NATIONAL LAW INSTITUTE UNIVERSITY,

BHOPAL

SUBJECT – SOCIOLOGY II

TOPIC – DEVELOPMENT BY CENTRAL

GOVERNMENT IN RURAL INDIA

TRIMESTER - II

SUBMITTED TO – ASSIST.PROF.DR.BIR PAL SINGH

SUBMITTED BY – VANSHIKA CHANSORIA 18BA.LLB110
LOKESH RAJORIA 18BA.LLB125
HRISHIKESH JAISWAL 18BA.LLB126

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 CERTIFICATE

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 ACKNOWLEDGEMENT

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 TABLE OF CONTENT

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 STATEMENT OF PROBLEM

HYPOTHESIS

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 INTRODUCTION

The social life of man has undergone different stages of development. The earliest human
communities lived in loosely organized aggregations of a few families who carried on
mutually interdependent activities in gathering food and defending themselves against
their enemies. Gradually, man acquired skill and knowledge in agriculture. They began
living a settled life. With the development of agriculture and the consequent stabilization
of the source of food, human communities became more permanent. These communities
came to be known as “Village communities”. The village community is the oldest
permanent community of a man.

Rural society or village community consists of people living in a limited physical area
who have common interests and common ways of satisfying them. Rural community is
often looked upon as an association in which there is social interaction of people and their
institutions in the local area. Villages of India constitute the backbone of the country.
Villages continue to constitute 40 % of the national income and therefore play a vital role
in the life of a nation. Agriculture is the backbone of the village life. The progress of
villages depends much on the progress of agriculture. Agriculture is normally associated
with some home industries and crafts.

The rural communities are not free from problems. Though they are simple and less
complex, they have their own social, economic, educational, medical and other problems.
To eradicate these problems various rural developmental programmes have been
undertaken by the government to improve the living conditions of the people.

Rural development implies both the economic betterment of people as well as greater
social transformation. In terms of methods of production, social organization and political
mobilization, rural sector is extremely backward and weak. Moreover, technical
developments in field of agriculture have increased the gap between the rich and poor, as
the better off farmers adopted modern farm technology to a greater extent than the smaller
one’s. The all India Rural Credit Review Committee in its report warned “If the fruits of
development continue to be denied to the large sections of rural community, while
prosperity accrues to some, the tensions social and economic may not only upset the
process of orderly and peaceful change in the rural economy but even frustrate the
national affords to set up agricultural production.” 1

1
Report of the All India Rural Credit Committee, New Delhi, 2003.

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In order to provide the rural people with better prospects for economic development,
increased participation of people in the rural development programmes, decentralization
of planning, better enforcement of land reforms and greater access to credit are needed.
Rural development requires a vast infrastructure. The stress on rural development is also
due to many constraints facing the rural areas, which generally suffer from inadequate
infrastructure facilities and technological advancements. The rural areas are not well
placed in terms of even minimum needs like safe drinking water, primary health and road
transport. This apart, the rural population suffers from indigence, ignorance and illiteracy.
Their traditional outlook towards development has been preventing them from taking full
advantage of the incentives offered by the Government. Also, the ownership of land and
other assets has been heavily concentrated in hands of a few. It is precisely for this reason
that the benefits of rural development programmes failed to reach the rural population
targeted for these benefits to the extent expected. The rural development programmes
intends to reduce the poverty and unemployment, to improve the health and educational
status and to fulfill the basic needs such as food, shelter and clothing of the rural
population.

The term „rural development‟ is the

overall development of rural areas
to improve
the quality of life of rural people.
And it is a
process leading to sustainable
improvement in
the quality of life of rural people
especially the
poor
The term „rural development‟ is the
NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018
overall development of rural areas
to improve
the quality of life of rural people.
And it is a
process leading to sustainable
improvement in
the quality of life of rural people
especially the
poor
The term „rural development‟ is the
overall development of rural areas
to improve
the quality of life of rural people.
And it is a
process leading to sustainable
improvement in
the quality of life of rural people
especially the
poor
The rural developmental
programmes intend to reduce the
poverty and
NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018
unemployment, to improve the
health and
educational status and to fulfill the
basic needs
such as food, shelter and clothing of
the rural
population. To improve the
conditions of rural
people, Government of India
launched some
schemes through the planning
commission o
The rural developmental
programmes intend to reduce the
poverty and
unemployment, to improve the
health and
educational status and to fulfill the
basic needs
such as food, shelter and clothing of
the rural

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

population. To improve the
conditions of rural
people, Government of India
launched some
schemes through the planning
commission o
India is a country of villages and its development is synonymous with the development of
the people living in rural areas. Rural development has been receiving increasing
attention of the governments across the world. In the Indian context rural development
assumes special significance for two important reasons. First about two thirds of the
population still lives in villages and there can not be any progress so long as rural areas
remain backward. Second, the backwardness of the rural sector would be a major
impediment to the overall progress of the economy. This project mainly focuses on the
rural development by the central government accompanied with major schemes and
programs launched by the Government of India to improve the status quo of the people
living in rural villages of the country.

MEANING AND ESSENTIAL ASPECTS OF RURAL DEVELOPMENT

Rural development is a comprehensive socio-economic process undertaken by the

government for purpose of improving the economic and social conditions of the people
living in rural areas. It means “improving and extension of irrigation facilities, expansion
of electricity, improvement in the techniques of cultivation, construction of school
building and provision of educational facilities, health care etc.” 2 Rural development
represents planned programmes to change and to improve the quality of the life-style of
rural people. In the words of Robert Chambers, “Rural Development is a strategy to
enable a specific group of people poor rural women and men, to gain for themselves and
2
http://www.yourarticlelibrary.com/essay/brief-essay-on-rural-development-in-india-696-words/4879.

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 their children more of what they want and need. It involves helping the poorest among
these who seek a livelihood in the rural areas to demand and control more of the benefits
of rural development.”3

COMPONENTS OF RURAL DEVELOPMENT

1. Rural development seeks to transform of all the sectors of rural economy – The primary
sector, Secondary sector and tertiary sector.
2. It is concerned with improvement of social conditions and standard of living of the
ruralites through the provisions of health and medical facilities, employment
opportunities  including vocational training, educational facilities etc.
3. It brings about significant improvement in the socio-economic conditions of the weaker
sections of the rural areas such as the Scheduled Castes, Scheduled Tribes, the landless
agricultural laborers and the marginal and small farmers.

ESSENTIAL ASPECTS OF RURAL DEVELOPMENT

Agricultural development constitutes the crucial and significant aspect of rural

development. Hence it is necessary to give the highest importance to agriculture
development since it forms the backbone of our country. Agricultural development can be
ensured mechanism of agriculture ,consolidation of land holdings ,effective
implementation of land reforms ,use of good variety of seeds, adequate fertilizers,
pesticides, adequate supply of water, proper crop planning and proper harvesting.
1. Rural development must necessarily include proper plans to change the socio-economic
structure of rural set up. By effecting changes in the socio-economic institutions, rural
development seeks to change the socio-economic structure of the rural community. These
changes would ensure maximization and equitable distribution of income among rural
people.
2. Rural development programmes must be politically independent. The effectiveness of the
rural development programmes necessitates political non-interference. The persons
associated with these programmes should be given adequate freedom to carry out their
plans and programmes with undivided attention. Political interference through political
parties and leaders is going to spoil the very purpose of the programme. The required

3
Robert Chambers, Rural Development in India, Oxford University Press, 1987.

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 political freedom should be given to the people in charge of these programmes to go
ahead with their plans and programmes of action.
3. The success of the rural development programmes depends on the co-operative
orientation and attitude among the ruralites. It is essential that all the rural development
programmes must have co-operative orientation. The functioning of the co-operative
societies goes a long way in improving the conditions of the vulnerable sections of the
rural set-up. Co-operation seems to be a powerful instrument of uplifiting the poorer
sections of the rural society. Co-operative societies should be set up performing,
production in cottage industries, marketing, finance or credit and even for the supply of
consumer goods.
4. Programmes of rural development demand the active participation of rural people. No
programme should be imposed forcibly on the ruralties. The programmes should always
be framed on the basis of the felt needs of the people. While formulating these
programmes the opinions, attitudes, drives and interests of the rural people should be
taken into account. Futher, rural people must be motivated properly to take an active role
in the programmes. In this respect honest and respected leaders of the rural areas must
come forward and give proper guidance to the masses.

The process of rural development must represent the entire gamut of change by which a
social system moves away from a state of life perceived as ‘unsatisfactory’ towards a
materially and spiritually better condition of life. Accordingly, from the very beginning,
our planned strategy emphasized rural development and will continue to do so in future.
Strategically, the focus of our planning was to improve the economic and social
conditions of the underprivileged sections of rural society. Thus, economic growth with
social justice became the proclaimed objective of the planning process under rural
development. It began with an emphasis on agricultural production and consequently
expanded to promote productive employment opportunities for rural masses, especially
the poor, by integrating production, infrastructure, human resource and institutional
development measures. During the plan periods, there have been shifting strategies for
rural development. The First Plan (1951-56) was a period when community development
was taken as a method and national extension services as the agency for rural
development. Co-operative farming with local participation was the focus of the Second
Plan (1956-61) strategy. The Third Plan (1961-66) was the period of re-strengthening the
Panchayati Raj System through a democratic decentralized mechanism. Special Area

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

Programmes were started for the development of backward areas in the Fourth Plan
(1969-74). In the Fifth Plan (1974-79), the concept of minimum needs programme was
introduced to eradicate poverty in rural areas. There was a paradigm shift in the strategy
for rural development in the Sixth Plan (1980-85). The emphasis was on strengthening the
socio-economic infrastructure in rural areas, and initiatives were taken to alleviate
disparities through the Integrated Rural Development Programme (IRDP). During the
Seventh Plan (1985-90), a new strategy was chalked out to create skill-based employment
opportunities under different schemes. Special programmes for income generation
through creation of assets, endowments and land reforms were formulated for
participation by the people at the grass root level. The focus of the Eighth Plan (1992-97)
was to build up rural infrastructure through participation of the people. Priorities were
given to rural roads, minor irrigation, soil conservation and social forestry. Strategic
changes were made in the Ninth Plan (1997- 2002) to promote the process of nation-
building through decentralized planning. Greater role of private sector was also ensured
in the development process. The Ninth Plan laid stress on a genuine thrust towards
decentralization and people’s participation in the planning process through institutional
reforms. It emphasized strengthening of the panchayat raj and civil society groups for
promoting transparency, accountability and responsibility in the development process.

The role of the government, in general, had to shift, from being the provider, to the
facilitator of development processes by creating right types of institutional infrastructure
and an environment conducive to broad-based economic development.

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT

INTRODUCTION

The Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA is an

Indian job guarantee scheme, enacted by legislation on August 25, 2005. The scheme
provides a legal guarantee for one hundred days of employment in every financial year to
adult members of any rural household willing to do public workrelated unskilled manual
work at the statutory minimum wage of Rs.60 per day. This act was introduced with an
aim of improving the purchasing power of the rural people, primarily semi or un-skilled
work to people living in rural India .MGNREGA is designed as a safety net to reduce

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 migration by rural poor households in the lean period through .It is an important step
towards realisation of the right to work. It is expected to enhance people‘s livelihood
security on a sustained basis, by developing economic and social infrastructure in rural
areas. MGNREGA is the flagship programme of the UPA 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. MGNREGA is the first
ever law internationally, that guarantees wage employment at an unprecedented scale.
Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has been a
major influence on this project. Aruna Roy was one of the chief campaigners for the
original scheme4

CRITICISM OF MNREGA

Despite its progress in improved implementation and governance, the MGNREGA still
has to deal with the corruption and other improprieties that have come to be associated
with any Govt. program in India. The CAG review said in as many as 70% of the villages
checked, there were no proper records available on number of households who demanded
jobs and the actual number of people who benefited from the job guarantee scheme. Some
major criticisms are as follows:

 MGNREGA is just a way of redistribution of Income:

There is some truth to the criticism that this act is just a way of redistributing the income
rather than making any lasting improvements in the rural infrastructure. Even its main
proponents are silent on the details of the infrastructure projects successfully completed
through the program and the benefits of such projects to the local communities. A
majority of the supporters only show its effectiveness in improving governance
procedures and making people aware of their rights. This is, however, more an offshoot
of the successful implementation of the Right to Information act in the MGNREGA
program than the MGNREGA itself. 5

 Long term dependency of the poor on the Government:

It would just create a long term dependency among the poor on the largesse of the Govt.
If the works are only of marginal importance, and involve mainly the equivalent of
4
1Jairaj Singh Rathore, a student of University School of Law & Legal Studies, GGS Indraprastha
University, Delhi110403. E-mail – jairaj.rathore12@gmail.com
5
1. Basu Kaushik – ‗The Oxford Companion to Economics in India‘ 2007

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

 digging and filling the ground, it would be such a huge waste of human potential and
resources.

 A Vote Bank called MGNREGS :

With the new changes in store, chances are the rural jobs scheme will become a vehicle
for gigantic expenditures in the name of the poor with very little money actually going to
the poor.

 Misuse of public Funds:

The apparent misuse of much larger amounts of public funds rarely gets much mention in
the press, especially when it pertains to expenditure that is likely to benefit the urban
elite, such as major new highways or new airports. But on the relatively small amount of
money spent on MGNREGA there have been shrill and adverse allegations in the media
from the very start.

 Lack of Administrative Capacity:

The lack of the administrative capacity to run this scheme in the desired decentralised
manner and the need to build this capacity quickly and effectively. The main deficiency
was the lack of adequate administrative and technical manpower at the Block and GP
levels, especially the Programme Officer, Technical Assistants, and Employment
Guarantee Assistants. The programme so far has not done what it was supposed to do to
the full extent, mainly because of the shortage of administrative and technical staff.
Therefore is the urgent need to ensure more administrative assistance for the programme
at all levels, which really means both resources and personnel devoted to the actual
implementation, monitoring and financial management of the programme. 6

 Absence of Effective Grievance Redressal System:

The major problem with MGNREGA is that there is absolute absence of an effective
grievance redressal system. The common labourers are not aware to whom to submit their
grievances and what will happen to that. Although the government of India recently
passed an ombudsman order, but there are also many loopholes.

ADVANTAGES OF MGNREGA

Aruna Roy and Nikhil Dey (activists with MazdoorKisan Shakti Sanghtan) – ‗NREGA: Breaking New
6

Ground‘ – The Hindu: Magazine – June 21, 200

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The Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA) introduced by the
UPA Government was actually not appreciated by the people in the beginning and many
argued that the scheme has not yielded positive results. When this scheme was facing
criticism from many sides including CAG, a detailed examination made by the Indian
Institute of Science along with other reputed institutes suggested that this government
scheme has in fact generated environmental advantages in many states. MGNREGA was
recently in the news for poor execution and wastage of money. The CAG report founded
that only 31% of 130 lakh works worth INR 1.26 lakh crore was actually completed.7
However, the IISc report made by GIZ and ministry of rural development, evaluates the
impact from an environmental viewpoint. The study is actually based on the ground
reality of the scheme in 5 states of Karnataka, Andhra Pradesh, Sikkim, Madhya Pradesh
and Rajasthan. The current situation of sites selected in every state are equated with pre-
MGNREGA situations (2006-07) for factors like ground water level, soil organic carbon,
soil erosion, and biomass. The parameters are equated with control states and regions
where the scheme is not implemented.8
The valuation found that the majority of the works in Karnataka, AP, MP and Rajasthan
were related with water conservation like water harvesting, irrigation, drought proofing
and renovation of customary water bodies. The assessment concludes that the ground
water level along with the drinking water availability has actually improved in these
regions due to MGNREGA projects. Moreover, other works like percolation tanks, check
dams and de-silting of water tanks have in fact contributed to an upsurge in the region
irrigated by bore wells. These MGNREGA benefits have also led to augmented crop
output in 30 villages evaluated by the assessment. Drought proofing tasks such as
horticulture development and afforestation has led to an upsurge in the overall forest
cover. Moreover, in 32 out of 40 study villages, trees such as Neem, Dalbergia and fruit
yielding trees such as mango, guava, lemon and jackfruit have been harvested on
common property resources and individual farm lands. The authorities of the report have
established that the woodlands have an ability to impound carbon in the future which can
assist in dealing with climate change and its impact. There are other benefits such as

7
Comptroller and Auditor General’s report –“MGNREGA Performance report 2012”
8
Indian Institute of Science ‘s report –“Benefits of NREGA to the environment”

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

guaranteed 100 days of compensation employment in a year to a rural family whose adult
members agree to do unskilled physical work.9

PRADHAN MANTRI GRAM SADAK YOJANA – 2000

INTRODUCTION

The Pradhan Mantri Gram Sadakb Yojana or PMGSY is a nationwide plan in India to
provide good all-weather road connectivity to unconnected villages. It is under the
authority of the Ministry of Rural Development and was begun on 25 December 2000. In
order to implement this, an Online Management & Monitoring System or OMMS GIS

TanushreeSood (a researcher with the office of commissioner to the Supreme Court) – ‗NREGA:
9

Challenges and Implementation

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system was developed to identify targets and monitor progress. It is developed by e-
governance department of C-DAC pune and is one of the biggest databases in India.10

GOALS

The goal was to provide roads to all villages with a population of 1000 persons and above
by 2003, with a population of 500 persons and above by 2007, in hill states, tribal and
desert area villages with a population of 500 persons and above by 2003, andin hill states,
11
tribal and desert area villages with a population of 250 persons and above by 2007.

OBJECTIVES

The primary objective of the PMGSY is to provide Connectivity, by way of an All-

weather Road (with necessary culverts and cross-drainage structures, which is operable
throughout the year), to the eligible unconnected Habitations in the rural areas, in such a
way that all Unconnected Habitations with a population of 1000 persons and above are
covered in three years (2000-2003) and all Unconnected Habitations with a population of
500 persons and above by the end of 2007. In respect of the Hill States (North-East,
Sikkim, Himachal Pradesh, Jammu & Kashmir, Uttaranchal) and the Desert Areas (as
identified in the Desert Development program) as well as the Tribal (Schedule V) areas,
the objective would be to connect Habitations with a population of 250 persons and
above. The PMGSY will permit the Upgradation (to prescribed standards) of the
existing roads in those Districts where all the eligible Habitations of the designated
population size have been provided all-weather road connectivity.

POLICY BASED IMPLEMENTATION

Restructuring and strengthening NHAI for expeditious implementation of the expanded

NHDP. To set reasonable target for the National Highway component of the total
network over the next 20 years and work out a phased program of expanding of NH to
achieve the objective. Employing higher maintenance standards to reduce the frequency
of reconstruction of capacity and to preserve road assets already created. The strategy to
focus on optimum utilization of the existing capacities rather than creating new
capacities. Ensuring balanced development of the entire network i.e. NHs, SHs, MDRs,

10
Jina, Afra (3 November 2018). "UP Agriculture - Need for Transparent Agricultural Scheme". Get news
on PM's schemes, central and state government schemes, central ministries and government departments.
Retrieved 8 November 2018
11
PMGSY Scheme Operations Manual Chapter 1". Ministry of Rural Development, Government of India.

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

ODRs and village roads. Adopting an effective policy mechanism for accelerated land
acquisition, utility shifting, and environmental protection to ensure time bound
implementation of road projects. Taking up on BOT basis all contracts for high density
corridors under NHDP III. Developing NH in inaccessible areas and areas of strategic
importance through GBS. Improving capacities of implementing agencies- NHAI, BRO
and State PWDs. Strengthening the institutional mechanism through setting up of the
National Road Safety and Traffic Management Board as an apex body in order to ensure
safety along with free flow of traffic.12

ADVANTAGES

1. Provision of better connectivity of farm to market community The construction of the

PMGSY roads has greatly benefited the farmers. Prior to the construction of the PMGSY
roads, farmers found it difficult to sell agricultural goods in the bigger markets that are
located at a distance from their villages.

2. PMGSY road connectivity has led to a better transport system during all seasons. This
impact has been greatly felt in the states of West Bengal, Himachal Pradesh, Mizoram,
Assam etc.

3. Value addition to the local produce in cottage industries and entrepreneurial units of
the village hence a boon to the rural populace. The PMGSY roads had a positive impact
on the agricultural

4. Infrastructure as habitations are now using motorized equipments such as tractors,

threshing machines for cultivation leading to a more efficient, time saving and profitable
process of cultivation

5. The PMGSY roads have made it easier to transport chemical fertilizers, seeds and
pesticides. Increased use of these items was observed in Uttar Pradesh, Himachal Pradesh
and West Bengal.

6. Besides, road connectivity has led to expansion of local industries, which in turn has
generated employment opportunities.

DISADVANTAGES

12
CRISP Group, National Informatics Centre (2004) "Rural Informatics in India – An Approach Paper"

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

Despite the one full decade of PMGSY, the percentage of unconnected habitations
decreased only slightly from 37.2% to 29.9%. While the total number of unconnected
habitations fell by about 8 percentage points, those with population less than 500, at
nearly 40%, hardly moved. This is understandable given the fact that scarce resources
means that political priorities would always favour connecting the larger habitations But
this also means that the remotest and most backward habitations, especially those in the
tribal areas, are likely to remain the least priority areas and amongst the last to be
connected. Apart from the fact that the smaller habitations are more likely to be the
farthest and therefore the most costly to connect. The quality of a major portion of these
roads is doubtful. This means that a considerable share of the roads constructed in the first
half of the decade are now not motor able. In other words, the additions conceal the fact
that a number of them are becoming un-motor able with each passing year. The concept
of connectivity is dynamic, since with time roads develop pot-holes and require wholesale
relaying. It is certain that the connecting roads for a significant share of the 70% or so
connected habitations are likely to have fallen into such a state of dis-repair as to be
reclassified as unconnected! Further, in the absence of any maintenance contract, there is
no workable mechanism available to ensure continuous operability of these roads13

The National Rural Health Mission (2005-12)

INTRODUCTION

The National Rural Health Mission (2005-12) seeks to provide effective healthcare to
rural population throughout the country with special focus on 18 states, which have weak
public health indicators and/or weak infrastructure. The Mission is an articulation of the
commitment of the Government to raise public spending on Health from 0.9% of GDP to
2-3% of GDP. It aims to undertake architectural correction of the health system to

13
https://rural.nic.in/sitesPMGSY17Nov2017

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 enable it to effectively handle increased allocations as promised under the National
Common Minimum program and promote policies that strengthen public health
management and service delivery in the country. The mission seeks to revitalize local
health traditions and mainstream AYUSH into the public health system. It aims at
effective integration of health concerns with determinants of health like sanitation &
hygiene, nutrition, and safe drinking water through a District Plan for Health. It seeks to
improve access of rural people, especially poor women and children, to equitable,
14
affordable, accountable and effective primary healthcare.

OBJECTIVES

 Reduction in Infant Mortality Rate (IMR) and Maternal Mortality Ratio (MMR)
Universal access to public health services such as Women’s health, child health, water,
sanitation & hygiene, immunization, and Nutrition.
 Prevention and control of communicable and non-communicable diseases, including
locally endemic diseases
 Access to integrated comprehensive primary healthcare
 Population stabilization, gender and demographic balance.
 Revitalize local health traditions and mainstream AYUSH 15

OUTLAY

The Mission is conceived as an umbrella program subsuming the existing programs of

health and family welfare, including the RCH- II, National Disease Control programs for
Malaria, TB, Kala Azar, Filaria, Blindness & Iodine Deficiency and Integrated Disease
Surveillance program. The Budget Head for NRHM shall be created in B.E. 2006-07 at
National and State levels. Initially, the vertical health and family welfare programs shall
retain their Sub-Budget Head under the NRHM. The Outlay of the NRHM for 2005-06 is
in the range of Rs.6700 crores. The Mission envisages an additionally of 30% over
existing Annual Budgetary Outlays, every year, to fulfil the mandate of the National
Common Minimum program to raise the Outlays for Public Health from 0.9% of GDP to
2-3% of GDP The States are expected to raise their contributions to Public Health

14
2 Mudur G. India launches national rural health mission. BMJ 330-930
15
John SO. Health care is paradox in India. BMJ 2005; 330: 1330.

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 Budget by minimum 10% p.a. to support the Mission activities. Funds shall be released
to States through SCOVA, largely in the form of Financial Envelopes, with weightage to
18 high focus States.

IMPLEMENTATION STRATEGIES

 Train and enhance capacity of Panchayat Raj Institutions (PRIs) to own, control and
manage public health services.
 Promote access to improved healthcare at household level through the female health
activist (ASHA).
 Health Plan for each village through Village Health Committee of the Panchayat and
strengthening sub-centre through an untied fund to enable local planning and action and
more Multi Purpose Workers (MPWs).
 Strengthening existing PHCs and CHCs, and provision of 30-50 bedded CHC per lakh
population for improved curative care to a normative standard (Indian Public Health
Standards defining personnel, equipment and management standards).Preparation and
Implementation of an inter-sectoral District Health Plan prepared by the District Health
16
Mission, including drinking water, sanitation & hygiene and nutrition.

ADVANTAGES

 Infant Mortality Rate has reduced to 30/1000 live births and the Maternal Mortality Ratio
reduced to 100/100,000 Total Fertility Rate reduced to 2.1
 Malaria mortality reduction rate –50% up to 2010, additional 10% by 2012. Kala Azar
mortality reduction rate: 100% by 2010 and sustaining elimination until 2012,
Filaria/Microfilaria reduction rate: 70% by 2010, 80% by 2012 and elimination by 2015
 Upgrading of Community Health Centres to Indian Public Health Standards and Increase
utilization of First Referral Units from less than 20% to 75% also engaging 250,000
female Accredited Social Health Activists (ASHAs) in 10 States.

16
Lodha R, Dash NR, Kapil A, Kabra SK. Health in urban slums in north India. Lancet 2000;15: 355: 204.

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 PM FASAL BIMA YOJNA

INTRODUCTION

It replaced all other existing insurance schemes except the Restructured Weather-Based
Crop Insurance Scheme (uses weather parameters as proxy for crop yield in

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 compensating the cultivators for deemed crop losses) A uniform premium of only 2%
to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of
annual commercial and horticultural crops, the premium to be paid by farmers will be
only 5%. There is no upper limit on Government subsidy so farmers will get claim
against full sum insured without any reduction. The difference between the premium
paid by farmers and the actuarial premium charged was paid by the Centre and state
government in the ratio of 50:50. It is compulsory for loanee farmers availing crop
loans for notified crops in notified areas and voluntary for non loanee farmers.
Yield Losses: due to non-preventable risks, such as Natural Fire and Lightning, Storm,
Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado. Risks due to Flood,
Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered. Post-
harvest losses are also covered. Mandatory use of technology: Smart phones, drones
etc., will be used to capture and upload data of crop cutting to reduce the delays in
claim payment to farmers. Remote sensing will be used to reduce the number of crop
cutting experiments.
The Scheme shall be implemented on an ‘Area Approach bases. Defined Area (i.e., unit
area of insurance) is Village or above. It can be a Geo-Fenced/Geo-mapped region
having homogenous Risk Profile for the notified crop. Presently, 5 public sector insurer
(Agriculture Insurance Company of India, United India Insurance Company etc.) and 13
private insurance companies are empanelled for implementation of the scheme.
Recently, states have been allowed to set up their own insurance companies for
implementing the scheme.

OBJECTIVES

 To provide insurance coverage and financial support to the farmers in the event of natural
calamities, pests & diseases.
 To stabilize the income of farmers to ensure their continuance in farming.
 To encourage farmers to adopt innovative and modern agricultural practices.
 To ensure flow of credit to the agriculture sector.

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 DISADVANTAGES

1. Increase in Centre's fiscal load : By about 500 percent.

2. Less political will for states to cooperate : 50 per cent of the premium subsidy is
borne by the states. States are also responsible for conducting the requisite number of
crop cutting experiments (CCE) at the village for submitting to the insurance
company. But the scheme is named as PM's scheme, so concerns that centre will get
credit.
3. Lack of contact between insurance companies and farmers : Right now, farmers
have no direct connection with insurance companies. The premiums are deducted by
banks against crop loans extended by them. As a recent ground-based assessment by the
Centre for Science and Environment has shown, “farmers receive no insurance policy
document or receipt”. 
4. Large number of farmers still outside PMFBY net : Covers only those farmers who
are under institutional loans.
5. Low Farmer Awareness : makes it easy for insurance companies not to provide claim
payments.
6. Irregular Funding in reality.
7. Ground-Reality - Delays in payment in Kharif 2017 : farmers have received only a
fraction of the estimated crop damage claims in most states for Kharif 2017.

The PMFBY is for the most a well-conceived scheme. But it's real test lies in effective
implementation on the ground.17
MISSION FOR INTEGRATED DEVELOPMENT OF HORTICULTURE

It is a Centrally Sponsored Scheme which was started from 2014-15 comprising of

following sub-schemes and areas of operation -
National Horticulture Mission: to promote holistic growth of horticulture sector through
an area based regionally differentiated strategies Horticulture Mission for North East &
Himalayan States: It is a technology mission which focuses on production of quality
planting material, organic farming, efficient water management etc. National Agro-
forestry & Bamboo Mission: It aims to Promote the growth of bamboo through an area
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based regionally differentiated strategy. Increase area under bamboo with improved
varieties to enhance yields.
Promote marketing of bamboo and bamboo-based handicrafts. Establish convergence
among stakeholders for bamboo.
Promote, develop and disseminate technologies and generate employment
opportunities.
Strategy-
Adopt end-to-end approach with backward and forward linkages. Promote R&D
technologies for cultivation and other activities with special focus on cold chain
infrastructure. Improve productivity through diversification of crops, extension of
technology and increasing acreage of orchards etc. Improve post-harvest management,
value addition processing and marketing infrastructure. Promote FPOs and their links
with Market aggregators and financial institutions. Meticulous reporting and monitoring;
data base generation, compilation and analysis Funding – Central government contributes
100% in North Easter States and 85% in all other states while remaining 15% is
contributed by state government.
In 2014, Project CHAMAN was launched which envisages use of satellite remote sensing
data along with Geographical Information System (GIS) for generating action plans for
horticultural development. It also provides data for area and production estimation of 7
horticultural crops (Potato, Onion, Chilli, Mango, Banana and Citrus) in 12 major states.
CHAMAN also carries out research activities on horticultural crop condition studies,
diseases assessment and precision farming. It will ensure development of digital
inventory of all horticulture zones in country. It will help decide cold storage hubs and
manage inflation through accurate data of food stocks.
OBJECTIVES

Promote holistic development of Horticulture sector (including bamboo &

coconut) through area based regionally differentiated strategies inconsonance with
comparative advantage of each state and their diverse agro-climatic features.
Encourage aggregation of farmers in into groups such as FPOs.
Enhance horticulture production, augment farmers’ income and strengthen nutritional
security. Improve productivity by ways of germ plasm, planting material and water
use efficiency through micro-irrigation. Support skill development and create
employment generation opportunities

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RASHTRIYA KRISHI VIKAS YOJANA – RAFTAAR (RKVY-
RAFTAAR)

RKVY, initiated in 2007 as an umbrella scheme for holistic development of agriculture

and allied sectors, has been recently revamped as RKVY-RAFTAAR – Remunerative
Approaches for Agriculture and Allied sector Rejuvenation for 2017-19 and 2019-20. It
provided states with considerable flexibility and autonomy for planning and executing
programs. The decentralized planning for agriculture and allied sectors is initiated by the
states through District Agriculture Plan and State Agriculture Plan based on agro-climatic
conditions, availability of appropriate technology and natural priorities.
It will incentivize states to increase allocations for agriculture and allied sectors and
help in creation of post-harvest infrastructure and promotion of private investment in
the farm sector across the country. Fund Allocation - 60:40 grants between Centre and
States in states and 90:10 for North Eastern States and Himalayan States through
following streams –18
o Infrastructure & Assets and Production Growth
o RKVY-RAFTAAR special sub-schemes of National Priorities
o Innovation and agri-entrepreneur development
• Sub-schemes include
o Bringing Green Revolution to Eastern India
o Crop Diversification Program – It is being implemented in the Original Green
Revolution States of Punjab, Haryana and Western Uttar Pradesh to diversify area
from water guzzling crop
o Reclamation of Problem Soil
o Foot & Mouth Disease – Control Program (FMD-CP)
o Saffron Mission
o Accelerated Fodder Development Programme (AFDP).

STUDY ON MINIMUM SUPPORT SCHEME

India is a nation where farming comprises one of the major sources of income. Growing
up one is always taught that the farmer is the main contributor of the economy. Then why
is it that this contributor is in desperate need of help from the government. If one watches
the daily news, one fails to understand that, if the promises made by every government
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before the elections depict a really true promise or is it a mere attempt to tap into a special
vote bank of the farmers. It is said that the current chief minister of the heavily drought
struck state Telangana, Mr. K Chandrashekhar Rao has requested various banks to waive
of loans of farmers but some people consider it a mere attempt to collect votes of farmers
in the wake of elections. To consider the other side of the coin, one must consider the
consequences of this waive off, the banks that lends loans to these farmers suffer losses to
the tune of hundreds of crore rupees and increases the rate of defaulters to their burden.
The banks already provide loans to farmers at a lower rate of interest which gives them a
very small margin to earn any on these loans.
The concept of loan waive off to farmers was started by the UPA government first in
2008. The scheme by the name of Agricultural debit wave off was a 600 billion
rupee package scheme. The main aim of this scheme was to waive loans of small and
medium scale farmers. This move was sharply criticized by the opposition parties as well
as economists and bankers. This makes us wonder what can be done to save both the
farmers and the banks for a long period of time from this trouble.
One such solution is Minimum Support Price (MSP). Minimum Support Price is a
concept which helps the government by intervening with the sharply falling prices
of any commodity in the market. The main objective of Minimum Support Price (MSP) is
to avoid losses of farmers by helping them regulate a minimum level of price at which a
commodity can be purchased by the agents who purchase from farmers or which the
government offers to buy. Minimum Support Price (MSP) system sets up a floor price to
a commodity which gives a minimum price below which it cannot be purchased by the
farmers. Let’s see some advantages and dis-advantages of the Minimum Support Price
(MSP) system if adopted by the government as an alternative for loan waiver schemes.
ADVANTAGES
Price volatility
The system of Minimum Support Price (MSP) system acts as a tool for the government to
control sharp fall and rise in the prices of any crops. This helps keep a floor price
which does not let the prices fall below a certain point. This can also be used as a tool to
control inflation by way of rising prices.19
Surety of minimum prices
The concept of Minimum Support Price (MSP) system acts as a surety to farmers so that
their crops get the fair amount for their produce and helps them sustain their
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NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018

losses and does not affect them drastically. This helps them cover the minimum amount
expenses in cultivating the crops and pay of the debts which they have.20
Control crops short in supply
Minimum Support Price (MSP) also helps government control the growth of crops which
are low in production. The government can offer more price support for these
crops so that more and more farmers are tempted to grow these crops with an assurance
that they will recover a certain amount from the government with guarantee.
Fair price shops
The government can use these crops to be sold at government fair price shops at a price
lower than market rate. This will also help the government in making these crops
available to the below poverty line people at a lower price. This will also help the
government recover some amount and reduce the losses of the government.
Load on banks
The financial system plays a vital role in the smooth functioning of the Indian economy.
It is very important that these institutions do not fail as they are majorly run
on funds procured by public at large. In case of waive off of loans these create a heavy
burden on the banks financial institutions. These waive offs often lead to foreclosure of
banks and specially the small agricultural institutions.
Disadvantages
Effect on small and medium scale farmers
According to studies, most of the drought affected farmers are small and medium scale
farmers. These farmers do not procure loans from financial institutions. They prefer loans
from private money lenders which are not covered under these schemes. In fact farmers
who produce on large scale are often seen getting rid of their debt with the help of these
schemes.
Killing of competition
Any interference by the government kills the competition. This affects the agents who
procure the crops at lower prices and sell them at higher prices and earn pro􀃗ts. This
mainly disturbs the working of people who sell these outputs from farmers into the open
market.
Conclusion
In my view, Minimum Support Price (MSP) has more advantages than disadvantages and
if managed properly it can be used by the government as a powerful tool in stabilizing the
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economy. This will mainly help reduce the burden on financial institutions as banks are
mainly run of funds procured by the public at large. The produce purchased by the
government can also be sold at fair price shops to people below poverty line. This will
help reduce though not completely but partially the burden on the government in respect
of recovering the prices promised to the farmers.

CONCLUSION AND SUGGESTIONS

The Rural Development in India is one of the most important factors for growth of the
Indian economy. The Ministry of Rural Development in India is an apex body to develop
the rural sector implementing several developmental programmes and schemes discussed
in the project. The various kinds of schemes launched by the government have their own
merits and demerits. These schemes have made significance amount of change in the life
style of the rural people and in the infrastructure of the villages.

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Mahatma Gandhi National Rural Employment Guarantee Act which aimed at
guaranteeing the employment of rural people assured them ‘Right to work’ as their legal
right was implemented by the government of India. The National Rural Health Mission
which aimed at providing accessible, affordable and quality health care to the rural
population, especially the vulnerable groups. These schemes were launched with any
intention to develop the rural India.

Looking at the present condition of the development in rural sector a new vision of rural
development must be adopted which extends beyond agriculture, recognizing the income
potential and economic importance of diversified interests such as on-farm non-
agricultural activities, ecotourism, cottage industries and off-farm activities.

There can be a few more steps adopted by the government to make the mission of rural
development as a success. The first requirement is a strong, forward looking policy
favoring agricultural extension and communication for agricultural and non-agricultural
rural development with a focus on food security. The second proposes the establishment
of a platform to promote dialogue and collaboration among all relevant sectors to favor
extension/ communication activities for food security. And the third proposes public
sector institutional change to enhance the new and expanded policy and strategy.
Therefore to effectively improve the rural society government should keep a proper check
on the guidelines and implementation of the schemes.

REVIEW OF LITERATURE

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NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018
 BIBLIOGRAPHY

NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL, 2018