Rural Employment Schemes & Development

Rural Infrastructure Development

Bharat Nirman

Bharat Nirman is a time-bound business plan for action in rural infrastructure. Under Bharat Nirman, action is proposed in the areas of irrigation, rural housing, rural water supply, rural electrification and rural telecommunication connectivity.

Rural Roads

To upgrade rural infrastructure, the Government has formulated a proposal for providing the road connections to more than 38,484 villages above 1000 population and all 20,867 habitations above 500 populations in hilly and tribal areas.

To achieve the targets of Bharat Nirman, 1,46,185 kms. of road length is proposed to be constructed by 2009. This will benefit 66,802 unconnected eligible habitations in the country. To ensure full farm to market connectivity, it is also proposed to upgrade 1,94,132 kms. of the existing Associated Through Routes. A sum of approximately Rs.48,000 crore is proposed to be invested to achieve this.

The main thrust of research and development (R&D) in the roads sector is to build a sustainable road infrastructure comparable to the best roads in the world. The various components of this strategy are improvement in design, modernization of construction techniques, introduction of improved material conforming to latest trends, evolving better and appropriate specifications, encouraging development and use of new technologies etc. The dissemination of these matters is done through the publication of new guidelines, code of practices, instructions/circulars, compilation of state-of-the-art reports and seminars/presentations etc. The research schemes sponsored by the Department are generally 'applied' in nature, which, once completed, would enable them to be adopted by user agencies/departments in their work in the field. The areas covered are roads, road transport, bridges, traffic and transportation techniques etc. The Department takes the help of various research institutions, academic institutions and universities to implement the schemes. An outlay of Rs.600.00 lakhs has been provided for R&D in 2007-08. Some of the ongoing major schemes are as follows:

• Roads:
  • Development of GIS based National Highways information system;
  • Guidelines for soil nailing techniques in highway engineering;
  • Pilot study on effect of overloading on road infrastructure;
  • Investigation on field performance of bituminous mixes with modified binders;
  • R&D Studies on performance evaluation of rigid pavements on high density traffic corridors using instrumentation supported by laboratory tests.

  In addition to the above, the proposal of IIT, Roorkee for establishment of the Ministry's Chair in it in the area of development of Highway System has also been sanctioned.

• Bridges:
  • Creation of complete range of independent testing facility at Central Road Research Institute (CRRI ), New Delhi.

Rural Housing

Housing is one of basic requirements for human survival. For a shelterless person, possession of a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu.

The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house. The details of the scheme along with its performance are given below:

Indira Awaas Yojana (IAY)

The Government of India is implementing Indira Awaas Yojana (IAY) since the year 1985-86 to provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the scheduled castes, scheduled Tribes and freed bonded labourers categories. From the year 1993-94, the scope of the scheme was extended to cover non-Scheduled Castes and Scheduled Tribes rural BPL poor, subject to the condition that the benefits to non-SC/ST would not be more than 40% of the total IAY allocation. The benefits of the Scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action, 3% of the Houses are reserved for the rural Below Poverty Line physically and mentally challenged persons, from 2006-07 onward, funds and physical targets under IAY are also being earmarked for BPL minorities in each state.

Under the scheme, financial resources are shared between the centre and the states on a 75:25 basis. Since, reduction of shelterlessness is the primary objective, 75% weightage is given to housing shortage and 25% to the poverty ratios prescribed by Planning Commission for state level allocation. For district level allocation, 75% weightage is given again to housing shortage and 25% to SC/ST population of the concerned districts.

On the basis of allocations made and targets fixed, district Rural development Agency (DRDAs)/Zilla Parishada (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required.

The ceiling on construction assistance under the IAY has been enhanced w.e.f. 1.4.2008, Rs.25, 000/- to Rs.35,000/- per unit in the plain areas and from Rs.27,500/- to Rs.38,500/- in hilly/difficult areas. For upgradation of kutcha house, the financial assistance has also been enhanced from Rs.12,500/- to Rs.15,000/- per unit. In addition, The Reserve Bank of India has been requested by the Ministry of Finance to include IAY houses under the Differential Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit at an interest rate of 4%.

Further, the dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member.

The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary.

The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited.

No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries.

About 181.51 lakh houses have been constructed under IAY since inception of the Scheme with an expenditure of Rs.36900.41 crores (upto 31/5/2008).

Performance during the year 2007-08

During 2007-08, the Central allocation for Rural Houseing was Rs.40,322.70 crore. The target for construction/upgradation of IAY houses was 21.27 lakh. Against this target, 19.88 lakh houses were constructed/upgraded by incurring an amount of Rs.5,458.01 crores (including State share).

Performance during the year 2008-09

The Central allocation for 2008-09 under the IAY is Rs.5,645.77 crore for the target of constructing/upgrading 21.27 lakh IAY houses. Out of this, an amount of Rs.1,694.48 crore has been released as part of first instalment and 85,879 houses have been constructed so far, (upto 31/5/2008).

Irrigation

Under the Irrigation Component of Bharat Nirman, the target of creation of additional irrigation potential of 1 crore hectare in 4 years (2005-06 to 2008-09) is planned to be met largely through expeditious completion of identified ongoing major and medium irrigation projects. Irrigation potential of 42 lakh hectare is planned to be created by expeditiously completing such ongoing major and medium projects.

There is a definite gap between irrigation potential created and the potential utilized. Under Bharat Nirman it is planned to restore and utilize irrigation potential of 10 lakh hectare through implementation of extension, renovation and modernization of schemes alongwith command area development and water management practices.

There are considerable areas in the country with unutilised ground water resources. Irrigation potential of 28 lakh hectare is planned to be created through ground water development.

The remaining target for creation of irrigation potential of 10 lakh hectare is planned to be created by way of minor irrigation schemes using surface flow.

10 lakh hectare of irrigation potential is also planned by way of repair, renovation and restoration of water bodies and extension, renovation and modernization of minor irrigation schemes.

Telephone Connections

Telecom connectivity constitutes an important part of the effort to upgrade the rural infrastructure. Under the Bharat Nirman Programme, it will be ensured that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), shall be covered. Out of the above villages, connectivity in 14,183 remote and far flung villages will be provided through digital satellite phone terminals. Assistance for both capital as well as operational expenditure for these VPTs will be met out of the Universal Services Obligation Fund (USOF).

Rural Water Supply

To build rural infrastructure, Bharat Nirman has been launched by the Government of India in 2005 to be implemented in a period of four years from 2005-06 to 2008-09. Rural drinking water is one of the six components of Bharat Nirman. During Bharat Nirman period, 55,067 un-covered and about 3.31 lakh slipped-back habitations are to be covered with provisions of drinking water facilities and 2.17 lakh quality-affected habitations are to be addressed for water quality problem.

While prioritising the addressal of the water quality problem, Arsenic and Fluoride affected habitations have been accorded priority followed by Iron, Salinity, Nitrate and other contaminants. To ensure that habitations once provided with drinking water supply infrastructure do not slip back and face drinking water problem, sustainability of drinking water sources and systems has been accorded high priority. To achieve drinking water security at village/ habitation level, conjunctive use of water i.e. judicious use of rainwater, surface water and ground water is promoted.

To enable the rural community shoulder the responsibility in management, operation and maintenance of water supply systems at village level, decentralized, demand-driven, community-managed approach in the form of Swajaldhara have been adopted. To further strengthen community participation in the drinking water sector for sustainability, National Rural Drinking Water Quality Monitoring & Surveillance programme has been launched in February, 2006 under which 5 persons in each Gram Panchayat are to be trained to carry out regular surveillance of drinking water sources for which 100% financial assistance including water testing kits, are provided.

Rural Electrification

Ministry of Power has introduced the scheme Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) in April 2005, which aims at providing electricity in all villages and habitations in four years and provides access to electricity to all rural households. This programme has been brought under the ambit of Bharat Nirman.

Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution Backbone (REDB) with at least a 33/11KV sub-station, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible.

This infrastructure would cater to the requirements of agriculture and other activities in rural areas including irrigation pump sets, small and medium industries, khadi and village industries, cold chains, healthcare and education and IT. This would facilitate overall rural development, employment generation and poverty alleviation.

Subsidy towards capital expenditure to the tune of 90% will be provided, through Rural Electrification Corporation Limited (REC), which is a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy @ Rs.1500/- per connection in all rural habitations.

The Management of Rural Distribution is mandated through franchisees. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in the execution of Rural Electrification projects.

Pradhan Mantri Gram Sadak Yojna

The Pradhan Mantri Gram Sadak Yojna (PMGSY) - External website that opens in a new window was launched on 25 December 2000 as a fully funded Centrally Sponsored Scheme. The primary objective of the PMGSY is to provide connectivity to all the eligible unconnected habitations of more than 500 persons in the rural areas (250 persons in the hilly and desert areas) by good quality all-weather roads.

Under Bharat Nirman, goal has been set to provide connectivity to all the habitations with population of more than 1000 in the plain areas and habitations with a population of 500 or more in hilly and tribal areas in a time-bound manner by 2009. The systematic upgradation of the existing rural road networks is also an integral component of the scheme. Accordingly, an Action Plan has been prepared for connecting 66,802 habitations with 1,46,185 km of all-weather roads. This Action Plan also envisages upgradation/renewal of 1,94,130 km of the existing rural road network. Subsequently, based on ground verification by States, 62,985 habitations were found eligible to be connected under the programme, out of which 3421 habitations have been connected under other schemes. Thus, the revised target is to connect 59,564 habitations. It is estimated that an investment of about Rs.48,000 crore would be required for achieving the targets under Bharat Nirman. The implementation strategy focuses on quality, cost management and 'on time' delivery.

Up to July, 2008, project proposals amounting to Rs.81,717 crore have been approved against which a sum of Rs.38,499 crore has been released for 86,146 roads covering a length of 3,31,736 km. Against these, 52,218 road works having road length of 1,75629 km have been completed with a cumulative expenditure of Rs.35,295 crore.

Rural Housing

Housing is one of basic requirements for human survival. For a shelterless person, possession of a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu.

The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house. The details of the scheme along with its performance are given below:

Indira Awaas Yojna (IAY)

The Government of India is implementing Indira Awaas Yojana (IAY) since the year 1985-86 to provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the scheduled castes, scheduled Tribes and freed bonded labourers categories. From the year 1993-94, the scope of the scheme was extended to cover non-Scheduled Castes and Scheduled Tribes rural BPL poor, subject to the condition that the benefits to non-SC/ST would not be more than 40% of the total IAY allocation. The benefits of the Scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action, 3% of the Houses are reserved for the rural Below Poverty Line physically and mentally challenged persons, From 2006-07 onward, funds and physical targets under IAY are also being earmarked for BPL minorities in each state.

Under the scheme, financial resources are shared between the centre and the states on a 75 : 25 basis. Since, reduction of shelterlessness is the primary objective, 75% weightage is given to housing shortage and 25% to the poverty ratios prescribed by Planning Commission for state level allocation. For district level allocation, 75% weightage is given again to housing shortage and 25% to SC/ST population of the concerned districts.

On the basis of allocations made and targets fixed, district Rural development Agency (DRDAs)/Zilla Parishada (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required.

The ceiling on construction assistance under the IAY has been enhanced w.e.f. 1.4.2008, Rs.25, 000/- to Rs.35,000/- per unit in the plain areas and from Rs.27,500/ - to Rs.38,500/- in hilly/difficult areas. For upgradation of kutcha house, the financial assistance has also been enhanced from Rs.12,500/- to Rs.15,000/- per unit. In addition, The Reserve Bank of India has been requested by the Ministry of Finance to include IAY houses under the Differential Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit at an interest rate of 4%.

Further, the dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member.

The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary.

The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited.

No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries.

About 181.51 lakh houses have been constructed under IAY since inception of the Scheme with an expenditure of Rs.36900.41 crores (upto 31/5/2008)

Performance during the year 2007-08

During 2007-08, the Central allocation for Rural Housing was Rs.40322.70 crore. The target for construction/upgradation of IAY houses was 21.27 lakh. Against this target, 19.88 lakh houses were constructed/upgraded by incurring an amount of Rs.5458.01 crores (including State share).

Performance during the year 2008-09

The Central allocation for 2008-09 under the IAY is Rs.56.45.77 crore for the target of constructing/upgrading 21.27 lakh IAY houses. Out of this, an amount of Rs.1694.48 crore has been released as part of first installment and 85879 houses have been constructed so far, (upto 31/5/2008).

Rural Water Supply Programme

Clean drinking water is a basic necessity of life. Supply of clean drinking water in the rural areas has always been one of the highest priorities of the government. A Technology Mission on drinking water named "National Drinking Water Mission" (NDWM) was launched in 1986, which subsequently was rechristened as "Rajiv Gandhi National Drinking Water Mission (RGNDWM) - File referring to external site opens in a new window" in 1991 with three key objectives:

1. Providing safe drinking water to all villages,
2. Assisting local communities to maintain sources of safe drinking water in good condition, and
3. Giving special attention for water supply to Scheduled Castes and Scheduled Tribes.

To achieve the objectives, Accelerated Rural Water Supply Programme (ARWSP) is being implemented to resolve the drinking water problem in rural habitations. The Central Government supplements the efforts of the states by providing financial and technical support. The Tenth Plan emphasizes participatory approach where PRIs should be the key institutions for convergence of drinking water supply programmes at the ground level. The strategy to achieve the Tenth Plan objectives can be briefly summarised as:

1. Accelerating coverage of the remaining Not Covered and Partially Covered habitations including those slipped back from fully covered to partially and not covered categories, with safe drinking water systems.
2. To tackle problems of water quality in affected habitations and to institutionalize water quality monitoring and surveillance systems.
3. To promote sustainability, both of systems and sources, to ensure continued supply of safe drinking water in covered habitations

Accelerated Rural Water Supply Programme (ARWSP) aims at achieving this objective. Considerable success has been achieved in meeting the drinking water needs of the rural population through the said scheme. There are more than 4 million hand pumps and 2 lakh piped water schemes in the rural areas.

The ARWSP was launched during 1972-73. It is currently being implemented through the Rajiv Gandhi National Drinking Water Mission. The scheme aims at coverage of all rural habitations with population of 100 and above, specially the un-reached ones, ensure sustainability of the systems and sources, tackle the problem of water quality and institutionalise water quality monitoring and surveillance through a Catchment Area Approach.

As on 1 April 2005, 96.13 per cent of rural habitations have been Fully Covered (FC) with drinking water facilities and 3.55 per cent are Partially Covered (PC) and 0.32 per cent is Not Covered (NC) with drinking water facilities. There are slippages of FC into NC or PC due to various factors such as lowering of ground water table, systems outliving their lives, increase in population, etc.

Drinking water supply is one of the six components of Bharat Nirman, which has been envisaged to build strong rural infrastructure in four years (2005-06 to 2008-09). The task ahead is to cover all the remaining uncovered habitations and also to cover the slipped back as well as the water quality affected ones. Action Plans from State/UT Governments for achieving the goals of Bharat Nirman in a time bound manner have been obtained.

For ensuring sustainability of the systems, steps were initiated in 1999 to institutionalise community participation in the implementation of rural drinking water supply schemes by incorporating the following three basic principles:

1. Adoption of a demand-driven responsive and adaptable approach based on empowerment of villagers to ensure their full participation in the project through a decision making role in the choice of scheme design, control of finances and management arrangements.
2. Increasing role of government for empowering user groups/gram panchayats for sustainable management of drinking water assets and integrated water management and conservation.
3. Partial capital cost sharing either in cash or kind or both and 100 per cent responsibility of Operation and Maintenance by end-users.

Sector Reforms Projects, based on the above principles were sanctioned in 67 districts on pilot basis. With the experience gained from these pilot projects, reform process has been scaled up in the entire country through Swajaldhara launched on 25 December 2002. A notable feature of Swajaldhara is involvement of Village Water and Sanitation Committee (VWSC)/Panchayati Raj Institutions (PRIs) in planning, implementation, operation and maintenance. This would in turn ensure sustainability of the system. 10 per cent contribution is made by the community and 90 per cent funds are provided by the Central government. In case of SC and ST habitations, community contribution can be in the form of cash, kind, labour or land or a combination of these.

Rajiv Gandhi National Drinking Water Mission (RGNDWM) adopts an integrated approach so that conservation and augmentation of water sources is interrelated with rural water supply schemes to provide sustainable supply of safe drinking water to the rural population. The Mission seeks to provide supply of 40 liters of safe drinking water in rural areas.

An initiative has been taken by Government of India in February 2006 by launching the National Rural Drinking Water Quality Monitoring and Surveillance Programme which envisages institutionalisation of community participation for monitoring and surveillance of drinking water sources at the grass-root level by Gram Panchayats and Village Water and Sanitation Committees, followed by checking the positively tested samples at the district and State level laboratories.

Another initiative taken by the Government is that from 2006-07 onwards focused funding to tackle drinking water has been started. Up to 20 per cent of ARWSP funds are to be earmarked separately for tackling water quality problems. For 2006-07, 20 per cent of ARWSP funds have been allocated for funding under water quality.

Central Rural Sanitation Programme

Rural Sanitation is a State subject. The efforts of the states are supplemented by the Central Government through technical and financial assistance under the Central Rural Sanitation Programme (CRSP) - File referring to external site opens in a new window .

The Programme was launched in 1986 with the objectives of improving the quality of life of rural people and providing privacy and dignity to women. The concept of sanitation was expanded in 1993 to include personal hygiene, home sanitation, sage water and disposal of garbage, human excreta and wastewater. The components of the programme included construction of individual sanitary toilets for household below poverty-line (BPL), conversion of dry latrines to water-pour flush toilets, construction of village sanitary complexes for women, setting up of sanitary marts and production centres, intensive campaign for creating awareness and health education, etc.

Keeping in view the experiences of the Central and state governments, NGOs and other implementing agencies and the recommendations of the Second National Seminar on Rural Sanitation, the strategy for the Ninth Five Year Plan was revised and the programme was restructured form 1 April 1999. The restructured programme moves away form the principle of state-wise allocation of funds, primarily based on poverty criteria, to a demand driven approach in a phased manner. Total Sanitation Campaign (TSC) was introduced and the Allocation Based Programme was phased out by 31 March 2002. TSC is community-led and people-centred. There was a shift from a high subsidy to a low subsidy regime. The TSC approach emphasized awareness-building component and meets the demand through alternate delivery mechanism. School Sanitation has been introduced as a major component to encourage wider acceptance of sanitation among rural masses. The States/UTs are required to formulate project proposals under the TSC in order to claim Central government assistance.

Under the TSC, so far 559 projects in 30 States/UTs have been sanctioned with the total project outlay of about Rs.6240.27 crore. The Central, State and Beneficiary/Panchayat contributions are about Rs.3675.38 crore, Rs.1424.09 crore and Rs.1140.80 crore respectively. The components sanctioned in the 559 projects are

1. Construction of 499 lakh individual household latrines
2. 656690 toilets for Schools
3. 36098 Community Sanitary Complexes
4. 199033 toilets for Balwadis/Anganwadis and
5. 4030 Rural Sanitary Marts/Production Centres.

Besides, funds have been earmarked for start-up activities, Information, Education and Communication (IEC) and Administrative charges. The total numbers of household toilets constructed up to 2005-06 are 14,48,1807.

To add vigour to the implementation of TSC Government of India has separately launched an award scheme 'Nirmal Gram Puraskar'(NGP) for fully sanitised and open defecation free Gram Panchayats, block and districts. In the first year of its institution only 40 PRIs were awarded NGP on 24 February 2005. In the second year the number of awarded PRIs/Blocks and organisation have increased to 772. His Excellency, Dr. A.P.J. Abdul Kalam, President of India, distributed the Awards on 23 March 2006.

Monitoring and Evaluation

The Ministry of Rural Development lays great emphasis on monitoring and evaluation of all rural development programmes in general and poverty alleviation and employment generation schemes in particular, being implemented in various States/UTs.It is well recognised that the success of the programmes largely depends on the effective delivery system and efficient implementation at the grass-roots level so that the programme benefits reach the rural poor in full measures. In order to ensure this, the Ministry has evolved a comprehensive multi-level and multi tool system of Monitoring and Evaluation for the implementation of its programmes. The Monitoring mechanism includes, inter-alia, the Performance Review Committee, Review meetings by the Minister of Rural Development and Ministers of State with the Chief Ministers/ Ministers of Rural development and Officers of the States, the Area Officer Scheme, periodic progress reports, audit and utilisation certificates, video conferencing and field visits. The Ministry conducts quick evaluation/concurrent evaluation of all major programmes. Impact assessment studies to asses the overall impact of programmes of village-level is also conducted in selected district. The Vigilance and Monitoring Committees at State and District Levels in all States/UTs monitor the implementation of Programmes and introduce greater transparency in the process. These Committees inter-alia include MPs/ MLAs representatives of Panchayti Raj Institutions and NGOs. The Members of Parliament both Lok Sabha and Rajya Sabha have been assigned a Central role in the reconstituted V&M Committees and they have been nominated Chairman/Co-Chairman of the district level V&M Committees.

The Ministry has also taken initiatives to strengthen the monitoring mechanism and quality of implementation of programmes by introducing District Level Monitoring (DLM) System in 130 district of 27 States through external agencies which include monthly reporting of physical and financial performance, qualitative reporting about policy and implementation environments in the district and physical verification of the assets crated under various programmes of the Ministry. Similarly DLM of Total Sanitation Campaign (TSC) and Swajaldhara is implemented in 398 districts of the country w.e.f. 1 July 2005 This system aims at providing continuous, transparent and accountable monitoring inputs in reporting format with the objectives of reporting of the process and progress of the programmes covering different components of the programmes. It also aims at identification of gaps in the implementation at the village, block, district and state level. The monitoring system also elicits the stakeholders' views; assesses the institutional issues and document case studies and success stories on best practices, innovations and lesson learned.

In order to strengthen the monitoring mechanism, the Ministry has a panel of about 300 National Level Monitors comprising retired servicemen and Retired Civil Servants to monitor and furnish periodic reports to the Ministry on the implementation of programmes in selected districts including verifying facts of the cases and complaints if any, which may be referred to them.

The Union Government in recent years has given emphasis to e-governance in all possible areas. Accordingly, the Ministry of Rural Development has also initiated action with the state Governments and UTs to ensure that information and progress reports completed by Districts Rural Development Agencies (DRDAs) are sent through the electronic medium. About 400 (DRDAs) have started sending their reports through online. Efforts are being made in this direction to obtain online progress reports from all the remaining DRDAs.

Rural Employment Schemes

National Rural Employment Guarantee Act

Implemented by the Ministry of Rural Development - External website that opens in a new window, National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window is the flagship programme of the Government that directly touches lives of the poor and promotes inclusive growth. The Act aims at enhancing livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

The Act came into force on February 2, 2006 and was implemented in a phased manner. In Phase one it was introduced in 200 of the most backward districts of the country. It was implemented in an additional 130 districts in Phase two 2007-2008. As per the initial target, NREGA was to be expanded countrywide in five years. However, in order to bring the whole nation under its safety net and keeping in view the demand, the Scheme was extended to the remaining 274 rural districts of India from April 1, 2008 in Phase III.

National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window is the first ever law internationally, that guarantees wage employment at an unprecedented scale. The primary objective of the Act is augmenting wage employment. Its auxiliary objective is strengthening natural resource management through works that address causes of chronic poverty like drought, deforestation and soil erosion and so encourage sustainable development. The process outcomes include strengthening grassroots processes of democracy and infusing transparency and accountability in governance.

With its rights-based framework and demand driven approach, National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window marks a paradigm shift from the previous wage programmes. The Act is also a significant vehicle for strengthening decentralization and deepening processes of democracy by giving a pivotal role to the Panchayati Raj Institutions in planning, monitoring and implementation. Unique features of the ACT include, time bound employment guarantee and wage payment within 15 days, incentive-disincentive structure to the State Governments for providing employment as 90 per cent of the cost for employment provided is borne by the Centre or payment of unemployment allowance at their own cost and emphasis on labour intensive works prohibiting the use of contractors and machinery. The Act also mandates 33 percent participation for women. Over the last two years, implementation trends vindicate the basic objective of the Act.

Increasing Employment Opportunities: In 2007-08, 3.39 crore households were provided employment and 143.5 crore person days were generated in 330 districts. In 2008-2009, upto July, 253 crore households have been provided employment and 85.29 crore person days have been generated.

Enhancing Wage Earning and Impact on Minimum Wage: The enhanced wage earnings have lead to strengthening of the livelihood resource base of the rural poor in India; in 2007-2008, more than 68% of funds utilised were in the form of wages paid to the labourers. In 2008-2009, 73% of the funds have been utilized in the form of wages.

Increasing Outreach to the poor: Self targeting in nature, the Programme has high works participation of marginalized groups like SC/ST (57%), women (43%) in 2007-2008. In 2008-2009, upto July, the participation is SC/ST (54%) and women (49%), strengthening Natural Resource Base of Rural India: In 2007-08, 17.88 lakh works have been undertaken, of which 49% were related to water conservation. In 2008-2009, upto July, 16.88 lakh works have been undertaken, of which 49% are related to water conservation.

Financial Inclusion of the poor: The Central government has been encouraging the state governments to make wage payment through bank and post office accounts of wage seekers. Thus far, 2.9 crore (upto July '08) NREGA bank and post office accounts have been opened to disburse wages. The Ministry is also encouraging the National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window workers to obtain insurance under Jan Shri Bima Yojana.

Initial evidence through independent studies indicates enhancement of agricultural productivity (through water harvesting, check dams, ground water recharging, improve moisture content, check in soil erosion and micro-irrigation), stemming of distress migration, increased access to markets and services through rural connectivity works, supplementing household incomes, Increase in women workforce participation ratios and the regeneration of natural resources.

The vision of the Ministry is enabling NREGA become a transformative vehicle of empowering local communities to enhance their livelihood security. The Ministry has taken several steps to ensure the Scheme is implemented effectively like encouraging decentralized participatory management, improving delivery systems and public accountability.

The Rozgar Jagrookta Puruskar award has been introduced to recognize outstanding Contributions by Civil society Organizations at State, District, Block and Gram Panchayat levels to generate awareness about provisions and entitlements and ensuring compliance with implementing processes.

Building Capacity to implement a demand driven scheme

To strengthen the capacity and give priority to the competencies required for effective planning, work execution, public disclosure and social audits the Ministry has been conducting training for NREGA functionaries, Thus far, 6.2 lakh PRI functionaries and 4.82 lakh vigilance and monitoring committees have been trained (upto July'08). The Central Government is also providing technical support in key areas of communication, training, work planning, IT, social audits and fund management at all levels of implementation to the state governments.

Using IT for reaching out and inclusion

Web enabled Management Information System (MIS) is one of the largest data base rural households through their engagement in National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window. MIS places all critical parameters such as shelf of projects, sanctioned works, wage payments, number of days of employment provided and works under execution on line for easy public access. The data engineered software has been designed for cross verification of records and generation of alerts to support proactive response by management.

Evolving processes for transparency and public accountability

Monitoring and Evaluation: The Ministry has set up a comprehensive monitoring system. This year, 260 National Level Monitors and Area Officers have undertaken field visits to each of the 330 Phase I and Phase II districts at least once.

For effective monitoring of the projects 100% verification of the works at the Block level, 10% at the District level and 2% at the State level inspections need to be ensured.

Road Map for Further Strengthening of NREGA

Setting up of the Task force on Convergence: In order to optimize the multiplier effects of National Rural Employment Guarantee Act (NREGA) - External website that opens in a new window, the Ministry has set up a Task Force to look at the possibility of convergence of programmes like National Horticulture Mission, Rashtriya Krishi Vikas Yojana, Bharat Nirman, Watershed Development with NREGA. These convergence efforts will add value to NREGA, works and aid in creating durable efforts and also enable planned and coordinated public investments in rural areas.

Sampoorna Grameen Rozgar Yojna

The Sampoorna Grameen Rozgar Yojana (SGRY) (File referring to external site opens in a new window) was launched on 25 September, 2001 by merging the on-going schemes of EAS and the JGSY with the objective of providing additional wage employment and food security, alongside creation of durable community assets in rural areas. The programme is self-targeting in nature with provisions for special emphasis on women, scheduled castes, scheduled tribes and parents of children withdrawn from hazardous occupations. While preference is given to BPL families for providing wage employment under SGRY, poor families above the poverty line can also be offered employment whenever NREGA has been launched.

The annual outlay for the programme is Rs.10,000 crore which includes 50 lakh tonnes on food grains. The cash component is shared between the Centre and the States in the ratio of 75:25. Food grains are provided free of cost to the States/UTs. The payment of food grains is made directly to FCI at economic cost by the Centre. However, State Governments are responsible for the cost of transportation of food grains from FCI godown to work-site/PDS shops and its distribution. Minimum wages are paid to the workers through a mix of minimum five kg of food grains and at least 25 per cent of wages in cash.

The programme is implemented by all the three tiers of Panchayat Raj Institutions. Each level of Panchayat is an independent unit for formulation of Action Plan and executing the scheme. Resources are distributed among District Panchayat, Intermediate Panchayats and the Gram Panchayats in the ratio of 20:30:50.

The Gram Panchayats can take up any work with the approval of the gram sabha as per their felt need and within available funds. Fifty per cent of the funds earmarked for the gram panchayats are to be utilised for infrastructure development works in SC/ST localities. 22.5 per cent resources must be spent on individual beneficiary schemes meant for SCs/STs out of the resource share of District Panchayat and Intermediate Panchayats. Contractors are not permitted to be engaged for execution of any of the works and no middlemen/intermediate agencies can be engaged for executing works under the scheme. The programme is regularly monitored. The programme is being evaluated through impact studies conducted by reputed institutions and organisations sponsored by the Central/State governments.

National Food for Work Programme

The National Food for Work Programme (External website that opens in a new window) was launched in November, 2004 in 150 most backward districts of the country, identified by the Planning Commission in consultation with the Ministry of Rural Development and the State governments.

The objective of the programme was to provide additional resources apart from the resources available under the Sampoorna Grameen Rozgar Yojana (SGRY) (File referring to external site opens in a new window) to 150 most backward districts of the country so that generation of supplementary wage employment and providing of food-security through creation of need based economic, social and community assets in these districts are further intensified. The scheme was 100 per cent centrally sponsored. The programme has since been subsumed in National Rural Employment Guarantee Act (External website that opens in a new window) which has come in force in 200 identified districts of the country including 150 NFFWP districts. The Act provides 100 days of work guarantee to every rural household whose members volunteer to do unskilled manual work.

Swarna Jayanti Gram Swarozgar Yojna

The Swarnjayanti Gram Swarozgar Yojana (SGSY) (External website that opens in a new window) was launched as an integrated programme for self-employment of the rural poor with effect from 1 April 1999. The objective of the scheme is to bring the assisted poor families above the poverty line by organising them into Self Help Groups (SHGs) through the process of social mobilisation, their training and capacity building and provision of income generating assets through a mix of bank credit and government subsidy. The scheme emphasizes establishment of activity clusters through selection of key activities based on aptitude and skill of the people, availability of resources and market potentiality. The scheme adopts a process approach and attempts to build the capacities of the rural poor. It provides for involvement of NGOs/CBOs/Individuals/Banks and Self Help Promoting Institutions in nurturing and development of SHGs, including skill development. The scheme provides for the cost of social intermediation and skill development training based on the local requirement. Flexibility has been given to the DRDAs/States in the utilisation of funds for training, sanction of Revolving Fund, subsidy for economic activity based on the stage of development of groups.

The focus of the programme is on establishing a large number of micro-enterprises in rural areas based on the ability of the poor and potential of each area, both land-based and otherwise, for sustainable income generation. Due emphasis is being laid on different components such as capacity building of the poor, skill development training, credit, training, technology transfer, marketing and infrastructure. The subsidy allowed under the SGSY is 30 per cent of the total project cost, subject to a ceiling of Rs.7,500 (for SC/STs and disabled persons subsidy limit is 50 per cent of the project cost subject to a ceiling of Rs.10,000). For Self-Help Groups (SHGs), subsidy would be 50 per cent of the project cost subject to a ceiling of Rs.1.25 lakh or per capita subsidy of Rs.10,000, whichever is less. There is no monetary ceiling on subsidy for minor irrigation projects for SHGs as well as individual swarozgaris. The SGSY has a special focus on the vulnerable groups among the rural poor. SC/STs account for at least 50 per cent, women 40 per cent and the persons with physical disability constitute 3 per cent of the Swarozgaries respectively. The SGSY seeks to promote multiple credits rather than a one-time credit injection.

The SHGs may consist of 10-20 members and in case of minor irrigation, and in case of disabled persons and difficult areas, i.e., hilly, desert and sparsely populated areas; this number may be a minimum of five. Self Help Groups should also be drawn from the BPL list approved by the Gram Sabha. The SHGs broadly go through three stages of evolution such as group formation, capital formation through the revolving fund and skill development and taking up of economic activity for income generation.

Selection could be made up to 10 key activities per block based on local resources, occupational skills of the people and availability of market so that the Swarozgaris can draw suitable incomes from their investment. Under SGSY each block should concentrate on 4-5 selected key activities and attend to all aspects of these activities in a cluster approach, so that swarozgaris can draw sustainable income from their investments. The scheme lays special emphasis on development of swarozgaris through well designed training courses tailored to the activities selected and the requirement of each swarozgari. SGSY is being implemented through the District Rural Development Agencies (DRDAs) (External website that opens in a new window), with active involvement of panchayati raj institutions, banks and NGOs. It is financed on 75:25 cost-sharing basis between the Centre and the states.

Since the inception of the programme 22.52 lakh Self-Help Groups (SHGs) have been formed covering 66.97 lakh swarozgaris. These include 35.54 lakhs members of the SHGs and 31.43 lakh individual Swarozgaris who have been assisted with a total investment of Rs.14403.73 crore. Out of total Swarozgaris assisted, SCs/STs were 45.54 per cent and women 47.85 per cent. During 2006-2007 the Central allocation for the scheme isRs.1200 crore.