Soban Singh Jeena Campus,

Almora

Sub: An Assignment
on Rural Development
in India
Submitted to: Durgapal Sir.

Submitted By: Shailesh Gururani

BBA 5th SEM
 The Rural Development in India is one of the most important factors for the
growth of the Indian economy. India is primarily an agriculture-based country. Agriculture
contributes nearly one-fifth of the gross domestic product in India. In order to increase the
growth of agriculture, the Government has planned several programs pertaining to Rural
Development in India. The Ministry of Rural Development in India within the Central
Government of India is the legal authority pertaining to the rural development in India. The
department plays an important part in the development of rural business and economy. The
Ministry of Rural Development in India is the apex body for formulating policies, regulations
and acts pertaining to the development of the rural sector. Agriculture, handicrafts, fisheries,
poultry, and dairy are the primary contributors to the rural business and economy. As India is
chiefly an agricultural economy, the development of the rural sector is very important. The
Ministry of Rural Development in India is engaged in legislations for the social and economic
improvement of the rural populace. The Ministry also envisages the provision of better execution
of land reforms, superior access to credit, more participative rural development programs, more
decentralized planning, etc.

MINISTRY OF RURAL DEVELOPMENT IN INDIA – DEPARTMENTS

 Department of Rural Development: This department executes the schemes for wage
employment and self-employment generation and, for providing small irrigation and
housing facilities to the rural poor, provide economic aid to the poor in rural areas. The
department also develops roads in the rural areas. The Department facilitates the
provision of several support services such as human resource development, training and
research facilities, institutes of Panchayati Raj, functional assistance to the DRDA, and
oversees the execution of projects and programs. The schemes under the Department of
Rural Development are –

 Pradhan Mantri Gram Sadak Yojana

 National Rural Employment Guarantee Act-2005

 Swarnjayanti Gram Swarozgar Yojana

 Guidelines for Special Project Under SGSY

 Sampoorna Grameen Rozgar Yojana (SGRY)

 Indira Awaas Yojana (Rural Housing)

 National Social Assistance Program

  National Food For Work Program (NFFWP)

 PURA

 Department of Land Resources: This department executes the schemes pertaining to the
mass production of agricultural produce by the means of wasteland developments within
the country. The Department also facilitates the provision of support services such as
improvement of revenue system, land reforms, and structured land records. The
Department has also undertaken development of drought prone areas and desert areas in
India. The main objective is to increase the moisture and soil conservation in fertile lands
and increase the productiveness of the wastelands. The schemes under the Department of
Land Resources are -

 Integrated Wasteland Development Programme (IWDP)

 Desert Development Programme (DDP)

 Hariyali

 NGOs

 Drought Prone Area Programme (DPAP)

 IPS

 Land Reforms Schemes Programs

 Department of Drinking Water Supply: This department facilitates the provision of

proper sanitation facilities and drinking water supply in the rural areas. The schemes
under the Department of Drinking Water Supply are -

 Swajaldhara, or Accelerated Rural Water Supply Programme (ARWSP)

 Total Sanitation Programme (TSP)

 Human Resource Development (HRD)

Department of Rural Development in India

Department of Rural Development in India is a department under the Ministry of Rural
Development in the Central Government of India. The Department facilitates the provision of
several services such as training and research facilities, human resource development, institutes
of Panchayati Raj, and at the same time provides functional assistance to the DRDA and oversees
the execution of projects and schemes. Department of Rural Development also executes the
schemes for wage employment and self-employment generation and, for providing small
irrigation and housing facilities to the rural poor, provide economic aid to the poor in rural areas,
basic minimum services. The department also develops roads in the rural areas.

Department of Rural Development in India-Monitor Mechanism

 National Level Monitors: The main purpose of this monitoring is to assure the efficiency
and transparency in the execution of the schemes. The Ministry formed a high profile
panel of retired Civil Servants and senior level Ex-Servicemen to monitor the policies
and execute the schemes.
 District Level Monitoring: This is the latest advancement in the monitoring of the
schemes executed under the Department of Rural Development. The monitoring would
be performed by independent agencies. This function would allow the Ministry to have
monthly progress report of the ongoing schemes and prepare qualitative reports on the
policies.

Programs for Rural development

 Pradhan Mantri Gram Sadak Yojana
The Pradhan Mantri Gram Sadak Yojana (PMGSY) was introduced in the year 2000. The
main objective of the Pradhan Mantri Gram Sadak Yojana is to facilitate the provision
transportation by the means of well-paved weatherproof roads with the purpose of connecting all
the rural areas with more than 500 individuals. Around 1,60,000 such rural areas would be
covered under this project at an estimated cost of Rs. 60,000 crore. This project is totally
financed by the Central Government of India. The Central Government is also endowed with the
responsibility of formulating the policies for the smooth functioning of the projects. The project
guidelines and the provisions by the Government of India would ensure the better planning,
better methods of implementation, better quality measures, completion of project within time,
execution of project in accordance with the plan, proper clearances for the execution of road
work from the authorities concerned, and so forth.

The rural transportation system in India is one of the major factors for the development of rural
areas, which would in turn promote the rural economy and commercial trade. The increase in the
economic activities in the rural areas would ensure the generation of employment and increase in
the income level of the rural populace, which would uplift their living standards, etc. The
increase in the income would mainly be in the agricultural sector, which would contribute
sumptuously to the growth of the Indian Economy. The main aim of the Pradhan Mantri Gram
Sadak Yojana is the reduction of poverty by the means of providing infrastructure facilities.
Around 40% of the total rural areas are yet to be provided with the facilities of proper
transportation system.

In order to end this problem forever the Central Government of India has designed the project
called Pradhan Mantri Gram Sadak Yojana to provide proper weatherproof roads in the rural
areas. The project is fully sponsored by the Central Government of India. The reserve funds for
this project are allocated as 50% of the high-speed diesel cess.

Pradhan Mantri Gram Sadak Yojana - Objectives

 The main objective of the Pradhan Mantri Gram Sadak Yojana is to provide connection
by the means of paved weatherproof roads with the required cross-drainage, culverts and
causeways to the rural places that are yet to be connected. Under this project all places
with the population of more than 1000 will be connected by the means of proper roads
and the time period of the project is three years. For the rural places with the population
of 500 and above the time period of the project is the end of the Tenth Plan in the year
2007. The rural areas with 250 individuals as the population such as the desert areas, hilly
states of Sikkim, Jammu & Kashmir, Uttaranchal, Northeast, Himachal Pradesh, tribal
areas designated under Schedule V would also be covered by the project.
  The Pradhan Mantri Gram Sadak Yojana would allow the improvement of the present
roads in the districts where the roads are far below standard in accordance with the
prescribed criterion .The process of improvement is not the chief aspect of the project so
more than 20% of the fund allocated to the state cannot be used for the purpose of
improvement if the main function of construction still remains unfinished.

Indira Awaas Yojana

The Indira Awaas Yojana (IAY) is a scheme for providing the rural folks with home and
shelter. Shelter is one of the basic needs of any individual other than food and clothing. The
Indira Awaas Yojana scheme was introduced by the Government of India with the purpose of
construction of house property in the rural areas.

Indira Awaas Yojana was introduced in the year 1986 as a part of larger Rural Landless
Employment Guarantee Programme (RLEGP) scheme. The Indira Awaas Yojana was carried on
as a part of the Jawahar Rozgar Yojana (JRY) scheme in the year 1989. It was separated from
this scheme in the year 1996 and henceforth continued as an autonomous scheme.

The main purpose of the Indira Awaas Yojana is to provide assistance to the people under the
category of scheduled castes and scheduled tribes, rural poor people, laborers, and other non-
scheduled castes and scheduled tribes categories below the poverty line. In case of the non-SC
and ST, financial assistance should not exceed 40% of the entire allocation of funds to any
respective state pertaining to a financial year.

In the year 1996, the benefits of Indira Awaas Yojana was extended to next-of kin and widows of
defense personnel killed in action, ex-servicemen, and para-military forces killed in battle
regardless of the income level of the deceased under the condition that -

 The person in question lived in the rural sector

 The person in question falls under the category of any other shelter rehabilitation scheme
of the Government

 The person in question does not own a house property or was in serious need of a shelter
For the better functioning of the IAY schemes a detailed report about the progress is to be
maintained. Moreover, the implementation should be transparent in nature. The information
about the execution of the scheme is recorded in three different levels as follows-

At village level -

 The list of rural populace in the category of households below poverty line (BPL)

 The list of donees for the present year and the previous year which would include the
details of the number of women, ST/SC, and

 physically disabled individual donees

 The funds allocated to the village under the IAY scheme

At block level -

 The proper distribution of the funds pertaining to the allotment

 The maintenance of rosters pertaining to the progress of the implementation

 The allocation of the financial aids in the IAY scheme at the block level

At district level -

 The record of block wise financial assistances pertaining to the IAY scheme

 The establishment of the standards for the distribution of the funds to different blocks

National Bank for Agriculture and Rural Development

National Bank for Agriculture and Rural Development (NABARD) was established
as the premiere development bank. The main purpose of the National Bank for Agriculture and
Rural Development is to provide credit for the development and publicity of small-scale
industries, handicrafts, rural crafts, village industries, cottage industries, agriculture, etc. The
NABARD also supports all other related economic operations in the rural sector and looks after
the promotion of sustainable growth in the rural sector.
The NABARD also plays the role of a contributor to the rural development by the means of
promoting institutional development, facilitating refinancing the loan providers in the rural
sector, inspection, monitoring, and evaluation of client financial corporations.

The NABARD also provides assistance to the Reserve Bank of India, other organizations related
with the development of the rural sector, and the Government of India, coordinates the functions
of the rural loan providers, aids the state governments in assisting the rural developmental
institutions, provides training facilities for the cooperatives, banks, and other organizations.

Objectives of National Bank for Agriculture and Rural Development are -

 The National Bank for Agriculture and Rural Development would be the apex body
pertaining to the planning of the financial and functional aspects of promotion for small-
scale industries, agriculture, handicrafts, rural crafts, village industries, cottage industries,
and any kind of commercial operations in the rural sector.

 The National Bank for Agriculture and Rural Development would function as a
refinancing organization for the credit given by

 financial agencies both long term loans and short term loans for promoting various kinds
of activities in the rural sector.

 The National Bank for Agriculture and Rural Development would facilitate the provision
of direct loan to different institutions on the approval of the Central Government of India.

 The National Bank for Agriculture and Rural Development would have constitutional
connections with the apex bank, the Reserve Bank of India.

Sampoorna Grameen Rozgar Yojana

The Sampoorna Grameen Rozgar Yojana (SGRY) is the scheme for the development of
employment in the rural sector of India. 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 infrastructure in the rural areas.

Both the programmes, the EAS and JGSY played a significant part in the development of the
rural sector. 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 Yojana
(SGRY) as the new improved Wage-Employment Programme under the Ministry of Rural
Development.

The SGRY scheme has an estimated annual expenditure of Rs.10, 000 crores. Under it nearly 50
lakh tonnes of food grains amounting to Rs.5, 000 crores is 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. It is to be noted that following this
scheme more than 100 crore working days would be generated per year. The scheme is self-
evaluating which has placed more stress on the provisions of wage employment to the scheduled
castes, scheduled tribes, and women.

Sampoorna Grameen Rozgar Yojana - Objectives

 To provide supplementary wage employment in the rural sector

 To provide food security to the populace of the rural areas

 To facilitate the creation of self help groups

 To provide to the development of economic and social infrastructure in the rural sector

SGRY - Highlights

 The main purpose of Sampoorna Grameen Rozgar Yojana is to assure the income
through employment, security food security, and development of the infrastructure

 The SGRY scheme falls under the category of Centrally Sponsored Scheme (CSS)

 The total expenditure which is expected to be incurred in implementing the project is Rs.
10,000 crores

 Every year nearly 50 lakh tonnes of food grains are to be provided to the State
Governments and Union Territories which costs around Rs. 5,000 crore

 The funds allocated for the wage employment and other requirements of cash amount to
Rs. 5,000 crore

 The cash requirements of the scheme is shared in a ratio of 75:25 by the Centre and State
respectively

 The costs pertaining to the food grains provided to the State and Union Territories are
paid to the Food Corporation of India (FCI)

 The Ministry of Rural Development incurs the cost of the food grains under the SGRY
scheme
  The laborers under the scheme of Sampoorna Grameen Rozgar Yojana are provided with
5kg food grains per day of work along with the cash wages

 The cash wages paid to the laborers would be in accordance to the approved minimum
wages under the scheme

 The implementation of the scheme may be endowed to the Panchayati Raj Institutions
(PRI) in sections if the need arises

 The Union Territories and the State Governments may calculate the expenses incurred on
food grains at either above poverty line rates or below poverty line rates or the average of
the two rates

Mahatma Gandhi National Rural Employment Guarantee

Act
The Mahatma Gandhi National Rural Employment Guarantee Act aims at enhancing the
livelihood security of people in rural areas by guaranteeing hundred days of wage-employment
in a financial year to a rural household whose adult members volunteer to do unskilled manual
work.

Initially this program was enacted as an National Rural Employment Guarantee Act in the year
2005. The main purpose of this act is to improve the living conditions of the rural population and
the sustenance of the same in the rural sector of India. The improvement is made by the means of
providing a minimum hundred working days pertaining to guarantee wage employment per year
to any adult member volunteering for an unskilled manual work. The Central Council is
endowed with the power to assess the different schemes formulated under this act. The Central
Council may collect statistical information about the rural economy and the execution of the
projects for development of the rural sector.

Employment guarantee in the rural areas are as follows-

 The State Government would provide hundred days of employment to all the households
in the rural areas for every financial year under this Act
 Employment would be provided by the State Government to all adult individuals those
who are willing to do unskilled manual labor for every financial year under this Act
 All laborers working under the scheme would receive wages both in cash and kind as
daily wages
 The disbursal of daily wages would be made on the weekly basis and it can be extended
to a maximum of two weeks
  Both the State Government and Central Government on the basis of their economic
capabilities may facilitate the provisions for assuring work to all the adult members of
every households under the Act

Functions of Central Council

 To set up a central monitoring and evaluation system

 To advise the Central Government of India pertaining to the issues on the execution of
the NREGA-2005

 To inspect the monitoring mechanism and suggest necessary improvements

 To promote the most extensive distribution of information about the schemes pertaining
to this Act

 To monitor the execution of theMahatma Gandhi National Rural Employment Guarantee

Act - 2005

 To prepare the annual reports to be presented in the Parliament by the Ministry under the
Central Government pertaining to the execution of this Act

 To perform any other kind of functions and duties which is assigned by the Central
Government on India .