INCLUSIVE

DEVELOPMENT
MANOJ K. JHA

1.

INDIA HUMAN
REPORT, 2011

The recently released Human Development

Report, 2011 with the theme 'Towards
Social Inclusion' has praised the efforts of
poorer States like Bihar and Uttar Pradesh
in making the development process more
'socially inclusive' through improving the lot
of their marginalized Dalits and Tribals.
However it has lamented the richer and
developed States like Gujarat wherein the
process has not been 'socially inclusive'.

& MP. However, according to the Report,

India is also home to more than one-third
of the global world illiterates wherein the
percentage of illiterates from SC, ST and
Muslim minority community are very high.
Among SC/ST, more than 50 per cent of
women are illiterates.

DEVELOPMENT

The improvement in health index has been

slow. It has improved by 13.2 per cent in
the last decade. The highest growth in the
health improvement has been noted in Goa
(72%) followed by Chhattisgarh (22%). In
Delhi the growth rate is a meager 4 per
cent. Further there exists wide inter-State
variation in the health index. It ranges from
0.82 in Kerala to 0.41 in Assam.

The prevailing condition of sanitation is

threatening according to the report. Though
half of the population had access to
sanitation in 2008 still there exists wide
inter-State variation. In the States of MP,
Chhattisgarh, Jharkhand, Orissa, Bihar,
Rajasthan and Uttarakhand, still 75 per cent
of the population does not have access to
sanitation.

The most serious challenge arises on the

nutrition front. Though Madhya Pradesh
still is numero uno in malnutrition and
undernutrition, more concern arises from
the increase in malnutrition in the richer
and developed States like Gujarat. The State
with 69.7% kids up to 5 being anaemic and
44.6% suffering from malnutrition, proves
that high growth was no guarantor of
improvement in health.

It is the robust infrastructure in Kerala,

Delhi and Goa that has contributed to the
overall improvement in HDI, whereas it is
the poor condition of infrastructure in poorer
States that has kept these States poor.

The highlights of the Report are as follows:

The overall Human Development Index (HDI)

for the country has improved through the
last decade, with the inequality gap between
States narrowing down. In the last decade
the HDI increased by 21 per cent from 0.387
in 1999-2000 to 0.467 in 2007- 08.

The HDI list has been topped by Kerala

with highest education, health and
consumption expenditure index. It is
followed by Delhi, Himachal Pradesh and
Goa.

Chhattisgarh, Orissa, MP, UP, Jharkhand

& Assam have an HDI below the national
average of 0.467. MP has the lowest HDI
value and thus is at the bottom.

In some poorer States like Bihar, Andhra

Pradesh, MP, Chhattisgarh, Orissa & Assam
the quantum of improvement in HDI has
been higher than the national average of
21 per cent.

The overall increase in HDI is attributed to

28.5 per cent increase in education index
across the country. It ranges from 0.92 for
Kerala to 0.41 in case of Bihar. The
improvement in the education index was
the "greatest" in States like UP, Rajasthan

There has been "impressive growth" in

teledensity overtime from 22 per cent in
2008 to 66 per cent in 2010 on account of
increase in urban tele-density. Besides, the
report also highlights that 75 per cent of
population have access to electricity.

The report prepared by the Delhi-based

Institute of Applied Manpower Research for
the Planning Commission focuses on
income, education, health, literacy, nutrition
and sanitation in the country.

2.

TENDULKAR COMMITTEE REPORT

ON POVERTY ESTIMATION

The Planning Commission constituted an

Expert Group in December 2005 under the
chairmanship of Professor Suresh D.
Tendulkar to review the methodology for
estimation of poverty. The Expert Group
submitted its report in December 2009.

While acknowledging the multidimensional

nature of poverty, the Expert Group
recommended moving away from anchoring
poverty lines to the calorie-intake norm to
adopting MRP based estimates of
consumption expenditure as the basis for
future poverty lines and MRP equivalent of
the urban poverty line basket (PLB)
corresponding to 25.7 per cent urban
headcount ratio as the new reference PLB
for rural areas.
On the basis of the above methodology, the
all-India rural poverty headcount ratio for
2004-05 was estimated at 41.8 per cent,
urban at 25.7 per cent, and all-India at 37.2
per cent. It may, however, be mentioned
that the Tendulkar Committee's estimates
are not strictly comparable to the official
poverty estimates because of different
methodologies.
As has been indicated in the Mid Term
Appraisal of the Eleventh Five Year Plan,
the revised poverty lines for 2004-05 as
recommended by the Tendulkar Committee
have been accepted by the Planning
Commission.
The Tendulkar Committee has specifically
pointed out that the upward revision in the
percentage of rural poverty in 2004-05,
resulting from the application of a new rural

poverty line should not be interpreted as

implying that the extent of poverty has
increased over time. These estimates, as
reported by the Committee, clearly show
that whether we use the old method or the
new, the percentage of BPL population has
declined by about the same magnitude.
3.

SAXENA COMMITTEE REPORT ON

CONDUCTING BPL CENSUS IN
RURAL AREAS

An Expert Group headed by Dr N.C.

Saxena was constituted by the Ministry of
Rural Development to recommend a
suitable methodology for identification of
BPL families in rural areas.

The committee observed that the national

poverty line at Rs. 356 per capita per month
in rural areas and Rs. 539 per capita per
month in urban areas at 2004-05 prices
permitted both rural and urban people to
consume about 1820 k calories as against
the desired norm of 2400/2100 k calories.
Hence a large number of the rural poor got
left out of the BPL status benefits as in order
to consume the desired norm of 2400/ 2100
k calorie.

Thus, the committee recommended that the

cut-off line for determining BPL status
should be around Rs. 700 in rural areas
and Rs. 1000 in urban areas.

The committee recommended that the

percentage of people entitled to BPL status
should be revised upwards to at least 50
percent though the calorie norm of 2400
would require it to be 80 percent.

The committee also recommended doing

away with score-based ranking of rural
households followed for the BPL census
2002 and has recommended automatic
exclusion of some privileged sections and
automatic inclusion of certain deprived and
vulnerable sections of society, and a survey
for the remaining population to rank them
on a scale of 10.

Automatic Exclusion: Households that

fulfill any of the following conditions will
not be surveyed for BPL census:
1. Families who own double the land of
the district average of agricultural land
per agricultural household if partially
PROGRAMMES & POLICIES

or wholly irrigated (three times if

completely un-irrigated).
2. Families that have three or four-wheeled
motorized vehicles, such as, jeeps or
SUVs.

May 2010 to recommend the methodology

for identification of BPL families in urban
areas in the context of the 12th Five Year
Plan.

3. Families that have at least one

mechanized farm equipment, such as,
tractors, power tillers, threshers or
harvesters.

1. Those people who are homeless, live in

temporary houses where usage of
dwelling space is susceptible to
insecurity of tenure and is affected by
lack of access to basic services should be
considered residentially vulnerable.

4. Families that have any person who is

drawing a salary of over Rs. 10,000 per
month in a non-government/ private
organization or is employed in
government on a regular basis with
pensionary or equivalent benefits.

2. People unemployed for a significant

proportion of time or with irregular
employment or whose work is subject
to unsanitary or hazardous conditions
or has no stability of payment for
services
should
be
regarded
occupationally vulnerable.

5. Income tax payers.

The expert group submitted an interim report

this month recommending that poverty in
urban areas be identified through specific
vulnerabilities in residential, occupational and
social categories. It said that:

Automatic Inclusion: The following would

be compulsorily included in the BPL list:
1. Designated primitive tribal groups.
2. Designated most discriminated against
SC groups, called Maha Dalit groups.

3. Households headed by women or

minors or where the elderly are
dependent on the head of household or
where the level of literacy is low or
members are disabled or chronically ill
should be considered socially vulnerable.

3. Single women-headed households.

4. Households with a disabled person as
breadwinner.
5. Households headed by a minor.

The expert group is yet to finalise the

detailed methodology for an ordinal ranking
of the poor on the basis of vulnerability.

7. Homeless households.

5.

MULTI-DIMENSIONAL
INDEX

8. Households that have a bonded labourer

as member.

The HDR 2010 and 2011 measured poverty

in terms of a new parameter, namely
multidimensional poverty index (MPI),
which replaced the human poverty index
(HPI) used since 1997.

The MPI indicates the share of the

population that is multi-dimensionally poor
adjusted by the intensity of deprivation in
terms of living standards, health, and
education.

According to this parameter, India with a

poverty index of 0.292 and poverty ratios
of 41.6 per cent (in terms of PPP $ 1.25 a
day) and 28.6 per cent (national poverty

6. Destitute households which are

dependent predominantly on alms for
survival.

4.

S.R. HASHIM COMMITTEE FOR

IDENTIFICATION OF BPL FAMILIES
IN URBAN AREAS

The Ministry of Housing and Urban Poverty

Alleviation (HUPA) is the nodal Ministry
for issue of guidelines to identify BPL
families in urban areas. Till now, no uniform
methodology was being followed by the
States/UTs to identify the urban poor.

An Expert Group under the Chairmanship

of Professor S.R. Hashim has been
constituted by the Planning Commission in

PROGRAMMES & POLICIES

POVERTY

line) is not favourably placed when

compared with countries like China and Sri
Lanka. In fact, the difference in population
below the poverty line (BPL) widens
substantially in case of India when this
indicator is used instead of the national
poverty line indicator, while for other
countries, there is less of a difference and
in some cases even a fall.

According to HDR-2011 with an MPI of

0.283, 53.7% Indians have been placed in
the bracket of multi-dimensionally poor (612
million), the largest concentration of such
poor people in the world. Moreover,
'intensity of deprivation' in India was 50
per cent in terms of 'overall life satisfaction'
between 2006 and 2010.

6.

MAHATMA GANDHI NATIONAL

RURAL EMPLOYMENT GUARANTEE
SCHEME (MGNREGS):

MGNREGS, the flagship programme of the

Government of India to promote inclusive
growth 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.

It also mandates 33 per cent participation

for women.

The primary objective of the Scheme is to

augment wage employment. This is to be
done while also focusing on strengthening
natural resource management through
works that address causes of chronic poverty
like drought, deforestation, and soil erosion
and
thus
encourage
sustainable
development.

The MGNREGS Act was notified in 200

districts in the first phase with effect from
2 February 2006 and then extended to an
additional 130 districts in the financial year
2007-08.

The Act has been notified throughout the

country with effect from 1 April 2008.

During 2009-10 Rs. 5.26 crore households

were provided employment under this

scheme as against more than 4.51 crore

during 2008-09.
7.

SAMPOORNA GRAMEEN ROZGAR

YOJANA (SGRY)

The Sampoorna Grameen Rozgar Yojana

(SGRY) was launched on 25 September,
2001 by merging the on-going schemes of
EAS and the JGSY with the objective of
providing additional wage employment and
food security, alongside creation of durable
community assets in rural areas.

The programme is self-targeting in nature

with provisions for special emphasis on
women, scheduled castes, scheduled tribes
and parents of children withdrawn from
hazardous occupations.

While preference is given to BPL families

for providing wage employment under
SGRY, poor families above the poverty line
can also be offered employment wherever
NREGA has been launched.

The annual outlay for the programme is

Rs. 10,000 crore which includes 50 lakh
tonnes on food grains.

The cash component is shared between the

Centre and the States in the ratio of 75:25.

Food grains are provided free of cost to the

States/UTs. The payment of food grains is
made directly to FCI at economic cost by
the Centre. However, State Governments are
responsible for the cost of transportation of
food grains from FCI godown to work-site/
PDS shops and its distribution. Minimum
wages are paid to the workers through a
mix of minimum five kg of food grains and
at least 25 per cent of wages in cash.

The programme is implemented by all the

three tiers of Panchayat Raj Institutions.
Each level of Panchayat is an independent
unit for formulation of Action Plan and
executing the scheme. Resources are
distributed among District Panchayat,
Intermediate Panchayats and the Gram
Panchayats in the ratio of 20:30:50.

The Gram Panchayats can take up any work

with the approval of the gram sabha as per
their felt need and within available funds.
PROGRAMMES & POLICIES

Fifty per cent of the funds earmarked for

the gram panchayats are to be utilised for
infrastructure development works in SC/
ST localities. 22.5 per cent resources must
be spent on individual beneficiary schemes
meant for SCs/STs out of the resource share
of District Panchayat and Intermediate
Panchayats.

Contractors are not permitted to be engaged

for execution of any of the works and no
middlemen/intermediate agencies can be
engaged for executing works under the
scheme.

8.

SWARNA
JAYANTI
GRAM
SWAROZGAR YOJANA (SGSY)

The Swarna Jayanti Gram Swarozgar

Yojana (SGSY) was launched as an
integrated programme for self-employment
of the rural poor with effect from 1 April
1999.

The objective of the scheme is to bring the

assisted poor families above the poverty line
by organising them into Self Help Groups
(SHGs) through the process of social
mobilisation, their training and capacity
building and provision of income generating
assets through a mix of bank credit and
government subsidy.

The scheme emphasizes establishment of

activity clusters through selection of key
activities based on aptitude and skill of the
people, availability of resources and market
potentiality. The scheme adopts a process
approach and attempts to build the
capacities of the rural poor. It provides for
involvement of NGOs/CBOs/Individuals/
Banks and Self Help Promoting Institutions
in nurturing and development of SHGs,
including skill development.

The focus of the programme is on

establishing a large number of microenterprises in rural areas based on the
ability of the poor and potential of each
area, both land-based and otherwise, for
sustainable income generation. Due
emphasis is being laid on different
components such as capacity building of
the poor, skill development training, credit,
training, technology transfer, marketing and
infrastructure.

PROGRAMMES & POLICIES

The subsidy allowed under the SGSY is 30

per cent of the total project cost, subject to
a ceiling of Rs. 7,500 (for SC/STs and
disabled persons subsidy limit is 50 per cent
of the project cost subject to a ceiling of Rs.
10,000). For Self-Help Groups (SHGs),
subsidy is 50 per cent of the project cost
subject to a ceiling of Rs. 1.25 lakh or per
capita subsidy of Rs. 10,000, whichever is
less. There is no monetary ceiling on subsidy
for minor irrigation projects for SHGs as
well as individual swarozgaris.

The SGSY has a special focus on the

vulnerable groups among the rural poor.
SC/STs account for at least 50 per cent,
women 40 per cent and the persons with
physical disability constitute 3 per cent of
the Swarozgaris respectively.

The SGSY seeks to promote multiple credits

rather than a one-time credit injection.

The SHGs may consist of 10-20 members

and in case of minor irrigation or in case of
disabled persons and difficult areas, i.e.,
hilly, desert and sparsely populated areas;
this number may be a minimum of five.
Self Help Groups should also be drawn from
the BPL list approved by the Gram Sabha.
The SHGs broadly go through three stages
of evolution such as group formation,
capital formation through the revolving
fund and skill development and taking up
of economic activity for income generation.

Under SGSY each block should concentrate

on 4-5 selected key activities and attend to
all aspects of these activities in a cluster
approach, so that swarozgaris can draw
sustainable income from their investments.
The scheme lays special emphasis on
development of swarozgaris through well
designed training courses tailored to the
activities selected and the requirement of
each swarozgari.

SGSY is being implemented through the

District Rural Development Agencies
(DRDAs) with active involvement of
Panchayati raj institutions, banks and
NGOs.

It is financed on 75:25 cost-sharing basis

between the Centre and the states.

Since the inception of the programme, 22.52

lakh Self-Help Groups (SHGs) have been
formed covering 66.97 lakh swarozgaris.
These include 35.54 lakhs members of the
SHGs and 31.43 lakh individual Swarozgaris
who have been assisted with a total
investment of Rs. 14403.73 crore. Out of total
Swarozgaris assisted, SCs/STs were 45.54
per cent and women 47.85 per cent.

9.

SWARNAJAYANTI
SHAHARI
SWAROJGAR YOJANA (SJSRY)

The Swarna Jayanti Shahari Rozgar Yojana

(SJSRY) was launched on 01.12.1997 after
subsuming the earlier three schemes for
urban poverty alleviation, namely Nehru
Rozgar Yojana (NRY), Urban Basic Services
for the Poor (UBSP), and Prime Minister's
Integrated Urban Poverty Eradication
Programme (PMIUPEP). The key objective
of the Scheme was to provide gainful
employment to the urban unemployed or
underemployed through the setting up of
self employment ventures or provision of
wage employment.

To overcome the difficulties faced by the

States/UTs and address certain drawbacks
in the implementation of SJSRY, the
Guidelines of the Scheme have been revised.
It is presumed that the revised guidelines
will assist in the effective implementation
of SJSRY and make a dent on the urban
poverty scenario in the country. The Revised
Guidelines will come into effect from
1.4.2009.
The objectives of the revised Swarna Jayanti
Shahari Rozgar Yojana (SJSRY) are:
1. Addressing urban poverty alleviation
through gainful employment to the
urban unemployed or underemployed
poor by encouraging them to set up selfemployment ventures (individual or
group), with support for their
sustainability; or undertake wage
employment;
2. Supporting skill development and
training programmes to enable the urban
poor have access to employment
opportunities opened up by the market
or undertake self-employment; and

3. Empowering the community to tackle

the issues of urban poverty through
suitable self-managed community
structures like Neighbourhood Groups
(NHGs), Neighbourhood Committees
(NHC), Community Development
Society (CDS), etc.

The target population under SJSRY is the

urban poor - those living below the poverty
line, as defined by the Planning Commission
from time to time.

SJSRY will have five major components,

namely1. Urban Self Employment Programme
(USEP): This Component will be having
two sub-components:
(a) Assistance to individual urban poor
beneficiaries for setting up gainful
self-employment ventures [Loan &
Subsidy]
(b) T e c h n o l o g y / m a r k e t i n g /
infrastructure/ knowledge & other
support provided to the urban poor
in setting up their enterprises as well
as marketing their products.
2. Urban Women Self-help Programme
(UWSP): This Component will be having
two sub-components:
(a) Assistance to groups of urban poor
women for setting up gainful selfemployment ventures- UWSP (Loan
& Subsidy)
(b) Revolving Funds for Self-Help
Groups (SHGs) / Thrift & Credit
Societies (T&CSs) formed by the
urban poor women - UWSP
(Revolving Fund).
3. Skill Training for Employment
Promotion amongst Urban Poor (STEPUP): This component of SJSRY will focus
on providing assistance for skill
formation/up-gradation of the urban
poor to enhance their capacity to
undertake self-employment as well as
access better salaried employment.
4. Urban Wage Employment Programme
(UWEP): This programme seeks to
provide
wage
employment
to
PROGRAMMES & POLICIES

beneficiaries living below the poverty line

within the jurisdiction of urban local
bodies by utilising their labour for
construction of socially and economically
useful public assets. These assets may
be Community Centres, Stormwater
Drains, Roads, Night Shelters, Kitchen
Sheds in Primary Schools under Midday Meal Scheme and other community
requirements like Parks, Solid Waste
Management facilities, as decided by the
community structures themselves. The
Urban Wage Employment Programme
(UWEP) will be applicable only to
towns/ cities with population upto 5
Lakhs, as per the 1991 Census.

The unique experiment of building

confidence of the youth by developing skill
and positive attitude among them through
dedicated training was found effective. The
model has proved very successful in
building the morale of the youth and
empowering them to set up self-employment
ventures in their own places. The project
reported a success rate of 66 per cent.

RUDSETI model was appreciated by

Government of India, State Governments,
SIDBI, and NABARD. Replication of this
model was recommended to tackle the
unemployment problem successfully and
developing entrepreneurship.

5. Urban Community Development

Network (UCDN): SJSRY shall rest on
the
foundation
of
community
development and empowerment. Rather
than relying on the traditional method
of top-down implementation, the
Scheme shall rely on establishing and
nurturing community organizations and
structures that facilitate sustained urban
poverty alleviation. Towards this end,
community
organizations
like
Neighbourhood Groups (NHGs),
Neighbourhood Committees (NHCs),
and Community Development Societies
(CDSs) shall be set up in the target areas.

Significant points about RSETIs:

Funding under SJSRY will be shared

between the Centre and the States in the
ratio of 75:25. For Special Category States
(Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura, Jammu & Kashmir, Himachal
Pradesh and Uttarakhand) this ratio will
be 90:10 between the Centre and States.

10. RURAL
SELF
EMPLOYMENT
TRAINING INSTITUTE (RSETI)

Government and Non government agencies

have taken certain initiatives and
implementing many schemes to promote
micro enterprises. However, the efforts seem
to be inadequate against the gigantic
unemployment problem. An innovative
initiative was taken way back in the year
1982 jointly by Sri Dharmasthala
Manjunatheshwara Educational Trust,
Syndicate Bank, Canara Bank to motivate
unemployed youth to take up selfemployment as an alternative career.

PROGRAMMES & POLICIES

Rural BPL youth will be identified and

trained for self-employment.

The trainings offered will be demand driven.

Area in which training will be provided to

the trainee will be decided after assessment
the candidate's aptitude.

Hand holding support will be provided for

assured credit linkage with banks.

Escort services will be provided for at least

for two years soas to ensure sustainability
of micro enterprise trainees.

The trainees will be provided intensive

short-term residential self-employment
training programmes with free food and
accommodation.

It will be set up in each district of the

country for basic and skill development
training of rural BPL youth to enable them
to undertake micro-enterprises and wage
employment.

The Government has approved 215 RSETIs

out of which funds have been released to
149. During 2009-10, approximately 77,000
rural youth (including 54,000 BPL youth)
were trained in 99 RSETIs functioning in
the country.

11. JAWAHAR LAL NEHRU NATIONAL

URBAN
RENEWAL
MISSION
(JNNURM)

The JNNURM, a seven year programme

launched in December 2005, provides
financial assistance to cities for

and Governance. The main thrust of the

Sub-Mission will be on infrastructure
projects relating to water supply and
sanitation, sewerage, solid waste
management, road network, urban
transport and redevelopment of old city
areas with a view to upgrading
infrastructure therein, shifting industrial
and commercial establishments to
conforming areas, etc.

infrastructure, housing development, and

capacity development.

Mission Statement: The aim is to encourage

reforms and fast track planned
development of identified cities. Focus is to
be on efficiency in urban infrastructure and
service delivery mechanisms, community
participation, and accountability of ULBs/
Parastatal agencies towards citizens.

2. Sub-Mission for Basic Services to the

Urban Poor: This will be administered
by the Ministry of Urban Employment
and Poverty Alleviation through the
Sub-Mission Directorate for Basic
Services to the Urban Poor. The main
thrust of the Sub- Mission will be on
integrated development of slums
through projects for providing shelter,
basic services and other related civic
amenities with a view to providing
utilities to the urban poor.

Objectives of the Mission

1. The objectives of the JNNURM are to
ensure that the following are achieved
in the urban sector;
2. Focused attention to integrated
development of infrastructure services
in cities covered under the Mission;
3. Establishment of linkages between
assetcreation and asset-management
through a slew of reforms for long-term
project sustainability;
4. Ensuring adequate funds to meet the
deficiencies in urban infrastructural
services;
5. Planned development of identified cities
including peri-urban areas, outgrowths
and urban corridors leading to dispersed
urbanisation;
6. Scale-up delivery of civic amenities and
provision of utilities with emphasis on
universal access to the urban poor;
7. Special focus on urban renewal
programme for the old city areas to
reduce congestion; and
8. Provision of basic services to the urban
poor including security of tenure at
affordable prices, improved housing,
water supply and sanitation, and
ensuring delivery of other existing
universal services of the government for
education, health and social security.

The Mission shall comprise two SubMissions, namely:

1. Sub-Mission for Urban Infrastructure
and Governance: This will be
administered by the Ministry of Urban
Development through the Sub- Mission
Directorate for Urban Infrastructure

In addition to this, it also has two further

components:
1. The Sub-Mission for Urban Infrastructure
Development of Small & Medium Towns
(UIDSSMT) administered by the Ministry
of Urban Development, with a focus on
subsuming the schemes of Integrated
Development of Small and Medium Towns
(IDSMT) and Accelerated Urban Water
Supply Programme (AUWSP) which are
already in existence and which aim at
planned urban infrastructural improvement
in towns and cities under its purview.
2. The Sub-Mission for Integrated Housing and
Slum Development Programme (IHSDP)
administered by Ministry of Housing and
Urban Poverty Alleviation (MHUPA) was
envisaged and brought into effect in 199394 in accordance with providing the entire
population with safe and adequate water
supply facilities. Program mainly
implemented in owns having population
less than 20,000 as per 1991 Census.

The objectives of the Mission shall be met

through the adoption of the following
strategy:
1. Preparing City Development Plan:
Every city will be expected to formulate
PROGRAMMES & POLICIES

a City Development Plan (CDP)

indicating policies, programmes and
strategies, and financing plans.
2. Preparing Projects: The CDP would
facilitate identification of projects. The
Urban Local Bodies (ULBs) / parastatal
agencies will be required to prepare
Detailed Project Reports (DPRs) for
undertaking projects in the identified
spheres. It is essential that projects are
planned in a manner that optimises the
life-cycle cost of projects. The life-cycle
cost of a project would cover the capital
outlays and the attendant O&M costs
to ensure that assets are in good working
condition. A revolving fund would be
created to meet the O&M requirements
of assets created, over the planning
horizon. In order to seek JNNURM
assistance, projects would need to be
developed in a manner that would
ensure and demonstrate optimisation of
the life-cycle costs over the planning
horizon of the project.
3. Release and Leveraging of Funds: It is
expected that the JNNURM assistance
would serve to catalyse the flow of
investment into the urban infrastructure
sector across the country. Funds from
the Central and State Government will
flow directly to the nodal agency
designated by the State, as grants-in-aid.
The funds for identified projects across
cities would be disbursed to the ULB/
Parastatal agency through the
designated State Level Nodal Agency
(SLNA) as soft loan or grant-cum-loan
or grant. The SLNA / ULBs in turn
would leverage additional resources
from other sources.

Evaluation of the experience of

implementation of the Mission would be
undertaken before the commencement of
Eleventh Five Year Plan and if necessary,
the program calibrated suitably.

1. Modern and transparent budgeting,

accounting, financial management
systems, designed and adopted for all
urban service and governance functions
2. City-wide framework for planning and
governance will be established and
become operational
3. All urban residents will be able to obtain
access to a basic level of urban services
4. Financially self-sustaining agencies for
urban governance and service delivery
will be established, through reforms to
major revenue instruments
5. Local services and governance will be
conducted in a manner that is
transparent and accountable to citizens
6. E-governance applications will be
introduced in core functions of ULBs/
Parastatal resulting in reduced cost and
time of service delivery processes.
12. AFFORDABLE
HOUSING
PARTNERSHIP (AHIP)

The duration of the Mission would be seven

years beginning from the year 2005-06.

PROGRAMMES & POLICIES

IN

The Scheme of Affordable Housing in

Partnership aims at operationalising the
strategy envisaged in the National Urban
Housing & Habitat Policy (NUHHP) 2007,
of promoting various types of public-private
partnerships - of the government sector
with the private sector, the cooperative
sector, the financial services sector, the state
parastatals, urban local bodies, etc. - for
realizing the goal of affordable housing for
all. It intends to provide major stimulus to
economic activities through affordable
housing for the creation of employment,
especially for the construction workers and
other urban poor who are likely to be
amongst the most vulnerable groups in
recession.

It also targets the creation of demand for a

large variety of industrial goods through the

4. Incorporating
Private
Sector
Efficiencies: In order to optimise the lifecycle costs over the planning horizon,
private sector efficiencies can be
inducted in development, management,
implementation and financing of
projects, through Public Private
Partnership (PPP) arrangements.

Expected Outcomes of the JNNURM

multiplier effect of housing on other

economic activities.

This Scheme is a part of the Jawaharlal

Nehru National Urban Renewal Mission
(JNNURM) and takes into account the
experience of implementing Basic Services
to the Urban Poor (BSUP) and Integrated
Housing & Slum Development Programme
(IHSDP) for three years, and the assessment
that shortfall in response from BSUP towns
is a factor of the lack of urban land
availability for expansion of cities, and after
consultation with States/UTs who have
agreed that the responsibility of making
urban land available at affordable rates must
rest with them in order to reduce the acute
shortages of housing in urban areas.
The basic aim of the Scheme is to provide
stimulus to economic activities through
affordable housing programmes in
partnership. Its immediate objective is
employment generation to the urban poor,
especially construction workers, where
adverse impact of current economic
downturn is being experienced.
The scheme will apply mainly to the 65
BSUP cities, where shortages of land for
housing are driving unplanned growth and
rising home prices and rentals to
unsustainable levels.

13. RAJIV AWAS YOJANA (RAY)

With an aim of creating a slum-free India,

government has launched phase-1 of Rajiv
Awas Yojana (RAY) to facilitate affordable
housing for slum dwellers.

The Centre would provide financial

assistance to States willing to assign property
rights to slum dwellers for provision of
shelter and basic civic and social services
for slum re-development and for creation
of affordable housing stock under the RAY
scheme.

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The scheme will cover about 250 cities,

mostly with population of more than one
lakh across the country by the end of 12th
Plan (2017). The scheme will progress at
the pace set by the States.
The Centre will bear 50 per cent of the cost
of slum re-development. To encourage
creation of affordable housing stock, the

existing schemes of Affordable Housing in

Partnership and Interest Subsidy Scheme for
Housing the Urban Poor have been
dovetailed into RAY.

In order to encourage private sector

participation in slum re-development,
Central assistance can be used by the States
and cities towards viability gap funding.

Credit enablement of the urban poor and

the flow of institutional finance for
affordable housing is an important
component of the scheme. The government
has agreed to establish a mortgage risk
guarantee fund to facilitate lending the
urban poor for housing purposes with an
initial corpus of Rs. 1000 crore.

The scheme has been designed on the basis

of experience of the Jawaharlal National
Urban Renewal Mission (JNNURM)
submission of Basic Services to the Urban
Poor (BSUP) and the Integrated Housing
and Urban Development Programme
(HSDP).

Under these schemes, government had

sought to take action for inclusive urban
growth by enabling re-development of slums
with basic amenities and decent housing
with security of tenure.

14. BHARAT NIRMAN

Bharat Nirman, a programme to build rural

infrastructure, was launched by the
Government of India in 2005 to be
implemented in a period of four years from
2005-06 to 2008-09. It is an important
initiative for reducing the gap between rural
and urban areas and improving the quality
of life of people in rural areas.

Phase I of the programme was implemented

in the period 2005-06 to 2008-09. Phase II is
being implemented from 2009-10 to 2011-12.

This programme has six components,

namely rural housing, irrigation potential,
drinking water, rural roads, electrification,
and rural telephony. The targets for these
components are as follows:
1. Water Supply: Cover approximately 55
thousand uncovered habitations and
provide safe drinking water to
approximately 2.16 lakh villages affected
by poor water quality.
PROGRAMMES & POLICIES

2. Housing: Provide additional 1.2 crore

houses at the rate of 24 lakh houses each
year to be built by funds allocated to
the homeless through Panchayats.
3. Telecommunication and Information
Technology: Increase rural tele-density
to 40% and provide broadband
connectivity and Bharat Nirman Seva
Kendras to all 2.5 lakh Panchayats.
Under the Bharat Nirman Programme,
Rural teledensity of at least 40% by 2014,
and Broadband coverage of all 2,50,000
village panchayats & Setting up of
Bharat Nirman Common Service Centers
at Panchayat level by 2012 is to be
achieved.
4. Roads: Provide road connections to
remaining 23,000 villages approximately
with population of 1000 or 500 in case
of hilly or tribal areas.
5. Electrification: Provide electricity to
remaining 40,000 villages approximately
and connections to about 1.75 crore poor
households. The revised Bharat Nirman
target for RGGVY is to electrify 1 lakh
villages and to provide free electricity
connections to 175 lakh BPL households
by March 2012. The Bharat Nirman
targets for RGGVY have been achieved
by 31st December, 2011 well before
March, 2012.
6. Irrigation: 6.5 million hectares brought
under assured irrigation till 2009.
Remaining 3.5 million hectares to be
completed by 2012.
15. NATIONAL RURAL
MISSION (NRLM)

LIVELIHOOD

The National Rural Livelihood Mission

(NRLM) was established in June 2010 by
the Government of India, to be implemented
in all States of the country to establish
efficient and sustainable institutions of the
rural poor that enable them to increase
household income through livelihood
enhancements and improved access to
financial and selected public services.
Mission Statement: "To reduce poverty
through building strong grassroots
institutions of the poor. These institutions

PROGRAMMES & POLICIES

enable the poor households to access gainful

self employment and skilled wage
employment opportunities, resulting in
appreciable increase in their incomes, on a
sustainable basis".

Guiding Principles of NRLM

1. Poor have a strong desire to come out
of poverty, and, have innate capabilities
2. Social mobilization and building strong
institutions of the poor is critical for
unleashing their capabilities
3. An external dedicated and sensitive
support structure is required to induce
social mobilization

The core values which will guide all the

activities under NRLM are as follows:
1. Inclusion of the Poorest
2. Transparency
3. Accountability
4. Equity - to the disadvantaged, esp.
women and vulnerable groups
5. Partnerships; and
6. Ownership and key role of the poor in
all stages - planning, implementation
and monitoring

Key Features of NRLM

1. Sensitive Support Structure of National
Rural Livelihood Mission:
2. Universal Social Mobilization
3. Promotion of Institutions of the Poor
4. Demand Driven
5. Training and Capacity building
6. Revolving Fund and Capital Subsidy
7. Universal Financial Inclusion
8. Provision of Interest Subsidy
9. Infrastructure Creation and Marketing
support
10. Skills and Placement Projects
11. Linkages with PRIs

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