BACKGROUND
Poverty in India is widespread, with the nation estimated to have a third of the world's poor. In 2010, the World Bank reported that 32.7% of the total Indian people fall below the international poverty line of US$ 1.25 per day (PPP) while 68.7% live on less than US$ 2 per day.
According to 2010 data from the United Nations Development Programme, an estimated 29.8% of Indians live below the country's national poverty line. A 2010 report by the Oxford Poverty and Human Development Initiative (OPHI) states that 8 Indian states have more poor people than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries. A 2013 UN report stated that a third of the worlds poorest people live in India.
According to a 2011 poverty Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015. The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty by half by the 2015 target date
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.
Rural Poverty
AlleviationSelf-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
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 Committee’s 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 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 :
- 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.
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 and therefore, had not utilised the knowledge gained
under the programme for furthering their self-employment 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 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
|
|
PODUPULAKSHMI
– Pride of Nellore Women’- a success story.
|
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.
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 1st
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 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 90-100
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 women’s
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.
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 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 State’s 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 non-Scheduled 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.
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 District-wise 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
15th 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 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 1996-97 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 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 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 self-employment 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 non-traditional 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 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 semi-feudal 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 women’s 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)
New Initiatives
under IRDP
|
Project
for Linking Banks with Self-Help Groups
|
- 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.
- 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-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.
- 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.25,000-Rs.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 eco-sensitive resource management. There is also a potential
for allotting nurseries of the forest department to these groups for management.
In all these, interest of women’s 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 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 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
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 73rd 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 DRDA’s 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
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
|
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 State’s 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
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.
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.
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 (ICAR’s) 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 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 people’s 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 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 women’s 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 women’s 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 women’s
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 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 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 1/3rd 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 people’s 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,
remote-sensing 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 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.
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