POVERTY ALLEVIATION PROGRAMMES

POVERTY ALLEVIATION IN RURAL INDIA - PROGRAMMES AND STRATEGIES

Alleviation of poverty remains a major challenge before the Government. While
there has been a steady decline in rural poverty over the last two decades, there were 244
million rural poor (37 per cent of the rural population) in the country in 1993-94, as per the
latest available estimates. Acceleration of economic growth, with a focus on sectors which
are employment-intensive, facilitates the removal of poverty in the long run. However, this
strategy needs to be complemented with a focus laid on provision of basic services for
improving the quality of life of the people and direct State intervention in the form of targeted
anti-poverty programmes. While growth will continue to be the prime mover, anti-poverty
programmes supplement the growth effort and protect the poor from destitution, sharp
fluctuations in employment and incomes and social insecurity. The specifically designed
anti-poverty programmes for generation of both self-employment and wage-employment in
rural areas have been redesigned and restructured in 1999-2000 in order to enhance their
efficacy/impact on the poor and improve their sustainability. These schemes along with Area
Development Programmes, Rural Housing, Land Reforms and institutional mechanisms of
delivery are briefly discussed below.

SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY)
2. The single self-employment programme of Swarnjayanti Gram Swarozgar Yojana
(SGSY), launched with effect from 1.4.1999, has been conceived keeping in view the
strengths and weaknesses of the earlier schemes of Integrated Rural Development
Programme (IRDP) and Allied Programmes along with Million Wells Scheme (MWS). The
objective of restructuring was to make the programme more effective in providing sustainable
incomes through micro enterprises. The SGSY lays emphasis on the following:
· Focussed approach to poverty alleviation.
· Capitalising advantages of group lending.
· Overcoming the problems associated with multiplicity of programmes.
3. SGSY is conceived as a holistic programme of micro enterprises covering all
aspects of self employment viz. organisation of the rural poor into self help groups (SHGs)
and their capacity building, planning of activity clusters, infrastructure build up, technology,
credit and marketing. Micro enterprises in the rural areas are sought to be established by
building on the potential of the rural poor. The objective of the programme is to bring the
existing poor families above the poverty line.
4. Under the SGSY, the focus is on vulnerable sections among the rural poor with
SCs/STs accounting for 50 per cent, women 40 per cent and the disabled 3 per cent of the
beneficiaries. The list of BPL households, identified through BPL census, duly approved by
the Gram Sabha forms the basis for assistance to families under SGSY. The beneficiaries
(also called Swarozgaris) could be individuals or groups. While the identification of
individual beneficiaries is made through a participatory approach, the programme lays
emphasis on organisation of poor into SHGs and their capacity building. The SHG may
consist of 10 to 20 persons. In case of minor irrigation, and in case of the disabled, the
minimum is 5 persons. Under the scheme, progressively, majority of the funding would be
for SHGs. Group activities stand a better chance of success because it is easier to provide
back-up support and marketing linkages for group activities. Involvement of women
members in each SHG is encouraged and at the block level it is stipulated that, at least half of
the groups will be exclusively women’s groups. For providing a revolving fund to the SHGs,
the DRDAs could use 10 per cent of the allocation under SGSY.
5. Under SGSY micro enterprises in the rural areas are to be set up with an emphasis
on the `cluster’ approach. Four to five key activities are to be identified in each block based
on the resource endowments, occupational skills of the people and availability of markets and
these activities may be implemented preferably in clusters so that backward and forward
linkages can be effectively established. The key activities are to be selected with the
approval of the Panchayat Samiti at the block level and DRDAs/Zila Parishad at the district
level. SGSY adopts a project approach with project reports being prepared for each key
activity in association with banks and financial institutions. It is envisaged that a major share
of SGSY assistance would be in activity clusters.
6. The SGSY is a credit-cum-subsidy programme, with credit as the critical
component and subsidy as a minor and enabling element. Accordingly, the SGSY envisages
greater involvement of banks and promotion of multiple credit rather than a one-time credit
injection. Subsidy under SGSY is provided at 30 per cent of the project cost, subject to a
maximum of Rs.7500. In respect of SCs/STs, it is 50 per cent subject to a maximum of
Rs.10000. For groups, the subsidy is 50 per cent subject to a ceiling of Rs.1.25 lakh. There
is no monetary limit on subsidy for irrigation projects. Subsidy under SGSY is back ended to
ensure proper utilisation of funds by the target group.
7. Since proper infrastructure is essential for the success of micro enterprises, 20 per
cent (25 per cent in the case of North Eastern States) of SGSY allocation for each district will
be set apart under SGSY Infrastructure Fund for this purpose.
8. Since SGSY lays emphasis on skill development through well designed training
courses, the DRDAs are allowed to set apart 10 per cent of the SGSY allocation on training to
be maintained as SGSY Training Fund to be utilised to provide both orientation and training
programmes to Swarozgaris. For this purpose, training facilities of polytechnics, Krishi
Vigyan Kendras, Khadi and Village Industries Boards, State Institutes of Rural Development
are available. Extension Training Centres, reputed voluntary organisations and departmental
training institutes could be utilised. The programme also seeks to ensure upgradation of the
technology in the identified activity clusters and for promoting marketing of the goods.
9. 15 per cent of the funds under SGSY are set apart, at the national level, for
projects having a far reaching significance to be taken up in conjunction with other
Departments or semi-government or international organisations.
10. The SGSY is implemented by the District Rural Development Agencies (DRDAs)
through the Panchayat Samitis. However, the process of planning, implementation and
monitoring involves coordination with banks and other financial institutions, the PRIs, the
NGOs as well as technical institutions in the district. Hence, the implementation of SGSY
calls for integration of various agencies - DRDAs, banks, line departments, Panchayati Raj
Institutions (PRIs), Non-Governmental Organisations (NGOs) and other semi-government
organisations.
11. Funds under the SGSY are shared by the Centre and the States in the ratio of
75:25. The Central allocation is distributed in relation to the incidence of poverty in the
States. However, additional parameters like absorption capacity and special requirements can
also be considered.
12. The year 1999-2000 was the first year of the implementation of SGSY. As such,
considerable detailed preparatory work and planning were carried out in order to ensure the
successful implementation of the scheme. In order to finalise the guidelines of the
programme, views were sought/consultations were held with State Governments, banks and
NGOs.
13. Many State Governments have reported that formation of SHGs took considerable
time and has been one of the prime reasons for less than expected performance under the
scheme in 1999-2000. However, the establishment of SHGs would gather momentum in the
coming years and significantly contribute to the success of micro enterprises as vehicles for
economic empowerment of BPL families.
14. In 1999-2000 (up to February, 2000) an expenditure of Rs.804.23 crore was
incurred under the scheme as against the total allocation of Rs.1467.73 crore. During this
period, more than 3.40 lakh self help groups were assisted. A Central outlay of Rs.1000.00
crore has been provided for the scheme in 2000-01.

JAWAHAR GRAM SAMRIDHI YOJANA (JGSY)
15. The Jawahar Rozgar Yojana (JRY) has been recast as the Jawahar Gram Samridhi
Yojana (JGSY) with effect from 1.4.1999 to impart a thrust to creation of rural infrastructure.
While the JRY resulted in creation of durable assets, the overriding priority of the programme
was the creation of wage employment. It was felt that a stage had come when rural
infrastructure needed to be taken up in a planned manner and given priority. The Gram
Panchayats can effectively determine their infrastructure needs and the responsibility of
implementing the programme has been entrusted to the Gram Panchayats. The funds are
directly released to the Gram Panchayats by the DRDAs/Zilla Parishads. The JGSY is
implemented as a CSS with funding in the ratio of 75:25 between the Centre and the States.
16. The primary objective of JGSY is creation of demand driven community village
infrastructure including durable assets at the village level and assets to enable the rural poor
to increase the opportunities for sustained employment. The secondary objective is
generation of supplementary employment for the unemployed poor in the rural areas. The
wage employment under the programme is given to Below Poverty Lines (BPL) families.
17. While there is no sectoral earmarking of resources under JGSY, 22.5 per cent of
the annual allocation must be spent on individual beneficiary schemes for SCs/STs and 3 per
cent is to be utilised for creation of barrier free infrastructure for the disabled. All works that
result in the creation of durable productive community assets can be taken up under the
programme as per the felt need of the area/people by the village panchayat. These include
creation of infrastructure for SCs/STs habitations, infrastructure support for SGSY,
infrastructure required for supporting agricultural activities in the village, community
infrastructure for education and health, roads and other social, economic and physical
infrastructure.
18. The wages under the programme are either the minimum wages notified by the
States or higher wages as fixed by the States through the prescribed procedure. The wage
material ratio of 60:40 can be suitably relaxed so as to enable the building up of demand
driven rural infrastructure. However, efforts may be made to ensure that labour intensive
works are taken up with sustainable low cost technology.
19. Under the programme, village panchayats have the sole authority for the
preparation of the Annual Action Plan and its implementation, which needs to be accepted by
the Gram Sabha. Thus, the Gram Sabha is empowered to approve schemes/works. The
completion of the incomplete works is to be given priority over new works and works which
cannot be completed within two financial years are not to be included. At the village level,
the entire work relating to coordination, review, supervision and monitoring of the
programme is the responsibility of the village panchayat. The village panchayats have the
power to execute works/schemes upto Rs.50,000 with the approval of the Gram Sabha. In
addition, Gram Sabha would also undertake Social Audit. At the village level monitoring and
vigilance committees are also set up to oversee and supervise the works/schemes undertaken.
At the district level, the DRDAs/Zilla Parishads and at the intermediate level the Panchayat
Samitis have the overall responsibility for guidance, coordination, supervision, periodical
reporting and monitoring the implementation of the programme.
20. Village Panchayats may spend up to a maximum of 7.5 per cent of the funds or
Rs.7500/- whichever is less during a year on the administrative contingencies and for
technical consultancy. The village panchayat is permitted to spend up to a maximum of 15
per cent on maintenance of the public assets created within its geographical boundary. Since
the entire funds will be utilised by the village panchayats under JGSY the Innovative JRY has
been discontinued.
21. The primary objective of the JGSY has undergone a change from employment
generation to rural infrastructure. As such, the States have taken time to adjust their
monitoring mechanism as per the new monitoring parameters from employment generation to
number of works undertaken/completed. During 1999-2000, 5.84 lakh works were
completed as against a target of 8.57 lakh works. An expenditure of Rs.1841.80 crore was
incurred during 1999-2000 as against a total allocation of Rs.2209.24 crore. A Central outlay
of Rs.1650.00 crore has been earmarked for JGSY for the year 2000-01.

EMPLOYMENT ASSURANCE SCHEME (EAS)
22. The Employment Assurance Scheme (EAS) was launched on 2nd October, 1993 in
1772 identified backward blocks of 257 districts situated in drought prone, desert, tribal and
hill areas where the Revamped Public Distribution System (RPDS) was in operation. The
programme was subsequently extended to more blocks and thereafter was universalised. It is,
presently, being implemented in all the 5448 rural blocks of the country. The EAS was
restructured w.e.f. 1999-2000 to make it the single wage employment programme. While the
basic parameters have been retained, the scheme has become allocative scheme instead of
demand driven and a fixed annual outlay is to be provided to the States. The programme is
implemented as a CSS on a cost sharing ratio of 75:25 between the Centre and States.
23. The primary objective of the EAS is creation of additional wage employment
opportunities during the period of acute shortage of wage employment through manual work
for the rural poor living below the poverty line. The secondary objective is the creation of
durable community, social and economic assets for sustained employment and development.
EAS is open to all the needy rural poor living below the poverty line. A maximum of two
adults per family are provided wage employment. While providing employment, preference
is given to SCs/STs and parents of child labour withdrawn from hazardous occupations who
are below the poverty line.
24. The programme is implemented through the Zilla Parishads (DRDAs in those
States where Zilla Parishads do not exist). The list of works is finalised by the Zilla
Parishads in consultation with the Members of Parliament. In areas where Zilla Pasrishads are
not in existence, a Committee consisting of MLAs, MPs and other public representatives is
constituted for selecting the works. Gram Sabhas are informed about the details of works
taken up under the scheme. The EAS is in operation at district/Panchayat samiti level
throughout the country, but works are to be taken up in only those Panchayat samitis/districts
where there is a need for creating additional wage employment. Seventy per cent of the
funds allocated for each district are allocated to the Panchayat Samitis and thirty per cent of
the funds are reserved at the district level and are to be utilised in the areas suffering from
endemic labour exodus/areas of distress. Diversion of funds from one district to another and
from Panchayat to another is not permitted. Work would not be taken up under EAS if the
demand for wage employment can be fulfilled through other plan or non-plan works. Only
labour intensive works of productive nature which create durable assets would be taken up
under the scheme. Eighty per cent of the funds are released to the district as per normal
procedure and the remaining twenty per cent are to be released as an incentive only if the
States have put in place elected and empowered Panchayati Raj Institutions (PRIs).
25. Priority would be given to the works of soil and moisture conservation, minor
irrigation, rejuvenation of drinking water sources and augmentation of ground water,
traditional water harvesting structures, works related to watershed schemes (not watershed
development), formation of rural roads linking villages with other villages/block headquarters
and roads linking the villages with agricultural fields, drainage works and forestry.
26. Zilla Parishads/Panchayat Samitis are permitted to spend up to a maximum of 15
per cent on maintenance of assets created under this scheme.
27. Funds available from other sources like cooperatives, market committees or other
institutions/departments could be dovetailed with EAS funds for similar purposes.
28. The wage material ratio of 60:40 is to be strictly implemented and for this
purpose, the block would be the unit of consideration. Payment of wages is at the minimum
wage rate fixed by the States and higher wages to the extent of 10 per cent of the total wage
component could be paid to the skilled persons.
29. During 1999-2000, a total allocation of Rs.2431.46 crore was made under EAS
and an expenditure of Rs.1998.26 crore was incurred. As against the target of 4091.63 lakh
mandays, 2566.39 lakh mandays were generated. A Central outlay of Rs.1300.00 crore has
been provided for EAS for 2000-01.
NATIONAL SOCIAL ASSISTANCE PROGRAMME (NSAP)
30. The NSAP was launched with effect from 15th August, 1995 as a 100 per cent
Centrally Sponsored Scheme with the aim to provide social assistance benefit to poor
households in the case of old age, death of primary breadwinner and maternity. This
represents a significant step towards the fulfilment of the Directive Principles in Articles 41
& 42 of the Constitution. The programme supplements the efforts of the State Governments
with the objective of ensuring minimum national levels of well being and the Central
assistance is an addition to the benefit that the States are already providing on Social
Protection Schemes or may provide in future. The provision of Central assistance seeks to
ensure that social protection to beneficiaries is uniformly available.
31. The main features of the three components of the NSAP namely; (i) National Old
Age Pension Scheme (NOAPS), (ii) National Family Benefit Scheme (NFBS) and (iii)
National Maternity Benefit Scheme (NMBS) are given below:
National Old Age Pension Scheme (NOAPS)
32. Old age pension of Rs.75 per month, per beneficiary is provided to person of 65
years and above who is a destitute in the sense of having little or no regular means of
subsistence from his/her own sources of income or through support from family members or
other sources. In order to determine destitution, the criteria, if any, currently in force in the
States/UTs may also be followed.
National Family Benefit Scheme (NFBS)
33. A sum of Rs.10,000 is provided in the case death of primary breadwinner due to
natural or accidental causes. The family benefit is paid to such surviving member of the
household of deceased who, after local enquiry, is determined to be the Head of the
household. The primary breadwinner is defined as a member, whose earnings contribute
substantially to the household income and who is more than 18 years and less than 65 years
of age. The bereaved household should qualify as a BPL according to the criteria prescribed
by the Government of India.
National Maternity Benefit Scheme (NMBS)
34. A lump sum cash assistance of Rs.500 is provided to pregnant women of
households below the poverty line up to the first two live births provided they are of 19 years
of age and above. The maternity benefit is to be disbursed in one instalment, 12-8 weeks prior
to the delivery. In case of delay it can be disbursed to the beneficiary even after the birth of
the child.
35. The NSAP is implemented by the State/UT Governments with assistance from
Panchayats and municipal functionaries. Each State/UT has a nodal department identified for
implementing the scheme. In the districts, there are District Level Committees on NSAP.
36. The Gram Panchayats/Municipalities have an active role in the identification of
beneficiaries under NSAP. The State Governments communicate targets for the three
components of NSAP to Panchayats/municipalities so that identification of beneficiaries can
suitably be made by Gram Panchayats/Neighbourhood/Mohalla Committees in line with
these targets. In case of cash disbursement, the payments are to be made in public meetings
preferably of Gram Sabha meetings in villages, and of neighbourhood/mohalla committees in
urban areas. The Panchayats/Municipalities are responsible for disseminating information
about NSAP and the procedures for obtaining benefits under it. In this task, the Panchayats
and Municipalities are encouraged to seek the involvement/cooperation of voluntary agencies
to the extent possible for identifying beneficiaries and persuading them to avail of the
benefits intended for them.
37. The NSAP also provides opportunities for linking social assistance packages to
anti-poverty programmes and schemes for provision of basic needs e.g. the old age pension
can be linked to medical care and other benefits for the old and poor, family benefit
beneficiaries can be assisted under SGSY while maternity assistance could be linked with
maternal and child care programmes.
38. As against an allocation of Rs.767.05 crore made under NSAP during 1999-2000,
an expenditure of Rs.596.99 crore was incurred up to December, 1999. A Central allocation
of Rs.715.00 crore has been earmarked for the scheme in 2000-01.

ANNAPURNA
39. In 1999-2000, the Government had announced the launching of a new scheme
`Annapurna’ to provide food security to those indigent senior citizens who are not covered
under the Targeted Public Distribution System (TPDS) and who have no income of their own
and none to take care of them in the village. `Annapurna’ will provide 10 kg. of food grains
per month free of cost to all such persons who are eligible for old age pensions but are
presently not receiving it and whose children are not residing in the same village. The Gram
Panchayats would be required to identify, prepare and display a list of such persons after
giving wide publicity. A Central allocation of Rs.100.00 crore has been earmarked for the
scheme in 2000-01.

DRDA ADMINISTRATION
40. The District Rural Development Agencies (DRDAs) have traditionally been the
principal organ at the district level to oversee the implementation of different anti-poverty
programmes. Since its inception in 1980, the administrative costs of the DRDAs were met by
way of setting apart a share of the allocation for each programme. However, over the years,
while new poverty alleviation programmes were introduced, there was no uniformity amongst
the programmes with reference to administrative costs and it was found that the provisions
available for DRDAs were not sufficient even to meet the minimum costs.
41. On the basis of recommendations of the Inter-Ministerial Committee constituted
to review the support for administrative costs permitted under various programmes and
keeping in view the need for an effective agency at the district level to co-ordinate the antipoverty
efforts, a new CSS for `Strengthening of DRDA Administration’ was launched with
effect from April 1, 1999 with funding on a 75:25 basis between the Centre and States. Under
the programme, administrative cost per district applicable from 1999-2000 has been fixed as
given below:
Category A District (less than 6 blocks) Rs.46.00 lakhs
Category B District (6-10 blocks) Rs.57.00 lakhs
Category C District (11-15 blocks) Rs.65.00 lakhs
Category D District (more than 15 blocks) Rs.67.00 lakhs
42. However, the ceiling can be raised every year up to 5 per cent to meet cost
increases due to inflation etc.
43. Under the programme, the DRDAs have been conceived to emerge as a specilised
agency for managing the anti-poverty programmes of the Ministry of Rural Development
aiming towards poverty eradication in the district. While the actual execution of the various
programmes lies outside the purview of the DRDAs, its role is to facilitate the
implementation of the programmes, to supervise/oversee and monitor the progress, receive
and send progress reports and account for the funds. The DRDAs are also entrusted the task
of developing the capacity to build synergies among different agencies involved to bring
about effective results.
44. It has been envisaged that each district should have its own DRDA and in States
where DRDAs do not have a separate identity, a separate cell would be created in the Zilla
Parishads for maintaining accounts. However, it has been stipulated that the chairman of the
Zilla Parishad would be the chairman of the Governing Body of the DRDA. During the year
2000-01, an outlay of Rs.220.00 crore has been allocated for the Strengthening of DRDA
Administration.

RURAL HOUSING – INDIRA AWAAS YOJANA (IAY)
45. In the Ninth Plan, the Special Action Plan for Social Infrastructure has identified
`Housing’ as one of the priority areas. It aims at providing `Housing for All’ and facilitates
construction of 20 lakh additional dwelling units, of which 13 lakh dwelling units are to be
constructed in rural areas. The composite housing strategy for the Ninth Plan is a multipronged
strategy which has been operationalised w.e.f. 1999-2000. The salient features of
the strategy under Action Plan are given below.
46. The Indira Awaas Yojana (IAY) will continue to be major scheme for
construction of houses to be given to the poor, free of cost. However, an additional
component has been added, namely, conversion of unserviceable kutcha houses to semi pucca
houses. From 1999-2000, the criteria for allocation of funds to States/UTs under IAY has
been changed to 50 per cent poverty ratio and 50 per cent housing shortage in the State.
Similarly, the criteria for allocation of funds to a district in a State has been changed to the
SC/ST population and housing shortage, with equal weightage to each of them.
47. A Credit-cum-Subsidy Scheme for rural housing has been launched from 1.4.1999
which will target a rural family having annual income up to Rs.32,000. The subsidy portion
will be restricted to Rs.10,000/- and loan amount to Rs.40,000/-. The loan portion will be
disbursed by the commercial banks, housing finance institutions etc.
48. Equity support by the Ministry of Rural Development (MORD) to Housing and
Urban Development Corporation (HUDCO) has been increased to improve the outreach of
housing finance in rural areas. In addition, an Innovative Scheme for Rural Housing and
Habitat Development and Rural Building Centres (RBCs) has been introduced to encourage
innovative, cost effective and environment friendly solutions in building/housing sectors in
rural areas.
49. A National Mission for Rural Housing and Habitat has been set up to address the
critical issues of `housing gap’ and induction of science and technology inputs into the
housing/construction sector in rural areas.
50. Samagra Awaas Yojana, a comprehensive housing scheme, was launched in 1999-
2000 on pilot project basis in one block in each of 25 districts of 24 States and in one Union
Territory with a view to ensuring integrated provision of shelter, sanitation and drinking
water. The underlying philosophy is to provide for convergence of the existing rural housing,
sanitation and water supply schemes with special emphasis on technology transfer, human
resource development and habitat improvement with people’s participation. The existing
schemes of housing, drinking water and sanitation will follow the normal funding pattern.
However, a Special Central Assistance of Rs 25.00 lakh would be provided for each block for
undertaking overall habitat development and IEC works with 10 per cent contribution coming
from the people.
51. In 1999-2000 (up to February, 2000), Rs.1438.39 crore has been spent and 7.98
lakh dwelling units have been built under the IAY. In the Annual Plan 2000-01, the Central
outlay of Rs.1710.00 crore has been provided for Rural Housing.
AREA DEVELOPMENT PROGRAMMES: DROUGHT PRONE AREA
PROGRAMME (DPAP), DESERT DEVELOPMENT PROGRAMME (DDP) AND
INTEGRATED WASTELANDS DEVELOPMENT PROGRAMME (IWDP)
52. The Drought Prone Area Programme (DPAP), Desert Development Programme
(DDP) and Integrated Wastelands Development Programme (IWDP) are being implemented
with effect from 1.4.1995 on a watershed basis, as per the recommendations of the Technical
Committee on DPAP and DDP headed by Dr. C.H. Hanumantha Rao. The common
guidelines for Watershed Development provide for a uniform strategy in the implementation
of all area development programmes. The main features of this strategy are:
· Area development programmes to be implemented exclusively on watershed
basis.
· Programmes and activities to be confined to the identified watershed of about
500 hectares and are to be executed on a project basis spanning over a period
of four to five years.
· Watershed project to cover a village, as far as possible.
· Elaborate institutional mechanism at various levels clearly defined for
effective participation of the local people and the PRIs in all stages of project
management.
· DRDA/ZP to be the nodal Government agency at the district level to act as a
facilitator and provider of finances and technical assistance to the people’s
orgasnisations executing the watershed projects.

Drought Prone Area Programme (DPAP)
53. DPAP aims at to minimise the adverse effects of drought on production of crops
and livestock and productivity of land, water and human resources ultimately leading to the
drought proofing of the affected areas. It also aims at promoting overall economic
development and improving the socio-economic conditions of the resource poor and
disadvantaged sections inhabiting the programme areas. The DPAP is in operation in 947
blocks of 161 districts in 13 States. Under DPAP, Rs.89.44 crore has been spent during
1999-2000. For 2000-01, the Central outlay of Rs.190.00 crore has been provided for DPAP
as against Rs.95.00 crore in 1999-2000.

Desert Development Programme (DDP)
54. DDP has been envisaged as an essentially land based activity and conceived as a
long term measure for restoration of ecological balance by conserving, developing and
harnessing land, water, livestock and human resources. The main objectives of this
programme are: (i) combating drought and desertification; (ii) encouraging restoration of
ecological balance; (iii) mitigating the adverse effects of drought and adverse edaphoclimatic
conditions on crops and livestock and productivity of land, water and human
resources; (iv) promoting economic development of village community; and (v) improving
socio economic conditions of the resource poor and disadvantaged sections of village
community viz; assetless and women.
55. Under DDP, Rs.49.22 crore has been spent during 1999-2000. In the Annual Plan
2000-01, the Central outlay of Rs.135.00 crore has been provided for DDP vis-à-vis Rs.85.00
crore in 1999-2000.
56. Under DPAP and DDP, funds are directly released to DRDAs/Zilla Parishads for
implementation of the programme. From 1999-2000, the funding pattern under these
programmes have been changed to 75:25 cost sharing basis between the Centre and the
States.

Integrated Wastelands Development Programme (IWDP)
57. IWDP has been under implementation since 1989-90 wherein wastelands are
being developed with the active participation of stakeholders i.e. user groups, self help groups
and PRIs. Here, the projects are sanctioned in favour of DRDAs/ZPs for the period of five
years. The projects are implemented through the Project Implementing Agencies (PIAs)
which can be a Line Department or a reputed NGO having sufficient experience in the field
of watershed development. The programme is implemented all over the country.
58. IWDP is a 100 per cent Central Sector scheme. The cost norm is Rs.4000 per
hectare. The basic objective of this scheme is to take up integrated wastelands development
based on village/micro watershed plans. The stakeholders prepare these plans after taking
into consideration land capability, site conditions and local needs. The scheme also helps in
generation of employment in rural areas besides enhancing people’s participation in the
wastelands development programmes at all stages. This leads to equitable sharing of benefits
and sustainable development.
59. The major activities taken up under the scheme are: (i) soil and moisture
conservation measures like terracing, bunding, trenching, vegetative barriers etc; (ii) planting
and sowing of multi-purpose trees, shrubs, grasses, legumes and pasture land development;
(iii) encouraging natural regeneration; (iv) promotion of agro-forestry and horticulture; (v)
wood substitution and fuel wood conservation measures; (vi) measures needed to disseminate
technology; training, extension and creation of greater degree of awareness among the
participants; and (vii) encouraging people’s participation.
60. About 247 IWDP projects in 25 States with a total outlay of Rs.778.12 crore to
treat total project area of 15.98 lakh hectare were sanctioned before March 31, 1999. These
projects are at various stages of implementation. Out of these, the projects taken up before
March 31, 1995 have more or less been completed. Consequently, projects totalling 11 lakh
hectares are under implementation under the common guidelines.
61. 39 projects covering an area of 3.83 lakh hectare have already been approved by
the Project Sanctioning Committee. It is expected that projects covering another 8 lakh
hectare would be sanctioned during 1999-2000 and Rs.40.72 crore has been spent (up to
January, 2000). For Annual Plan 2000-01, the Central outlay has been enhanced to
Rs.480.00 crore vis-à-vis Rs.82.00 crore in 1999-2000.
62. In pursuance to the Government decision to bring the unification of multiplicity of
Wasteland Development Programmes of different Ministries/Departments, within a
framework of `Single National Initiative’, the common guidelines for implementation of
watershed projects/programmes by the Ministry of Rural Development and Ministry of
Agriculture have been evolved and an effort is being made to bring them under one
umbrella/Ministry.

LAND REFORMS
63. Land reforms have been viewed both as a means for achieving redistributive
justice and as means for attaining higher levels of agricultural production and income in the
rural areas. Access to land is still a major source of employment and income in rural areas.
Therefore, the issue of agrarian restructuring continues to receive the priority. The major
components of the Land Reforms Policy include among others, detection and distribution of
ceiling surplus lands, tenancy reforms, consolidation of land holdings, providing access to
poor on common lands and wastelands, preventing the alienation of tribal lands and providing
land rights to women. Further, for the successful implementation of land reforms, updating
of land records by traditional methods as well as through computerisation is an essential prerequisite.
64. Since land is a State subject, the responsibility of implementing land reforms rests
with the State Governments. However, two Centrally Sponsored Schemes (CSS) viz;
`Strengthening of Revenue Administration and Updating of Land Records’ (SRA & ULR)
and `Computerisation of Land Records’ (CLR) are being implemented by the Ministry of
Rural Development.
65. The CSS of `Strengthening of Revenue Administration and Updating of Land
Records’ is designed to provide support to the ongoing programmes of tenancy reforms. The
scheme places emphasis on modernisation of cadastral survey procedures through
protogrammetric check methods, further strengthening of training infrastructure facilities for
revenue, survey and settlement staff, to enable them to handle modern survey equipments
effectively, construction of Record Rooms and office cum Residence of Patwarais/Talathis in
remote and tribal areas, purchase of survey equipments for offices of revenue administration
particularly at grassroots level, etc. From 1987-88 to 1999-2000, funds to the tune of
Rs.162.74 crore have been provided to the States/UTs as Central share under the Scheme, out
of which Rs.132.30 crore have been utilised (i.e. 81.30 per cent utilisation). Equal amount
towards State share has also been utilised by the States. During 1999-2000, against the
budget provision of Rs.10 crore, funds to the tune of Rs.8.08 crore have been released to the
States up to January, 2000. In the Annual Plan 2000-01, the Central outlay of Rs.25.00 crore
has been provided for SRA & ULR.
66. The Centrally Sponsored Scheme on Computerisation of Land Records was
started in 1988-89 as a pilot project in eight States. It was started with the sole objective of
ensuring issue of timely and accurate copies of record of right to the land owners by the
Tehsildar. At present, the scheme is being implemented in 528 districts of the country
leaving only those districts where there are no land records. Also 1557 tehsils/talukas have
been covered under programme till 31.3.2000. Since inception of the scheme, the Ministry of
Rural Development has released Rs.141.61 crore as on 31.3.2000. The utilisation of funds
reported by the States/UTs is Rs.70.63 crore, (49.88 per cent utilisation). During 1999-2000,
budget provision under the scheme is Rs.33.0 crore, out of which Rs.28.19 crore have already
been released to various States. The Central outlay of Rs.50.00 crore has been provided for
CLR for 2000-01.
67. The process of alienation of tribal land has continued since independence because
of an influx of non-tribals into tribal areas as a result of various developmental projects,
exploitation of natural resources and industrial activities. It is an irony that on one side
outsiders/non tribals infiltrate into the Schedule areas in the name of development while on
the other hand local tribal population migrate to urban areas in search of employment/job
opportunities. This has given rise to severe discontent in the tribal areas. It is therefore
necessary that the land issue which forms the crux of problem, must be effectively addressed
All the concerned State Governments have accepted the policy to prohibit transfer of land
from tribals to non tribals and restore the alienated lands to the tribals, and have enacted laws
to this effect. These States include Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh,
Madhya Pradesh, Orissa, Rajasthan and West Bengal.
68. As per the latest information available with the Ministry of Rural Development,
till December 1999, total number of 3.75 lakh cases covering an area of 8.55 lakh acres were
registered under laws pertaining to prevention of alienation of tribal lands. Out of this, 1.63
lakh cases had been disposed of in favour of tribals and in 1.58 lakh cases, they had been
given possession of land covering an area of 4.33 lakh acres. Some existing land legislations
pertaining to alienation and restoration may probably require further improvement in as much
as that the conditionalities attached to restoration were restrictive and in real sense, no
restoration could take place.
69. Consolidation of fragmented agricultural land holdings forms an integral part of
the Land Reform Policy and the Five Year Plans have accordingly been laying stress on its
implementation. This operation is considered necessary for the planned development of the
villages and achieving efficiency and economy in agriculture. In pursuance of this, many
States had enacted legislations but not much progress could be made except in the States of
Uttar Pradesh, Haryana and Punjab. In other States, work was continued for some years and
lost momentum thereafter. In the State of Uttar Pradesh, even now annually about 900 to
1000 villages are being covered under this activity. So far an area of 1615.30 lakh acres have
been consolidated all over the country.

PANCHAYATI RAJ INSTITUTIONS
70. The Seventy Third Constitutional Amendment Act, 1992 has given impetus to
democratic decentralisation in the country by conferring Constitutional status on the
Panchayati Raj Institutions (PRIs). Consequent upon the enactment of the Act, almost all the
States/UTs except Jammu and Kashmir, Arunachal Pradesh, and NCT of Delhi have enacted
their legislation. With passing of appropriate legislations by the State Governments and
conduct of elections to the PRIs, Panchayati Raj Bodies have been set up in almost all the
States with a few exceptions.
71. The Provisions of the Panchayats (Extension to the Scheduled Areas) Act 1996
has come into force with effect from 24th December, 1996 and extend Panchayats to the tribal
areas of eight States, viz; Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Maharashtra,
Madhya Pradesh, Orissa and Rajasthan. It intends to enable tribal society to assume control
over its own destiny, preserve its cultural ethos and conserve its traditional rights over natural
resources.
72. Article 243 (I) of the Constitution provides for the constitution of State Finance
Commission (SFC) to review the financial position of Panchayats and to make
recommendations regarding principles governing distribution of net taxes between State
Governments and the Panchayats, assignment of taxes and grant-in-aid to Panchayats. All the
States barring Arunachal Pradesh and Bihar have constituted their respective SFCs. The
SFCs in these States except in Sikkim and Goa have submitted their reports to their
respective State Governments. Some of the States have accepted the recommendations of the
SFCs in toto, while in other States, the SFC report have either been partially accepted or are
under scrutiny. In some States like Kerala, the second SFC has also been constituted.
73. Article 243 (G) of the 73rd Constitutional Amendment Act endows the PRIs with
the requisite financial and administrative powers to enable them to function as effective
institutions of local self-government. It envisages the establishment of a democratic
decentralised development process through people’s participation in decision-making, in
implementation and in the delivery process. In order to achieve this objective, the
Constitution provides for devolution of powers and responsibilities upon Panchayats at
appropriate levels for economic development and social justice in respect of 29 Subjects as
listed in the Eleventh Schedule of the Constitution. These are under various stages of
operationalisation in different States. In fact, in some States like Kerala, Madhya Pradesh,
Uttar Pradesh and Tamil Nadu the process of devolution has been carried out effectively with
the transfer of funds, functions and functionaries to the PRIs in respect of selected items.
74. The State Governments are required to constitute District Planning Committees
(DPCs) as envisaged under Article 243 (Z) and (D) of the 74th Constitutional amendment Act
to facilitate the process of decentralised planning. DPCs are to be set up in each district to
prepare composite plans covering both urban and rural areas. However, only nine States viz
Haryana (only in 3 Districts), Karnataka (in 10 out of 27 districts), Kerala, Madhya Pradesh,
Rajasthan, Sikkim, Tamil Nadu, Tripua and West Bengal and two Union Territories, viz,
Andaman & Nicobar Islands and Daman & Diu have taken action to constitute DPCs. The
formation of DPCs must receive top priority by the State Governments, as it is only then that
planning would genuinely begin from the grassroots.
75. The Year of 1999-2000 was declared as `Year of the Gram Sabha’ by the
Government of India in recognition that the Gram Sabha is potentially the most significant
institution for participatory democracy and decentralisation. The State Governments have
been requested to initiate measures to energise Gram Sabhas. To ensure greater transparency
and accountability, attention of State Governments have also been drawn to the importance of
social audit in implementation of development programmes especially rural development
programmes through Gram Sabha.
76. In the light of 73rd Constitutional Amendment Act, the District Rural
Development Agencies (DRDAs) are also being restructured to suit the changed scenario.
DRDAs would have to work under the overall control and supervision of the Zilla Parishads.
77. In order to make decentralised development a success, a time bound training
programme, in phases, has been initiated for the new entrants into the PRIs so as to make
them familiar with the implementation of various programmes, technologies and other
requisite information.