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Rural Development Programmes in Andhra Pradesh: Chapter-Iii
Rural Development Programmes in Andhra Pradesh: Chapter-Iii
Rural Development Programmes in Andhra Pradesh: Chapter-Iii
Introduction
Madhya Pradesh and Orissa to the North, the Bay of Bengal to the East, Tamil
Nadu and Karnataka to the South and Maharashtra to the West. The state also
Andhra Pradesh being one of the most developing states has been making
(1st November, 1996). Rural development has become most important agenda of
changes depending upon the requirement of the people based on the socio,
districts. The rich rivers in the state for irrigation are Krishna, Godavari,
1
Andhra Pradesh, “Making Rapid Strides Growth and Welfare”, The Indian Express,
Ahmedabad Edition, 30th December, 2000, pp.1-2.
2
“Rural Development Policy in Andhra Pradesh – A Profile of Rural Development
Programmes”, Published by the Ministry of Rural Development, Government of Andhra
Pradesh, 2006, pp.33-42.
82
Tungabhadra, Bheem, Manjeera, Penna and other perennial small rivers are the
programmes which led to the creation of plethora of new institutions for balanced
through Five Year Planning. The growth and welfare schemes for sustainable
minimum support price for the farmers, free power supply to the
government has allocated 16.2% of its annual budget for the development
for rural women, Income generating activity, Training for rural women,
programmes.
84
8. MGNREGP: Under this particular scheme wage earning scheme to the
for the weaker and backward class community on a large scale, involving
programme.
priorities on rural development during successive five year plans. The prominent
being the community development programme for the upliftment of rural poor.
The central and state governments have launched many special schemes and anti
Ever since the formation of Andhra Pradesh (1956), the government has
introduced several Rural Development Programmes to help the rural poor through
4
Dwarakanath, H.D., 1995, Op.Cit, pp.27-32.
85
welfare programmes. The priority schemes of rural development under five year
Table-3.1
Five Plan Periods
Plan & Period Priority Schemes of Rural Development Year of
introduction
I Five Year Plan Community Development and National Extension 1952
(1941-56) Programme to achieve Rural Development
Distribution of Land to the Tiller Agriculture 1955
Development Programme
II Five Year Plan Khadi Village Industries, Land Reforms, Panchayati 1957
(1956-61) Raj, Decentralized Planning, Growing importance to
Gram Panchayats and Block
Khadi Village Industries, Land Reforms 1957
Panchayat Raj, Decentralized Planning 1959
Growing importance to Gram Panchayats and Blocks 1960
III Five Year Plan Applied Nutrition Programme 1962
(191-66) Intensive Agriculture Area Development Programme 1964
Green Revolution in the field of Agriculture 1962
High Yielding Variety of Agri Development 1966
Farmers Training and Education Programme 1966
Rural Works Programme 1967
Tribal Development 1968
IV Five Year Hill Area Development Programme 1970
Plan (1969-74) Small Farmers Development Agency 1971
Intensive Rural Employment Programme 1972
Minimum Needs Programmes 1974
Command Area Development 1974
V Five Year Plan Hill Area Development Programme 1975
(1974-79) Food for Work Programme 1975
Rural Housing Programme 1976
Rural Youth Self Employment Training Programme 1978
Integrated Rural Development Programme 1979
VI Five Year National Rural Employment Generation Programme 1980
Plan (1980-85) 20 point Economic Programme 1980
Development of Women and Children in Rural Areas 1983
Tribal / Adivas School Development and Welfare 1984
Programme
VII Five Year Indira Awas Yojana 1985
Plan (1985-90 Rural Landless Employment Programme 1985
Jawahar Rojgar Yojana 1989
Million Well Scheme Programme 1989
Technology Development in Rural Areas 1988-89
Vocational Computer Training Programme to the Rural 1986
Youth
Skill Oriented Training for School going Children 1987
Transformation of Rural Technology through Mass 1988
5
“Rural Development and Five Year Plans”, Kurukshetra, New Delhi, April, 1997.
86
Media
VIII Five Year New Liberalization and Globalization Policy under 1992
Plan (1992-97) PVN Rao
Sustainability of Rural Infrastructure with Newly 1992
formed Economy
Sustainability of Rural Infrastructure with Newly 1992
formed Economy
Encouraging Rural Entrepreneurs under Privatization 1993
Policy
Developing Minor Irrigation and Social Forestry in the 1993
State
Janma Bhoomi – Participation of Rural People in Rural 1995
Development Programme
Prime Minister Gram Sadak Yojana 1996
Prajala Vaddaku Palana (Administration at the Door 1995
Step of Rural Poor – Janma Bhoomi Programme).
IX Five Year Empowerment of Rural Women and Income 1996
Plan (1997-2002) Generating Activities
Micro Finance – Lending of Bank Loan on Easy 1991-2000
Installments to take up economic activity
Rural Housing scheme for the Weaker Sections viz., 1991
SC, ST & BCs
Old Age Pensions to the Village Elderly Persons not 1996
able to earn livelihood – Widow Pensions – Pensions
to the Disabled
X Five Year Plan Common Minimum Needs Programme 2003
(2002-2007) Improving Public Distribution System 2004
Financial Assistance to Handloom Weavers Society 2004
Distribution of Agriculture Tools to the Small Farmers 2005
Remunerative Price to the agriculture Products 2006
Free Power Supply to Agriculture Pump Sets during 2002
YSR Regime
XI Five Year Indira Kranthi Pathakam 2004
Plan (2007-2012) National Rural Employment Guarantee Scheme 2007
Old Age Pensions to the Rural Poor 2008
Abhaya Hastham Scheme 2007
Pension Insurance Scheme for Rural Women 2008
Integrated Land Development Programme 2008
Society for Elimination of Rural Poverty 2007
Purchase of Land and Land Access to the Landless 2004
Agriculture Labourers
Andhra Pradesh Smart Card Project 2006
Rajiv Arogya Sri Health Scheme for Rural Poor 2004
Source: Rural Development Action Plan, Ministry of Rural Development, Government of Andhra
Pradesh, 2008.
87
Rural Development – Budget Estimate and Expenditure in Andhra Pradesh –
2006 to 2012.
several schemes on priority basis to achieve rural development. Every year budget
The table given below indicates the budget estimates incurred on Rural
Table-3.2
Total Expenditure on Rural Development Programmes
Period from 2006-07 to 2011-12
6
“Rural Development – Action Plan”, Ministry of Rural Development, Government of Andhra
Pradesh, 2010.
88
The table given above (table-3.2) reveals that the budget for Rural
Rs. 3880.80 crores in 2010-12 budgets. This indicates that Rural Development
Programme has been identified as top priority of the Government. In the total
Programmes.
Designed with the aim of enabling and supporting the poor in getting
enhanced access to land, Indira Kranthi Pathakam’s land component has come up
a long way expanding from initial land purchase activities to land access activities
positioning sensitive support mechanism for the poor. Along with empowering
5303 women to purchase good quality irrigated lands, land issues pertaining to
184249 poor covering 182670.95 acres have got settled so far in convergence with
the Revenue Department. Over a period of time, land reforms have taken a back
seat and still remain an unfinished agenda. Suffering from other traits of poverty
like lack of voice, bargaining power, access to knowledge etc., the poor are also
suffering from lack of access to secured title or possession over land. Recognizing
land as a critical resource for the poor during the formulation of Andhra Pradesh
Rural Poverty Reduction Project, the land component in Indira Kranthi Patham
was sanctioned with an outlay of Rs. 52.6 crore. The land component of Indira
Kranthi Patham has been working in two directions. One is Land Purchase i.e.
securing the poor and enabling access to productive lands through facilitating
purchase of good quality irrigated lands. The other is land access by facilitating
89
the poor in convergence with the Revenue Department, to have control over their
land in terms of having secured title, handling their lands locked in courts /
The objective of land purchase is to see that the poor become proud owners
of productive lands. Hence, the focus is on facilitating the land less poor to
Salient features
The VOs play a leading role in identifying the lands, negotiating rates, etc.
Stamp and Registration fee and transfer duty have been exempted by the
The land purchase activity has been taken up in 190 villages of 128
mandals in the state where demand had come from the poor women for purchase
of lands. Between 2004 and 2009 about 4539.24 acres of land have been
lakhs in these 190 villages covering 90% of the beneficiaries belong to vulnerable
90
Table.3.3
Details of Purchase of Land and Expenditure
Year No. of Acres Purchased Expenditure in Crores
in Hectares
2006-07 0 0
Best Practices
vulnerable sections often working as labourers on the some lands. Only good
quality productive lands under assured sources of surface irrigation are purchased.
Impact
from Rs. 7000-14000 per cropping season. Income increased in all the sample
91
After the intervention, 76% of them are food secure. It is lesser in other
categories. Due to distribution of land to the poor seasonal migration has come
down and is least among IKP land beneficiaries. As a master of fact there is a
positive shift from child labour to school education and there is an increased
Land is the principal source of livelihood for the tribals. This principal
Regulation Act was enacted in the year 1959 and subsequently amended in 1970,
The tribals are not able to access justice due to factors like lack of legal
handicapped, voice of tribals not being heard and lack of access to government
records.
October-November, 2006 and 2007 to cover 400 plus mandals in the state. The
government has issued guidelines for putting in place this support mechanism
vide GO Ms. No. 312 and 313, dated 07-07-2006. In the meantime, the Mandal
Samakhyas and Zilla Samakhya have not only hired the services of people with
7
“Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural
Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012,
p.9.
92
legal and revenue background but also are training their own community members
in land matters so that they can themselves handle their land problems.
support structures like land centres where required information and records are
made available, a panel of lawyers to help them fight out their court cases, a group
of youth from the community trained in survey etc. to handle the issue from all
the angles.
Table-3.5
Details of Purchase of Land and Expenditure
Year No. of Acres Purchased Expenditure in Crores
Linking banks with SHGs: The bank linkage scheme was initiated in
Andhra Pradesh in 1992-93 with the linkage of 8 SHGs with SBI, Vysya Bank
93
and Sri Anantha Grameena Bank. Due to constant efforts by the government, the
program has gathered momentum only in 1997. All nationalized banks, RRBs and
7 models of delivering credit to rural poor through SHG system have been
Bank Linkage Programme within the scope of RBI directives. The nationalized
banks, regional rural banks and cooperative banks are coming forward to advance
empowerment of women by adopting micro credit as a tool and had taken the
achieve this goal. Various training and capacity building programs have been
loans etc. In turn, women SHGs have availed loans from banks and other financial
institutions and improved their economic status. During the year 2008-09, Rs.
11037 crores has been targeted as loan mobilization under SHG Bank Linkage
Outstanding Achievements
In Andhra Pradesh more than 52% SHGs (DWCRA Groups) were financed
by banks under SHG Linkage. This number is more than the all India figure
excluding that of Andhra Pradesh. About 310488 SHGs were provided repeat
8
Dwarakanath, H.D., “Functioning of Self-Help Groups and Income Generating Activities in
Andhra Pradesh”, Kurukshetra, July, 2006, New Delhi, p.14.
9
Dinesh Narayanan and Udit Misra, “An Agenda for India – A Review of NREGA” – Forbes,
India, Mumbai, March, 2010, p.53.
94
finance by banks during 2008-09 which comes to 75% of total SHGs in the state
of Andhra Pradesh. As per the reports of the bankers, the recovery of loans is
themselves of the facility under SHG – Bank Linkage programme and increased
their production to the extent that it supplies to the entire country. Recently the
women SHGs of Nellore and Chittoor districts have got orders for their products
organized at state, national and international level and are able to market their
products though internet. Well known companies viz., Hindustan Lever Limited,
Food World and Apna Bazaar have come forward to tie up with the SHGs and
income generating activities taken up by the SHGs and access to the banks and
financial institutions attracted the attention of not only other states but at
international level also. Many dignitaries from other states and other countries
visited Andhra Pradesh and appreciated the SHG movement and implementation
of Bank Linkage Programme in Andhra Pradesh. The other state governments are
also taking the practice as a model and sending teams to study the implementation
of the programme with an aim to implement in the same way in their states.
95
National Rural Employment Guarantee Scheme (NREGS)
providing at least 100 days of wage employment to rural household whose adult
b. Every registered rural household shall be provided not less than 100
Equal wages shall be paid to men and women. Works approved by the
Gram Panchayat (identified in the Gram Sabha) at village level, the Mandal
96
Parishad at Mandal Level and the Zilla Parishad at District Level only shall be
taken up.
3. Social Audit
Andhra Pradesh is the only state which has established a fully fledged
Social Audit Unit at the state level with exclusive staff. The Unit works
independently and submits its report to government. So far social audit has been
1st round and 188 mandals covered in 2nd round. This is an effective tool to check
corruption and to enhance the accountability to people. So far more than 2001
functionaries have been removed from services or disciplinary actions have been
initiated.
conducting work time motion studies. This is a first of its kind initiative in rural
extra wages are being allowed in summer season keeping in view the increased
fatigue levels of their labour due to high temperature and 30% allowance is also
paid to disabled group throughout the year. The additional allowances increased
make the payments directly to the labourers, wage payments are being made
through individual and Post Office Accounts. So far 123 crore individual accounts
are opened.
97
5. Communication
stakeholders.
tanks.
b. 15080 tanks are taken up with an estimated cost of Rs. 1778 crores. Out of
which 12667 tanks are in progress. So far Rs. 950 crores has been spent.
About 3003 tanks are fully restored and stabilizing 5.13 lakh acres.
c. Horticulture is taken upon the lands of the poor with 100% subsidy on 2.13
lakh acres at an estimated cost of 678 crores. Ongoing SHM & APMIP
d. Land Development.
families have been developed. Land leveling, silt application, clearance of bushes,
deep ploughing, etc are some of the activities taken up under land development
scheme11.
10
“An over view of Andhra Pradesh Smart Card Project”, A Report by the Ministry of Rural
Development, Government of Andhra Pradesh, Hyderabad, 2006.
11
“Progress of NREGS in Andhra Pradesh”, Ministry of Rural Development, Government
Andhra Pradesh, Hyderabad, 2009.
98
7. Asset Creation
Table-3.8
Land Development Programme under NREGP in Andhra Pradesh
Sl.No Work Extent/Nos Value (Cr.)
1. Minor Irrigation Tanks in progress 15080 Nos 9.5
2 Land Development 403333 Acres 605
3 Earthen bunding 687444 Acres 310
4 Silt application 253600 Acres 114
5 Feeder channel 76956 Kms 346
6 Horticulture 315237 Acres 253
7 Mini Percolation tanks 56160 Nos 112
8 Percolation tanks 1397 Nos 11
9 Farm pounds 49261 Nos 90
10 Pebble & Stone bunding 203756 Acres 93
11 Roads 2835 Kms 131
12 Restoration and deepening of wells 20000 Nos 14
13 Desilting of canals 45667 KMs 181
14 Diversion drains 27717 KMs 274
15 Filling water logged areas 54000 Acres 54
16 Bio diesel 1000000 Acres 50
Source: Programme Report of NREGP under Land Development Programme in Andhra
Pradesh, 2008-09.
8. Overview of NREGS in Andhra Pradesh is given below
Table-3.9
Overview of NREGS in Andhra Pradesh
Total Job Cards issued 11314057
Total No.of Works sanctioned 1855213
Total value of works administratively sanctioned (in Crores) 17281.98
No.of works completed 524306
Total expenditure (in Crores) 4736.05
No.of households provided wage employment 7224905
Total individual postal accounts (in Crores) 1.21
Total person days generated (in Crores) 47
Total No.of mandals social audit completed 786
2nd Round Mandals 188
Total No.of Grampanchayats social audit completed 16548
Total No.of Minor irrigation tanks (Indiramma Cheruvulu) taken up 15080
Total estimated amount of MI Tanks (in Crores) 1778
Total No.of Indiramma Cheruvulu completed 3005
Total No.of Indiramma Cheruvulu 1310
In 2008-09
No. of households provided wage employment 5556009
No.of individual wage employment provided (in Lakhs) 96.55
Men 47
Women 53
SCs 27
STs 13.4
BCs 48
Others 12
Total person days generated (in Crores) 20.47
Total No.of days employment provided per household 36.84
Average wage rate per day per person 82.33
99
Comprehensive Land Development Project (CLDP)
1977”. Unless these lands are developed and made productive, they are not of
much use for the livelihoods of the poor. Though several initiatives were taken up
in this direction by the government over the years, the success seems to be
limited. Some of the reasons for this are low investments on agriculture land
technology and comprehensive financial support are found to be the key elements
indicate that it is important to target poor families and work with them to develop
their asset base. Ensuring food security by adopting sustainable dry land
agricultural practices is the central theme in many of the above experiences. With
12
Comprehensive Land Development Project in Andhra Pradesh –A Progress Report –
Department of Land Revenue, Government of Andhra Pradesh, Hyderabad, 2006.
100
Objectives
The main objectives of Comprehensive Land Development Projects are to:
Development Project (Indira Prabha) under RIDF-IX & X with a financial outlay
of Rs. 599 crores to develop 5.3 lakh acres of assigned land of poor SC, ST & BC
communities. So far, an amount of Rs. 388.52 crores have been released under
both the projects and an expenditure of Rs. 329.59 crores were incurred till date13.
Table-3.10
Details of Land Development Project.
S.No. Item RIDF- RIDF-X RIDF-XIII Total
1 Total project outlay 200.32 Cr. 248.60 Cr. 150.26 Cr. 599 Cr.
2 No.of blocks 3904 4273 2766 10943
sanctioned
3 No.of blocks 3904 4243 1472 9604
grounded
4 Percentage of blocks 99% 99% 53% 88%
grounded
5 Areas of sanctioned 185375 ac. 198490 ac 144956 ac. 528821 ac.
blocks
6 Area developed 171056 173227 - 344283 ac.
7 Releases 388.52 Cr.
8 Expenditure 156.85 Cr. 154.25 Cr. 18.49 Cr. 329.39 Cr.
Sources: Department of Rural Development under Comprehensive Land
Development Project i.e. Indira Prabha, Government of Andhra Pradesh,
Hyderabad, 2005-2006.
13
Poverty Eradication Programme in Andhra Pradesh – A Report, 2002-09.
101
Poverty Eradication Programme: Andhra Pradesh Rural Poverty Reduction
poor and poorest of poor rural women in the state and to improve their
improve livelihoods and quality of all the rural poor families in the state forming
part of its target groups i.e. Self-Help Groups formed at grass-roots level.
The project objectives are consistent with the World Bank’s Country
Assistance Strategy (CAS) objectives and its program priorities and principles.
CASs built around the Government of India IX Five Year Plan where the
financial assistance for eradicating poverty. The World Bank has approved to
finance 114 million XDRs in this endeavour. Component wise allocation of loan
funds (IDA share and Government and Andhra Pradesh share) are us under.
Table-3.11
State showing component wise allocation of APRPRP for the project period
(Rs. In Crores)
S.No. Component Original loan Additional loan
1 Institutional and Human Capital building 174.13 191.6
2 Community Investment Fund 512.93 54.9
3 Supporting Pilot Program 36.77
4 Support People with Disabilities 26%
5 Project Management 95.39 82.8
6 Total Project Cost 844.82 329.3
Source: Andhra Pradesh Rural Poverty Reduction Project Report-2002-09.
102
Jobs Mission for the Rural Youth
The Jobs Mission: The jobs mission was set up to address the needs of
next generation of large SHG networks created and nurtured by IKP Employment
from the members of the private sector. EGMM is driven by a private sector cell,
Objective: Articulated by the community, “one job for every poor family”.
Achievements
All trainings are free of cost to benefit the rural unemployment youth, as an
initiative of the government. Based on the impact of the work, the budget has
103
increased from Rs. 10 crores in 2005-06 to Rs. 100 crores in 2007-08. The budget
comes from the State Government Revenue and Interior Areas Development
(RIAD) budget and the Government of India SGSY funds through the DRDAs. In
this connection, 191 training centres have been set up in sectors ranging from
services, construction to textiles, with a focus on tribal and remote areas. About
82000 youth have been trained in the last two and half years and 1000 youth are
currently in the classrooms. 80% of the youth trained have been linked to entry
level private sector jobs. Annual salaries are ranging from Rs. 45,000 upwards in
public private partnership mode to identify, train and provide placement to youth
in entry level corporate jobs in hospitality, retail, sales, tourism, banking, rural
created up to 2007-08 are 1,12,435. Placements shown upto end of February, 2009
are 61,156. This programme has become successful in most of the urban areas14.
The major goal of the health and nutrition strategy under the APRPRP is to
operate in convergent mode with the line agencies by looking at gaps in the
14
Jobs Mission for the Rural Youth – A Progress Report of Employment Generation for Rural
Youth, 2009.
104
existing public health and nutrition services that are provided by the line
mandal and district level, institutionalization of the fixed Nutrition and Health
Days (NHDs) in convergence with line departments and regular health savings as
safety nets for health emergencies. The intensive health and nutrition strategies
focus on intensive health CRP strategy. 1000 best practitioners from the pilot
mandals have been identified as health CRPs. Since January 2007, the health
CRPs strategy has been implemented in 680 village organizations and established
680 nutrition cum daycare centres. The impact of peri-natal and neonatal
outcomes among the members attended nutrition cum day care centres shows
98.5% safe deliveries, 87.3% normal deliveries, no low birth weight baby born, no
maternal, infant and neonatal deaths happened in 1700 deliveries occurred among
Utnoor, Jainur, Siripur (U) and Inderevelly mandals of Adilabad district with an
enrolment of 2600 children in 3-5 age groups. 400 school dropout children
15
Health and Nutrition – Ministry of Medical and Health, Government of Andhra Pradesh, A
Brief Report, 2008.
16
Activities taken up under Education Component – A note on Community Based Primary
Education, Department of School Education, Government of Andhra Pradesh, 2009.
105
enrolled in formal schools and bridge course at Chintor and V.R. Puram mandals.
The project covers three Giripragathi mandals of Chintoor, Kunavaram and V.R.
young children ages between 2 and 5 years were enrolled in these centres. 560
to enroll in the ECE centres. Exposure visits were arranged for VOs and Members
were identified in Khammam district to establish the ECE centres and survey is
and 150 children were enrolled in the programme. 22 ECE centres were started in
Gudur and Kothaguda mandals of Warangal district and 400 children were
17
Community Migrated Insurance Scheme under India Jeevita Beema Pathakam, Government of
Andhra Pradesh, 2009-10.
106
Community Managed Insurance Scheme
Under insurance initiative, the state government has covered 38.00 lakh
rural landless agricultural labourers under Indira Bima Pathakam (Aam Aadmi
Bima Yojana), 19.51 lakhs under Janasree Bima Yojana and 23.76 lakhs under
other Group Insurance. Total of 81.27 lakhs rural poor persons is covered under
different insurance schemes to create social security among the members of the
Technology (IT) support to provide quality and timely service to the insured
members. Zilla Samakhyas have established Call Centres in all district head
quarters and solarium of Rs. 5000/- handed over to claimant family members
within 24 hours if death occurred. The Government of Andhra Pradesh and LIC of
India have adopted claim settlement system for the first time in the country to
(LPS).
quick and prompt dispersal of old age pensions. This has resulted in more efficient
way of disbursing pensions and has also plugged leakages in pension distribution
107
system. Government is distributing Rs. 200/- on first of every month to old age
persons, weavers, widows and disabled persons. The disabled persons’ pension
has been enhanced from Rs. 200/- to Rs. 500/- from January, 2009. Under
February 201018.
Project Expenditure
2011 is Rs. 1990.53 crores. Expenditure from the last 5 years is given in the
following table.
Table-3.12
Year wise component wise expenditure (Rs. Crores)
Component 2006-07 2007-08 2008-09 2009-10 2010-11 Total
expenditure
Institutional and 77.01 84.17 125.57 98.10 86.82 528.79
Human Capacity
Building
Community 217.78 177.91 142.00 40.12 77.60 835.86
Investment Fund
Project Management 22.96 23.03 25.23 22.19 24.39 139.12
SPP 0.12 0.15 0.00 0.08 0.00 0.78
SPD 0.74 3.19 6.42 5.96 1.72 18.25
SERP Total 318.61 288.45 299.34 166.45 190.53 1522.80
APSWERIES 89.70 52.00 57.00 36.49 0.00 329.03
Grand Total 408.31 341.25 356.34 202.94 190.53 1851.83
below.
18
Functioning of DWCRA Self-Help Groups Impact of Paval Vaddi Initiative, Ministry of Rural
Development, Government of Andhra Pradesh, 2009.
108
Table-3.13
Overall Performance of IKP as on 2011-12
S.No. Indicator Total expenditure
1 No.of SHGs under the Project 850671.00
2 No.of Members in Women SHGs 10182181.00
3 No.of SHGs of Persons with disabilities 23069.00
4 No.of Persons with Disabilities in SHGs 212888.00
5 No.of Village Organizations formed 35525.00
6 No.of Normal Mandal Samakyas formed 1098.00
7 Total No.of Beneficiaries of Income Generating 2365606.00
Activities
8 No.of Households benefiting from Good Security 2363735.00
9 No.of Acres of Land purchased 4540.24
10 No.of Beneficiary families of Land purchased 5303.00
11 Among of Bank Linkage upto March in 2009 (Rs. In 6682.17
Crores)
Source: Indira Kranthi Patham performance and expenditure in Andhra Pradesh, 2012.
the State Government has introduced the PAVALA VADDI Scheme, where in the
government is reimbursing to the members any interest paid by the SHGs over
and above 3% per annum. This has led to significant improvement in loan
repayment. Under this initiatives, 4,75,164 SHGs were given Rs. 52.67 crores
during 2004-05 and in 2005-06. 2,90,825 SHGs were given Rs. 50.02 crores
during 2006-07 and 5,54,359 SHGs were given Rs. 112.30 crores upto March,
2008. During the year upto March 2009, 132.23 crores interest subsidy was given
109
SHGs (repeated finance) as Pavala Vaddi incentive since inception of the
Scheme19.
Diary Intervention
The dairy activity is a major livelihood opportunity for the rural poor in
it has helped the milk producers to get better price for milk and promoted
productivity in the villages. Based on the success evidenced in the pilots, the same
model is replicated in 16 more districts in the state. Bulk Milk Chilling Units
(BMCUs) with a capacity of 2000 to 5000 litres to collect and chill milk to the
(APDDCF Ltd.), the SHGs and their federations covering 2796 Village Milk
Procurement centres with 138800 milk producers and contributed 2.57 lakh litres
of milk per day in peak season and 0.80 lakh liters of milk per day in lean season
moving from input centric model to knowledge and skill based model. It involves
making best use of natural resources locally available and takes best advantage of
19
Community Managed Sustainable Income and Collective Marketing, Government of Andhra
Pradesh, 2009-10.
110
the natural processes. The main objective of CMSA is to reduce the cost of
special focus on small and marginal farmers, tenants, agriculture labour and
women.
districts. It covered 9.32 lakh acres in Kharif and 3.92 lakh acres in Rabi, thus
totaling to 13.24 lakh acres by benefiting 3.18 lakh farmers. Under NREGS, NPM
convergence 10349 compost pits were dug for effective composting and timely
supply of compost, 1197 farm ponds were dug to conserve water recharge ground
water and 4815 vermi compost units were constructed. Under CMSA 154
resource villages were developed and 743 seed banks were established to bring
drastically reduced. The range of savings varied from crop to crop ranging from
Rs. 2,500/- ha in case of Paddy, to Rs. 12500/- ha in case of Cotton and Rs.
37500/- has for Chillies. During last year total savings across the 18 district
Collective Marketing
the best price for their forest produce and agricultural commodities the marketing
111
implemented village level collective marketing of Neem, Redgarm, Greegram,
Chillies, Paddy, Maize, Turmeric, Cashew and NTEP besides agricultural inputs
etc. Details of the marketing intervention of last four years and current year are
Table-3.14
An Overview of Collective Marketing
S. Indicator 2006-07 2007-08 2008-09 2009-10 2010-11
No.
1 No. of MMS involved 502 710 533 1036 845.00
2 No. of VOs involved 1154 2010 783 2071 1662.00
3 No. of families covered 118497 257280 101790 300995 162584.00
4 No. of commodities 57 81 81 79 65.00
handled
5 Volume (lakh quintals) 1.8 24.94 20.65 47.11 58.78
6 Turnover (Rs. Crores) 16 141.9 126.8 320.15 491.61
Source: Abhaya Hastam Scheme under Indira Kranthi Patham, A Progress Report, 2011.
Abhaya Hastam (Indira Kranthi Patham Pension and Insurance scheme for
eradication of poverty, in rural and urban areas through the Indira Kranthi Patham,
strengthening of women SHGs and their federations, covering one crore twenty
five lakh women in the state during the last 3 years. Government is also
large number of women and their families in rural and urban areas are enjoying
stable livelihoods, increased incomes and better quality of life. While economic
poverty. The need for income security in their old age, when their ability to earn
from their physical labour would have reduced considerably has been voiced by
SHG members in various meetings they had with the Chief Minister of Andhra
Pradesh and Abhaya Hastam is the concept developed through such meetings.
the age group of 18, belonging to the Self-Help Groups in Andhra Pradesh. The
scheme envisages contribution of Rs. 30 per month into her pension account. The
for securing better returns on the investment. The corpus thus generated till the
age of 60 years, will be used for giving monthly pension amount to each women,
cover including scholarship to the children of the women, 3) Lump sum transfer
number of years of contribution she makes till 60 years of age. In order to secure
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every women shall receive Rs. 500/- or above pension every month, on crossing
60 years of age till her death. A women joining Abhaya Hastam at the age of 18
will be able to draw Rs. 2200/- per month pension on crossing 60 years of age.
Every woman who joins Abhaya Hastam will have a pass book to record
details of her contribution and she is entitled to receive an annual statement with
the particulars of her contribution and co-contribution from the government and
interest earned on the corpus. On crossing 60 years of age, the monthly pension is
monthly pension on retirement. The other benefits are (a) death and disability
insurance cover in respect of women in the age group of 18 to 59. In the event of
her natural death, Rs.30,000/- is paid to the nominee. In the event of accidental
death, Rs. 75,000/- is paid to her. In case of partial disability Rs. 37500/- is paid to
her. (b) the member’s children studying 9th, 11th and 12 classes will receive a
scholarship of Rs. 1200/- per annum, (c) in the event of the death of the
Women Co-contributory Pension Act 2009 which was passed by the AP State
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Legislature and AP State Legislative Council. The state government has provided
the budget of Rs. 365 crore in the 2009-10 budget estimates towards state
government’s co-contribution. The scheme has already been launched at the state
head quarters and also in the districts by distributing cheques of Rs. 400/- towards
the monthly pension for the SHG women who joined the scheme and attained
retirement age. The enrolment of SHG women of all age groups into Abhya
It is expected that about 1 crore 25 lakh women are likely to join the
scheme. The Andhra Pradesh Government has thus earned the distinction of
rolling out the world’s largest co-contributory pension scheme for the poor in
unorganized sector21.
Smart Cards which are backed by bank accounts. The overall objectives of the
initiatives are:
i. To provide an operational frame work for increasing the outreach of main stream
banking and financial services to the poorest of the poor by using technology
based solution.
ii. To ensure efficient and timely transfer of government benefits of the poor.
iii. To minimize the possibility of fraudulent payments.
iv. To achieve total financial inclusion thorough Smart Cards.
v. To benefit the rural eligible poor.
21
Andhra Pradesh Smart Card Project – A Report, Ministry of Rural Development, Government
of Andhra Pradesh, 2010.
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Approach
work together to open accounts and issue smart cards to the poor. To begin with,
certain Government benefits like social security pensions and NREGS wage
payments will be delivered through this network. In the next stage, banks will
deliver main stream banking services like Savings, Deposits, Remittances, Loans,
poor.
Architecture
Banks lay down the entire infrastructure, in order to achieve this, they
In Andhra Pradesh, the smart card project started with Rural Development
establishing a steering committee at the state level which consists of officials from
the State Government, Reserve Bank of India (RBI) and Bankers. 8 Mandals
(Blocks) are selected for SSP and NREGS payments by issuing smart cards and
laying down EBT platform. 6 Banks namely, SBI, SBH, AB, UBI, APGVB and
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Axis Bank participated in the pilot, project work. Payments under the pilot started
in May 2007 and are continuing till date. So far, 1.2 lakh beneficiaries are
Critical Evaluation
rural women. The state government has introduced several educational institutions
like Bridge Open School, Kasturba Girls High Schools, Sarva Siksha Abhiyan,
Saksharata Mission and Adult Literacy Centres in rural areas which is turn created
socio economic awareness among the self-help groups about growing importance
graduates, the unemployment has increased in the state. Lack of job opportunities
and failure of the government administration in creating jobs has become a serious
in the state.
and 2005 under private sector. The number of private Junior colleges in the state
has increased from 398 to 2449 and Degree colleges from 450 to 1157 during
2006-07. Due to vast growth of corporate colleges, the elite class children could
reap the benefits. However, the quality and results of government colleges in
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Economy
gradually declining. Most of the projects undertaken by the state government are
not completed due to “interstate water disputes”. Though the state economy is
well endowed with natural resources and minerals but is still lagging behind when
increase of 20% in irrigation, the tank irrigation has declined from 10.88 hectares
01. However, the bore well, open wells and dug wells irrigation increased
percentage of area under food crops is higher in Coastal areas when compared to
crops has been increasing over the years due to the changes in cropping pattern, as
Andhra Pradesh is lagging behind like many other states in the field of
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The employment growth of workers in different industries is stagnant during
industrial growth is taking place in the state, it is without additional jobs. Public
investment in industrial sector decreased from 7.36 percent to 6.2 percent after the
post liberalization.
Power Tariff
of power sector. The inflation capacity of power consumption pattern did not
make any progress in the field of agriculture. The power sector is undergoing
including the farmers since 1996-97. The farmers who depend on dug wells and
bore wells in Telangana and Rayalaseema, have been demanding for subsidized
increased power tariff and charges. Added to this, village and small scale
industries also could not benefit due to liberalization policies and lack of
cooperation by power sector officials which are the major reasons for power crisis
in the state22.
Employment generation programmes and food for work scheme for the
rural poor have been snatched away by the contractors, politicians and officials
22
Pattern of Rural Development – A Study of Andhra Pradesh, SEER Division Planning
Commission, Main Findings, New Delhi, 2010, pp.113-135.
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denying employment to the poor village labourers. As a result, employment and
daily income of village labourers have declined. In recent times, state government
Most of the villages from backward Telangana region and Rayalaseema are
migrating to the big cities and industrial areas in search of livelihood. Drought
nature. The small units hitherto surviving on a bare minimum have become
weaving, tailoring, poultry, carpentry, pottery are in deep crisis. The suicide death
region. But the state government has totally failed to create support price to the
The situation in Andhra Pradesh reveals that real development and income
pursued from time to time, balanced development of the state has become
become stumbling block for the emotional integration of the people of all the
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The state government has borrowed about Rs. 57000 crores from internal
and external sources but no irrigation projects were so far completed. The policies
of liberalization, privatization has been dispensing the rural masses from their
opportunities. The benefits and subsidy meant for backward class and the weaker
sections of the society (SC & STs) have been reduced year after the year and
created serious financial crisis to the poor farmers. As such the village economy is
facing economic and social crisis. The growth rate of agriculture is recorded as
2.47 percent which is below the all India level. It is significantly lower than
proposed and much published in vision 2020 document of the state government.
Agriculture growth rates have gone down drastically and employment situation in
affected districts to towns and cities in search of livelihood. Rural labourers from
Vijayawada while the Chittoor and Ananthapur labour migrate to Bangalore and
Chennai. The labour from Nalgonda, Mahabubnagar, Ranga Reddy and Medak
would migrate to Hyderabad, Mumbai and Ahmedabad, while old aged people
The critics are of the opinion that the highly publicized DWCRA, the Self-
Help Groups Scheme could not provide work to the rural women as expected. As
far as the employment and income generating activity is concerned, very little is
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achieved. Whenever the products are produced by DWCRA groups, they are
decorative and artistic and unable to compete with global multinational products.
The experience reveals that, DWCRA Self-Help Groups have become a vote bank
for few political wings. As a whole, the state is lagging behind in respect of
rice mills, flour mills, oil mills and village artisan units. The Agro based units are
closed due to problem in agriculture sector. The status of village artisans is further
Summing Up
globalization, could not benefit the rural poor. In other words, the global market is
making inroads in remote corners of Andhra Pradesh and badly affecting rural
development and industrial sectors. Non agriculture sector also could not develop
and suicidal deaths have become common in backward Telangana region. As such
23
Problems of Employment and Greater Migration of Labour in Andhra Pradesh, the Times of
India, June 28, 2010.
122
unrest, agitation and regional imbalances provoked the people of Telangana to
goals of rural development, under public policy. Until and unless the rural
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