Rural and Urban Development

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Rural and Urban Development

October 1974Department of Rural Developmentpart of Ministry of Food and AgricultureAugust 1979elevated  new Ministry of Rural ReconstructionMarch 1995Ministry of Rural Areas and Employment with three departments namely Department of Rural Employment and Poverty Alleviation, Rural Development and Waterland Development.

Acting as a catalyst effecting the change in rural areas through the implementation of wide spectrum of programmes which are aimed at poverty alleviation, employment generation, infrastructure development and social security.

National Minimum ProgrammeCentral Governmentcardinal importance of villages to the overall development of the country and commits to work towards development of rural areas, which for various reasons could not keep pace with urban areas in the past.

Ministry of Rural Development

Department of Rural Development

Department of Land Resources

Department of Drinking Water Supply


Flagship programme of the Governmentaims at enhancing livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual workfirst ever law internationally, that guarantees wage employment at an unprecedented scale.

Giving a pivotal role to the Panchayati Raj Institutions in planning, monitoring and implementationUnique featurestime bound employment guarantee and wage payment within 15 days, incentive-disincentive structure to the State Governments for providing employment as 90 per cent of the cost for employment provided is borne by the Centre  mandates a 33 per cent participation for women.

Central government has been encouraging the state governments to make wage payment through bank and post office accounts of wage seekers.


Fully funded Centrally Sponsored Schemeprovide connectivity to all the eligible unconnected habitations of more than 500 persons in the rural areas (250 persons in the hilly the tribal and desert areas) by good quality all-weather roads.

Under Bharat Nirman, goal has been set to provide connectivity to all the habitations with population of more than 1000 in the plain areas and habitations with a population of 500 or more in hilly and tribal areas in a time-bound manner  systematic upgradation of the existing rural road networks is also an integral component of the scheme.


The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house.


To provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the Scheduled Castes, Scheduled Tribes and freed bonded labourers categories

Financial resources are shared between the centre and the states on a 75 : 25 basis.

Basis of allocations made and targets fixed, district Rural Development Agency (DRDAs) / Zilla Parishad (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat.

The Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required.

The dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member.

The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary.

The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited.

No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries.

Swaranjayanti Gram Swarojgar Yojana:

Training of Rural Youth for Self Employment (TRYSEM)

Integrated Rural Development Programme (IRDP)

Swaranjayanti Gram Swarojgar Yojana

Development of Women and Children in Rural Areas (DWCRA)

Supply of tools kits in Rural Areas (SITRA)

Ganga Kalyan Yojana (GKY)

Million Wells Scheme (MWS)

The assisted families (Swarojgaris) may be individuals or Groups (Self Help Groups).

Salient features:

  • Organizing the rural poor into Self Help Groups (SHGs) through social mobilization;

  • Key activity and development of activity clusters;

  • Training and marketing support to the Swarojaris;

  • Involvement of NGOs/ CBOs/ Animators in social mobilization and training and capacity building of Self Help Groups.

Assistancegiven in the form of Revolving Funds Assistance and Capital Subsidy by the government linked to credit by the banksThe Revolving Fund Assistance is to augment the group corpus of SHGs and provide them with immediate liquidity to meet their emergent consumption needs.

Credit targets under the SGSY are fixed every year by a Committee having representatives from the Ministry of Finance, NABARD, Reserve Bank of India (RBI), State Bank of India (SBI) and Ministry of Rural Development.

An initiative has been taken to set up dedicated training institute for skill training of rural BPL for self /wage employmentThese institutes (RSETIs) would be set up in each district of the country in partnership with the Banks.


National Social Assistance Programme (NSAP)
Aims at ensuring minimum national standard for social assistance in addition to the benefits that state are currently providing or might provide in future.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS),

NationalFamily Benefit Scheme (NFBS) Annapurna

Indira Gandhi National Widow Pension


Indira Gandhi National Disability Pension Scheme


At inception, grant of _ 5000 in case of death due to natural causes and Rs 10,000 in case of accidental death of the "primary breadwinner" was provided to the bereaved household under this Scheme.

The primary breadwinner specified in the Scheme, whether male or female, had to be a member of the household whose earning contributed substantially to the total household income.

The death of such a primary bread winner occurring whilst he or she was in the age group of 18 to 64 years made the family eligible to receive the grant under the Scheme.

Provision of Urban Amenities in Rurla Areas (PURA)

The objectives of the scheme are to provide livelihood opportunities and urban amenities in rural areas for bridging rural-urban divide and improving the quality of life.

The scheme will be implemented under the framework of Public Private Partnership (PPP) between Gram Panchayats and Private Sector Partner.


Strengthening the DRDAs (District Rural Development Agency) and making them more professional in their functioning.

The funding pattern of the DRDA administration is in the ratio of 75:25 between the Centre and the States. Non-NE and for NE-States it is 90:10. In the case of UTs it is hundred per cent under the Scheme.


The Council for Advancement of People’s Action and Rural Technology (CAPART) is an autonomous organisation under the Ministry of Rural Development  supporting and funding agency for the voluntary organisations objective is to promote voluntary action through community participation and to propagate appropriate rural technologies for the benefit of rural masses.


Department of Land Resources in the Ministry of Rural Development is administering three area-based watershed programmes for development of wastelands/degraded lands check the diminishing productivity of wasteland and loss of natural resources.

Desert Development Programme (DDP)

Integrated Wastelands Development Programme (IWDP) Scheme

Drought Prone Areas Programmes (DPAP)

Drought Prone Areas Programmes (DPAP)

Desert Development Programme (DDP)

Integrated Wastelands Development Programme (IWDP) Scheme

Integrated Watershed Management Programme (IWMP)

Integrated Wastelands Development Programme:

The development of wastelands and degraded lands under the programme is expected to promote generation of employment in rural areas besides increasing land productivity in the project areas.


The National Land Records Modernization Programme (NLRMP):

Computerization of Land Records (CLR)

Strengthening of Revenue Administration and Updating of Land Records (SRA&ULR)
View to assisting the States/UTs in the task of computerization of land records and strengthening their revenue administration and training infrastructure for survey and settlement.

The National Land Records Modernization Programme (NLRMP)

Include completion of computerization of the records of rights (RoRs), digitization of maps and updating of land records, survey/resurvey using modern technology including aerial photogrammetry. computerization of registration, automatic generation of mutation notices, and training and capacity building of the concerned officials and functionaries.

National Rural Drinking Water Programme (NRDWP):

To provide safe drinking water in all rural habitations  to resolve drinking water crisis in rural areas.

A Mission approach was given to the entire programme when a Technology Mission on Drinking Water Management, named as the National Drinking Water Mission (NDWM) renamed as Rajiv Gandhi National Drinking Water Mission (RGNDWM).

  • Move away from over dependence on single source to multiple sources through conjunctive use of surface water, groundwater and rainwater harvesting.

  • Focus on ensuring sustainability in drinking water schemes and prevent slip back.

  • Encourage water conservation methods including revival of traditional water bodies.

  • Move forward towards achieving household level drinking water security through proper water demand and budgeting.

  • Convergence of all water conservation programme at the village level.

  • Focus on ensuring household level drinking water security through preparation of village water security plans.

  • Conscious move to get away from high cost treatment technologies for tackling arsenic and fluoride contamination to development of alternative sources in respect of arsenic and alternated sources/dilution of aquifers through rainwater harvesting in respect of tackling fluoride contamination.

  • Convergence of all water conservation programme at the village level.

  • In respect of nitrate contamination, treatment of catchment area through simple measures such as fencing and effective implementation of TSC programme, prevention of sewage/animal waste leaking into the surface/underground water sources, promoting ecological sanitation to reduce use of inorganic fertilizers should be our focus.

  • For tackling salinity problem, solar desalination and dilution through rainwater harvesting to be adopted.

  • Linkage of National Rural Drinking Water Quality Monitoring and Surveillance Programme with the recently approved Jalmani guidelines for implementation of Stand-alone drinking water purifications systems in rural schools.

  • The five grass root level workers trained for NRDWQM&SP are the ambassadors for achieving the household level drinking water security in the rural India.ASHA worker is the linkage to NRHM.

  • Apart from XII FC funds, GPs can utilize the untied funds available under NRIHM for meeting O and M expenses of drinking water supply schemes.

  • Move away from off-line unconsolidated figures to on-line details of data entry and linkage with Census survey and NHFS survey.

  • Encourage handing over of management of rural drinking water schemes (RWS) to the Panchayat Raj Institutions (incentive of 10 per cent of the NRDWP allocation for the States that transfer the management, is introduced).

Bharat Nirman - Rural Drinking Water:

Rural drinking water is one of the six components of Bharat Nirman.

Contamination of drinking water in rural areas of the country:

With the advent of 'India Mark-II hand pump technology', the focus of selection of drinking water sources shifted to ground-water, as they were considered biologically safe.

Except for nitrate, all others occur naturally and are released from the geological formations.

Nitrate contamination occurs due to leaching of fertilizers and or of untreated sewerage into aquifers.

Jalmani - Installation of standalone water purification systems in rural schools:

With the objective of providing safe and clean drinking water to the children studying in water deficient rural schools, under Jalmani Programme, 100 per cent financial assistance is provided to states to install standalone water purification systems in rural schools.

Central Rural Sanitation Programme (CRSP)

Aims at improving the quality of life of the rural poor and to provide privacy and dignity to women in rural areas  Total Sanitation Campaign' (TSC) under restructured CRSP was launched to promote sanitation in rural areas  community led and people-oriented programme .

An incentive scheme called Nirmal Gram Puraskar has been launched for Panchayati Raj Institutions which are successful in eliminating totally the practice of open defecation in their jurisdiction.


To encourage the Panchayati Raj Institutions to take up sanitation promotion  given to those PRIs which attain 100 per cent open defecation free environment.

Acclaimed internationally as a unique tool of social engineering and community mobilization and has helped a difficult programme like rural sanitation to pick up.

Panchayati Raj Institutions:

The aim has been to combine social justice with effective local governance, with an emphasis on reservation of seats for the deprived classes of population, including of the leadership positions.

Ministry of Panchayati Raj

Backward Regions Grant Fund (BRGF)

Rashtriya Gram Swaraj Yojana (RGSY)

Panchayat Empowerment and Accountability Incentive Scheme (PEAIS)

Rural Business Hubs (RBHs)

Gender Empowermentthrough Panchayats

Backward Regions Grant Fund Programme:

New approach to addressing persistent regional imbalances in developmentsubsumes the Rashtriya Sam Vikas Yojana (RSVY), a scheme earlier being administered by the Planning Commission.

The conviction that drives this new locally driven approach is that grass-roots level democratic institutions know best the dimensions of backwardness in their areas and are, therefore, best placed to undertake individually small, but significant, local interventions to sustainably tackle the problem of backwardness.

The guidelines of the programme entrust the central role in planning and implementation of the programme to Panchayats, Municipalities, and the District Planning Committees (DPCs).

Rashtriya Gram Swaraj Yojana:

Centrally Sponsored Schemeimplemented by the MoPR in the non-BRGF districtsfocuses primarily on providing financial assistance to the States/UTs for Training and Capacity building of elected representatives (ERs) and functionaries of Panchayati Raj Institutions (PRIs) so that they can perform the functions devolved upon them and the schemes entrusted to them effectively.

Mission Mode on E-PRI:

E-Panchayat is identified as one of the Mission Mode Projects (MMPs) under NeGP.

It proposes to provide a whole range of IT related services such as Decentralized Database and Planning. PRI Budgeting and Accounting, Implementation and monitoring of Central and State sector schemes, Citizen-centric Services, Unique codes to Panchayats and Individuals, Essential GIS based applications, on-line self-learning medium for elected representatives and official functionaries.

Rural Business HUBS:

RBH is a participatory development model for the rural areas of the country that is built on the platform of 4P i.e. Public Private Panchayat Partnership.

This concept draws from Dina's experience of Township and Village Enterprises and Thailand's DTOP (One Tambon One Product) programme that add value to agricultural and other rural produce and rural skills.

Role of Panchayati Raj Institutions:

promoting Rural Business Hubs and economic developmentidentify skills and endowments of people as well as natural resources in the Panchayat areajointly organise awareness programmes to bring together the business interest and the community to a common platform and thereby facilitate acceptance of the business plan by local stakeholderscan integrate the economic development plan emerging from the RBH initiative into the overall decentralised planning process at the local level.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM):

Objective of reforms driven and fast track development of cities across the country, with focus on bringing about efficiency in urban infrastructure, service delivery mechanisms, community participation and accountability of Urban Local Bodies and Parastatal agencies towards citizens.

Mission Strategy

    • Planned urban perspective frameworks for a period of 20-25 years (with 5 yearly updates) indicating policies. programmes and strategies of meeting fund requirements would be prepared by every identified city.

    • Cities/Urban Agglomerations/Parastatals will be required to prepare Detailed Project Reports for undertaking projects under identified areas.

    • Private Sector Participation in development, management and financing of Urban Infrastructure would be clearly delineated.

    • Funds for the identified cities would be released to the designated State Nodal Agency, which in turn would leverage, to the extent feasible, additional resources from the financial institutions/private sector/capital market.

    • Funds from Central and State Government will flow directly to the nodal agency designated by the State, as grant.

    • A revolving fund will be created to meet the operation and maintenance costs of the assets created under the Mission.

Urban Infrastructure and Governance (UIG):

The main thrust of the sub-mission on Urban Infrastructure and Governance is on major infrastructure projects relating to water supply including sanitation, sewerage, solid waste management, road network, urban transport and redevelopment of inner (old) city areas with a view to upgrading infrastructure therein, shifting industrial/commercial establishments to conforming areas, etc.

National Steering Group:

To steer the Mission objectives, a National Steering Group has been constituted under the Chairmanship of Minister of Urban Development with Minister of Housing and Urban Poverty Alleviation as co-Chairperson.

Urban Reforms:

The main thrust of the strategy of urban renewal is to ensure improvement in urban governance so that Urban Local Bodies (ULBs) become financially sound and the assets created are maintained properly.

The proposed reforms broadly fall into two categories:-

  1. Mandatory Reforms

  2. (ii) Optional Reforms

Capacity Development Initiatives:

Building the capacity of municipal staff and elected representatives as well as the State level nodal agency to effectively implement radical urban reforms and infrastructure projects is recognised as an urban imperative.

  1. Rapid Training Programme (RTP)

Capacity building of city level elected representatives and staff of ULBs/ parastatal organizations in the mission cities is recognized as a priority to take on the task of implementing projects and reforms under the Mission.
Rapid Training Program (RTP) on three prioritized Modules namely Governance and Reforms, Supervision of Preparation of DPRs, and Project Implementation and Management.
b) Programme Management Unit (PMU):

To strengthen the capacity of the State Level Nodal Agencies, to effectively coordinate implementation of projects and reforms under Jawaharlal Nehru National Urban Renewal Mission, the Mission Directorate is supporting establishment of Programme Management Unit (PMU) at the state level.

C) Peer Experience and Reflective Learning (PEARL):

Launched to foster cross learning and knowledge sharing through, networking between the Mission cities. To achieve this objective, the Mission supported formation of groups/ networks amongst JNNURM cities having similar socio-economic profile and urban issues, along with natural affinity to peer pair.

The National Institute of Urban Affairs (NIUA) has been appointed as the National Coordinator for the PEARL program for coordinating the overall functioning of the networks, with an appreciation of the independent self driven nature of the networks, and assisting the Mission Directorate in supporting and monitoring the programme.
D)National Mission Mode Project on e-Governance in Municipalites:

Since local Government is the first interface between citizens and government this initiative would solve a number of problems that the people in towns and cities are facing due to rapid urbanization.

It would assist improved service delivery, decentralization, better information management and transparency, citizen's involvement in government, improved interaction between local governments and its citizens as well as other interest groups like NGOs, CBOs, RWAs, etc.
Monitoring of the Projects and Reforms

Monitoring of the projects for timely completion and for achieving the reforms committed as per the MOA is being done by the Central Sanctioning and Monitoring Committee regularly during its meeting for the consideration of the projects for approval for funding under JNNURM.

Programme Management and Evaluation System (PMES):

PMES has been developed as a comprehensive web-enabled Management Information system (MIS) which will serve to cover all the critical aspects of programme implementation.

Independent Review and Monitoring Agency (IRMA):

IRMA are agencies to be appointed by the States for monitoring of the progress of implementation of the projects sanctioned under the JNNURM so that the funds released are utilized in a purposeful and time-bound manner.

Development of Community Partnership:
1)Establishment of City Voluntary Technical Corp (CYTC):

Voluntary groups of professionally Qualified persons in the sectors of urban planning, urban governance, urban engineering, legal and financial services and urban poverty.

Their setting up was being facilitated by the National Technical Advisory Group (NTAG) on request of the ULB.
2) Community Participation Fund:

For funding the projects during the remaining years of mission period.

Urban Infrastructure Development Scheme for Small and Medium Towns Scheme(UIDSSMT):

Urban Infrastructure Development Scheme for Small and Medium Towns Scheme (UIDSSMT), one of the sub-components of JNNURM.

Scheme of Integrated Development of Small and Medium Towns (IDSMT)

Accelerated Urban Water Supply Programme (AUWSP)



a) Improve Infrastructure facilities and help create durable public assets and quality oriented services in cities and towns.

b) Enhance public-private partnership in infrastructural development and

c) Promote planned integrated development of towns/cities.

National Urban Information System (NULS):


i) To develop urban infrastructure facilities such as drinking water, sewerage, drainage and solid waste management etc at satellite towns/counter magnets around the seven mega-cities and to channelize their future growth so as to reduce pressure on the mega cities;

ii) To implement reforms such as E-Governance, property tax, double entry accounting, creation of barrier free environment, structural safety norms in compliance with the National Building Code, water and energy audit of water and waste-water utilities and implementation of service level benchmarks;

iii) Strengthening implementation of reforms such as levy of reasonable user charges

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