KHU 701 - Unit 1
KHU 701 - Unit 1
(KHU-801)
UNIT 1
Notes
Rural
Development
It refers to growth, or progress. This progress or growth is gradual and had sequential phases.
It also refers to the overall movement towards greater efficiency and complex situations.
Rural Development
Rural development is a process which aims at improving the well-being of people living outside
the urbanized areas. Rural development is a strategy designed to improve the economic and
1
Infrastructure: The basic systems and services such as transport, water and power
supplies should drastically improve. This also leads to a social divide between urban
Caste system: Stigmas like the caste system still have a grip on rural people. Education
Improving banking system: People should be given access to easy credit and loans by
Improving rural sanitation: Indians living in rural areas defecate in the open. So
Indian government should run programs so that rural sanitation can be improved.
People have certain basic needs; without which it would be impossible for them to survive.
The basic necessitates include food, clothes, shelter, basic literacy, primary health care and
security of life and property. When any one or all of them are absent or in critically short
supply, we may state that a condition of ‘absolute underdevelopment’ exists. Provision of the
basic necessities of life to everybody is the primary responsibility of all economies, whether
they are capitalist, socialist, or mixed. In this sense, we may claim that economic growth is a
necessary condition for improvement of the ‘quality of life’ or rural people, which is rural
development.
2. Self-Respect
Every person and every nation seeks some sort of self-respect, dignity or honour. Absence or
3. Freedom
2
Political or ideological freedom: Political freedom is the ability of a nation’s citizens to
influence and guide policy. For example, freedom of religion, freedom of speech.
a society to take economic actions. For example, free market (a free market is a system
in which the prices for goods and services are self-regulated by buyers and sellers
Freedom from social slavery: As long as the society is ignorant and bound by dogmatic
beliefs, it cannot claim to have achieved the goal of ‘development’. Slavery in any form
In India, the agricultural sector is easily influenced by the weather conditions. Technological
improvements can play a vital role in protecting agriculture from the effects of weather. Rural
societies are also characterised by large scale unemployment on the one hand and low
productivity on the other. Therefore, care has to be taken when new technologies are introduced
in rural areas. It is essential that newer technologies are adapted to rural societies and on the
other, it is necessary that existing technologies are extended to rural areas. Technological
planning, research and development are very vital ingredients of rural development.
Agriculture provides income and employment in rural areas. Needless to say, agricultural
planning is vital for rural development. The balanced growth of the agricultural sector can play
an important role in creating better conditions for those depending on this sector.
3
(iii) Employment Policy
programmes are required. Such programmes can stop fluctuations in rural incomes on account
of poor weather conditions. Agricultural employment is often seasonal. Under these conditions,
rural employment programmes can ensure better spread of employment throughout the year.
The growth of non-agricultural activity within the village economy can also relieve the pressure
In India the problem of illiteracy is particularly acute in rural areas. The lack of education can
act as a constraint in furthering rural development. Rural societies, are also characterised by
wide spread inequalities in the distribution of incomes and assets. The lack of education creates
a situation in which this problem is perpetuated. The spread of education on the one hand, can
enable the rural poor to ensure justice and, on the other, help them in actively participating in
Rural institutions need to be reformed and utilised for successfully carrying out rural
development. The institutional aspects of rural societies are often ignored when strategies are
formulated. The institutional structures such as panchayats need to be nurtured for rural
development.
These structures can act as powerful agents in actually implementing the development
strategies. Since rural settlements are spread out and are often isolated, they cannot be
panchayats can actually ensure that programmes are successfully implemented and that the
target group actually benefits from such programmes. Rural institutions such as banks and co-
4
(vi) Price Policy
The use of a price is also a crucial element in a rural development policy. Agricultural produce
has to be priced in such a manner that the farmers enjoy adequate returns. The price policy
through the use of subsidies can act as a means of providing essential items of mass
consumption to people residing in rural areas. This is particularly essential for those below the
poverty line. The spread of the public distribution system through its network of ration shops
in rural areas can be used to solve this problem. This is particularly important during periods
of poor rainfall when rural Incomes are adversely affected, which in turn has a negative effect
on consumption. Subsidies may have other forms—the form of input subsidies to the
agricultural sector for example. This is particularly important in the case of fertilizers,
pesticides and seeds. Thus, the price policy can act as a useful means of achieving rural
development objectives.
distribution of land and other assets is very skewed in India, as the large majorities have small
land holdings. This has a direct impact on the ability to earn incomes in rural areas. Land
reforms including the protection of the rights of tenants are one of the primary means of
India launched Pradhan Mantri Gram Sadak Yojana (PMGSY) on 25th Dec, 2000.
This Bharat Nirman programme was introduced by the then Prime Minister of India
5
The main objective of the PMGSY is to provide connectivity, to the eligible
DDU-GKY was launched on 25 September 2014 by Union Ministers Nitin Gadkari and
Upadhyaya.
Under this programme, disbursements would be made through a digital voucher directly
into the student’s bank account as part of the government's skill development initiative.
The initial scheme Swarnajayanti Gram Swarozgar Yojana (SGSY) was launched in
1999. It was renamed as National Rural Livelihood Mission in 2011. Finally, they were
Deen Dayal Antyodaya Yojana (DAY) is one of the Government of India scheme for
The Government of India has provisioned ₹500 crores for the scheme.
The objective of the scheme is to train 0.5 million people in urban areas per annum
from 2016.
The aim of the scheme is skill development of both rural and urban India as per requisite
6
4. Sampoorna Grameen Rozgar Yojana (SGRY)
The Sampoorna Grameen Rozgar Yojana is the scheme for the development of
Previously there were two different schemes pertaining to the generation of wage
employment in the rural sector under the Ministry of Rural Development in India. The
schemes were Employment Assurance Scheme (EAS) for the generation of wage
employment and the Jawahar Gram Samridhi Yojana (JGSY) for the development of
To ensure the better functioning of the schemes both of them were clubbed together in
the year 2001, and the result was the emergence of the Sampoorna Grameen Rozgar
The SGRY scheme has an estimated annual expenditure of 10,000 crores. Under it
nearly 50 lakh tonnes of food grains amounting to 5,000 crores are to be supplied to the
authorities of the State Governments and Union Territories every year. The funds left
out would be used for the purpose of wage payment and other cash requirements.
The scheme has placed more stress on the provisions of wage employment to the
The Prime Minister launched Swachh Bharat Mission on the birth anniversary of
The concept of Swachh Bharat Abhiyan is to pave access for every person to sanitation
facilities including toilets, solid and liquid waste disposal systems, village cleanliness
7
An action plan has been drawn up for Swachh Bharat to become a reality by 2019, the
The Mission aims to triple the growth percentage of toilet from present 3% to 10% by
2019.
This programme was launched by the Prime Minister Narendra Modi on the birth
Ministry of Rural Development will be the supervising authority for this programme.
Under this programme each Member of Parliament will take the responsibility for
Mahatma Gandhi Employment Guarantee Act 2005 (or, NREGA), later renamed as the
It aims to guarantee the 'right to work'. This act was passed in 23 August 2005 under
The MGNREGA was initiated with the objective of "enhancing livelihood security in
rural areas by providing at least 100 days of guaranteed wage employment in a financial
year, to every household whose adult members volunteer to do unskilled manual work".
Another aim of MGNREGA is to create durable assets (such as roads, canals, ponds
and wells).
8
If work is not provided within 15 days of applying, applicants are entitled to an
Village Grain Bank Scheme was being implemented by the Department of Food &
Public Distribution.
The main objective of the scheme was to provide safeguard against starvation during
the period of natural calamity or during lean season when the households did not have
sufficient resources to purchase rations. Such people in need of food grains will be able
The grain banks are to be set up in food scarce areas like the drought prone areas, the
hot and cold desert areas, tribal areas and the inaccessible hilly areas which remain cut
The scheme envisages inclusion of all willing BPL families in the villages to be
identified by the State Government in food deficit areas. The quantity to be lent and the
● The reduction of poverty is important because rural areas have the maximum poverty.
9
● Around 30% of the population is below the poverty line; this figure reduced to 21.92% in
2012.
opportunities.
● It can be done by improving the literacy rate, skill development, industrial training, etc.
In order to make agriculture more productive, sustainable, remunerative and climate resilient,
the Government of India introduced National Mission for Sustainable Agriculture (NMSA) in
the year 2014-15. To achieve these goals, the mission promotes location specific sustainable
and best farming practices; soil conservation and moisture protection measures; soil nutrient
rainfed methods.
As a major component of the mission, ‘On Farm Water Management’ (OFWM) is being
implemented with the objective of increasing water use efficiency by promoting modern
10
technologies such as micro irrigation and sustainable water management practices, efficient
water consumption, better distribution channels along with secondary storage facilities.
The extreme weather conditions such as droughts, floods and hailstorms cause crop failures
and financial loss to the farmers every year. And therefore, to save them from these ill effects,
the Government, by merging all previous crop insurance schemes, launched Pradhan Mantri
Fasal Bima Yojana (PMFBY) from Kharif 2016 season with the aim to support production in
Central government has made Aadhaar mandatory for availing crop insurance from Kharif
2017 season. The scheme has been restructured with states given option to determine scale of
The Government of India has structured Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
with the vision to extend the coverage of irrigation and improving water use efficiency in a
focused manner. PMKSY focuses end to end solution on source creation, distribution,
management, field application and extension activities. The Cabinet Committee on Economic
The Centre has structured the scheme with merging previous irrigation and water management
Management Programme (IWMP) and On Farm Water Management (OFWM) scheme. The
Centre has approved Rs. 50,000 crore for five years for the implementation of the flagship
Parampragat Krishi Vikas Yojana (PKVY) is one of the important government schemes which
encourages farmers for traditional and organic farming in India. Under the scheme, the
11
Government of India provides a financial assistance to the farmers of Rs 50,000 per hectare
every three years for organic inputs, certification, labelling, packaging, transportation and
marketing of organic produce. The scheme focuses on reducing the ill effects of overuse of
It helps improve the soil fertility by improving organic carbon in the soil which results in
National Bank for Agriculture and Rural Development (NABARD) has created a Micro
Irrigation Fund with a corpus of Rs. 5,000 crore implemented from 2019-20. The objective of
the fund is to facilitate the states in availing an interest subvented loan for expanding coverage
of micro irrigation facilities by taking up special and innovative projects and also for
incentivising micro irrigation beyond the provisions available under PMKSY to encourage
(f) Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
MOVCDNER aims to develop the certified organic production in a value chain mode to link
farmers with consumers and to support the development of entire value chain starting from
organic inputs, seeds, certification and creation of facilities for collection, aggregation,
processing, marketing and brand building initiatives. The scheme is being implemented in
north eastern states Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,
(g) E-NAM
In order connect the existing agricultural mandis on a common online market platform for
12
So far, e-NAM has connected nearly 1,000 mandis in 18 states and three union territories.
transaction costs, bridging information asymmetries, and helping expansion of market access
for farmers and other stakeholders. Since the implementation, e-NAM has registered a user
base of 1.66 crore farmers, 1.31 lakh traders, 73,151 commission agents and 1,012 farmer
In a bid to provide adequate and timely credit to the farmers for their agricultural expenditures,
the Central government had launched Kisan Credit Card (KCC) scheme in the year 1998. Under
the scheme, the Government of India provides farm credit at a very subsidised rate of 4 percent
per annum. Since 2019, the Centre has extended the benefits of Kisan Credit Card to animal
husbandry, dairy and fisheries farmers for their working capital requirement and raising the
existing limit of collateral free loan from Rs. 1 lakh to Rs.1.60 lakh.
As part of the Aatmanirbhar Bharat package, the Centre has announced to cover 2.5 crore
farmers under KCC scheme with a credit boost of Rs 2 lakh crore through a special drive. As
a result, till October 19, 2020, according to the Government of India’s data, the package has
disbursed Rs. 1.35 lakh crore to 1.5 crore farmers under the scheme.
With an objective of conserving and maintaining soil nutrient and soil fertility, Soil Health
Card (SHC) scheme issues soil health cards to the farmers every two years to provide a basis
to address nutritional deficiencies in the fields. Under the scheme, soil testing is conducted to
analyse the nutrient needs, then crop-wise fertilisers are recommended accordingly. This
In the next five years, the Centre has targeted to cover 400,000 villages under individual farm
holding soil sampling and testing, organise 2.5 lakh demonstrations, set up of 250 village level
13
soil testing labs, strengthening 200 soil testing labs and promotion of micro-nutrients in two
Lunched on February 24, 2019, PM Kisan Samman Nidhi Yojana makes transferring of Rs
6,000 per annum directly to the farmers’ bank accounts through Direct Benefit Transfer (DBT)
in three instalments of Rs 2,000 each. The scheme supplements the financial needs of the small
and marginal farmers in buying farm inputs and other agricultural expenses, The scheme aims
to protect the farmers from falling in the vicious traps of local moneylenders and ensures their
(k) PM-Kusum
In order to reduce the consumption of diesel and electricity for agricultural irrigation, the
Cabinet Committee on Economic Affairs (CCEA) approved Pradhan Mantri Kisan Urja
Suraksha Evam Utthaan Mahabhiyaan (PM-Kusum) scheme in February 19, 2019. With a total
Central financial support of Rs 34,422 crore, PM Kusum scheme aims to add solar and other
Under the scheme, Ministry of New and Renewable Energy has targeted to install 10,000 MW
of decentralised grid connected renewable power plants of individual plant size up to 2 MW,
installation of 20 lakh solar powered agricultural pumps of individual pump capacity up to 7.5
HP.
aim at enabling rural people to improve the quality of lives. The various social sector
14
(a) Indira Awas Yojana
IAY, otherwise known as Pradhan Mantri Gramin Awaas Yojana (PMGAY) or IAY
and a social welfare programme that was first launched by Rajiv Gandhi in 1985. It was the
flagship housing programme of the Ministry of Rural Development and worked toward
constructing houses for the below-poverty-line (BPL) population in rural India. In the financial
year 1995-96, the IAY extended its aid to widows and close relatives of defence personnel
As the IAY was a social welfare scheme, a lot of the key features were designed to empower
citizens, beyond simply putting a roof over their heads. To understand further, consider the
following pointers.
(i) Ownership
Any home constructed under IAY was under joint ownership of both husband and wife, with
exception of the unmarried, divorced, and widows. However, the State could give ownership
to the woman only. Similarly, if the state allotted the construction of the house based on the
(ii) Construction
Under this scheme, the construction was to be carried out by the beneficiary only. Any external
involvement of a contractor or agency was not permissible, and, if done, the government could
withhold or confiscate the funding provided. However, beneficiaries could acquire support
services from NGOs, youth clubs, and others, for monitoring and assisting with construction.
As per the objectives of this initiative, eco-friendly and sustainable modes of building houses
15
(iv) Fund allocation: Under this scheme, funds were released in instalments.
The first instalment comprised of 25% of the total unit cost and was provided on the
The second instalment was paid after the first stage of construction was complete
reaching the lintel level, and comprised of 60% of the total cost.
The final instalment was released after the home had a fully-constructed and functional
bathroom or latrine and the beneficiary was living in the home. Here, the remaining
(v) Construction time limit: Upon receiving the first instalment, the beneficiary had 9 months
to complete the first stage. Following which, stage 2 had to be completed within another 9
Houses constructed under IAY must be designed based on the requirements of the
residents.
Aim to use locally-sourced materials to construct homes that will last at least 30 years.
SGSY is being implemented since April 1999 as a major anti-poverty scheme for the
rural poor, by organizing them into Self Help Groups (SHGs), providing them with skill
development training and helping them to get credit linkage with financial institutions
and providing infrastructure and marketing support for the products produced by them.
16
Government of India and the State Government are sharing the costs in the ratio of
75:25.
The SGSY fund is used to provide subsidy for the Revolving fund and Economic
Part of the Scheme component is also utilised for formation of groups and conduct of
Upto 20% of the total allocation can also be spent on putting up of Infrastructure
The SHGs, after the first grading, are provided with a revolving fund of Rs.50,000 for
first linkages (bank loan of Rs.50,000 and Rs.10,000 as subsidy) Rs.1.00 lakhs for
second linkages and Rs.1.5 lakhs for third and subsequent linkages.
After the second grading, the successful groups are provided with economic assistance,
the maximum eligible subsidy being 50% of the project cost with a ceiling of Rs.1.25
lakhs.
Employment Assurance Scheme was launched on 2nd October, 1993 for implementation in
1778 identified backward blocks of different States. The block selected were in the drought
prone areas, desert areas, tribal areas and hilly areas. Later, the scheme was extended to the
remaining blocks of the country in phased manner. At present, the scheme is being implement
in all the rural blocks of the country. The programme has been restructured from 1st April,
1999.
Objective
As its name suggests, the primary objective of the EAS is to provide gainful
employment during the lean agricultural season in manual work to all able bodied adults
in rural areas who are in need and desirous of work, but cannot find it. The work may
17
be either on farm or on other allied operations or on the normal plan/non-plan works
The secondary objective is the creation of community, social and economic assets for
Status
between the Centre and the States in the ratio of 75:25. In the case of Union Territories, the
Target Group
The EAS would be open to all adult rural poor who are in need of wage employment. A
maximum of two adults per family (the generally expected number of adults in a family) would
be provided wage employment, when there is demand during lean agricultural season, subject
to availability of funds.
Salient Features
The funds to the States will be allocated on the basis of proportion of rural population
in a State to the total rural poor in the country or such other criteria as decided by the
The Gram Panchayat will maintain a live employment register containing the details of
the workers and numbers of days for which wage-employment is provided under the
Scheme.
70% of the funds flowing to the districts would be allocated to the blocks and 30%
18
Payment of wages under the programme would be the Minimum Wage rates fixed by
The selection of works would be decided by Zilla Parishads after consultations with
In the absence of Elected Bodies, a committee comprising of local MPs and MLAs and
The Employment Assurance Scheme will operate at district/block levels throughout the
country. However, priority would be given to the areas suffering from endemic labour
exodus.
Persons seeking wage employment under EAS would be engaged in the works included
in the annual action plan prepared for this purpose by the Zila Parishads.
The provisions of employment under this scheme should result in the creation of
Jal Jeevan Mission is envisioned to provide safe and adequate drinking water through
individual household tap connections by 2024 to all households in rural India. JJM looks to
Vision
Every rural household has drinking water supply in adequate quantity of prescribed quality on
regular and long-term basis at affordable service delivery charges leading to improvement in
Mission
19
States/ UTs in planning of participatory rural water supply strategy for ensuring potable
drinking water security on long-term basis to every rural household and public
institution, viz. school, Anganwadi centre, Health centre, wellness centres, etc.
States/ UTs for creation of water supply infrastructure so that every rural household has
Rural communities to plan, implement, manage, own, operate and maintain their own
States/ UTs to develop robust institutions having focus on service delivery and financial
The Central Rural Sanitation Programme, which was started in 1986, was one of India’s first
efforts to provide safe sanitation in rural areas. This programme focussed mainly on providing
subsidies to people to construct sanitation facilities. However, a study done by the government
in 1996-97 showed that it was more important to raise awareness about sanitation as a whole
rather than to just provide subsidies for construction. This understanding marked the first shift
in the programme. In 1999, a restructured Total Sanitation Campaign (TSC) was initiated to
create supply-led sanitation by promoting local sanitary marts and a range of technological
options.
20
Accelerate sanitation coverage in rural areas.
Generate a push from the people to get facilities rather than expect the Government to
do it (demand-led promotion).
Take the scheme beyond rural households to rural schools and nursery schools. Here
Through all the above, improve the health and quality of life in rural areas.
The last modification of the scheme happened in 2012. It was restructured and renamed
as the Nirmal Bharat Abhiyan. With an intent to transform India to "Nirmal Bharat",
the scheme's revised target for reaching total sanitation was changed from 2012 to 2022.
NSAP stands for National Social Assistance Programme. NSAP was launched on 15th August,
1995. The National Social Assistance Programme (NSAP) represents a significant step towards
the fulfilment of the Directive Principles in Article 41 and 42 of the Constitution recognizing
the concurrent responsibility of the Central and the State Governments in the matter. In
particular, Article 41 of the Constitution of India directs the State to provide public assistance
to its citizens in case of unemployment, old age, sickness and disablement and in other cases
of undeserved want within the limit of its economic capacity and development.
Objective of NSAP
National Social Assistance Programme is a social security and welfare programme to provide
support to aged persons, widows, disabled persons and bereaved families on death of primary
21
Components of NSAP
The National Maternity Benefit Scheme (NMBS) was subsequently transferred on 1st April,
2001 from the Ministry of Rural development to the Ministry of Health and Family Welfare.
On 1st April, 2000 a new Scheme known as Annapurna Scheme was launched. This scheme
aimed at providing food security to meet the requirement of those senior citizens who, though
In February 2009, two new Schemes known as Indira Gandhi National Widow Pension Scheme
(IGNWPS) and Indira Gandhi National Disability Pension Scheme (IGNDPS) were
introduced.
The eligible age for IGNOAPS is 60 years. The pension is Rs.200 p.m. for persons between 60
years and 79 years. For persons who are 80 years and above the pension is Rs.500/ - per month.
The eligible age is 40 years and the pension is Rs.300 per month. After attaining the age of 80
The eligible age for the pension er is 18 years and above and the disability level has to be 80%.
The amount is Rs.300 per month and after attaining the age of 80 years, the beneficiary will
get Rs 500/ - per month . Dwarfs will also be a n eligible category for this pension.
22
(d) National Family Benefit Scheme (NFBS)
Rs. 20000/ - will be given as a lumpsum assistance to the bereaved household in the event of
death of the bread - winner. It is clarified that any event of death (natural or otherwise) would
maKe the family eligible for assistance. A woman in the family,who is a home maKer,is also
considered as a 'bread - winner' for this purpose. The family benefit will be paid to such
surviving member of the household of the deceased poor, who after local inquiry, is found to
be the head of the nousehold. For the purpose of the scheme, the term "household'would include
spouse, minor children, unmarried daughters and dependent parents. In case of death of an
unmarried adult, the term household would include minor brothers/ sisters and dependent
parents. The death of such a bread - winner should have occurred whilst he/ she is more than
18 years of age and less than 60 years of age. The assistance would be given to every case of
10 kgs of food grains (wheat or rice) is given per month per beneficiary. The scheme aims at
providing food security to meet the requirements of those eligible old aged persons who have
23