would be set up under DM/CDO to plan and implement the IREP block-level projects. An outlay of Rs. 3.50 crores has been provided for this component. 2.107 (ii) TrainingA major training programme will be developed for motivating and training professionals to work on the planning and implementation of the IREP Programme at the State, district, block and village levels. For this purpose regular orientation and refresher courses will be organised for field and project staff. A National Training Centre will also be set up for the IREP Programme. An outlay of Rs. 1.50 crores has been earmarked in the Seventh Plan for this purpose, and for tranining programmes. 2.108 (iii) Project preparationNecessary expertise would be created and guidance provided to prepare area-based (block-level) integrated rural energy plans for this programme. Technical assistance would be provided by the Planning Commission to the States in preparing such documents. An outlay of Rs. 0.50 crore has been provided as Central support for this component which would be utilised for carrying out surveys, compiling data, preparing project reports, etc. 2.109 (iv) Implementation of the projectsImplementation would consist of demonstration programmes on new energy technologies, extension through involvement of voluntary organisations, non-official and official institutions and participation of local institutions including banks, R & D institutions, industries, etc. Funds for this purpose would be provided from the State Plan for IREPP. 2.110 (v) Incentives and subsidies for IREP Programme.Incentives and subsidies would be provided from the State Plan to supplement, if necessary existing subsidies on on-going programmes and for the items not covered by any on-going programmes. State-level mechanisms would be set up to periodically

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reviewthe subsidy pattern for different sources of energy in each block-level IREP project. This component will also be funded from State plan funds for IREPP. 2.111 (vi) MonitoringBased on the Sixth Plan experience, a computerised monitoring system would be set up in the Planning Commission to monitor the physical and financial progress of the IREP projects and status of the programme in the States. Subsequent policy guidelines and directions would be provided for optimising investments in the Rural Energy sector by the Centre and States. An outlay of Rs. 0.41 crore has been provided for this purpose. 2.112 During the Sixth Plan, 20 IREP projects were set up. In the Seventh Plan period, the number of projects would be progressively increased every year so that by the end of the Seventh Plan period at least 100 block-level IREP projects would be set up. More projects would be funded in those States where the programme is picking up and in the hill States and backward areas. Since the programme is still in the initial stages, it will be developed through the Seventh Plan period by the Planning Commission, after which it will be transferred to an operating department as a regular programme. 2.113 OutlaysAn amount of Rs. 41.85 crores has been provided for the IREP programme in the States/UTs in the Seventh Plan. This is substantial step-up over the Sixth Plan outlay of Rs. 4.13 crores which was provided for a pilot exercise in eight States. The Central Sector provision for IREP programme is Rs. 5.91 crores, which would be utilised for staff support to the States; for training and orientation programmes including a training centre;and for monitoring, setting up computer information system and documentation. INVOLVEMENT OF VOLUNTARY AGENCIES 2.114 There is a good deal of voluntary effort in India, especially in the field of social welfare. The tendency so far has been to equate the work of voluntary agencies with only welfare activities and charity work. Involvement of other agencies in the non-government sector, such as trade unions, cooperatives and Panchayati Raj bodies, has tended to blur the identity of those which can be strictly defined as voluntary organisations. There has been inadequate recognition of their role in accelerating the process of social and economic development. These agencies have been known to play an important role by providing a basis for innovation with new models and approaches, ensuring feedback and securing the involvement of families living below the poverty line. Therefore, during the Seventh Plan, serious efforts will be made to involve voluntary agencies in various development programmes, particularly in the planning and implementation of programmes of rural development. Voluntary agencies have developed expertise and competence in many non-traditional areas to plan their own schemes instead of expecting Government to do so. More specifically, the role of voluntary agencies in the implementation of development programme is:

i. ii. iii.

To supplement government effort so as to offer the rural poor choices and alternatives; To be the eyes and ears of the people at the village level; To set an example. It should be possible for the voluntary agency to adopt simple, innovative, flexible and inexpensive means with its limited resources to reach a larger number with less overheads and with greater community participation. To activate the delivery system and to make it effective at the village level to respond to the felt needs of the poorest of the poor; To disseminate information; To make communities as self-reliant as possible;

iv. v. vi.

120 vii. viii. ix. x. xi.

To show how village and indigenous resources could be used, how human resources, rural skills and local knowledge, grossly underutilised at present, could be used for their own development. To demystify technology and bring it in a simpler form to the rural poor; To train a cadre of grassroot workers who believe in professionalising volunteerism; To mobilise financial resources from within the community with a view to making communities stand on their own feet; To mobilise and organise the poor and generate awareness to demand quality services and impose a community system of accountability on the performance of village-level government functionaries.

2.115 Voluntary agencies are essentially non-profit and non-partisan organisations. The criteria for identifying voluntary agencies for enlisting help in relation to the rural development programmes can be as follows:

i. ii. iii.

The organisation should be a legal entity. It should be based in a rural area and be working there for a minimum of 3 years. It should have broad-based objectives serving the social and economic needs of the community as a whole and mainly the weaker sections. It must not work for profit but on 'no profit and no loss basis'. Its activities should be open to all citizens of India irrespective or religion, caste, creed, sex or race. It should have the necessary flexibility, professional competence and organisational skills to implement programmes. Its office bearers should not be elected members of any political party. It declares that it will adopt constitutional and non-violent means for rural development purposes. It is committed to secular and democratic concepts and methods of functioning.

iv. v. vi. vii. viii.

2.116 In order to assist and support voluntary agencies in the implementation of anti-poverty and Minimum Needs Programme, there is need for a consolidated approach in the field of social welfare and social services, that is, for conventional voluntary agencies, there is already the Central Social Welfare Board with their State branches. For integrated rural development and allied services covered by the antipoverty and Minimum Needs Programme in the Seventh Plan period there is need to enlarge the function and scope of People's Action for Development (India): PADI. 2.117 The accent in the Seventh Plan will be to professionalise volunteerism, to introduce professional competence (delinked from degrees) and managerial expertise in keeping with the resources and capabilities of voluntary agencies to be in a position to meet the basic requirements of government in terms of accountability. Voluntary agencies, however, will need to give greater attention to mobilise locally available human and financial resources, identify people in the poorer and vulnerable occupations like farmers, rural artisans, scheduled castes and scheduled tribes, agricultural labourers, girijans and bonded labourers, upgrade their skills and give them the tools to make them economically self-sufficient as well as productive.

121
2.118 There has to be mutual trust and understanding between government and voluntary agencies at the village level. If at the higher levels there is general indifference to voluntary agencies, at the village level there is often open hostility. For want of an established forum where voluntary agencies could be given an opportunity to explain their position and defend themselves or bring field problems to the notice of the State Governments, the situation that now prevails is not conducive to full participation of voluntary agencies. 2.119 The need to establish a regular forum was felt during the Sixth Plan period when the late Prime Minister in October 1982 wrote to all the Chief Ministers that Consultative Groups of voluntary agencies must be established at the State level. It is hoped that during the Seventh Plan period such Consultative Groups will be established in all States and given operational responsibilities. It is proposed that at the Central level, voluntary effort in the rural development sector with its allied services is promoted on a much larger scale with greater responsibilities through PADI and such other bodies as may be established. The State level Consultative Groups recommended by the late Prime Minister headed by either the Chief Secretary or the Development Commissioner should be registered under the Societies Registration Act as People Action for Development (PAD). 2.120 For voluntary effort to succeed, guidelines will be formulated to minimise delays and harassment by frequent reference of project proposals to various government (Central and State) departments/agencies. PAD should prepare a panel of experts available in the voluntary sector in different States/districts who are prepared to assist on a professional and consultancy basis in the planning and implementation of antipoverty and minimum needs programmes through voluntary agencies. There are officials in the Central and State Governments who are keen to offer their services and experience to upgrade professionalism in the voluntary sector. Suitable steps will be taken to facilitate this. Professional and consultancy services to voluntary agencies could also include those by retired personnel and ex-servicemen. 2.121 The programmes and areas in which the participation of voluntary agencies can be of great help for better implementation of anti-poverty and minimum needs programmes are:

i. ii. iii. iv. v. vi. vii. viii. ix. x. xi.

Integrated Rural Development/Landless Employment Guarantee Programme /TRYSEM; Implementation of land ceiling and distribution of surplus land; Enforcement of minimum wages to agricultural labourers; identification and rehabilitation of bonded labour; Development of scheduled castes and scheduled tribes; Supply of safe drinking water: repair and maintenance of water supply systems with Community support; Afforestation social forestry, development of biogas and alternative energy sources (solar and wind energy, improved chulas}; Promotion of family planning; Primary health care; control of leprosy, TB, blindness; preventive health programmes using village resources; Programmes for women and children in rural areas; Innovative methods and low-cost alternatives in elementary, primary and middle school education for children, adult education and non-formal and informal education;

122 xii. xiii. xiv. xv. xvi. xvii.

Consumer protection: promotion of cooperatives; Promotion of handicrafts and village and cottage industries; Promotion of science and technology; Legal education; Rural housing: improvement of rural slums; Environmental and ecological improvement; and (xviii) Promotion and encouragement of traditional media for dissemination of information.

2.122 The human resource available in the training infrastructure of voluntary agencies need to be mobilised and used more effectively at the village level in the Seventh Plan period. The non-formal and informal skills, methods and approaches of building confidence among the rural poor to undertake responsibilities of planning and implementing programmes on their own that training institutions in the voluntary sector have developed, needs to be considered for replication on a larger scale. 2.123 There is need for voluntary agencies to decide on a code of conduct to be applicable to those agencies receiving government funds. 2.124 It is proposed that about Rs. 100-150 crores of Plan expenditure in the Central and State sectors on the programmes listed above may be earmarked for use in active collaboration with voluntary agencies. This involvement could take many forms. In certain cases a'program-me or some of its components could be implemented directly by the voluntary agency in a specified area. In certain others they could participate in the process of planning, mobilisation, monitoring and evaluation and be assisted by suitable grants-in-aid. These and other modalities of involvement would vary from case to case but the intention is to ensure that the financial target given above is realised on a national scale. TABLE 2.5 Summary Table of the Outlays for Rural Development Programmes Centre, States and UTs (Rs. crores) Total Centre Seventh Plan Clutaly States UTs (4) (5) 1609.61 1236.66 396.30 509.24 353.88 37.15 4142.84 19.85 5.24 4.70 29.79

(1) Integrated Rural Development and Related Programmes National Rural Employment Programme Community Development and Panchayati Raj Institutions Special Employment Programmes Rural Landless Employment Guarantee Programme Land Reforms Integrated Rural Energy Programme TOTAL:

(2) 3473.99 2487.47 416.15 509.24 1743.78 395.83 47.76 9074.22

(3) 1864.38* 1250.81 1743.78 36.71 5.91 4901.59

123
Includes Rs. 245 crores for Desert Development Programme.

8th Five Year Plan (Vol-2)

RURAL DEVELOPMENT AND POVERTY ALLEVIATION
Overview 2.1.1 Alleviation of rural poverty has been one of the primary objectives of planned development in India. Ever since the inception of planning, the policies and the programmes have been designed and redesigned with this aim. The problem of rural poverty was brought into a sharper focus during the Sixth Plan. The Seventh Plan too emphasised growth with social justice. It was realised that a sustainable strategy of poverty alleviation has to be based on increasing the productive employment opportunities in the process of growth itself. However, to the extent the process of growth bypasses some sections of the population, it is necessary to formulate specific poverty alleviation programmes for generation of a certain minimum level of income for the rural poor. 2.1.2 Rural development implies both the economic betterment of people as well as greater social transformation. Increased participation of people in the rural development process, decentralisation of planning, better enforcement of land reforms and greater access to credit and inputs go a long way in providing the rural people with better prospects for economic development. Improvements in health, education, drinking water, energy supply, sanitation and housing coupled with attitudinal changes also facilitate their social development. 2.1.3 Rural poverty is inextricably linked with low rural productivity and unemployment, including underemployment. Hence it is imperative to improve productivity and increase employment in rural areas. Moreover, more employment needs to be generated at higher levels of productivity in order to generate higher output. Employment at miserably low levels of productivity and incomes is already a problem of far greater magnitude than unemployment as such. It is estimated that in 1987-88 the rate of unemployment was only 3 per cent and inclusive of the underemployed, it was around 5 per cent. As per the currently used methodology in the Planning Commission, poverty for the same year was estimated to be 30 per cent. This demonstrates that even though a large proportion of the rural population was "working" it was difficult for them to eke out a living even at subsistence levels from it. It is true that there has been a considerable decline in the incidence of rural poverty over time. In terms of absolute. numbers of poor, the decline has been much less. While this can be attributed to the demographic factor, the fact remains that after 40 years of planned development about 200 million are still poor in rural India. In 198788, the rural poverty line in terms of per capita monthly expenditure was Rs. 131.80. The average incidence of rural poverty conceals wide inter-state differences which suggests that greater attention needs to be paid to the regions which have a greater concentration of the rural poor. In recent years, several issues have been raised about the methodology of poverty estimation, both by professionals and State Governments. An Expert Group appointed by the Planning Commission is looking into these issues relating to the definition and measurement of poverty. 2.1.4 The decline in rural poverty is attributable both to the growth factor and to the special employment programmes launched by the Government in order to generate more incomes in the rural areas. Hence, in its more limited interpretation, rural development has been confined to a direct attack on poverty through special employment programmes, area development programmes and land reforms. These will be reviewed in this chapter. In addition, the role of the Panchayati Raj Institutions and voluntary organisations in the implementation of these programmes has also to be kept in view. A review of the ongoing programmes is presented in the first part of the Chapter. In the second part, the approach and strategy for the Eighth Plan are spelt out. Review of the Existing Programmes

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Integrated Rural Development Programme (IRDP) 2.2.1 Under the IRDP, those living below the defined poverty line in rural areas are identified and given assistance for acquisition of product live assets or appropriate skills for self-employment, which in turn, should generate enough income to enable the beneficiaries to rise above the poverty line. 2.2.2 This scheme was launched in the Sixth Plan. Its assessment at the end of the Sixth Plan period revealed several shortcomings. Keeping this in view and the feed-back received from the State Governments, suitable changes were introduced in the guidelines for the IRDP in the Seventh Plan. The poverty line was based at Rs.6400, but those eligible for assistance under the IRDP had to have an average annual income of Rs.4800 or less. It was assumed that those households with income levels between Rs.4800 and Rs.6400 would be able to rise above the poverty line in the process of growth itself. It was targetted that 20 million families would be assisted under IRDP during the Seventh Plan of which 10 million were new households and 10 million old beneficiaries who had been unable to cross the poverty line and required a second dose. 2.2.3 During the Seventh Plan, me subsidy expenditure on IRDP was Rs.3316 crores which was in excess of the target of Rs.3000 crores. The total investment including the institutional credit amounted to Rs.8688 crores. In quantitative terms, the physical achievement of about 18 million households fell short of the original target of 20 million households but exceeded the cumulative target which was only 16 million families. The sectoral composition indicates that, of all the schemes selected under IRDP, 44 per cent were in the primary sector, 18.5 per cent in the secondary sector and 37.5 per cent in the tertiary sector. The salient features of the IRDP performance during the Seventh Plan and 1990-91 are given in Appendix I. 2.2.4 A system of concurrent evaluation of the IRDP programme was also introduced under which data were collected by independent research institutions for the entire country on a sample basis. Statewise details of performance are available. The findings suggest that the IRDP was quite successful in terms of providing incremental income to poor families. However, the number of households able to cross the poverty line was relatively small. It may be partly due to the low levels of initial investment. On the other hand, it is also difficult to expect banks to raise the per capita loan assistance to beneficiaries, given the excessive overdues pending. In order to enhance the economic returns from an asset, it is necessary to integrate this scheme with the development plans of an area so that select activities become viable. This aspect will be discussed in Part E. Training of Rural Youth for Self Employment (TRYSEM) 2.3.1 TRYSEM was introduced in 1979 to provide technical skills and to upgrade the traditional skills of rural youth belonging to families below the poverty line. Its aim was to enable the rural youth to take up self- employment ventures in different spheres across sectors by giving them assistance under IRDP. Later, in 1987 the scope of the programme was enlarged to include wage employment also for the trained beneficiaries. 2.3.2 During the Seventh Plan about 10 lakh youth were trained under TRYSEM, of which 47 per cent took up self- employment and 12 per cent wage employment. The remaining 41 per cent could not avail of either. On the other hand, a sizeable proportion of IRDP beneficiaries who needed training could not receive it. In fact, only 6 to 7 per cent of IRDP beneficiaries were trained under TRYSEM. During 1990-91 the number of youth trained were 2.6 lakhs, of which 70 per cent got employed. Development of Women and Children in Rural Areas (DWCRA) 2.4.1 In 1982-83 an exclusive scheme for women was launched in the IRDP, as a pilot project, in 50 districts. In the Seventh Plan it was extended to more districts and at the end of the Seventh Plan period it was in operation in 161 districts. Under DWCRA, a group of women are granted assistance to take up

125
viable economic activities with Rs. 15,000 as a one-time grant to be used as a revolving fund. In the Seventh Plan about 28,000 groups could be formed against the target of 35,000 with a membership of 4.6 lakh women. During 1990-91, against a target of 7,500 groups, 7,139 were actually formed. 2.4.2 While, in principle, this scheme is a sound one, in operationalising it the impadt has been inadequate. This is perhaps due to 'a lack of cohesion among women groups formed under DWCRA and their inability to identify activities that could generate sustained incomes. In this sphere, the role of voluntary organisations would be crucial in organising women to take up group-based economic activities which are viable within the context of an area development plan. Experiments in some States to form women's thrift and credit societies first, and then start them on economic work have been successful. Wage Employment Programmes 2.5.1 In 1989, the erstwhile National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP) was merged into a single rural wage-employment programme called the Jawahar Rozgar Yojana. However, given that in the first four years of the Seventh Plan, the NREP and RLEGP were in operation, a brief review of these two programmes is given below. National Rural Employment Programme (NREP) 2.6.1 The entitlement of each State to the Central fund was based on the incidence of poverty and the population of agricultural labourers, marginal farmers and marginal workers with 50 per cent weightage to each. However, the Centre and State shared the expenditure equally on a 50:50 basis. Some broad indicators of the performance both physical and financial are set-out in the table below: 2.6.2 A concurrent evaluation of NREP re vealed that several types of assets were created. with 24.6 per cent expenditure on rural ruatk and 19.1 per cent on social forestry. Construction was a main activity with 11.9 per cent or; schools, 12.1 per cent on houses and 6.4 per cent on panchayat ghars; 6.5 per cent was directed to minor irrigation and 3.3 per cent to wells for drinking water. Rural Landless Employment Guarantee Programme (RLEGP) 2.7.1 This was a totally Centrally financed programme introduced in 1983. While most of the objectives and stipulations under this were similar to those of NREP, it was to be limited only to the landless, with guaranteed employment of 100 days. Moreover, there was earmarking of funds specifically for certain activities- 25 per cent for social forestry, 10 per cent for works benefitting only the Scheduled Castes/Scheduled Tribes and 20 per cent for housing under Indira Awaas Yojana. In the Seventh Plan, Rs.2412 crores were spent and 115 crore mandays were generated with an average expenditure of Rs.21.00 per manday. Only 16 per cent had been spent on social forestry but 22 per cent had been spent on housing,- with over 5 lakh houses created for SC/ST and freed bonded labourers. Rural roads accounted for 22 per cent while other construction, minor irrigation, soil conservation etc. each had a small share. Performance of NREP in the Seventh Five Year Plan Year Resource availability (Rs. crores) 593.08 765.13 888.21 Expenditure: (Rs. crores) 531.95 717.77 788.31 Employment Generation (in million mandays) 316.41 395.39 370.77 Manday Cost(Rs.) 16.81 18.15 21.26 Wage-NonWage Ratio 60:40 60-40 59:41

1985-86 1986-87 1987-88

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1988-89

845.68

901.84

394.96

22.83

57:43

The physical and financial achievements, are presented below: Performance of RLEGP in the Seventh Plan Year Resource availability (Rs. crores) 580.35 649.96 648.41 761.55 Expenditure (Rs. crores) 453.17 635.91 653.53 669.37 Employment Manday Generation Cost (Rs.) (in million mandays) 2.47.58 306.14 304.11 296.56 18.30 20.77 21.49 22.57 Wage/NonWage Ratio 57:43 57:43 58:42 58:42

1985-86 1986-87 1987-88 1988-89

Jawahar Rozgar Yojana (JRY) 2.7.2 In the last year of the Seventh Plan, JRY was launched with a total allocation of Rs. 2600 crores to generate 931 million mandays of employment. The primary objective of the programme is generation of additional employment on productive works which would either be of sustained benefit to the poor' or contribute to the creation of rural infrastructure. Under this programme, Centre's contribution is 80 per cent, and 20 per cent is the State's share. The JRY is implemented in all villages in the country. 2.7.3 Central assistance is provided to the States on the basis of proportion of the rural poor in a State/UT to the total rural poor in the country. From the States to the districts, the allocations are made on an index of backwardness which is formulated on the following basis:

i. ii. iii.

20 per cent weightage for the proportion of agricultural labourers in the total workers in the rural areas. 60 per cent weightage to the proportion of rural scheduled castes and tribes population in relation to the total rural population; and 20 per cent weightage to the inverse of agricultural productivity.

2.7.4 Of the total allocations at the State level 6 per cent of the total resources are earmarked for housing under the Indira Awaas Yojana (IAY) which are allotted to the scheduled castes and scheduled tribes and freed bonded labour. In addition, 20 per cent are earmarked for Million Wells Scheme (MWS). In fact, this scheme was launched as a special feature both under NREP and RLEGP in 1988-89. The objective is to provide open wells, free of cost, to poor SC/ST farmers in the category of small and marginal farmers, and to free bonded labourers. However, where such wells are not feasible, the amounts allotted may be utilised for other schemes of minor irrigation like irrigation tanks, water harvesting structures and also for development of lands of SCs/STs and freed bonded labourers including ceiling surplus and bhoodan lands. A maximum of 2 per cent of JRY funds are to be spent as administrative costs inclusive of any additional staff. 2.7.5 After providing for the above earmarking, 20 per cent of the remaining funds are retained at the district level and 80 per cent are allocated to village panchayats by giving 60 per cent weightage to SC/ST population and 40 per cent to the total population of the village panchayat. The responsibility of implementation of JRY in respect of district share of funds is that of DRDA/Zilla Parishad, but at the village level it is that of the Gram Panchayat. In case two or more districts/gram panchayats decide to

127
pool the resources together to take up a work for the common benefit of the concerned district/panchayat, the arrangement is permissible. 2.7.6 Works can be taken up for execution during any part of the year whenever the need for generating supplementary employment is felt, preferably during the lean agricultural season but could continue during the busy agricultural period too, if required. A maximum of 10 per cent of the annual allocation can be used for incurring expenditure on maintenance of such assets at the district/gram panchayat levels which have been created under the erstwhile programme of NREP/RLEGP or have been created under JRY and have not to be taken over by a department of the State Government. 2.7.7 There is earmarking of resources at the district level too but after deducting for administrative and maintenance costs, the funds available for sectoral works are untied. However, there is no sectoral earmarking of resources at the village panchayat level except that 15 per cent of the annual allocation must be spent on works directly beneficial to SCs/STs. The types of works, to be taken up under the village panchayats are to be based on the felt needs of the people. There js 30 per cent reservation for women. Sixty per cent of the total unit cost is to be spent on wages and 40 per cent on materials. Contractors and other intermediaries are not permitted in the execution of the works. Minimum wages, fixed by the State, are required to be paid. There are considerable inter- State variations in the minimum wage - rates, ranging from Rs. 13.70 to Rs.34.00 per day for unskilled work. These differences account for variations in the Statwise unit cost of generating one man-day of employment ranging from Rs.22.83 to Rs.56.67. While in the earlier wage-employment programmes, part of the wage payment had to be in kind, in terms of certain quantity of foodgrains, under the JRY this was made optional. Consequently, while in 1986-87 the offtake of foodgrains was as high as 22 lakh tonnes, in 1990-91 it was only 1.36 lakh tonnes. 2.7.8 The financial and physical performance during 1989-90 and 1990-91 are given below: 2.7.9 The assets created under JRY and the expenditure under each head is given in Appendix-4. Road construction was the primary activity accounting for a little less than 30 per cent of the expenditure while minor irrigation, housing, construction of school and community buildings, wells and social forestry were the other sectors where JRY funds flowed. The expenditure on housing and wells increased between 1989-90 and 1990-91, while that under social forestry declined. The earmarking for housing under Indira Awaas Yojana and for wells and the MWS would definitedly have contributed to this. Under the IAY, 8.6 lakh houses have been constructed and 2.6 lakh wells have been dug under MWS. These would have benefitted the scheduled castes and the scheduled tribes. 2,7.10 A concurrent evaluation has been initiated which will be completed by the end of the year. In the meantime, a quick evaluation of JRY has also been undertaken. Selected State level Employment Programmes Maharashtra Employment Guarantee Scheme (EGS) 2.8.1 The Maharashtra Employment Guarantee Scheme (EGS) is a unique experiment which was started in 1971-72 for providing gainful employment in rural areas and "C" class muncipal areas. Guaranteed unskilled manual work is provided to adults who register themselves for work. Only productive works with unskilled wage component of more than 60% are taken up under the scheme. In the last two to three years, the EGS has been improved and modified. Under the "Shram Shakti Divare Gram Vikas", individual beneficiary's scheme will be taken up at the cost of the Government in the case of lands owned by small and marginal farmers, but for other categories 50 per cent of the expenditure will be borne by the concerned cultivator/beneficiary. Again, a horticulture programme with the target of covering a total of 10 lakh ha. during the Eighth Plan has been launched at Government cost on lands of SC/STs/small farmers/NTS. On other lands, Government and the beneficiaries bear the expenditure on materials in the ratio 75:25.

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( Rs. Lakhs ) Employment (lakh mandays ) Year 1989- 2,63,066.60 90 2,62,780.27 199091 Allocation Utilisation 2,45,853.76 2,60,002.82 Target 8757.25 9291.04 Achievement 8643.87 8745.59

2.8.2 The resources for the scheme are raised by the State Government by (i) levying a number of taxes/additional taxes/surcharges on profession, trade, motor vehicles, sales tax, irrigated agricultural land, land revenue and non-residential land and (ii) a contribution equal to the net collection of these levies made by the State Government. 2.8.3 The expenditure on me EGS has varied over the last six years from about Rs.288 crores in 1987-88 to an anticipated expenditure of Rs.200 crores in 1991-92 and employment generation from 18.95 crore mandays to an anticipated level of 7.50 crore mandays. Wages paid under the scheme are not lower than the minimum wages for unskilled agricultural labour. 2.8.4 The scheme has resulted in a significant reduction in the incidence of unemployment in rural areas. Average daily unemployment rates in rural Maharashtra have declined from 7.20% in 1977-78 to 3.17% in 1987-88. It would also have contributed to some extent towards the decline in rural poverty from 60.4 per cent in 1977-78 to 36.7 per cent in 1987.88. The scheme has also helped in keeping an upward pressure on wages in rural areas. The EGS has benefitted a large number of women too, with nearly 60 per cent of the workers on EGS sites being women. 2.8.5 In view of the significant positive impact of this scheme on employment, earnings and levels of living of rural people in Maharashtra, the experiment could well be a model for similar schemes in other States. Special Employment Programme of Gu-jarat 2.9.1 A special employment programme was introduced in Gujarat in 1991 under which two districts, Dang and Gandhinagar, were selected for achievement of zero unemployment and, in the remaining districts, additional employment opportunities will be created in the rural areas. A plan is being worked out with the objective of providing self-employment to those below poverty line, as well as opportunities for wage employment for those who seek it. Drought Prone Area Programme 2.10.1 The DPAP was launched in 1973 in arid and semi-arid areas with poor natural resource endowments. The objective was to promote more productive dryland agriculture by better soil and moisture conservation, more scientific use of water resources, afforestation, and livestock development through development of fodder and pasture resource, and in the long run to restore the ecological balance. The DPAP covers 615 blocks of 91 districts in 13 states. 2.10.2 Given the objectives of the programmes, the sectoral earmarking of funds are as follows: Sector 1. Land shaping and soil conservation 2. Afforestation and pasture development % allocation 30 25

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3. Water resource development 4. Other activities 5. Project administration

20 15 10

2.10.3 Under DPAP, funds are allocated on the basis of the number of blocks covered under the programme in each district at the rate of Rs. 15 lakhs per block, having a geographical area upto 500 sq. kms., Rs. 16.5 lakhs per block with an area between 500-1000 sq. kms., and Rs.18.5 lakhs for blocks with an area exceeding 1000 sq. kms. The allocations are shared between the Centre and the States on a 50:50 basis. The financial and physical achievements under the programme are given below. DPAP Achievements Seventh Plan Allocation (Rs. lakhs) Expenditure (Rs. lakhs) Physical Achievements in Key Sectors (00 hectares) Land Development Water Resources Forestry 46276.0 46185.91 1990-91 10223.0 9389.1

.
4774.8 2095.8 3741.66

.
1430.3 215.2 800.0

2.10.4 The Programme Evaluation Organisation of the Planning Commission has been entrusted with the task of evaluating the DPAP. These programmes have been running for many years and there is no evidence that drought -proofing has been achieved in any of the DPAP blocks. Yet there are cases where voluntary effort has succeeded in achieving this objective at a micro-level. A more concerted and coordinated effort would be required with greater use of scientific data, detailed working of cost norms for different activities and efficient planning along micro watershed lines. Emphasis is laid on training of project staff at the district/watershed level for preparation of plans and creating awareness among the people of the project areas. Stress is also laid on the need for developing effective liaison between agricultural research agencies and implementing agencies for effective transfer of technology. To ensure participation of people in planning and implementation of the programme, various measures have been taken, such as preparation of watershed development plan with the help of the people in the watershed itself under the guidance of technical experts, and adequate local representation in the Watershed Development Committee set up for implementation of the project. In the Eighth Plan renewed thrust along these lines will be given to the DPAP. Land Reforms 2.11.1 The land reforms policy has consisted of the following:

a. Abolition of intermediaries; b. Tenancy reforms with security to actual cultivators; c. Redistribution of surplus ceiling land; d. Consolidation of holdings; and e. Updating of land records.

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2.11.2 In the first stage of the programme there was, in the early fifties, the abolition of 'Zamindari', which covered 40% of the land area of the country benefitting 20 million cultivators. Fifteen lakh areas of wasteland were also vested in the State. In the process of implementing this measure, old Zamindars succeeded in retaining large tracts for self-cultivation. 2.11.3 There are tenancy laws in all the States except Nagaland, Meghalaya and Mizoram. They provide for conferment of ownership on the tenant by the State, acquisition of ownership by tenants on payment of reasonable compensation, security of tenure and fixation of fair rent. Certain categories such as widows, members of armed forces, minors, etc. are treated specially under these laws. In certain other cases, provision is also made for limited right of resumption. However, the implementation of these laws in States has been quite varied. West Bengal, Karnataka and Kerala have achieved more success than the other States. In West Bengal, 14 lakh share- croppers have been recorded under the 'Operation Barga'. Karnataka set up land tribunals to settle tenancy issues and these decided in favour of 3,00,000 tenants involving 11 lakh acres of land. In Kerala, through the tenants' association, applications of 24 lakh tenants for conferment of ownership were accepted. However, on the whole, tenancy reforms have not achieved the desired results as the incidence of informal oral or concealed tenancies is very high. In fact, it was envisaged in the Sixth Plan that legislative measures to confer ownership rights to tenants would be introduced in all States by 1981-82. This is still an issue that has to be tackled. 2.11.4 Ceilings legislation were enacted 1?v all the. States except Goa and the f^orth East region in accordance with the National guidelines of 1972. However, success has been limited due to poor enforcement. Of the 72.2 lakhs acres of land declared surplus, 46.5 lakh acres had been distributed by the end of the Seventh Plan and 25.7 lakh acres are still to be distributed. 2.11.5 Consolidation of holdings has made progress in some States while in others it is yet to make a beginning. Fifteen States have passed laws for consolidation of holdings. Those not having laws are Andhra Pradesh (in select areas ofAndhra Pradesh), Tamil Nadu, Kerala, Pon-dichery and the NorthEastern States. Tenants, share croppers and small landowners, have a fear that consolidation favours the larger farmers. So far, about 1494 lakh acres have been covered. 2.11.6 The allotees of surplus ceiling land require assured access to inputs. This is being done under a scheme wherein Rs.2500/- per hectare are provided for land development, purchase of inputs and for meeting other needs. States have been asked to make 40% allotment of surplus land to women and the remaining in joint names of husbands and wives. 2.11.7 The Centrally Sponsored Scheme for the strengthening of revenue administration and updating of land records was introduced during the Seventh Plan. Under this scheme, by the end of the Seventh Plan Rs.25.57 crores have been allocated to 29 States and Union Territories for purchase of equipment and strengthening of training infrastructure. 2.11.8 Nineteen pilot projects for computerisation of land records have been taken up, one in each major State. These are fully financed by the Central government at the rate of Rs.25 lakhs each. The project envisages computerisation of the record of rights in the first stage, and both input and output will be in the local language. Computers are being installed at the Tehsil and district headquarters, with the objective of online updating and making available a copy of the record of rights to cultivators on demand. The project is nearing completion in Morena district of Madhya Pradesh and Dungerpur of Rajast-han. The progress in other States needs to be expedited. Development Administration 2.11.9 During the Seventh Plan, the various rural development programmes were planned and implemented by a single agency at the district level called the District Rural Development Agency (DRDA). However, at the block level there was an attempt to return to the earlier community development pattern. But this was not easy, as the BDO had lost effective control over the Extension Officers who were

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functioning under their own departmental heirarchies. Also, there had been a tremendous increase in the volume of work and in the funds flowing at the block level. As against Rs. 17 lakh per year in the sixties, it became Rs. 1 crore per block per year. This put an enormous burden on the administrative system. 2.11.10 A Committee was set up to review the existing administrative arrangements for rural development, which submitted its report in 1985. It reemphasised the need for decentralised planning at the district level and below. It opined that where Zila Parishads were in existence rural development programmes should be transferred to them. This would ensure participation of local representatives in planning and they in turn would reflect the needs and aspirations of the local people. Of course, they would also be accoutable to the people they represent. In States where Zila Parishads are not in existence, the setting up of District Development Councils with Government officers as the Chief Executives was suggested. In either case, it was envisaged that planning and implementation of sectoral activities would be decentralised and integrated into a unified activity, with horizontal coordination at the district level. Similarly, at the block level too, an integrated area plan was imperative, based on availability of local skills and resources. However, no uniform pattern was adopted across States. In 1989-90, the introduction of the Jawahar Rozgar Yojana, wherein it was stipulated that the funds would be placed at the disposal of the village panchay-ats, marked a shift towards democratic decentralisation, with certain funds and powers vested in the gram panchayats for development. Panchayati Raj 2.12.1 Panchayati Raj Institutions are in existence in almost all the States and UTs but with considerable variations in their structure, mode of election, etc. In 14 States/UTs, the three-tier system exists, while four States have tw6;tier and nine states/UTs have one-tier system. In Nagaland, Arunachal Pradesh, Meghalaya, Mizoram, a large part of Manipur and some other hilly areas of North-Eastern States, these institutions are established in accordance with the traditions and customs of the village. At the end of the Seventh Plan, there were 2,17,300 Gram Panchayats, 4525 block Panchayati Samities and 330 Zila Parishads in the country. The tenure of the elected bodies is between 3 and 5 years. 2.12.2 However, Panchayati Raj Institutions suffer from inadequate resources, both financial and technical. In most of the States, they are not entrusted with enough powers and financial responsibilities. With a view to strengthening the Panchayati Raj Institutions and making them a vibrant instrument of local self-Government, a process of grassroot level consultation was initiated towards the end of the Seventh Plan period. For the first time, Panchayati Raj Sammalens were held in the different regions during 1989 wherein delegates comprising Sarpanches, Ta-luka/Block Panchayati Samities President, Chairman of Zila Parishad and Chariman of Muncipal Committees/Town Area Committees and Notified Area Committees participated. The main objective is to make these institutions strong, reflecting the felt needs of the people. 2.12.3 To revitalise the Panchayats, a Constitution Amendment Bill (Constitution 72nd Amendment Bill, 1991) was introduced in Parliament in 1991. The Constitution Amendment Bill itself provides for, interalia, a 'Gram Sab-ha' in each village, constitution ofpanchayats at village and other level or levels, direct elections in all States to Panchayats at the village level and intermediate levels, reservation for scheduled castes and the scheduled tribes in proportion to their population and reservation of not less than one-third of the seats for women, fixing tenure of five years for local authorities, and holding elections within a period of six months in the event of supersession of any such authority. The State legislatures are required to devolve powers and responsibilities on the panchayats for preparation of plans for economic development and social justice and for implementation of development schemes. Grants-in-aid to panchayats from consolidated fund of the State as also conferment of powers for levy of taxes, duties, tolls and fees are provided for. Further, it envisaged the setting up of a Finance Commission within one year of the Amendment Bill and, thereafter, every five years to review the financial position of local authorities. While the Bill has been introduced in Parliament, it is yet to be debated and passed. Once enacted, democratic decentralisation will be achieved through the Panchayati Raj Institutions.

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Voluntary Action 2.13.1 Recognising the important role of voluntary agencies' in accelerating the process of social and economic development, the Seventh Plan placed a great deal of emphasis on people's participation and voluntary action in rural development. The role of voluntary agencies has been defined as providing a basis for innovation with new approaches towards integrated development, ensuring feed-back regarding impact of various programmes and securing the involvement of local communities, particularly, those below the poverty line. The need for a cadre of trained animators and social organisers was recognised and a massive programme for training the identified persons was prepared with the help of establishing Voluntatry Organisations. 2.13.2 Further, the scheme of organisation of beneficiaries of anti-poverty programmes which was undertaken on a pilot -basis for two years from 1986-87 was continued during the Seventh Plan period. This scheme was intended to increase the awareness and strengthen the bargaining position of the beneficiaries of anti-poverty programmes so as to help them get the maximum benefits from the programmes meant for their economic uplift. This was to be done through awareness generation camps, which were organised with the assistance of voluntary organisations. 2.13.3 At the Central level, the Council for Advancement of People's Action and Rural Technology (CAPART) is the agency for providing and assisting voluntary action in the area of rural development. Its funds comprises mainly grants from the Government of India. Programmes of the Ministry of Rural Development including, IRDP, JRY, DWCRA, TRYSEM, Organisation of beneficiaries, Accelerated rural water supply. Central rural sanitation programme etc. are implemented by. voluntary agencies through the assistance of CAPART. In addition, CAPART has takeifthe initiatives in promoting a variety of activities for transfer of technology, people's participation, development of markets for products of rural enterprises and promotion of other developmental activities and delivery systems in the nongovernment sector. Eighth Plan Approach Special Employment Programmes 2.14.1 Elimination of poverty continues to be a major concern of development planning. Expansion of employment opportunities, augmentation of productivity and income levels of both the underemployed and employed poor would be the main instrument for achieving this objective during the Eighth Plan. However, even an employment oriented growth strategy will achieve this goal only in the medium and long-term. In the meantime, short-term employment will have to be provided to the unemployed and underemployed, particularly among the poor and vulnerable sections, through the existing special employment programmes namely the IRDP and JRY. However, it must be recognised that while they meet the short-term objective of providing temporary work to the unemployed they must contribute to the creation of productive capacity of areas and/or individuals. This would be better achieved by a greater integration of the existing special employment programmes with other sectoral development programmes, which, in turn, would generate larger and more sustainable employment. 2.14.2 Given the enhanced outlay for \ rural development' in the Eighth Plan, it is necessary that resources are utilised for building up of rural infrastructure, which is an essential pre-requisite for a more sustained employment and development. All weather roads need to be given priority, particularly in tribal, hill and desert areas, where inaccessibility to markets and to information and input is a severe bottleneck. Minor irrigation works and water harvesting structures are vital in order to conserve the scarce water and schemes for soil conservation and social forestry would go a long way in reducing soil erosion and top soil water cup - off as well as wherever required school buildings and primary health centres and sub-centres need to be constructed. The demand for these would vary between regions and even districts. Hence, a certain degree of flexibility would have to be built into the programme, leaving the choice to the people at the local level based on their needs and priorities.

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2.14.3 In addition, the planning and implementation of the rural development programmes must enable greater self-help by the people and their participation in programmes through panchayati raj institutions, cooperatives and other self-managed institutions. This will mark a reduction in'the dependence on the present development administration for delivery. However, this should not be interpreted as a greater move towards 'privatisation' or leaving the rural poor to look after themselves. State intervention will have to continue, in fact, on an expanded scale so as to protect the poor and vulnerable sections from some of the burdens of structural adjustment. Viewed in this context, certain changes would be required in the broad strategy for rural development during the Eighth Plan. In addition, this may also necessitate the reworking of some of the earlier guidelines with respect to specific poverty alleviation programmes. 2.14.4 Experience indicates that while poverty alleviation programmes have been successful in providing a certain quantum of employment to people and have led to the creation of some durable assets in the village, there is a perception that the achievements have not been commensurate with the resources spent on them. Under the IRDP, the very fact that about half the number of beneficiaries have overdues raises doubts about their ability to come out of the debt syndrome. This, it is argued, is due to a low level of assistance which does not generate enough income to repay the loan and for subsistence. However, banks are reluctant to raise the credit limit because of scepticism regarding the repayment capacity of the target groups. It is estimated that about one-third of them do not even have the original asset that was given to them. The beneficiaries may be forced to sell the asset as they require the money. What is more, even those who have generated sufficient additional income to cross the poverty line may relapse into the category of poor, with additions to the family, loss of assets and non-viability of the activity chosen by him. ,2.14.5 Similarly, under the Jawahar Rozgajr Yojana, some employment is provided in the lean season and the supplementary incomes thus generated are critical for the survival of many poor families. But the wages earned under JRY are a very small proportion of the amount required to help him to cross the poverty line. Moreover, while some productive assets are created, which add to the infrastructural facilities available in a village their quality could be improved. Also, often they do not reflect the priorities of the local people but of the panchayat functionaries and their maintenance is lacking. 2.14.6 Under the JRY any additional allocation must be linked to certain backward districts/ blocks, with an element of guarantee of at least 90-100 days of employment per person as under the Maharashtra Employment Guarantee Programme. Only then will it provide the s safety net' for the poor unemployed who may find it difficult to subsist in lean seasons. Providing employment of only 15-25 days per person is grossly inadequate. There is no doubt that a wage-employment programme like the JRY requires to be better targetted. A quick evaluation of the JRY conducted by the Programme Evaluation Organisation supports these observations. The survey shows that on an average, about 15 days of employment was generated per person in 1990-91. At an average wage-rate of Rs. 20.00 to Rs. 25.00, this would yield a supplementary income per person of about Rs. 300 -400 per anum: This is rather meagre in the context of the poverty line of Rs.6,400 during the Seventh Plan, which has been revised upwards for the Eighth Plan. Also, wage- material ratio of 60 : 40 was not sustainable, as the rising material costs meant more capital for creating durable assets. However, the beneficiaries were happy with the assets created, though their maintenance was somewhat lacking. 2.14.7 These findings, and discussions with implementing agencies and State Governments lead to the consensus that there is a need for integrating the various anti-poverty programmes with the sectoral programmes in a specified area so as to ensure a sustainable increase in employment and income of the rural poor and the infrastructural and environmental development of the area. 2.14.8 Also, certain relaxation and changes in the stipulation and guidelines incorporated both in the IRDP and JRY would be required to make them more effective. Under the JRY a certain degree of flexibility with regard to the earmarking of funds must be introduced. Clearly, priority should be given to soil and water conservation, waste-land development and social forestry followed by rural roads and rural housing. No doubt, inter-se importance will vary from place to place. The present system of earmarking a certain quantum for Million Wells Scheme and for housing under Indira Awaas Yojana would have to be relaxed, since several State Governments are not in a position to fulfil these stipulations. Furthermore, given the paucity of resources, one would perhaps have to concentrate the resources under the JRY to

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the more backward districts so as to reach the poorest. This would require an assessment of the extent and nature of unemployment and underemployment and the local level requirements at the village level. Even though a large proportion of the JRY funds flow directly to the village, activities undertaken should be such as to fulfill local needs within the overall framework of the village plan. 2.14.9 Under the IRDP, assistance is given to individual beneficiaries for acquisition of an asset. While one-third is in the form of subsidy, two-thirds are in the form of bank loans. Hence, the banks need to assess the economic viability of an asset before giving assistance. However, the entire focus on targetting makes such an exercise futile. Actually, the matter should be viewed not from the supply side but from the demand side i.e. identifying activities which are appropriate, given the skills of the beneficiaries, the infrastructure and the linkages available. Wherever necessary skills are not of the required standard, this upgradation should be facilitated under TRYSEM. In other words, IRDP needs to be viewed as a credit based self-employment programme with an element of subsidy rather than as a programme based on subsidy supplemented by bank credit. 2.14.10 Under DWCRA, the results have not been quite satisfactory. While the idea of organising women into groups to take up activities which yield supplementary income is a sound one it has suffered on account of lack of adequate investment and selection of unviable activities. Therefore, it may be worthwhile to encourage* formation of thrift and credit societies which will be entitled to receive matching contributions from the Government. This is already being attempted in some States. There is also an urgent need for conscientisation of rural women through activists, social workers and voluntary agencies. Women need to be encouraged to form cooperatives or institutions of self-employed women in order to become viable groups. In addition, child care, reduction in drudgery and organisation of women beneficiaries need to be pursued more vigorously. Marketing of products made by women's groups is an important aspect and State Governments must make provisions for purchase of their products by various Government departments, emporia, and through melas and fairs. 2.14.11 Upgradation of skills and technology need to be given a special thrust with the aim of generating employment in new areas where demand is expanding. The target for TRYSEM trainees has been doubled from about 20 to 40 lakhs per annum. However, in order that those trained could find employment it is necessary that (a) training needs are assessed in terms of activities which can be either started under ERDP or in such fields where there is likely to be an increase of wage employment opportunities, (b) the quality of training should be such as to bring about improvement in the skill endowment of the trainees, (c) groups of persons can be organised in a particular trade or productive venture and these can be brought together for training. Integration of Poverty Alleviation Programmes for Rural Development 2.15.1 The programmes themselves need not be changed but the manner of implementing them would need some modification. A high degree of convergence can be attempted in a few districts on a pilot basis by an integration of the poverty alleviation programmes, the area development programmes and sectoral schemes. Taking a district as a unit of planning, a district plan would need to be prepared, taking into account the physical and human endowments of that area, the felt needs of the people and the funds available . Projects and schemes would be selected for implementation based on these. Using scientific methods now available, the geographical area of the district would have to be mapped from photogrammetry and satellite data. The maps would then be subjected to analysis for identification of water harvesting structures such as aalabands, gulley plugs, infiltration galleries and terraces. Such a strategy would ensure that soil erosion would be minimised and surface run off is virtually eliminated, with conservation of every drop of rainfall. This district map would then have to be disaggregated at the village level. Viable activities particularly in agriculture and allied sectors including animal husbandry, pisciculture, horticulture forestry and agro-processing would have to be selected. Village and small industries with potential can also be identified for priority. In addition, development of infrastructural support and forward and backward linkages will have to be ensured which are essential prerequisites for the viability of the selected activities. Emphasis on human resource development would have to be placed, as productivity depends both on natural resources and on the level of human resource

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development. Therefore, it will be necessary to integrate the social aspects of development including education, health and access to safe drinking water with the plan for economic development. Briefly, therefore, the strategy would consist of creating the right environment for success of family plans rather than the present practice of farming them out and assuming that the infrastructure would look after itself. 2.15.2 For planning and implementation of the district plan, the responsibility would vest in the Zilla Parisahds where they exist and/or in the DRDAs. However, this should not preclude the involvement of people's representatives both elected and non-elected and voluntary organisations from taking on the planning and implementation of various schemes and programmes. In fact, it would be ideal to form committees involving representatives from both the Government and non-Governmental organisations. While surveys have been conducted in every village to identify those living below the poverty line, it is also important to have a registration of the unemployed and underemployed who are willing and able to work. This is essential in order to have an idea of the number of people to be covered under the various anti-poverty programmes. 2.15.3 The above are the broad parameters of 4 the Integrated Rural Development approach the details of which would vary from place to place. It-is proposed in the Eighth Plan that one district per State is selected for the implementation of this programme in the manner described earlier.tions he set up at the central level to provide a forum for them. 2.16.6 In the Eighth Plan, a greater emphasis will be put on th role of voluntary organisations in rural development. A nation-wide network of NGOs will be created. In order to faciltate the working of this network, three schemes relating to She creation/replication/ multiplication and consultancy development have been worked out by the Planning Commission.Efforts will be made to evolve a system for providing one window service to NGOs wrking in the area of integrated development. Land Reforms 2.16.7 Land is still the single most important asset in rural India and given the present state of agricultural technology even a small farm can be viable, both in terms of employment and income of a family. The need for land reforms was recognised at the time of independence and has been reiterated in the successive Five Year Plans. The Seventh Plan enunciated land reforms to be an intrinsic part of the antipoverty strategy. 2.16.8 The importance of land reforms continues to be significant. Its main tenets are abolition of intermediaries, security of tenure for tenant -cultivators, redistribution of land by imposition of a ceiling on agricultural holdings, consolidation ofholdingc and updating of land records. 2.16.9 The Eighth Plan would therefore address itself to the factors that have come in the way of realising the goals of land reforms policy. First, it would aim at ensuring that an atmosphere is created whereby the actual cultivators are made aware of their rights and enabled to claim their benefits. Secondly, it would encourage steps to be taken for early detection of surplus lands. Thirdly, it would be necessary to ensure that the newly acquired lands are brought under profitable agronomic practices, thus meeting the twin objectives of poverty alleviation and output growth. The management of land records and the skills and capabilities of the lower level official machinery would need to be given the necessary support of resources and modernisation so that they help, rather than hinder, the evolution of an equitable agrarian order. 2.16.10 The objectives of land reforms can briefly be stated as follows:

1. Restructuring of agrarian relations to achieve egalitarian social structure; 2. Elimination of exploitation in land relations;

136 3. Actualisation of the goal of "land t,o the tiller"; 4. Improvement of socio-economic conditions of the rural poor by widening their land base; 5. Increasing agricutural productivity and production; 6. Facilitating land-based development of rural poor; and 7. Infusion of a greater measures of equality in local institutions.
2.16.11 On the question of tenancy, there are three aspects which need to be examined in some detail. First, the need to inculcate among tenants a degree of solidarity so that they can, at a time, counter the dominance of the landed classes as well as make the revenue administration accountable to themselves. Secondly, the mechanisms for transfer of title to the actual cultivator will require to be professional and sensitive. The third, and perhaps the most important aspect, is to make the gains real by getting from the land the quickest returns via access to a package of modem input. Measures would be taken to make real the gains of tenancy laws by restricting the right to resumption; tackle absentee landlordism by defining personal cultivation more precisely and reviewing the provisions for regulating voluntary surrender. The National Commission on Revitalisation of Revenue Administration will take up all issues relating to land record management in the States. Organisations of tenants and sharecroppers will engine detection of informal and concealed tenancies, bring on record the tenants and share croppers. 2.16.12 On the question of land ceilings, the two aspects needing urgent attention ay; a) detection of surplus lands, hitherto unavailable because of recourse to evasive methods like benami transfers, partitions, fraud, collusion with official machinery etc., and b) ensuring that the allottees retain possession and there is severe penalty for dispossession. The lacunae in the laws will have to be removed so as to help resolve both these issues. Suitable creative options need to be built into the law so that once the land is declared surplus, unless mala fide is established against the official machinery concerned, the land would vest in the Government, and it would be open to the Courts to award only compensation to the landlord. Another option is to set up Land Tribunals under Article 323-B to deal with litigation and elimiate court jurisdiction. Some of the policy interventions will be to reduce the exemptions and review the provisions for major sons to have independent shares. The existing limits will be reviewed. 2.16.13 In respect of consolidation of holdings, two aspects that need attention are; a) The smaller farmers harbour strong apprehensions about getting a raw deal in the process of exchanging parcels of land towards the consolida-tion of holdings and b) The process of breaking up of holdings is a continuous one and a one-time settlement does not really solve the problem. The solution, will therefore lie in making the farmer recognise that it is advantageous to share income from land rather than the land itself. The modality of bringing these aims into the land-related customs and practices will be more effective than the passing of laws. 2.16.14 The common property resources have traditionally been a source of economic sustenance for the weaker sections of society. Measures will be taken to survey their extent so that the encroachments by more influential sections can be removed. This is an area where voluntary organisations and local democratic institutions will be associated with the administrative machinery to restore to the panchayat/commu-nity the ownership of common property resources so that further encroachments do not take place. Efforts will be made to develop these resources so that the option is once again open for the poorer sections to exploit for supplementing their income. 2.16.15 In order to create a reward system for the better performing States in these matters, it is proposed to set up an index of performance with regard to land reforms. Based on this indicator it will be possible to provide a portion of the general pool of Central Assistance to the states.

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9th Five Year Plan (Vol-2)

2.1 Poverty Alleviation in Rural India : Programmes and Strategy 2.1.1 Poverty eradication is one of the major objectives of planned development. The magnitude of the problem is still quite staggering. Thirty six per cent of the Indian population was below poverty line (BPL) in 1993-94, the latest year for which the data are available and the absolute number of poor was 320 million, out of which 244 million (37 per cent of the rural population) lived in rural areas. The incidence of poverty declined from 54.9 per cent in 1973-74 to 36 per cent in 1993-94. But the absolute number of poor did not decline much over this period of 20 years. There were 321 million poor in 1973-74 and 320 million in 1993-94; in the rural areas the corresponding numbers were 261 million and 244 million. 2.1.2 The main determinants of poverty are (i) lack of income and purchasing power attributable to lack of productive employment and considerable underemployment and not to lack of employment per se; (ii) a continuous increase in the price of food, especially foodgrains which account for 70-80 per cent of the consumption basket; and (iii) inadequacy of social infrastructure, affecting the quality of life of the people and their employability. 2.1.3 Economic growth is important. Economic growth creates more resources and has the potential of creating more space for the involvement of the poor. But the involvement of the poor depends on the sources of growth and the nature of growth. If the growth is sourced upon those sectors of the economy or those activities which have a natural tendency to involve the poor in their expansion, such growth helps poverty eradication. Therefore, it is important to source a large part of economic growth in agriculture, in rural non-agricultural activities and in productive expansion of the informal sector which all have high employment elasticities, as well as in an export strategy based on labour intensive exports. 2.1.4 The Government recognises that high growth of incomes is by itself not enough to improve the quality of life of the poor. Unless all the citizens of the country, and most particularly the poor, have certain basic minimum services, their living conditions cannot improve. These minimum services include among other things literacy education, primary health care, safe drinking water and nutritional security. The Government had convened a meeting of Chief Ministers to identify such basic minimum services and a list of seven services had unanimously been agreed upon. These seven services are safe drinking water, primary health facilities, universal primary education, nutrition to school and pre- school children, shelter for the poor, road connectivity for all villages and habitations, and the Public Distribution System (PDS) with a focus on the poor. The Ninth Plan lays special emphasis on these seven basic minimum services and will make all efforts to achieve a minimum level of satisfaction in providing these in partnership with the State Governments and the Panchayati Raj Institutions (PRIs). 2.1.5 Direct poverty alleviation programmes are important and will continue on an expanded scale in the Ninth Plan. But these programmes would be oriented towards strengthening the productive potential of the economy and providing more opportunities for involving the poor in the economic process. Broadly, there would be schemes for income generation through supplementary employment, for the welfare of the poor in rural/urban areas and for a targeted PDS system to ensure that the poor have access to foodgrains at prices they can afford. In this chapter, both rural and urban poverty alleviation programmes besides the Targeted Public Distribution System (TPDS) will be discussed in some detail. 2.1.6 Poverty can effectively be eradicated only when the poor start contributing to the growth by their active involvement in the growth process. Implementation of the programmes should be increasingly based on approaches and methods which involve the poor themselves in the process of poverty eradication and economic growth. This is possible through a process of social mobilisation, encouraging participatory approaches and institutions and empowerment of the poor. In this the PRIs, the voluntary organisations and community based Self-Help Groups will be more closely involved.

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Rural Poverty Alleviation Self-Employment Programmes Integrated Rural Development Programme (IRDP) & Allied Programmes 2.1.7 The Integrated Rural Development Programme (IRDP) aims at providing self-employment to the rural poor through acquisition of productive assets or appropriate skills which would generate additional income on a sustained basis to enable them to cross the poverty line. Assistance is provided in the form of subsidy and bank credit. The target group consists largely of small and marginal farmers, agricultural labourers and rural artisans living below the poverty line. The pattern of subsidy is 25 per cent for small farmers, 33-1/3 per cent for marginal farmers, agricultural labourers and rural artisans and 50 per cent for Scheduled Castes/Scheduled Tribes families and physically handicapped persons. The ceiling for subsidy is Rs.6000/- for Scheduled Castes/Scheduled Tribes families and the physically handicapped; for others, it is Rs.4000/- in non-DPAP/non-DDP areas and Rs.5000/- in DPAP and DDP areas. Within the target group, there is an assured coverage of 50 per cent for Scheduled Castes/Scheduled Tribes, 40 per cent for women and 3 per cent for the physically handicapped. Priority in assistance is also given to the families belonging to the assignees of ceiling surplus land, Green Card Holders covered under the Family Welfare Programme and freed bonded labourers. 2.1.8 IRDP is a Centrally Sponsored Scheme which is in operation in all the blocks of the country since 1980. Under this scheme Central funds are allocated to States on the basis of proportion of rural poor in a State to the total rural poor in the country. 2.1.9 Since the inception of the programme till 1996-97, 50.99 million families have been covered under IRDP at an expenditure of Rs.11434.27 crore. The total investment during this period has been Rs.28047.65 crore which includes a subsidy component of Rs.9669.97 crore and a credit disbursement of Rs.18377.68 crore. Of the total families assisted under this programme 44.75 per cent were Scheduled Castes/Scheduled Tribes and 27.07 per cent women. 2.1.10 During the Eighth Five Year Plan the total allocation (Centre and State) under IRDP was Rs.5048.29 crore and the total investment amounted to Rs.11541.06 crore. In quantitative numbers, 10.82 million families were covered under IRDP against the initial target of 12.6 million families fixed for the entire Eighth Plan period. However, from 1995-96 physical targeting under the programme was abolished with the focus shifting to financial targets and qualitative parameters. Of the families covered 50.06 per cent were Scheduled Castes/Scheduled Tribes and 33.59 per cent women. The coverage of women was still lower than the target of 40 per cent. 2.1.11 The IRDP has been successful in providing incremental income to the poor families, but in most cases the incremental income has not been adequate to enable the beneficiaries to cross the poverty line on a sustained basis mainly because of a low per family investment. The results of the last Concurrent Evaluation (September 1992 - August 1993) revealed that of the total beneficiaries assisted under the programme, 15.96 per cent of the old beneficiary families could cross the revised poverty line of Rs.11,000 (at 1991-92 prices), while 54.4 per cent of the families were able to cross the old poverty line of Rs.6,400 per annum. But, the analysis by income group of families revealed that in case of those within initial income of Rs.8501 11,000, 48.22% of beneficiary families could cross the poverty line of Rs.11,000 which is quite encouraging. The analysis of the family income of the beneficiaries reveal that a large percentage (57.34%) of the families had annual family income from assets of more than Rs.2000. The annual income from the asset was more than Rs.6000 in 29% cases. 2.1.12 The major constraint in the implementation of IRDP has been sub-critical investments which have adversely affected the Incremental Capital Output Ratio (ICOR) levels and thereby undermined the viability of the projects. Though the average per family investment has been rising steadily in monetary

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terms, in real terms the increase has been inadequate and in some cases sub-critical due to the inflationary trends and the increase in the cost of assets. 2.1.13 At the instance of the Ministry of Rural Development (now renamed as Ministry of Rural Areas & Employment) , the Reserve Bank of India appointed in 1993, a High Powered Committee under the Chairmanship of Dr. D.R. Mehta, Deputy Governor of Reserve Bank of India to make an indepth study of IRDP and recommend suitable measures for its improvement. The Committee was asked to review among other factors, the process of selection of appropriate income generating assets, credit structure, recovery of loans, and procedural matters in respect of obtaining loans, and efficacy of existing administrative structures of the District Rural Development Agencies (DRDAs). In consonance with the recommendations of the High Powered Committee, the new initiatives taken by Government under IRDP in the Eighth Plan included (a) targeting the segment of literate unemployed youth below the poverty line for IRDP activities by giving them subsidy upto Rs.7500 or 50 per cent of the project cost (whichever is lower) (b) promotion of group activities through enhancement of ceiling on subsidy to Rs.1.25 lakh or 50 per cent of the project cost (whichever is lower) for all group ventures involving at least 5 members (c) back-ending of subsidy to prevent leakages in subsidy administration (d) shifting the emphasis to financial targets and qualitative parameters from a perfunctory physical coverage of families and (e) enhancing the limit of allocation to programme infrastructure from 10 per cent to 20 per cent in all the States and 25 per cent in the North Eastern States. 2.1.14 Among the other steps taken to enhance the efficacy of the programme are abolition of the cut of line to enable all families below the poverty line to be assisted under the programme, targeting the investment per family at progressively higher levels each year, extension of the family credit plan to 213 districts of the country, enhancing the ceiling limit of collateral free loans to a uniform limit of Rs.50,000 with a view to easing the constraints faced by poor beneficiaries while taking loans from the banks, extension of the cash disbursement scheme to 50 per cent blocks in the country, decentralisation of the sanctioning powers for infrastructural projects below Rs.25 lakh and entrusting the banks with the task of identification of beneficiaries in about 50 districts on a pilot basis. These interventions have had an impact on the average per family investment which rose from Rs.7889 in 1992-93 to Rs.15036 in 1996-97. 2.1.15 In pursuance of the High Powered Committees recommendation, for the first time in 1995-96 credit targets were fixed. There has been a continuous increase in the volume of credit mobilised by the banks during the successive years of the Eighth Plan period. Correspondingly, the subsidy credit ratio, which averaged 1:1.77 in the first three years of the Eighth Plan, rose to 1:1.96 in the fourth year and further to 1:2.17 in 1996-97. However, there are genuine reasons for the inability of the banks to meet the full credit requirements of IRDP beneficiaries. These include poor recovery of IRDP loans, lack of adequate rural banking infrastructure in certain areas and the weak financial performance of Regional Rural Banks and Cooperative banks. 2.1.16 There has been considerable diversification of IRDP activities since the inception of the programme. Initially, a majority of the beneficiaries under the programme subscribed to primary sector activities. In 1980-81 the sectoral composition of IRDP activities was heavily skewed towards the primary sector which had a sponsorship of 93.56 per cent, while the share of the secondary and tertiary sectors were 2.32 per cent and 4.12 per cent respectively. Over the years, the share of the primary sector has come down considerably and is currently around 55 per cent, while the shares of the secondary and tertiary sectors have increased proportionately to 15 per cent and 30 per cent respectively. 2.1.17 Inadequate development of infrastructure and insufficient forward and backward linkages and market facilities have been an area of concern under IRDP. In an attempt at filling up the critical infrastructural gaps and strengthening the linkages and marketing facilities, the allocation under IRDP towards the development of programme infrastructure was increased from 10 per cent to 20 per cent in all the States and to 25 per cent in the North Eastern States. Decentralisation in the sanctioning powers for infrastructural projects had already been given effect to in 1994-95. However, despite this enhanced provision for programme infrastructure under IRDP and the relaxation in sanctioning norms, the actual expenditure on infrastructural development was a mere 5 per cent to 7 per cent of the total allocation

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under the programme at the all-India level. There is, therefore, a critical need to prepare a perspective infrastructural plan at the district and block level and to ensure that the funds earmarked for infrastructural development under IRDP are closely monitored and not diverted elsewhere. 2.1.18 The salient features of IRDP performance during the Eighth Plan are given in Annexure-I. Training of Rural Youth for Self-Employment (TRYSEM) 2.1.19 The Scheme of TRYSEM, a facilitating component of IRDP, aims at providing basic technical and entrepreneurial skills to the rural poor in the age group of 18 to 35 years to enable them to take up income generating activities. The Eighth Plan had emphasised the importance of a proper assessment of the training needs of the rural youth in relation to self and wage-employment opportunities, quality of training and group training. During the Eighth Plan, 15.28 lakh youth were trained under TRYSEM, of whom 34.16 per cent took up self-employment and 15.05 per cent wage-employment; while the remaining 50.79 per cent remained unemployed. (Performance details are given at Annexure-II.) 2.1.20 With a view to strengthening this programme, several initiatives were taken in the Eighth Plan which include, among others, an increase in the stipend and honorarium rates; emphasis on professionalised training through the established and recognised institutes like ITIs, Community Polytechnics, Krishi Vigyan Kendras etc., exploring the possibilities of setting up production groups from amongst TRYSEM trainees for undertaking ancillary activities like manufacture and assembly of modern items of production; utilisation of TRYSEM infrastructure funds for the strengthening of Nirmithi Kendras (Rural Building Centres) sponsored by HUDCO for training of youth under TRYSEM in the trades of low cost housing and the setting up of mini-ITIs at the block level to strengthen the training infrastructure for the rural youth. 2.1.21 The TRYSEM programme was evaluated for the first time in a Quick Study (June to August 1993) conducted through independent research institutes/organisations. The main findings of the evaluation study are as under :

i. ii.

Of the total sample districts, area skill surveys were not carried out in 92 per cent of the districts to assess the potential skill requirements. This resulted in a mismatch of job skills in 53.3 per cent of the sample districts. Of the total number of beneficiaries, who got training under TRYSEM, roughly 47.19 per cent were unemployed after the training and 32.54 per cent took up self-employment after training of whom 12.41 per cent took up employment in trades other than those in which they were trained. A majority of the beneficiaries i.e. 66.52 per cent cited lack of funds as a major reason for not taking up self-employment independently after the training. A major proportion of TRYSEM trainees i.e. 53.57 per cent did not apply for loan under IRDP. Of the total beneficiaries, who applied for loan, only about 50 per cent were given assistance under IRDP upon completion of training. Roughly, 73.38 per cent of the beneficiaries could derive an average monthly turnover upto Rs.1000 as a result of self-employment taken up by them after the training. 63 per cent beneficiaries felt no improvement in their socio-economic conditions as a result of TRYSEM training.

iii.

iv.

v.

vi.

2.1.22 There has been a poor convergence of TRYSEM with IRDP which has also been reflected in the Fourth Round of the Concurrent Evaluation of IRDP (1992-93). Only 3.88 per cent of the IRDP beneficiaries had received training under TRYSEM. It was also observed that the rural youth trained under TRYSEM were only interested in the stipendiary benefits they received during the course of training

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and therefore, had not utilised the knowledge gained under the programme for furthering their selfemployment prospects. In practice, therefore, such expenditure on training had become infructuous because of an absence of linkages between the employment opportunities available and training provided. Clearly, TRYSEM has been a weak link in the overall strategy for self-employment in rural areas. Supply of Improved Toolkits to Rural Artisans (SITRA) 2.1.23 Launched in July 1992, as a sub-scheme of IRDP in selected districts, this scheme has since been extended to all the districts of the country. Under the scheme, a variety of crafts persons, except weavers, tailors, needle workers and beedi workers, are supplied with a kit of improved hand tools within a financial ceiling of Rs.2000, of which the artisans have to pay 10 per cent and the remaining 90 per cent is a subsidy from the Government of India. The supply of power driven tools, subject to a ceiling of Rs.4500, is also permitted under this scheme. Beyond this, any additional finance required by the artisans can be provided through loans under IRDP. The rural artisans are trained under TRYSEM for which an age relaxation has been provided to them. 2.1.24 Since the inception of this scheme in 1992-93 upto 1996-97, 6.10 lakh toolkits have been distributed to rural artisans at an expenditure of Rs.116.19 crore. (Performance details are given at Annexure-III.) Reports from the State Governments indicate that the scheme has been well received by rural artisans. The more popular crafts under this scheme are blacksmithy, carpentry, stone craft, leather work, pottery and cane & bamboo work. Prototypes of improved tools in these crafts have been developed by the National Small Industries Corporation (NSIC), Regional Design and Technical Development Centres under the Development Commissioner, Handicrafts and other organisations. The SITRA was evaluated by an independent research organisation, i.e. Development Alternatives, New Delhi, in two Districts of Uttar Pradesh, namely Agra and Aligarh. The findings of this study reaffirms the positive impact of SITRA. It also indicates that the income level of rural artisans have increased substantially with the use of improved tools. DEVELOPMENT OF WOMEN AND CHILDREN IN RURAL AREAS (DWCRA) 2.1.25 The special scheme for Development of Women and Children in Rural Areas (DWCRA) aims at strengthening the gender component of IRDP. It was started in the year 1982-83, on a pilot basis, in 50 districts and has now been extended to all the districts of the country. The details of the performance under DWCRA during the Eighth Plan are given at Annexure-IV. 2.1.26 DWCRA is directed at improving the living conditions of women and, thereby, of children through the provision of opportunities for self-employment and access to basic social services. The main strategy adopted under this programme is to facilitate access for poor women to employment, skill upgradation, training, credit and other support services so that the DWCRA women as a group can take up income generating activities for supplementing their incomes. It seeks to encourage collective action in the form of group activities which are known to work better and are more sustainable than the individual effort. It encourages the habit of thrift and credit among poor rural women to make them self-reliant. The programme also envisages that this target group would be the focus for convergence of other services like family welfare, health care, nutrition, education, child care, safe drinking water, sanitation and shelter to improve the welfare and quality of life of the family and the community. 2.1.27 Since the inception of the scheme till 1996-97, 1,87,918 DWCRA groups were formed at an expenditure of Rs.248.95 crore, covering 30,39,383 rural women. It was in the Eighth Plan that DWCRA received a fillip with the Government taking several initiatives to strengthen the programme. These include, among others, extending its coverage to all the districts of the country, increasing the revolving fund from Rs.15,000 to Rs.25,000, permitting the formation of smaller DWCRA groups in difficult terrain and remote areas, and permitting operation of joint accounts by the group organiser and another member of the group elected as treasurer of the group rather than the Gram Sevikas and the group organiser, so

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as to facilitate the DWCRA groups in managing their own affairs. The Child Care Activities (CCA) component was introduced in the DWCRA programme in 1995-96 with the objective of providing child care services for the children of DWCRA women. Similarly the Information, Education and Communication (IEC) component was introduced to generate an awareness among rural women about the development programmes being implemented for their upliftment and welfare. The Eighth Plan also saw the extension of the Community Based Convergent Services (CBCS), a component of DWCRA, to 141 districts of the country. DWCRA The Case of Andhra Pradesh Strategy adopted for formation of sustainable DWCRA groups had the following salient features : Formation of Thrift and Credit groups to develop group dynamics, cohesion and homogeneity among the members. Savings provided the entry point for poor women to come together through a Self-Help mechanism. Democratically managed groups with collective decision making. Sustainable income generating activities with access to credit under the Integrated Rural Development Programme (IRDP) and to training facilities. Total Literacy Campaign (TLC), Kalajatha, multimedia publicity campaign through All India Radio (AIR). Doordarshan and print media, involvement of youth leaders, mahila mandals, voluntary organisations and Government functionaries created awareness and contributed to the process of social mobilisation

2.1.28 In the implementation of DWCRA, some States like Andhra Pradesh, Kerala, Tripura and Gujarat have performed very well while in other States, the performance and impact of DWCRA has been relatively poor. In Andhra Pradesh, in particular, several successful DWCRA groups have been formed and this has led to the empowerment of women in decision making on various social aspects that impinge on their daily life. The range of activities pursued by these groups are also fairly diverse. Some have started mini banks and have, thereby, reduced their dependence on the money lenders. Other groups are managing lands taken on lease. Quite a few have formed mini transport companies, having acquired autos, LCVs etc. on bank loans. The success of this programme has been attributed to two major catalysts namely, adult literacy among women and its culmination into a womens movement and close involvement of the NGOs. There is a need to evolve an institutional mechanism for replicating the successful DWCRA groups throughout the country. PODUPULAKSHMI Pride of Nellore Women- a success story. As a sequel to the Total Literacy Campaign & anti-arrack agitation, `PODUPULAKSHMI (Podupu means saving, Lakshmi Goddess of Wealth) was started by two lakh women organised into 7000 small thrift groups of 20-30 members. They saved Rs.8.00 crore in four years. The district administration provided the `PODUPULAKSHMI movement with the initial support and acted as a facilitator. Volunteers, animators, trainers and instructors in the Total Literacy Campaign acted as PODUPULAKSHMI organisers. Once PODUPULAKSHMI groups reached a level of maturity, they converted themselves into DWCRA groups. This enabled them to access the revolving fund under DWCRA which was used by the groups to provide working capital to set up micro enterprises. The savings fund was used

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to meet emergency consumption needs. Today a wide variety of women centred activities are carried out by these groups. The ANM, the School Teacher, the Fair Price Shop Dealer, the Anganwadi Worker are all associated with PODUPULAKSHMI bringing about a convergence of basic services

2.1.29 Yet, in the implementation of DWCRA several shortcomings have also surfaced which has stymied its successful and effective execution in some States. Several groups have become defunct over time. The reasons for these include, among others, (a) improper selection of groups; (b) lack of homogeneity among the group members; (c) selection of non-viable economic activities which are mostly traditional and yield low income; (d) the linkages for supply of raw material and marketing of production are either deficient or not properly planned as a result of which DWCRA groups have become vulnerable to competition. The District Supply and Marketing Societies have been weak outlets for the sale of DWCRA products; (e) lack of institutional financial support, inadequate training, a non-professional approach and poor access to upgraded technological inputs have deprived DWCRA groups from diversifying into high value addition activities; and (f) inadequacy of staff and their insufficient training and motivation has also affected the overall implementation of the programme. These shortcomings would have to be suitably addressed for the successful implementation of the programme in the Ninth Plan. Wage Employment Programmes Jawahar Rozgar Yojana (JRY) 2.1.30 Rural poverty is inextricably linked with low productivity and unemployment. Hence, it is imperative to improve productivity and increase employment in rural areas. An employment-oriented growth strategy would achieve this goal only in the medium and long run. In the short run supplementary employment will have to be provided to the unemployed and underemployed, during the lean agricultural season. There are two major wage employment programmes namely the Jawahar Rozgar Yojana (JRY) and the Employment Assurance Scheme (EAS) presently in operation. 2.1.31 The JRY was launched as a Centrally Sponsored Schemes (CSS) on 1 st April, 1989 by merging the National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP). The main objective of the programme is the generation of additional gainful employment for unemployed and underemployed persons, both men and women, in the rural areas through the creation of rural economic infrastructure, community and social assets with the aim of improving the quality of life of the rural poor. 2.1.32 The resources under this scheme are allocated to the States/UTs on the basis of proportion of rural poor in the States/UTs to the total rural poor in the country. From the States to the districts, the allocation is made on an index of backwardness which is based on the proportion of rural Scheduled Castes/Scheduled Tribes population in the district to total Scheduled Castes/Scheduled Tribes population in the State and an inverse of agricultural production per agricultural worker in that district, in equal weights. The funds are devolved to the village panchayats by giving due weightage to the Scheduled Castes/Scheduled Tribes population and the total population of the village panchayat. Until recently, these funds were distributed between the village panchayats and the district level in the ratio of 80:20. However, subsequent to the revitalisation of PRIs at three levels, the JRY funds are now distributed among the village panchayats, intermediate panchayats and the district panchayats in the ratio of 70:15:15. 2.1.33 This programme is targeted at people living below the poverty line. However, preference is given to Scheduled Castes/Scheduled Tribes and freed bonded labourers. Atleast 30 per cent of the employment is to be provided to women under the Yojana. In practice, however, this programme is self targeting. Given that employment is offered at statutory minimum wages for unskilled labour and that these wage

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rates are generally lower than the prevailing market wage rates, only those willing to do manual work for the prescribed wage rates would seek employment on these public works. While works under the scheme can be taken up during any part of the year whenever the need for generating employment is felt, these should preferably be started during the lean agricultural season but may continue thereafter, if necessary. 2.1.34 After three years of its implementation, i.e. in 1992-93, a review of the programme revealed that the per person employment generated was inadequate in terms of the requirement and did not provide enough income to the poor. It was also perceived that the resources under JRY were too thinly spread and adequate attention was not being given to the backward areas of the country. Accordingly, the strategy for implementation of JRY was modified from 1993-94 with the introduction of the Second Stream of JRY, specifically targeted at 120 identified backward districts in 12 States of the country, characterised by a concentration of the poor and the underemployed, with additional resources flowing to these districts. This modification in programme strategy was made to achieve the target of providing 90100 days of employment per person in backward districts where there was a concentration of unemployed and underemployed persons. In addition, a Third Stream of JRY was introduced for taking up special and innovative projects aimed at preventing migration of labour, enhancing womens employment and undertaking special programmes through voluntary organisations for drought proofing etc. 2.1.35 A Concurrent Evaluation of the JRY was conducted from June 1993 to May 1994. The study revealed that nearly 82.16 per cent of the available funds were spent on community development projects. Construction of rural link roads received the highest priority. The wage and non-wage component of the expenditure of JRY works undertaken by the village panchayats was of the order of 53:47 at the all-India level against the stipulated norm of 60:40. Muster rolls were maintained with 86.87 per cent of the village panchayats. The average wages paid per manday of the unskilled workers were more or less on the lines of the minimum wages stipulated under the Act. Of the assets created, 76.96 per cent were created by the village panchayats and 76.11 per cent of these assets were found to be in a good condition. As many as 69.35 per cent of the workers were satisfied with the benefits they received under the JRY. 2.1.36 The Evaluation Report also brought into focus certain inadequacies in the programme. It was reported that 57.44 per cent of the elected panchayat heads had not been imparted any training for the implementation of JRY works. The share of women in employment generated under the programme was only 16.59 per cent and 49.47 per cent of the works could not be completed on time on account of shortage of funds. Other shortcomings observed were differentials in the wages paid to male and female workers, non-utilisation of locally available material in a large number of JRY works undertaken by panchayats and lack of discussion of the annual action plans in the Gram Sabha meetings etc. 2.1.37 In a comprehensive restructuring of the wage employment programmes on 1.1.1996, JRY was further streamlined. In the revised strategy, the First Stream of JRY was continued in its existing form but Indira Awaas Yojana (IAY) and Million Wells Scheme (MWS) which were till then sub-schemes of JRY were made independent schemes. The Second Stream of JRY, which was being implemented in 120 backward districts in the country, was merged with the Employment Assurance Scheme (EAS) introduced in 1775 selected backward blocks of the country in 1993-94 in view of the similarity in these programmes. The Third Stream of JRY with its thrust on innovative projects was continued. Accordingly, the JRY is now being implemented in two parts i.e. (i) the Jawahar Rozgar Yojana (Main Scheme); and (ii) Special and Innovative Project. 2.1.38 Since the inception of JRY in 1989-90 till 1996-97 a total amount of Rs.26570.25 crore (Centre and State) was allocated to the programme. As against this total allocation, an amount of Rs.25661.70 crore was released of which Rs.25190.30 crore was utilised by the States. This utilisation is approximately 98.16 per cent of the total funds released. In terms of physical performance, as against a target of 6581 million mandays fixed under JRY, the actual employment generated was 6585 million mandays which is an achievement of 100.07 per cent. Of the total employment generated under the programme, the share of Scheduled Castes/Scheduled Tribes was 3659.53 million mandays (55.57 per cent) and that of women 1681.40 million mandays, which is 25.53 per cent.

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2.1.39 The financial and physical performance under the JRY during the Eighth Plan period is given at Annexure-V. 2.1.40 From the data on mandays of employment generated under JRY it is difficult to assess the number of workers who have actually received employment in the rural areas and on an average for how many days. To surmount this shortcoming, registration of workers who take up employment under this programme, should be made compulsory as under the EAS. 2.1.41 Besides generating supplementary employment of a casual manual nature, the programme has contributed to the development of rural infrastructure through the creation of a wide range of community and social assets in a number of sectors. These included major irrigation works, soil conservation works, land development, drinking water wells, rural roads, construction of school buildings, panchayat ghars, mahila mandals, houses and sanitary latrines and social forestry. In fact, assistance for construction of class rooms under the Operation Black Board (OBB) programme was specially provided under JRY. Of the total cost, 60 per cent was funded from JRY and 40 per cent from the education department of the State Governments to meet the additional non-wage cost. Under Operation Black Board, 25576 classrooms and 21541 school buildings were constructed at an expenditure of Rs.176.11 crore from JRY funds between 1991-92 to 1994-95. Such an integration between sectoral programmes and JRY, with dovetailing of funds, would help in the creation of better quality durable assets. Employment Assurance Scheme (EAS) 2.1.42 The Employment Assurance Scheme was launched on 2nd October, 1993 in 1775 identified backward blocks situated in drought prone, desert, tribal and hill areas, in which the revamped public distribution system was in operation. Subsequently, the scheme was extended to additional blocks which included the newly identified Drought Prone Area Programme (DPAP)/Desert Development Programme (DDP) blocks, Modified Area Development Approach (MADA) blocks having a larger concentration of tribals, and blocks in flood prone areas of Uttar Pradesh, Bihar, Assam and Jammu & Kashmir. In addition, 722 non-EAS blocks previously covered under Second Stream of Jawahar Rozgar Yojana (JRY) were also brought under the EAS. The EAS has since been universalised to cover all the rural blocks in the country with effect from 1.4.1997. 2.1.43 The main objective of the EAS is to provide about 100 days of assured casual manual employment during the lean agricultural season, at statutory minimum wages, to all persons above the age of 18 years and below 60 years who need and seek employment on economically productive and labour intensive social and community works. The works are to be selected by the District Collector and implemented through the line departments in such a manner that the ratio of wage to the non-wage component would stand at 60:40. Sectoral norms for execution of various works are-watershed development (50 per cent) and agro-horticulture, minor irrigation works (10 per cent) in DPAP and DDP blocks or water & soil conservation including afforestation, agro-horticulture and silvipasture (40 per cent), and minor irrigation works (20 per cent) in non-DPAP/non-DDP blocks. In addition, funds are also earmarked for link roads featuring in the Master Plans developed in the respective districts for this purpose (20 per cent) and public community buildings in rural areas as per the felt needs of the districts (20 per cent). The village panchayats are involved in the registration of persons seeking employment and the panchayats maintain these registers. They also coordinate and monitor the works. A maximum of two adults per family are to be provided employment under the scheme. The applicants, who register themselves for employment under the EAS, are issued family cards in which the number of days of employment are entered as and when such employment is given to them. 2.1.44 The EAS is a Centrally Sponsored Scheme. The scheme is demand-driven and therefore no fixed allocations are made for the districts/blocks. Instead, initial notional allocations are made to districts at the commencement of each year and thereafter depending on the demand for supplementary employment and the actual utilisation of funds the districts can request for additional funds. For the purpose of initial release, the blocks have been classified into three categories i.e. category A, B & C and Central funds to

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the tune of Rs.40 lakh, Rs.30 lakh and Rs.20 lakh are released as the first of the two instalments to these blocks respectively. This corresponds to the notional minimum allocation of Rs.1 crore, Rs.75 lakh and Rs.50 lakh per block per annum including the States matching share. 2.1.45 The financial and physical performance of EAS since its inception in 1993-94 (October 1993) to 1996-97 is given in the Annexure-VI. 2.1.46 Since the inception of EAS in 1993-94 (i.e. October 1993) upto 1996-97, a total amount (Centre and State) of Rs.6514.65 crore has been released under the programme, against which the total utilisation was Rs.5278.16 crore. This indicates a percentage utilisation of 81.02 per cent. As many as 25.90 million persons registered themselves for employment under the EAS. The programme generated 1068.60 million mandays of employment from 1993-94 (October 1993) to 1996-97. 2.1.47 The EAS has not been evaluated till date. Hence, it is difficult to assess the overall impact of the programme in terms of employment, enhancement in the purchasing power of the poor and creation of durable assets. However, the Programme Evaluation Organisation has recently undertaken a comprehensive evaluation study of this Scheme. Million Wells Scheme (MWS) 2.1.48 In India, though the small and marginal farmers, with holdings of less than 2 hectares, account for about 78 per cent of the total operational holdings, they only cultivate about 32.2 per cent of the cropped area (Agricultural Census 1990-91). To increase the productivity of these holdings they must be ensured an assured source of water supply. Ground water made available through wells is an important source specially in the remote areas of the countryside, where canal or tank irrigation is not feasible. Though the fixed capital investment in well irrigation is fairly high, it has many advantages such as flexibility in operation, dependability of source, timing of water deliveries and low conveyance losses. 2.1.49 The Million Wells Scheme (MWS) was launched as a sub-scheme of the National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP) during the year 1988-89. After the merger of the two programmes in April 1989 into the Jawahar Rozgar Yojana (JRY), the MWS continued as a sub-scheme of JRY till December 1995. The MWS was delinked from JRY and made into an independent scheme with effect from 1.1.1996. 2.1.50 The scheme was primarily intended 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 with a 20 per cent earmarking of JRY funds. Tubewells and borewells are not permitted under the Scheme. Where wells are not feasible due to geological factors, other minor irrigation works can be undertaken such as irrigation tanks, water harvesting structures as also development of land belonging to small and marginal farmers. From the year 1993-94 the scope of the MWS has been enlarged to cover non-Scheduled Castes/non-Scheduled Tribes small and marginal farmers who are below the poverty line and are listed in the IRDP register of the village. The sectoral earmarking which was 20 per cent upto 1992-93 had also been raised to 30 per cent from 1993-94 with the stipulation that the benefits to nonScheduled Castes/Scheduled Tribes would not exceed one third of the total funds utilised during the year. 2.1.51 The MWS is also a Centrally Sponsored Scheme. The cost/area norms in regard to works under MWS are decided upon by a Committee comprising of Chief Secretary, Secretary (RD), Secretary (Planning), Secretary (Irrigation) and Chief Engineer (Minor Irrigation) of the State. The beneficiarficiaries themselves are asked to undertake construction of their wells through their own labour and local labour for which they are paid. Contractors are banned under this programme. The wage to material ratio is required to be maintained at 60:40. Supplementary material costs, if any, can be met from other private/public sources. Though lifting devices are not provided under the scheme, the beneficiaries who intend to install a lifting device, are given the preference under IRDP and other relevant programmes.

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2.1.52 The MWS is being implemented throughout the country. Allocations are made to the States/UTs on the basis of the proportion of rural poor in the State/UTs to the total rural poor in the country. The Districtwise allocations are made by the States from their allocation in relation to the unirrigated land held by the target group with a potential for well irrigation. 2.1.53 A total of 11.04 lakh wells have been constructed since the inception of the programme till 1996-97 at an expenditure of Rs.4003.11 crore. The financial and physical performance under MWS during the Eighth Plan is given at Annexure-VII. 2.1.54 There has been no evaluation or impact study conducted in the field for the MWS. Yet, on the basis of the feedback available from certain parts of the country, this programme achieved considerable success in the districts falling in the Chotanagpur region of South Bihar, large parts of Orissa, many districts of Gujarat, besides the Eastern and Southern region of Rajasthan. In these areas, the MWS has played a significant role in transforming single cropped dry land areas held by farmers of the target group into double cropped lands, leading to increase in agricultural output and incomes. Yet, such successes have not been uniformly reported across the country. Many States have expressed difficulty in the implementation of the programme. For instance, in Punjab and Haryana where the incidence of tubewell irrigation is widespread and there is a wide network of canal irrigation systems, the programme of open dug wells is a non-viable option. Similarly, in Kerala the small size of the land holdings of the small and marginal farmers gives the scheme a limited potential. Andhra Pradesh, Goa, Madhya Pradesh, Maharashtra, and West Bengal are some of the other States which have shown a poor performance in the construction of wells under the MWS. These States have been permitted to utilise the allocations made under MWS for other schemes of minor irrigation such as irrigation tanks, water harvesting structures and also for the development of land belonging to the small and marginal farmers. Some States have also been permitted to divert MWS resources for the construction of houses for the poor under the Indira Awaas Yojana. 2.1.55 Field studies in various parts of the country have identified several factors which have posed as impediments to the effective implementation of this scheme. These include, among others , (a) construction of wells without proper hydro-geological surveys; (b) a declining water table and its continuous depletion by overuse of pumping sets resulting in large tracts falling in the dark/grey zones which indicate already dangerous levels of depletion of ground water; (c) non-availability of eligible persons in the target group; (d) limited success in rocky and sandy strata; and (e) distance between wells affecting the rate of discharge. 2.1.56 The programme has also been hamstrung by inadequate linkages. There has been a failure on the part of the block officers and the banks in providing lifting devices under IRDP and other programmes, thus rendering the investment in open dug wells infructuous. In some cases, though the wells have been dug and are working, their full potential has not been realised because of a lack of extension support from the agricultural department. National Social Assistance Programme (NSAP) 2.1.57 The National Social Assistance Programme (NSAP) came into effect from 15 th August, 1995. The programme represents a significant step towards the fulfilment of the Directive Principles in Articles 41 and 42 of the Constitution through the enunciation of a National Policy for social assistance benefits to poor households in the case of old age, death of the primary breadwinner and maternity. It is a Centrally Sponsored Scheme with 100 per cent Central assistance provided to States/UTs. 2.1.58 This programme has three components : namely (i) National Old Age Pension Scheme (NOAPS); (ii) National Family Benefit Scheme (NFBS); and (iii) National Maternity Benefit Scheme (NMBS) which are targeted at people living below the poverty line. Under the National Old Age Pension Scheme (NOAPS), old age pension of Rs.75 per month is provided to persons of 65 years and above who are destitutes. The National Family Benefit Scheme (NFBS) provides a lump sum family benefit of Rs.10,000

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to the bereaved household in case of the death of the primary bread winner irrespective of the cause of death. This scheme is applicable to all the eligible persons in the age group 18 to 64. Under the National Maternity Benefit Scheme (NMBS) there is a provision for payment of Rs.500 per pregnancy to women belonging to poor households for pre-natal and post-natal maternity care upto the first two live births. This benefit is provided to eligible women of 19 years and above. 2.1.59 In providing social assistance benefits to poor households in cases of old age, death of the primary bread winner and maternity, the NSAP supplements the efforts of the State Governments with the objective of ensuring minimum national levels of well-being. 2.1.60 The NSAP provides opportunities for linking social assistance package to schemes for poverty alleviation and provision of basic minimum services. In fact, that old age pension can be linked to medical care and other benefits aimed at the aged beneficiaries. The Integrated Rural Development Programme/Jawahar Rozgar Yojana assistance may be provided in addition to the family benefit for the families of poor households, who suffer the loss of the primary bread winner. Maternity assistance can be linked to other programmes of maternal and child care. 2.1.61 The NSAP is implemented in the States/UTs through Panchayats and Municipalities. The Panchayats and Municipalities are encouraged to involve Voluntary agencies to the extent possible for identifying beneficiaries and persuading them to avail of the benefits intended for them. 2.1.62 The NSAP programme has been operationalised since August 1995. No evaluation of the programme has been conducted either by the Central Government or by any other institution/organisation so far. 2.1.63 The details of financial and physical performance under NSAP during the years 1995-96 and 199697 are given at Annexure VIII. 2.1.64 In the first year of the programme in 1995-96, as against the total allocation of Rs.538.93 crore, the release was Rs.380.49 crore. Of the total release, only Rs.183.77 crore was actually utilised. Consequently, in 1996-97 there was a large opening balance of Rs.197.53 crore. Again, as against the total allocation of Rs.916.21 crore, the total release in 1996-97 was Rs.548.29 crore. Thus, the total available funds in 1996-97 was Rs.745.82 crore, of which only Rs.383.50 crore was utilised ( i.e. 51.42 per cent utilisation). 2.1.65 Of these three programmes, the performance under the NOAPS has been relatively good as compared to that of NFBS and NMBS because the administrative machinery for the implementation of this programme was already in place in most of the States. If we analyse the State-wise physical performance for the year 1996-97, even under NOAPS, only 10 States had covered more than 90 per cent numerical ceilings of the target population. Of this, 5 States/UT namely Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh and Pondicherry had more than 100 per cent achievement. The achievement in many States was less than 50 per cent. These States include Goa, Maharashtra, Rajasthan and North Eastern States excluding Assam. 2.1.66 The performance in the case of NFBS and NMBS was particularly poor. Under NFBS, achievement was only 28.85 per cent of the numerical ceiling. In only five States namely, Andhra Pradesh, Goa, Madhya Pradesh, Punjab and Tamil Nadu the coverage was above 50 per cent and in 7 States/UTs the coverage was between the national average of 28.85 per cent and 50 per cent, while in the remaining 20 States/UTs, the coverage was below the national average. 2.1.67 Under NMBS, achievement was only 27.57 per cent of the numerical ceiling. Except in Andhra Pradesh and Tamil Nadu where the coverage was 51.36 per cent and 60.94 per cent respectively, in all other States/UTs the coverage was below 50 per cent. In the case of 7 States/UTs the coverage was

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between the national average of 27.57 per cent and 50 per cent, while in the remaining 23 States/UTs, the coverage was below the national average. 2.1.68 Steps would be taken to simplify the procedures for the sanctioning and disbursement of benefits under these schemes with a closer involvement of the Gram Panchayats/Municipalities. The assistance may be sanctioned and disbursed in public meetings preferably of Gram Sabha by either Gram Panchayat functionaries or Block functionaries or appropriate level. In the case of urban beneficiaries, elected local self government officials wherever available should be involved in the process of sanctioning the assistance. The disbursement in such cases should also be preferably made in public meetings of neighbourhood/mohalla committees. These schemes would also be given increased publicity to ensure a larger coverage of beneficiaries. Land Reforms 2.1.69 Despite attempts at land reforms over successive Plan periods, the basic character of the agrarian economy has not undergone any structural change. The pattern of land distribution is highly skewed, with a high concentration of land in the hands of a few land owners on the one hand and the growing number of marginal and sub-marginal farmers on the other. Fragmentation of land holdings continues on a large scale and only a few States like Punjab, Haryana, Uttar Pradesh and parts of Maharashtra have been able to successfully undertake a programme of consolidation of holdings. Agricultural tenancy, which was abolished in most of the States by various enactments in the post-Independence era, continues unabated though it is largely concealed. In the wake of liberalisation, several State Governments have modified their land ceiling laws so as to exempt orchards, fish ponds etc., from the purview of land ceilings. There is also a move to make suitable changes in tenancy regulations to attract private corporate investment in agriculture. Hence, it is necessary to reconsider the issue of land reforms, particularly from the point of view of the poor, as access to land is still a major source of livelihood in rural India. In fact, it has been argued that the need for poverty alleviation programmes has arisen because the land reforms have not been implemented in a systematic way. The experience of several countries in East Asia shows that land reforms, leading to structural equity in the distribution of land, are an essential prerequisite for economic development through agricultural transformation. In addition, the efficiency of land use and land management, and protection of the land rights of the tribals and women have assumed great significance in the context of the changes that are taking place in rural India. 2.1.70 The continued importance of land reforms was recognised in the Eighth Plan, with the abolition of intermediaries, redistribution of ceiling surplus land, tenancy reforms providing security of tenure to tenants and share croppers, consolidation of holdings and updating of land records as the main objectives of the land reform policy. However, only limited success was achieved with respect to these objectives in the Eighth Plan. Given that land reforms is a State subject, the Central Government can only draw the attention of the State Governments to the pressing needs for land reforms, which are central to any strategy of poverty alleviation. 2.1.71 At the end of the Seventh Plan, out of the 72.2 lakh acres of land declared surplus, only 46.5 lakh acres had been distributed. At the end of the Eighth Plan, out of the total 74.94 lakh acres declared surplus, 52.13 lakh acres had been distributed. In other words, during the Eighth Plan only 6-7 lakh acres were redistributed. Further, 12.4 lakh acres were under disputes pending in courts and 19.59 lakh acres were not available for distribution because they were unfit for cultivation or reserved for public purposes or for other miscellaneous reasons. In fact, only 59,000 acres were available for redistribution. Of the Bhoodan land donated, 53 per cent was distributed, accounting for 24.52 lakh acres. In addition, 142.87 lakh acres of wastelands were distributed among 88.5 lakh beneficiaries. But, there is still considerable scope for redistributing Government wastelands, common lands, ceiling surplus land and Bhoodan land. 2.1.72 Similarly, in the area of tenancy reforms very little progress has been made, after the initial abolition of zamindari and the transfer of title to owner-cultivators in the immediate post-Independence period. The successful implementation of tenancy laws has been confined to West Bengal, Karnataka and

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Kerala. In fact, in the Eighth Plan there was no progress in respect of conferment of rights on tenants and therefore the issue of tenancy reforms is still illusory, but requires tackling. 2.1.73 Consolidation of holdings has taken place in very few States. While 15 States had enacted appropriate legislation, Andhra Pradesh, Tamil Nadu, Kerala, Pondicherry and the North-Eastern States do not have any laws for consolidations of holdings. Several States like Bihar, Maharashtra and Rajasthan have suspended the programme. In fact, only in Uttar Pradesh, 900-1000 villages are being covered annually. 2.1.74 There is evidence of considerable alienation of tribals from their land. As per the latest available estimates, 4.6 lakh cases of tribal land alienation covering 9.2 lakh acres have been registered. Of these 2.7 lakh cases covering 6.3 lakh acres have been disposed of in favour of tribals but physically an estimated 4.7 lakh acres had been restored to them. In other cases, reconciliations are being effected. 2.1.75 It cannot be gainsaid that the essential prerequisite of any land reform measure is the recording of land rights and their updating. In recognition of this, a Centrally Sponsored Scheme for Strengthening of Revenue Administration and Updating of Land Records was introduced during the later half of the Seventh Plan and against an outlay of Rs.20.8 crore, Rs.14 crore were spent. In the Eighth Plan a provision of Rs.175 crore was made against which Rs.98 crore were released and Rs.66.7 crore utilised. But, given that the funds are shared in the ratio of 50:50 between Centre and States, several States have not been able to provide their share and hence, the utilisation has been low. Several other States have not availed of this scheme at all. In 1995-96, funds were released only to Bihar, Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Tamil Nadu and West Bengal aggregating to only Rs.18.8 crore. The States have been requested repeatedly to expedite expenditure and to adopt new technologies for survey and settlement operations, preparation of maps etc. Funds for infrastructure development were also sanctioned to meet the training needs of the revenue functionaries. Some States have developed new training institutions, while a few have upgraded the existing ones. 2.1.76 In 1988-89, 8 pilot projects were taken up for computerisation of land records with 100 per cent Central assistance. Since inception, 323 projects have been sanctioned and funds to the tune of Rs.64.43 crore have been released. However, the utilisation was only to the extent of 20 per cent. This shows the tardy progress made in the implementation of this scheme on the ground. Ninth Plan Strategy 2.1.77 Direct poverty alleviation programmes will continue on an expanded scale in the Ninth Plan. But these programmes would be oriented towards strengthening the productive potential of the economy and providing more opportunities for involving the poor in the economic process. 2.1.78 The Integrated Rural Development Programme (IRDP) would continue to be the major selfemployment programme targeted to families living below the poverty line in the rural areas of the country. In the Ninth Plan it would be implemented through an integrated approach under which the existing schemes of Training of Rural Youth for Self-Employment (TRYSEM) and Supply of Improved Toolkits to Rural Artisans (SITRA), Development of Women and Children in Rural Areas (DWCRA) and Ganga Kalyan Yojana (GKY) would be subsumed into the main programme. 2.1.79 To facilitate higher levels of investment under the programme, there would be a strategic shift under IRDP from an individual beneficiary approach to a group and/or cluster approach. As part of the group approach, the focus of IRDP would be on the formation of Self-Help Groups (SHGs) which would be the catalyst for organising the poor. The cluster approach would focus on the identification of a few specified viable activities based on the local resource endowment and occupational skills of the people of that area. The IRDP will also aim at diversifying the investments into high-value-addition sectors and nontraditional activities which have a market potential. The financial institutions would play a more significant and dynamic role by enhancing the credit flows through a continuous line of credit, instead of a one-time

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loan and would render constructive assistance to the beneficiaries. This would help them to increase returns on their investments. The IRDP would service the beneficiaries through a package approach, wherein the beneficiary would have access to credit, training as per requirements, upgradation of technology, delivery of essential inputs and marketing tie-ups in an integrated manner. Presently, under the IRDP, training under TRYSEM is provided as an isolated input and there has been little attempt to make a proper assessment of opportunities where skills could be more gainfully utilised. Hence, the new holistic approach would overcome some of the inherent shortcomings which have undermined the success of the programme. 2.1.80 In view of the near complementarity in the ongoing wage employment schemes, Jawahar Rozgar Yojana (JRY) and Employment Assurance Scheme (EAS) will be rationalised. In the revised format JRY will be confined to the creation of rural infrastructure at the village panchayat level in consonance with the felt needs of the community. To the extent that the works undertaken under JRY would be largely labour intensive, supplementary wage employment would be generated in the process of infrastructure creation. The EAS would be the major wage employment programme which would contribute significantly to the provision of the mandated 100 days of casual manual work to those who register for employment under it. As the EAS has been universalised, specific measures would be taken to ensure that the benefits reach the poor and more backward districts of the country. 2.1.81 Land reforms will continue to be an important policy instrument for alleviating rural poverty. Access to land is still a major source of liveliood and its possession enhances the status of people in rural society. A proper implementation of land laws and policies would lead to a restructuring of the agrarian economy in a way conducive to higher rates of agricultural growth but with greater equity in the distribution of gains from it. While the ingredients of the land reform policy would continue to be the same as before, the focus would shift to a few critical areas. All efforts would be made to detect and redistribute the ceiling surplus land and to enforce the ceiling laws stringently. Given that small and marginal farms are viable, both from the efficiency and equity points of view, it is desirable that the existing ceiling limits are strictly enforced. More importantly, tenancy reforms would have to be taken up especially in States characterised by semifeudal modes of production. The rights of tenants and sharecroppers need to be recorded and security of tenure provided to them. Leasing in of land should be made permissible within the ceiling limits. The poor should be given access to wastelands and common property resources. The land rights of women must be ensured. This would require amendment of the existing legislations in some States to ensure womens rights with regard to inheritance of both land owned as also under tenancy. Updating of land records would have to be expedited as this is a necessary prerequisite of any effective land reform policy. Since land reforms is a State subject the States would have to be persuaded to take up these measures. 2.1.82 While the implementation of poverty alleviation programmes would be made more effective in the Ninth Plan, the extant non-monetary policies and institutional arrangements which adversely affect the interests of the poor would also be suitably addressed. In this context, the Ninth Plan will identify those laws, policies and procedures which are anti-poor and take the initiative in exploring whether some of these could be suitably modified in favour of the poor. 2.1.83 In the Ninth Plan, the poverty alleviation programmes would be more effectively integrated with area development programmes and the various sectoral programmes within the umbrella of Panchayati Raj Institutions (PRIs). The PRIs will function as effective institutions of local self-government. These would prepare the plans for economic development and social justice through the District Planning Committees and implement them. The State Government would have to devolve administrative and financial power to the PRIs which fall within their purview as per the Eleventh Schedule of the 73rd Constitutional Amendment Act, 1992. In addition, the voluntary organisations (VO) will have to play a more dynamic role in empowering the poor through advocacy, awareness generation and formation of SHGs. Integrated Rural Development Programme (IRDP)

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New Initiatives under IRDP IRDP will be a holistic programme covering all aspects of self-employment, namely, organisation of beneficiaries and their capacity building, planning of activity clusters, infrastructure, technology, credit and marketing. The existing sub-schemes of TRYSEM, DWCRA, SITRA and GKY to be merged into IRDP. Progressive shift from the individual beneficiary approach to the group and/or cluster approach. To facilitate group approach SHGs will be formed and steps will be taken to nurture them. For cluster approach each district will identify 4 to 5 activity clusters in each block based on local resources and occupational skills of the people. The infrastructure needs for the identified activities will be met in full. The Banks will be closely involved in the planning and preparation of projects, identification of activity clusters, infrastructure planning as well as capacity building and choice of activity of the SHGs. Promotion of multiple credit rather than one time credit injection.

2.1.84 The IRDP would continue to be the major self-employment programme, targeted towards families living below the poverty line in the rural areas. However, in the Ninth Plan, the focus would be on pursuing an integrated approach under IRDP by subsuming the existing sub-schemes of Training of Rural Youth for Self-Employment (TRYSEM) and Supply of Improved Toolkits to Rural Artisans(SITRA), Development of Women and Children in Rural Areas (DWCRA) and Ganga Kalyan Yojana (GKY) into the main programme. This integration of schemes is necessary to develop the appropriate forward and backward linkages to achieve a synergistic complementarity in the overall implementation of the programme. Project for Linking Banks with Self-Help Groups NABARD initiated a Pilot project to link Banks with Self-Help Groups (SHGs), with the objective of meeting the credit needs of the poor through formal financial institutions. Evaluation studies show success with increase in loan volume of SHGs, shift to income generating activities, nearly 100 per cent recovery and reduction in transaction costs. 85% of the groups linked with banks were exclusively of women. Scheme is being expanded, and will be replicated all over the country.

2.1.85 Furthermore there would be a strategic shift from an individual beneficiary approach to a group and /or cluster approach.

a. To facilitate this process Self Help Groups (SHGs) will be formed under IRDP and steps will be
taken to nurture these groups to enable them to function effectively as well asto choose their economic activity. Efforts would be made to involve women members in each SHG. Besides, formation of exclusive women groups will also continue as at present under DWCRA. It is proposed that group ventures which involve at least five beneficiaries would be assisted by making available 50 per cent of the project cost subject to a ceiling of Rs.1.25 lakh. This enhanced level of investment would facilitate economies of scale and improve recovery. b. Alternatively, a cluster approach would be preferred wherein a few specified activities are identified for assistance in an area. This would necessitate the formulation of a menu of "activity-

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based" project profiles in different sectors to suit the local resource endowment and the occupational skills of the local people. Accordingly, each DRDA would set up four to five activity clusters. Appropriate infrastructure and technology inputs would be built into the project. c. The Family Credit Plan would be extended to all the districts of the country in a phased manner. The feedback from the States suggests that this strategy has met with reasonable success and has raised investment levels.

2.1.86 One of the major constraints in the implementation of IRDP has been sub-critical investments, which have adversely affected Incremental Capital Output Ratios (ICOR) and, thereby, undermined the viability of the projects. Recognising that the level of investment is the most crucial variable in determining the incremental income generated under IRDP, the credit flows and the average level of investment per family for the Ninth Plan would aim at achieving enhanced levels of investment in the range of Rs.25,000Rs.50,000 depending on the estimate of the poverty line and the poverty gap. These higher levels of investment will give the beneficiary the necessary financial support for diversifying into high-value-addition sectors and non-traditional activities which have a market potential. 2.1.87 In this effort at achieving higher investment levels, the financial institutions would have to play a more significant and dynamic role by enhancing credit flows and rendering constructive assistance to the beneficiary making their investments viable under this programme. Adoption of simplified procedures by financial institutions would facilitate the BPL families in accessing groups loans under IRDP. 2.1.88 To simplify procedures the regimen of subsidy administration would be suitably streamlined in the Ninth Plan. At present, there is a complex gamut of ceiling limits on subsidy. The ceiling limit on subsidy would be fixed at 30% of the project cost subject to a maximum of Rs.7,500. However, in the case of SC/ST it would be fixed at 50% of the project cost subject to a ceiling of Rs.10,000. Therefore, for purposes of administrative expediency the area specific differential in subsidy administration would no longer exist. For group activities, however, the subsidy would continue to be Rs.1.25 lakh or 50 per cent of the project cost, whichever is lower. 2.1.89 The IRDP will seek to develop close linkages with the credit mechanism in such a manner as would promote repeated/multiple doses of credit rather than a one-time loan for the beneficiary. The emphasis, therefore, would be on establishing a continuous line of credit for the beneficiary, wherein it would be possible for the borrower to obtain need-based additional credit for working capital purposes, meeting unforseen expenditure related to proper maintenance of assets etc. which would have a bearing on the viability of the project so as to sustain credible levels of income generation. 2.1.90 Experience has shown that the IRDP has been relatively more successful in land-based activities. In recognition of this fact, purchase of land was made a permissible activity under the programme. For land-based activities, besides providing assistance for purchase of inputs to enhance the productivity of land, there exists a potential for diversifying into other allied activities, which have a high value-addition, such as sericulture, aqua-culture, horticulture and floriculture, on the existing lands of the small and marginal farmers as well as on land leased by the landless. In addition to these activities, SHGs would be given pattas for development of wastelands, social forestry, soil conservation and watershed projects. Common property resources would also be allocated to SHGs in the villages on a long-term basis for ecosensitive resource management. There is also a potential for allotting nurseries of the forest department to these groups for management. In all these, interest of womens groups would have to be protected. Usufruct rights of women on minor forest produce would have to be ensured legally and administratively and assistance provided to them for purchase or leasing in of land for joint management. 2.1.91 Yet, it must be recognised that land is a limited resource and that the distribution of land holdings remains highly skewed. Hence, the need for exploring the potential of the non-farm sector is crucial. It cannot be gainsaid that the non-farm sector in the rural areas has witnessed both growth and diversification in the past few years. Around 50 per cent of the IRDP investments are now made in the secondary and tertiary sectors, based on local resources and local requirements. These include

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processing industries, handlooms and handicrafts. Again, in most villages there is scope for tailoring and ready-made garments, chemist shops, woodcraft, country tiles, general store etc. In addition, in villages of a reasonable size, other business/service ventures like flour milling, motor rewinding, cycle repair etc. could also be promoted under IRDP. Greater emphasis should be placed on developing rural industries which would catalyse the overall development of that area. In a situation of an ever changing pattern of demand, emergence of new products and technologies in a dynamic and growing economy, an attempt would be made to integrate the IRDP activities, particularly those in the Industry Services and Business (ISB) sector with the market. This task would be entrusted to a team of experts/professionals, who would prepare sectoral and micro plans for identifying the thrust areas and activities for working out necessary linkages with other departments/agencies. 2.1.92 The artisans in the rural areas, despite their rich heritage and skills, largely belong to the poverty group. The scheme for Supply of Improved Toolkits to Rural Artisans is directed to this particular target group. In the Ninth Plan, to enable the rural artisans to take advantage of the new opportunities thrown up by the market, there has to be a quantum jump in their skills and productivity to make their activities viable and profitable. It is also necessary to support them with appropriate product designs and training, improved technology on the one hand and professional management and marketing support on the other. In other words, the rural artisans should be serviced through a package approach wherein the distribution of improved toolkits is supplemented with the supply of credit and raw material, marketing support and upgradation of existing technology. 2.1.93 The timely and adequate supply of trade specific toolkits would be given added attention. While deciding the source for supply of toolkits, quality and cost considerations, alongwith the post-delivery services offered by the manufacturer would be of considerable significance. It is important to constantly upgrade the design of the toolkits. For this, research and development would be given due emphasis. States would be advised to take the initiative in developing toolkits in at least two or three artisanal trades. The Department of Science and Technology, the National Small Industries Corporation, the Small Industries Services Institutes and the IITs would interact with the State Governments for development of appropriate technology and designs for improved toolkits for various artisan groups. In the process of designing and manufacturing these trade-specific toolkits, there would be constant consultations and dialogue with groups of artisans and reputed craftsmen in that particular trade. To broadbase the source for supply of toolkits some master craftsmen would also be trained in the manufacture of improved tools/toolkits. An effort would also be made to develop capabilities for design and upgradation of improved toolkits by artisans themselves. There are pockets of rural technology which have survived the onslaught of modern technological innovations by virtue of their sturdiness and locale-specific utility. These would be identified and replicated elsewhere. For the dissemination of technology the State Governments, in collaboration with the manufacturing agencies, would undertake promotional activities by organising exhibitions at several locations and on important occasions. 2.1.94 Since the 1991 Census data on rural artisans are still not available, the States would be required to conduct a district-wise survey of the total number of rural poor artisans, the number of such artisans provided with improved toolkits and the balance number to be covered. This exercise would facilitate a planned and phased coverage of this target group under IRDP. While individual artisans would continue to be covered with the supply of toolkits in traditional crafts, it is also proposed to cover the rural artisans through a cluster approach and to provide/saturate each cluster with trade-specific toolkits and related inputs in a package. In the implementation of this group cluster approach, due emphasis would be given to the formation of women artisan groups. 2.1.95 Availability of infrastructure facilities is an essential prerequisite for the success of IRDP activities. Substantial investments in programme infrastructure would be ensured, through a larger apportionment of funds, in consonance with the enhanced provisions of 20 per cent for IRDP infrastructure (and 25 per cent in the North Eastern States). There would be a special emphasis on infrastructure created under ISB sector with the setting up of service-cum-facility workshops at convenient places in the rural areas. These could provide common facilities in the use of machines and equipments to the rural artisans as also for repairing electrical gadgets of various types, agricultural implements, automobile parts and articles of

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common use. These workshops would also be set up in the tribal areas so that the process of initial value-addition to minor forest produce could be undertaken by the tribals themselves. Funding for infrastructure would also include the setting up or upgradation of technology resource centres. 2.1.96 Provision of marketing facilities is an important aspect of infrastructural development. In the Eighth Plan detailed guidelines were issued for setting up District Supply and Marketing Societies (DSMS) with the objective of providing integrated services to IRDP beneficiaries in the cottage and rural industries sector for the supply of raw materials, marketing of surplus products, information on technological upgradation and extension of credit support. Whereas some State Governments have taken the initiative in this regard, by and large the DSMS or similar bodies do not have much of a presence in most areas. In the Ninth Plan alternative strategies would be formulated for developing a suitable marketing infrastructure under IRDP. These would include (i) provision of transport arrangements for carrying IRDP products to rural/urban markets; (ii) introduction of insurance cover to mobile sellers; (iii) provision of better storage facilities; (iv) setting up and revamping of District Supply and Marketing Societies; (v) sale of IRDP products through Khadi & Village Industries Commission (KVIC) outlets, State Emporia etc., besides networking with DRDA showrooms/markets; (vi) setting up of quality control centres and consultancy centres which the beneficiaries could approach for advice for improving the quality and standard of their products; (vii) involvement of private sector in marketing by adoption of better packaging techniques, design, input, quality control, brand name etc.; and (viii) launching of a suitable advertisement campaign for IRDP products including organisation of exhibitions, melas. Furthermore, the potential of rural haats as a rural marketing outlet for IRDP products would be fully exploited. 2.1.97 There are certain areas in the country which have a very poor banking infrastructure. The areas of North-East and parts of Jammu & Kashmir fall under this category. Attention would be given to evolving innovative strategies and programmes to take care of the unbanked areas. 2.1.98 However, while diversifying the rural economies in high-productivity sectors, provision of adequate training facilities and upgradation of skills would be given primacy. As we have seen, the TRYSEM programme has been the weak link in the overall strategy for self-employment in rural areas. In the Ninth Plan, therefore, training would be made an integral component of IRDP. This integration would reduce to a great extent, the area-skill mismatch as the training would only be imparted in those trades/occupations which have a market potential. Yet, training would not be made compulsory as there are certain trades/activities under IRDP which do not require this input. 2.1.99 To strengthen the content and design of the training curriculum, the training institutes would have to constantly upgrade their syllabi in tune with the rapid changes in the job market. A basic foundation course would be a critical ingredient of the training curriculum which would make the trainees aware of simple accounting procedures, book keeping techniques and procedures in financial management, information on how to approach the banks and other financial institutions for loans, where to access the latest technology etc. Training would be given a sharper employment focus wherein the training content would be compatible with the area-specific ground realities and would be specifically imparted in those trades and activities which have a market orientation/potential and which would ensure the beneficiary sustained employment. 2.1.100 The quality of training would be improved. Inadequacy of proper infrastructural support has posed as a bottleneck in this effort. While the emphasis would continue to be on imparting training through the established and recognised training institutes like ITIs, Community Polytechnics, Krishi Vigyan Kendras, etc., the training infrastructure in these professionalised training institutes would be suitably strengthened. Special thrust will be given to the creation of training opportunities for women via strengthening of women ITIs, womens wings in general ITIs and women polytechnic. It is also necessary to upgrade the training skills of the trainers in the various government institutions imparting training to IRDP beneficiaries. The existing craft training centres and skill development institutes etc. would be revamped to cater to the needs of the changing situations. In those blocks where there is a concentration of unemployed youth and where there are no reputed training institutes in the vicinity, mini-ITIs should be set up, but only very

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selectively. Smaller private institutions and craftsmen will be engaged only where institutional support is not available. 2.1.101 In addition, a more effective liaison and interface between the State Governments, DRDAs and the formal/informal private sector/NGOs is required in order to identify the available employment opportunities in a region and develop training modules accordingly. Efforts would be made to establish a direct linkage between ITIs and industries in the areas where the youth could either be employed directly or could set up ancillaries to cater to the industrial demand. A similar linkage could be established between ITIs and exporters/export houses on the lines similar to gem cutting training in Gujarat. Such linkages are possible in rural hinterlands of towns/urban agglomerations. It is proposed to develop a Management Information System (MIS) through which important training institutes of relevance for IRDP throughout the country are identified and networked. This would give some idea of the areas deficient in the training infrastructure and would indicate where future investment should flow for meeting the training requirements. 2.1.102 With a view to ensuring that the benefits under the programme reach the more vulnerable sections of the society, the Ninth Plan would continue with the assured coverage of atleast 50 per cent for Scheduled Caste and Scheduled Tribe families, 40 per cent for women and 3 per cent for the physically handicapped. Experience in the implementation of IRDP suggests that programmes focussed on women, or in which women have played a dominant role, have performed better. The DWCRA programme has been an excellent vehicle for extending IRDP credit support for women beneficiaries in some States. The group strategy would, thereby, become the main plank for achieving the stipulated reservation for women over the next few years. 2.1.103 In the Ninth Plan social mobilisation will receive a special thrust. Initiative will be taken to build and strengthen the organisations of the poor with the objective of enhancing their capabilities. In this process voluntary organisations would have to play an important role in empowering the poor through advocacy, awareness generation and social mobilisation. As social animators and rural organisers they would help the poor to form SHGs in order to take advantage of the policies and programmes being implemented by the Government for their economic betterment. A voluntary organisation or a technology group could lend support to group activities by ensuring training, technological upgradation and convergence of various schemes. In addition, the DRDAs and PRIs would provide support for capacity building and provide access to credit, technology and markets to SHGs. A cadre of para professionals from within the community would be created to enhance the capability of the SHGs and help the community to access the facilities and services meant for them. 2.1.104 The DRDAs would be restructured in the light of the 73 rd Constitutional Amendment Act, which has enhanced their area of operation, commensurate with a larger inflow of funds. The scope of the activities implemented by the DRDAs has enlarged progressively over the years from the sole implementation of rural self-employment programmes to exercising effective coordination and supervision over other Centrally Sponsored Schemes. In the revised format, the DRDAs would work under the supervision and overall control of the Zilla Parishads. The Chairman of the Zilla Parishad will be the Chairman of the DRDA Governing Body and will preside over their meetings. The organisational structure (staffing pattern) of the DRDAs would be suitably revamped and strengthened with the induction of professional cadres and technical experts. The expertise would have to be developed in the fields of credit, technology upgradation, activity-specific training and infrastructural development. To make this implementing agency effective, the staff would have to be given sufficient exposure to the complexities of poverty eradication, human resource development, gender and related issues. The DRDAs agenda for operation in the Ninth Plan, would not be limited only to the achievement of physical targets, but also to ensure the quality of the programme and realisation of intended benefits for the targeted poor beneficiaries. Wage Employment Programmes

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2.1.105 The thrust of the Government policy is on assuring at least 100 days of employment per person per year by coordinating all the wage-employment schemes including the State schemes like the Employment Guarantee Scheme in Maharashtra. Now, with the universalisation of the EAS, both JRY and EAS are operating in all the districts/blocks of the country. At present, the JRY is being implemented through the panchayats and the EAS through the administrative apparatus. However, in consonance with the Government policy, the EAS would also be implemented through the Panchayati Raj Institutions (PRIs) in future. There is, therefore, a near complementarity of objectives and there would be a common implementing agency namely the PRIs in the case of both JRY and EAS. Wage Employment Programmes JRY will be confined to the creation of rural infrastructure according to the felt needs of the people at the village level through panchayat. The EAS would be the major wage-employment programme. In order to make EAS effective in reaching the poor and more backward areas of the country, it is proposed that funds released to States should be made as per incidence of poverty. Works can be taken up in blocks where there is concentration of the poor and underemployed, and workers have registered themselves for manual work.

The only major difference is that while, under JRY the allocations are made on the basis of a specified criteria, the EAS is a demand-driven scheme. In the latter case, only initial notional allocations are made and then depending on the demand for supplementary employment and actual utilisation, requests for additional allocations are made by States/Districts. Therefore, in theory there is a good case for merging these two schemes into a single wage-employment programme. Though the merger of the schemes may be operationally expedient, there would be practical constraints. Under the EAS works are taken up at the block level whenever workers register themselves for casual manual employment. Hence, it is possible that no works are taken up in many villages, particularly those which are` economically better off or where the population is sparse. In this case, these villages would be denied funds presently flowing to them under JRY. This would lead to contradictions as JRY has made the villages more independent in so far as they can take up small works according to the felt needs of the community without having to look for funds from the district administration. The JRY has also been successful in taking development to the people with planning and implementation of works according to their felt needs. 2.1.106 Therefore, it is proposed that the JRY would be confined to the creation of rural infrastructure at the village panchayat level. To the extent that the works would be largely labour-intensive, supplementary wage-employment will be generated and this would be monitored without the existing stipulation of a wage-material ratio of 60:40. 2.1.107 The EAS would be the major wage-employment programme. The funds at present flowing to the block and district levels under JRY would also be rediverted to the EAS, augmenting the resources under this scheme. However, certain precautionary measures would have to be taken in order to make the scheme effective in reaching the poor and the more backward areas of the country, where there is a concentration of the poor and underemployed. Towards this end, it is proposed that funds released to States should be made on the basis of the incidence of poverty in order to prevent the better-off States from cornering a larger share of the funds. To elaborate, in progressive States characterised by higher levels of agricultural productivity, higher per capita income and/or high literacy rates there is little real demand for casual manual work on public works. Yet, in these States demand is artificially created as, in the lean agricultural season, labour is willing to work on public works at the prevailing minimum wage rates which are relatively high. In this way, the States specific real demand is not being addressed and in fact, there is a diversion of resources from the relatively poorer States to the more progressive ones. In such a situation, EAS would cease to be a genuine demand-driven scheme and, therefore, suitable

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measures would have to be taken to ensure that scarce resources reach the targeted poor and the more backward areas of the country. 2.1.108 Hence, as a second step, the allocations from the States to the districts will also be made on the basis of a predetermined criterion which reflects the relative backwardness of the district. Below the district level, the works can be taken up in blocks where workers have registered themselves for casual manual work. Urbanised blocks would be excluded from the purview of this scheme. No contractors would be involved. This scheme would essentially be implemented by the PRIs at the block level, but with a specific apportionment of funds to the DRDA/ZPs, for taking up inter-block and district level works. 2.1.109 Presently, under EAS the funds are earmarked for specific activities in given proportions. Fifty per cent is earmarked for watershed-related activities. It is argued by many that it may not be fair to pre-empt the bulk of the resources for watershed-related activities being implemented in a few villages to the relative neglect of other villages in a block. In the spirit of democratic decentralised planning, the choice of activities must be left to the Panchayat Samities/Zilla Parishads which can select from the various activities/works envisaged in their block/district plans. However, at least 40 per cent of the expenditure would have to be on watershed-related activities in DPAP areas as water conservation through construction of water harvesting structures has become one of the priorities of planning, particularly in the plateau and rocky areas where water tables are falling rapidly and ground water acquifers need recharging. It may be worthwhile to spell out that the works should be labour-intensive with a 60:40 ratio of wages and materials and should lead to the creation of durable assets and rural infrastructure. 2.1.110 In short, EAS will be the single wage-employment programme operating throughout the country, while JRY will be confined to the creation of durable community assets at the village level. So far, under the JRY a certain quantum of funds was earmarked for Special and Innovative Projects. However, experience gained from the implementation of this component of JRY has indicated that most of the projects were not really innovative in nature but merely a replication of the existing programmes on traditional lines. Hence, there is no need to continue a separate scheme for Special and Innovative Projects. 2.1.111 Currently, the funds for IRDP and its allied programmes are shared between the Centre and the States in the ratio of 50:50, whereas the wage-employment programmes such as the JRY and the EAS are funded by the Centre and the States in the ratio of 80:20. It hardly needs to be emphasised that the wage-employment programmes are more popular with the State Governments on account of this cost sharing pattern. As against this, the equal cost sharing formula for self-employment schemes seems to have dampened the enthusiasm of the State Governments towards IRDP and allied programmes. States with difficult resource position find it hard to contribute their share of the outlay. In the Ninth Plan, it is proposed to alter the funding pattern under IRDP and bring it at par with the rural wage-employment programmes. In fact, the cost sharing formula for both IRDP and the wage employment programmes would be revised to a uniform ratio of 75:25 between the Centre and the States. Million Wells Schemes (MWS) 2.1.112 In view of its importance in providing a source of irrigation to the target group, the MWS would continue in the Ninth Plan to provide for maximisation of agricultural output. Simultaneously, the level of ground water would have to be maintained by the adoption of suitable recharging practices so that the small and marginal farmers can derive maximum benefits from their small holdings. 2.1.113 Until recently, the focus under the MWS was on the creation of employment, with the secondary objective of providing a source of irrigation. This situation has now been modified by delinking the MWS from the JRY and repositioning it as a beneficiary-oriented scheme of irrigation for enhancing agricultural productivity levels of the small and marginal farmers.

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2.1.114 The per capita assistance under the MWS for providing a well on the land of the small and marginal farmer ranges approximately from Rs.30,000 to Rs.35,000, though some States have reported a cost of upto Rs.1 lakh. Such a well can irrigate, on an average, one or two hectares. There have been suggestions from some States to permit the construction of field channels in conjunction with the digging of wells. This is particularly significant in view of the fact that water lifted from the wells is conveyed through open unlined earthern channels by most of the farmers, leading to conveyance losses of about 14 to 19 per cent. Necessary control and diversion structures for open line channels may be provided to avoid wastage of water. The channels could consist of structures of soil, cement or even prefabricated cement concrete. National Social Assistance Programme (NSAP) 2.1.115 The NSAP was introduced as a social security programme for the welfare of the poor households. However, it must be recognised that it is not a poverty alleviation scheme but more in the nature of a welfare programme and hence, has a limited role in the overall strategy of poverty alleviation. Moreover, the financial assistance provided to poor households in the case of old age, death of primary bread winner and maternity is in the nature of transfer payments and therefore, it should really form a part of non plan expenditure. Furthermore, the performance under this programme indicates that it has not been effective in reaching the intended beneficiaries. Moreover, several States have their own schemes of old age pension and maternity benefit for which provisions are made in the States Plans and this should continue to be within their purview, as it is a State subject. Yet, as this programme has now been introduced as a Centrally Sponsored Scheme it would continue in the Ninth Plan but would require a review thereafter. Land Reforms 2.1.116 In the Ninth Plan the issue of agrarian restructuring will continue to receive the top most priority in the expectation that the States would be able to facilitate changes that would make for more efficient agriculture, leading to increases in both output and employment. This process will, in turn, contribute to the achievement of a higher rate of economic growth with social justice. 2.1.117 The main components of the land reform policy are the detection of ceiling surplus land and the distribution of the existing surplus land, besides tenancy reform, consolidation of holdings, providing access to the poor on common lands and wastelands, preventing the alienation of tribal lands and providing land rights to women. However, for the successful implementation of land reforms, updating of the land records, both by traditional methods and through computerisation, is an essential prerequisite. Let us elaborate. 2.1.118 Ceiling on Land Holdings: With the introduction of the Land Ceilings Act in 1972, the ceiling on land holdings was introduced in almost all the States with the exception of some North-Eastern States, though the ceiling limit varied depending on the quality of the land. The ceiling surplus land was to be distributed among the landless poor. In this way, land ceiling was considered an important instrument for reducing disparities in the ownership of land and as a way of increasing productivity through greater utilisation of labour. However, in practice, the extent of land declared surplus was very limited. The total area declared surplus is estimated at less than 2 per cent of the total cultivated area. Further, distribution of surplus land has been limited in several States because of institutional and legal rigidities. There are other reasons too which have led to the poor performance with regard to land ceiling. Most importantly, the ceiling surplus land continues to exist in a concealed way particularly in areas which have been covered by irrigation in the post-1972 era. Further evidence suggests that there are areas where land owners have land in excess of ceiling limits which can be mopped up if the programme for unearthing it is pursued vigorously. Also, in order to circumvent the ceiling laws, benami and furzi transfers are effected which need to be identified. There is clearly a need to detect the land falling within the ceiling limits and redistribute it. But detection and distribution of ceiling surplus land require tremendous political and administrative will.

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2.1.119 In the wake of the economic liberalisation in certain States like Karnataka, the industry and the large farmers are being given exemption from ceiling laws without seeking the permission of the Government of India. This would certainly go against the interest of the poor as it would increase landlessness and depress agricultural wages. Hence, this issue requires close examination, before such exemptions are given. 2.1.120 Small farms are efficient in terms of yields and returns per unit of area. However, they are often not able to generate adequate income to sustain further investment. Therefore, there is a need for both horizontal and vertical diversification of small farms. An analysis of Indian Council of Agricultural Research (ICARs) data of national demonstrations shows that there are large technological/yield gaps, particularly in the backward regions, which, if fully exploited, would enable the marginal and small farmers to generate incomes well above the sustenance level, subject to crop rotation, cropping pattern, yield responses of technological adoption, etc. In fact, in irrigated areas, the small and marginal farmers are viable because of their capacity to produce two or three crops a year. In the case of rainfed agriculture, a breakthrough in dryland farming is required with respect to the traditional cereal crop that can grow in these areas. Alternatively, there is a possibility of shifting to other high-value crops like fruits, vegetables, mulberry, etc. Other support systems would have to be appropriately developed to provide facilities for credit, marketing, storage and transportation of the perishable high-value crops. In fact, a change in the cropping pattern away from cereals to some high-value crops, would certainly make the small and marginal farmers viable. Also, given the increasing market demand for certain products, sericulture, horticulture and aquaculture have a great potential. In Maharashtra and West Bengal a small piece of land yields adequate returns from horticulture and acquaculture respectively. This provides further justification for ensuring that ceilings are strictly enforced as small farms can be perfectly viable in the given context. 2.1.121 As observed in the UNDP Human Development Report 1996, as land is redistributed from big to small farms, not only the family labour per hectare can increase sharply, so, can hired labour also. For both the reasons, the employment situation improves even for those, who remain landless after the land reform. The main conclusion from this is that an agricultural strategy centered on small farms, rather than large, simultaneously increases the social efficiency of resource use in agriculture and improves social equity through employment creation and more equal income distribution, that small farms generate. 2.1.122 While there appears to be a rationale for reducing the existing ceiling limits further with a view to alleviating poverty of the growing number of rural landless poor, this is unlikely to have the support of the State Governments. Therefore, a pragmatic approach would be to strictly enforce the existing ceiling limit without permitting any attempt to circumvent it. Given the employment elasticity of agriculture in areas, which are agriculturally backward, land reforms would ensure both agricultural growth and greater employment for the rural poor. It would also provide a social status to the large number of poor. A greater transparency in the method of distribution of surplus land is possible with a greater involvement of panchayats, local communities and NGOs. 2.1.123 Tenancy Reforms: The policy with regard to tenancy clearly provided for conferment of ownership rights on tenants or for acquisition of ownership rights by them on payment of a reasonable compensation to the landlords. The tenancy laws of most States abolished tenancies so as to vest ownership of land with the actual tiller. Despite the legal provisions to abolish tenancy, it has continued to flourish with the existence of a large number of tenants and sub-tenants without any protection against eviction leading to insecurity among them. The continued existence of oral and concealed tenancies has led to low investments and low productivity in agriculture in several States where the implementation of tenancy reforms has been tardy. In contrast, in West Bengal, Karnataka, and Kerala, much success has been achieved in this respect. The success of Operation Barga in West Bengal is well documented. This shows that conferring occupancy rights on the tenants has led to better investments in land and consequently, a higher rate of return. Hence, it is desirable that States which have a high incidence of concealed tenancy recognise this fact and record the rights of tenants. In addition, absentee landlordism has to be restrained. To the extent that large land owners leave their land fallow, either the State should take it over and lease it out on a long-term basis or the land owners should be required to lease it out on a

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long-term basis. Measures would have to be taken for the protection of tenants against displacement, eviction and other forms of exploitation. 2.1.124 A ban on tenancy was imposed in almost all the States to encourage owner cultivation and to give security of tenure to the sharecroppers and the tenants. In areas characterised by semi-feudal modes of production, where agricultural markets are not well developed, this ban is desirable with a view to protecting the tenants. It has been demonstrated that in 1972-73 in Purnea district of Bihar 40 per cent of the land was under sharecropping. This percentage has gone down and is probably around 25 per cent. The share of landholders is limited to 25 per cent of the gross produce but in practice this is perhaps illusory. Since the tenancies are oral and the sharecroppers are weak their hold on land is tenuous and they have to give to the landlord more than half of the produce. In this case, the tenants have no incentive to make long-term investments in land. The landlords also do not look upon it as a productive asset but a store of value and a reflection of their social status. Both the landlord and the sharecropper would gain if the sharecropper had the rights of cultivation in the land as he would make greater investments which would lead to higher returns. This shows that in areas where tenancy flourishes, reforms are required together with a proper implementation of laws. 2.1.125 On the other hand, in the "Green Revolution" areas where there is greater awareness and the markets work, freeing the lease market for land would contribute both to equity and efficiency. In these areas where the traditional arrangements exist, the tenants have been reduced to the status of an agricultural labourer with the landlord exercising considerable influence. In this case, the tenants as well as small and marginal farmers would be able to augment their operational holdings by leasing in land and, with a greater intensity of cultivation, it would lead to greater output. Clearly, agricultural tenancy should be opened up and leasing in of land permitted subject to the ceiling limits. This would activise the land market which would enhance the poor peoples access to land. 2.1.126 Protection of Tribal Land: Despite the commitment that the tribal lands must remain with the tribals, alienation of the tribals from their land continues on a large scale due to various legal loopholes and administrative lapses. Hence, in the Ninth Plan legal provisions must be made for the prevention of alienation of tribal lands and for their restoration, not only in the notified scheduled tribe areas but also in the tribal lands in other areas. Also, the regulation of resale of the tribal lands should be made as stringent as possible. Given that alienation is basically a consequence of economic deprivation and social discrimination it is felt, that for the tribal communities, various development programmes must be dovetailed in order to improve the income level of these people and to provide them with a basis for sustained livelihood. Even in the case of acquisition of lands of the tribals by the Government for public purposes, it should be restricted to a minimum. Encroachment of land belonging to tribals should not be permitted. Even civil courts should have no jurisdiction in the proceedings involving transfer of land of persons belonging to scheduled tribes. 2.1.127 Consolidation of Holdings: As already stated, consolidation of holdings has been successful in a very few States though several States have enacted legislation in this regard. In some cases, there are genuine problems in the process of consolidation including proper valuation of land, fear of eviction of small and marginal farmers who are tenants, inadequate availability of staff and lack of updated land records. Despite these constraints, consolidation of holdings makes for efficient land use and water management, leading to higher productivity and, therefore, must be enforced wherever practicable. However, in so far as there is insecurity among the tenants and small and marginal farmers, the State must ensure that their interests are protected. Consolidation operations, whenever undertaken, should be integrated with survey and settlement operations in order to avoid duplication in work and harassment to the affected person. The involvement of the Panchayati Raj Institutions should facilitate this process through a greater participation of the village people. 2.1.128 Government Land and Common Property Resources: In rural areas every village has common lands as well as other common property resources. These are a source of sustenance to the landless. Evidence suggests that considerable area of the government land has been taken over both by the rural poor as well as by the rural elite for agricultural and housing purposes. Unluckily, due to

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negligence, unsustainable overuse and excessive pressure of population on land, the productive capacity of common lands has been diminishing. However, joint forest management and watershed development programmes are schemes which can be successful in the regeneration of these common lands. Clearly, pattas should be given to the rural poor in order to provide them access to a means of livelihood. There are several success stories, both in the area of joint forest management as well as watershed development by groups of people, especially women on common land, which could be replicated. These lands can also be used for providing grazing land, fodder and fuel to the poor. If the common property resources vest in the Gram Panchayat, access to it should be limited to the rural poor and the rural elite should not be allowed to encroach upon it. Similarly, the wastelands which are lying unutilised should be reclaimed and distributed among the marginal farmers and landless labourers of the area. This would provide them a source of income as also generate greater output from a variety of activities in the area of agriculture, horticulture, fodder, fuelwood and other agro-forestry. Given the paucity of cultivable land, it is necessary to redistribute the wastelands and fallow land in order to provide productive employment to the poor. 2.1.129 In the case of land vested and in possession of the Government and/ or where a final decision is pending in a judicial court, it is suggested that such land should not be kept vacant but allotted to eligible rural poor on a short-term basis with a clear understanding that they would have to handover the land to the original landlord if the court so directs. However, legal opinion is being sought on the possibility of taking up this measure. Again in the case of Government wasteland and degraded forests, there is a growing opinion that such land should be allotted/leased to the corporate sector and for industrial and commercial purposes. As argued above, this too would adversely affect the rural poor. Access to such land should be restricted to the rural poor in order to provide them with employment. 2.1.130 Gender and Land Rights: So far, the strategy of land reforms has not given any cognizance to the existing gender inequalities in land inheritance laws and ceiling laws. In most regions of the country, women constitute a disproportionate number of poor. They are also more dependent on agriculture for a livelihood than men, as men shift to non-farm employment. Also, it is estimated that 20 per cent of the rural households are de facto female-headed. Yet, very few women have titles to land and even fewer control it. Hence, ensuring womens effective command over land will be one of the new priorities of the Ninth Plan. 2.1.131 Traditionally, it was accepted that agricultural land would be inherited by sons, even though in some States the inheritance law did not stipulate such a provision. Hence, it is necessary to implement the laws and also to record the rights of women, where it is legally claimed by them. Further, in so far as inheritance rights in tenancy laws are subject to specific land acts, the issues cannot be easily resolved. In some States the tenancy laws provide for devolution of tenancy to male descendants and only in their absence, women can inherit, but then also to a limited extent. Hence, it is recommended that States should amend their land and inheritance laws so as to bring agricultural land at par with other forms of property. There has been some progress in this direction in Southern and Central India. 2.1.132 Many of our States have improved womens access to land and landed property. States like Karnataka, Tamil Nadu and Andhra Pradesh have amended the Hindu Succession Act, 1956 to formalise issues related to womens right to property including land. Some, like Rajasthan and Madhya Pradesh have provided that issues related to property, including landed property, would be dealt with in accordance with the appropriate personal laws. However, serious anomalies continue to persist. A number of States like U.P. Haryana, J&K, Delhi and Punjab are apparently yet to take adequate steps to provide the Constitutional/legal safeguards to women with respect to their access to land. 2.1.133 Additionally, it is necessary that when ceilings are fixed in relation to a "family unit", the definition of a family should be uniform across States and sons and daughters should be given equal consideration, both while assessing ceiling surplus land and in land distribution under various resettlement programmes. The pattas should be in the name of women to a larger extent. While joint pattas are better than no pattas, which do not provide the women control over it. In fact, groups of poor rural women should be given group pattas with usufructuary rights, but no right to sell individually. This group approach would

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enable the women to retain control over land. They could invest in the land collectively and cooperate in sharing both labour time and the returns. There are several instances of such joint management by groups of women which need to be replicated. However, to enable women to reap the benefits of land acquisition, greater access to information, credit, inputs, marketing and technologies must be provided to them. 2.1.134 In order to have a better data base, both the Agricultural Census and the National Sample Surveys should provide information on land ownership, land operated and land under tenancy by gender. So far, land-based statistics are recorded on a household basis. A pilot survey should be undertaken proceeding the next nationwide NSS data collection exercise. 2.1.135 Updating of Access to Land Records: Maintenance of up-to-date land records is crucial for effective implementation of land reforms. In recognition of this, during the Seventh Plan period, a Centrally Sponsored Scheme for Strengthening of Revenue Administration and Updating of Land Records was introduced with a view to strengthening survey and settlement organisations at the grassroots level through training, equipment, staff etc. Hence, it is imperative that States should give special emphasis to resurveys and adopt appropriate modern technologies for this, including aerial survey, photogrametic systems, global positioning system, use of scanners, digital computerised maps etc. 2.1.136 Further, a special drive for recording land rights of tenants and sharecroppers, as in West Bengal, must be undertaken by other States. As recommended by the Conference of Revenue Ministers held in 1997 all the existing tenancy reform legislations should be examined and a model legislation prepared. 2.1.137 Another Centrally Sponsored Scheme for Computerisation of Land Records was started during 1988-89 as a pilot project. But the scheme has made little progress. In fact, several factors including power shortage, lack of trained staff and bureaucratic procedures involved at various stages, have constrained the progress of computerisation of land records. Despite these problems, computerisation must be given a high priority and solutions found for the operational problems. The updating of land records can be expedited even without computerisation through the involvement of panchayat institutions and the local revenue functionaries. The village-level revenue functionaries should be placed under the control of the Gram Panchayats, though the appellate jurisdiction should continue with the tehsildar. At the district level, the land revenue system must work under the Zilla Parishad. The 30 per cent representation for women in PRIs should help the cause of women in so far as recording of rights of women in land is concerned. 2.1.138 Moreover, steps have to be taken to bring about greater transparency in the administration of land records, with access to information regarding land holdings on demand by any individual. Copies of land records, including record of rights, field books/field map, Land Pass Books as also mutation statements, status of land and jamabandi register should be accessible and copies provided on payment of a fee. Anti-Poor Laws and Policies 2.1.139 Over time, the expenditure on the various poverty alleviation programmes has increased significantly. It is true that these programmes play a vital role in ensuring that the poor are able to sustain themselves, particularly during the lean seasons, through generation of additional employment and incomes. However, it is becoming increasingly clear that spending money is not the only way of ameliorating the conditions of the poor. Scant attention has been paid to the role of non-monetary policies and institutional arrangements which affect the lives of the common people, especially the poor. There are several laws and policies which are anti-poor. The knowledge about them is scattered and often anecdotal. However, some examples may illustrate the nature of the problem. 2.1.140 For tribals and forest dwellers minor forest produce obtained from forest and common property resources is a major source of livelihood. However, the poor tribals are facing problems in gathering this

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minor forest produce due to diversion of non-timber forest produce to the industry. Bamboo forests are being readily leased to the paper industries regardless of the provision in the Forest Policy 1988 which stipulates that the forest dwellers have the first charge on the forest produce. Rural artisans, who make products out of bamboo, face shortage of raw material as the forest departments allot them green bamboo in rationed quantities. This practice has been observed in Karnataka and Orissa. In some cases, forest land is leased out to private industry for long periods. This too adversely affects the poor. 2.1.141 The forest department also issues licences to women for gum collection from babool trees and compels them to sell their entire collection to the forest department at a prescribed price which is one third to one fourth of the market price. In some States, tribals can collect hill brooms but cannot process these into a broom nor can they sell the collected items in the open market. Thus, the poor are prevented from making value addition through processing and are denied the right to get the best price for their produce. Licensing activities for the poor in rural areas are cumbersome and time consuming. To set up a charcol kiln one requires four to five types of permission. 2.1.142 The cattle flayers in UP have no legal control over their own produce i.e. the hides they flay from the naturally fallen animals. The Zilla Parishads award contracts either to individuals or to cooperatives for collection and storage of hides. Hence, the flayers are not able to sell in the open market but are forced to accept the terms made by the contractors. Again in Bihar, auction ferry right is made in favour of Zamindars and contractors who collect tolls and taxes from the poor who have to cross the river to sell their produce. In addition, those who are fishing or plying boats across the river have to pay taxes to the Zamindars. Normally, access to, and use of, the river should be free to farmers, labourers, petty traders etc. In Assam, the fishery laws are such that the fishermen do not benefit from them. A sector of the river is leased out to "Mohildhars" who auction the fish and only 1/3 rd is given to fishermen who actually catch the fish. These are ways in which common property resources are being used in a way that are prejudicial to the poor. 2.1.143 The rural poor do not have a level playing field as the market for their finished products are dominated by a single trader or cartel of traders operating in the area. In the market, the terms of trade are against them. Neither the public nor the private sector has encouraged the growth of poor peoples organisations but, instead, has either tried to suppress or control them. Cooperatives could have become the real supporters of the poor and needy but the process for their formation and registration is very cumbersome. Where cooperatives of poor people have been successful such as womens beedi cooperatives, they have been taken over by private companies. Similarly, the Government has often interfered with the independence of the cooperatives by putting government operators incharge of them. 2.1.144 Such examples abound. An exercise has already been done to document some of these laws and policies. In the Ninth Plan, an attempt will be made to initiate the process of identifying anti-poor laws/policies, Statewise. These would be brought to the notice of the policy makers, local governments and NGOs so that these may be suitably modified and/or repealed in the interest of the poor. Integration of Poverty Alleviation Programmes with Sectoral Programmes 2.1.145 It is necessary to recast the special employment programmes with a view to making them more effective in meeting not only the short-term objective of providing temporary work, but also in building up the productive capacity of individuals/areas which, in turn, would make for greater employment on a more sustainable basis. The focus would have to be on agriculture and allied activities, besides rural non-farm sectors and services, which have a high employment elasticity. This would require a high degree of convergence among the various poverty alleviation programmes (PAPs), area development programmes and sectoral schemes, within a district plan based on the physical and human endowments of the area, the felt needs of the people and the total financial resources available. Using scientific methods, remotesensing agencies at the Centre and State level would be asked to provide detailed maps showing land, water and other physical resources of the area, with the aid of photogrammetry and satellite imagery. The detailed maps would then be scrutinised to identify all possible watersheds. Planning along watershed

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lines would ensure minimum surface run-off, thus conserving water from rainfall. Viable activities in agriculture and allied sectors would have to be selected. Agro-processing activities linked with the cropping pattern, village and small industries with growth potential and other infrastructural gaps would also have to be identified and prioritised. Within this framework, poverty alleviation programmes would be integrated with area development programmes within a developmental plan at the district level. 2.1.146 So far, there has been a complete dichotomy between various sectoral as well as poverty alleviation programmes that have been planned and implemented by the concerned line departments. The Government has recognised this dichotomy but greater efforts have to be made to effect the convergence in practice. As a start, an attempt has been made to integrate DPAP and DDP, EAS and the Integrated Wasteland Development Programme (IWDP), all being implemented by a single Ministry. Watersheds are to be constructed and associated works of drainage, land development and terracing undertaken. Also, afforestation, agro-based and horticultural development, pasture development, crop demonstration for popularising new crops/varieties and upgrading of common property resources are being taken up. Clearly, there is scope for integrating other sectoral programmes of soil and water conservation, forestry, minor irrigation, animal husbandry, agriculture and other departments, funds from which flow from sectoral heads to the district level. Once the area plans are prepared, dovetailing of funds would not pose a problem. Institutional Mechanism for Delivery 2.1.147 Consequent to the 73rd Constitutional Amendment Act, State Governments have enacted enabling legislations providing for local bodies at the village, intermediate and district levels. In almost all the States with the exception of Bihar the PRIs have been duly constituted. The State Governments are required to endow these PRIs with the requisite financial and administrative powers to enable them to function as institutions of self-government. The PRIs would be responsible for preparing the plans for economic development and social justice through the District Planning Committee and for implementing them, in respect of the items listed in the Eleventh Schedule of the Constitutional Amendment. This process of devolution is at various levels of operationalisation for individual States. It is expected, that in the Ninth Plan, the States would devolve funds on the panchayats both from the Consolidated Funds of the States and the allocations made by the Central Government for Centrally Sponsored Schemes. In addition, the panchayats have to be given their own revenue raising powers, as per the recommendations of the State Finance Commissions. It is expected that village level plans would be prepared, based on the felt needs of the people as articulated in the Gram Sabha meetings. These plans would be incorporated into the intermediate level plans and finally merged into a district plan. This district plan would then enable the dovetailing of funds from the various sectoral poverty alleviation and area development programmes. In this way, development planning would begin from below reflecting the aspirations of the people within the constraints of the available physical and financial resources. 2.1.148 Voluntary organisations would also play an enhanced role especially as facilitators and social animators in bringing about greater awareness through advocacy. They would also help the poor to form self-help groups with the objective of improving their economic status through concerted action. In this way the PRIs, the voluntary organisations and the community would work in tandem to bring about greater development at the local level and consequent reduction in poverty levels. Annexure - I Financial performance under Integrated Rural Development Programme (IRDP) during Eighth Plan (1992-93 to 1996-97) (Rs in Crore) ------------------------------------------------Year Total Expen%age Allocation diture Expd.

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------------------------------------------------1992-93 662.22 693.08 104.66 1993-94 1093.43 956.65 87.49 1994-95 1098.22 1008.32 91.81 1995-96 (Prov) 1097.21 1077.16 98.17 1996-97 (Prov) 1097.21 1139.49 103.85 ------------------------------------------------Total 5048.29 4874.70 96.56 ------------------------------------------------Physical performance under IRDP during Eighth Plan (1992-93 to 1996-97) Lakh Families ------------------------------------------------Year %age Target Achievement Ach. ------------------------------------------------1992-93 18.75 20.69 110.35 1993-94 25.70 25.39 98.79 1994-95 21.15 22.15 104.73 1995-96(Prov) No Target 20.89 1996-97 (Prov) No Target 19.12 ----------------------------------------------Total 108.24 ----------------------------------------------Annexure - II Financial and Physical performance under Training of Rural Youth For Self Employment (TRYSEM) during Eighth Plan (1992-93 to 1996-97) - Yearwise (No. in Lakh) ------------------------------------------------------------------------------Year No.of No.of No. of No. of Total Recurring Youth to Youth to Youth Youth youth Expenses be trained trained SelfWage Employed (Rs.in Employed Employed Crore) ------------------------------------------------------------------------------1992-93 3.00 2.76 0.99 0.42 1.41 47.50 1993-94 3.50 3.04 1.08 0.43 1.51 55.02 1994-95 3.18 2.82 0.86 0.45 1.31 68.46 1995-96 (Prov) 3.02 0.98 0.48 1.46 98.83 1996-97 (Prov) 3.64 1.31 0.52 1.83 100.27 -------------------------------------------------------------------------------

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Total 15.28 5.22 2.30 7.52 370.08 -------------------------------------------------------------------------------

Annexure - III Financial performance under Supply of Improved Toolkits to Rural Artisans during Eighth Plan - Yearwise (Rs in Crore) ----------------------------------------------Year Total Expen%age Allocation diture Expd. ----------------------------------------------1992-93 16.85 13.86 82.26 1993-94 23.22 18.60 80.10 1994-95 29.00 22.91 79.00 1995-96 (Prov) 40.00 28.69 71.73 1996-97 (Prov) 40.00 32.13 80.33 ----------------------------------------------Total 149.07 116.19 77.94 -----------------------------------------------

Physical performance under Supply of Improved Toolkits to Rural Artisans during Eighth Plan - Yearwise (Toolkits distributed in Lakhs) ----------------------------------------------Year Target Achievement %age Ach. ----------------------------------------------1992-93 0.98 0.83 84.69 1993-94 1.29 1.09 84.50 1994-95 1.61 1.25 77.64 1995-96(Prov) 2.22 1.53 68.92 1996-97(Prov) 2.22 1.40 63.06 ----------------------------------------------Total 8.32 6.10 73.32 -----------------------------------------------

Annexure - IV
Financial and Physical performance under Development of Women and Children in Rural Area (DWCRA) during Eighth Plan (1992-93 to 1996-97) - Yearwise -----------------------------------------------------------------------Year Target Achievement %age No. of Utilisation

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(No.of AchieWomen of funds Groups vement Benefitted (Rs in Formed) Crore) -----------------------------------------------------------------------1992-93 7500 9029 120.39 128744 15.48 1993-94 11000 15483 140.75 268525 23.65 1994-95 13400 37964 283.31 592026 31.00 1995-96 (Prov) 30000 37565 125.22 697088 63.65 1996-97 (Prov) 30000 41345 137.82 580434 56.94 -----------------------------------------------------------------------Total 91900 141386 153.85 2266817 190.72 -----------------------------------------------------------------------(No.of Groups)

Annexure - V
Financial performance under Jawahar Rozgar Yojana (JRY) during Eighth Plan (1992-93 to 1996-97) - Yearwise Rs in Crore) ----------------------------------------------------------------------------------Year Total Allocation(Centre+State) Total Expenditure %age ------------------------------- ----------------------------ExpenIst IInd Total Ist IInd Total diture Stream Stream JRY Stream Stream JRY ----------------------------------------------------------------------------------1992-93 3169.05 3169.05 2709.59 2709.59 85.50 1993-94 3181.22 878.20 4059.42 3590.21 288.50 3878.71 95.55 1994-95 3498.72 878.20 4376.92 3359.88 908.45 4268.33 97.52 1995-96(Prov) 4348.70 500.00 4848.70 3966.08 493.41 4459.49 91.97 1996-97(Prov) 2236.79 2236.79 2156.93 2156.93 96.43 ----------------------------------------------------------------------------------Total 16434.48 2256.40 18690.88 15782.69 1690.36 17473.05 93.48 ----------------------------------------------------------------------------------Physical performance under Jawahar Rozgar Yojana (JRY) during Eighth Plan (1992-93 to 1996-97) - Yearwise Employment Generated in Lakh Mandays -----------------------------------------------------------------------------------

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Year %age Achievement Ist Target Achievement

------------------------------- ----------------------------IInd Total Ist IInd Total

Stream Stream JRY Stream Stream JRY ----------------------------------------------------------------------------------1992-93 7537.95 7537.95 7821.02 7821.02 103.76 1993-94 10383.26 10383.26 9523.45 734.95 10258.4 98.80 1994-95 7997.37 1868.08 9865.45 7453.59 2063.48 9517.07 96.47 1995-96(Prov) 8042.80 437.25 8480.05 7955.89 991.27 8947.16 105.51 1996-97(Prov) 4141.37 4141.37 3819.14 3819.14 92.22 ----------------------------------------------------------------------------------Total 38102.75 2305.33 40408.08 36573.09 3789.70 40362.79 99.89 -----------------------------------------------------------------------------------

Annexure - VI Financial and Physical performance under Employment Assurance Scheme (EAS) during Eighth Plan (1992-93 to 1996-97) - Yearwise (Rs. in crore) ----------------------------------------------------------Year Total Expen%age Physical Release diture Expd. Achievement (Centre + (Employment State) in Lakh Mandays) ----------------------------------------------------------1992-93 1993-94 548.77 183.75 33.48 494.74 1994-95 1410.25 1235.45 87.61 2739.56 1995-96 (Prov) 2131.64 1720.61 80.72 3465.27 1996-97 (Prov) 2423.99 2138.35 88.22 3986.45 ----------------------------------------------------------Total 6514.65 5278.16 81.02 10686.02 ----------------------------------------------------------EAS is a Demand Driven scheme, therefore no prior Statewise allocations are made.

Annexure - VII

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Financial and Physical performance under Million Wells Scheme (MWS) during Eighth Plan (1992-93 to 1996-97) - Yearwise (Rs. in crore) ----------------------------------------------------------Year Total Expen%age Physical Allocation diture Expd. Achievement (Centre + (Wells ConsState) tructed in Number) ----------------------------------------------------------1992-93 605.33 534.05 88.22 180995 1993-94 954.37 639.74 67.03 151673 1994-95 1049.62 776.18 73.95 158780 1995-96 (Prov) 559.07 538.29 96.28 142685 1996-97 (Prov) 559.07 498.77 89.21 103196 ----------------------------------------------------------Total 3727.46 2987.03 80.14 737329 -----------------------------------------------------------

Annexure - VIII
Financial Performance under National Social Assistance Programme (NSAP) - 1995-96 (Rs.Crores) --------------------------------------------------------------Prog. O.B. as Total Total Total Total %age on 1.4.95 AlloRelease AvailExpend. Expend. cation able w.r.t. Fund Total (Col. Available 2+4) Fund --------------------------------------------------------------1 2 3 4 5 6 7 --------------------------------------------------------------NOAPS 297.07 216.71 216.71 119.58 55.18 NFBS 154.49 105.07 105.07 38.01 36.18 NMBS 87.37 58.71 58.71 26.18 44.59 --------------------------------------------------------------Total 538.93 380.49 380.49 183.77 48.30 ---------------------------------------------------------------

Financial Performance under NSAP - 1996-97 (Rs.Crores) --------------------------------------------------------------Prog. O.B. as Total Total Total Total %age on 1.4.96 AlloRelease AvailExpend. Expend. cation able w.r.t.

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Fund Total (Col. Available 2+4) Fund --------------------------------------------------------------1 2 3 4 5 6 7 --------------------------------------------------------------NOAPS 97.53 507.61 373.82 471.35 267.31 56.71 NFBS 67.36 263.80 106.89 174.25 73.88 42.40 NMBS 32.64 144.80 67.58 100.22 42.31 42.22 --------------------------------------------------------------Total 197.53 916.21 548.29 745.82 383.50 51.42 ---------------------------------------------------------------

Physical Performance under NSAP during 1995-96 and 1996-97 (In Numbers) --------------------------------------------------------------Prog. 1995-96 1996-97 ------------------------- ------------------------Numeri- Benefi%age Numeri- Benefi%age cal ciaries Achiecal ciaries AchieCeiling covered vement Ceiling covered vement --------------------------------------------------------------1 2 3 4 5 6 7 --------------------------------------------------------------NOAPS 3119077 5371600 4381712 81.57 NFBS 78607 456800 131796 28.85 NMBS 676647 4596700 1267495 27.57 --------------------------------------------------------------NOAPS - National Old Age Pension Scheme. NFBS - National Family Benefit Scheme. NMBS - National Maternity Benefit Scheme.

2.2 URBAN POVERTY ALLEVIATION 2.2.1 Poverty reduction is an important goal of the urban policy. Urban growth is a result of (1) natural increase in population (2) net migration from rural areas to urban areas and (3) reclassification of towns. The common notion that migration largely fuels urban growth is only partially correct. Therefore, it is necessary to view urban poverty as distinct from rural poverty and not as mere transfer of rural poverty into urban areas. Urban poverty leads to : (a) proliferation of slums and bustees; (b) fast growth of the informal sector; (c) increasing casualisation of labour; (d) increasing pressure on civic services; (e) increasing educational deprivation and health contingencies. The Urban Poverty Alleviation Programmes (UPAPs) which were in operation during eighth plan are as follows:

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Nehru Rozgar Yojana (NRY) 2.2.2 In order to alleviate the conditions of urban poor, a Centrally Sponsored programme - Nehru Rozgar Yojana - was launched at the end of the Seventh Five Year Plan (October 1989) with the objective of providing of employment to the urban unemployed and underemployed poor. The Central Government indicated its overall contribution while the essential task of identifying, earmarking and coordinating the relevant sectoral inputs was undertaken by the State Governments. The NRY consisted of three schemes namely (i) the Scheme of Urban Micro Enterprises (SUME); (ii) the Scheme of Urban Wage Employment (SUWE); and (iii) the Scheme of Housing and Shelter Upgradation (SHASU). The physical and financial details of the implementation of these Schemes are at Annexure-I and Annexure-II respectively. During the Eighth Plan, 92% of the available funds were utilised and but for the shortfall in the number of dwelling units upgraded/in progress under SHASU, the targets have been achieved under all the other schemes. Urban Basic Services for the Poor (UBSP) 2.2.3 The UBSP Programme was implemented as a Centrally Sponsored Scheme during the Eighth Five Year Plan with the specific objectives of effective achievement of the social sector goals; community organisation, mobilisation and empowerment; and converence through sustainable support system. The expenditure on the Programme was being shared on a 60:40 basis between the Central and the State Governments and UTs (with legislatures). Further, the per capita expenditure on any slum pocket is Rs.75/- in the first year and Rs.50/- from the second year onwards after the basic infrastructure is developed. The UBSP was targetted to cover 70 lakh urban poor beneficiaries in 500 towns during the Eighth Plan period. The Programme has achieved the physical target of 70 lakh beneficiaries during the Eighth Plan period in 350 towns. Against the release of the Central share of Rs.8090 lakh, the release of the State share was Rs.3439.64 lakh. As on 31.03.1997, 353 towns and 4993 slum pockets have been selected for coverage and 75 lakh beneficiaries have been covered. Prime Minister's Integrated Urban Poverty Eradication Programme (PM IUPEP) : 2.2.4 Recognising the seriousness and complexity of urban poverty problems, especially in the small towns where the situtation is more grave due to lack of resources for planning their environment and development, the PMI UPEP was launched in November, 1995. The PM IUPEP was a Rs.800 crore scheme approved for the period up to the year 2000. Programme was applicable to all Class II urban agglomerations with a population ranging between 50,000 and 1 lakh subject to the condition that elections to local bodies have been held. The Programme was being implemented on a wholetown/ project basis extending the coverage to all the targetted groups for recuring a visible impact. During 199596 and 1996-97, Rs.176.40 crore were released to the States/UTs. Most of the States are in the preparatory stages of the Programme, such as house-to-house survey, patial mapping, need assessment, developing lternative project reports, building community structures etc., which take quite some time. The physical achievements as reported by the States are as under: a. House-to-house survey has been completed in 213 towns. b. Town-wise project reports have been prepared for 229 towns. c. Under the self-employment component, 20775 applications have been forwarded to banks, out of which 3080 cases have been approved.

d. Under the Shelter Upgradation Component, 10386 applications have been forwarded to banks/HUDCO, out of which 4743 cases have been approved by HUDCO. e. As many as 8382 Neighbourhood Groups, 1200 Neighbourhood Development Committees and 444 Thrift and Credit Societies have been formed. 2.2.5 The performance of the UPAPs in the Eighth Five Year Plan reveals:

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that although urban poverty is no less severe than rural poverty, the priority accorded to alleviation of urban poverty is low as the common perception is that urban poverty is a transfer of rural poverty into urban areas; that UPAPs are highly fragmented and have overlapping objectives and strategies. that integration of UPAPs with sectoral development and area development programmes has been overlooked. that the role of voluntary organisations and community based organisation in planning and implementation of UPAPs is on the periphery.

2.2.6 The Planning Commission's (Modified Expert Group) estimates of urban poverty show a decline in the percentage of urban poor from 38 percent (1987-88) to 32.36 percent (1993-94). As per the Modified Expert Group the number of urban poor is 763.37 lakh in 1993-94. The Hashim Committee, which was set up to review and rationalise Centrally Sponsored Schemes for poverty alleviation and employment generation, had gone into the question of rationalisation of the existing poverty alleviation programmes and recommended that:1. the self-employment component of NRY and PMIUPEP be combined into a single programme valid for all the urban areas all over the country; The Planning Commissions (modified Expert Group) estimates of urban poverty show a decline in the percentage of urban poor from 38 percent (1987-88) to 32.36 percent (1993-94). As per the Modified Expert Group the number of urban poor is 763.37 lakh in 1993-94. The Hashim Committee, which was set up to review and rationalise Centrally Sponsored Schemes for poverty alleviation and employment generation, had gone into the question of rationalisation of the existing poverty alleviation programmes. Based on the recommendation of the Committee the Swarna Jayanti Shahari Rozgar Yojana (SJSRY) has been launched with effect from 1.12.97 and NRY, PMIUPEP and UBSP have been phased out. The programme has two sub-schemes namely, (a) Urban Self Employment Programme and (b) Urban Wage Employment Programme. The self-employment and wage employment components of the NRY and PMIUPEP have been re-organised under this single programme. The shelter upgradation components of both NRY and PMIUPEP has been merged with the National Slum Development Programme.

2. the urban wage employment component as well as the physical infrastructure development component under the NRY and the PMIUPEP be merged and be made applicable to all the urban areas with a population less than 5 lakhs. This component may be separated from the self-employment component as a separate scheme with a distinct identity; and 3. the shelter upgradation/housing component under NRY and PMIUPEP be retained either as a separate scheme or merged with the Slum Development/Basic Services Schemes operating at present. The Swarna Jayanti Shahari Rozgar Yojana (SJSRY): 2.2.7 In pursuance of the above recommendations, during the Ninth Plan it is proposed to launch the Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and phase out NRY, PMIUPEP and UBSP. The SJSRY is to be a Centrally Sponsored Scheme applicable to all the urban areas with expenditure to be shared in ratio 75:25 between the Centre and States/UTs. The programme has become operational on December

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1, 1997. This programme would have two sub-schemes, namely, (i) UrbanSelf-Employment Programme and (ii) Urban Wage Employment Programme. The self-employment and wage employment components of the existing NRY and PMIUPEP have been reorganised under this single programme. Further,the shelter upgradation components of both NRY and PMIUPEP will be merged with the National Slum Development Programme. 2.2.8 The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) seek to provide gainful employment to the urban unemployed or underemployed poor by encouraging the setting up of self-employment ventures or provision of wage employment. This programme will rely on the creation of suitable community structures on the UBSP pattern and delivery of inputs under this programme will be through the medium of urban local bodies and similar community institutional structures. 2.2.9 The Swarna Jayanti Shahari Rozgar Yojana rests on the foundation of community empowerment. Towards this end, community organisations like Neighbourhood Groups (NHGs), Neighbourhood Committees (NHCs) and Community Development Societies (CDSs) will be set up in the target areas based on the UBSP pattern. The CDSs will be the focal point for purposes of identification of beneficiaries, preparation of applications, monitoring of recovery and generally providing whatever other support is necessary to the programme. The CDSs will also identify viable projects suitable for that particular area. 2.2.10 These CDSs may also set themselves up as Thrift and Credit Societies to encourage community savings, as also other group activities. A maximum expenditure at the rate of Rs.100 per member for the first year and Rs.75 per member for each subsequent year will be allowed for activities connected with the CDSs. The Urban Self Employment Programme (USEP): 2.2.11 This programme will have three distinct components:i. ii. assistance to individual urban poor beneficiaries for setting up gainful self-employment ventures. assistance to groups of urban poor women for setting up gainful self-employment ventures. This sub-scheme may be called "The Scheme for Development of Women and Children in the Urban Areas (DWCUA)". training of beneficiaries, potential beneficiaries and other persons associated with the urban employment programme for upgradation and acquisition of vocational and entrepreneurial skills.

iii.

Coverage: i. ii. The programme will be applicable to all urban towns in India. The programme will be implemented on a whole town basis with special emphasis on urban poor clusters.

Target Groups: i. ii. The programme will target the urban poor,i.e those living below the urban poverty line, as defined from time to time. Special attention will be given to women, persons belonging to Scheduled Castes/Tribes, disabled persons and other such categories as may be indicated by the Government from time to time. The percentage of women beneficiaries under this programme will not be less than 30 per cent. The SCs and STs must be benefited at least to the extent of their proportion in the local population. A special provision of 3 percent will be reserved for the disabled under this programme.

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iii. There will not be any minimum educational qualification set for beneficiaries under this programme. However, to avoid an overlap with the PMRY scheme, for self- employment component, this scheme will not apply to beneficiaries educated beyond the IX standard. As regards the wage employment component, there will be no restrictions of educational qualifications whatsoever. A house-to-house survey for identification of genuine beneficiaries will be undertaken. Noneconomic parameters will also be applied to identify the urban poor in addition to the economic criteria of the urban poverty line.

iv.

2.2.12 All other conditions being equal, women beneficiaries belonging to women-headed households will be ranked higher in priority than other beneficiaries. COMPONENTS: (i) Self-employment through setting up Micro-enterprises and Skill development: 2.2.13 To avoid duplication with the ongoing Prime Minister's Rozgar Yojana (PMRY), this component of SJSRY is confined to the below poverty line beneficiaries who have no education upto ninth standard, with emphasis on those accorded a higher priority on the basis of the non-economic critera. The maximum unit cost will be Rs.50,000 and the maximum allowable subsidy will be 15 percent of the project cost, subject to a limit of Rs.7,500. The beneficiary is required to contribute 5 percent of the project cost as margin money. In case a number of beneficiaries decide to jointly set up a project, such project will be eligible for a subsidy which will be equal to the total of the permitted subsidy per person as per the above criteria. In this case too the provision relating to 5 percent margin money per beneficiary will apply. The overall project cost, which can be permitted, will be the total of the individual project cost allowable per beneficiary. 2.2.14 Skill development through appropriate training is another element of this programme. The unit cost allowed for training will be Rs.2000 per trainee, including material cost, trainers' fees, other miscellaneous expenses to be incurred by the training institution and the monthly stipend to be paid to the trainee. The total training period for skill upgradation may vary from two to six months, subject to a minimum of 300 hours. 2.2.15 Infrastructural support may also be provided to the beneficiaries setting up micro-enterprises in relation to marketing of their products etc. (ii) Development of Women and Children in Urban Areas (DWCUA): 2.2.16 This scheme is distinguished by the special incentive extended to urban poor women who decide to set up self-employment ventures as a group as opposed to individual effort. Groups of urban poor women will take up an economic activity suited to their skill, training, aptitude and local conditions. Besides generation of income, this group strategy will strive to empower the urban poor women by making them independent as also providing a facilitating atmosphere for self-employment. To be eligible for subsidy under this scheme, the DWCUA group should consist of at least 10 urban poor women. Financial Pattern 2.2.17 The DWCUA group society will be entitled to a subsidy of Rs.1,25,000 or 50% of the cost of project whichever is less. 2.2.18 Where the DWCUA group sets itself up as a Thrift and Credit Society, in addition to its other entrepreneurial activity, the group/Thrift and Credit society will also be entitled to a lump sum grant of

176
Rs.25,000 as a revolving fund at the rate of Rs.1000 maximum per member. This revolving fund will be available to a simple Thrift and Credit Society also even if the society is not engaged in any project activity under DWCUA. The Urban Wage Employment Programme (UWEP): 2.2.19 This programme seeks to provide wage employment to beneficiaries living below the poverty line within the jurisdiction of urban local bodies by utilising their labour for construction of socially and economically useful public assets. 2.2.20 This programme will apply to urban local bodies, the population of which is less than 5 lakhs as per the 1991 Census. 2.2.21 The material-labour ratio for works under this programme will be maintained at 60:40. The prevailing minimum wage rate, as notified from time to time for each area, will be paid to the beneficiaries under this programme. 2.2.22 This programme will be dovetailed with the State sector EIUS scheme as well as the National Slum Development Programme (NSDP). This programme is not designed to either replace or substitute the Environmental Improvement Of Urban Slums (EIUS), the NSDP, or any other State sector schemes. Project Administration : 2.2.23 At the community level, a Community Organiser(CO) will be appointed for about 2000 identified families. The Community Organiser should, as far as practicable, be a woman. 2.2.24 At the town level, there will be an Urban Poverty Eradication Cell under the charge of a Project Officer. The Project Officer will be responsible for coordinating the activities of all the CDSs and COs. 2.2.25 At the district level, the State Government will constitute a District Urban Development Agency (DUDA) with an officer designated as the District Project Officer. 2.2.26 At the State level, there will be a State Urban Development Authority (SUDA), which will be headed by a full-time senior officer of the State Government. The SUDA will be designated as the State Nodal Agency for urban anti poverty programmes. 2.2.27 At the national level, the Department of Urban Employment and Poverty Alleviation will be the nodal department. The programme will be monitored and overseen by the UPA Division. 2.2.28 The Ninth Plan, in particular, needs to focus on the effective implementation and management of urban poverty alleviation programmes (UPAPs). Targetting of urban poor is essential for the success of any anti-poverty programme. Therefore, the UPAPs should be designed to accomodate flexibility in operation. The key components of the Ninth Plan strategy would be: effective targetting using either a self-identification system or a selection process by institutions responsible for financing and managing UPAPs as faulty targetting will enhance income inequalities. a "bottom up" approach should be adopted for UPAPs which should be routed through community based organi- sations. There should be effective participation of community institutions for extending loans and for aiding loan recoveries made under UPAPs. since the problem of urban poverty is a manifestation of the higher incidence of marginal and low income employment in the informal sector, it is essential to upgrade informal sector occupations.

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Hence there is a need for emphasis on generation of self-employment in processing and services sector, improving the acccess to technology and credit and above all improving the general legal and physical environment which governs the working of the informal sector. 2.2.29 The policy framework adopted by the Government of India also mentions that "a frontal attack on poverty is an important element in development policy. This is the main rationale for anti-poverty programmes".

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ANNEXURES Annexure-I
NEHRU ROZGAR YOJANA FINANCIAL PERFORMANCE
(Rs in lakh)

-------------------------------------------------------------------------------Scheme/ Funds available Expenditure Percent Component during VIII Plan (upto 31.3.97) (Central+State) 1992-93 to 1996-97 -------------------------------------------------------------------------------SUME(Subsidy) 15625.26 16467.40 105 SUME(T & I) 3848.48 2738.40 71 SUWE 19703.05 19618.43 99 SHASU(Subsidy) 5124.73 5090.09 99 SHASU(T & I) 1684.46 1206.14 72 A & OE 3866.70 ) ) ULBs 2844.99 ) 8232.02 4683.29 57 ) NGOs 1520.33 ) ------------------------------------------------------------------------------TOTAL 54218.00 49803.75 92 ------------------------------------------------------------------------------^^ Top

Annexure-II NEHRU ROZGAR YOJANA Physical targets and achievement

(in lakhs) upto 1991-92 1992-93 T No.of 2.87 beneficiaries assisted to A 1.42 T A 1993-94 T A 1994-95 T A 1995-96 T A 1996-97 T A Grand Total T A 9.10

0.92 2.37 1.25 1.52 1.02 1.25 1.17 1.25 0.87 1.29 8.10

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set up micro enterprises Persons trained/unde r going 0.68 training under SUME

0.48

0.32 0.41 0.42 0.31 0.34 0.38 0.40 0.46 0.30 0.46 2.46

2.50

Mandays of work 257.8 195.2 63.7 76.2 50.8 72.1 41.1 50.8 36.2 54.6 33.7 483.5 generated 9.57 458.70 4 4 4 7 4 7 2 5 2 4 4 0 under SUWE No. of dwelling units upgraded/in 2.85 progress under SHASU

0.28

1.77 2.28 1.76 0.56 1.60 0.62 -

0.23 -

0.87 7.98

4.80

Mandays of work 246.8 94.7 64.2 91.8 51.5 65.0 13.1 generated 18.16 7 6 2 9 0 0 1 under SHASU Persons trained/unde r going 0.62 training under SHASU

38.3 1

47.4 498.2 232.00 6 2

0.15

0.16 0.17 0.16 0.17 0.15 -0.05 0.15 0.21 -

0.16 1.24

0.81

T=Target A=Achievement

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2.3 PUBLIC DISTRIBUTION SYSTEM Introduction 2.3.1 The Public Distribution System (PDS) is the key element of the Government's food security system in India. It is an instrument for ensuring availability of certain essential commodities at easily affordable prices especially for the poor. The Government, via the Food Corporation of India (FCI), procures and stocks foodgrains which are released every month for distribution through the PDS network across the country. In addition to sugar, edible oils and kerosene, foodgrains, mainly rice and wheat, are distributed to the public via a network of Fair Price Shops (FPS). The system of procurement is also used by the Government of India to provide minimum support prices to the farmers so as to stabilise farm output and income. To begin with, in the sixties efforts were made to procure rice and wheat not only for normal distribution through Fair Price Shops under the PDS but also to maintain buffer stocks, which were built in the years of good production to tide over the periods of lean production. In the eighties, given the increases in the foodgrains production and the resilience in the agricultural production scenario, the Government of India decided to operate a system whereby certain norms were fixed regarding the quantities to be held by the Food Corporation of India at different points of time during the year, thus merging the stocks meant for normal distribution and buffer stocks. 2.3.2 The PDS, till recently, has been a general entitlement scheme to all consumers without any targetting. On an average, about 15-16 million tonnes of foodgrains are issued by the FCI to the States at a uniform Central Issue Price (CIP) which is much less than the economic cost incurred by the Central Government by way of procurement, storage, transport and distribution. The difference between the economic cost and the CIP, called the consumer subsidy, is borne by the Central Government through its annual non-Plan budget. In addition to this, as mentioned above, the FCI maintains a large buffer stocks of foodgrains, which entails a substantial carrying cost. The consumer subsidy and the carrying cost of the buffer stock together add up to the total food subsidy. The total food subsidy, which was of the order of Rs.2000 crore in 1987-88, has gradually increased to the level Rs.7500 crore during the year 1997-98. Despite the mounting food subsidy bills, various evaluation studies of the PDS have shown that the system has failed to translate the macro level self sufficiency in foodgrains achieved by the country into household level food security for the poor. In a system with access to all, rich and poor alike, the quantum of PDS supply to each household formed only a small proportion of a family's total requirement. The increases in the Minimum Support Prices (MSP) effected over the years, which were considered necessary by the Government to keep up the production of foodgrains, led to corresponding increases in the consumer prices in the PDS, adversely affecting the economic access of the poor to the PDS foodgrains. Another fall out of the universal PDS has been that the States with the highest incidence of poverty, viz Orissa, Bihar, Madhya Pradesh and Uttar Pradesh are the ones whose per capita PDS offtake has been the lowest. It thus became clear that the PDS, which existed till recently, did not serve the poor well, especially in the poorer States. In view of the mounting food subsidy in recent years, coupled with the fact that the PDS did not reach the poor, a view has emerged that the universal coverage of the PDS is neither sustainable nor desirable. One of the central concerns of the economic reform process, that was initiated in 1991, is to limit the quantum of explicit and implicit subsidies as well as other forms of non-Plan expenditure, while at the same time raising both tax and non tax revenues. The unbridled growth of non-Plan expenditure in relation to the revenues during the decade of the eighties had brought about a severe fiscal imbalance, with a rapid build up of public debt and mounting interest burdens. It is in the context of correcting this macro economic imbalance that the view of curbing subsidies to the barest minimum emerged. While recognising the need to curb subsidies in general, it is important to recognise the need to provide foodgrains at affordable prices to the bottom rungs of the population, whose well being ought to be at the core of the Government's food security programme. One of the most important determinants of the changes in India's poverty level is the price of foodgrains which has a major impact on the real income, especially for the relatively poorer sections whose incomes are very largely spent on foodgrains. For example, at the all- India level the people spend on an average about 63% of their total expenditure on food in the rural areas and about 55% in the urban areas. Of the expenditure incurred on

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all food items the expenditure on foodgrains accounts for 45% in the rural areas and about 32% in the urban areas. The bottom 30-40% of the population spend over 70% of the total expenditure on food. Of their expenditure on food, the bottom 30-40% of the population spend about 50% on foodgrains in the rural areas and over 40% in the urban areas. In view of the fact that the poor devote a substantial part of their expenditure on foodgrains, it is essential to protect them from a continuous upward pressure on foodgrains prices, a phenomenon in-built in our system of procurement prices which need an annual increase as an incentive for increasing production. If the poor are not protected from the impact of the ever increasing pressures on prices of foodgrains through a subsidised PDS, the impact of many of the poverty alleviation measures and programmes would get neutralised. In other words, a system of food subsidy is an essential element of food security strategy. The challenge, however, is to contain the total food subsidy to the minimum necessary by devising a system of targeting so that the subsidies benefit only those sections whom the State wants to protect. The challenge lies in the fact that by international comparison most Indians are poor and most of them devote a substantial part of their expenditure on foodgrains. So naturally, there is a pressure to have a subsidised PDS with an almost open ended coverage. Open ended coverage, however, cannot be continued, not only because of its massive implication for the total volume of food subsidy but also because of the enormous price distortions that is implicit in an open ended, heavily subsidised PDS. Targetting Public Distribution System: Recommendations of the Working Groups(WG) 2.3.3 The logic of a targeted PDS described above was enunciated in the Report of the Working Group on National Policy on Public Distribution System (June, 1996) set up in the Planning Commission in August, 1995. The Working Group after discussing various forms and experiences of targeting, such as, through wage employment programmes (JRY,EAS etc), area-based targeting (ITDP, RPDS), exclusion of nonpoor and the system of food stamps prevalent in some countries, suggested a scheme of allocation of foodgrains out of the Central Pool to the States at two sets of prices, namely, a highly subsidised price for the allocations meant for the poor and near open market prices for the non-poor. The recommendations of the Working Group are given in Box. Recommendations of the Working Group on National Policy on Public Distribution System The Central Government should adopt the Planning Commission's estimates of the proportion of population below the poverty line (BPL) available for 1987-88 as the criteria for allocating a feasible annual level of foodgrains to States/UTs for a targeted PDS. Based on the levels of procurement and allocations/offtake of foodgrains in the past, the Central Government should maintain an annual allocation level of 15 million tonnes. Earmark about 80% of the annual allocation i,e around 12 million tonnes for distribution to the States/UTs on the basis of their share of BPL population . This will work out to an availability of 20 kgs per month per BPL household. 12 million tonnes of foodgrains meant for the BPL population should be issued to the States at highly subsidised prices and allocations to any State over and above this at near open market prices. A ceiling limit should be imposed for each State based on the highest offtake of foodgrains in the past ten years. The States should be allowed full freedom to decide on the mode of distribution, pricing, identification of beneficiaries etc.

2.3.4 The Working Group also worked out the subsidy implications of the proposed targetted PDS. Distribution of 12 million tonnes of foodgrains to an estimated BPL population of 250 million (based on

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29.9% BPL proportion applied on 1991 population census figure) worked out to a per capita availability of 20 kgs per poor household per month. The Working Group was of the view that the targetting exercise would be meaningless if the benefit through PDS supply was insignificant. Therefore, it suggested that the monthly savings to a beneficiary household should be at least around Rs.50.00 per month on the purchase of 20 kgs of foodgrains through the PDS. This worked out to an unit subsidy of Rs.2.50 per kg. At the time of the deliberations of the Working Group (1995-96), the weighted average Central Issue Price (CIP) of foodgrains worked out to a little over Rs.5.00 per kg. Thus, in effect the Working Group suggested an issue price for BPL population at half the normal CIP. The subsidy requirement per annum for 12 million tonnes worked to an additional Rs.3000 crore. Since the normal CIP of about Rs.5.00 per kg already involved an unit subsidy of about Rs.2.00 per kg, the actual consumer subsidy would have been Rs.4.50 per kg at 1995-96 costs and prices and the total subsidy would have been Rs.5400 crore. As the non-poor were required to purchase foodgrains at near open market price which was close to the economic cost of foodgrains to the FCI, no additional subsidy was involved on this account. Targetted Public Distribution System (TPDS): - As Implemented 2.3.5 The principles enunciated by the Working Group were adopted by the Government while implementing the TPDS w.e.f. 1st June, 1997. However, the numbers and dimensions of TPDS as implemented differ greatly from those contained in the Report of the Working Group. Under the TPDS, a quantity of 10kgs of foodgrains per family per month is being issued at highly subsidised rates to the States on the basis of the number of BPL families as against 20 kgs recommended by the Working Group. One of the reasons that forced the Government to reduce the scale of the ration to BPL is that the number of BPL families had increased tremendously following the acceptance of the methodology of the Expert Group under Professor Lakdawala for estimation of poverty by the Government in March, 1997. Based on this methodology, the Planning Commission estimated the proportion of BPL population for 1993-94 at 35.97% as against 29.9% (1987-88) relied on by the Working Group. To arrive at the number of BPL population under TPDS, the Government applied the revised BPL percentage of 35.97 on the projected population of 1995 as against 1991 population adopted by the Working Group. As a consequence of the changed numbers, the number of BPL families increased to 58.7 million as against 50 million estimated by the Working Group. The second reason for reducing the scale of ration for BPL was that the TPDS envisaged the continuance of a substantial unit subsidy as well as allocations of foodgrains, for the Above Poverty Line (APL) or non-poor population as against no or little subsidy assumed by the Working Group. The allocations for the APL are however, transitory and based on the average 10 years' lifting which is in excess of the allocations for the BPL. The third reason for reducing the scale of ration of BPL is that unit subsidy for BPL had to be fixed a little higher than that envisaged by the Working Group in view of escalations in the economic cost of foodgrains between 1995-96 and 199697. It needs to be mentioned in this connection that the Government originally decided to fix the CIP at 50% of the economic cost for BPL and at 90% of the economic cost for APL population. In practice, it became difficult to stick to these percentages, which went down to about 40% of economic cost (1996-97) for BPL and 80% for APL. 2.3.6 The dimension of the TPDS being implemented since 1st June, 1997 is detailed Table 2.3.1.

Table 2.3.1 Targetted Public Distribution System 1997-98 -------------------------------------------------------------BPL APL Total -------------------------------------------------------------1. No.of Families (1995) lakh 586.64 Not Fixed Not Fixed 2.Allocations of Foodgrains (lakh tonnes) Total 70 104 174

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Rice Wheat Common Fine Super Fine Wheat 37 33 3.50 3.50 2.50 62 42 6.50 ) ) ) 7.50 ) 4.50 8.45 8.88 ) 9.27 )9.00 Weighted Average 7.61 1.85 3.10 99 75 7.15 Weighted Average

3. CIP (Rs/kg) Rice

4. Eco.Cost(Rs/kg)

Rice Common 8.45 Fine 8.88 S.Fine 9.27 5. Unit Subsidy (Rs/kg) 6. Total Subsidy (Rs/crore) Wheat Rice Wheat 7.61 5.50 5.10

Rice 2035 1147 3182 Wheat 1683 1302 2985 --------------------------------------------------------------------G. Total Foodgrains 3718 2449 6167 Subsidy (Rs/crore) ------------------------------------------------------2.3.7 The subsidy implication of the TPDS at current (1997-98) costs and prices as worked out above is a little over Rs.6000 crore, roughly the same as budgeted for 1997-98. This does not include a sum of about Rs.1500 crore towards the carrying cost of a reasonable volume of buffer stock. 2.3.8 Despite a very heavy subsidy burden, the TPDS has come in for severe criticism from various quarters including many State Governments. It has been argued that a scale of ration of 10 kgs per month per BPL family is grossly inadequate since the average requirement of a family is about 30 kgs per month. An unit subsidy of about Rs.5 per kg works to a subsidy of only Rs. 50 per month which is not sufficient to make a significant dent on poverty. It has been suggested that the scale of ration to BPL families should be raised to 20 kgs per month. Several State Governments have also expressed unhappiness that the quantum of overall allocations has been restricted to 10 years' average off-take, rather than the maximum of the allocations during the last 10 years. It has been suggested that the overall allocations to the States should be restored to the maximum level of 25.5 million tonnes achieved in 199697. Some of the State Governments have also represented that under poverty based allocations for BPL they are being penalised instead of being rewarded for bringing down their poverty ratios as compared to other States. Review of Targetted PDS 2.3.9 A review of the TPDS is necessary in order to make it acceptable to the participant States. A system which is acceptable to the States should also be sustainable over a period of time. Sustainability is a function of coverage, scale of allocations, unit economic cost of foodgrains and unit subsidy which together determine the amount of subsidy that the exchequer is required to bear. The key to sustainability lies in adhering to the principles of the targetted subsidy system, in particular the need for confining the subsidies to the BPL families and reducing them, and eventually eliminating them, for the APL families, as enunciated by the Working Group of the Planning Commission. Based on the current (1997-98) costs and prices, and other dimensions, the TPDS that may be acceptable to the States and sustainable from the point of view of the Central Government are outlined below.

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2.3.10 The most persistent complaint against the current TPDS is the very low scale of allocation @10kgs of foodgrains per BPL family per month. The scale needs to be raised to 20 kgs. The annual requirement of foodgrains @20kgs per month for an estimated 58.7 million BPL families (based on Expert Group Methodology and the projected population of 1995) comes to about 14 million tonnes, which needs to be earmarked. The second most important demand of the States is to restore the overall annual allocations to 25.5 million tonnes achieved in 1996-97. This means that about 11.5 million tonnes of foodgrains will have to be allocated to the APL population. 2.3.11 As per the principles enunciated by the Working Group, the BPL families will have to be issued foodgrains at half the normal CIP, which should be defined as equal to economic cost of foodgrains to the FCI. At current (1998-99) economic costs, the subsidy on 14 million tonnes of foodgrains meant for BPL comes to about Rs.6300 crore as per the details given in Table 2.3.2. 2.3.12 If the sustainable amount of subsidy is assumed to be Rs. 7500 crore (excluding the carrying cost of buffer stock), as has been budgeted for 1998-99, about Rs.1200 crore (7500-6300) only will be available for APL. This will be just enough to provide a subsidy of Re 1.00 per kg for an allocation of 11.5 million tonnes for the APL population. One fall out of the principle of pricing foodgrains at near economic cost for APL would be that there will be little demand from this section in normal times. With the market prices ruling at par with the economic cost, the consumers tend to rely more on the market than on the PDS. Therefore, it is expected that only a fraction of the allocation of 11.5 million tonnes will actually be lifted. Table 2.3.2 Subsidy At Half Economic Costs to BPL(1998-99) ---------------------------------------------Rice Wheat Total --------- -------- --------------------------1. Quantity 74 66 140 (LMT) @20 kg per month 2. Econ.Cost 10.00 8.00 (Rs/kg) 3. CIP (1/2 Eco. 5.00 4.00 cost)(Rs/kg) 4. Unit subsidy 5.00 4.80 5. Total subsidy (Rs/crore) 3700 2640 6340 ---------------------------------------------2.3.13 The second important key to sustainability is the periodic revision of economic cost following changes in any of its components, such as, procurement price, procurement incidentals and distribution cost. While all attempts should be made to reduce the economic costs, especially when they exceed the market price, and the FCI's operational system be constantly reviewed and monitored for the purpose, the need for revision of economic cost, which is inherently upwardly mobile, should not be overlooked. Otherwise, the subsidy burden, which is the gap between economic cost and CIP, will tend to rise and in no time exceed the sustainable limit. 2.3.14 In order to make the TPDS not only consistent with the principles of TPDS but also attractive to the States, a reasonable amount of additional subsidy of, say, Rs.500 crore, can be given to those States that succeed in reducing the level of poverty below the national average. For this purpose, a scheme can be introduced to distribute the additional subsidy as grant to the eligible States based on their relative share of BPL population who have been lifted out of poverty as a result of special efforts in bringing down their poverty ratios below the national average. Other important features of the current TPDS should be

185
retained and strengthened. One such feature relates to issue of subsidised foodgrains to all workers under EAS/JRY @1kg per manday. This is in addition to the entitlement under TPDS. Under this scheme, the TPDS envisages issues of "Food Coupons" to the beneficiaries to enable them to obtain foodgrains from the FPS, to which their normal family card is attached. Another important feature of the TPDS which should be retained and strengthened is the detailed operational scheme. In order to make the TPDS transparent and accountable and thereby plug the leakages, a number of steps have been prescribed. These include: (a) release of foodgrains to the States subject to satisfactory completion of identification of eligible families; (b) involvement of the Panchayats/Nagar Palikas in the identification exercise as well as for supervision of the work of the FPS, (c) constitution of Vigilance Committees at FPS, Taluka, District and State levels and (d) a system of monitoring and reporting on the working of the TPDS. 2.3.15 While the provision for food subsidy is made in the non-Plan budget of the Central Government, for strengthening the operational machinery of the PDS, the Planning commission provide funds under its plan programmes for the following schemes: 1. Construction of Godown 2. Purchase of Mobile Vans/Trucks

3. Training, Research and Monitoring.

2.3.16 The Godowns scheme is intended to assist the State Governments /UTs. for construction of small godowns of the capacity upto 2000 tonnes in interior areas where it is necessary to maintain adequate stocks to ensure regular supplies under PDS. Since 1983-84 this scheme was being implemented to supplement the resources of the State Governments. to augment the storage capacity in remote/inaccessible/hilly areas. Till 1991 the scheme was restricted to North Eastern States, Himachal Pradesh, Sikkim, J&K, Lakshadweep and Andaman & Nicobar Islands. With the launching of RPDS in January, 1992 the scheme was further extended to cover all the identified RPDS areas. In 1998, a decision was taken to extend the scheme to all such areas in the country where the need for such facilities may exist. Funds under the scheme are released for small godowns in places where Central agencies like CWC, FCI etc. do not operate. The present pattern of financial assistance is 50% loan and 50% subsidy. However, in the case of UTs without legislatures the entire assistance is in the form of subsidy only. The Mobile Vans scheme is intended to provide financial assistance to the State Governments /UT administrations for purchase of mobile vans/trucks for distributing essential commodities in rural/hilly/remote and other disadvantaged areas where static/regular Fair Price Shops are not found viable/feasible. Initially, an assistance of Rs.2.50 lakh was being provided for a delivery van/truck with 75% loan and 25% subsidy. With the liberalisation of the scheme during 1992-93 the subsidy component of the assistance was enhanced from 25% to 50% and the financial assistance per van/truck was also raised to Rs.4 lakh in the case of delivery van (for 4 tonner) and Rs.8 lakh for big truck ranging from 8-10 tonnes and above subject to the ceiling of actual cost whichever is lower. Under this scheme, vehicles can be used not only as mobile Fair Price Shops but also for effecting door delivery of PDS commodities to Fair Price Shops. The scheme is supplementary in nature as the running cost and its maintenance etc. are borne by the respective State Governments from their own budget. 2.3.17 The training scheme aims at strengthening and upgrading the skill of personnel engaged in PDS and also to improve the management of supplies. The efforts of the State Governments./UT administrations, Civil Supplies Corporations etc. are supplemented by providing financial assistance for organising training programmes on PDS. Evaluation studies, research studies on various aspects of PDS are also sponsored under the scheme. Provision also exists for organising workshops, seminars for various level officers/officials of States as well as Central Ministries/Organisations. Generally, the maximum Central Assistance for a week's training course is limited to Rs.50,000/-. The assistance for research/studies/seminars etc. however, depends on the size, merits of each case.

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