UNIT-1

Concept of Rural
A rural area is an open swath of land that has few homes or other buildings, and not
very many people. A rural areas population density is very low. Many people live in a city,
or urban area. In a rural area, there are fewer people, and their homes and businesses are
located far away from one another.
Concept of Rural Development in India
Rural development usually refers to the method of enhancing the quality of life and financial
well-being of individuals, specifically living in populated and remote areas.
Traditionally, rural development was centred on the misuse of land-intensive natural resources
such as forestry and agriculture. However today, the increasing urbanisation and the change in
global production networks have transformed the nature of rural areas.
Rural development still remains the core of the overall development of the country. More than
two-third of the country’s people are dependent on agriculture for their livelihood, and one-
third of rural India is still below the poverty line. Therefore, it is important for the government
to be productive and provide enough facilities to upgrade their standard of living.
Rural development is a term that concentrates on the actions taken for the development of rural
areas to improve the economy. However, few areas that demand more focused attention and
new initiatives are:
 Education
 Public health and Sanitation
 Women empowerment
 Infrastructure development (electricity, irrigation, etc.)
 Facilities for agriculture extension and research
 Availability of credit
 Employment opportunities
Importance of Rural Development
Rural development is important not only for the majority of the population residing in rural
areas, but also for the overall economic expansion of the nation.
Rural development is considered to be of noticeable importance in the country today than in the
olden days in the process of the evolution of the nation. It is a strategy that tries to obtain an
improved and productivity, higher socio-economic equality and ambition, and stability in social
and economic development.
The primary task is to decrease the famine that exists in roughly about 70 percent of the rural
population, and to make sufficient and healthy food available.
The secondary task is to ensure the availability of clothing and footwear, a clean environment
and house, medical attention, recreational provision, education, transport, and communication.

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 Objectives of Rural Development
The objectives composed by the government in the sixth five-year plan for rural development
are:
 To improve productivity and wages of rural people
 To guarantee increased and quick employment possibilities
 To demolish unemployment and bring a notable decline in underemployment
 To guarantee an increase in the standard of living of the underprivileged population
 To provide the basic needs: elementary education, healthcare, cleans drinking water, rural
roads, etc.
Basic Elements of Rural Development
There are at least three basic elements which are considered to constitute the ‘true’ meaning of
rural development. They are as follows: (1977).
1. Basic Necessities of Life:
People have certain basic needs, without which it would be impossible (or very difficult) for
them to survive. The basic necessitates include food, clothes, shelter, basic literacy, primary
health care and security of life and property. When any one or all of them are absent or in
critically short supply, we may state that a condition of ‘absolute underdevelopment’ exists.
Provision of the basic necessities of life to everybody is the primary responsibility of all
economies, whether they are capitalist, socialist, or mixed. In this sense, we may claim that
economic growth is a necessary condition for improvement of the ‘quality of life’ or rural
people, which is rural development.
2. Self Respect:
Every person and every nation seeks some sort of self-respect, dignity or honour. Absence or
denial of self-respect indicates lack of development.
3. Freedom:
In this context, freedom refers to political or ideological freedom, economic freedom and
freedom from social servitude. As long as society is bound by the servitude of men to nature,
ignorance, other men, institutions and dogmatic beliefs, it can not claim to have achieved the
goal of ‘development’. Servitude in any from reflects a state of underdevelopment.
Importance of rural development for creation of sustainable livelihoods
Between one-quarter and one-fifth of the world’s population derive their livelihood from small-
scale agriculture. Most of these people are members of what we call peasant farm households
or are dependent upon the activities of peasant farm households. The large number of rural
people and their involvement in peasant agriculture and other activities makes the
understanding of rural people, peasants, and their livelihoods important for many reasons.
 In global terms, poverty is predominantly a rural phenomenon (as noted earlier although there
are large and increasing numbers of urban poor people, a greater proportion of poor people in
the world live in rural areas and poverty tends to be more severe in rural areas).
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 Many of the rural poor depend directly or indirectly upon peasant livelihoods.
 Peasant agriculture is significant in both national economies and the world economy in terms
of
– Its contribution to production of livestock and of food, beverage and industrial crops
– its effect on the environment and scarce natural resources (peasant agriculture is an important
form of land use often found in marginal areas where land is vulnerable to degradation and
subject to competing uses and other natural resources, such as water, may be scarce)
 Poor rural people’s livelihoods are significant in national economies and the world economy in
terms of
– The potential market for increased demand for consumer goods and services if rural people
become wealthier
– their potential contribution to, or drain on, resources either as a dynamic and growing part of
national economies generating employment, tax revenues, and so on, or as a stagnant sector
demanding welfare support for a poor and large part of the population
Understanding these livelihoods is therefore important for our understanding of, and action to
address, rural poverty, the resulting human suffering, and the pressures it then places on urban
areas (through rural–urban migration, national, regional, and global economies, and the
environment).
These points are illustrated by the impact of recent economic growth in China on the world
economy. Until the mid-1970s China’s economy was dominated by largely stagnant peasant
agriculture, but then technical, institutional, and economic policy change allowed rapid growth
in peasant agriculture in large areas of China, and these in turn led to a transformation of the
economy with global economic, social and environmental implications. National and rural
poverty rates have fallen dramatically. However, peasant incomes and growth (particularly in
more remote areas and in areas with lower agricultural potential) now lag behind incomes and
growth in the rest of the Chinese economy. Conversely, in many parts of sub-Saharan Africa,
per capita agricultural growth was low and even negative for much of the second half of the
20th century with increases in both the incidence and severity of rural and national poverty,
very poor national economic performance, and in many areas increasing pressure on limited
natural resources.
For those of us who are not peasants or poor rural people there are, then, compelling arguments
of compassion and self-interest urging us to work with rural people to improve their quality of
life and to extend their control over their environments, resources, and destinies. However, if
we are to assist them (as policy-makers, researchers or community development workers, for
example), we must understand as far as possible both their environments and their behavior
within those environments. This is necessary for communication and partnership. It is also
needed for analysis of what they are doing and why, for identification of strategies for
improvement, and for prediction of their responses to change.

Agricultural and rural development

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This guide is primarily concerned with rural extension and with the livelihoods of farmers and
their families. The concept of rural development must therefore be considered with particular
reference to agriculture, since agriculture is the basis of the livelihood of most rural families. In
the past two decades there has been increasing emphasis on rural development programmes and
projects, and recognition that the development of rural areas is just as important as the building
up of urban, industrial complexes. Development must have two legs: urban industrialization
and rural improvement.
There are very strong reasons why resources should now be put into rural development. More
than half the people of the world and the vast majority of the people in developing countries
(Asia, Africa and Latin America) live in rural areas and gain part or all of their livelihoods from
some form of agriculture. Most of these people are also still very poor and dependent on
agricultural practices that have benefited little from modern technology. They live in isolated
and often inhospitable places, with little access to the resources they need to improve their
agriculture. Many lead their lives barely at subsistence level. Solely in terms of numbers of
people, there is a very strong case for giving high priority to rural development.
It can also be argued that agriculture is a vital part of the economy of any country and that its
development is critical to the development of the country's economy as a whole. This
relationship can perhaps be best understood by studying the following diagram (see p. 4).
Agriculture's important role is one of production, both of food for the rural and the urban
population and of cash crops for the export market, to earn foreign currency. In this process
demand is stimulated for other products and services, and employment opportunities emerge to
absorb the society's work-force. As the cycle develops, the increasing agricultural production
causes an increasing demand for inputs, which ensure the resources required to maintain the
agricultural production. Land is a basic resource for most countries and the exploitation of that
resource in the interest of its citizens is one of a country's main responsibilities.
Agricultural production
This concern to improve a country's agricultural base, and thus the livelihood of the majority of
its inhabitants, is usually expressed in terms of programmes and projects of rural development.
However, while agriculture is rightly the most important objective in the development of rural
areas, rural development should also embrace the non-agricultural aspects of rural life. There
are many definitions and statements on rural development that attempt to describe succinctly
what it is trying to achieve. Perhaps the one used in conjunction with the UN-sponsored Second
Development Decade in the 1970s best illustrates the broad nature of rural development:
- The Second Development Decade equates rural development with the far-reaching
transformation of the social and economic structures, institutions, relationships and processes in
any rural area. It conceives the goals of rural development not simply as agricultural and
economic growth in the narrow sense but as balanced social and economic development.
Rural development is a process integrated with economic and social objectives, which must
seek to transform rural society and provide a better and more secure livelihood for rural people.
Rural development, therefore, is a process of analysis, problem identification and the proposal

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of relevant solutions. This process is usually encompassed within a programme or a project
which seeks to tackle the problem identified.
However, as can be seen from the above statement, the problems that rural development
programmes attempt to solve are not only agricultural; such programmes must also tackle the
social or institutional problems found in rural areas. Indeed, if the kinds of problems which
rural development programmes confront are considered in very broad terms, they may perhaps
be divided into two.
Physical: These are problems which relate to the physical environment of a particular rural
area, e.g., lack of water, poor infrastructure, lack of health facilities, or soil erosion. Rural
development programmes can study the nature and extent of the problem and propose a course
of action.
Non-physical: Not all the problems which farmers face are physical in nature. Some problems
are more related to the social and political conditions of the region in which the farmers live,
e.g., limited access to land, no contact with government services, or dependence upon a bigger
farmer. These problems are also very real even though they exist below the surface.
Farmers and their families face a whole range of problems
In thinking of rural development, therefore, a whole range of problems which the farmer
confronts daily must be considered. Some of these problems will be physical or tangible, and
relatively easy to identify. They can quickly be spotted by observation or by means of a survey
and once the extent of the problem is understood a relevant course of action can be proposed.
For example, fertilizer can be recommended to improve the production level of a certain crop.
However, not all of the problems that farmers face are physical nor can they always easily be
seen. Many of these problems derive from the farmer's place in the social and political structure
in the rural area. Farmers and their families are involved in a complex web of relationships with
other farmers in the area and often these relationships bring about problems. Dependence upon
a money-lender, for example, is a problem facing many farmers in developing countries.
Farmers may also have little access to the resources necessary for development, nor any way of
getting such resources. Finally, they may have had very little contact with rural development
programmes or other government services, and may not know how to take advantage of such
activities.
It should be emphasized that the problems a farmer faces are complex and not all of them are
physical or tangible. With this in mind, the kinds of strategies which rural development
programmes can adopt can be considered. The first point to make is that there is no one strategy
which is relevant to the problems of all rural areas. Different areas have different kinds of
problems and the strategy must be adapted accordingly. There are three broad rural
development strategies to be considered.
Technological. Here, the emphasis is upon technological transformation of different aspects of
the rural society, e.g., improved cropping practice or better water supply, by the provision of
the inputs and skills required to bring about the transformation.
Reformist. In this strategy, importance is also attached to technological change, but with a
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corresponding effort to provide the means by which the farmer can play a bigger part in rural
development, for example, through organizational development, or participation in rural
development programmes.
Structural. This strategy seeks to transform the economic, social and political relationships
which exist in rural areas in such a way that those who were previously disadvantaged by such
relationships find their position improved. Often this strategy is carried out by means of an
agrarian reform programme.
The above strategies are not presented as concrete models to be followed without question. Nor
is it suggested that rural development programmes must adopt any one strategy. They are
presented to show the range and mixture of strategies which a rural development programmes
can follow. A farmer's problems will probably demand different action at different levels if
they are to be tackled in a comprehensive manner.
Principles of rural development programmes
Rural development strategies usually take the form of programmes which implement projects in
a specific rural area. Such programmes form the basis of most government and non-government
efforts to assist rural areas, and they include both agricultural and non-agricultural projects,
e.g., maternal and child health programmes. Specialized staff supply the expertise required, and
ministerial or other institutional budgets provide the necessary financial resources. External aid
is also usually channelled into such programmes in the rural areas.
While this guide does not intend to examine the areas of programme planning or
implementation, it does suggest a number of very broad principles which should be followed by
rural development programmes. The content of these programmes is a matter for the specialists
in the particular field, i.e., agriculture, health or water supply. It is important, however, for all
such programmes to establish beforehand a set of principles to guide their activities. The
following principles are suggested to implement rural development programmes.
Access. Try to ensure that the programme and its benefits can reach those in need, and beware
of the consequences if some farmers have access to the programme while others do not.
Independence. Devise a programme which helps and supports the farmer but which does not
make him or his livelihood dependent upon the programme.
Sustainability. Ensure that the programme's plans and solutions are relevant to the local
economic, social and administrative situation. Short-term solutions may yield quick results, but
long-term programmes that are suitable to the local environment have greater success.
Going forward. Technological aspects of rural development programmes should help the
farmer to take the next step in his development and not demand that he take a huge
technological leap. It is better to secure a modest advance which can be sustained than to
suggest a substantial advance which is beyond the ability of most.
Participation. Always try to consult the local people, seek out their ideas and involve them as
much as possible in the programme.
Effectiveness. A programme should be based on the effective use of local resources and not
necessarily on their most efficient use. While efficiency is important, its requirements are often
unrealistic. For example, the maximum use of fertilizer is beyond the means of most farmers.

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But an effective use of resources, which is within the capabilities of most farmers, will have a
better chance of a wider impact.
The importance of extension
Within the framework presented in this chapter, the concept and practice of the central issue of
this guide must now be examined: extension work in rural communities. Extension is
essentially the means by which new knowledge and ideas are introduced into rural areas in
order to bring about change and improve the lives of farmers and their families. Extension,
therefore, is of critical importance. Without it farmers would lack access to the support and
services required to improve their agriculture and other productive activities. The critical
importance of extension can be understood better if its three main elements are considered:
KNOWLEDGE « COMMUNICATION « FARM FAMILY
Extension is not concerned directly with generating knowledge; that is done in specialized
institutions such as agricultural research centers, agricultural colleges or engineering
departments. Extension takes this knowledge and makes it available to the farm- family. Rural
extension, therefore, is the process whereby knowledge is communicated, in a variety of ways,
to the farm family. This process is usually guided and supported by an extension agent who
works at the programme and project level, and who is in direct contact with farmers and their
families.
To do this extension work, agents have to be trained in the different aspects of the extension
process. One aspect of this training is giving the agent the technical or scientific knowledge
required for the job. This is usually done during the agent's professional training; however, it is
only one element in the process. The other two elements of the process are equally important. It
is not enough for an extension agent to have technical knowledge; he must also know how to
communicate this knowledge and how to use it to the benefit of the farm family. Training in
extension, therefore, is an equally important aspect of the training of any agent who wishes to
work with farmers.
An Overview of Policies and Programs for Rural Development:
Best Government Schemes and Programmes in Agriculture for Farmers
PM-Kisan Scheme
Pradhan Mantri Kisan Samman Nidhi Yojana is an initiative of the Government wherein 120
million small and marginal farmers of India with less than two hectares of landholding will get
up to Rs. 6,000 per year as minimum income support. PM-Kisan scheme has become
operational since 1st December 2018. Under this scheme, cultivators will get Rs. 6000 in three
installments.
Pradhan Mantri Kisan Maandhan yojana
Prime Minister Narendra Modi launched a pension scheme for the small & marginal farmers of
India last September. Under PM Kisan Maandhan scheme about 5 crore marginalised farmers
will get a minimum pension of Rs 3000 / month on attaining the age of 60. Those who fall in
the age group of 18 - 40 years will be eligible to apply for the scheme. Under this scheme, the
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farmers will be required to make a monthly contribution of Rs 55 to 200, depending on their
age of entry, in the Pension Fund till they reach the retirement date, 60 years. The Government
will make an equal contribution of the same amount in the pension fund for the cultivators.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Pradhan Mantri Fasal Bima Yojana is an actuarial premium based scheme where farmer has to
pay maximum premium of 2 percent for Kharif, 1.5 percent for Rabi food & oilseed crops and
5 percent for annual commercial or horticultural crops and the remaining part of the actuarial or
bidded premium is equally shared by the Central & State Government. An important purpose
of the scheme is to facilitate quick claims settlement. The claims should be settled within 2
months of harvest subject to timely provision of both yield data & share of premium subsidy by
State Government.
Kisan Credit Card (KCC) scheme
Kisan Credit Card scheme is yet another important Government scheme that provides farmers
with timely access to credit. Kisan Credit Card scheme was introduced in 1998 to provide
short-term formal credit to the farmers. KCC scheme was launched to ensure that the credit
requirements for cultivators in the agriculture, fisheries & animal husbandry sector were being
met. Under this scheme, farmers are given short-term loans to purchase equipment & for their
other expenses as well. There are many banks that offer KCC including SBI, HDFC, ICICI,
Axis.
Pashu Kisan Credit Card Scheme
For the growth and development of animal husbandry sector in India, the Government has
launched ‘Pashu Kisan Credit Card’ for livestock farmers. Haryana is the first state in the
country to provide Pashu Kisan Credit Card to the farmers. Under this scheme, farmers are
given loan to buy cow, buffalo, goat etc. To apply for Pashu Kisan Credit Card you will have to
go to your nearest bank.
Paramparagat Krishi Vikas Yojana (PKVY)
Paramparagat Krishi Vikas Yojana is implemented with the aim to promote organic cultivation
in India. To improve soil health as well as organic matter content and to boost the net income of
the farmer so as to realize premium prices. Under Paramparagat Krishi Vikas Yojana, an area
of 5 lakh acre is targeted to be covered though 10,000 clusters of 50 acre each, from 2015-16 to
2017-18.
Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
Pradhan Mantri Krishi Sinchai Yojana was launched on 1 July 2015 with the motto ‘Har Khet
Ko Paani’ to provide end-to end solutions in irrigation supply chain, viz. water sources,
distribution network & farm level applications. PMKSY focuses on creating sources for
assured irrigation, also creating protective irrigation by harnessing rain water at micro level
through ‘Jal Sanchay’ & ‘Jal Sinchan’.
Social Security Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY)
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Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National Mission
on Financial Inclusion in his Independence Day address on 15th August 2014, to ensure
comprehensive financial inclusion of all the households in the country by providing universal
access to banking facilities with at least one basic bank account to every household, financial
literacy, access to credit, insurance and pension facility. Under this, a person not having a
savings account can open an account without the requirement of any minimum balance and, in
case they self-certify that they do not have any of the officially valid documents required for
opening a savings account, they may open a small account. Further, to expand the reach of
banking services, all of over 6 lakh villages in the country were mapped into 1.59 lakh Sub
Service Areas (SSAs), with each SSA typically comprising of 1,000 to 1,500 households, and
in the 1.26 lakh SSAs that did not have a bank branch, Bank Mitras were deployed for
branchless banking.
Thus, PMJDY offers unbanked persons easy access to banking services and awareness about
financial products through financial literacy programmes. In addition, they receive a RuPay
debit card, with inbuilt accident insurance cover of Rs. 2 lakh, and access to overdraft facility
upon satisfactory operation of account or credit history of six months. Further, through Prime
Minister’s Social Security Schemes, launched by the Hon’ble Prime Minister on 9th May 2015,
all eligible account holders can access through their bank accounts personal accident insurance
cover under Pradhan Mantri Suraksha Bima Yojana, life insurance cover under Pradhan Mantri
Jeevan Jyoti Bima Yojana, and guaranteed minimum pension to subscribers under Atal Pension
Yojana.
PMJDY was conceived as a bold, innovative and ambitious mission. Census 2011 estimated
that out of 24.67 crore households in the country, 14.48 crore (58.7%) had access to banking
services. In the first phase of the scheme, these households were targeted for inclusion through
opening of a bank account within a year of launch of the scheme. The actual achievement, by
26th January 2015, was 12.55 crore. As on 27.3.2019, the number of accounts has grown to
35.27 crore. Further, in 2011, only 0.33 lakh SSAs had banking facility and through provision
of Bank Mitras in 1.26 lakh branchless SSAs, banking services were extended throughout rural
India. The inclusive aspect of this is evident from the fact that 20.90 crore (60%) of PMJDY
accounts are in rural areas and 18.74 crore (over 53%) PMJDY account holders are women.
The deposit base of PMJDY accounts has expanded over time. As on 27.3.2019, the deposit
balance in PMJDY accounts was Rs. 96,107 crore. The average deposit per account has more
than doubled from Rs. 1,064 in March 2015 to Rs. 2,725 in March 2019.
The Bank Mitra network has also gained in strength and usage. The average number of
transactions per Bank Mitra, on the Aadhaar Enabled Payment System operated by Bank
Mitras, has risen by over eightyfold, from 52 transactions in 2014-15 to 4,291 transactions in
2016-17.

From Jan Dhan to Jan Suraksha

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For creating a universal social security system for all Indians, especially the poor and the
under-privileged the Hon’ble Prime Minister launched three Social Security Schemes in the
Insurance and Pension sectors on 9th of May, 2015.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The PMJJBY is available to people in the age group of 18 to 50 years having a bank account
who give their consent to join / enable auto-debit. Aadhar is the primary KYC for the bank
account. The life cover of Rs. 2 lakh is for the one year period stretching from 1st June to 31st
May and is renewable. Risk coverage under this scheme is for Rs. 2 lakh in case of death of the
insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in
one installment from the subscriber’s bank account as per the option given by him on or before
31st May of each annual coverage period under the scheme. The scheme is being offered by the
Life Insurance Corporation and all other life insurers who are willing to offer the product on
similar terms with necessary approvals and tie up with banks for this purpose. As on 31st
March, 2019, cumulative gross enrollment reported by banks subject to verification of
eligibility, etc. is over 5.91 crore under PMJJBY. A total of 145763 claims were registered
under PMJJBY of which 135212 have been disbursed.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The Scheme is available to people in the age group 18 to 70 years with a bank account who
give their consent to join / enable auto-debit on or before 31st May for the coverage period 1st
June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank
account. The risk coverage under the scheme is Rs. 2 lakh for accidental death and full
disability and Rs. 1 lakh for partial disability. The premium of Rs.12 per annum is to be
deducted from the account holder’s bank account through ‘auto-debit’ facility in one
instalment. The scheme is being offered by Public Sector General Insurance Companies or any
other General Insurance Company who are willing to offer the product on similar terms with
necessary approvals and tie up with banks for this purpose. As on 31st March, 2019,
cumulative gross enrolment reported by Banks subject to verification of eligibility, etc. is over
15.47 crore under PMSBY. A total of 40,749 Claims were registered under PMSBY of which
32,176 have been disbursed.
Atal Pension Yojana (APY)
APY was launched on 9th May, 2015 by the Prime Minister. APY is open to all saving
bank/post office saving bank account holders in the age group of 18 to 40 years and the
contributions differ, based on pension amount chosen. Subscribers would receive the
guaranteed minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or
Rs. 5,000 at the age of 60 years. Under APY, the monthly pension would be available to the
subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated
at age 60 of the subscriber, would be returned to the nominee of the subscriber. The minimum
pension would be guaranteed by the Government, i.e., if the accumulated corpus based on
contributions earns a lower than estimated return on investment and is inadequate to provide
the minimum guaranteed pension, the Central Government would fund such inadequacy.

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Alternatively, if the returns on investment are higher, the subscribers would get enhanced
pensionary benefits.
In the event of pre-mature death of the subscriber, Government has decided to give an option to
the spouse of the subscriber to continue contributing to APY account of the subscriber, for the
remaining vesting period, till the original subscriber would have attained the age of 60 years.
The spouse of the subscriber shall be entitled to receive the same pension amount as that of the
subscriber until the death of the spouse. After the death of both the subscriber and the spouse,
the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till
age 60 of the subscriber. As on 31st March, 2019, a total of 149.53 lakh subscribers have been
enrolled under APY with a total pension wealth of Rs. 6,860.30 crore.
Pradhan Mantri Mudra Yojana
The scheme was launched on 8th April 2015. Under the scheme a loan of upto Rs. 50,000 is
given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0 Lakhs under sub-scheme
‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’. Loans taken do not
require collaterals. These measures are aimed at increasing the confidence of young, educated
or skilled workers who would now be able to aspire to become first generation entrepreneurs;
existing small businesses, too, will be able to expand their activates. As on 31.03.2019, Rs.
3,21,722 crores sanctioned (Rs. 142,345 cr. - Shishu, Rs. 104,386 cr. Kishore and Rs. 74,991
cr. - Tarun category), in 5.99 crores accounts.
Stand Up India Scheme
Government of India launched the Stand Up India scheme on 5th April, 2016. The Scheme
facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/
Scheduled Tribe borrower and at least one Woman borrower per bank branch for setting up
greenfield enterprises. This enterprise may be in manufacturing, services or the trading sector.
The scheme which is being implemented through all Scheduled Commercial Banks is to benefit
at least 2.5 lakh borrowers. The scheme is operational and the loan is being extended through
Scheduled Commercial Banks across the country.
Stand Up India scheme caters to promoting entrepreneurship amongst women, SC & ST
category i.e those sections of the population facing significant hurdles due to lack of
advice/mentorship as well as inadequate and delayed credit. The scheme intends to leverage the
institutional credit structure to reach out to these underserved sectors of the population in
starting greenfield enterprises. It caters to both ready and trainee borrowers.
To extend collateral free coverage, Government of India has set up the Credit Guarantee Fund
for Stand Up India (CGFSI). Apart from providing credit facility, Stand Up India Scheme also
envisages extending handholding support to the potential borrowers. It provides for
convergence with Central/State Government schemes. Applications under the scheme can also
be made online on the dedicated Stand Up India portal(www.standupmitra.in). As on
31.03.2019, Rs. 16,085 crore has been sanctioned in 72,983 accounts (59,429 – women, 3,103-
ST and 10,451 – SC).
Pradhan Mantri Vaya Vandana Yojana
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The ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been launched by the Government
to protect elderly persons aged 60 years and above against a future fall in their interest income
due to uncertain market conditions, as also to provide social security during old age. The
scheme is implemented through the Life Insurance Corporation of India (LIC) and open for
subscription upto 31st March, 2023.
PMVVY offers an assured rate of return 7.40% per annum for the financial year 2020-21 for
policy duration of 10 years. In subsequent years, while the scheme is in operation, there will be
annual reset of assured rate of return with effect from April 1st of the financial year in line with
applicable rate of return of Senior Citizens Saving Scheme(SCSS) upto a ceiling of 7.75% with
fresh appraisal of the scheme on breach of this threshold at any point.
Mode of pension payment under the Yojna is on a monthly, quarterly, half-yearly or annual
basis depending on the option exercised by the subscriber. Minimum purchase price under the
scheme is Rs. 1,62,162/- for a minimum pension of Rs. 1000/- per month and the maximum
purchase price is Rs. 15 lakh per senior citizen for getting a pension amount of Rs. 9,250/- per
month.
PROGRAMMES IN AREA OF SOCIAL SECTOR
Introduction: The Ministry of Rural Development is engaged in implementing a number of
schemes which aim at enabling rural people to improve the quality of their lives in West Bengal
Complete eradication of poverty and the ushering in of speedy socioeconomic progress is the
goal. Accordingly, the thrust of the rural development programmes is on all-round economic
and social transformation of rural areas, through a multi-pronged strategy, aimed at reaching
out to the most disadvantaged sections of society. High priority is being accorded to the
provisions of cleaning drinking water to all villages, houses to the rural homeless and to
connecting all villages with rural roads.
The year, 1999-2000, has witnessed significant developments, in that several rural development
programmes have been restructured to enhance their effectiveness and sustainability. In
addition to the revamping of self-employment/wage employment programmes and rural water
supply and sanitation schemes, those relating to area development, land reforms and housing
have been further refined in order to obtain optimum results.
Housing is one of the basic requirements for human survival. For a normal citizen, owning a
house means significant economic security and dignity in society. For a shelterless person,
possession of a house brings about a profound social change in his attitude and existence,
endowing him with an identity, thus integrating him with his immediate social millieu.
The Central Government announced in 1998 a National Housing and Habitat Policy which
aims at providing 'Housing for All' and facilitates construction of 20 lakh additional houses (13
lakh in rural areas and 7 lakh in urban areas) annually, with an emphasis on extending benefits
to the poor and the deprived. An Action Plan for Rural Housing has accordingly been prepared.
Under the Rural Housing, an allocation 32 of Rs. 1710 crore has been made during 1999-2000
to implement the Action Plan, which has been approved with the objective of providing
"Shelter for All" by the end of the Ninth Plan period and conversion of all unserviceable kutcha

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 houses to pucca/ semi-pucca by the end of the Tenth Plan period through the construction of
additional 13 lakh houses annually. The Action Plan consists of the following elements:
* Provision for upgradation of unserviceable kutcha houses under the Indira Awas Yojana
(IAY).
* Change in the criteria of allocation under the Rural Housing Schemes.
* Credit-cum-Subsidy Scheme for Rural Housing.
* Innovative Stream for Rural Housing and Habitat Development.
* Rural Building Centres.
* Enhancement of Equity contribution by the Ministry of Rural Development to HUDCO.
* Samagra Awas Yojana.
* National Mission for Rural Housing and Habitat.
1 Indira Awas Yojana
The Government of India is implementing Indira Awas Yojana since the year 1985-86 with an
objective of providing dwelling units free of cost to the members of Scheduled. Castes.
Scheduled Tribes and freed bonded labourers living below the poverty line in rural areas. From
the year 19993-94, its scope has been extended to cover non-scheduled caste and non-
scheduled tribe rural poor, subject to the condition that the benefits to non SCs/STs shall not be
more than 40 percent of IAY allocation. Benefits of the scheme have also been extended to the
families of ex-servicemen of the armed and paramilitary forces killed in action. Three percent
of the houses are reserved for the below poverty line disabled persons living in rural areas. The
ceiling on construction assistance under the Indira Awas Yojana currently is Rs. 20,000 per unit
for plain areas and Rs. 22,000 for hilly/difficult areas. The Gram Sabha is empowered to select
the beneficiaries under the scheme. Further, the allotment of dwelling units should be in the
name of the female member of the beneficiary household. Alternatively, it can be allotted in the
name of both husband 33 and wife. Sanitary latrine and smokeless chullah are integral party of
the IAY house. The construction of the house is the responsibility of the beneficiary. The IAY
house is not to be constructed and delivered by any external agency, such as, Government
Departments, NGOs, etc. Since the inception of the scheme till December, 1999, about 57 lakh
houses have been constructed under IAY with an expenditure of Rs. 9173.24 crore
approximately.
 Conversion of Unserviceable Houses into Pucca / Semi-Pucca : As the need for upgradation is
acutely felt, 20 percent of the IAY allocation has been earmarked for conversion of
unserviceable kutcha houses into pucca/semipucca houses with effect from April 1, 1999. A
maximum assistance of Rs. 10,000/ - per unit is provided for conversion of unserviceable
kutcha houses into pucca/semipucca.
 Change in Criteria of Allocation under Indira Awas Yojana : During 1999-2000, allocation of
funds under the Indira Awas Yojana to the States/ UTs has been made on the basis of the
poverty rations as approved by the Planning Commission and rural housing shortage figures
drawn from Census 1991. Both parameters have been given equal weightage. In previous years,
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 funds were allocated to the States/UTs on the basis of only poverty ratios, as approved by the
Planning Commission. Similarly, allocations from the States to Districts have been made on the
basis of proportion of SC/ST population and housing shortage. Earlier it was based on purely
SC/ST population.
 Credit-cum-Subsidy Scheme for Rural Housing : The Credit-cum-Subsidy Scheme for Rural
Housing was launched with effect from April 1, 1999. The Scheme targets rural families having
annual income up to Rs. 32,000. While subsidy is restricted to Rs. 10,000, the maximum loan
amount that can be availed of is Rs. 40,000. The subsidy portion is shared by the Centre and the
State in the ratio of 75:25. The loan portion to be disbursed by the commercial 34 banks,
housing finance institutions etc. During the current financial year, a provision of Rs. 100 crore
has been kept under this scheme for the construction of 1.33 lakh houses. The first instalment
totalling Rs. 46.77 crore has already been released to the States of Andhra Pradesh, Assam,
Bihar, Goa, Haryana, Himchal Pradesh, Karnataka, Kerala, Madhya Pradesh, Punjab, Tamil
Nadu, Tripura, Uttar Pradesh, West Bengal and Orissa to implement the scheme.
 Innovative Stream for Rural Housing and Habitat Development : With a view to encouraging
innovative, cost effective and environment friendly techniques in the building/housing sectors
in rural areas, the Innovative Stream for Rural Housing and Habitat Development was launched
with effect from April 1, 1999.
 Setting up of Rural Building Centres : The objectives of the establishment of the Rural
Building Centres are (a) technology transfer and information dissemination, (b) skill
upgradation through training and (c) production of cost effective and environment friendly
materials/ components. Two Building Centres in each State are to be set up during the current
financial year on pilot basis. One centre is to be set up by a governmental institution and the
other by an NGO. For setting up of a Building Centre, a one time grant of Rs. 15 lakh is
provided.
 Samagra Awas Yojana : Samagra Awas Yojana is a comprehensive housing scheme launched
recently with a view to ensuring integrated provision of shelter, sanitation and drinking water.
It has been decided to take up Samagra Awas Yojana on pilot basis in one block each of 25
districts of 24 States and one Union Territory which have been identified for implementing the
participatory approach under the Accelerated Rural Water Supply Programme. The existing
schemes of contribution coming from the people. So far an amount of Rs. 145 lakh has been
released, i.e. Rs. 25 lakh each to Himachal Pradesh, Karnataka, Kerala, Tamil Nadu and
Madhya Pradesh, and Rs. 20 lakh to 35 West Bengal.
2. Swarnjayanti Gram Swarozgar Yojana
The focus of development planning in India has been rightly on the alleviation of rural poverty
since Independence. Rural India, however, continues to suffer from high incidence of poverty
in spite of strengthening of anti-poverty programmes in successive years. In percentage terms,
poverty level has reduced from 56.44 percent of the population in 1973-74 to 37.27 percent in
19993-94. In absolute terms, however, the number of rural poor has remained more or less
static. It is estimated to be about 24.40 crore persons. The adverse effect of such a large size of
the poor on the country's development is not difficult to appreciate. Quite obviously, the
situation needs to be redressed quickly. It is in this context that the self-employment

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programmes assume significance. These alone can provide income to the rural poor on a
sustainable basis. A new self-employment programme namely Swarnjayanti Gram Swarozgar
Yojana (SGSY) has been launched w.e.f. April 1,1999. As a result, the erstwhile programmes
viz. Integrated Rural Development Programme (IRDP), Development of Women and Children
in Rural Areas (DWCRA), Training of Rural Youth for SelfEmployment (TRYSEM), Supply
of Improved Tool kits to Rural Artisans (SITRA), Ganga Kalyan Yojana (GKY) and Million
Wells Scheme (MWS) ceased to be in operation. It may be pointed out that SGSY has been
devised keeping in view the positive aspects and deficiencies of the earlier programmes. The
earlier programmes were originally viewed as complimentary to each other to achieve the
larger goal of poverty alleviation. But over the years, each one of these started operating almost
as a separate and independent programme. Obviously, the concern was more for achieving
individual programme targets. The desired linkages among the programmes and the much
needed focus on the substantive issue of sustainable income generation were missing. SGSY
accordingly came into being after restructuring of all these programmes. SGSY has a definite
objective of improving the family incomes of the rural poor and, at the same time, providing for
a flexibility of design at the grassroots level to suit the local needs and resources. The objective
of the restructuring was to make 36 the programme more effective in providing a sustainable
income through micro-enterprise development, both land based and otherwise. In doing so,
effective linkages have been established between various components such as capacity building
of the poor, credit, technology, marketing and infrastructure.
3. Employment Assurance Scheme
Though creation of employment opportunities has always been an important 40 objective of
the developmental planning in India, relatively higher growth of population and labour force
has led to an increase in the volume of unemployment from one plan period to another. The
Sixth Five Year Plan aimed at bringing employment into a larger focus with the goal of
reducing unemployed to a negligible level within the next ten years. Such an approach was
necessary, because it was realised that larger and efficient use of available human resources is
the most effective way of alleviating poverty, reduction in inequalities and sustenance of
reasonable high pace of economic growth. Accordingly, Employment Assurance Scheme
(EAS) was launched on October 2, 1993 for implementation in 1778 identified backward
Panchayat Samities of 257 districts situated in the drought prone areas, desert areas tribal areas
and hill areas in which the Revamped Public Distribution System (RPDS) was in operation.
The scheme was then extended to the remaining Panchayat Samities of the country in phased
manner and finally universalised in 1997-98 to cover all the 5448 rural Panchayat Samitis of
the country. Based on the experience of last five years of implementation of the programme,
EAS has been restructured w.e.f. April 1, 1999 to make it a single wage employment
programme. While the basic parameters have been retained the allocation to the States /
Districts is more definitely applied. In keeping with the sprit of democratic decentralisation, the
Zilla Parishads have been designated as the "Implementing Authority" under the programme

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4. Rural Water Supply Programme
As the provision of safe drinking water in the rural areas is the responsibility of the States,
funds are being provided for the provision of this facility in the State's budgets right from the
First Five Year Plan period. The Accelerated Rural Water Supply Programme (ARWSP) was
introduced in 1972-73 by the Government of India, with a view to assisting the States and
Union Territories (UTs) to accelerate the pace of drinking water supply. To ensure the
maximum inflow of scientific and technical inputs into the rural water supply sector for
improving the performance, cost effectiveness of the ongoing programmes and ensuring
adequate supply of safe drinking water, the entire programme was given a Mission approach.
The Technology Mission approach. The Technology Mission on drinking water and related
water management was launched in 1986. It was also called the National Drinking Water
Mission (NDWM) and was one of the five Societal Mission launched by the Government of
India. The NDWM was renamed as the Rajiv Gandhi National Drinking Water Mission
(RGNDWM) in 1991. In order to place due emphasis on the drinking water sector, and to
achieve the avowed objective of providing drinking water facilities 45 to all rural habitations of
the country in a time bound frame, a new Department for Drinking Water Supply was created
in October, 1999.
5. Rural Sanitation
Rural Sanitation is a State subject and is undertaken by the State Governments under State
Sector Minimum Needs Programme (MNP). The efforts of the States are supplemented by the
Central Government under the Centrally Sponsored Rural Sanitation Programme (CRSP). The
Programme was launched in 1986 with the objective of improving the quality of the life of the
rural people and to provide privacy and dignity to the women. The concept of sanitation
includes safe disposal of and personal, domestic and environmental hygiene.
6. National Social Assistance Programme (NSAP)
The National Social Assistance Programme (NSAP) was included in the Central Budget for
1995-96. The details of the Programme have been worked out by a Committee under the
Chairmanship of Secretary (Rural Development) in consultation with the representatives of
State Governments. The Prime Minister, in his broadcast to the Nation 28th July, 1995, has
announced that the Programme will come into effect from 15th August, 1995. This Guidelines
sets out the features of the NSAP, procedures for its implementation, the regulation and release
of Central Assistance to States and other matters relevant to the NSAP.
7. Monitoring and Evaluation
The State/UT Committee constituted as per shall institute adequate and appropriate
arrangements for monitoring and evaluation of the NSAP. For this purpose, they can utilise the
District Level Committees, Government evaluation agencies and independent academics and
other institutions. An Advisory Committee will be established at the all India level to assist the
Ministry of Rural Development in the Monitoring and evaluation of the NSAP and to advise on
matter related to its effective implementation. The State/UT Governments shall furnish to the
Department of Rural Development, in the Ministry of Rural Development, which is the nodal

16
agency at the Centre. Central Assistance to States/UTs under the NSAP will be determined in
the following manner :- The Qualifying Financial Entitlement (QFE) for Central assistance in
respect of each of the three benefits is the product of the financial ceiling for the benefit.
However, the numerical ceiling and the Qualifying Financial Entitlement mentioned above
provide only an upper limit and in so doing the physical and financial target for the long run.
Actual physical targets and allocation of funds from year to year for the State Governments will
however be based on the budget allocation for NSAP in the current year. State/UT
Governments will be expected to maintain the level of their own current expenditure on social
protection programmes and ensure that Central assistance under the NSAP is in addition to the
State budgetary outlays for the current year or 1993-94, whichever is more on such
programmes. This consideration will be taken into account in determining the level of Central
assistance. For this purpose, social protection outlays will be taken to include outlays on all
social assistance pensions (such as for the old, agricultural labourers, widows, deserted women
and the physically handicapped), survivor family benefits, maternity assistance, maternal and
child care and child nutrition.

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