ECONOMICS ASSIGNMENT

GOVERNMENT
INITIATIVES

Group Members:
1. PARAG SANJAY DARWADE
Div.: T.Y.B.Com. – ‘A’
Roll No.: 76

2. MANOMAN GANDHILE
Div.: T.Y.B.Com. – ‘A’
Roll No.: 30
UDAN SCHEME:
The Government of India has acknowledged the contribution of the scheme and has identified 21 st October
as UDAN Day, the day on which the scheme document was first released.
Key Points
Launch:
Ude Desh Ka Aam Naagrik (UDAN) was launched as a Regional Connectivity Scheme (RCS) under
the Ministry of Civil Aviation in 2016.
Objectives:
To develop the regional aviation market.
To provide affordable, economically viable and profitable air travel on regional routes to
the common man even in small towns.
Features:
The scheme envisages providing connectivity to un-served and underserved airports of the
country through the revival of existing airstrips and airports. The scheme is operational for a period
of 10 years.
Under-served airports are those which do not have more than one flight a day, while unserved
airports are those where there are no operations.
Financial incentives from the Centre, state governments and airport operators are extended to
selected airlines to encourage operations from unserved and under-served airports and keep
airfares affordable.
Achievements So Far:
o Till date, 387 routes and 60 airports have been operationalised out of which 100 routes are
awarded in the Northeast alone.
o Under the KRISHI UDAN Scheme, 16 airports have been identified to enhance the export
opportunities of the Northeast region establishing dual benefits of enhancement of cargo
movements and exports.
UDAN 1.0
 Under this phase, 5 airlines companies were awarded 128 flight routes to 70 airports (including 36
newly made operational airports).
UDAN 2.0
 In 2018, the Ministry of Civil Aviation announced 73 underserved and unserved airports.
 For the first time, helipads were also connected under phase 2 of the UDAN scheme.
UDAN 3.0
 Inclusion of Tourism Routes under UDAN 3 in coordination with the Ministry of Tourism.
 Inclusion of Seaplanes for connecting Water Aerodromes.
 Bringing in several routes in the North-East Region under the ambit of UDAN.
UDAN 4.0
 In 2020, 78 new routes were approved under the 4th round of RCS-UDAN to further enhance the
connectivity to remote & regional areas of the country.
 Kavaratti, Agatti, and Minicoy islands of Lakshadweep will be connected by the new routes of UDAN
4.0.
UDAN 4.1
 The UDAN 4.1 focuses on connecting smaller airports, along with special helicopter and seaplane
routes.
  Some new routes have been proposed under the Sagarmala Seaplane services.
Sagarmala Seaplane Services is an ambitious project under the Ministry of Ports, Shipping and
Waterways with potential airline operators.
KRISHI UDAN
 It was launched by the Ministry of Civil Aviation in August 2020, on international and national
routes to assist farmers in transporting agricultural products so that it improves their value
realisation.
International UDAN
 Under International UDAN, the plan is to connect India’s smaller cities directly to some key foreign
destinations in the neighbourhood.

Comments:
From the UDAN Scheme we can observe that this scheme provides connectivity to un-served and
underserved airports of the country through the revival of existing airstrips and airports. It mainly focuses
on affordable, economically viable and profitable air travel on regional routes to the common man even in
small towns. Till this date, 387 routes and 60 airports have been operationalised out of which 100 routes
are awarded in the Northeast alone and 16 airports have been identified to enhance the export
opportunities of the Northeast region establishing dual benefits of enhancement of cargo movements and
exports.

Bharatmala Pariyojana:
Bharatmala Pariyojana is a new umbrella program for the highways sector that focuses on optimizing
efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps
through effective interventions like development of Economic Corridors, Inter Corridors and Feeder
Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal
and Port connectivity roads, and Green-field expressways.
The announcement of the mammoth scheme was done by Shri Nitin Gadkari, in the presence of the Prime
Minister Shri Narendra Modi. The implementation of a pan-nation scheme to improve the road network
was the idea of the PM. All key aspects of the scheme will be managed by the Road Transport and
Highways Ministry of the country.
Highlights of Bharatmala Pariyojana
 Improvement in efficiency of existing corridors through development of Multimodal Logistics Parks
and elimination of choke point
 Enhance focus on improving connectivity in Northeast and leveraging synergies with Inland
Waterways
 Emphasis on use of technology & scientific planning for Project Preparation and Asset Monitoring
 Delegation of powers to expedite project delivery - Phase I to complete by 2022
 Improving connectivity in the Northeast
KEY FEATURES OF THE SCHEME
 Improving the quality of roads - The launch of the scheme has been done for bring a new wave of
development in the nation in the form of well-maintained and developed roads. Under this project,
the construction of roads, in all parts of the nation will be undertaken.
 Total road construction - As per the draft of the scheme, government and the ministry will strive to
complete new roads, which will add up to a whopping 34, 800 kms.
 Integrated scheme - The Bharatmala is the name that is given to the road development, and it will
include many other related schemes as well. With the completion of all the schemes, the overall
success of the scheme will be guaranteed.
 Total tenure of the program -The central government has the plans of finishing the scheme within
a span of five years. Thus, all is set for finishing the first phase before the end of 2022.
 Segmentation in phases - Due to the sheer magnitude and spread of the scheme, it will be divided
into seven distinct phases. As of now, the first phase in under construction.
 Constriction daily - To finish the first phase in time, the respective department has made efforts of
constructing at least 18 km of path daily. To beat the clock, continued efforts are being made to
raise it to 30 km/day.
 Different categories of road construction - It has been highlighted in the official draft of the scheme
that to provide better connectivity, the construction of various categories of roads will be
undertaken.
 Multi-source of finding - One source will not be enough for funding a mammoth project. Thus, the
government will have to depend on other sources for generating adequate money to meet the
expenses.

Budget Allocation
A total of around 24,800 kms are being considered in Phase I of Bharatmala. In addition, Bharatmala
Pariyojana phase -I also includes 10,000 kms of balance road works under NHDP, taking the total to 34,800
kms at an estimated cost of Rs.5,35,000 crore. Bharatmala Phase I - is to be implemented over a five-year
period of i.e., 2017-18 to 2021-22.

Comments:
The Bharatmala scheme is a new umbrella program for the highways sector that focuses on optimizing
efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps
through effective interventions like development of Economic Corridors, Inter Corridors and Feeder
Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal
and Port connectivity roads, and Green-field expressways. The respective department has made efforts of
constructing at least 18 km of path daily. To beat the clock, continued efforts are being made to raise it to
30 km/day.
Smart Cities Mission:
Smart Cities Mission was launched by the Hon’ Prime Minister on 25 June 2015. The main objective of the
Mission is to promote cities that provide core infrastructure, clean and sustainable environment and give a
decent quality of life to their citizens through the application of ‘smart solutions’. The Mission aims to drive
economic growth and improve quality of life through comprehensive work on social, economic, physical,
and institutional pillars of the city. The focus is on sustainable and inclusive development by creation of
replicable models which act as lighthouses to other aspiring cities. 100 cities have been selected to be
developed as Smart Cities through a two-stage competition.
The Mission is operated as a Centrally Sponsored Scheme. Central Government will give financial support
to the extent of Rs. 48,000 crores over 5 years i.e., on an average Rs.100 crore per city per year.  An equal
amount on a matching basis is to be provided by the State/ULB.  Additional resources are to be raised
through convergence, from ULBs’ own funds, grants under Finance Commission, innovative finance
mechanisms such as Municipal Bonds, other government programs and borrowings. Emphasis has been
given on the participation of private sector through Public Private Partnerships (PPP). Citizens’ aspirations
were captured in the Smart City Proposals (SCPs) prepared by the selected cities. Aggregated at the
national level, these proposals contained more than 5,000 projects worth over Rs. 2,00,000 crores, of
which 45 percent is to be funded through Mission grants, 21 percent through convergence, 21 percent
through PPP and rest from other sources.  

Comments:
The Smart Cities Mission aims to drive economic growth and improve quality of life through
comprehensive work on social, economic, physical, and institutional pillars of the city. The focus is on
sustainable and inclusive development by creation of replicable models which act as lighthouses to other
aspiring cities. Central Government will give financial support to the extent of Rs. 48,000 crores over 5
years i.e., on an average Rs.100 crore per city per year. Emphasis has been given on the participation of
private sector through Public Private Partnerships (PPP).

MGNREGA
 The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known as
Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is Indian legislation
enacted on August 25, 2005. The MGNREGA provides a legal guarantee for one hundred days of
employment in every financial year to adult members of any rural household willing to do public
work-related unskilled manual work at the statutory minimum wage. The Ministry of Rural
Development (MRD), Govt of India is monitoring the entire implementation of this scheme in
association with state governments
 This act was introduced with an aim of improving the purchasing power of the rural people,
primarily semi or un-skilled work to people living below poverty line in rural India. It attempts to
bridge the gap between the rich and poor in the country. Roughly one-third of the stipulated work
force must be women.
 Adult members of rural households submit their name, age, and address with photo to the Gram
Panchayat. The Gram Panchayat registers households after making enquiry and issues a job card.
The job card contains the details of adult member enrolled and his /her photo. Registered person
 can apply for work in writing (for at least fourteen days of continuous work) either to Panchayat or
to Programme Officer.
 The Panchayat/Programme officer will accept the valid application and issue dated receipt of
application, letter providing work will be sent to the applicant and displayed at Panchayat office.
The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
Key facts that users should know about MGNREGA
1. MGNREGA guarantees hundred days of wage employment in a financial year, to a rural household
whose adult members volunteer to do unskilled manual work.
2. Individual beneficiary-oriented works can be taken up on the cards of Scheduled Castes and
Scheduled Tribes, small or marginal farmers or beneficiaries of land reforms or beneficiaries under
the Indira Awaas Yojana of the Government of India.
3. Within 15 days of submitting the application or from the day work is demanded, wage employment
will be provided to the applicant.
4. Right to get unemployment allowance in case employment is not provided within fifteen days of
submitting the application or from the date when work is sought.
5. Receipt of wages within fifteen days of work done.
6. Variety of permissible works which can be taken up by the Gram Panchayaths.
7. MGNREGA focuses on the economic and social empowerment of women.
8. MGNREGA provides “Green” and “Decent” work.
9. Social Audit of MGNREGA works is mandatory, which lends to accountability and transparency.
10. MGNREGA works address the climate change vulnerability and protect the farmers from such risks
and conserve natural resources.

Implementation Status
 The scheme was introduced in 200 districts during financial year 2006-07 and 130 districts during
the financial year 2007-08
 In April 2008 NREGA expanded to entire rural area of the country covering 34 States and Union
Territories, 614 Districts, 6,096 Blocks and 2.65 lakhs Gram Panchayat.
 The scheme now covers 648 Districts, 6,849 Blocks and 2,50,441 Gram Panchayats in the financial
year 2015-16.

Comments:
The MGNREGA provides a legal guarantee for one hundred days of employment in every financial year to
adult members of any rural household willing to do public work-related unskilled manual work at the
statutory minimum wage. It attempts to bridge the gap between the rich and poor in the country. Roughly
one-third of the stipulated work force must be women.

Pradhan Mantri Gram Sadak Yojana:

The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a nationwide plan in India to provide good all-weather
road connectivity to unconnected villages. Of 178,000 (1.7 lakh) habitations with a population of above 500
in the plains and above 250 in the hilly areas planned to be connected by all-weather roads, 82% were
already connected by December 2017 and work-in-progress on the remaining 47,000 habitations was on-
track for completion by March 2019.
This Centrally Sponsored Scheme was introduced in 2000 by the then-prime minister of India Late Shri Atal
Bihari Vajpayee. The Assam Tribune has reported that the scheme has started to change the lifestyle of
many villagers as it has resulted in new roads and upgrade of certain inter-village routes in Manipur.
Aim:
The aim was to provide roads to all villages
1. with a population of 1000 persons and above by 2003
2. with a population of 500 persons and above by 2007
3. in hill states, tribal and desert area villages with a population of 500 persons and above by 2003
4. in hill states, tribal and desert area villages with a population of 250 persons and above by 2007.

Progress
Of 178,000 (1.7 lakh) habitations with a population of above 500 in the plains and above 250 in the hilly
areas planned to be connected by all-weather roads, 55% (97,838) were connected by March 2014, 82%
(80% or 131,000 or 1.3 lakh under the PMGSY and 2% or 14,620 under state govt schemes) were
connected by December 2017. Of the remaining 47,000, work on all is in progress except for 1700 which
will be approved by the end of December 2017 and 100% connectivity will be achieved by March 2019 (16
December 2017 update). Pending work included harsh terrain states of Assam, Jammu and Kashmir and
Uttarakhand as well as left-wing Naxalite–Maoist extremism infested state of Chhattisgarh, some districts
of Jharkhand and Malkangiri district of Odisha.
Impact
Scheme has started to change the lifestyle of many villagers with new roads and upgrades, such as in
Manipur. In a research paper, by Asher and Novosad (2020) the effects of the road construction program
are described as follows: "Four years after road construction, the main effect of new feeder roads is to
facilitate the movement of workers out of agriculture. However, there are no major changes in agricultural
outcomes, income, or assets. Employment in village firms expands only slightly. Even with better market
connections, remote areas may continue to lack economic opportunities."

Comment:
The PMGSY is a nationwide plan in India to provide good all-weather road connectivity to unconnected
villages. Scheme has started to change the lifestyle of many villagers with new roads and upgrades, such as
in Manipur. 178,000 (1.7 lakh) habitations with a population of above 500 in the plains and above 250 in
the hilly areas planned to be connected by all-weather roads, 55% (97,838) were connected by March
2014, 82% (80% or 131,000 or 1.3 lakh under the PMGSY and 2% or 14,620 under state govt schemes) were
connected by December 2017.

UJJWALA Yojana:
In May 2016, Ministry of Petroleum and Natural Gas (MOPNG), introduced the ‘Pradhan Mantri Ujjwala
Yojana’ (PMUY) as a flagship scheme with an objective to make clean cooking fuel such as LPG available to
the rural and deprived households which were otherwise using traditional cooking fuels such as firewood,
coal, cow-dung cakes etc. Usage of traditional cooking fuels had detrimental impacts on the health of rural
women as well as on the environment.
The scheme was launched on 1st May 2016 in Ballia, Uttar Pradesh by Hon’ble Prime Minister of India, Shri.
Narendra Modi. The target under the scheme was to release 8 Crore LPG Connections to the deprived
households by March 2020. On 7th September 2019, Hon’ble Prime Minister of India handed over the 8th
Crore LPG connection in Aurangabad, Maharashtra. The release of 8 Crore LPG connections under the
scheme has also helped in increasing the LPG coverage from 62% on 1st May 2016 to 99.8% as on 1st April
2021. Under the Union Budget for FY 21-22, provision for release of additional 1 Crore LPG connections
under the PMUY scheme has been made. In this phase, special facility has been given to migrant families.

Comments:
The Ujjwala Scheme was launched with the objective to make clean cooking fuel such as LPG available to
the rural and deprived households which were otherwise using traditional cooking fuels such as firewood,
coal, cow-dung cakes etc. The release of 8 Crore LPG connections under the scheme has also helped in
increasing the LPG coverage from 62% on 1st May 2016 to 99.8% as on 1st April 2021. Under the Union
Budget for FY 21-22, provision for release of additional 1 Crore LPG connections under the PMUY scheme
has been made.

Right To Education:
The Right of Children to Free and Compulsory Education Act or Right to Education Act (RTE), is an Act of the
Parliament of India enacted on 4 August 2009, which describes the modalities of the importance of free
and compulsory education for children between 6 and 14 in India under Article 21a of the Indian
Constitution. India became one of 135 countries to make education a fundamental right of every child
when the Act came into force on 1 April 2010.
 
The Act makes education a fundamental right of every child between the ages of 6 and 14 and specifies
minimum norms in elementary schools. It requires all private schools to reserve 25% of seats to children
(to be reimbursed by the state as part of the public-private partnership plan). Kids are admitted into
private schools based on economic status or caste-based reservations. It also prohibits all unrecognised
schools from practice and makes provisions for no donation or capitation fees and no interview of the child
or parent for admission. The Act also provides that no child shall be held back, expelled, or required to pass
a board examination until the completion of elementary education. There is also a provision for special
training of school dropouts to bring them up to par with students of the same age.
 
The RTE Act requires surveys that will monitor all neighbourhoods, identify children requiring education,
and set up facilities for providing it. The World Bank education specialist for India, Sam Carlson, has
observed: "The RTE Act is the first legislation in the world that puts the responsibility of ensuring
enrolment, attendance and completion on the Government. It is the parents' responsibility to send the
children to schools in the US and other countries."
 
The Right to Education of persons with disabilities until 18 years of age is laid down under a separate
legislation - the Persons with Disabilities Act. Several other provisions regarding improvement of school
infrastructure, teacher-student ratio and faculty are made in the Act.
 
Education in the Indian constitution is a concurrent issue and both centre and states can legislate on the
issue. The Act lays down specific responsibilities for the centre, state, and local bodies for its
implementation. The states have been clamouring that they lack financial capacity to deliver education of
appropriate standard in all the schools needed for universal education. Thus, it was clear that the central
government (which collects most of the revenue) will be required to subsidise the states.
 
A committee set up to study the funds requirement and funding initially estimated that INR 1710 billion or
1.71 trillion (US$38.2 billion) across five years was required to implement the Act, and in April 2010 the
central government agreed to sharing the funding for implementing the law in the ratio of 65 to 35
between the centre and the states, and a ratio of 90 to 10 for the north-eastern states. However, in mid-
2010, this figure was upgraded to INR 2310 billion, and the centre agreed to raise its share to 68%. There is
some confusion on this, with other media reports stating that the centre's share of the implementation
expenses would now be 70%. At that rate, most states may not need to increase their education budgets
substantially.
 
A critical development in 2011 has been the decision taken in principle to extend the right to education till
Class X (age 16) and into the preschool age range. The CABE committee is in the process of looking into the
implications of making these changes.
 
The Ministry of HRD set up a high-level, 14-member National Advisory Council (NAC) for implementation of
the Act. The members included Kiran Karnik, former president of NASSCOM; Krishna Kumar, former
director of the NCERT; Mrinal Miri, former vice-chancellor of North-East Hill University; Yogendra Yadav –
social scientist. India
Sajit Krishnan Kutty, Secretary of The Educators Assisting Children's Hopes (TEACH) India; Annie Namala, an
activist and head of Centre for Social Equity and Inclusion; and Aboobacker Ahmad, vice-president of
Muslim Education Society, Kerala.
 
Comments:
The Right to Education Act was implemented to the release of 8 Crore LPG connections under the scheme
has also helped in increasing the LPG coverage from 62% on 1st May 2016 to 99.8% as on 1st April 2021.
Under the Union Budget for FY 21-22, provision for release of additional 1 Crore LPG connections under
the PMUY scheme has been made. The Right to Education of persons with disabilities until 18 years of age
is laid down under a separate legislation - the Persons with Disabilities Act. A committee set up to study the
funds requirement and funding initially estimated that INR 1710 billion or 1.71 trillion (US$38.2 billion)
across five years was required to implement the Act, and in April 2010 the central government agreed to
sharing the funding for implementing the law in the ratio of 65 to 35 between the centre and the states,
and a ratio of 90 to 10 for the north-eastern states. A critical development in 2011 has been the decision
taken in principle to extend the right to education till Class X (age 16) and into the preschool age range.
The CABE committee is in the process of looking into the implications of making these changes.

Gross Enrolment Ratio (GER):

It is a statistical measure used in the education sector, and formerly by the UN in its Education Index, to
determine the number of students enrolled in school at several different grade levels (like elementary,
middle school and high school), and use it to show the ratio of the number of students who live in that
country to those who qualify for the grade level. The United Nations Educational, Scientific and Cultural
Organization (UNESCO) describes "Gross Enrolment Ratio" as the total enrolment within a country "in a
specific level of education, regardless of age, expressed as a percentage of the population in the official age
group corresponding to this level of education".
The GER can be over 100% as it includes students who may be older or younger than the official age group.
For instance, in India it improved from 25.8 to 26.3, the GER includes students who are repeating a grade,
those who enrolled late and are older than their classmates, or those who have advanced quickly and are
younger than their classmates. This allows the total enrolment to exceed the population that corresponds
to that level of education.

Comments:
The GER is used in the education sector, and formerly by the UN in its Education Index, to determine the
number of students enrolled in school at several different grade levels and use it to show the ratio of the
number of students who live in that country to those who qualify for the grade level. In India it improved
from 25.8 to 26.3, the GER includes students who are repeating a grade, those who enrolled late and are
older than their classmates, or those who have advanced quickly and are younger than their classmates.

Mid-Day Meal Scheme:
Mid-Day Meal in schools has had a long history in India. In 1925, a Mid-Day Meal Programme was
introduced for disadvantaged children in Madras Municipal Corporation. By the mid-1980s three States viz.
Gujarat, Kerala and Tamil Nadu and the UT of Pondicherry had universalized a cooked Mid-Day Meal
Programme with their own resources for children studying at the primary stage by 1990-91 the number of
States implementing the mid-day meal programme with their own resources on a universal or a large scale
had increased to twelve states.
1. With a view to enhancing enrolment, retention and attendance and simultaneously improving
nutritional levels among children, the National Programme of Nutritional Support to Primary
Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995, initially
in 2408 blocks in the country. By the year 1997-98 the NP-NSPE was introduced in all blocks of the
country. It was further extended in 2002 to cover not only children in classes I -V of Government,
Government aided and local body schools, but also children studying in EGS and AIE centres.
Central Assistance under the scheme consisted of free supply of food grains @ 100 grams per child
per school day, and subsidy for transportation of food grains up to a maximum of Rs 50 per quintal.

2. In September 2004 the scheme was revised to provide cooked mid-day meal with 300 calories and
8-12 grams of protein to all children studying in classes IV in Government and aided schools and
EGS/ AIE centres. In addition to free supply of food grains, the revised scheme provided Central
Assistance for

(a) Cooking cost @ Re 1 per child per school day,

(b) Transport subsidy was raised from the earlier maximum of Rs 50 per quintal to Rs. 100 per
quintal for special category states, and Rs 75 per quintal for other states,
(c) Management, monitoring and evaluation costs @ 2% of the cost of food grains, transport
subsidy and cooking assistance,
(d) Provision of mid-day meal during summer vacation in drought affected areas.

3. In July 2006 the scheme was further revised to aid with cooking cost at the rate of (a) Rs 1.80 per
child/school day for States in the North-eastern Region, provided the NER States contribute Rs 0.20
 per child/school day, and (b) Rs 1.50 per child/ school day for other States and UTs, provided that
these States and UTs contribute Rs 0.50 per child/school day.

4. In October 2007, the scheme has been further revised to cover children in upper primary (classes VI
to VIII) initially in 3479 Educationally Backwards Blocks (EBBs). Around 1.7 crore upper primary
children were included by this expansion of the scheme. The calorific value of a mid-day meal at
upper primary stage has been fixed at a minimum of 700 calories and 20 grams of protein by
providing 150 grams of food grains (rice/wheat) per child/school day.

Comments:
1. The MDM scheme was introduced with a view to enhancing enrolment, retention and attendance
and simultaneously improving nutritional levels among children, the National Programme of
Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme
on 15th August 1995, initially in 2408 blocks in the country. Central Assistance under the scheme
consisted of free supply of food grains @ 100 grams per child per school day, and subsidy for
transportation of food grains up to a maximum of Rs 50 per quintal. The calorific value of a mid-day
meal at upper primary stage has been fixed at a minimum of 700 calories and 20 grams of protein
by providing 150 grams of food grains (rice/wheat) per child/school day.

Integrated Rural Development Program

For providing employment opportunities to the poor the Integrated Rural Development Program had been
launched. Besides providing the necessary subsidies to people below poverty line, this scheme also helps
them to enhance their living standards.
The Integrated Rural Development Program (IRDP) was launched by the Government of India during 1978
and implemented during 1980. The aim of the program is to provide employment opportunities to the
poor as well as opportunities to develop their skill sets to improve their living conditions. The program is
considered one of the best yojanas to do away with poverty related problems by offering those who fell
below the poverty line the necessary subsidies in tandem with employment opportunities.

Objective of IRDP
The objective of Integrated Rural Development Program is to help families who live below the poverty line
to enhance their state of living and to empower the poor by helping them develop at every level. The
program’s objectives are met by providing productive assets and inputs to its target groups. The assets,
which could be in the primary, secondary or tertiary sector are provided as financial assistance to these
families in the form of government subsidies as well as loans or credit from financial institutions.
Beneficiaries of the Integrated Rural Development Program
The beneficiaries of this program are as follows:
 Rural artisans
 Labourers
 Marginal Farmers
 Scheduled castes and scheduled tribes
 Economically backward classes with an annual income of less that Rs 11,000.

Implementation of IRDP
The Integrated Rural Development Program is implemented through the following agencies:
 District Rural Development Agencies (DRDAs)
 Block staff at the grassroot level
 State Level Coordination Committee (SLCC) at state level
 Ministry of Rural Areas and Employment (who are responsible for the release of funds, formation of
policies, programme evaluation, monitoring and guidance)

Integrated Rural Development Program Funding

The Integrated Rural Development Program is a Centrally Sponsored Scheme funded on a 50:50 basis by
the centre and the states. The scheme has been in operation in all the blocks of the country since the year
1980. Under this scheme Central funds are allocated to states based on proportion of rural poor in a state
to the total rural poor in the country.
Assistance is given in the form of subsidies by the government and term credit advanced by financial
institutions, such as commercial banks, cooperatives, and regional rural banks.

Comments:
The IRDP was launched with the aim of the program is to provide employment opportunities to the poor as
well as opportunities to develop their skill sets to improve their living conditions. The program is
considered one of the best yojanas to do away with poverty related problems by offering those who fell
below the poverty line the necessary subsidies in tandem with employment opportunities.