Rural Finance Case Study

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UNIVERSITY OF PETROLEUM AND

ENERGY STUDIES

SCHOOL OF BUSINESS
Session:2021-2023(Jan –May’22)
MBA(General Management)[Semester-2]

CASE STUDY
ON
RURAL DEVELOPMENT PROGRAMMES IN INDIA
(PRADHAN MANTRI GRAM SADAK YOJANA)

Submitted To:

Prof. Dr Swati Gupta


Prof., SOB,UPES

Submitted By:

Kajal Yadav
SAP ID 500097091

Tanisha Chauhan
SAP ID 500089412
CASE STUDIES OF DIFFERENT LOCALITIES

1. District: Kangra
Block: Panchrukhi
Village: Tarhel
Road Name: Padhiarkhar Jandpur to Trehal Road
Tarhel - Mr. Sheruram , caste (SC) has been residing during this village since birth. at the present
his age is 50 and is staying together with his wife and three children. He was having his small
flourmill and his daily income was around Rs. 80-100. After the PMGSY road was constructed,
he's having lots of labor thanks to the access and demand from other nearby villages. other than
this, he has also purchased a thresher. Now due to the road there's easy movement, such a large
amount of people from the area take the thresher on rental basis. His income has increased from
Rs. 80-100 to Rs. 200-250 per day. His life style has also changed and economically he's able
enjoy modern life.
2. District: Una
Block: Dundla
Village: Chauli
Road Name: Bhalon to Chauli Sohari Road
Chauli - Rajesh Chauhan , a dweller of village Chauli, resending since last 40 years, revealed his
past morbid living - style due to the kuccha road. He narrated his ugly past experiences before
the consultant that his home is adjacent to the road and hence before the development of road,
during the monsoon season and within the dry - season, his house was subject to either water
clogging for twenty-four hours or heavy eroding form the kuccha road. the case further got
aggravated with the conversion of water into marsh and mud particles taking shelter into his
house and on the dried up clothes.
He further stated that the pre - construction hellish experience hardly exists after the looks of
concrete road and expressed his heartfelt gratitude towards PMGSY project. The positive impact
in his case is visible within the sort of cleanliness and awareness for health and hygiene aspects.
Now his children are looking neat and clean, alongside with the entire clean picture of his house.
Since he's mentally relieved of this problem, he's contemplating to start out new shops in line of
fertilizer and cement, because of the improved economy of the village in totality. Reading his
mindset, this could be viewed as a substitutional impact, which he's willing to encash. An
analytical contrast between the pre and post scenario as expressed by the beneficiary.
3. District: Una
Block: Dundla
Village: Chauli
Road Name: Bhalon to Chauli Sohari Road

Mr. Mohan Singh, Opening of new furniture shop after construction of PMGSY road in village
Chauli - Mohan Singh, a resident of village Chauli could be a carpenter by profession and is
running his furniture house at Sohari since the last 10 years. His house is located at Bhindla 8
Km. removed from 'Sohari'. In an interactive session with the consultant, he observed that before
the development, he was unable to devote his time along with his family as his shops is at a far
flung place and there was hardly any mode of transport thereto place. Further thanks to the
pathetic condition of the road only a few customers wont to visit his shop. On a mean he earned
Rs 200/ day. The post construction phase has brought a revolutionary change in his life as his
income has gone up to the tune of Rs 300-400/ -day. A business started with an initial investment
of Rs 25,000 has reached to tier of Rs 1,50,000.
Though the only focus of his economic / rank remains his workshop, but he's experiencing
benefits at various epicentric points, major ones being:

• Improvement within the family education level.


• Improvement in health and hygienic aspect by adopting various preventive and curative
measures.
• Easy availability of material.
• Future planning for a brand new venture within the already existing business.
4. District: Una
Block: Haroli
Village: Singan
Road Name: Baliwal to Bathu Singan Road

Mr. Pramod Singh in his poultry farm after construction PMGSY Road

Singan - Pramod Singh a native of village Singan may be a son of poor farmer. His father
isn't any more and he's taking care his sister and mother. When the sector investigation
team went there, he himself came forward to specific his gratitude to the PMGSY project.
He started narrating his past life, that with an small investment of Rs 50,000/- he opened
a poultry farm alongside the road. As reported by him there's a gulf of variation between
his pre and post socio-economic status, now. before the development of road, he was
facing plenty of problem in purchasing the hens because of hindrance on mobility ground
and lack of transportation modes. He could manage keeping only 400 numbers of hens.
The commissioning of PMGSY project and also the appearance of concrete- road on the
village scene has brightened his business because the procurement of material has
become easier on the sleek surface

His business is making headway day by day and his annual earning has accelerated from
Rs 5000 to Rs 30, 000. He has also purchased a replacement bike for himself because of
the increased income because the business flourished resultantly the social-status has also
gone up.
SAP-LAP ANALYSIS
S- Situation
A- Actor
P- Process
L- Learning
A- Action
P- Performance

SITUATION:

In the above case study,


• Mohan Singh a resident of village chauli he is a carpenter by profession it is
stated that the condition of the road was pathetic and very few customers used to
visit his shop as his home was located at bhindla 8 km far away from his village
sohari.
• Rajesh Chauhan , a dweller of village Chauli, narrated his ugly past experiences
before the consultant that, during the monsoon season and within the dry - season,
his house was subject to either water clogging for twenty-four hours or heavy
eroding form the kuccha road.
• Pramod Singh a native of village Singan, He started narrating his past life, that
with an small investment of Rs 50,000/- he opened a poultry farm alongside the
road. Before the development of road, he was facing plenty of problem in
purchasing the hens because of hindrance on mobility ground and lack of
transportation modes.
ACTOR:
i. Mr. Sheruram , his age is 50, lives in Tarhel village of Kangra district.

ii. Rajesh Chauhan, lives in Chauli village of Una district.

iii. Mohan Singh , lives in Chauli village of Una district.

iv. Pramod Singh , lives in S village of Una district.

PROCESS:

Rural road connectivity is not only a critical component of India's rural development because
it facilitates access to economic and social services, resulting in higher agricultural earnings
and more productive employment opportunities, but it is also a key component in ensuring
long-term poverty reduction. The PMGSY's main purpose is to build an all-weather road to
connect qualified unconnected habitations in agricultural areas with populations of 500
persons or more in plain areas.
LEARNING:

• Improvement in education family level,


• Improvement in health and hygienic aspect by adopting various preventive and curative
measures.
• Easy Availability of Raw material.
• Post construction has benefits them with a new business venture.
• Life style has also changed and economically able enjoy modern life.
• Improved economy of the village in totality

ACTIONS:

For rural people, post-construction assistance helped them expand their businesses from a low to
a high level, as the government scheme PMGSY was introduced, which assisted them with
decentralised, evidence-based planning, standards and specifications as per the Indian Road
Congress, and a dedicated international mechanism for rural roads at the state and district level.
PMGSY's mandate has since been expanded to include new initiatives. PMGSY- II was
established in 2013 with the goal of upgrading 50,000 kilometres of the current rural road
network in order to improve its overall efficiency as a supplier of people, products, and services
transportation.

PERFORMANCE:

In above all the case studies there are similarities,As road was constructed again which benefited
to the rural people, their lifestyle got change, got a better education their earnings got increased
due to this they started their own business with an initial investment of some amount and able to
set their business for further time period. In other words we can say that PMGSY helped the rural
people to expand their business , helped them to earn more income as compared to income they
earned earlier, this will lead to boost their lifestyle as well as the literacy level of the rural
people(of their children).

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