SPEECH ON RURAL DEVELOPMENT

 



          Mr. Chairman, Sir, I am grateful to all the honourable Members of the House, who expressed their valuable thoughts regarding the Demands for Grants of the Ministry of Rural Development. They have given very important suggestions. They also referred to the drawbacks in the implementation of various programmers of my Ministry. In my reply, I would like to respond to some of these issues. I would like to assure the honourable members that necessary action would be taken immediately on all the suggestions given by the honourable Members.

         Under the leadership of Shri Narsimha Rao, the Government has taken many important steps in the field of rural development in the past nine months. The Government is committed to removing poverty and accelerating rural development. Our policies include the planning and implementation of programmes  at the local level, the involvement of voluntary agencies in development work and stress  on proving maximum benefits to the poorest of the poor. It is my firm belief that if the state Chief Ministers follow the path  shown by the Prime Minister and answer the important task of rural development themselves, then the rural development programmes would certainly get a boost.

         The Rural Development Policy of our Ministry has three major components-poverty alleviation and provision of minimum needs including potable water facilities and motorable roads, and land reforms and programmers related to rectification of land records. Apart form this, we also have special programmes for drought affected areas and desert areas which are facing extreme resource shortage.

        The Integrated Rural Development Programme is such a scheme which has direct link with the people living below the poverty line. This programme envisages the policy of providing grants from the Government or providing loans from financial institutions to selected families below the poverty line. This programme envisages the policy of providing income generating assets by way of loans from financial institutions to selected families below the poverty line. Under this programme the families having an annual income upto Rs. 4800 during the Seventh Five Year Plan and during 1990-91 and 1991-92 were considered as the targeted group. The objective of this programs was to ensure that the families provided with income generating assist would get opportunities of self-employment which will boost the income of these families and help them cross the poverty line. Now, a decision has been taken to redefine the poverty line.

          In the Eighth Five Year Plan, the poverty line in the rural sector would get   fixed at  an annual income level of Rs. 11,000 for a family. The targeted group would be the families having an annual income up to Rs. 8500. The experience gained during the implementation of poverty alleviation programmes has brought to light the fact that in the case of these programmes the selection of the targeted group is required to be made very carefully and properly. The State Governments have been asked to select the families living below then new poverty line.

         In 1991, a provision was made according to which at least 40 percent of the beneficiaries should be women. Earlier, the percentage of beneficiaries was 30 in the case of Scheduled  Castes and Scheduled Tribes was 40 percent. The said percentage has now been increase to 50 from 1990-91. At present, both the Scheduled Castes and the Scheduled Tribes get a subsidy equal to 50 percent of the load amount, subject to the maximum ceiling of Rs. 5000.

         At present, this programme is being evaluated through a large number of non-Governmental organisations. It has been found that 28 percent, of the beneficiaries have risen above the poverty line. Even now 33 percent of  rural population is still living below the poverty line.  Keeping this in view, we will continue to give importance to our objective of extending  assistance to the poorest of the poor under this programme.

         The second aspect of  this question pertains to the quantum of loan and subsidy that is to be provided. The subsidy amount of Rs. 4,000 and Rs. 5000 was fixed about  ten years back. Keeping in view the limitation of the Budget, our Government will consider the question of raising this amount.

        To eliminate the role of middlemen, the Government have issued orders to abolish assets purchase system under the integrated Rural Development Programme in 50 percent blocks of the country through purchase committees. Favourable reports have been received regarding the new system. We will consider to implement it in all the blocks of the country after reviewing it.

         We have already introduced Group insurance Scheme for all the beneficiaries selected under the integrated Rural Development Programme. After the death of the beneficiary, his successor will be entitled to get an insurance amount of Rs. 3,000. The State Government have been asked to take stringent steps under this programme to curb corruption whenever it comes to light.

 

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