DEPARTMENT OF RURAL DEVELOPMENT

1. DEPARTMENT OF RURAL DEVELOPMENT Presentation to Ad-hoc Task Force at 11 am on 21.3.2012 IIFT, New Delhi.

2. OUTLINE OF PRESENTATION SECTION 1 Brief description and background of Department of Rural Development SECTION 2RFD of the Department for the year 2011-12 – experiences and lessons learnt. What worked and what did not ? SECTION 3 Overview of the strategy and strategic plan of the department. SECTION 4 Status of relevant discussions with Planning Commission (including with Working Groups) SECTION 5RFD of the Department for the year 2012-13

3. SECTION 1 Brief description and background of Department of Rural Development

4. Our Vision Sustainable and inclusive growth of rural India Our Mission Sustainable and inclusive growth of rural India through a multi-pronged strategy for eradication of poverty by increasing livelihood opportunities, providing social safety net and developing infrastructure for socio-economic growth and improvement of quality of life in rural India

5. Programmes of Rural Development… …areDemand Driven …aim at Universal Coverage …aim at Empowerment of the Poor …are aimed at increasing sustainability …follow Participatory Approach …have built in Transparency and Accountability

6. PROGRAMMES LIVELIHOODS: • Enhancing and improving livelihood security by providing minimum 100 days of guaranteed wage employment in every financial year to every household. (MGNREGA) • Providing livelihood opportunities to BPL households.(SGSY/NRLM) • INFRASTRUCTURE: • All-weather rural connectivity to unconnected rural habitations and up gradation of existing roads.(PMGSY) • Providing basic housing and homestead to BPL households.(IAY) • Providing urban amenities in rapidly urbanizing rural areas and improve the quality of life.(PURA) • SOCIAL SECURITY: • Providing Social assistance to the elderly, widow and disabled persons.(NSAP)

7. DEPARTMENT OF RURAL DEVELOPMENT Minister of Rural Development Shri Jairam Ramesh MOS(RD-SA) Shri Sisir Adhikari MOS(RD-PJ) Shri Pradeep Jain MOS(RD-AS) Ms. Agatha Sangma SECRETARY (RURAL DEVELOPMENT) SHRI S. Vijay Kumar AS & FA Chief Economic Adviser Joint Secretary (RL) (Rural Livelihoods) Joint Secretary (SA) (Social Assistance) Joint Secretary (RE-I) (Rural Employment) Joint Secretary (A & C) (Administration & Coordination) Joint Secretary (RC) & CVO (Rural Connectivity) Adviser (Statistics) Chief Controller of Accounts Finance/Budget Divisions of DRD/DLR & Min. of PR & Min. of DWS SGSY/NRLM/ DRDA Div. • RH Div. • NSAP Div. 3. OL Div. MGNREGA Div. • ADMIN. Div. • RFD/Sevottam • International Coop. Div. • PC Div. • IEC Div. • GC/TRG/Parl. Div 7. IT Div. 1. RC Div. 2. Vig. Div. 3. DG, NRRDA 1. MON. Div. • NLM • V& MC 1. MON./EVALUATION 2. NE Div. 3. P&P Div. Joint Secretary (RE-II) (Rural Employment) Economic Adviser MGNREGA/ PURA Div.

8. RESPONSIBILITY CENTRES

9. Implementation Mechanism Department of Rural Development • Formulates policies and programmes • Releases funds • State Governments • Facilitates implementation • - Monitors Programmes • District Administration • Prepares district perspective plans • Implements the programmes • Panchayati Raj Institutions • Plans at the grass root level • Selects works/beneficiaries and implements INDIA • 35 States/UTs • 625 Districts • 6484 Blocks • 2.5 lakh Village Panchayats • 15 lakh Rural Habitations

10. Mahatma Gandhi National Rural Employment Guarantee Act, 2005

11. Mahatma Gandhi National Rural Employment Guarantee Act, 2005 An Act to provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least 100 days of legally guaranteed wage employment in every financial year to every household whose adults volunteer to do unskilled manual work

12. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Process outcomes: Strengthen grass root democratic processes Primary: Supplement employment opportunities in rural areas Auxiliary: Create sustainable livelihoods through regeneration of natural resource base – land, water, forests (“Green Jobs”)

13. Impact of MGNREGA Employment provided to 41m Households (upto Jan. 12) Increase in Wage Income Reduction in Distress Migration Enhanced Food Security Higher Land Productivity Increase in Wage Rates Equal Wages for Men and Women Improvement in Wage Negotiation Power Financial Inclusion, 100 million institutional accounts Insurance of Wage Earners Major Safety Net Annual Budget Rs 31000 crores

14. Supplementing Employment Opportunities

15. NRLM (Aajeevika)

16. Promoting sustainable livelihoods SGSY now restructured as National Rural Livelihood Mission (Aajeevika)

17. Enhancing Sustainable LivelihoodsSwaranjayanti Gram SwarozgarYojana (SGSY) now restructured as National Rural Livelihood Mission (Aajeevika) Key Features • Social Mobilisation and Institution Building • Financial Inclusion • Livelihoods promotion • Social Development • Convergence

18. Social Mobilization and Institution Building Institutional Architecture • Support to primary level federations • Linkage with departments • Auditing of groups • Anchoring community cadre Secondary Level Federations Primary level federation - 10-20 SHGs (relaxation in difficult areas) • Training to SHGs • Financial and Livelihood Services • Access to public services and entitlements SHGs one member from each household, preferably a woman, organized into a S.H.G. To cover 7crore rural poor households • Savings • Internal Lending • Accessing Credit from Banks

19. Financial Inclusion • Access to credit is key to come out of poverty • Out of Rs.100,000 per family required, around 90% has to come from financial institutions. • Strategic partnerships with banking sector, NABARD and co-operative banks. • Promoting financial intermediation by mature S.H.G federations • Interest subsidy on loans to S.H.Gs • Micro insurance to cover life, health and assets

20. Livelihoods Enhancement • Coping with vulnerabilities – debt bondage, food insecurity, migration, health shocks • Strengthening existing livelihoods – agriculture, livestock, forestry and non-timber forest produce

21. Livelihoods Enhancement (contd…) Self employment - Entrepreneurship development among local youth to generate in-situ employment. Targeting60 lakhs micro-entrepreneurs by 2017 Skilled wage employment - opportunities for youth in growing sectors of the economy – targeting 1.0 crore youth by 2017

22. Empowerment

23. Outcomes of SGSY/Ajeevika (since inception) (as on Jan., 2012) 120 Series1 100 80 60 40 20 0 Assisted Assisted SHGs Formed Beneficiaries Women 174.79 lakhs (17.48 million) (105.91 lakhs (10.59 million) (42.87 Lakhs) (4.29 million) Investment on SGSY/Ajeevika : Rs. 44420 crore on both credit and subsidy

24. Pradhan Mantri Gram Sadak Yojana (PMGSY)

25. Rural Connectivity Pradhan Mantri Gram Sadak Yojana (PMGSY) Provision of all-weather road connectivity to all the eligible habitations in core network with population of 500 persons or more in plain areas and 250 persons or more for Hill States, Tribal (Schedule-V), Desert Areas (identified in DDP) and 78 selected Tribal and Backward districts under Integrated Action Plan (IAP). Upgradation of selected eligible roads though it is not central to the programme. 100% financing by Central Govt. Maintenance by States. Quality assurance mechanism.

26. Status of Road Network in India • Total length of road network in India : 32 Lakh km • National Highways: 65,600 Km (2%) • State Highways & • Major District Roads : 4,32,000 Km (14%) • Rural Roads : 27 Lakh Km (84%) • 80 % of Rural Roads unsurfaced • 3.42 Lakh habitations (39%) out of 8.88 Lakh rural habitations lacked all-weather connectivity in the year 2000. State Highways and Major District Roads 14% National Highways 2% Rural Roads 84%

27. PMGSY - Current Implementation Status A. Physical Progress

28. Transforming Rural Lives Increased access to market, health and education Investment of One Million Rupees enables 165 poor people to move above poverty line Source : IFPRI, Research Report 110, 1999

29. Indira Awaas Yojana (IAY)

30. Indira Awaas Yojana (IAY) Financial assistance is provided to rural BPL houseless households • Unit assistance Revised w.e.f. 1.4.2010 - Rs. 45,000 for new construction in plain areas - Rs. 48,500 for new construction in hilly areas and IAP Districts and 78 LWE affected districts. • In addition, Rs. 20,000 available as credit under DRI at interest of 4% per annum. • Allocation to States/Districts • to States on the basis of 75:25 weightage to housing shortage and poverty ratio respectively. • To districts on the basis of 75:25 weightage to housing shortage and rural SC/ST population respectively.

31. Indira Awaas Yojana (IAY) • Earmarking of Funds • Sanctions in the name of women or jointly. • 60% funds for SC/STs. • 15% for minorities. • 3% for persons with disability. • Selection of Beneficiary • From Permanent IAY Waitlist based on BPL list of 2002. • There are separate lists for SC/ST & others. • Lists are displayed publicly.

32. National Social Assistance Programmes (NSAP)

33. National Social Assistance Programmes (NSAP) • NSAP at present consists of the following schemes exclusively • for Below Poverty Line (BPL) persons/households: • Pension schemes for Old, Widow and Disabled • National Family Benefit Scheme (NFBS) for households on the death of the primary breadwinner.

34. Pension Schemes under NSAP • Old age pension under Indira Gandhi National Old Age Pension Scheme (IGNOAPS) • All BPL persons of 60 years or higher • 196.96 lakh persons have been benefitted so far. • Widow Pension under Indira Gandhi National Widow Pension Scheme (IGNWPS) • All BPL widows of 40-59 years • 36.11 lakh widows have been benefitted so far • Disability Pension under Indira Gandhi • National Disability Pension Scheme(IGNDPS) • All BPL persons with severe/ multiple disability of 18-59 years • 7.70 lakh disabled persons have been benefitted. • Budget to be enhanced from Rs 6158 Cr in 2011-12 to • Rs 9434.76. Cr (projected requirement) in 2012-13

35. SECTION 2: RFD 2011-12 :- Experience and Lessons learnt, What worked and What did not ? • Third RFD of the Department. • Total 10 Objectives (including 3 mandatory objectives were taken up with 46 Actions to be attained through 74 Success Indicators. • Overall achievements – 90% + expected MGNREGA • Experience and Lessons learnt, what worked: • The indicator % of rural households provided employment against demand in the RFD is the appropriate success indicator of the programme. • What did not work: • Persondays generated and fund utilised were fixed as success indicators. However, MGNREGA is a demand driven programme and the pesondays generated and fund utilised do not reflect the success of the programme. The programme by providing employment guarantee to the rural households has led to increase in wages in agriculture and other sectors and consequently household incomes. The demand for MGNREGA work is also closely linked to good monsoons and availability of other employment options. Therefore these indicators were not appropriate and have been removed. Other outcome indicators have been added.

36. Contd… SGSY (NRLM) • What worked? The efforts of the Ministry in providing continuous technical assistance to the states in setting up of the State missions, and, preparation of their annual action plans. • What did not work? The proposition that all S.H.Gs to be supported under credit cum subsidy component should pursue common economic activity. This has now been changed to ’promoting diversified livelihoods of individual members’. The group becomes a solidarity unit and not a ‘common production unit’. • What worked, but was not part of the RFD last year? Large scale proof of concept for sustainable and viable livelihoods of the poor around key sectors – agriculture. This is being reflected in the RFD of 2012-13. We are also increasing the sectors to include – forest produce, livestock and fisheries

37. Contd... PMGSY What worked and what did not • “Number of Inspections” as an indicator did not work, since the objective is to improve quality, therefore a new indicator, “percentage of ongoing/completed roads graded satisfactory” being taken for 2012-13. • Instead of “length of roads constructed ” a better indicator of “Number of habitations connected” being taken for 2012-13.

38. Contd... IAY Experiences & Lessons learnt • States/Implementing Agencies need to be taken on board for the success of Results-Framework Document because actual execution of the programmes is in their hands. What Worked • The agreed objectives, success indicators and the target to measure progress clearly indicated in RFD have made it easier to understand how to effectively implement and monitor the scheme. What did not work • Non-inclusion of Management Information System (MIS) to monitor the programmes to have comprehensive data input about programme implementation.

39. Contd... PURA Experience and Lessons learnt, what worked and What not ? • Since PURA is being tried out on pilot basis, proper assessment of the time needed to complete the processes involved could not be done. This rendered the timelines unrealistic. NSAP – Experiences & Lessons learnt • Key improvement – better coverage of eligible beneficiaries.

40. Section 3: Overview of the Strategy and Strategic Plan of the Department MGNREGA • Focusing on labour intensive land development works on community lands and land belonging to marginalized sections. • Use of ICT to improve delivery of services and enhance transparency and accountability. SGSY (NRLM) • Emphasis on setting up of dedicated state missions, staffed with quality human resources, continuous capacity building of the missions and state developing their own poverty reduction action plans. • Phasing strategy to ensure capacities are built at all levels and scaling up happens in a seamless organic manner • Establishing large scale proof of concepts in all critical components, to draw lessons for scaling up – resource blocks, primary sector livelihoods, financial inclusion pilots, self employment pilots, social inclusion pilots, etc.

41. Contd… PMGSY • Proper planning through preparation of Core-Network and web-based monitoring and management • High technical standards for design and execution and capacity creation for the purpose • Emphasis on quality • Proper maintenance of assets to ensure sustained socio-economic dividends

42. Contd… IAY • Ensure adequate and affordable housing for all and facilitate development of sustainable and inclusive habitats in rural areas by expanding Government support, promoting community participation, self-help and public-private partnership within the framework of Panchayati Raj. • Provide access to land, finance, basic amenities and technical support for the construction of the houses. • Creation of web based knowledge network of appropriate technology for specific region/areas of the country for IAY houses with an aim to create a knowledge repository. • Set up Resources Centres at Centre for handling technical, financial & research needs for Rural Housing Habitats and set up similar Centres at States.

43. Contd… PURA • PPP mode to achieve efficient implementation of Rural Infrastructure projects and high standards of service delivery. • Convergence of several schemes and simultaneous implementation in a project mode. NSAP • To build a database of beneficiaries with Unique ID number • Open accounts in Banks for all beneficiaries as far as possible. • Disbursement of benefits under NSAP through transaction based NSAP-MIS.

44. Section 4Discussion with Planning Commission(including Working Groups) MGNREGA • The working group has recommended strengthening the institutional arrangement at all levels for better implementation of MGNREGA. This includes cluster level teams in high expenditure Blocks. The working group has also accorded priority to capacity building efforts. These recommendations will help in achieving the RFD indicators in 2012-13. • Use of modern technology including ICT for timely disbursement of benefits.

45. Contd… SGSY (NRLM) • Emphasis on capacity building of State, district and Sub—district Mission units. • Placement linked skill development to be a major initiative in 12th Plan • Sustainable livelihoods initiatives in agriculture, forest produce (non-timber), livestock, fisheries, etc. • Financial inclusion to be major thrust area for savings and credit • Special initiatives for social inclusion of weaker sections and vulnerable categories.

46. Contd… PMGSY: • Working Group has recommended striking of balance between maintenance and creation of assets. • Working Group has recommended more emphasis on providing connectivity to IAP Districts. • Working Group has recommended intensification of efforts to use marginal/local materials in road construction. IAY (Rural Housing): • Working Group has recommended enhancement in unit assistance for the construction of houses . • Provision for capacity building and man-power strengthening to make MIS successful recommended. • New ways to implement new financial instruments/bankable schemes to be investigated. • Provision of technical training and technical support to the ground level officials and beneficiaries respectively.

47. Contd… PURA • The working group has recommended a larger role for the State Governments in the appraisal and approval of PURA projects and also conversion of the scheme into a centrally sponsored scheme. This will enhance the commitment of the States to the scheme. • The working group has also recommended establishment of adequate institutional arrangement for project implementation. These recommendations will help in achieving the RFD indicators in 2012-13. NSAP • No working group

48. RFD 2012-13 Inter se priorities among key objectives, success indicators and targets Table 1- Result-Framework Document (RFD) Table 2- Trend Value for Success Indicators

49. Section 2 Table 1 – Result Framework Document

50. Contd…