Rural Development .pdf

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Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2002 | Latest laws

The Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2002 Published vide G.O.Ms.No. 4, Panchayat Raj and Rural Development (Mdl.II), dated: 7th January, 2002, Published in A.P. Gazette R.S. to Part 7 Ext., dated: 9-1-2002. AP161 In exercise of the powers conferred under Section 268 read with sub section (6) of Section 36 of Andhra Pradesh Panchayat Raj Act, 1994 (Andhra Pradesh Act 13 of 1994) the Governor of Andhra Pradesh hereby makes the following rules, relating to the Functions of Panchayat Secretary. Rules 1. Short title:– These rules may be called the Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2002. Functions of Panchayat Secretary 1. Functions relating to Panchayat Administration: (1) The Panchayat Secretary should necessarily stay within the Panchayat and failure to stay in the Panchayat would result in initiation of, disciplinary action which may likely to lead dismissal from service. (2) He is subordinate to the Gram Panchayat and shall function under the control of the Sarpanch of the Gram Panchayat. (3) He shall convene the meeting of the Gram Panchayat as directed by the Sarpanch. (4) He shall attend the meeting of the Gram Panchayat or any Committee thereon. (5) He shall implement the resolutions of the Gram Panchayat and of the Committees thereof. (6) He shall take the responsibility of the protection of Government and Panchayat properties and lands and maintenance of village chavadies with clean and green. (7) He shall report of encroachments, damage or misuse of Government lands, buildings and Panchayat lands and buildings if any to the Higher authorities. (8) He shall maintain the required registers of the Gram Panchayat and collect Panchayat taxes promptly. II: General Administrative Functions: (1) He shall collect taxes on behalf of Government and maintain village records and village accounts promptly and accurately. (2) He shall supervise the crops (100%) and inclusive of inspection of survey stones. (3) The preliminary reports on the issue of Community, Income, Nativity, Solvency and such other Certificates as required will be submitted. (4) He shall maintain sanitation in the village https://www.latestlaws.com/bare-acts/state-acts-rules/andhra-pradesh-state-laws/andhra-pradesh-panchayat-raj-functions-of-panchayat-secretary-rule…

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Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2002 | Latest laws

(5) He shall assist the Gram Panchayat in discharging its duties. (6) He shall assist Government authorities during floods, cyclone, accidents etc., and take up preventive, relief and rehabilitation work. (7) He shall assist Andhra Pradesh Transmission Corporation in its operations at village level. (8) He shall be the ‘Inspector’ under Minimum Wages Act, 1948 as and when notified by the Competent Authority. (9) He shall maintain Birth and Death Register as per relevant Act and Rules. (10) He shall discharge the duties of a Marriage Officer as per relevant Act and Rules and maintain a Record of Marriages as per rules. (11) He should assist Grama Sabha in the identification of beneficiaries, disbursement of loans and their recovery. (12) Help all concerned departments: (a) He shall help.the concerned authorities while issuing the proceedings under the provisions of Revenue Recovery Act by obtaining property details. (b) He shall assist the authorities in servicing of legal notices and summons. (c) He shall cause beat of tom torn and other methods of informing people about events. (d) He shall assist in loan recoveries. (e) He shall conduct Panchanama, in recovery of un-claimed property. (f) He shall keep Government attached property in safe custody. (g) He should perform election duties. III. Police Functions : (1) He shall give prompt information to the police department regarding murders, suicides, unnatural deaths and other important developments which may threaten peace in the village. (2) He shall inform the police of stranger of suspicious appearance. (3) He shall inform occurrence of an accident to an aircraft to the nearest police station. 1. Community Welfare and Development : (1) He shall assist in work relating to payment of old age pension. (2) He shall report outbreak of epidemics. (3) He shall furnish the particulars about implementation of development activities. https://www.latestlaws.com/bare-acts/state-acts-rules/andhra-pradesh-state-laws/andhra-pradesh-panchayat-raj-functions-of-panchayat-secretary-rule…

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Andhra Pradesh Panchayat Raj (Functions of Panchayat Secretary) Rules, 2002 | Latest laws

(4) He should prepare the draft list of heads of house holds under the poverty line-keeping the names starting with the lowest levels of income and upward. (5) He should identify the needs of village and assist in preparation of village plans. (6) He should motivate the women for formation of new Self-Help Groups by encouraging the habit of thrift, impart best principles of group management in the Self Help Groups through regular training and capacity building. (7) He shall attend monthly staff meetings convened by President, Mandal Parishad and Mandal Parishad Development Officer, and other meetings convened by District Officers. (8) He should assist the superior officers in their work. (9) He should do necessary documentation and assist in implementation of Weaker Section Housing Programme. (10) He should report on the atrocities against women and children to the authorities concerned and to take action within 24 hours. (11) He shall report any outbreak of communicable diseases especially malaria, Japanese Encephalities and Gastroenteritis to the nearest Primary Health Centre immediately. (12) He shall monitor the Anti-Malarial spraying of insecticides in the villages. (13) He shall assist the Integrated Child Development Scheme Functionaries in implementing their various activities. (14) He shall organise to collect the details of seedlings planted in each location, motivate the concerned to protect them and collect percentage of survival periodically. (15) He shall report cases of atrocities against Scheduled Caste, Scheduled Tribes. (16) He shall attend meetings of V.T.D.A. and assist V.T.D.A. in preparation of micro plans and in implementing them. (17) He shall strive for eradication of untouchability by providing access to Scheduled Castes and Scheduled Tribes in temples, removal of two glass system in canteens and hotels in the villages and provision of access to public water sources. (18) He shall assist the Education Department in their enrolment drive. (19) He shall assist in conducting the literacy classes. (20) He should maintain:(a) Crop coverage and assist in reconciliation of high estimates of crop coverage with Azmoish figure for reconciling the crop areas for Crop Insurance Scheme. (b) He should assist Agricultural Department in implementing its programmes and disseminate extension information. https://www.latestlaws.com/bare-acts/state-acts-rules/andhra-pradesh-state-laws/andhra-pradesh-panchayat-raj-functions-of-panchayat-secretary-rule…

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(c) He shall do Joint Azmoish of Crops. (d) He shall assist in maintenance of agricultural statistics. (e) He shall assist in maintaining and up keeping of information boards, black boards and the assets in the village. (f) He shall assist in giving information to the concerned officials about any black market sales of seeds, fertilizers and pesticides. (g) He shall assist in maintenance of House-hold Data of Weavers both within and outside Cooperation fold and their economic status. (h) He shall issue Dependency Certificate for Handloom Weavers if any desired. 1. Co-ordinative Functions : (1) He should act as Co-ordinator between the various agencies. (2) He should maintain list of beneficiaries under various schemes and mobilize the public participation for Janmabhoomi, Neeru-meeru and Water Shed Programmes and Joint Forest Management/Community Forest Development. (3) He shall keep liaison with teachers and other Government Departmental Officers. (4) He should organize meetings and group discussions among villagers for Community Work. (5) He should co-ordinate with the work of all departmental employees at village level. (6) He should motivate the people for successful implementation of clean and green programme and plantation programmes.

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CHAPTER – II HISTORICAL BACKGROUND

OF RURAL

DEVELOPMENT IN INDIA I – Introduction: The village in India holds a unique place, both in the social and economic spheres. There were 212.6 million people living in rural areas in 1901, in 2001 rural population has increased to 721.1 million naturally the density of population has increased, land under agriculture has diminished, affected the forests and exodus to urban areas accelerated agricultural labor continued to be exploited. The phenomenon of Rural Development is becoming more and more complex despite technological advancement and availability of resources as well as continued efforts from the pre independence period. Rural Development has a long history in India. There are various approaches, strategies, philosophies, policies, programmes, enactments, efforts, experiments, methodologies, which needs to be studied and analyzed to understand the Rural Development. Present chapter is an attempt to discuss historical analysis of Rural Development programmes right from pre-independence period to present period until 2009 – 10. Starting with the conceptual clarity from national and international perspectives this chapter gives the historical background of Rural Development from the pre independence period. It describes the review of various experiments in the pre and post independence period. It gives brief detail of Gandhian ideas and contribution in the area of rural development. There is analytical description of five year plans, major schemes and performances of Rural Development. The chapter includes major issues of Rural Development.

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II – Emergence of Rural Development in International Setting: Emergence of the Idea of Rural Development in the World and in India: In India as well as other developing countries the economic development strategies failed which turn our attention to ‘Rural Development’ as the main objective of development. The lessons of the development experiences were as follows: 1. The practice of identifying development with growth in terms of aggregate figures was not correct; 2. Economic growth had only selective impact which benefited the relatively developed areas and the relatively better off people; 3. The percolation theory of growth had failed; 4. If development is not viewed only as growth, then the creation of employment opportunities and deliberate distributive measures were required to achieve the objective of developing the ‘forgotten majority’ of rural poor in developing countries, 5. Development should cover larger dimensions of the ‘quality of life’ of the vast majority of the people; and 6. The realization that the traditional method of agriculture in the developing countries could be transformed through modern technology and modern farming practices were other aspects of the rethinking on development. A major consequence of all these ‘new truths’ of the development experience is current concern of ‘Rural Development’. It occupied the central place in the development dialogue of the World Bank, which became the champion of the cause.1 1

Shah Dilip R – Alternatives in Rural Development, Sterling Publishers Private Limited, 1990. pp. 17-18

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III – Rural Development in pre independence period Rural Development has never been a new concept for India it is rather interwoven in the heritage of Indian culture, mention of it has been made along with the history of mankind. Even in the famous epics and drams like Ramayana and Mahabharata the instances of rural governance in terms of welfare of the people, justice to the people has been made. The philosophy of governance in such literature gives hints of Rural Development. Rural Development traces back its history to the Seventeenth Centaury when voluntary efforts to serve the mankind were initiated. A religious society of people known as ‘Friends’ or ‘Quakers’ had emerged as a movement in this direction for the first time in England and then in the other parts of the world in rapid strides. It aimed at providing services to mankind transcending bonds of religion, territory and culture. The Quaker was a kind of rebel. In the mid of the seventeenth century, the main plank of the Quaker movement was that every human being has infinite dignity, that he is worthy of reverence simply because he is a human being and therefore, a temple of God.2 The main spirit behind this movement has been one of the selfless service and sacrifice and it runs like a wire, as it were exponents of the Quaker faith. The Quaker service to India was brought by Rachel Metcalfe. She left England in the year 1866 and came to India with meager resources and with no previous arrangements for launching a project of social reconstruction. In the quarter of the nineteenth Century, a few more Quakers arrived in India to actively participate in reconstruction of the society. But the unfortunate part was that the famines of 1895-96 and 1899-1900 converted these Quakers into simple relief workers.3 Thus the Quakers can be 2

Desai, I.A. and Chaudhri, B.L., History of Rural Development in Modern India, Vol. II, Impex India, New Delhi, 1977, p.161. 3 Tewari, R.T. and Sinha R.C., Rural Development in India, Ashish Publishing House, New Delhi, 1988, p.1-2

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considered as one of the major milestones in the pre Independence history of Rural Development. British rule in India began under a trading company, namely the East India Company which under compulsions and temptations acquired functions of governance also. The basic British policy in India, reflective of the governing political philosophy in Great Briton, was to restrict itself to the task of governance and not to interest itself in social and economic matters relating to the people. Even otherwise, eschewing such larger societal concerns was one of the lessons which was learnt from the upspring of 1857. Yet the British Government could not adhere to such a policy for long, and the logic of the colonial economy, reinforced by the local situational pressures, compelled a broadening of governmental responsibilities, in general and governmental entry in the field of rural development, in particular. The rural development functions in India were assumed by the government in the context of recurrent famines, but in the beginning, they did not have any legal sanctions behind them. In the first few decades after 1858, some district officers seized (in the midst of famine) the food grain stocks and controlled the market to ensure their distribution among the needy. All this was done without was done without any apparent legal sanction, motivated, as the action purely was, by determination to control profiteering and alleviate rural suffering.4

The nationalist movement and Rural Development: With the entry of Mahatma Gandhi in to Indian Public life Rural Development received mass popular support. The Rural Development was perceived with the concept of Gram Swaraj, Swa Desi, Khadi, Safai, Shram Dan etc. The NonCooperation movement, started by Mahatma Gandhi in 1920, was the first

4

B.B.Mishra: District Administration in India and Rural Development. Delhi: Oxford University Press, 1983, p. vi

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political attempt in India to mobilize the villagers. The Non-Cooperation Resolution, moved by Mahatma Gandhi and passed by the Indian National Congress in its Calcutta session of September 1920, articulated the approach to rural development by recommending ‘hand-spinning in every house and handweaving on the part of millions of weaver who have abandoned their ancient and honorable calling for want of encouragement.’5

Khadi became the dress of

Indian Freedom Fighters, and its adoption by the Congress was the first genuine organized concern for the rural poor. The spinning-wheel economy, adopted by Gandhiji, was the first voluntary exercise in rural development in India. Mahatma Gandhi also designed a comprehensive programme of rural development which included khadi, promotion of village industries, eradication of untouchablility, provision of basic and adult education, prohibition, women’s upliftment, and propagation of the national language. Gandhiji was translating these ideas into action at Warda in Sevagram. Along with the freedom movement the volunteers were engaged in rural reconstruction programmes all over the country. Rabindranath Tagore set up Srinikiten Institute of Rural Reconstruction in 1921 with the aim of making the rural population self-reliant and self-respectful. This initiative is popularly known as Sriniketan Rural Reconstruction Programme. Tagore’s experiment in small area of a few villages aimed at both economic as well as social development of the rural community. Attempt were made to develop village crafts, schools for boys and girls with boarding and lodging facility, training for boys and girls in kitchen garden, poultry, dairy, carpentry and other crafts. Rabindranath Tagore desired that the local government should take up the responsibility of rural development programmes. This idea in those days appeared to be strange and was not well received by the Government. Tagore wanted increase of material wealth through cooperative effort and increase of

5

Pattabhi Sitaramayya: The History of the Indian National Congress (1885-1935)-Allahabad: Working Committee of the Congress, 1935, 1. 342.

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cultural wealth through music, drama and dance at Sriniketan. Thus Tagore’s contribution to all round improvement of the villages covered by his experiment is commendable.6 Martandam experiment was started in Madras under the leadership of Yang Men’s Christian Association ‘to bring about a complete upward development towards a more abundant life for rural people, spiritually, mentally, physically, socially and economically. The Martandam rural reconstruction programme was based on certain principles known as “pillars of policy.” The important principles were: 1. The programe of rural reconstruction must be people’s own and the personnel associated with the programmes were only there to guide the people to help themselves with emphasis on “self-help.” 2. People of all communities must be included in the developmental programmes and focus of help must be on the poorest of the poor 3. It must be comprehensive programme covering development of cottage industries like mats and basket making, palmyra sugar, hand-woven cloth, poultry keeping, bee-keeping, etc. 4. Spirituality should be the basis of every programme 5. Simplicity at all levels should be the keynote so as to achieve the results with less cost, benefiting the rural poor. 6. Honorary extension services must be tapped whenever possible. In this programme, demonstration centers were established at selected places to convince the people to take bee-keeping, poultry-keeping, basketweaving, etc. The initiative taken during the year 1921 still proves to be most relevant even in today’s context.

6

Ramabai, B., The Silent Revolution, Jiwan Prakashan, Delhi, 1959 p.10.

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The Gurgaon Experiment: F.L.Brayne, the then district collector of Gurgaonwho started in 1927 a programme of rural reconstruction based on ancient virtues of hard work, thrift, self respect, self control, self-help, mutual help and mutual respect.7

Mr.Byren experienced uncertainty of rainfall, abject poverty, filthy

dwellings, ill-health, ignorance, illiteracy of the rural people, with a view to improve the living conditions of the rural people living in Gurgoan district. “Gurgaon Scheme” is the practice application of the principle that central figures, viz., the villager himself must be made to take greater interest in himself and in his village before any results can be achieved; and the government agencies should so more to combine and co-ordinate their activities in order to assist, help and guide him. The Gurgaon scheme claimed to deal with the whole life and the activity of the peasant and his family and to present a complete remedy from the terrible conditions in which he lived. The approach of Gurgaon project was to jerk the villager out of his old groove, convince him that improvement is possible, and skill his fatalism by demonstrating that climate, disease and pests can be successfully fought. The development work was taken place concerning all the spheres of rural development; a) Institutional work Comprised in the setting up of School of Rural Economy to train guides for rural uplift, development of cooperation, public health work (preparing people for vaccination visit), digging of manure pits, Domestic school of economics to uplift village women, Health association to improve public health. Women’s Institute to manage ladies gain. b) Rural Sanitation with a view to improve the living conditions in the villages by using manure pits as latrines, to fight epidemics like small-pox, plague and cholera. C) Agricultural development to exhort farmers to set up model farms, improve seeds, adopting improved equipments. Consolidation of fragmented landholdings. D) School teacher was made center of all development in the village. In 1932 the princely state of Baroda launched a broad-based programme of rural amelioration to promote the will to live better and a capacity for self-help 7

F.L.Brayene: Better Villages, Bombay: Oxford University Press, 1946, p.268

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and self-reliance. State initiated rural reconstruction programme was commenced in Baroda province around 1890 by Maharaja Sayaji rao. First, the programme was confined to a group of villages. The programme took interest in the establishment of village panchayats, taluk and district boards. Focus was laid on making education compulsory to all children in the age group of 6 to 11 years. Village libraries were set up and people were encouraged to make use of the library. This initial step paved the way for comprehensive programme of rural reconstruction spread to other parts of Baroda State also. Before the commencement of the rural reconstruction programme, a survey was made to identify the minimum needs of the village. Local works such as construction of feeder roads, connecting villages with the nearest railway station, digging of village wells, formation of grazing fields, etc., were taken up with 50 per cent contribution by the villagers in the form of money and/or labor except in the most backward areas. The Debt Regulation Act of 1935 and the Debt Conciliation Act of 1938 were some of the important steps taken for the welfare of rural poor. An intensive scheme for rural reconstruction was launched by the then Bombay government with a view to carry on the Mahatma Gandhiji’s programme of Sarvodaya. This was the first rural reconstruction scheme sponsored by the government in the pre-independence era for the development of backward rural economy. The main thrust was to include among the villagers the spirit of selfhelp and mutual co-operation. The sanchalak was responsible for organizing reconstruction. Mention must be made of the Government of India Act, 1935, which conferred autonomy on the provinces in a sphere of activities which included, among others, all the ingredients of rural development. A new department of development was constituted in most provinces and rural development received a further push. The congress party fought the election under this Act of 1935, promising wide range of agrarian reforms; substantial reduction in revenue and

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relief from the burden of rural debt.8 Its broad based concern for rural development has been mentioned in its election manifesto of 19459 One more important step can be considered is Kishan Sabha under the leadership of the Communist party worker Mrs. Godavri Parulekar in 1945.10 Adivasis fought for their rights against landlords, moneylenders and contractors. As a result, the Minimum Wages Act was brought under enforcement in Forties to safeguard the interests of Adivasis working for forest contractors and plantation owners. While summing up it is found that whatever approaches, methodologies, priorities, strategies which are being adopted today for rural development are not new but are refined forms of inheritance of rural development practices of pasts. Wage employment, self employment, entrepreneurship, self -help, community mobilization, reconstruction, credit, voluntary effort, legal provisions, social actions, everything that we find today as part of rural development were there in past also.

8

Pattabhai Sitaramayya: The History of the Indian National Congress, Vol. II. Bombay: Padma Publications, 1947, p. 42 9 The Congress manifesto is reproduced in Pattabhi Sitaramayya, ibid., Appendix I. 10 Vasant Despande, Struggle of The Deprived for Development: 2 (Adivasis of Thane), Dastane Ramchandra Co., Pune, 1985, p.14

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IV – Mahatma Gandhi and Rural Development “I know that the work [of making an ideal village] is as difficult as to make of India an ideal country. But, while it is possible for one man to fulfill his ambition with respect to a single village some day, one man's lifetime is too short to overtake the whole of India. But if one man can produce one ideal village, he will have provided a pattern not only for the whole country, but perhaps for the whole world. More than this a seeker may not aspire after”. 11

Gandhiji was one of the biggest actor who has contributed towards the field of rural, his experiments as well as inspiring thoughts have always been the source of inspiration, for the actors involved in rural development be it volunteer, policy maker, researcher or anybody. With Gandhi's advent on the Indian scene in 1915, things began to change all round. Gandhi looked at Rural Development in his own unique way. Gandhi never equated happiness with economic prosperity and physical pleasure alone. His concept of the Rural Development was totally opposed to the utilitarian concept of development. It is Gandhi's deep-rooted conviction that individual happiness lies in the happiness of society and vice-versa; and this is constantly seen in almost all his pronouncements regarding rural development. He considered man superior to the system he propounded, and so he was against the system which brought about moral degradation of Indian society. Gandhi never drew a sharp distinction between economics and ethics. For him, economic policies which were harmful to the moral well-being of an individual, community, society, country or a nation were immoral and therefore, sinful. For him happiness meant the happiness of the society as a whole and was indicated

11

Harijan, 4-8-1940

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primarily, by its moral standard and secondarily, by its physical and economic well-being. Let us examine several thoughts, ideas, initiatives, experiments, vision and principles of Mahatma Gandhi that carries eternal value in terms of source of replication,

motivation,

inspiration

in

the

area

of

policy

formulation,

implementation, management, evaluation, monitoring, research etc. in the area of Rural Development.

1) Sarvodaya: One of the ideal concepts of Mahatma Gandhi is ‘Sarvodaya’ the greatest good of all through truth and non-violence became the ultimate goal of Gandhi in social welfare. His methods of working towards this goal were different from those of many other leaders and social reformers. He took an integrated view of life and disapproved of dividing an individual's life into different compartments. Also the individual was looked upon by him not as a separate entity but as a constituent unit of society. When he returned from South Africa he extensively travelled over India and felt that political freedom was the foremost requirement of the country but along with it equally important is to get freedom from grinding poverty. To him, the individual was as important, if not more, than the society, as he firmly believed that the happiness of the individual formed the constituent part of the happiness of the society. So, for him, social welfare meant the conscious submission of the individual and a voluntary contribution of one's possession to the society, which consisted of all, not a majority and, in return, the social system, built upon the principles of non-violence and democracy, was to give a complete guarantee for the maximum development of the individual's personality.

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2) Village Development: He did not want India be industrialized in the modern sense of the term. According to him the people are rooted to the soil and the vast majority is living a hand to mouth life. Whatever may be said to the contrary, having traveled throughout the length and breadth of the land with the eyes open and having mixed with millions are living in enforced idleness for the last four month in a year. He did not want Agriculture to change revolutionary but he advocated for the supplementary industry. The most natural was the introduction of the spinning wheel but not the handloom because according to him it used to be so even a century ago. It was driven out not by economic pressure but by force deliberately used as can be proved from authentic records. He believed that the spinning wheel solves the economic problem of India at a stroke. His idea of village development is that it is a complete republic, independent of its neighbors for its own basic needs and yet interdependent for many others in which dependence is necessary. Thus, every village's first concern will be to grow its own food crops, and cotton for its cloth. It should have a reserve for its cattle, recreation and playground for adults and children. Then, if there is more land available, it will grow useful money crops, thus excluding GANJA, tobacco, opium and the like. The village will maintain a village theatre, school and public hall. It will have its own waterworks ensuring clean water supply. This can be done through controlled wells or tanks. Education will be compulsory up to the final basic course. As far as possible, every activity will be conducted on the cooperative basis. There will be no castes with graded untouchability. Nonviolence with its technique of Satyagraha and non-co-operation will be the sanction pf the village community. There will be a compulsory service of village guards who will be selected by rotation from the register maintained by the village.

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3) All-Round Village Service: Gandhiji believed that THE REAL India lies in the 7,00,000 villages. If Indian civilization is to make its full contribution to the building up of a stable world order, it is this vast mass of humanity that has to be made to live again. He was concerned about triple malady which holds our villages fast in its grip: (I) want of corporate sanitation; (ii) deficient diet; (iii) inertia . . . They [villagers] are not interested in their own welfare. He was worried that villagers don't appreciate modern sanitary methods. They don't want to exert themselves beyond scratching their farms or doing such labour as they are used to. But despite these challenges he had unquenchable faith in his mission. He urged his coworkers that they have to deal with a chronic disease. Patience and perseverance, if they have them, overcome mountains of difficulties. According to him the people involved in the act of rural development are like nurses who may not leave their patients because they are reported to have an incurable disease. Villages have suffered long from neglect by those who have had the benefit of education. They have chosen the city life. The village movement is an attempt to establish healthy contact with the villages by inducing those who are fired with the spirit of service to settle in them and find self-expression in the service of villagers….Those who have settled in villages in the spirit of service are not dismayed by the difficulties facing them. They knew before they went that they would have to contend against many difficulties, including even sullenness on the part of villagers. Only those, therefore, who have faith in themselves and in their mission will serve the villagers and influence their lives.12 Such vision of him carries eternal relevance for the theory and practice of rural development in general and rural mass mobilization in particular.

12

Harijan, 20-2-1937

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4) SAMAGRA GRAMASEVA: Gandhiji’s approach and strategy of rural development gets reflected in his initiative of ‘Samagra Gramseva’ According to him a Samagra Gramaseva must know everybody living in the village and render them such service as he can. That does not mean that the worker will be able to do everything single-handed. He will show them the way of helping themselves and procure for them such help and materials as they require. He will train up his own helpers. He will so win over the villagers that they will seek and follow his advice. Supposing I go and settle down in a village with a GHANI (village oil press), I won't be an ordinary GHANCHI (oil presser) earning 15-20 rupees a month. I will be a Mahatma GHANCHI. I will be a Mahatma GHANCHI. I have used the word 'Mahatma' in fun , but what I mean to say is that as a GHANCHI I will become a model for the villagers to follow. I will be a GHANCHI who knows the Gita and the Quran. I will be learned enough to teach their children. I may not be able to do so for lack of time. The villagers will come to me and ask me: "Please make arrangements for our children's education". I will tell them: "I can find you a teacher, but you will have to bear the expenses". And they will be prepared to do so most willingly. I will teach them spinning and when they come and ask me for the services of a weaver, I will find them a weaver on the same terms as I found them a teacher. And the weaver will teach them how to weave their own cloth. I will inculcate in them the importance of hygiene and sanitation, and when they come and ask me for a sweeper, I will tell them: "I will be your sweeper and I will train you all in the job." This is my conception of Samagra Gramaseva. You may tell me that I will never find a GHANCHI of this description in this age. Then I will say that we cannot hope to improve our villages in this age. . . . After all, the man who runs an oil mill is a GHANCHI. He has money but his strength does not lie in his money. Real strength lies in knowledge. True knowledge gives a moral standing and moral strength. Everyone seeks the advice of such a man.13 13

Harijan, 17-3-1946 38

5) ECONOMIC SURVEY: The villages will be surveyed and a list prepared of things that can be manufactured locally with little or no help which may be required for village use or for sale outside, such for instance as GHANI-pressed oil and cakes, burning oil prepared through GHANIS, hand-pounded rice, TADGUD, honey, toys, mats, hand-made paper, village soap, etc. if enough care is thus taken, the villages, most of them as good as dead or dying, will hum with life and exhibit the immense possibilities they have of supplying most of their wants themselves and of the cities and towns of India.14 These ideas reveals his vision of self sufficient rural development, the ideas has potentials to prove best alternative even in the era of capitalism.

6) ARTS AND CRAFTS: He had strategies for self reliant rural entrepreneurship and rural marketing, according to him the villagers should develop such a high degree of skill that articles prepared by them should command a ready market outside. He was of the belief that when villages are fully developed, there will be no dearth in them of men with a high degree of skill and artistic talent. According to him there will be village poets, village artists, village architects, linguists and research workers. In shout, there will be nothing in life worth having which will not be had in the villages. Today the villages are dung heaps. Tomorrow they will be like tiny gardens of Eden where highly intelligent folk whom no one can deceive or exploit dwell. The reconstruction of the villages along these lines should begin right now….. The reconstruction of the villages should not be organized on a temporary but permanent basis.15 14

Harijan, 28-4-1946

15

Harijan, 10-11-1946 39

7) ECONOMIC REORGANIZATION: ….. I would say that, if the village perishes, India will perish too. India will be no more India. Her own mission in the world will get lost. The revival of the village is possible only when it is no more exploited. Industrialization on a mass scale will necessarily lead to passive or active exploitation of the villagers as the problems of competition and marketing come in. Therefore, we have to concentrate on the village being self-contained, manufacturing mainly for use. Provided this character of the village industry is maintained, there would be no objection to villagers using even the modern machines and tools that they can make and can afford to use. Only, they should not be used as a means of exploitation of others.16

In his writing on cent per cent Swadeshi He has shown how some aspects of it can be tackled immediately with benefit to the starving millions both economically and hygienically. He wrote that the richest in the land can share the benefit. Thus, if rice can be pounded in the villages after the old fashion, the wages will fill the pockets of the rice-pounding sisters and the rice-eating millions will get some sustenance from the unpolished rice instead of pure starch which the polished rice provides. Accordingly he shows the way of each and every minute problem of Rural Development.

8) NON-VIOLENT ECONOMY: You cannot build non-violence on a factory civilization, but it can be built on selfcontained villages. . . . Rural economy as I have conceived it, eschews exploitation altogether, and exploitation is the essence of violence. You have,

16

Harijan, 29-8-1936

40

therefore, to be rural-minded before you can be non-violent, and to be ruralminded you have to have faith in the spinning wheel.17

According to him we have to make a choice between India of the villages that are as ancient as herself and India of the cities which are a creation of foreign domination. He believed that the cities dominate and drain the villages so that they are crumbling to ruin. His Khadi philosophy reveals that cities must subserve villages when that domination goes. He considered exploitation of villages itself as organized violence. He said that If we want Swaraj to be built on non-violence, we will have to give the villages their proper place.

9) FOOD REFORM: In his writing we find his ideas even on minute points related to rural development he quotes “Since the economic reorganization of the villages has been commenced with food reform, it is necessary to find out the simplest and cheapest foods that would enable the villagers to regain the lost health. The addition of green leaves to their meals will enable the villagers to avoid many diseases from which they are now suffering.The villagers' food is deficient in vitamins; many of them can be supplied by fresh green leaves. An eminent doctor told me a proper use of green leaves is calculated to revolutionize the customary notions of food and much of what was today being supplied by mild may be supplied by green leaves.”18

17

Harijan, 4-11-1939

18

Harijan, 15-2-1935

41

10)

POWER MACHINERY:

He was heaving very different ideas about rural technology i.e. use of technology in the process of rural development. He considered the existence of power wheels for the grinding of corn in thousands of villages as the limit of our helplessness. He quotes that suppose India does not produce all the engines or grinding machines. . . . The planting of such machinery and engines on a large scale in villages is also a sign of greed. In his view Is it proper to fill one's pocket in this manner at the expense of the poor? Every such machinery puts thousands of hand-CHAKKIS out of work and takes away employment from thousand of housewives and artisans who make these CHAKKIS. Moreover, the process is infective and will spread to every village industry. The decay of the latter spells too the decay of art. If it meant replacement of old crafts by new ones, one might not have much to say against it. But this is not what is happening. In the thousands of villages where power machinery exists, one misses the sweet music, in the early morning, of the grinders at work.19

He gives a message that in any development before thinking the benefits of development the care must be taken that of displaced or to say who are going to lose with that particular development rather than gain.

11)

PANCHAYAT RAJ:

The source of inspiration behind the Inclusion of Panchayat Raj in directive principles of state policies and later in the form of 73rd Constitutional is Gandhiji’s ideas on Panchayat Raj and Gram Swaraj.

19

Harijan, 10-3-1946

42

India has had experience of. . . village republics, as they were called by Mayne. I fancy that they were unconsciously governed by non-violence. . . An effort has now to be made to revive them under a deliberate non-violent plan.20 The best, quickest and most efficient way is to build up from the bottom . . . Every village has to become a self-sufficient republic. This does not require brave resolutions. It requires brave, corporate, intelligent work. . .

21

According to him the Government of the village will be conducted by the Panchayat of five persons, annually elected by the adult villagers, male and female, possessing minimum prescribed qualifications. These will have all the authority and jurisdiction required. Since there will be no system of punishments in the accepted sense, this Panchayat will be the legislature, judiciary and executive combined to operate for its year of office. He presented an outline of village government. Here there is perfect democracy based upon individual freedom. The individual is the architect of his own government. He even said that to model such a village may be the work of a lifetime. Any lover of true democracy and village life can take up a village, treat it as his world and sole work, and he will find good results. These thoughts are always proving to be the source of inspirations for rural development policy formulation and execution especially administration and management of Rural Development.

20

Harijan, 4-8-1940

21

Harijan, 18-1-1922

43

V – Five Year Plans and Rural Development When India emerged as an independent country in 1947, it inherited this momentum from its immediate past and had, moreover, the nucleus of technical know-how and even infrastructure in rural development. India has been a welfare state ever since her Independence and the primary objective of all governmental endeavors has been the welfare of its millions. Planning has been one of the pillars of the Indian policy since independence and the country’s strength is derived from the achievement of planning. The policies and programmes have been designed with the aim of alleviation of rural poverty which has been one of the primary objectives of planned development in India. The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. Jawaharlal Nehru was the first Chairman of the Planning Commission. The first Five-year Plan was launched in 1951.

1) First Five Year Plan While formulating the 1st Five Year Plan the following experiences gained in Sevagram in Madhya Pradesh, in the Firka Development scheme in Madras, in the Sarvodaya centres in Bombay, in Etawah and .Gorakhpur in Uttar Pradesh and other centres which are perhaps less well known were taken into consideration:

44

i.

When different departments of the Government approach the villager, each from the aspect of its own work, the effect on the villager is apt to be confusing and no permanent impression is created. The peasant's life is not cut into segments in the way the Government's activities are apt to be ; the approach to the villager has, therefore, to be a coordinated one and has to comprehend his whole life. Such an approach has to be made, not through a multiplicity of departmental officials, but through an agent common at least to the principal departments engaged in rural work, whom it is now customary to describe as the village level worker.

ii.

Programmes which have been built on the cooperation of the. people have more chances of abiding success than those which are forced down on them.

iii.

While the official machinery has to guide and assist, the principal responsibility for improving their own condition must rest with the people themselves. Unless they feel that a programme is theirs and value it as a practical contribution to their own welfare, no substantial results will be gained.

iv.

Programmes largely dependent on expenditure by the Government, in which the elements of self-help and mutual cooperation on the part of villagers are present only in a nominal degree are shortlived. The essential idea should be the reduction of chronic unemployment which is a feature of rural life—through the practice of scientific agriculture and cottage and small-scale industries.

v.

Advice and precept are of no avail unless they are backed by practical aids—supplies of seed and fertiliser, finance and technical guidance for solving the farmer's immediate problems.

vi.

Whatever the measures of the effort which the Government wishes to make, the best results will be gained if the programmes are pursued intensively, and practically every agriculturist family has its own contribution to make through a village organisation. 45

vii.

The approach to the villager would be in terms of his own experience and problems, conceived on the pattern of simplicity, avoiding elaborate techniques and equipment until he is ready for them.

viii.

There has to be a dominant purpose round which the enthusiasirfofthe people can be aroused and sustained, a purpose which can draw forth from the people and those who assist them on behalf of the Government the will to work as well as a sense of urgency. The aim should be to create in the rural population a burning desire for a higher standard of living— a will to live better.

The main thrust of the first five year plan was set to be Community Development and Rural Extension. Community Development Programme: The size of the unit in each project was approximately 300 - villages with a total area of about 450 to 500 square miles, a cultivated area of about 150,000 acres and a population of about 200,000. The project area was conceived as being divided into 3 Development Blocks, each consisting of about 100 villages and a population “of about 60,000 to 70,000. The Development Block was, divided into groups of 5 villages each, each group was the field of operation for a village level worker. The main lines of activity which undertaken in a community project, can be briefly divided into the following: Agriculture and related matters: The programme includes reclamation of available virgin and waste land ; provision of commercial fertilizers and improved seeds ; the promotion of fruit and vegetable cultivation, of improved agricultural technique and land utilisation ; supply of technical information, improved agricultural implements, improved marketing and credit facilities , provision of soil surveys and prevention of soil erosion, encouragement of the use of natural and compost manures and improvement of livestock, the principal emphasis here being on the establishment of key villages for breeding pedigree stock and the 46

provision of veterinary aid, as well as artificial insemination centres. For attaining this objective, agricultural extension service will be provided at the rate of one agricultural extension worker for every 5 villages. Irrigation: The programme visualises provision of water for agriculture through minor irrigation works, e.g., tanks, canals, surface wells, tubewells, etc., the intention being that at least half of the agricultural land, if possible, be served with irrigation facilities. Communications: The road system on the country side is to be so developed as to link every village within the Project area upto a maximum distance of half a mile from the village, the latter distance being connected by feeder roads through voluntary labour of the villagers themselves, only the main roads being provided for and maintained by the State or other public agencies. Education: It has been realised that the full development of a community cannot be achieved without a strong educational base, alike for men and women. The community projects have been planned to provide for social education, expansion and improvement of primary and secondary education and its gradual conversion to basic type, provision of educational facilities for working children and promotion of youth welfare. Vocational and technical training will be emphasised in all the stages of the educational programme. Training facilities will be provided for imparting improved techniques to existing artisans and technicians, both in urban and rural areas. Training centres which already exist in any area, will be strengthened and developed, and new ones established to meet the requirements of the project area. Health: The Health Organisation of the Project area will consist of 3 primary health units in the Development Blocks and a secondary health unit equipped with a hospital and a mobile dispensary at the headquarters of the Project area and serving the area as a whole. It would aim at the improvement of 47

environmental hygiene, including provision and protection of water supply ; proper disposal of human and animal wastes ; control of epidemic diseases such as Malaria, Cholera, Small-pox, Tuberculosis, etc. Provision of medical aid along with appropriate preventive measures, and education of the population in hygienic living and in improved nutrition.

Supplementary Employment: The unemployed and the under-employed persons in the village community will be provided with gainful employment to such extent as is possible, by the development of cottage and small-scale industries, construction of brick kilns and saw mills and encouragement of employment through participation in the tertiary sector of the economy Housing: Apart from the provision of housing for community projects personnel, steps will be taken, wherever possible, to provide demonstration and training in improved techniques and designs for rural housing. In congested villages, action in the direction of development of new sites, opening of village parks and playgrounds and assistance in the supply of building materials, may also be necessary. Training: The training of village level workers, project supervisors and other personnel for the Community Development Programme will be carried out in 30 training centres .which have been set up with the assistance of the Ford Foundation of America. Each training centre will have facilities for about 70 trainees. Each centre will have double training staff so that the trainees can be divided into two groups. One group will be getting practical and supervisory work experience, while the other group will be utilising the centres' facilities for lectures, demonstrations and discussions. In view of the great demand on the training centres to turn out people quickly for the opening of new projects, the training period will, in the first instance, be limited to six months. In addition to the training of village level workers and supervisors, the agricultural extension

48

service workers in the Project areas will take steps for the training of the agriculturists, panches and village leaders.

Finance:

The

Community

Development

Programme

imposes

financial

obligations on the Centre as well as on the State Governments. Broadly, the proportions which have been fixed are 75 per cent for the Centre and 25 per cent for the State in respect of non-recurring expenditure, and 50 per cent each for Centre and States in respect of recurring expenditure. This applies to ' grants-inaid '. Loan amount is totally found by the Centre. After the three-year period, the Community Project areas are intended to become Development Blocks on the lines recommended for adoption in Chapter VI of the Grow More Food Enquiry 'Committee's Report. It is expected that in so far as the Community Project areas are concerned, the expenses of such development blocks will be borne entirely by State Governments after the third year. The expenditure, mostly recurring, is likely to be about Rs. 3 lakhs per project.

2) Second Five Year Plan The second five year plan was formulated keeping in mind the district as the main unit of planning and execution of rural development programmes. In the First Five Year Plan problems relating to the administration of district programmes were reviewed and a number of recommendations made. As was pointed out in the First Five Year Plan, apart from finding personnel and the need to adapt the administrative system to the temper of democratic government, the reorganisation of district administration had to provide for and the following tasks were of even greater importance for the second five year plan:

i.

establishment for development at the village level of an appropriate agency which derives its authority from the village community;

ii.

integration of activities of various development departments in the district and the provision of a common extension organisation; 49

iii.

linking up, in relation to all development work, of local self-governing institutions with the administrative agencies of the State Government;

iv.

regional

coordination

and

supervision

of

district

development

programmes; and v.

Strengthening

and

improvement

of

the

machinery

of

general

administration. Village Planning and Village Panchayats: The preparation of the first five year plan in the States took place mainly at State headquarters. Subsequently, attempts were made to break up State plans into district plans. It has been recognised that unless there is comprehensive village planning which takes into account the needs of the entire community, weaker sections like tenantcultivators, landless workers and artisans may not benefit sufficiently from assistance provided by the Government. Rural progress depends entirely on the existence of an active organisation in the village which can bring all the people— including the weaker sections into common programmes to be carried out with the assistance of the administration.

These considerations were taken into account in the preparation of the second five year plan. Early in 1954 State Governments were requested to arrange for the preparation of plans for the second five-year period for individual villages and groups of villages such as tehsils, talukas, development blocks, etc. It was essential that local initiative in formulating plans and local effort and resources in carrying them out should be stimulated to the maximum extent possible. This would help to relate the plans to local needs and conditions and also to secure public participation and voluntary effort and contribution. Village planning was to be concerned primarily with agricultural production and other associated activities, including cooperation, village industries, communications and other local works programmes. These suggestions were generally followed and in all States village plans and district plans were prepared and formed a basis of the draft plans presented by State Governments. 50

The methods adopted for preparing the second five year plan have provided valuable training both to the rural people and to rural officials associated with development. It was realized that the pattern of district administration envisaged in the national extension and community development programme would remain incomplete unless village institutions are placed on a sound footing and are entrusted with a great deal of responsibility for carrying out local programmes. The experience of setting up ad hoc bodies in villages to implement development programmes has also reinforced this conclusion. The development of village panchayats on the right lines has significance for several reasons. Under the impact of new developments, including the growth of population, land reform, urbanization, spread of education, increase in production and improvements in communications, village society is in a state of rapid transition. In emphasizing the interest of the community as a whole and in particular the needs of those sections which are at present handicapped in various ways, village panchayals along with cooperatives, played a considerable part in bringing about a more just and integrated social structure in rural areas and in developing rural leadership. In the First Five Year Plan it was recommended to enable panchayats to play their part in organizing village development programmes, legislation should confer on them certain functions relating to village production programmes and the development of village lands and resources. During the second plan this proposal had been further examined. The functions of village panchayats were distinguished

broadly between

two

groups,

administrative

and

judicial.

Administrative functions were divided conveniently between (1) civic, (2) development, (3) land management and (4) land reforms. The civic functions of panchayats were embodied in legislation in different States in more or less similar terms. They include such tasks as village sanitation, registration of births, deaths, etc., organisation of village watch and ward, construction, maintenance and lighting of village streets, etc.

51

The functions of village panchayats in relation to development were set out as follows during the second five year plan:—

i.

framing programmes of production in the village;

ii.

in association with cooperatives, framing budgets of requirements for supplies and finance for carrying out programmes;

iii.

acting as a channel through which an increasing proportion of government assistance reaches the village:

iv.

developing common lands such as waste lands, forests, tanks, etc., including measures for soil conservation;

v.

construction, repair and maintenance of common village buildings, public wells, tanks, roads, etc.;

vi.

organisation of mutual aid and joint effort in all activities;

vii.

promotion of cooperative societies;

viii.

organising voluntary labour for community works;

ix.

promoting small savings; and

x.

Improvement of livestock.

The functions of panchayats in respect land management were: i.

regulation of the use of common lands such as waste lands, forests, abadi sites, tanks, etc.;

ii.

cultivation of lands set apart for the benefit of the village community, as in consolidation of holdings;

iii.

adaptation of standards of good management and cultivation to local conditions and their enforcement; and

iv.

association with the work of maintenance of land records;

v.

determination of land to be allotted to owners and tenants on the exercise of rights of resumption for personal cultivation,

vi.

determination of surplus lands on the application of ceilings on agricultural holdings, and

vii.

redistribution of surplus lands arising from the imposition of ceilings. 52

During the second plan period the judicial functions of panchayats were decided as follows: i.

the administration of civil and criminal justice,

ii.

enforcement of minimum wages for agricultural workers, and

iii.

simple disputes pertaining to land.

In drawing up the second five year plan it was agreed that a State plan should include the maximum extent possible all programmes to be implemented by the State Government or by public authoriftes such as local bodies or by special boards set up within the State. This course was adopted because in the second five year plan one of the most important aspects was the preparation of plans at various levels below that of the State, that was, for individual villages, towns, talukas, tahsils or extension blocks and districts. It was recognised that both at the district and at the State level three kinds of programmes sponsored on behalf of public authorities would be included in the plan, namely,

a. programmes intiated at the level in question, e.g. taluka, district and State. b. programmes initiated at lower levels and integrated with those in (a), and c. programmes initiated at levels above and integrated with (a), for instance, schemes sponsored by the Central Government but execute] through States or schemes sponsored by the State Government andimplemented through machinery available in the district.

3) Third Five Year Plan The focus of the third five year plan was Housing and Rural Planning. Improvement in housing conditions in the villages has a manifold significance. It raises the level of living, provides greater opportunities for work and is a vital element in the transformation of rural life. Yet, because of the magnitude of the problem and its inherent difficulties the task of improving housing conditions in 53

the villages has to be viewed, not as an isolated objective, but as a part of the larger scheme of rural development. Consequently, rural housing is intrinsically a part of community development and village planning. The specific programme for rural housing as such is intended to supplement the resources of the community development movement at the level of the block and the village by way of assistance in the form of technical advice, demonstration, provision of improved designs and lay-outs, better use of local materials and, to a limited extent, provision of finance. Its essential object is to help create healthy environmental conditions for all sections of the village population and for balanced development of rural life as a whole. It is against this background that the village housing scheme which was introduced in 1957 has to be considered and its working reviewed.

The village housing scheme provides for the selection of villages in groups of four to six and the preparation of lay-out plans for these villages after carrying out physical and socio-economic surveys. The implementation of lay-out plans and rebuilding of houses is taken up in stages so that the entire village is remodelled over a period of 8-10 years. Cooperatives for the manufacture of different building components are organised. Assistance in the shape of loans up to 662/3 percent of the cost of construction subject to a maximum of Rs. 2000 per house is given for building of houses. Loans are also given for carrying out improvements in existing houses in accordance with the standards prescribed by the State Governments. Provision has also been made in the scheme for acquisition of land required for streets, community buildings, new house sites and for thinning out densities etc. Research-cum-training centers have been established at six centers for promoting research in improving local building materials and construction techniques and for training personnel required for executing the scheme. The rural housing cells set up in the States for preparing lay-out plans and model designs etc. have been further strengthened.

54

During the Second Five Year Plan about 3700 villages were selected and soc'oeconomic and physical surveys of about 2000 villages. were completed. Lay-out plans of 1600 villages were drawn up and loans amounting to Rs. 3-6 crores were sanctioned for construction of about 15,400 houses. About 3000 houses were completed and the remaining houses were under different stages of construction.

In the working of the village housing scheme during the Second Plan it has been observed that as a rule the scheme has been taken up in isolated villages and not in groups of villages as was envisaged in the scheme. The latter aspect is important because it is only when a small' group of villages is taken up together that it is possible to arrange to set up a brick kiln or arrange for the supply of components on a cooperative basis to meet a continuing demand. The full impact of a housing programme in the rural area by way of increase in employment and improvement in environmental conditions cannot be obtained unless the programme is undertaken systematically in groups of adjoining villages. Lay-out plans are at present prepared generally for se'ected villages. They provide for the extension of the village site, improved village streets and drainage and land for such common amenities as the village school, the playground for school children and the panchayat bhavan. However, not enough is being done in these directions, and the available funds tend to be devoted mainly to the construction and improvement of a small number of houses. It is suggested that the first clain on the resources provided for the village housing scheme should be on account of the extension of the village site, improvement of roads and drainage and allotment of land for essential purposes of interest to the community as a whole. The key to improved housing is the availability of land for the extension of village site. To the greatest extent possible, the community itself, through mutual arrangement. Should be expected to provide the additional land required. However, for assisting the community to acquire land for providing house sites for agricultural workers and Hariinns it may be useful, as suggested later, to provide for a limited measure of assistance. The first place in the programme for 55

improving village housing should be given to housing for Harijans, agricultural workers and those sections of the community whose housing conditions are especially deplorable. For scheduled tribes and scheduled castes in particular, besides funds available under the village housing scheme, assistance by way of subsidy is also given under the programme for the welfare of backward classes. Provisions under the two programmes should be utilised in a coordinated manner.

Rural housing cells, which have been set up in the States, and research-cumtraining centres are already engaged in designing, houses suited to different parts of the country, and involving the use of local materials. Work in these directions has to be intensified. There is frequently a temptation to resort to houses on urban patterns constructed in brick and cement without sufficient emphasis being placed on the use of local materials, economy of construction cost, cultural traditions and background of the locality and functional requirements of rural life. There is also inadequate stress on community effort in improving roads and drainage, contribution by way of land for the extension of the village site and mutual aid in constructing improved housing. The scale of the rural housing problem is so vast that provision of additional funds by itself, necessary as this may be, can produce only a small impact. In the main problem is one of creating a widespread desire for better living, evolving practical methods for improving the village environment and building better houses at relatively small cost based mainly on cooperative self-help, community effort and contribution and the use of local building materials. In the Third Plan it will be essential to link up the programme more closely with different schemes of community development such as provision of water supply, roads, drainage, public health, education etc. It is also necessary that rural housing activities should be effectively coordinated with other connected programmes of rural development so as to ensure that the villages selected under the village housing scheme derive the maximum benefit from the limited 56

resources which are available. For example, the subsidy admissible under the programme for ameliorating the living conditions of scheduled castes and scheduled tribes should be made available to members of these communities residing in the villages selected under the scheme. Village and small industries should also be set up to the extent possible in the selected villages. Special attention has to be given to the setting up of brick-kilns and local production of building components, such as doors, windows, etc. For this purpose, cooperatives should be organised, and they should be given technical assistance and materials such as wood and coal-dust. A number of new villages are coming up on account of reclamation of large tracts of land and development of new areas for agriculture. It should be ensured that the lay-out plans of such villages are prepared in advance and they develop in a planned way. In the case of existing villages where the problem is, in part, one of redevelopment, the success of the programme will depend upon their proper selection. The scheme already lays down that amongst other considerations preference will be given to (a) villages which are situated in flood-affected areas, (b) villages which have substantial populations of backward classes and agricultural labourers, (c) villages in which consolidation of holdings has been completed or in which programmes for increasing agricultural production are being successfully implemented, and (d) villages whose inhabitants happen to be displaced because of major development projects or natural calamities. Villages which have concentrations of artisans should also be given preference. Evidence of cooperative self-help and willingness on the part of the village community to contribute land for the extension of the village site and to give priority to the housing of Harijans and other backward classes should be important considerations in the selection of villages suitable for a programme of village housing. In selected villages in which these conditions are fulfilled, with a view to facilitating the total effort that is called for, it may be necessary to give a limited amount of assistance by way of grant to the village panchayat for undertaking the

57

improvement of village streets and drainage as an essential step in the programme for replanning the village as a whole.

4) Fourth Five Year Plan The major thrust of the fourth five year plan was Cooperation and Community Development. The volume of cooperative credit (short and medium-term) for agricultural purposes increased from Rs. 203 crores in 1960-61 to Rs. 429 crores in 1967-68 and an estimated Rs. 490 crores in 1968-69. Long-term credit increased from Rs. 12 crores in 1960-61 to about Rs. 120 crores in 1968-69. Appreciable progress took place in the cooperatively organised processing of agricultural produce mainly in the sector of sugar factories, which now account for about a third of the total sugar production. The value of agricultural inputs distributed by cooperatives rose from about Rs. 36 crores in 1960-61 to rbout Rs. 250 crores in 1968-69. Of the inputs, the largest item consists of fertilisers and the value of these distributed by the cooperatives increased from about Rs. 28 crores in 1960-61 to needy Rs. 200 crores in 1968-69, representing about 60 per cent of the total consumption of fertilisers in the country. The total value of agricultural prod 'ce handled by cooperative marketing and processing societies rose from Rs. 174 crores in 1960-61 to an estimated Rs. 583 crores in 1968-69. The value of retail consumer trade undertaken by cooperatives in rural areas recorded an increase from Rs. 17 crores in 1960-61 to Rs. 275 crores in 196869. The corresponding figures for turn-over in urban areas were Rs. 40'crores in 1960-61 and Rs. 270 crores in 1968-69. Apart

from

quantitative

progress,

there

were

several

organisational

developments of significance during this period. One of them was the emergence of national cooperative federations. The formation of the national federations and the reorganisation of the National Cooperative Union of India at the apex, added a new dimension to the cooperative structure. Another important development was the reorganisation of the cooperative training programme. This had two main 58

aspects. A new stress was laid on instruction in business management. In pursuance of this objective, a Central Institute was started at Bombay in 1964 to impart training in business management to key personnel engaged in consumer cooperation. This was merged in 1967 with
Approach to Cooperative Development: Growth with stability being the keynote of the Fourth Plan, agricultural cooperatives on the one hand and consumer cooperatives on the other will occupy a central position in the strategy of cooperative development. Growth of agriculture is largely dependent-on intensive agriculture and this involves a substantial increase in credit, inputs and services. The aim will be to ensure that the services which the farmer requires are institutionalised to the greatest extent possible. In the process of such instilutionalisation, which will not be to a set pattern, the cooperative form of organisation will have ample opportunities not only to expand but also to establish itself as viable and efficient. It will be part of policy during the Fourth Plan to ensure that the opportunities before cooperatives are as large and varied as they can utilise effectively. While it will be for the cooperatives themselves to make the effort involved and reach those standards of efficiency which will enable them to compete with other forms of organisation serving similar purposes, Government for its part will endeavour to assist the cooperatives +o eouio themselves for the f'-k in important aspects such as finance, organisation 59

and trained personnel. In regard to agro-industries, preference will continue to be given to cooperatives in the matter of licensing and institutional finance. In the Fourth Plan one of the main endeavors was to orient the policies and procedures of credit cooperatives and land development barks in favour of small cultivators. The All India Rural Credit Review Committee made a number of recommendations in this direction. These were sought fu be implemented, the more important changes being in the following directions:

i.

If the resources available to a particular society are inadequate to meet the requirements of all its members, it will seek to ensure that the needs of the small cultivators are adequately met on a priority basis.

ii.

The larger cultivators will be called upon to contribute a relatively higher proportion of their borrowings towards share capital while the smaller cultivators will invariably be extended the facility of paying their share amount in convenient instalments.

iii.

Stress will be laid on effective implementation of crop loan system. To ascertain whether the small farmer is receiving adequate attention, it is intended that the credit limit statements are so separated so as to identify small farmers vi^-a-vis others.

iv.

Loaning policies of land development banks will be liberalised, e.g., liberalisation in respect of valuation of landed property offered as security, issue of joint loans for groups of small cultivators, emphasis on the operational and economic viability of the proposed investment and not merely the value of tangible security and phasing of the repaying programme in accordance with the capacity of the small cultivators.

v.

Bigger cultivators who can repay loans in shorter periods will be encouraged to avail of medium term credit for investment, so that larger volume of long-term credit can be made available for small farmers from land development banks.

60

Rural Electric Cooperatives: One of the significant developments contemplated in the Fourth Plan relates to the involvement of the cooperative form of organization in the programme of rural electrification. Pilot rural electric cooperatives are in the process of being set up in five States. The licensing of these cooperatives is among the functions allotted to the Rural Electrification Corporation. The objectives of the cooperatives include the supply of electricity for agricultural and agro-industrial purposes and the encouragement of active participation of the people by giving them some degree of control on electricity supply. Community Development and Panchayati Raj: The Community Development programme was started in 1952. It now covered the whole country. Its remained the block and its aim that of achieving rural development through people's paricipation and initiative. The assistance from Government, so far as resources would allow, took the shape of a budget grant for the block and a team of extension workers under a Block Development Officer. The latter was to coordinate all schemes of a developmental character within the block. In the integrated programme, divided into stages of five years each, agricultural development occupied the foremost position. During this plan the step was taken that of attempting to weld together Panchayati Raj and Community Development. This objective followed from the acceptance of the recommendations of the Study Team of the Committee on Plan Projects (Balwantrai Mehta Committee). The three-tier Panchayati Raj system, together with its modifications in different States, thus set the pattern of local development administration. At each level—village or group of villages, block or group of blocks, and district—there was to be a link between the administrative apparatus and elected representatives.

New Dimensions: With all their drawbacks, the Community Development Programme and Panehayati Raj institutions had provided a new dimension to 61

rural development and introduced a structural change of- considerable importance in the district administration. Within the limitations of resources the present plan attempted to do something which in many cases, had never before been attempted. Improvement of agriculture has remained in the forefront throughout. Investment from the available block funds on agricultural development has over the years almost equaled the provisions for all other sectors of development taken together. In many States, the block organisation was virtually the only field agency for carrying out development programmes. There was sizeable contribution from local communities to the developmental effort. There was considerable flexibility with regard to the type of organisation, contents of programme and extent of resources. Also important was continued emphasis on priority programmes such as agriculture and family planning. The State Plans accordingly provide Rs. 84.69 crores for programme of community development. Simultaneously, there was progressively larger devolution of programmes and resources by the States. Pilot Study on Growth Centers: As a part of studies on area planning, a centrally sponsored scheme of Pilot Research Project in Growth Centres was launched. The aim of the pilot project was to evolve a broad research methodology and pattern for identifying emerging growth centres, and to indicate how the growth potential of these centres could be promoted through comprehensive and scientific study of the overall development needs, and how these centres could be meaningfully woven into the frame of the district plan and thus help in the process of planning from below. The scheme was thus brought under close study action strategies relevant to the acceleration of infergrated area development around potential growth centres. Number of projects were taken up in different areas in the States and Union Territories. Few projects were located in institutions working on planning methodology. To facilitate integration with district planning, the growth centres were located in districts for which detailed plans in terms of guidelines and norms provided by the Planning Commission were drawn up. 62

5) Fifth Five Year Plan 20-Point Programme: The 20-Point Economic Programme was announced by the Prime Minister on 1st July, 1975. The various constituents of the 20-Point Economic Programme, especially those which require financial investment, were identified. Priority was accorded to the implementation of the schemes falling under this programme. Minor Irrigation: According to the outlays available to the states for the first three years of this plan maximum potential of nearly 3'4 million hectares was created during the first three years of the Plan. The provision made in the following two years of the Plan almost equals the provision in the first three years. Soil and Water Conservation: The programme for treatment of area in river valley catchment of major reservoirs and other soil and water conservation programme made a late start. A considerable step-up in outlays for implementation of these programmes were made for the remaining two years'of the Fifth Plan. In some of the States, soil and water conservation programmes were also been taken up with institutional credit support and the targets of physical performance are likely to be achieved.

Area Development:

This important programme for optimizing the use of

irrigation water and utilisation of the potential created from selected commands of major irrigation works also took time to make a start. Command Area Development Authorities were set up and other infrastructure facilities developed. Therefore, the provision in the Central sector would be almost 22 per cent higher for the remaining two years as compared to the outlays for the first tnree years. The provisions in the respective states adequately match the provision made in the Central sector.

63

Forestry: Taking note of the fact that forestry development was assumed a significant dimension as a source of timber and fuel and for the maintenance of the natural ecological system, special programmes for social forestry and economic plantations have been given high priority. Accordingly, for the remaining two years of the plan, the provision made was almost double the outlays provided for in the first three years of the Plan. Adequate provision has also been made for 'project Tiger' and for the development of National Parks and for strengthening the reserch programme in the forestry sector.

Animal Husbandry and Dairy Farming: There had been some delay in giving a start to the special livestock development programmes through small and marginal farmers and agricultural labourers. By and large the targets under production oriented projects such as intensive cattle development projects, intensive poultry production-cum-marketing centres, sheep and wool extension centres and fluid milk plants and milk product factories are expected to be achieved in full. There are 85 subsidised projects for cross-breed calf rearing, 57 poultry production projects, 45 piggery production projects and 38 sheep production projects through small and marginal farmers and agricultural labourers in 148 districts. Intergrated milk production-cum-marketing projects would be implemented in the States of Meghalaya, Assam, Sikkim, Himachal Pradesh, J and K, Orissa and Kerala as a second phase of the 'Operation Flood' project. Emphasis will continue to be laid on cross-breeding in cattle through establishment of exotic cattle breeding farms and intensive artificial insemination measures. Particular emphasis will be laid on scientific poultry breeding programme. Programmes for the control of rinderpest and foot and mouth disease would be continued. Fisheries: There was delay in the start of a few projects but the targets for mechanisation of boats, production of fish seed and development of fishing harbours were expected to be achieved in full A special Trawler Development Fund will be created in order to helo, in particular, smaller entrepreneurs and 64

cooperatives to purchase and operate trawlers for marine fishries. Fish Farmers Development Agencies were started in the states for augmenting inland fish production and exploitation of water bodies in rural areas.

Research and Education: The research priorities in different fields of crop production and animal husbandry were maintained to yield new innovations in developing farm level technology. The coordinated research programmes were suitably strengthened with the active participation of the Agricultural Universities in different States. A new research complex was established in the north-eastern region. New institutes were also been established for strengthening cotton research and for developing research programmes on farm tools, equipment and machinery. Provisions were made for projects with collaboration of agencies of United Nations. The Educational programmes have been further strengthened by setting up new Agricultural Universities which now number 21 covering 16 States.

6) Sixth Five Year Plan The major thrust of the Sixth Five Year Plan was on strengthening the socioeconomic infrastructure of development in the rural areas, alleviating rural poverty and reducing regional disparities. The specific programmes and strategies were adopted during the Plan period. Main important initiative of this particular plan was special employment and income generation programmes for the rural poor, special area development programmes and the institutional means for rural development. Strategy for the Sixth Plan: Alleviation of rural poverty was the prime objective of the Sixth Plan. An increase in the productive potential of the rural economy was an essential condition for finding effective solutions to the problems of rural poverty. At the same times, recognising the constraints which limit the scope for higher growth rate in medium-term, more direct means of reducing the incidence of poverty and destitution were employed. It was well known that the hard core of 65

poverty was to be found in rural areas. The poorest sections belonged to the families of landless labourers, small and marginal farmers, rural artisans, Scheduled Castes, Scheduled Tribes and socially and economically backward classes. House-holds below the poverty line were assisted through an appropriate package of technologies, services and asset transfer programmes. The strategy and methodology for accelerated rural development were follows:

i.

increasing production and productivity ifl agriculture and allied sectors;

ii.

resource and income development of vulnerable section of the rural population through development of the primary, secondary and tertiary sectors;

iii.

skill formation and skill upgrading programmes to promote self and wage employment amongst the rural poor;

iv.

facilitating adequate availability of credit to support the programmes taken up fcr the rural poor;

v.

promoting marketing support to ensure the viability of production programmes and to insulate the rural poor from exploitation in the marketing of their products;

vi.

provision of additional employment opportunities to the rural poor for gainful employment during the lean agricultural season through a national rural employment programme (NREP);

vii.

provision of essential minimum needs; and

viii.

Involvement of universities, research and technical institutions in preparing a shelf of projects both for self-employment and NREP and in preparing strategies for the scientific utilisation of local resources.

Three broad categories of these programmes namely (1) Resource and income development programme for the rural poor, (2) Special Area development programme and (3) Works programme for creation of

supplementary

employment opportunities were introduced during this plan period which were

66

directly aimed at the development of the target group of the rural poor and the principal institutional instruments relevant therefore. Integrated Rural Development Program: It was proposed that multiplicity of programmes for the rural poor operated through a multiplicity of agencies should be ended and be replaced by one single integrand programme operative throughout the country. The programme was called the Integrated Rural Development Programme (IRDP). Of the 350 million people below the poverty line in the country, around 300 million are in the rural areas. These consist largely of the landless labourers, small and marginal farmers, rural artisans, and other workers. The hard core of poverty is constituted by the marginal farmers, agricultural labourers (about half of whom are landless), rural artisans and fishermen constituting nearly one-third of the rural work force. Possessing little or virtually no assets, they need to be enabled to acquire productive assets and/or appropriate skills and vocational opportunities and then backed effectively with services to increase production and productivity. The main objective of the IRD programme was to evolve an operationally integrated strategy for the purpose, on the one hand, of increasing production and productivity in agriculture and "allied sectors based on better use of land, water and sunlight, and on the other, of the resource and income development of vulnerable sections of the population in all the blocks of the country. Since the bulk of the rural poor are landless or marginal farmers, a significant part of the activities for their benefit was given to the non-farm sector.

Drought Prone Area Programme: the DPAP covering 557 blocks spread over 74 districts in the country was an integrated area development programme in agricultural sector aimed at optimum utilisation of land, water and livestock resources, restoration of ecological balance and stabilising the income of the people particularly the weaker section of the society. Some of the important elements of the programme were:

67

i.

Development and management of water resources.

ii.

Soil and Moisture conservation measures.

iii.

Afforestation with special emphasis on social and farm forestry.

iv.

Development of pasture lands and range management in conjunction with development of sheep husbandry. (v) Live-stock development and dairy development.

v.

Restructuring of cropping pattern and changes in agronomic practices, and

vi.

Development of subsidiary occupations.

The Desert Development Programme: DDP aimed at checking further desertification of the desert areas and raising productivity of the local resources to raise the income and employment levels of the local inhabitants. The programme was implemented both in the hot and cold arid zones of the country during the Sixth Plan. The emphases were on arresting desertification through activities which restore ecological balance, stabilize sand dunes, and facilitate soil and water conservation. Plantation of shelter belts, adoption of water harvesting techniques and development of pastures to sustain the livestock economy will be vigorously pursued. Exploitation of the natural resources of these areas will be closely linked to replenishment of these resources; It is proposed to encourage innovative use of land for fodder crops, pastures and fuel and fodder plantations. This diversification can substantially improve the economy of the desert areas in keeping with the ecological requirements of the area. In the cold arid zones of Ladakh and Spiti, irrigated agriculture and improved animal husbandry practices were among the activities encouraged.

The Desert Development Programme: DDP aimed at checking further desertification of the desert areas and raising productivity of the local resources to raise the income and employment levels of the local inhabitants. The programme was implemented both in the hot and cold arid zones of the country during the Sixth Plan. The emphasis were on arresting desertification through 68

activities which restore ecological balance, stabilise sand dunes, and facilitate soil and water conservation. Plantation of shelter belts, adoption of water harvesting techniques and development of pastures to sustain the livestock economy will be vigorously pursued. Exploitation of the natural resources of these areas will be closely linked to replenishment of these resources; It is proposed to encourage innovative use of land for fodder crops, pastures and fuel and fodder plantations. This diversification can substantially improve the economy of the desert areas in keeping with the ecological requirements of the area. In the cold arid zones of Ladakh and Spiti, irrigated agriculture and improved animal husbandry practices were among the activities encouraged.

7) Seventh Five Year Plan Alleviation of rural poverty has always been one of the primary objectives of planned development in India. Ever since the inception of planning, the policies and the programmes have been designed and redesigned with this aim. The problem of rural poverty was brought into a sharper focus during the Sixth Plan. The Seventh Plan too emphasised growth with social justice. It was realised that a sustainable strategy of poverty alleviation has to be based on increasing the productive employment opportunities in the process of growth itself. However, to the extent the process of growth bypassed some sections of the population, it is necessary to formulate specific poverty alleviation programmes for generation of a certain minimum level of income for the rural poor. And taking this fact into consideration the seventh plan was formulated. Integrated Rural Development Program: This scheme was launched in the Sixth Plan. Its assessment at the end of the Sixth Plan period revealed several shortcomings. Keeping this in view and the feed-back received from the State Governments, suitable changes were introduced in the guidelines for the IRDP in the Seventh Plan. The poverty line was based at Rs.6400, but those eligible for assistance under the IRDP had to have an average annual income of Rs.4800 or less. It was assumed that those households with income levels between Rs.4800 69

and Rs.6400 would be able to rise above the poverty line in the process of growth itself. It was targetted that 20 million families would be assisted under IRDP during the Seventh Plan of which 10 million were new households and 10 million old beneficiaries who had been unable to cross the poverty line and required a second dose.

During the Seventh Plan, me subsidy expenditure on IRDP was Rs.3316 crores which was in excess of the target of Rs.3000 crores. The total investment including the institutional credit amounted to Rs.8688 crores. In quantitative terms, the physical achievement of about 18 million households fell short of the original target of 20 million households but exceeded the cumulative target which was only 16 million families. The sectoral composition indicates that, of all the schemes selected under IRDP, 44 per cent were in the primary sector, 18.5 per cent in the secondary sector and 37.5 per cent in the tertiary sector. A system of concurrent evaluation of the IRDP programme was also introduced under which data were collected by independent research institutions for the entire country on a sample basis. State wise details of performance are available. The findings suggest that the IRDP was quite successful in terms of providing incremental income to poor families. However, the number of households able to cross the poverty line was relatively small. It may be partly due to the low levels of initial investment. Training of Rural Youth for Self Employment: TRYSEM was introduced to provide technical skills and to upgrade the traditional skills of rural youth belonging to families below the poverty line. Its aim was to enable the rural youth to take up self- employment ventures in different spheres across sectors by giving them assistance under IRDP. During the Seventh Plan about 10 lakh youth were trained under TRYSEM, of which 47 per cent took up selfemployment and 12 per cent wage employment. The remaining 41 per cent could not avail of either. On the other hand, a sizeable proportion of IRDP beneficiaries 70

who needed training could not receive it. In fact, only 6 to 7 per cent of IRDP beneficiaries were trained under TRYSEM. During 1990-91 the number of youth trained was 2.6 lakhs, of which 70 per cent got employed.

Development of Women and Children in Rural Areas (DWACRA): DWACRS an exclusive scheme for women was launched in the IRDP, as a pilot project, in 50 districts. In the Seventh Plan it was extended to more districts and at the end of the Seventh Plan period it was in operation in 161 districts. Under DWCRA, a group of women are granted assistance to take up viable economic activities with Rs. 15,000 as a one-time grant to be used as a revolving fund. In the Seventh Plan about 28,000 groups could be formed against the target of 35,000 with a membership of 4.6 lakh women. During 1990-91, against a target of 7,500 groups, 7,139 were actually formed. In principle, this scheme is a sound one; in operationalising it the impadt has been inadequate. This is perhaps due to 'a lack of cohesion among women groups formed under DWCRA and their inability to identify activities that could generate sustained incomes. In this sphere, the role of voluntary organisations would be crucial in organising women to take up group-based economic activities which are viable within the context of an area development plan. Experiments in some States to form women's thrift and credit societies first, and then start them on economic work were successful.

Rural Landless Employment Gaurentee Programme (RLEGP): This was a totally Centrally financed programme introduced in 1983. While most of the objectives and stipulations under this were similar to those of NREP, it was to be limited only to the landless, with guaranteed employment of 100 days. Moreover, there was earmarking of funds specifically for certain activities- 25 per cent for social forestry, 10 per cent for works benefitting only the Scheduled Castes/Scheduled Tribes and 20 per cent for housing under Indira Awaas Yojana. In the Seventh Plan, Rs.2412 crores were spent and 115 crore mandays 71

were generated with an average expenditure of Rs.21.00 per manday. Only 16 per cent had been spent on social forestry but 22 per cent had been spent on housing,- with over 5 lakh houses created for SC/ST and freed bonded labourers. Rural roads accounted for 22 per cent while other construction, minor irrigation, soil conservation etc. each had a small share. Jawahar Razgar Yojana (JRY): During the Seventh Plan, JRY was launched with a total allocation of Rs. 2600 crores to generate 931 million mandays of employment. The primary objective of the programme was generation of additional employment on productive works which would either be of sustained benefit to the poor' or contribute to the creation of rural infrastructure. Under this programme, Centre's contribution was 80 per cent, and 20 per cent was the State's share. The JRY was implemented in all villages in the country.

Central assistance was provided to the States on the basis of proportion of the rural poor in a State/UT to the total rural poor in the country. From the States to the districts, the allocations were made on an index of backwardness which was formulated on the following basis:

i.

20 per cent weightage for the proportion of agricultural labourers in the total workers in the rural areas.

ii.

60 per cent weightage to the proportion of rural scheduled castes and tribes population in relation to the total rural population; and

iii.

20 per cent weightage to the inverse of agricultural productivity.

Of the total allocations at the State level 6 per cent of the total resources are earmarked for housing under the Indira Awaas Yojana (IAY) which are allotted to the scheduled castes and scheduled tribes and freed bonded labour. In addition, 20 per cent are earmarked for Million Wells Scheme (MWS). In fact, this scheme was launched as a special feature both under NREP and RLEGP in 1988-89. The objective was to provide open wells, free of cost, to poor SC/ST farmers in 72

the category of small and marginal farmers, and to free bonded labourers. However, where such wells are not feasible, the amounts allotted may be utilised for other schemes of minor irrigation like irrigation tanks, water harvesting structures and also for development of lands of SCs/STs and freed bonded labourers including ceiling surplus and bhoodan lands. Land Reforms: During this plan period the following Land Reforms majors were taken: i.

Abolition of intermediaries;

ii.

Tenancy reforms with security to actual cultivators;

iii.

Redistribution of surplus ceiling land;

iv.

Consolidation of holdings; and

v.

Updating of land records.

Voluntary Action:

Recognizing the important role of voluntary agencies' in

accelerating the process of social and economic development, the Seventh Plan placed a great deal of emphasis on people's participation and voluntary action in rural development. The role of voluntary agencies has been defined as providing a basis for innovation with new approaches towards integrated development, ensuring feed-back regarding impact of various programmes and securing the involvement of local communities, particularly, those below the poverty line. The need for a cadre of trained animators and social organisers was recognised and a massive programme for training the identified persons was prepared with the help of establishing Voluntatry Organisations.

Further, the scheme of

organisation of beneficiaries of anti-poverty programmes which was undertaken on a pilot -basis for two years from 1986-87 was continued during the Seventh Plan period. This scheme was intended to increase the awareness and strengthen the bargaining position of the beneficiaries of anti-poverty programmes so as to help them get the maximum benefits from the programmes meant for their economic uplift. This was to be done through awareness generation camps, which were organised with the assistance of voluntary organisations. 73

8) Eighth Five Year Plan Elimination of poverty continued to be a major concern of development planning. Expansion of employment opportunities, augmentation of productivity and income levels of both the underemployed and employed poor would be the main instrument for achieving this objective during the Eighth Plan. Given the enhanced outlay for

\

rural development' in the Eighth Plan, resources were

utilised for building up of rural infrastructure, which was an essential pre-requisite for a more sustained employment and development. All weather roads were given priority, particularly in tribal, hill and desert areas, where inaccessibility to markets and to information and input was a severe bottle-neck. Minor irrigation works and water harvesting structures were vital in order to conserve the scarce water and schemes for soil conservation and social forestry would go a long way in reducing soil erosion and top soil water cup - off as well as wherever required school buildings and primary health centres and sub-centres were constructed.

Land Reforms: Land, the single most important asset in rural India and given the present state of agricultural technology even a small farm can be viable, both in terms of employment and income of a family. The need for land reforms was recognised at the time of independence and has been reiterated in the successive Five Year Plans. The Seventh Plan enunciated land reforms to be an intrinsic part of the anti-poverty strategy.

The importance of land reforms

continues to be significant. Its main tenets are abolition of intermediaries, security of tenure for tenant -cultivators, redistribution of land by imposition of a ceiling on agricultural holdings, consolidation ofholdingc and updating of land records. The Eighth Plan therefore addressed itself to the factors that have come in the way of realising the goals of land reforms policy. First, it would aim at ensuring that an atmosphere is created whereby the actual cultivators were made aware of their rights and enabled to claim their benefits. Secondly, it would encourage steps to be taken for early detection of surplus lands. Thirdly, it would be necessary to ensure that the newly acquired lands are brought under profitable agronomic 74

practices, thus meeting the twin objectives of poverty alleviation and output growth. The management of land records and the skills and capabilities of the lower level official machinery would need to be given the necessary support of resources and modernisation so that they help, rather than hinder, the evolution of an equitable agrarian order. The land reform program introduced with the following objectives:

i.

Restructuring of agrarian relations to achieve egalitarian social structure;

ii.

Elimination of exploitation in land relations;

iii.

Actualisation of the goal of "land t,o the tiller";

iv.

Improvement of socio-economic conditions of the rural poor by widening their land base;

v.

Increasing agricutural productivity and production;

vi.

Facilitating land-based development of rural poor; and

vii.

Infusion of greater measures of equality in local institutions.

Integrated Rural Development Programme (IRDP): During the Eighth Five Year Plan the total allocation (Centre and State) under IRDP was Rs.5048.29 crore and the total investment amounted to Rs.11541.06 crore. In quantitative numbers, 10.82 million families were covered under IRDP against the initial target of 12.6 million families fixed for the entire Eighth Plan period. However, from 1995-96 physical targeting under the programme was abolished with the focus shifting to financial targets and qualitative parameters. Of the families covered 50.06 per cent were Scheduled Castes/Scheduled Tribes and 33.59 per cent women. The coverage of women was still lower than the target of 40 per cent.

At the instance of the Ministry of Rural Development, the Reserve Bank of India appointed in 1993, a High Powered Committee under the Chairmanship of Dr. D.R. Mehta, Deputy Governor of Reserve Bank of India to make an in-depth study of IRDP and recommend suitable measures for its improvement. The 75

Committee was asked to review among other factors, the process of selection of appropriate income generating assets, credit structure, recovery of loans, and procedural matters in respect of obtaining loans, and efficacy of existing administrative structures of the District Rural Development Agencies (DRDAs). In consonance with the recommendations of the High Powered Committee, the new initiatives taken by Government under IRDP in the Eighth Plan included (a) targeting the segment of literate unemployed youth below the poverty line for IRDP activities by giving them subsidy upto Rs.7500 or 50 per cent of the project cost (whichever is lower) (b) promotion of group activities through enhancement of ceiling on subsidy to Rs.1.25 lakh or 50 per cent of the project cost (whichever is lower) for all group ventures involving at least 5 members (c) back-ending of subsidy to prevent leakages in subsidy administration (d) shifting the emphasis to financial targets and qualitative parameters from a perfunctory physical coverage of families and (e) enhancing the limit of allocation to programme infrastructure from 10 per cent to 20 per cent in all the States and 25 per cent in the North Eastern States.

There was considerable diversification of IRDP activities during eighth plan period. Initially, a majority of the beneficiaries under the programme subscribed to primary sector activities. In 1980-81 the sectoral composition of IRDP activities was heavily skewed towards the primary sector which had a sponsorship of 93.56 per cent, while the share of the secondary and tertiary sectors were 2.32 per cent and 4.12 per cent respectively. Over the years, the share of the primary sector has come down considerably and is currently around 55 per cent, while the shares of the secondary and tertiary sectors have increased proportionately to 15 per cent and 30 per cent respectively.

Training of Rural Youth for Self-Employment (TRYSEM): With a view to strengthening this programme, several initiatives were taken in the Eighth Plan which include, among others, an increase in the stipend and honorarium rates; emphasis on professionalised training through the established and recognised 76

institutes like ITIs, Community Polytechnics, Krishi Vigyan Kendras etc., exploring the possibilities of setting up production groups from amongst TRYSEM trainees for undertaking ancillary activities like manufacture and assembly of modern items of production; utilisation of TRYSEM infrastructure funds for the strengthening of Nirmithi Kendras (Rural Building Centres) sponsored by HUDCO for training of youth under TRYSEM in the trades of low cost housing and the setting up of mini-ITIs at the block level to strengthen the training infrastructure for the rural youth. Jawahar Rozgar Yojana (JRY): During eighth plan period JRY was further streamlined. In the revised strategy, the First Stream of JRY was continued in its existing form but Indira Awaas Yojana (IAY) and Million Wells Scheme (MWS) which were till then sub-schemes of JRY were made independent schemes. The Second Stream of JRY, which was being implemented in 120 backward districts in the country, was merged with the Employment Assurance Scheme (EAS) introduced in 1775 selected backward blocks of the country in 1993-94 in view of the similarity in these programmes. The Third Stream of JRY with its thrust on innovative projects was continued. Accordingly, the JRY is now being implemented in two parts i.e. (i) the Jawahar Rozgar Yojana (Main Scheme); and (ii) Special and Innovative Project. Employment Assurance Scheme (EAS): The Employment Assurance Scheme was launched on 2nd October, 1993 in 1775 identified backward blocks situated in drought prone, desert, tribal and hill areas, in which the revamped public distribution system was in operation. Subsequently, the scheme was extended to additional blocks which included the newly identified Drought Prone Area Programme (DPAP)/Desert Development Programme (DDP) blocks, Modified Area Development Approach (MADA) blocks having a larger concentration of tribals, and blocks in flood prone areas of Uttar Pradesh, Bihar, Assam and Jammu & Kashmir. In addition, 722 non-EAS blocks previously covered under Second Stream of Jawahar Rozgar Yojana (JRY) were also brought under the 77

EAS. The EAS has since been universalized to cover all the rural blocks in the country with effect from 1.4.1997. The main objective of the EAS is to provide about 100 days of assured casual manual employment during the lean agricultural season, at statutory minimum wages, to all persons above the age of 18 years and below 60 years who need and seek employment on economically productive and labour intensive social and community works. The works are to be selected by the District Collector and implemented through the line departments in such a manner that the ratio of wage to the non-wage component would stand at 60:40. Sectoral norms for execution of various works arewatershed development (50 per cent) and agro-horticulture, minor irrigation works (10 per cent) in DPAP and DDP blocks or water & soil conservation including afforestation, agro-horticulture and silvipasture (40 per cent), and minor irrigation works (20 per cent) in non-DPAP/non-DDP blocks. In addition, funds were also earmarked for link roads featuring in the Master Plans developed in the respective districts for this purpose (20 per cent) and public community buildings in rural areas as per the felt needs of the districts (20 per cent). The village panchayats are involved in the registration of persons seeking employment and the panchayats maintain these registers. They also coordinate and monitor the works. A maximum of two adults per family are to be provided employment under the scheme. The applicants, who register themselves for employment under the EAS, were issued family cards in which the number of days of employment are entered as and when such employment is given to them. Million Wells Scheme (MWS): In India, though the small and marginal farmers, with holdings of less than 2 hectares, account for about 78 per cent of the total operational holdings, they only cultivate about 32.2 per cent of the cropped area (Agricultural Census 1990-91). To increase the productivity of these holdings they must be ensured an assured source of water supply. Ground water made available through wells is an important source especially in the remote areas of the countryside, where canal or tank irrigation is not feasible. Though the fixed capital investment in well irrigation is fairly high, it has many advantages such as 78

flexibility in operation, dependability of source, timing of water deliveries and low conveyance losses. The Million Wells Scheme (MWS) was launched as a sub-scheme of the National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP) during the year 1988-89. After the merger of the two programmes in April 1989 into the Jawahar Rozgar Yojana (JRY), the MWS continued as a sub-scheme of JRY till December 1995. The MWS was delinked from JRY and made into an independent scheme with effect from 1.1.1996. The scheme was primarily intended to provide open irrigation wells, free of cost, to individual, poor, small and marginal farmers belonging to Scheduled Castes/Scheduled Tribes and freed bonded labourers with a 20 per cent earmarking of JRY funds. Tubewells and borewells are not permitted under the Scheme. Where wells are not feasible due to geological factors, other minor irrigation works can be undertaken such as irrigation tanks, water harvesting structures as also development of land belonging to small and marginal farmers. From the year 1993-94 the scope of the MWS has been enlarged to cover nonScheduled Castes/non-Scheduled Tribes small and marginal farmers who are below the poverty line and are listed in the IRDP register of the village. The sectoral earmarking which was 20 per cent upto 1992-93 had also been raised to 30 per cent from 1993-94 with the stipulation that the benefits to non-Scheduled Castes/Scheduled Tribes would not exceed one third of the total funds utilised during the year. National Social Assistance Programme (NSAP):

The National Social

Assistance Programme (NSAP) came into effect from 15th August, 1995. The programme represents a significant step towards the fulfillment of the Directive Principles in Articles 41 and 42 of the Constitution through the enunciation of a National Policy for social assistance benefits to poor households in the case of 79

old age, death of the primary breadwinner and maternity. It is a Centrally Sponsored Scheme with 100 per cent Central assistance provided to States/UTs.

This programme had three components: namely (i) National Old Age Pension Scheme (NOAPS); (ii) National Family Benefit Scheme (NFBS); and (iii) National Maternity Benefit Scheme (NMBS) which are targeted at people living below the poverty line. Under the National Old Age Pension Scheme (NOAPS), old age pension of Rs.75 per month is provided to persons of 65 years and above who are destitutes. The National Family Benefit Scheme (NFBS) provides a lump sum family benefit of Rs.10,000 to the bereaved household in case of the death of the primary bread winner irrespective of the cause of death. This scheme is applicable to all the eligible persons in the age group 18 to 64. Under the National Maternity Benefit Scheme (NMBS) there is a provision for payment of Rs.500 per pregnancy to women belonging to poor households for pre-natal and post-natal maternity care upto the first two live births. This benefit is provided to eligible women of 19 years and above.

9) Ninth Five Year Plan Poverty eradication has always been one of the major objectives of planned development. The magnitude of the problem is still quite staggering. Thirty six per cent of the Indian population was below poverty line (BPL) in 1993-94, the latest year for which the data are available and the absolute number of poor was 320 million, out of which 244 million (37 per cent of the rural population) lived in rural areas. The incidence of poverty declined from 54.9 per cent in 1973-74 to 36 per cent in 1993-94. But the absolute number of poor did not decline much over this period of 20 years. There were 321 million poor in 1973-74 and 320 million in 1993-94; in the rural areas the corresponding numbers were 261 million and 244 million.

80

The main determinants of poverty were identified as (i) lack of income and purchasing power attributable to lack of productive employment and considerable underemployment and not to lack of employment per se; (ii) a continuous increase in the price of food, especially foodgrains which account for 70-80 per cent of the consumption basket; and (iii) inadequacy of social infrastructure, affecting the quality of life of the people and their employability. Considering this background of progress and challenges of rural development the ninth plan was formulated with the major focus of poverty alleviation program and Public Distribution system. The Government recognises that high growth of incomes is by itself not enough to improve the quality of life of the poor. Unless all the citizens of the country, and most particularly the poor, have certain basic minimum services, their living conditions cannot improve. These minimum services include among other things literacy education, primary health care, safe drinking water and nutritional security. The Government had convened a meeting of Chief Ministers to identify such basic minimum services and a list of seven services had unanimously been agreed upon. These seven services are safe drinking water, primary health facilities, universal primary education, nutrition to school and pre- school children, shelter for the poor, road connectivity for all villages and habitations, and the Public Distribution System (PDS) with a focus on the poor. The Ninth Plan lays special emphasis on these seven basic minimum services and will make all efforts to achieve a minimum level of satisfaction in providing these in partnership with the State Governments and the Panchayati Raj Institutions (PRIs). Direct poverty alleviation programmes were considered important and were planned to be continued on an expanded scale in the Ninth Plan. But these programmes would be oriented towards strengthening the productive potential of the economy and providing more opportunities for involving the poor in the economic process. Broadly, there would be schemes for income generation through supplementary employment, for the welfare of the poor in rural/urban

81

areas and for a targeted PDS system to ensure that the poor have access to food grains at prices they can afford. New Initiatives under IRDP during Ninth Plan:

i.

IRDP was made holistic programme covering all aspects of selfemployment, namely, organisation of beneficiaries and their capacity building, planning of activity clusters, infrastructure, technology, credit and marketing.

ii.

Sub-schemes of TRYSEM, DWCRA, SITRA and GKY were merged into IRDP.

iii.

Progressive shift from the individual beneficiary approach to the group and/or cluster approach.

iv.

To facilitate group approach SHGs were formed and steps were taken to nurture them.

v.

For cluster approach each district had to identify 4 to 5 activity clusters in each block based on local resources and occupational skills of the people. The infrastructure needs for the identified activities were met in full.

vi.

The Banks were involved in the planning and preparation of projects, identification of activity clusters, infrastructure planning as well as capacity building and choice of activity of the SHGs.

vii.

Promotion of multiple credit rather than one time credit injection.

Land Reforms: In the Ninth Plan the issue of agrarian restructuring was continued to receive the top most priority in the expectation that the States would be able to facilitate changes that would make for more efficient agriculture, leading to increases in both output and employment. This process contributed to the achievement of a higher rate of economic growth with social justice. The main components of the land reform policy were the detection of ceiling surplus land and the distribution of the existing surplus land, besides tenancy reform, consolidation of holdings, providing access to the poor on common lands 82

and wastelands, preventing the alienation of tribal lands and providing land rights to women. Ceiling on Land Holdings: With the introduction of the Land Ceilings Act in 1972, the ceiling on land holdings was introduced in almost all the States with the exception of some North-Eastern States, though the ceiling limit varied depending on the quality of the land. The ceiling surplus land was to be distributed among the landless poor. In this way, land ceiling was considered an important instrument for reducing disparities in the ownership of land and as a way of increasing productivity through greater utilisation of labour. As observed in the UNDP Human Development Report 1996, as land is redistributed from big to small farms, not only the family labour per hectare can increase sharply, so, can hired labour also. For both the reasons, the employment situation improves even for those, who remain landless after the land reform. The main conclusion from this is that an agricultural strategy centered on small farms, rather than large, simultaneously increases the social efficiency of resource use in agriculture and improves social equity through employment creation and more equal income distribution that small farms generate. Protection of Tribal Land: Despite the commitment that the tribal lands must remain with the tribals, alienation of the tribals from their land continues on a large scale due to various legal loopholes and administrative lapses. Hence, during the Ninth Plan periof legal provisions were made for the prevention of alienation of tribal lands and for their restoration, not only in the notified scheduled tribe areas but also in the tribal lands in other areas. Also, the regulations of resale of the tribal lands were made as stringent as possible. Anti-Poor Laws and Policies: Over time, the expenditure on the various poverty alleviation programmes has increased significantly. It is true that these programmes play a vital role in ensuring that the poor are able to sustain themselves, particularly during the lean seasons, through generation of additional employment and incomes. However, it is becoming increasingly clear that 83

spending money is not the only way of ameliorating the conditions of the poor. Scant attention has been paid to the role of non-monetary policies and institutional arrangements which affect the lives of the common people, especially the poor. There are several laws and policies which are anti-poor. An exercise was conducted during ninth plan period to document some of these laws and policies. In the Ninth Plan, an attempt was made to initiate the process of identifying anti-poor laws/policies, Statewise. These would be brought to the notice of the policy makers, local governments and NGOs so that these may be suitably modified and/or repealed in the interest of the poor. Integration of Poverty Alleviation Programmes with Sectoral Programmes: So far, there has been a complete dichotomy between various sectoral as well as poverty alleviation programmes that have been planned and implemented by the concerned line departments. The Government has recognised this dichotomy but greater efforts have to be made to effect the convergence in practice. As a start, an attempt has been made to integrate DPAP and DDP, EAS and the Integrated Wasteland Development Programme (IWDP), all being implemented by a single Ministry. Watersheds are to be constructed and associated works of drainage, land development and terracing undertaken. Also, afforestation, agro-based and horticultural development,

pasture

development,

crop

demonstration

for

popularising new crops/varieties and upgrading of common property resources are being taken up. Clearly, there is scope for integrating other sectoral programmes of soil and water conservation, forestry, minor irrigation, animal husbandry, agriculture and other departments, funds from which flow from sectoral heads to the district level. Once the area plans are prepared, dovetailing of funds would not pose a problem. Institutional Mechanism for Delivery: Consequent to the 73rd Constitutional Amendment Act, State Governments enacted enabling legislations providing for local bodies at the village, intermediate and district levels. In almost all the States with the exception of Bihar the PRIs have been duly constituted. The State 84

Governments are required to endow these PRIs with the requisite financial and administrative powers to enable them to function as institutions of selfgovernment. The PRIs would be responsible for preparing the plans for economic development and social justice through the District Planning Committee and for implementing them, in respect of the items listed in the Eleventh Schedule of the Constitutional Amendment. This process of devolution is at various levels of operationalisation for individual States. It is expected, that in the Ninth Plan, the States would devolve funds on the panchayats both from the Consolidated Funds of the States and the allocations made by the Central Government for Centrally Sponsored Schemes. In addition, the panchayats have to be given their own revenue raising powers, as per the recommendations of the State Finance Commissions. It is expected that village level plans would be prepared, based on the felt needs of the people as articulated in the Gram Sabha meetings. These plans would be incorporated into the intermediate level plans and finally merged into a district plan. This district plan would then enable the dovetailing of funds from the various sectoral poverty alleviation and area development programmes. In this way, development planning would begin from below reflecting the aspirations of the people within the constraints of the available physical and financial resources.

10)

Tenth Five Year Plan

At the beginning of the new millennium, 260 million people in the country did not have incomes to access a consumption basket which defines the poverty line. Of these, 75 per cent were in the rural areas. India is home to 22 per cent of the world’s poor. Such a high incidence of poverty is a matter of concern in view of the fact that poverty eradication has been one of the major objectives of the development planning process. Indeed, poverty is a global issue. Its eradication is considered integral to humanity’s quest for sustainable development. Reduction of poverty in India, is, therefore, vital for the attainment of international goals. 85

Poverty alleviation has been one of the guiding principles of the planning process in India. The role of economic growth in providing more employment avenues to the population has been clearly recognized. The growth-oriented approach has been reinforced by focusing on specific sectors which provide greater opportunities to the people to participate in the growth process. The various dimensions of poverty relating to health, education and other basic services have been progressively internalized in the planning process. Central and state governments have considerably enhanced allocations for the provision of education, health, sanitation and other facilities which promote capacity-building and well-being of the poor. Investments in agriculture, area development programmes and afforestation provide avenues for employment and income. Special programmes have been taken up for the welfare of scheduled castes (SCs) and scheduled tribes (STs), the disabled and other vulnerable groups. Antipoverty programmes that seek to transfer assets and skills to people for selfemployment, coupled with public works programmes that enable people to cope with transient poverty, are the third strand of the larger anti-poverty strategy. The targeted public distribution system (TPDS) protects the poor from the adverse effects of a rise in prices and ensures food and nutrition security at affordable prices. Tenth Plan has set a target for reduction of poverty and creation of high quality gainful employment during the Plan period. The projected GDP growth rate of 8 per cent for the period 2002-07, if achieved, would lead to reduction of incidence of poverty by 5 percentage points by 2007. Compared to 1999-2000, poverty is expected

to

decline

by

15

percentage

points

by

2011-12.

Effective

implementation of anti-poverty programmes would be central to achieving the planned reductions in poverty. The challenge before the State is to provide employment opportunities which provide enhanced incomes. This becomes more important in view of the fact that substantial additions to labour force are expected to take place during the next five years. Enlargement of self and wage86

employment programmes and their effective delivery becomes an imperative in such a scenario. Self Employment Programmes: the coverage of beneficiaries in the Ninth Plan was considerably lower than the coverage under SGSY. The formation of selfhelp groups by itself contributes to the empowerment and economic well-being of the poor by improving their collective bargaining position. The group formation also emphasizes social capital and enables the poor to interact with other social groups from a position of strength. Group formation would continue to be the focus under the SGSY. The self-help groups move through various stages: social mobilisation and formation of groups (initial phase); savings and internal lending among the members of the group on their own, augmented by revolving fund grants from the government and linkages with banks and other credit agencies (second phase); obtaining micro finance (third phase) and setting up of micro enterprises (fourth phase). This is a long process and groups require time to mature as cohesive units. The inadequacies of formal credit institutions was tried to be overcomed by combining the strength of commercial banks with the intermediation capabilities of NGOs to effectively link the poor with the commercial banking channels. This would be a cost-effective alternative for providing credit to the poor as banks would be able to reach a larger number of small borrowers with lower transaction costs. The risk of default on loans would be lower due to group pressure and the groups would also monitor the end use of credit. Access to banks through selfhelp groups would reduce the transaction cost of the borrowers. In the credit delivery system under SGSY, financial intermediation by NGOs would be encouraged. The experience of Self Employed Women’s Association (SEWA) and other organisations was replicated on a larger scale. Wage Employment Programme: The SGRY was the single wage employment programme. Allocations to the programme would be stepped up. The programme 87

would seek to provide productive employment opportunities in employmentintensive sectors. The Government would endeavour to generate a shelf of projects for execution under SGRY that fits into the overall development plan of an area. A large number of rural facilities have been built under various programmes over successive Plan periods. However, they have degenerated either due to their initial faulty design and construction, or lack of maintenance. Therefore, a specific proportion of allocations under SGRY would be used for the maintenance of assets. PRIs would play a major role in the planning, implementation and monitoring of

wage employment programmes and

allocations under the SGRY would be routed through them. A rational criterion would have to be evolved for distribution of funds between the three tiers of the PRIs to ensure balanced development of villages, blocks and districts. Rural Housing: Though the IAY is one of the successful programmes being implemented by the Ministry of Rural Development, it has certain weaknesses. The provision of free houses has meant that other loan-based schemes have not been able to take off. The scheme has also been open to misuse. Public funds have to be utilised for the promotion of economic activity and growth. The creation of employment opportunities, both selfemployment and wageemployment, has to receive a higher priority than provision of free houses. During the Tenth Plan period, free houses under IAY would be provided largely to SC/ST BPL families. For other BPL families, there would be a gradual shift to a credit-linked housing programme. There is a need to create institutional capability in the rural housing sector with reference to designing of houses, supply of raw materials and construction. The rural communities have to be involved in the layout and design of the houses. The houses should have provisions for rain water harvesting, water supply and sanitation.

88

Social Security Schemes: While the NSAP and state-level welfare schemes had provided some succour to the poor in the form of assistance to the old and the bereaved, a large section of people have not been covered under the schemes because of limited resources. The NSAP was enlarged in scope to cover all eligible beneficiaries. The content and coverage of the social welfare scheme would have to be strengthened during the Plan period to provide meaningful protection to the poor. There are a plethora of welfare schemes in both the central and state sectors. They lead to avoidable overlap and confusion and need to rationalised. Since welfare is basically a state subject, these schemes are best administered by state governments. The NSAP was transferred to states with earmarked funds in the Tenth Plan. Land Reforms: Successive Five-Year Plans have addressed the issue of secure rights in land for increased agricultural productivity under the land reforms programme. Land reform legislations, besides abolishing intermediaries and providing ownership rights to farmers, also provided for security of tenure to tenants and regulation of rent. Actual cultivators were brought into a direct relationship with the State. The abolition of intermediaries succeeded in providing ownership rights to a large number of tenants. The advent of the green revolution technology coupled with schemes of asset transfer under IRDP has contributed significantly to the increased incomes not only from agricultural operations but also on account of diversification into animal husbandry. During this plan period another variant of this approach has been adopted in a few watersheds. While the landholders get water for irrigation, the non-land owning families get a larger share of output from the Common Property Resources (CPRs) which get rejuvenated after the successful completion of the project. This has enabled many families to take up animal husbandry as an occupation and meet their fodder and fuel requirements from the CPRs. Fishing rights on ponds constructed as part of the watershed project are only given to self-help groups of the landless. These arrangements effectively increase the 89

access of the poor to the land and other sources of livelihood and improve their standard of living. During this plan period successful projects changed the nature of agricultural land from un-irrigated to irrigated. In such cases, the ceiling laws of the state could come into force and the ceiling surplus land could be distributed to the landless poor. Alternatively, the guidelines for watershed development projects were modified to give priority to those watershed projects where the village community, through a resolution, agrees to provide land access to the landless labourers on a continuing basis. Delivery Mechanism: The increasing integration of India in the global economy, the budget constraints faced by both central and state governments and inefficiencies in the administrative structure led to the development of a consensus to devolve powers to local institutions to enable people’s participation in administration. The 73rd and 74thConstitutional Amendments that conferred statutory status on PRIs and urban local bodies did not have only democratic decentralisation as their objective. These institutions were also seen as a process for harnessing and channelising the people’s innate abilities to bring about rural transformation in a way that every individual acquired his/her rightful place in the social, economic and political arena.

11)

Eleventh Five Year Plan

India is a nation with over 300 million poor people,a number that has barely declined over the last three decades of development. It is therefore essential that the Eleventh Five Year Plan address the task of reducing the numbers of the poor frontally. It is clear that rapid growth will be essential to reduce the number of the poor and for sustainable poverty reduction, but for growth to benefit the poor disproportionately, it will have to be accompanied by more rapid employment expansion than hitherto, greater investment in health, education, 90

water/sanitation, and child nutrition than so far, and directly targeted povertyreduction programmes. The thrust of this plan was rapid poverty reduction. Inclusive Growth:

Given the chronic and multi-dimensional nature of poverty in

India, it is imperative that the programmes to address poverty rely on a multipronged approach. The preceding analysis has identified that there is a geography of poverty, with poverty being concentrated in the rural areas of certain States. It also pointed out that there is a sociology of poverty, with certain social groups increasingly concentrated among those who are identified as poor. It also noted that there are identifiable occupational features of the poor: they are concentrated in agricultural labour and artisanal households in rural areas, and among casual labourers in urban areas. Casual labourers in urban areas are essentially distress migrants from rural areas in States where agricultural landman ratio is very adverse, and where agricultural incomes have not been growing reinforcing the need for both land reforms as well as measures to increase productivity. Inclusive growth strategy of eleventh plan concentrated Firstly, regions which have large number of chronic poor people include tribal in forests concentrated in arid, semi-arid, and sub-humid areas in central and eastern parts of the country. Second consideration was of the poor who are geographically concentrated in India. They also happen to be in States where a significant proportion of agriculture is irrigated, and not rain fed (and where the land-man ratio is the lowest in the country). In other words, without effective (i) land reforms and (ii) agricultural services, none of these regions are likely to be able to reduce poverty. Third group to be included in development process is considered those who are dependent on casual labour. Casual labour has grown, and a large proportion of the chronic poor are dependent on wage labour. There has been a steady increase in the share of the Indian population working as hired labour. All of the increase in recent decades has been due to the expansion of the share of casual hired labour. Most of these are SCs and STs. Finally it has been 91

recognized that the poor need a safety net, if they are to escape the cycle of inter-generational transfer of poverty. At least 18 million rural people do not have a home over their heads, and the rural housing programme needs to focus on giving a homestead to at least those who are houseless. Homesteads will not only give them a home, but also provide a small plot of land where they can diversify their income by rearing goats and poultry and growing vegetables on the family plot. Similarly, the elderly destitute, widows, and disabled among the rural poor, need social assistance. Guaranteed Wage Employment—National Rural Employment Guarantee Act (NREGA): NREGA is introduced as one of the major step in the direction of inclusive growth. Workfare programmes have been important programme interventions in India and elsewhere in developing countries since long. These programmes typically provide unskilled workers with short-term employment on public works. They provide income transfers to poor households during periods when they suffer on account of absence of opportunities of employment. In areas with high unemployment rates and under employment, transfer benefits from workfare programmes can prevent poverty from worsening, especially during lean periods. Durable assets that these programmes create have the potential to generate second-round employment benefits as requisite infrastructure is developed. The objective of the NREGA is to enhance the livelihood security of the people in rural areas by guaranteeing 100 days of wage employment in a financial year to a rural household whose members volunteer to do unskilled manual work. The Act further aims at creating durable assets and strengthening the livelihood resource base of the rural poor. The choice of works suggested in the Act address causes of chronic poverty like drought, deforestation, soil erosion, etc., so that the process of employment generation is on a sustainable basis. Self-Employment—Swarnjayanti Gram Swarozgar Yojana (SGSY): Persistent efforts made by the government to fine-tune the self employment programmes 92

during various Plan periods, especially oriented towards improving the implementation quality, yielded some new concepts that emerged at various times and got consolidated. The need to integrate the cluster approach, capacity building, skill upgradation, infrastructure including marketing development and technology penetration were felt more acutely with every passing year. Emphasis also was necessary to be laid on micro enterprise development with effective forward and backward linkages, so as to ensure best returns on the investment. Therefore, the SGSY was launched with effect from 1 April 1999 to bring the assisted poor families above the poverty line by ensuring appreciable sustained level of income over a period of time. This objective was to be achieved by organizing the rural poor into SHGs through the process of social mobilization, their training and capacity building and provision of income generating assets. The SHG approach helps the poor to build their self-confidence through community action. Group processes and collective decision were to enable them in the identification and prioritization of their needs and resources. This process would ultimately lead to the strengthening and socio-economic empowerment of the rural poor as well as improve their collective bargaining power. Eleventh Plan strategy for SGSY is to take the best out of what has evolved in the Self Help movement across the country over the last few years and integrate it with the programme. Likewise a few aspects of the SGSY programme that have failed to give the desired results given fresh look and if necessary, dropped. Considering the experiences and lessons learnt from various development projects, the revised SGSY programme should aim at promoting and strengthening

member-owned,

member-controlled,

and

member-managed

institutions of the poor that enable them to secure sustainable livelihoods and better quality of life. These institutions should provide a wide range of services to their members as per their demand. The revised SGSY should promote and nurture a large cadre of activists and leaders from the poor for providing support services to the institutions of the poor on a sustainable basis. The approach for organizing the poor stems from the conviction that there is an immense desire 93

and latent capability among the poor to come out of poverty. They have a tremendous potential to help themselves and the potential of each member can be harnessed by organizing them. Social mobilization enables the poor to build their own organizations in which they participate fully and directly and take decisions on all issues concerning poverty elimination.

VI – Concluding Note: Historical review of rural development gives us idea not only about different programmes of past but shows us the whole idea of changing and emerging concepts, approaches and strategies or its implementation. It becomes clear that the concept of Rural Development is interwoven in the heritage of Indian culture; it is as old as mankind. It dates back to seventeenth centaury with some voluntary efforts the from Quaker movement to freedom movement of India and other movements like Srinikiten, Martandam, Gurgaon Experiment, Baroda Experiment. The policies and programmes during and after the period of Gandhiji are highly influenced about his ideas and philosophy of Sarvodays, Village Development, All round Village services, Samagra Gram Seva, Panchayati Raj and non-violent economy etc. After independence the rural development has taken shape of well planned professional shape from voluntary kind of approach. It has become government affair with taking place in planning by planning commission. The review of first to eleven five year plan gives an idea of the importance and concern given to rural development. Various programmes and policies for rural development are introduced. Thus it has been understood that Rural Development was, is and will going to be a major concern for development policy, planning and implementation. Volunteered efforts before independence paved basis for concrete policies for rural development, be it creation of separate ministry, separate department in planning commission, legal framework, political will and one of the important national agenda today.

94

AP RURAL ECONOMY The economy of Andhra Pradesh is one of the fastest growing economies in India, with growth outstripping that of the wider Indian economy in the past few years. The GSDP at constant (2011-12) Prices for the year 2018-19 (Advance Estimates) is estimated at Rs.850,000 crores as against Rs.4,90,134 crores for 2015-16 (First Revised Estimates) indicating a growth of 11.61%. Per Capita Income at current prices increased to Rs.1,22,376 from Rs.1,08,163 in 2015-16 registering a growth of 13.14 percent. The economy is primarily dependent on agriculture, which directly and indirectly employs 62% of the population[3]. The state has been ranked the best state in ease of doing business in the country by the World Bank.

Andhra Pradesh Budget Analysis 2018-19 The Finance Minister of Andhra Pradesh, Mr. Yanamala Ramakrishnudu, presented the Budget for financial year 2018-19 on March 8, 2018.

Budget Highlights THE Gross State Domestic Product of Andhra Pradesh for 2018-19 (at current prices) is approximately Rs 8,70,326 crore.* This is 10% higher than the revised estimate for 2017-18. Total expenditure for 2018-19 is estimated to be Rs 1,91,064 crore, a 19.5% increase over the revised estimates of 2017-18. In 2017-18, there was an increase of Rs 2,823 crore (1.8%) in expenditure over the budget estimates. Total receipts (excluding borrowings) for 2018-19 are estimated to be Rs 1,57,599 crore, an increase of 25.4% as compared to the revised estimates of 2017-18. In 2017-18, total receipts (excluding borrowings) fell short of the budgeted estimate by Rs 1,328 crore. Revenue surplus for the next financial year is targeted at Rs 5,235 crore, or 0.6% of the Gross State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 24,205 crore (2.8% of GSDP). The departments of education, municipal administration and urban development, health, medical and family welfare are estimated to witness the highest increase in allocations over the previous year.

Policy Highlights A Youth Policy will be formulated for the implementation of youth empowerment and advancement programmes. Rs 1,000 crore is allocated for this purpose. A Mega Seed Park project is initiated to ensure availability of quality seeds to farmers at low cost, and to develop Andhra Pradesh as a global seed hub. Rs 100 crore is allocated for this purpose.

It is proposed to launch a new livestock insurance scheme to insure 10 lakh animals. Rs 50 crore is allocated for this purpose. It is proposed to provide pucca housing to every poor person in urban areas by 2022. Rs 1,000 crore has been allocated to the Andhra Pradesh Township and Infrastructure Development Corporation Ltd. Rs 1,168 crore is allocated to complete two out of four nodes (Visakhapatnam and Srikalahasti-Yerpedu) under the Visakhapatnam-Chennai Industrial Corridor.

Andhra Pradesh Economy Economy: The growth in GSDP of Andhra Pradesh has been increasing from 7% in 2013-14 to 11.2% in 2017-18. The services sector, with a share of 44%, in the GSDP grew by 9.1% in 2017-18 over the previous year. Agriculture, which contributes to 34% of the GSDP, grew by 17.8% in 2017-18. Industries, with a share of 22%, grew by 8.5% in 2017-18. Per capita income: The per capita income of Andhra Pradesh in 2017-18 (at current prices) is Rs 1,42,054. This is more than the average national per capita income of Rs 1,12,764 in 2017-18. Budget Estimates for 2018-19 

The total expenditure in 2018-19 is targeted at Rs 1,91,064 crore. This is 19.5% higher than the revised estimates of 2017-18. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,57,599 crore, and borrowings of Rs 33,461 crore. Total receipts for 2018-19 (other than borrowings) are expected to be 25.4% higher than the revised estimates of 2017-18.

% change from BE 2016-17 2017-18 2017-18 2018-19 Items 2017-18 to Actuals Budgeted Revised Budgeted RE of 201718 Total Expenditure 1,66,699 1,56,999 1,59,822 1.8% 1,91,064 A. Borrowings 59,923 30,020 30,500 B. Receipts (except 1,06,959 1,26,968 1,25,640 borrowings) Total Receipts (A+B) 1,66,882 1,56,988 1,56,140 Revenue Deficit -17,194 -416 -4,018 (-)/Surplus (+) As % of GSDP -2.5% -0.1% -0.5% Fiscal Deficit -30,909 -23,054 -27,603 (-)/Surplus (+) As % of GSDP -4.5% -2.9% -3.5%

% change from RE 2017-18 to BE 2018-19 19.5%

1.6%

33,461

9.7%

-1.0%

1,57,599

25.4%

-0.5%

1,91,060

22.4%

866.3%

5,235

-230.3%

0.6% 19.7%

-24,205 -2.8%

-12%

Primary Deficit

-19,211 -8,272 -12,847 55.3% -9,128 -28.9% (-)/Surplus (+) As % of GSDP -2.8% -1.0% -1.6% -1.0% Notes: GSDP has been calculated based on public debt as % of GSDP as given in the budget in brief document. BE is Budget Estimate; RE is Revised Estimate. Sources: Andhra Pradesh Budget Documents 2018-19; PRS. Expenditure in 2018-19 

Capital expenditure for 2018-19 is proposed to be Rs 40,792 crore, which is an increase of 25.3% over the revised estimates of 2017-18. This includes expenditure which affects the assets and liabilities of the state, and leads to creation of assets (such as bridges and hospitals), and repayment of loans, among others.

In 2018-19, Andhra Pradesh estimates to spend Rs 25,836 crore on centrally sponsored schemes.

In 2017-18, there was a decrease of Rs 2,492 crore (11%) in the expenditure towards centrally spons 



Revenue expenditure for 2018-19 is proposed to be Rs 1,50,272 crore, which is an increase of 18.1% over revised estimates of 2017-18. This expenditure includes payment of salaries, maintenance, etc. In 2018-19, Andhra Pradesh is expected to spend Rs 25,928 crore on servicing its debt (i.e., Rs 10,851 crore on repaying loans, and Rs 15,077 crore on interest payments. This is 11.4% higher than the revised estimates of 2017-18.

Table 2: Expenditure budget 2018-19 (Rs crore) Item

% change from % change from 2016-17 2017-18 2017-18 2018-19 BE 2017-18 to RE 2017-18 to Actuals Budgeted Revised Budgeted RE 2017-18 BE 2018-19

Capital 50,520 31,088 32,550 4.7% Expenditure Revenue 1,16,178 1,25,912 1,27,272 1.1% Expenditure Total 1,66,699 1,56,999 1,59,822 1.8% Expenditure A. Debt 34,776 8,009 8,525 6.4% Repayment B. Interest 11,697 14,783 14,756 -0.2% Payments Debt Servicing 46,473 22,792 23,281 2.1% (A+B) Notes: BE is Budget Estimate; RE is Revised Estimate. Sources: Andhra Pradesh Budget Documents 2018-19; PRS. Department expenditure in 2018-19

40,792

25.3%

1,50,272

18.1%

1,91,064

19.5%

10,851

27.3%

15,077

2.2%

25,928

11.4%

The departments listed below account for 54% of the total budget of Andhra Pradesh in 201819. A comparison of Andhra Pradesh’s expenditure on key sectors with 18 other states can be found in the Annexure. Table 3: Sector-wise expenditure for Andhra Pradesh Budget 2018-19 (Rs crore)

Department

% change from RE 2016-17 2017-18 2018-19 2017-18 Actuals Revised Budgeted to BE 2018-19

Budget Provisions for 2018-19



Education

17,461

20,225

24,961

Teaching grants for payment of salaries in Mandal Praja Parishads and Zilla Praja Parishads account for 64% of the allocation under school education.

23.4% 

Rs 1,799 crore is allocated for Sarva Shiksha Abhiyan. This is 30% more than the revised estimate in 2017-18. 

Rural Development 18,574 and Panchayati Raj

21,687

23,439

8.1%



Rs 14,705 crore has been allocated for rural development. This includes Rs 4,200 crore for NTR Pensions for old age persons and widows. Rs 8,733 has been allocated for panchayati raj. This includes Rs 1,450 crore for Swachh Bharat Mission Gramin. This is 26% less than the revised estimates of 201718.



Water Resources 10,638

Agriculture and Cooperation

6,691

15,511

8,057

16,978

10,097

Rs 9,994 crore has been allocated for the Polavaram project. This is 55% more that the revised estimates for the project in 2017-18.

9.5%



Rs 4,100 crore is allocated for providing debt waiver to farmers. This is 14% more than the allocation in 2017-18.



Rs 1,102 crore is allocated for Pradhan Mantri Krishi Sinchayi

25.3%

Yojana. This is 20% more than the revised estimate in 201718. 

Health, Medical and Family Welfare Municipal Administration and Urban Development Home

6,332

5,073

4,727

6,542

5,049

5,451

8,464

7,741

6,227

29.4%



Backward Classes Welfare

4,118

4,783

6,213



Rs 800 crore allocated for Smart Cities: Visakhapatnam, Kakinada, and Tirupati.



Rs 173 crore allocated for modernization of police forces.

53.3%

14.2%

29.9%

Rs 1,956 crore allocated for National Health Mission. This is 33% more than the revised estimate in 2017-18.

Rs 1,146 crore is allocated for pre-matric scholarships. This is 10% more than the allocation in the 2017-18.

% of total 44% 55% 54% expenditure Total 1,66,699 1,59,822 1,91,064 expenditure Notes: BE is Budget Estimate; RE is Revised Estimate. Source: Andhra Pradesh Budget Speech 2018-19 and Demands for Grants; PRS. 



In 2018-19, the department of municipality administration and urban development saw the highest growth (53.3%) in allocation. This is followed by the department of backward classes welfare (29.9%), and the department of health, medical and family welfare (29.4%). In 2017-18, the department of water resources saw an increase of 21.5% (Rs 2,740 crore) in expenditure at the revised stage. On the other hand, the department of education, saw a decrease of 4.2% (Rs 884 crore) in expenditure at the revised stage.

Receipts in 2018-19

Between 2012-13 and 2018-19, the share of non-tax revenue in the total revenue receipts of Andhra Pradesh 



The total revenue receipts for 2018-19 are estimated to be Rs 1,55,507 crore, an increase of 26.2% over the revised estimates of 2017-18. Of this, Rs 70,882 crore will be raised by the state through its own resources (46% of the revenue receipts), and Rs 84,626 crore will be devolved by the centre in the form of grants and the state’s share in taxes (54% of the revenue receipts). Non Tax Revenue: Andhra Pradesh has estimated to generate Rs 5,347 crore through nontax sources in 2018-19. This is an increase of 34% over the revised estimates of 2017-18. In 2017-18, the estimated revenue from fell short by 21.7% at the revised stage. This was due to a fall in collections from the sale of red sandalwood.

Table 4: Break up of state government receipts (Rs crore)

Item State's Own Tax State's Own Non-Tax Share in Central Taxes Grants-in-aid from Centre Total Revenue Receipts Borrowings

% change % change 20162017-2018 2017-18 from BE 2018-2019 from RE 2017 Budgeted Revised 2017-18 to Budgeted 2017-18 to Actuals RE 2017-18 BE 2018-19 44,181 53,717 52,716 -1.9% 65,535 24.3% 5,193

5,092

3,989

-21.7%

5,347

34.0%

26,264

29,139

29,001

-0.5%

33,930

17.0%

23,346

37,548

37,548

0.0%

50,696

35.0%

-1.8%

1,55,507

26.2%

1.6%

33,461

9.7%

62.1%

2,091

-12.3%

4.4%

35,552

8.1%

-0.5%

1,91,060

22.4%

98,984 59,923

1,25,496 1,23,254 30,020

30,500

Other receipts 7,975 1,472 2,386 Total Capital 67,897 31,492 32,886 Receipts Total Receipts 1,66,882 1,56,988 1,56,140 Notes: BE is Budget Estimate; RE is Revised Estimate.

Sources: Andhra Pradesh Budget Documents 2018-19; PRS.

The central government will compensate state governments for any revenue loss due to the implementation of G

In 2018-19, Andhra Pradesh has estimated to receive Rs 2,000 crore from the central government a

The state is estimated to receive Rs 1,000 crore in 2017-18 (revised estimates). Note that, it had not estimated any compensation  

Tax Revenue: The total own tax revenue of Andhra Pradesh is estimated to be Rs 65,535 crore in 2018-19. The composition of the state’s tax revenue is shown in Figure 2. The tax to GSDP ratio is targeted at 7.5% in 2018-19, which is higher than the revised estimate of 6.6% in 2017-18. This implies that growth in collection of taxes is expected to be higher than the growth in the state economy. 

Figure 2: Composition of Tax Revenue in 2018-19 (BE)



Sales Tax is expected to be the largest (59%) component of Andhra Pradesh’s own tax revenue in 2018-19. It is expected to generate Rs 38,448 crore. This is 17% more than the revised estimates in 2017-18. The state is expected to generate Rs 7,492 crore (11%) through the state goods and services tax (SGST). Further, it is expected to raise Rs 7,358 crore from the state excise duty, which is levied on the manufacture of alcohol.



Tax revenue will also be generated by levying stamp duty on real estate transactions, taxes on vehicles, and land revenue.

Deficits, Debts and FRBM Targets for 2018-19 The Andhra Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government. Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. The budget estimates a revenue surplus of Rs 5,235 crore (or 0.6% of GSDP) in 201819. This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus. The estimate indicates that the state is expected to meet the target of eliminating revenue deficit, as prescribed by the 14th Finance Commission. Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government and leads to an increase in total liabilities. In 2018-19, fiscal deficit is estimated to be Rs 24,205 crore, which is 2.8% of the GSDP. The estimate is within the 3% limit prescribed by the 14th Finance Commission. The Finance Commission had recommended that this limit may be relaxed to a maximum of 3.5% if states are able to contain their debt and interest payments to certain specified levels. Outstanding Liabilities: It is the accumulation of borrowings over the years. In 2018-19, the outstanding liabilities are expected at 28.7% of the GSDP. Table 5: Budget targets for deficits for Andhra Pradesh (% of GSDP) Year

Revenue

Fiscal

Deficit ()/Surplus (+) -2.5%

Deficit ()/Surplus (+) -4.5%

Outstanding Liabilities

28.8% 2016-17 2017-18 -0.5% -3.5% 28.4% (RE) 2018-19 0.6% -2.8% 28.7% (BE) Sources: Andhra Pradesh Budget Documents 2018-19; PRS. Figures 3 and 4 show the trend in deficits and outstanding liabilities targets from 2016-17 to 2018-19: The graphs below compare Andhra Pradesh’s expenditure on four key sectors as a proportion of its total budget, with 18 other states. Education: Andhra Pradesh has allocated 14.8% of its total budget on education in 201819. This is lower than the average expenditure allocated to education by 18 other states (using 2017-18 BE).

  





Between 2016-17 and 2018-19, there is a gradual increase in the spending on education from 13.2% to 14.8%. Rural development: Andhra Pradesh has allocated 6.7% of its expenditure on rural development. This is higher than the average (5.6%) of the 18 other states. In 2017-18, spending on rural development was estimated to account for 8.7% of the total budgeted expenditure. However, there was a substantial fall in expenditure at the revised stage (5.9%). Health: Andhra Pradesh has allocated 4.9% of its total expenditure on health, which is marginally higher than the average expenditure of 18 other states. Further, the overall trend in spending on health has been constant. Between 2016-17 and 2018-19, the state spent between 4.5%-5% of its total budget on health. Agriculture: The state has allocated 4.7% of its total budget towards agriculture and allied activities. This is lower than the allocations of 18 other states (6.4%). Further, this is also a sharp drop in spending on agriculture from 6.1% in 2016-17 within the state.

Source: Annual Financial Statement (2017-18 and 2018-19), various state budgets; PRS. [1] The 18 states apart from Andhra Pradesh are: Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal. 

Agriculture Agriculture has been the chief source of income and main occupation for the state with 60% of population engaged in agriculture and related activities. Rice is the major food crop and staple food of the state. Other important crops are sugarcane, cotton, mango, tobacco, Maize, pulses etc. Four important rivers of India, the Godavari, Krishna, Penna, and Tungabhadra flow through the state, providing irrigation. Recently, crops used for vegetable oil production such as sunflower and peanuts have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam. Andhra Pradesh was among the very few states in the country which went in for the Green Revolution in rice cultivation in the 1970s. Agricultural income in the state was ₹54.599 billion (US$760 million) at constant prices (2012–13). Given below is a table of 2015 national output share of select agricultural crops and allied segments in Andhra Pradesh based on 2011 prices

Let us make in-depth study of the agricultural policy of India Agricultural policy of a country is mostly designed by the Government for raising agricultural production and productivity and also for raising the level of income and

standard of living of farmers within a definite time frame. This policy is formulated for all round and comprehensive development of the agricultural sector. In India, the main objectives of agricultural policy are to remove the major problems of agricultural sector related to improper and inefficient uses of natural resources, predominance of low-value agriculture, poor cost-benefit ratio of the sectoral activities and insignificant progress of cooperative farming and other self-help institutions.

Objectives of Agricultural Price Policy: The objectives of agricultural price policy vary from country to country depending upon the place of agriculture in national economy. Generally, in developed countries, the major objective of price policy is to prevent drastic fall in agricultural income while in developing economies it is to increase the agricultural production

Major Objectives: The important objectives of the new agricultural policy are stated below: 1. Facilities for All-Round Development: In order to accelerate the pace of development, the new agricultural policy has set an objective to augment facilities for processing, marketing, storage, irrigation, along with development of horticulture, fisheries, biomass, livestock, sericulture etc. for all round development of agricultural sector. 2. Infrastructural Development: The new policy favoured to make the provision for infrastructural development related to agriculture and thereby to infuse new dynamism through increased volume of public investment. 3. Revising and Strengthening Co-Operatives: The policy also aims at reviving and strengthening Co-operatives and local communities for the development of agriculture. 4. Involvement of NGOs: The policy also aims at involving the nongovernment organisations on a large scale for the development of agricultural sector. 5. Encouragement: The policy aims at providing necessary support, encouragement and thrust on farming activities so that rural people accept it as a noble and viable occupation.

Features of New Agricultural Policy: The important measures or features of new agricultural policy are summarized as under: (i) Raising Capital Formation: The new policy has undertaken a strategy to raise the rate of capital formation in agricultural sector as the same is maintaining a decreasing trend from 18.7 per cent of total gross capital formation in 1978- 79 to only 9.5 per cent in 1993-94. As the invisible resources are being diverted from agriculture to industry and sectors, the new policy, thus introduces measures to rechnelise available resources for productive investment in the sector. The policy will focus to create a better investment climate for the farmers by introducing a favourable price and trade regime. (ii) Enhancing Public Investment: In order to raise the volume of public investment, new agricultural policy will take steps to create public investment for building supportive infrastructure for agriculture. Conservation of water and use of alternative and renewable sources of energy for irrigation and other agricultural works have also been encouraged. Such enhancement of infrastructural investment will reduce the regional imbalances and generates more value added exportable surpluses. (iii) Raising the Flow of Credit: The policy will make an attempt to enhance the flow of credit to the agricultural sector. In this connection, the Co-operative credit societies were engaged for such purpose. (iv) Improving Agricultural Marketing: An attempt will be made to improve the marketing arrangement of agricultural produce through agro- processing, marketing and storage. (v) Ensuring Remunerative Prices: The new policy has entrusted the Government to undertake responsibility for ensuring remunerative prices of agricultural produce to the farming community by adopting necessary price support policy. (vi) Raising Agro-Exports: The new policy has made an attempt for harnessing the comparative natural advantage in agricultural export of the country. The policy has laid special thrust on

the exports of fruits, vegetables, flowers, poultry and livestock products so as to raise the share of agricultural exports. (vii) Land Reforms: The new policy will make efforts to take land reform measures for the interest of small and marginal farmers and raise agricultural output. (viii) Development of Land: The policy has made an attempt to develop land permanently for cultivation to meet the growing needs of population. In order to develop rainfed areas of the country watershed management scheme has been given much importance so as to bring integrated development of the land. (ix) Treating Agriculture at Par with Industry: The steps for creating a positive trade and investment climate for agriculture and also to treat agriculture at par with industry for the purpose will be taken. (x) Crop Insurance Scheme: Considering the problems of crop failure and high risk of instability in production, the policy stressed for redesigning the crop and livestock insurance schemes in a comprehensive manner so that the farmers can recover their losses arising out of natural disasters.

Types of Agricultural Price Policy: The prices favourable to the producers of agricultural products may work against the interest of the non-agricultural sector vice-versa. In fact, this has been one of the major considerations underlying the agricultural price in various countries during the course of the development of their economies. Sometimes, the prices of agricultural products as well as the agricultural inputs have been so manipulated and the ancillary fiscal and administrative policy so devised that the benefits of development of the agricultural sector were partly or wholly passed on to the industrial sector. Such a policy changed the terms of trade, against agriculture. On some other occasions, the price policy has favoured the agricultural sector at the cost of the non-agriculture sector. The two types of price policy have been called ‘Negative’ and ‘Positive’ price policies respectively. The following paragraph discuss these two price policies in some detail:

1. Negative Price Policy: In the context of the policy of accelerating economic growth, a “negative” agricultural price policy has been practiced by a large number of countries in the early stages of their development. The main objectives of such a policy was to keep the prices of food and raw materials relatively low (when compared with the prices of industrial products) so as to facilitate the growth of the industrial and tertiary sectors and to provide surpluses in the form of savings for these sectors. In other words, the terms of trade were purposively kept unfavourable for the agricultural sector. 2. Positive Price Policy: In contrast to the above methods, a number of countries today follow what may be termed as the “positive” price policy which consists of light taxes on the agricultural sector and also assure the farmer of a fair price for his produce. Such a policy is considered necessary in the context of the realisation that unless the agricultural sector attains some critical minimum rate of growth, it would not be possible to attain the general targets of economic growth and development. This is true for a number of reasons, chief among which are: (i) In most of the developing countries, agriculture continues to be the single most important sector from the points of view of generating income, employment and exports, and (ii) The increasing demand for food caused by increasing population and rising money incomes can be met only by a continuously growing agricultural production. Evaluation of Agricultural Price Policy: The draft agricultural policy envisages 3.5 per cent annual growth in agriculture as compared to 2.6 per cent growth rate registered since independence. The draft of the National Agricultural Policy circulated for comments has secured broad agreements form all the State Government, central ministries and Agricultural Universities. But its adoption by the Government at this moment might create new problems for the Union Agriculture Ministry and the Planning Commission for its inclusion within the already launched Ninth Plan. Thus under the present circumstances, the adoption of the draft agricultural policy by the Government may take some time for making necessary adjustment with the agriculture component of the Ninth Plan.

In short the draft agricultural policy has offered a detailed framework of policy initiative required for the agricultural sector on a long term perspective. By introducing a favourable price and trade regime, the policy has created a suitable environment for the sector. The thrust of the policy is to make the sector a viable and profitable for the nation. Thus the new policy is expected to improve the quality of life in villages and can reduce the gap in the social welfare facilities between rural and urban areas and create sufficient gainful employment opportunities on a self-sustaining basis. Moreover, new agricultural policy proposed to accord the status of industry. The new agricultural policy resolution would bestow the same benefits to agriculture as were being enjoyed by the industry but care should be taken to ensure that agriculturists were not subjected to the regulatory and tax collection machinery of the Government. Thus the draft agricultural policy was intended for the progress and welfare of farmers. The Agricultural Ministry has also given stress on drip irrigation projects so that agriculture did not suffer. Attention was also being paid to watershed management, soil conservation environment and other aspects which would benefit agriculture. Besides, the benefits of liberalisation and technology transfer should reach to the farmers. Effects of Agricultural Price Policy: It is correctly stated that agricultural price has worked remarkably well to streamline the price stability activities. However, its effect are shortly mentioned below: 1. Incentive to Increase Production: Agricultural price policy has been providing necessary incentive to the farmers for raising their agricultural output through modernisation of the sector. The minimum support price is determined effectively by the government which will safeguard the interest of the farmers. 2. Increase in the level of income of Farmers: The agricultural price policy has provided necessary benefit to the farmers by providing necessary encouragement and incentives to raise their output and also by supporting its prices. All these have resulted in an increase in the level of farmers as well as its living standards. 3. Price Stability:

The agricultural price policy has stabilized the price of agricultural products to a greater extent. It has successfully checked the undue fluctuation of price of agricultural products. This has created a favourable impact on both the consumers and producers of the country. 4. Change in Cropping Pattern: As a result of agricultural price policy, considerable change in cropping pattern of Indian agriculture is needed. The production of wheat and rice has increased considerably through the adoption of modern techniques by getting necessary support from the Government. But the production of pulses and oilseeds could not achieve any considerable change in the absence of such price support. 5. Benefit to Consumers: The policy has also resulted in considerable benefit to the consumers by supplying the essential agricultural commodities at reasonable price regularly. 6. Benefit to Industrials: The agricultural price policy has also benefited the agro industries, like sugar, cotton textile, vegetable oil etc. By stabilizing the prices of agricultural commodities, the policy has made provision for adequate quantity of raw material for the agro industries of the country at reasonable price. Shortcomings of Agricultural Price Policy: The major shortcomings of the agricultural price are as under: 1. Inadequate Coverage: Inadequate coverage of procurement facility has rendered the price ineffective. The facility of official procurement reaches only a handful of farmers—of the total food gains production, procurement covers hardly 15 per cent. 2. Remunerative Price: The remunerative price and/or subsidized inputs have failed to keep pace with the rate of increase in costs. It has had two consequences. The farmer is discouraged from producing the maximum level of output; he tries to balance his output against the level of costs, and settles for a lower level of output. 3. Ineffective Public Distribution System: The public distribution has not been very effective. A large section of the poor people are outside the purview of the system. Even those who are covered under the system do not necessarily get the benefit of issue prices. The system has absolutely failed to

serve the objective. Besides, the burned on the national exchequer is increasing enormously. 4. Difference in Prices: There is an important issue of wide difference between prices received by the producers and prices paid by the consumers. In this context, issues relating to the network of regulations and costs associated with it, incidence of octroi, increase in transportation costs, over fragmentation of the distribution network etc. require careful study. 5. Unaccompanied by Effective Policy: The efficacy of the price policy depends on a number of other factors inherent in the system of agricultural operations like land holding patterns, income distribution, general disparities and cropping pattern. But, it is pity to say that the price policy has not been accompanied by any effective policy for a total development of agriculture. A continuous increase in procurement prices may have even an adverse impact on agricultural productivity. Price increases which over-compensate cost increases can discourage measures to raise agricultural productivity since such prices automatically lead to higher profits for the farmers. Suggestions for Reorientation of Agricultural Price Policy: The adequacy of the present agricultural price policy calls for reorientation in relation to the priority objectives which are likely to shape the development strategy. Considering the present critical situation in the national economy, concern with and about broad-based and sustained growth is bound to be a dominant objective. Such crucial issues relating to the strategy needed to achieve such growth are yet to be settled and focused. Given the recent thinking in India and outside on the relative roles of government, markets, private enterprise and non-government organizations, a careful look would have to be given to the issues regarding spheres appropriate for direct government intervention. While it is important to explore opportunities to transfer certain takes from the government to others, it would be equally important to demarcate areas, where the government must act. It would be wishful to assume that wherever the government performs badly, others would readily take-over and do better.

This means that top priority should be given to national issues rather than ideological issues of different political parties of the country. There is ample reflection of these broader objective in the recent and continuing discussion on the yet to be finalized Agricultural Policy Resolution. Some obvious indications are: (i) Systematic attempts to orient agricultural planning towards effective use of resource endowments (ii) A much-expanded employment-cum-investment programme for conservation and upgradation of land and water resources; (iii) Greater priority for dry land agriculture, (iv) A substantial set-up in the proportion of total planned resources earmarked for agriculture/rural sectors; and (v) Time-bond targets for provision of rural infrastructures, etc. (vi) Comparative advantages of grow climatic areas of the country, (vii) Policy regarding growth of inputs and extension services and marketing etc. Sincere and determined efforts for development of agriculture/rural sectors would have three main implications for the agricultural price policy. 1. Agricultural growth in the areas, crops and farms which have remained stagnant so far would have the effect of expanding the boundaries of that part of Indian agriculture which is responsive to agricultural price changes. 2. Improvements in what CACP considers as important ‘non-price’ factors— technology, inputs, marketing etc. —would add to the effectiveness of price policy as an instrument to promote growth along with efficiency and cost effectiveness. 3. The most important, if income and welfare support for the poor and the problems of non-viable small and marginal farmers get priority attention in the overall development strategy, the price policy would be able to focus itself more pointedly on its primary economic functions. In view of the above considerations, following suggestions can be made in regard to reorientation of the agricultural price policy:

1. Minimum Support Prices: Two economic criteria should govern the operations based on minimum support price. First, it should give protection only to the efficient producer so that minimum support price promotes growth and efficiency and merely subsidizes all sections of farmers. Specifically, it is urgent to realize that non-viable farmers cannot be helped simply by fixing a high enough minimum support price; the solution of their problems lies in other areas than in policy. Secondly, the protection should be given only to prevent losses being made by the efficient producer and not to ensure him profits. 2. Maximum Price: The criteria for fixing a maximum for the prices of a commodity are not equally easy or strength forward to stipulate. The primary responsibility of the government in relation to price level is: (a) To keep in check the inflationary forces bringing about increases—sustained and cumulative—in the overall price level, and (b) Elimination of collusive and manipulative practices leading to artificial scarcity and high prices for particular commodities. If these two sources of price rise are effectively neutralized, it is difficult to think of any need to match every minimum support price with corresponding ceiling price. When the stability of the general price level is maintained; the efficacy of the price mechanism would depend on the extent to which the relative prices are left free to vary in response to changes in the underlying supply and demand conditions. 3. Balanced and Integrated Price Structure: A balanced and integrated price structure criteria should be evolved. This type of price structure would help not so much in price fixation as in monitoring the changes in factors which affect prices. The extent to which an agricultural price policy would help development strategy and planning for agriculture would depend on its capacity to extrapolate, forecast and work out the implications of alternative actions. In a market-based economy, such analytical exercises would need models of interconnected markets based on the concept of equilibrium and capable of showing the manner in which the markets adjust to policy interventions, disturbances etc.

Summary of Agricultural Price Policy in India: The summary of agricultural price policy followed by the Government of India since independence is stated below: (i) Setting Institutions: The Government of India has set up some institutions for the implementation of agricultural price policy in the country accordingly; the Agricultural Price Commission was set up in 1965 which announced the minimum support prices and procurement prices for the agricultural products. In 1985, the name of this institution was changed into Agricultural cost and Price Commission. Moreover, the Food grains policy. Committee was, appointed by the Government in 1966 which also recommended various measures of price support. The Food Corporation of India was also set up in 1965 for making necessary procurement, storage and distribution of food grains. In 1989-90, total capital employed in FCI was to the Extent of Rs. 5138 crore with its total storage capacity at 18 million tones. The corporation organises the price of food grains at government determined price and sale these food stocks through the network distribution system. In the year 2009-10 and 16.28 million tonnes of wheat and 4.94 million tonnes rice were distributed to FCI. (ii) Minimum Support Price: The government fixes the minimum support prices of agricultural products like wheat, rice, maize, cotton, sugarcane, pulses etc. regularly to safeguard the interest of farmers. The FCI also make their purchase of food grains at the procurement prices so as to maintain a rational price of food grains in the interest of farmers. (iii) Protecting the Consumers: To safeguard the interest of the consumers, the agricultural price policy has made provision for buffer stock of food grains for its distribution among the consumers through public distribution system. (iv) Fixation of Maximum Price: In order to have a control over the prices of essential commodities the government usually determines the maximum price of agricultural products so as to protect the general people from exorbitant rise in prices.

National Agricultural Policy 2000: On 28th July, 2000, the NDA Government made public a National Agriculture Policy envisaging over 4 per cent annual growth through efficient use of resources and technology and increased private investment while emphasizing on price protection to farmers in the WTO regime. The policy aimed at catapulting agricultural growth to over 4 per cent per annum by 2005. This growth is to be achieved through a combination of measures including structural, institutional, agronomic, environmental, economical and tax reforms. The policy formulation has been necessitated due to the relatively poor growth of agriculture experienced during the 1990s. The Policy Document observed, “Capital inadequacy, lack of infrastructural support and demand side constraints such as controls on movement, storage and sale of agricultural products etc. have continued to affect the economic activity of agricultural sector. Consequently, growth has also tended to slacken during the 1990s”. As the agricultural sector ensures the food security and nutrition to this huge size of population of India and also supplies huge quantity of raw materials for expanding industrial base along with creating surplus for exports thus a fast and equitable reward system for the farming community along with attaining faster growth rate of the sector should be the important components of agricultural reforms. Thus, the National Agricultural Policy (2000) has taken the following important objectives: ADVERTISEMENTS: 1. Attaining a growth rate above 4.0 per cent per annum in the agricultural sector; 2. Attaining a growth which is based on efficient use of resources and also makes provision for conservation of our soil, water and bio-diversity;

3. Attainment of growth with equity, i.e., attaining a growth whose impact would be widespread across regions and different classes of farmers; 4. Attaining a growth that is demand-driven and cater to the need of domestic markets and ensuring maximization of benefit from exports of agricultural products in the face of challenges from economic liberalization and globalization; 5. Attaining a growth that is sustainable technologically, environmentally and economically. Sustainability in Agriculture: The new policy seeks to introduce economically viable, technically sound, environmentally non-degrading and non-hazardous and socially acceptable use of natural resources of the country for promoting the concept of sustainable agriculture. In order to fulfill this strategy, the following measures are suggested in the new policy: 1. To use unutilized barren wastelands for agriculture and afforestation. 2. To contain biotic pressures on land and to control indiscriminate division of agricultural lands for non-agricultural uses. 3. To enhance cropping intensity through multi-cropping and inter-cropping. 4. To emphasize rational use of ground and surface water so that over-exploitation of ground water resources can be checked. To adopt better technologies such as drip and sprinkler irrigation system so as to arrange more economic and efficient use of water. 5. To adopt vigorously a long-term perspective plan for sustainable rain-fed agriculture by adopting watershed approach and water harvesting method for

development of two-thirds of cropped area of the country which is dependent on rainfall. 6. Involvement of farmers and landless labourers will be sought in the development of pastures/ forestry programmes on huge public wasteland by providing adequate financial incentives and entitlement of trees and pastures. Food and Nutritional Security: In order to meet the growing pressure of population growth and to provide food and nutritional security to such a large population, special efforts will be made for raising the productivity and production of crops and thereby to meet the requirement of raw materials of expanding agro-based industries. Special stress will be made for the development of new crop varieties, especially food crops, with higher nutritional value. The policy has paid due emphasis for the development of rain-fed irrigation, horticulture, floriculture, roots and tubers plantation crops, aromatic and medicinal plants, bee-keeping and sericulture for augmenting food supply and boosting exports along with generation of employment in rural areas. High priority has also been given on the development of animal husbandry, dairy, poultry and aquaculture so as to diversify agriculture, increasing animal protein availability in food basket and also for generating exportable surpluses. The policy also encouraged the cultivation of fodder crops and fodder trees so as to meet the growing need for feed and fodder requirements. The policy has encouraged the involvement of co-operatives and the private sector for the promotion and development of animal husbandry, dairy and poultry farming.

Development and Transfer of Technology: The policy suggested that the Government should encourage application of biotechnology, remote sensing technologies, energy saving technologies, pre- and post-harvest technologies, and technology for environmental protection. Moreover, the Government will make a fresh attempt to move towards a regime financial sustainability of extension services in a pleased manner. The Government will also undertake special measures for empowering women and also to build their capabilities for improving their access to inputs, technology process and other farming resources. Incentives and Investment in Agriculture: The policy suggested that the Government should make adequate efforts for improving the terms of trade for agriculture along with associated manufacturing sector. Accordingly, attempts will be made to review and rationalize the structure of taxes on food grains, other commercial crops and also excise duty on farm machinery and implements. The Government has committed to keep agriculture outside purview of taxes and decided to continue the present regime of agricultural subsidies. The, new policy statement accepted the problem of fall in public sector investment in agricultural sector and decided to step up public investment for narrowing regional imbalances and also for accelerating development of supportive infrastructure. In addition to this, private sector investment in agriculture will be encouraged in some sophisticated areas like agricultural research, post-harvest management, marketing and human resource development. Moreover, attempts would be made for setting up agro-processing units in collaboration between the producer co-operatives and the corporate sector.

Policy on Institutional Structure: The policy gave due emphasis for reforming the Institutional structure where the approach on rural development and land reforms will give stress on the following issues: 1. Consolidation of holdings throughout the country following the pattern of north western states. 2. Steps for redistribution of ceiling surplus lands and waste-lands among the landless farmers and unemployed persons. 3. Adopting tenancy reforms for recognizing the rights of tenants and sharecroppers. 4. Promotion and development of lease markets for raising the size of holdings by making legal provisions so as to give private land on lease for cultivation and agrobusiness purposes. 5. Recognizing the rights of women on land. 6. Making provision for updating and improvement of land records through computerization and also by issuing land pass books to all the farmers. The policy has made arrangement for promotion through contract farming and land leasing arrangements for allowing accelerated technology transfer, capital inflow and assured marketing arrangements for some crops, especially of oilseeds, cotton and horticultural crops. Risk Management: The National Agricultural Policy (2000) gave due importance for the promotion of National Agriculture Insurance Scheme (NAIS) so as to cover all crops and all farmers over the country by giving package insurance policy ensuring protection from all risks in pre- and post-harvest operations, including marketing fluctuations in agricultural prices.

Privatization of agriculture and price protection to farmers in the post-quantitative restriction (QR) regime would be part of the Government’s strategy to synergies agricultural growth. The focus of the new policy is on efficient use of resources and technology, adequate availability of credit to farmers and protecting them from seasonal and price fluctuations. Over the next two decades, the policy aims to attain a growth rate in excess of four per cent per annum in the agricultural sector. The policy document observed that private sector participation would be promoted through contract farming and land leasing arrangement, to allow accelerated technology transfer, capital inflow, assured markets for crop production, especially of oilseeds, cotton and horticultural crops. Moreover, private sector investment in agriculture would be encouraged, particularly in areas like agricultural research, human resource development, post harvest management and marketing. In view of dismantling of quantitative restrictions (QRs) on imports as per WTO agreement on agriculture, the policy has recommended formulation of commodity wise strategies and arrangements to protect farmers from adverse impact of undue price fluctuations in the world market and promote exports. The policy also observed that the Government would enlarge coverage of future markets to minimize the wide fluctuations in commodity prices as also for hedging their risks. The policy hoped to achieve sustainable development of agriculture, create gainful employment and raise standards of living. The policy has also envisaged evolving a “National Livestock Breeding Strategy” to meet the requirement of milk, meat, egg and livestock products and to enhance the role of draught animals as a source of energy for farming operations and transport. The policy document mentioned that plant varieties would be protected through a legislation to encourage research and breeding of new varieties, particularly in the

private sector, in line with India’s obligations under the “Trade-related Intellectual Property Rights” (TRIPs) agreement. The farmers would, however, be allowed to save, use, exchange, share and sell their ‘farm saved seeds’, except branded seeds of protected varieties for commercial purpose. The policy document observed that the development of animal husbandry, poultry, dairy and aquaculture would receive high priority to diversify agriculture, increasing availability of animal protein in the food basket and for generating exportable surpluses. A high priority would be accorded to evolve new location specific and economically viable improved varieties of agriculture and horticulture crops, livestock species and aquaculture as also conservation and judicious use of germplasm and other biodiversity resources. Moreover, the domestic agriculture market would be liberalized. The policy further mentioned that the restrictions on the movement of agricultural commodities throughout the country would be progressively dismantled. The structure of taxes on food grains and other commercial crops would be reviewed and rationalized. The excise duty on materials such as farm machinery and implements and fertilizers used as inputs in agricultural tax collection system. Appropriate measures would be adopted to ensure that agriculturists, by and large, remained outside the regulatory and tax collection system. The policy also observed that in order to protect the interest of farmers in the context of quantitative restrictions, continuous monitoring of international prices would be undertaken and appropriate tariff protection would also be provided. The policy document further mentioned that rural electrification would be given high priority as a prime mover for agricultural development. The use of new and

renewable sources of energy for irrigation and other agricultural purposes would be encouraged. Finally, the policy document observed that the progressive institutionalization of rural and farm credit would be continued for providing timely and adequate credit to farmers. Moreover, endeavor would also be made to provide a package insurance policy for the farmers, right from sowing of crops to post-harvest operations, including market fluctuations in the prices of agricultural produce. Appraisal of the New Agricultural Policy: The New Agricultural Policy (2000) has been considered as a balanced one considering the present requirement. The new policy has adopted a coordinated approach for bringing Green Revolution, White Revolution (related to milk and dairy products) and Blue Revolution (related to aqua/fish culture). Therefore, the policy has been termed as a policy of promising Rainbow Revolution. Considering the growing requirement of food for attaining food self-sufficiency and to attain food security for the millions of people of the country the policy has faced a great challenge. To fulfill this requirement attainment of 4 per cent growth rate in agricultural output is a must. But the New Policy has not spelt out any such target in quantitative terms. Secondly, the New Policy has also failed to identify those backward states which are still lagging in utilizing their agricultural potential. Therefore, a balanced approach should be undertaken to remedy these loopholes. Thirdly, the New Policy argued in favour of encouraging private investment in agriculture which would help the big farmers, but the large numbers of small farmers are not going to be supported by such private investment which needs to be promoted by public investment.

Fourthly, the New Policy argued in favour of private sector participation through contract farming by land leasing arrangements. But introduction of such a step in a labour-surplus economy is highly questionable. Lastly, there is a lack of co-ordination between the Central and State Governments in implementing various promotional steps for the development of agricultural sector. Thus, the centre and the states should co-ordinate in implementing various provisions of new policy and should develop a monitoring mechanism to evaluate the implementation of the policy in a most rational manner. For the Tenth Plan period (2002-07), the credit flow into agriculture and allied activities from all banking agencies is projected at Rs. 7,36,370 crore, which is more than three times the credit flow during the Ninth Plan. Thus, under the general impression that Indian agriculture operates amidst a number of restraints and controls and those farmers do not receive the benefits of free trade as compared to other sectors of the economy, the new National Agricultural Policy, 2000 thus has taken note of this impression and proposed freeing of agriculture sector from various restrictions. The Central Government has taken a lead in repealing some of restrictive legislations. However, as agriculture is a state subject, most of the restrictions are actually imposed by states such as Andhra Pradesh, Tamil Nadu, Gujarat and Maharashtra. Thus; the State Governments should take effective steps for freeing agriculture. In this connection, the Economic Survey, India, 2000-2001 observed, “For the Indian farmer, it is essential that he looks to the whole country as a sign of unrestricted market. After further opening up of the trade regime under WTO from April 2001, it is all the more necessary that farmers look not only to the domestic market, but also seize opportunities in the global market for improved value added

realization and diversification. Export of processed agro-products would be the key to improved export realization which is possible only if the domestic policies allow unrestricted movement, storage and liberal trade regime. Thus, for agriculture related products, inputs and services, all restrictions including SSI reservation would have to be removed.”

NATIONAL COMMISSION ON FARMERS In 2004, the UPA government had constituted a National Commission on Farmers under the chairmanship of Dr. MS Swaminathan. This commission included a wide variety of people into definition of farmer. Farmers included landless agricultural labourers, sharecroppers, tenants, small, marginal and sub-marginal cultivators, farmers with larger holdings, fishermen and women, dairy, sheep, poultry and other farmers involved in animal husbandry, pastoralists, as well as those rural and tribal families engaged in a wide variety of farming related occupations such as sericulture, vermiculture, production of bio-fertilizers and bio-pesticides, and agro-processing. It also included the tribals who engaged in shifting cultivation and non-timber forest produce.

Emphasis on Cost Risk Structure: Emphasis on Cost Risk Structure While making a statement of the problems of the farmers; the Swaminathan Panel gave special emphasis to the Cost-Risk structure in Indian agriculture. It said that the farmers frequently face fury of the nature in the form of drought, unseasonal and heavy rains causing extensive damage to crops. This coupled with weak institutional support, ever increasing cost of production and not so supporting minimum support prices (at that time) have led to an adverse cost-risk structure of farming. This led to peasant indebtedness and farmer’s distress.

The committee also pointed out the inputs that did wonder during Green Revolution period have been giving diminishing returns since 1980s and the Capital formation in agriculture and allied sectors as percentage of Gross Domestic Product (GDP) declined for a long term , only reversing recently. Adverse irrigation and rural infrastructure have led the farmers to commit suicides in Vidarbha and other parts.

Agricultural Renewal Action Plan Most of the recommendations of the National Commission on Farmers focussed on improving farm productivity and profitability in perpetuity without ecological harm. It presented an Agricultural Renewal Action Plan, which called for introduction of mutually reinforcing packages of technology, services and public policies to bridge the gap between actual yields and potential yields. The Agricultural Renewal Action Plan had five components as follows:

Soil health enhancement Agricultural Universities, research institutes, Krishi Vigyan Kendras, fertilizer companies, states department of agriculture and fanners’ associations should aim at increasing the productivity potential of the soils by paying adequate attention to the chemistry and physics of soils (macro and micronutrients) and microbiology. Dry farming areas should receive special attention.

Irrigation Water Supply Augmentation and Demand Management National Commission on Farmers made a very forthright declaration – “Water is a public good and a social resource and not private property. The private property. The privatization of its distribution is fraught with dangers and could lead to water wars in local communities”. Improving supply through rainwater harvesting and recharge of aquifers should become mandatory. It suggested that 10 million hectares of new area under irrigation should be developed; all existing wells and ponds should be renovated; seawater farming should be promoted in coastal

areas through the cultivation of mangroves and other vegetation such as halophytic plants. Demand management through improved irrigation practices, including sprinkler and drip irrigation should receive priority attention.

Credit and Insurance The panel emphasized that “Credit reform is the primary pathway to enhancing small farm productivity and ending farmer suicides.” In this direction, it suggested to: Reduce interest rates on crops to 4% The natural calamities such as droughts and floods lead the farmers to default on their loans. To meet the natural calamities, the union and state governments should come forward to create an “Agriculture Risk Fund” to provide relief to drought and flood hit farmers.

Technology The performance of the new varieties of seeds should be judged on the basis of “net income per hectare” and not just in terms of yield per hectare. The governments should add Post-harvest technology wing to the Krishi Vigyan Kendras. Government should add Lab-to-land demonstrations in dry farming areas where millets, pulses, oilseeds and cotton are grown. The committee had also suggested to establish a National Biotechnology Regulatory Authority (Government established Biotechnology Regulatory Authority of India in 2008).

Marketing The committee suggested that the market reform should begin with production planning, so that every link in the cultivation-consumption-commerce chain receives adequate and timely attention.

Five Point Action Plan

For revival of agriculture, the Swaminathan Commission on Farmers suggested a five point action plan. These five points are as follows: Soil health enhancement Water harvesting and sustainable and equitable use of water Access to affordable credit and crop and life insurance reform Development and dissemination of appropriate technologies and improved opportunities Infrastructure and regulation for marketing of agricultural produce. They have been discussed below: Undertake soil health enhancement through integrated measures in improving organic matter and macro-and-micro-nutrient content, as well as the physics and microbiology of the soil. Promote water harvesting, conservation, and efficient and equitable use by empowering gram sabhas to function as “Pani Panchayats“. A sustainable wateer harvesting system should be established, particularly in rainfed areas lacking assured irrigation. This can be facilitated by mandatory water harvesting and greater attention to dry land farming. Immediately initiate credit reforms coupled with credit and insurance literacy. In chronically drought-prone areas, the repayment cycle should be extended to four to five years. Besides this, the credit delivery system should be made gender sensitive. Bridge the growing gap between scientific know-how and the field level do-how both in production and post-harvest phase of farming. This could be accomplished by organizing the training of agricultural workers as farm science managers, strengthening Krishi Vigyan Kendras (Agricultural Science Centres) in both production and post-harvest technologies and organizing

nation-wide lab to land demonstrations in the areas of agricultural diversification, food processing, and value addition. In nutshell, low economic risk, high factor productivity and avoidance of ecological harm should form the fundamentals of all agricultural research and development strategies. Success in agricultural progress should be measured by growth rate in farmers’ income and not just by production figures. The gap between what the rural producer gets and the urban consumer pays should be made as narrow as possible, as has been done in the case of milk by Dr. V. Kurien. At the same time, there should be a Risk Stabilization Fund and a farmer-centric Minimum Support Price (MSP) and Market Intervention Scheme (MIS).

Micro, Small and Medium Enterprises (MSME) For a country to grow, the government should actively promote business enterprises. Among business enterprises, the Micro, Small and Medium Enterprises (MSME) deserve special attention. Though MSMEs are small investment enterprises, but their contribution to the Indian economy is very significant. What are MSMEs? Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on 1. the investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of goods and 2. the investment in equipment for enterprises engaged in providing or rendering of services. The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are:

Nature of

Investment in plant and machinery excludi Investment in equipment excluding la

activity of ng land and building for enterprises enga

nd and building for enterprises enga

the Enter

ged in manufacturing or production, proc

ged in providing or rendering of servi

prise

essing or preservation of goods

ces (loans up to Rs 1 crore)

Micro

Not exceeding Rs.25.00 Lakhs

Not exceeding Rs.10.00 Lakhs

More than Rs.25.00 lakhs but does not excee More than Rs.10.00 lakhs but does not Small d Rs.500.00 lakhs

exceed Rs.200.00 lakhs

More than Rs.200.00 lakhs but does not More than Rs.500.00 lakhs but does not exce exceed Rs.500.00 lakhs Medium ed Rs.1000.00 lakhs

Note: The investment in plant and machinery is the original cost excluding land and building and other items specified by the Ministry of Small Scale Industries vide its notification no. S.O. 1722 (E) dated 05.10.2006. List of enterprises that are engaged in providing or rendering services The illustrative lists of enterprises that are engaged in providing or rendering services are:    

Small road and water transport operators (original investment in vehicles up to Rs.200.00 lacs under Priority sector) Retail trade (with credit limits not exceeding Rs.20.00 lakhs) Small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20.00 lakhs Professional and self-employed persons (whose borrowing limits do not exceed Rs.10.00 lakhs of which not more than Rs.2.00 lakhs should be for working capital requirements except in case of professionally qualified medical practitioners setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15.00 lakhs with a sub-ceiling of Rs.3 lakhs for working capital requirements)

Significance of MSMED Act 2006

With the enactment of MSMED Act 2006, the paradigm shift that has taken place is the inclusion of services sector in the definition of Micro, Small and Medium Enterprises, apart from extending the scope to Medium Enterprises. Share of MSMEs in India The Micro, Small and Medium Enterprises occupies a strategic importance in terms of output (about 45% of manufacturing output), exports (about 40% of the total exports) and employment (about 69 million persons in over 29 million units throughout the country) based on the Planning Commission, 2012. It is observed worldwide that as income increases the share of the informal sector decreases and that of the formal SME sector increases. Worldwide Trends in SME Sector   

Japan – SMEs employ 70% of the wage earners and contribute 55% of the value added. Thailand – SMEs employ 60.7% of the population while contributing 38% to the GDP. China – SMEs contribute to over 68% of the exports – in the last 20 years created more SMEs than the total number of SMEs in Europe and the US combined.

Note: In China, an industrial SME is defined as having up to 2,000 employees, while a small business has less than 300 employees and a medium sized business has employees between 301 and 2,000.

What is the Importance and role of MSMEs in Indian Economy?

To generate large scale employment In India, capital is scarce and labor abundant. MSMEs are thought to have lower capital-output and capital-labour ratios than large-scale industries, and therefore, better serve growth and employment objectives. The MSME sector in India has

grown significantly since 1960 – with an average annual growth rate of 4.4% in the number of units and 4.62% in employment (currently employing 30 million). Not only do MSMEs generate the highest employment per capita investment, they also go a long way in checking rural-urban migration by providing people living in isolated areas with a sustainable source of employment. To sustain economic growth and increase exports Non-traditional products account for more than 95% of the MSME exports (dominating in the export of sports goods, readymade garments, plastic products etc.). Since these products are mostly handcrafted and hence eco-friendly, there exists a tremendous potential to expand the quantum of MSME led exports. Also, MSMEs act as ancillary industries for Large Scale Industries providing them with raw materials, vital components and backward linkages e.g. large scale cycle manufacturers of Ludhiana rely heavily on the MSMEs of Malerkotla which produce cycle parts. Making Growth Inclusive MSMEs are instruments of inclusive growth which touch upon the lives of the most vulnerable and marginalized. For many families, it is the only source of livelihood. Thus, instead of taking a welfare approach, this sector seeks to empower people to break the cycle of poverty and deprivation. It focuses on people’s skills and agency. However, different segments of the MSME sector are dominated by different social groups. The Twelfth Plan has listed the following as the objectives for the MSME sector     

Promoting competitiveness and productivity in the MSME space. Making the MSME sector innovative, improving technology and depth. Enabling environment for promotion and development of MSMEs. Strong presence in exports. Improved managerial processes in MSMEs.

Evolution and Performance of the MSME Sector in India Pre-Liberalization 

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During the post-Independence period, small firms were expected to play an important role in the development process, especially in absorbing surplus labor and achieving an equitable income distribution. This is the traditional stylized role assigned to small industries. At the beginning of the industrialization process, flexibility in production and the ability to offer differentiated products allow smaller firms to grow rapidly. Later, large-scale firms come to dominate the size distribution, making up a greater share of output, employment, and value-added because of scale economies, managerial efficiency, better access to finance and infrastructure, and a favorable tariff structure.

Post-Liberalization 

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The growth rate of MSME, on an average, has declined considerably in terms of units and even employment but has improved marginally in terms of output and exports, in the post-liberalization period compared to the pre-liberalization period. This could be probably due to – (a) With the threat of competition, new MSME units would not have come up as significantly in the liberalization period as compared to the pre-liberalization period (b) The new MSME units that came up after liberalization may have been much more capital intensive than those that have come up in the past – with some proportions of the existing MSME units having modernized themselves to rely less on labour and also to take advantage of developments in the global market (c) Unable to face the competition some MSMEs exited the market, thereby affecting MSME employment and output initially. However, though it appears that the MSME growth performance (in terms of employment, output, and exports) might have suffered initially but it has been able to recover impressively subsequently in the decade of 2000s. The share of the registered MSMEs in India’s GDP more than doubled during this period and its share in total organized sector employment increased to 34% during the same period. Although the share of registered MSME exports declined sharply initially, it bounced back to 12% in 2006-07. The improved economic health of registered MSME sector is reflected in another parameter i.e. industrial sickness. Sickness in the registered MSME sector has declined both absolutely and relatively. This may be the outcome of improvements in management deficiencies, insufficient financial control, research and development, obsolete technology, inadequate demand, shortage of raw materials, infrastructure bottlenecks, etc. There are two more issues concerning MSME performance:

1. Ancillarisation – the promotion of inter-firm linkages between large firms and MSME through subcontracting and ancillarisation in both public and private sectors has been an important dimension of India’s MSME policy. Any growth of ancillarisation and sub-contracting would be advantageous to the MSME sector by way of assured marketing, covered technical assistance, finance, and supply of raw materials and training. During this period the percentage of ancillary units increased from 5 percent. Note that however a significant proportion of MSME subcontracting and ancillarisation are informal in nature. The growing inter-firm linkages, formal as well as informal, would have benefited the economic performance of MSME sector. 2. The degree of internationalization – world over, an export strategy has been the primary foreign market entry mode adopted by MSMEs in their internationalization efforts – this has been observed in the Indian context as well. At the national level, several factors contributed to the increasing trend of MSME internationalization like – structural shift in the composition of MSME exports from traditional to non-traditional items, modes of entry such as MNCs and e-Commerce etc. Policy Towards Small-Scale Industries

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Though MSMEs were recognised as important for employment generation and equitable distribution of income from the earliest days of Indian Independence, it appears that the objectives of policies stressing the role of MSMEs are not being realised. Since independence in 1947, especially since the late 1950s, development has been wide-ranging, both in terms of programs and regions. Policy measures included inter-alia fiscal concessions, subsidized and directed bank credit, and technical and marketing support, along with reservations of products for exclusive production by the MSME sector. These policy measures were in tune with the other policies such as the domestic investment and foreign trade policies that became more restrictive over the years. Since the mid-1980s there has been a gradual turnaround in policy, including reforms in the tax system and liberalization of import policy. The shift in MSME policy emphasis from protection to the promotion of competitiveness began with the introduction of an exclusive policy for MSME in 1991. Since then, the policy support in the 1990s and early 2000s has been large to enable the MSMEs to overcome key challenges to their performance and growth, namely, finance, technology, and marketing, among others. To operate these programs and to monitor their progress, new agencies and institutions have been set up, and the existing ones strengthened at the national, regional, state, and lower levels. There is also a special bank for MSMEs – SIDBI. The SSIs have their own associations and are also represented in the national and state level associations of large-scale industries.

Evaluation of the Reservation Policy 

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The policy of reserving products for exclusive manufacture in the small-scale sector was started in 1967 with forty-seven items; the list of reserved items rose to 873 in 1984. The number of items on the reserved list for the SSI sector was brought down to 836 by 1989. The pace of reforms accelerated after 1991: average tariff rates have been steadily lowered, quantitative restrictions have been removed, and domestic investment policies have been liberalized. Over time, the number of items on the reserved list has also been reduced and stands at 605 in 2005. With liberalization, since all the items on the reserved list can now be imported, MSMEs face competition from foreign enterprises even though large scale industries in India cannot produce these products. The Censuses of the SSIs also suggest that the policy of reserving goods for production by SSIs has not been very effective. The number of units making reserved products was small compared to the overall size of the MSME sector, and the reserved products account for a small share of the total value of output in the MSME sector. Also, it appears that the export performance of India may have suffered because of the reservation policy. Most growing economies witness a changing structure of exports, with a high growth of exports of labour-intensive and

resource-based industries. The export structure of India has not changed much in the last two decades, and this may be because many commodities in the potential high-growth category come under the reserved list. What are the challenges of MSME? 

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Most of the unregistered MSMEs would predominantly comprise micro enterprises, particularly confined to rural India, operating with obsolete technology, limited access to institutional finance etc. And there is a need to transform the huge unregistered MSME into registered MSME. Need to improve the competitiveness of the overall MSME sector. Access to technology. IPR related issues. Design as a market driver. Wasteful usage of resources/manpower. Energy inefficiency and associated high cost. Low ICT usage. Low market penetration. Quality assurance/certification. Standardization of products and proper marketing channels to penetrate new markets. The definition for MSMEs must be updated – considering inflation and availability of better technologies since the last change in 2006.

Recent Initiatives 

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As part of the National Manufacturing Competitiveness Programme (NMCP) – 10 specific initiatives were taken to enhance the competitiveness of the entire value chain of the MSME sector. Limited Liability Partnership (LLP) Act, 2008 was introduced to enable early corporatization of MSMEs and tap the capital market for fund raising. Accordingly, MSME platforms are created in BSE and NSE in 2012. To develop a roadmap for the development and promotion of MSMEs, a task force was created by the Prime Minister of India in 2009. The Task Force, which comprised, among others, six specific theme-based sub-groups (on credit, marketing, infrastructure, technology, skill development, exit policy, labor, and taxation) submitted its report in 2010 suggesting: (1) Immediate policy measures (2) Medium-term institutional measures (3) Legal and regulatory structures to create a conducive environment for entrepreneurship and growth of MSMEs. The Inter-Ministerial Committee for Accelerating Manufacturing in Micro, Small and Medium Enterprises made recommendations on – (a) the promotion of start-ups (b) facilitating operation and growth (covering credit, technology, and marketing) (c) closure and exit (d) labour laws and regulations. These policy initiatives are clear and consistent, aimed at transforming the ecosystem for the MSMEs sector by influencing: (1) Birth (encouraging StartUps) (2) Operations and growth (by simplifying laws and regulations, and

facilitating their access to credit. Better technology and dynamic markets, apart from skilled labour and reliable infrastructure) (3) Orderly and easy exit 

Thus, the emerging focus of India’s MSME policy aims at covering the entire lifecycle of MSMEs to ensure a healthy, vibrant and competitive MSME sector.

Summary The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are:

INDUSTRIAL DEVELOPMENT POLICY AP 1. Preamble On 18 February 2014, the Andhra Pradesh Reorganization Bill, 2014 was introduced in Lok Sabha by the Union Minister for Home Affairs. It provided for the reorganization of the state of Andhra Pradesh. This Bill was approved by the President of India and published in the official Gazette. As per the Andhra Pradesh Reorganization Act, 2014 with effect from June 2, 2014, the new states of Andhra Pradesh and Telangana were formed. The new state of Andhra Pradesh has 13

districts – Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Nellore, Prakasam, Kadapa, Kurnool, Anantapur and Chittoor. Andhra Pradesh is strategically located on the Southeast coast of India and is a natural gateway to East & Southeast Asia. The state has a population of 4.93 crores (as per population census - 2011), accounting for 4% of country’s population, residing in 4.9% of country’s geographical area. Andhra Pradesh has abundant natural resources (Barytes, Limestone, Bauxite, and a number of minor minerals), fertile land and river basins, water resources, extensive canal system and conducive agro-climatic conditions. The State has the second longest coastline in India and is also one of the largest producers of marine products. At current prices, the Gross State Domestic Product (GSDP) of Andhra Pradesh was ₹4,75,859 crores in 2013-14. Between 2004-05 and 2012-13, the average annual GSDP growth rate of Andhra Pradesh was 7.25% while the average per capita income at (current prices)increased from ₹46,345 in 2008-09 to ₹88,876 in 2013-14. Andhra Pradesh, over the years, has established a strong presence in agro and food processing, textiles, chemicals & petrochemicals, pharmaceuticals, metallurgy, electronics and electrical engineering sectors.

2. Policy Approach Industrial development promotes higher capital formation, raises wage incomes and absorbs surplus workforce to bring about equitable development. Therefore the State Government has accorded top priority to industrial growth as a means to mitigate poverty and unemployment. Andhra Pradesh Industrial Development Policy, 2015-20 aims to establish state-of-the-art infrastructure, promote manufacturing, enhance inclusivity, foster innovation and create employment opportunities across sectors. Various policy instruments have been detailed in this document to catalyze the same. The state intends to be the most preferred destination for investors by providing favorable business climate, excellent infrastructure, good law and order and peaceful industrial relations. The new industrial policy focuses on creating a conducive eco-system which makes industries based in Andhra Pradesh innovative and globally competitive. Government of Andhra Pradesh (GoAP) lays utmost emphasis on sustainable industrial development anchored by capacity building at the grassroots level. The policy approach is encapsulated below:

I.

Policy Vision “To make Andhra Pradesh a progressive and highly industrialized state… a State that is a centre of technology and innovation...And, a joyous population confident of its bright future...” -

Shri. Nara Chandrababu Naidu

Policy Objectives a. To ensure sustainable & inclusive industrial growth b. To be among the Top 3 states in terms of industrial investments by 2022 c. To be the most preferred logistics hub and India’s gateway to East and Southeast Asia by 2029 d. To enhance the quantum and quality of skilled manpower and create significant employment opportunities

Policy Targets a. Increase the contribution of manufacturing to GSDP from 9.95%(2013-14)to 15% by 2020 b. Increase the contribution of industries to GSDP from 20.7% (2013-14)to 25% by 2020 c. Attract investment to the tune of ₹2 lakh crore by the end of 2020 d. Create employment opportunities for an additional 10 lakh people by the end of 2020

Policy validity The Policy will be valid for five years from the date of notification.

Strategy& Thrust Areas GoAP’s strategy of attracting sizeable industrial investment is predicated on the following factors: 1. Visionary Leadership 2. 24x7 power supply 3. Conducive Business Environment 4. Industrial Land Bank 5. Fiscal Incentives 6. Progressive Labor Policies and Skill Development 7. Robust Infrastructure 8. Effective Law and Order In addition, GoAP has identified 10 thrust areas for greater focus: 1. Agro & Food Processing 2. Life sciences (including pharmaceutical, biotechnology & medical equipment)

3. Textile & Apparel 4. Electronics & Information Technology 5. Aerospace& Defence 6. Automobiles& Auto Components 7. Petroleum, Chemicals, (including Fertilizers) and Petrochemicals 8. Energy 9. Mineral based industry 10. Leather

Above thrust areas have been mapped to districts based on their potential synergies. Chart 3: Location-wise key Investment opportunities

3. Land

II.

Government land bank The state of Andhra Pradesh has an identified land bank of 3 lakh acres and is further in the process of consolidating an additional industrial land bank of approximately 7 lakh acres. The consolidated land bank of 10 lakh acres would give the state a strategic edge in attracting investments. To achieve the same, government shall identify and acquire land through a transparent and farmer friendly land pooling/acquisition policy. This land will be administered within the following framework:

1. Inventory of public/pooled/acquired lands: All such lands shall be surveyed and the information made available in the public domain. It is envisaged that GIS will be used to create land inventory and update information of land parcels on real time basis 2. Land Information System: Key details and parameters about land parcels (e.g. soil type, distance from sea-ports, airports, railway stations etc.) will be made available online

Land Pooling/Acquisition and Allotment Land consolidation Consolidation of Industrial Land will be done by the Industries & Commerce Department following the state’s land pooling/acquisition policy.

Land allotment Land shall be allotted on 99 years lease. SIPB may consider outright sale of land in the following cases: i. the investment is exceeding Rs.100 Crores; ii. the gestation period of the project is more than 5 years; iii. the industry is located in backward areas to be notified by the Government, for this purpose; iv. departments, PSUs and agencies of the Central Government; v. financial closure of the project requires a sale; vi. projects identified by the Government as critical and prestigious; vii. other categories to be notified by the Government from time to time;

Fiscal Incentives Investors will be eligible for applicable incentives announced by Government of India for setting up industries in the state of AP. GoAP recognizes the need for sector specific fiscal incentives to improve the competitiveness of AP based firms and has made provision for various financial incentives. Further expansion/diversification projects will also be eligible for incentives mentioned in the Industrial Development Policy 2015 – 2020. Eligibility criteria’s for expansion/diversification projects will be mentioned separately in the guidelines.

III.

Project Category Definition a. Micro, Small and Medium Enterprise (MSME): GoAP follows the MSME definition laid out by Government of India as per MSMED Act 2006(as updated from time to time).

a. Large Industrial Project Large Project is a unit in which the investment on plant and machinery is less than ₹500 crore and more than the investment threshold for Medium enterprises as in MSMED Act. Further, for sectors such as Textiles, Food Processing, Biotech etc. definition of large projects may be different. Kindly refer to sector specific policies for project category definition.

b. Mega Industrial Project Projects with an investment of at least ₹500 crore or direct employment generation of 2,000 will be accorded mega industry status. Further, for sectors such as textiles, food processing, biotech etc. definition of mega project may be different. Kindly refer to sector specific policies for project category definition. The Government will extend tailor-made benefits to mega projects to suit particular investment requirements on case to case basis based on the gestation period, pioneering nature, locational aspects, technology, project’s importance to the state’s industrial growth and its ability to generate large scale employment for people or revenues for the state.

Power i. GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in the state. Andhra Pradesh is one of the three states selected under the centrally-sponsored “Power For All” scheme. ii. The power capacity allocation to Andhra Pradesh (as on 2nd June 2014) was 8,037 MW. To meet the burgeoning industrial, commercial, institutional and domestic needs, the state intends to add around 16,484 MW in the next five years. iii. GoAP will provide fixed power cost reimbursement @ ₹1 per unit for a period of five years from the date of commencement of commercial production. The power cost reimbursement for certain specific sector/sub-sector may be higher. Kindly refer individual sector policies for details.

Incentives for large industry unit c. Stamp Duty  100% of stamp duty and transfer duty paid by the industry on purchase or lease of land meant for industrial use will be reimbursed

 100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations will be reimbursed  Stamp duty will be reimbursed only one time on the land. Stamp duty will not be waived on subsequent transactions on the same land

d. VAT/CST/SGST 

50% of net VAT/CST/SGST will be reimbursed for a period of 7 years from the date of commencement of commercial production orup to realization of 100% fixed capital investment, whichever is earlier



For sector specific industries like apparel, food processing, biotech, automobile VAT/CST/SGST concession may be higher.

Incentives for MSME GoAP places strong impetus on development of MSME’s. The Government intends to offer a conducive eco-system and competitive fiscal incentives to MSMEs. Details of fiscal incentives pertaining to MSMEs will be charted in a dedicated MSME policy. Incentive with regards to stamp duty and VAT/CST/SGST are mentioned below:

e. Stamp Duty  100% of stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use will be reimbursed  100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations will be reimbursed  Stamp duty will be reimbursed only one time on the land. Stamp duty will not be waived on subsequent transactions on the same land

VAT/CST/SGST For micro & small industries 100% of net VAT/CST/SGST will be reimbursed for a period of 5 years from the date of commencement of commercial production. For medium industries, 75% of net VAT/CST/SGST will be reimbursed for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier. For sector specific industries like apparel, food processing, biotech, automobile VAT/CST/SGST concession may vary.

Incentives for Swachh Andhra i. To further its goal of Swachh Andhra, GoAP shall encourage companies engaged in recycling waste (includes mega, large and MSME projects) into environment friendly products/energy (such as waste to energy, waste to biogas, waste to manure) by bringing this industry under zero rated category schedule of the VAT Act ii. GoAP will provide up to 35% subsidy on cost of plant & machinery for specific cleaner production measures limited to ₹35lakhs for MSME and up to 10% subsidy on cost of plant & machinery on specific cleaner production measures limited to ₹35 lakhs for large enterprises, provided the measures are certified by Andhra Pradesh Pollution Control Board (APPCB) iii. GoAP places significant thrust on adoption of sustainable green measures across industries in Andhra Pradesh. GoAP will provide 25% subsidy of total fixed capital investment of the project (excluding cost of land, land development, preliminary and pre-operative expenses and consultancy fees) for below mentioned green measures with a ceiling of ₹50 crore a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and using recycled water for industrial purpose, especially zero discharge systems b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems c) Use of renewable source of power (erecting captive sun, wind and biomass plants etc.) d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The information should be disseminated continuously to APPCB e) Adopting rain water harvesting; restoring water bodies by de-stilting defunct water bodies f)

Any other environment management project approved by Empowered Committee of Secretaries

The organization shall have to submit the application before the implementation of the project. The incentive can be availed only once during the 5 year tenure of the policy. Additional conditions to avail the incentive will be mentioned separately in guidelines

Special Package of Incentives

Government of Andhra Pradesh is fully committed to the well-being of the Socially Disadvantaged Groups viz., the Scheduled Castes (SCs), the Scheduled Tribes (STs) Backward Class (BC) and Women. In order to actively involve them in economic development for inclusive growth, special package of incentives have been proposed. These units should be wholly promoted by SC/ST/BC and Women entrepreneurs, as the case may be.

f. Package for SC/ST entrepreneurs The provisions in the package are applicable to those units wherein the sole proprietor belongs to SC/ST category. SC/ST entrepreneurs can also set up industries covered in ineligible list of the policy to avail incentives in this policy. 1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use 2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations 3. 50% rebate in land cost limited to ₹20 lakhs in Industrial Estates/Industrial Parks 4. 25% Land conversion charges for the industrial use limited to ₹10 lakhs 5. Fixed power cost reimbursement @ ₹1.50 per unit for 5 years from the date of commencement of commercial production. 6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which will be deducted from the eligible investment subsidy. 7. 35% investment subsidy on fixed capital Investment by SC & ST Entrepreneurs and additional 10% investment subsidy for SC Women &ST Women Entrepreneurs, with a maximum limit per unit is ₹75lakhs (i.e. 35% for SC &ST Entrepreneurs and 45% for SC Women and ST Women entrepreneurs). Additional 5% investment subsidy for units set up in Scheduled Areas by ST entrepreneurs with a maximum limit per unit is ₹75 lakhs 8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small Enterprises for a period of 5 years from the date of commencement of commercial production 9. Reimbursement of 75% net VAT/CST/SGST to medium enterprises for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier

10. Reimbursement of 50% VAT/CST/SGST to large enterprises for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier 11. Interest subsidy on the term loan taken on the fixed capital investment in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date of commencement of commercial production 12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited to ₹5,000 per person 13. 50% subsidy on the expenses incurred for quality certification/ patent registration limited to ₹3 lakhs for micro and small enterprises 14. Incentives under Swachh Andhra (Para V) will be applicable for SC/ST entrepreneurs 15. For enterprises set up by SC/ST entrepreneurs, infrastructure like roads, power and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of ₹1 crore, subject to: a. The location should be beyond 10 Kms from the existing Industrial Estates/IDAs having vacant land/shed for allotment b. Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry. 50% of the cost of infrastructure is raised to 75% in respect of units set up by ST entrepreneurs in Scheduled areas Note: 50% of the budget will be allocated to manufacturing activities and 50% for service sector activities. However, in service sector high end vehicles (except taxies, lorries, tippers, water tanker etc. meant for self-employment) will not be allowed under the scheme.

g. Package for BC entrepreneurs The provisions in the package are applicable to those units wherein the sole proprietor belongs to BC category. 1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use 2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations

3. 50% rebate in land cost limited to ₹20 lakhs in Industrial Estates/Industrial Parks 4. 25% Land conversion charges for the industrial use limited to ₹10 lakhs 5. Fixed power cost reimbursement @ ₹1.50 per unit for 5 years from the date of commencement of commercial production. 6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which will be deducted from the eligible investment subsidy. 7. 35% investment subsidy on fixed capital Investment by BC Entrepreneurs and additional 10% investment subsidy for BC Women Entrepreneurs, with a maximum limit per unit is ₹75 lakhs (i.e. 35% for BC Entrepreneurs and 45% for BC Women entrepreneurs) 8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small Enterprises for a period of 5 years from the date of commencement of commercial production 9. Reimbursement of 75% net VAT/CST/SGST to medium enterprises for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier 10. Reimbursement of 50% VAT/CST/SGST to large enterprises for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier 11. Interest subsidy on the term loan taken on the fixed capital investment in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date of commencement of commercial production 12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited to ₹5,000 per person 13. 50% subsidy on the expenses incurred for quality certification/patent registration limited to ₹3 lakhs for micro and small enterprises 14. Incentives under Swachh Andhra (Para V) will be applicable for BC entrepreneurs 15. For enterprises set up by BC entrepreneurs, infrastructure like roads, power and water will be provided at doorstep of the industry for standalone units by

contributing 50% of the cost of infrastructure from IIDF with a ceiling of ₹1 crore, subject to: c. The location should be beyond 10 Kms from the existing Industrial Estates/IDAs having vacant land/shed for allotment d. Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry.

h. Package for Women Entrepreneurs The provisions in the package are applicable for micro and small units only. Only first generation women entrepreneurs are eligible for this special package 1. 25% investment subsidy on fixed capital Investment by women Entrepreneurs, with a maximum limit per unit of ₹30 lakhs 2. Seed capital assistance to First Generation Entrepreneurs @15% of the Machinery cost, which will be deducted from the eligible investment subsidy 3. All other incentives as per Industrial Development Policy 2015-20 e. industry.

i.

Package for Women Entrepreneurs

The provisions in the package are applicable for micro and small units only. Only first generation women entrepreneurs are eligible for this special package 4. 25% investment subsidy on fixed capital Investment by women Entrepreneurs, with a maximum limit per unit of ₹30 lakhs 5. Seed capital assistance to First Generation Entrepreneurs @15% of the Machinery cost, which will be deducted from the eligible investment subsidy 6. All other incentives as per Industrial Development Policy 2015-20

4. Incubation Centre for promoting start-ups GoAP shall handhold setting up of world-class incubation centres to provide much needed thrust to promote startups and cultivate innovative ideas. GoAP will encourage setting up of incubation centres in Smart Industrial Township (SIT), premier educational institutes, Mega Industrial parks and startup villages. Additionally, an incubation centre will be set up in IIM Visakhapatnam on PPP basis.

5. Planned Industrial Development GoAP shall encourage planned, responsible and sustainable industrial development. While setting up of industrial units in residential zones, fragile ecosystems etc. will be discouraged, impetus shall be laid on cluster based approach to planned industrial development. GoAP will encourage setting up of multi-sector/sector specific Industrial parks by the Private sector on a PPP basis. For all such parks, GoAP will provide external infrastructure on a case to case basis.

I.

Industrial Area Development Authority GoAP will set up Industrial Area Development Authorities under the aegis of article 243 Q of the constitution to facilitate and encourage investment into specific investment zones like SIRs, industrial parks, Industrial corridor nodes etc.

II. Industrial Corridors The Industrial corridors seek to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development. Industrial corridors will be developed on node based approach. Funding of the node will be provided by multi-lateral agencies such as ADB / JICA. The proposed Corridor nodes in the state are: a)

Under VCIC the following nodes will be developed: a. Visakhapatnam (Phase I) b. Srikalahasti-Yerpedu (Phase I) c. Kakinada (Phase II) d. Gannavaram-Kankipadu (Phase II)

b)

Under CBIC the following node will be developed: a. Krishnapatnam in Nellore Dist.

c) Under PCPIR the following locations will be developed: a. Vishakhapatnam b. Nakkapalli c. Kakinada

National Investment and Manufacturing Zones (NIMZ) Govt. of India has accorded in-principle approval for setting up two NIMZs:

a. Chittoor b. Prakasam These NIMZs would be developed as world class industrial regions with each spread over a minimum of 5,000 hectares. These regions will act as growth nodes for industrial development and employment generation in the state. Please refer to National Manufacturing Policy of GoI for NIMZ guidelines.

Information Technology Investment Regions (ITIR) ITIRs have been proposed in two districts: a. Visakhapatnam b. Chittoor ITIR would be a combination of IT/ITES and Electronics Hardware Manufacturing Units; Public utilities, residential area, social infrastructure and administrative services. Such regions could include new integrated townships, SEZs, industrial parks etc. ITIR would have a clear delineation between the IT/ITES areas and Electronic Hardware Manufacturing (EHM) areas. Each ITIR is expected to be a specifically notified investment region with minimum area of 40 Sq.Kms planned for IT/ITES and EHM Units.

Smart Industrial Township (SIT) GoAP will facilitate setting up of SITs across various districts with local selfgovernment status. Following external infrastructure for SIT will be provided by the government: a. Four lane road to the nearest national highway b. Dedicated feeder for uninterrupted power supply c. Dedicated water supply d. Right of way to create a connectivity to the nearest railway line and or port e. Fiber connectivity with no bandwidth constraints More details will be made available in a separate SIT policy

Special Economic Zones (SEZ) SEZs aim to provide simplified clearances and controls, world class infrastructure and a stable fiscal regime to attract foreign investments in the state.Various incentives will be given to the tenants of SEZs as declared by the Government of India in SEZ Policy announced in April 2000.Currently there are 16functional SEZ’s in AP and additional four SEZs with in-principle approval.

Industrial Parks Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has developed over 300 industrial parks (including SEZs) spread over an extent of about 1,21,655 acres. GoAP will develop new industrial parks and upgrade/maintain the existing ones.

6. Focus on thrust sectors GoAP shall frame sector specific policies with a focus on state’s position in the value chain, available and potential skill sets, locational advantages and strategic importance in socioeconomic context Instruments to facilitate the objectives are sector-specific parks, incentives, simplified clearances and skill development initiatives.

Note: Incentives mentioned in the Industrial Development Policy 2015 - 20 will be extended to industries as per guidelines to be notified separately.

Aquaculture Aquaculture (less commonly spelled aquiculture[), also known as aquafarming, is the farming of fish, crustaceans, molluscs, aquatic plants, algae, and other organisms. Aquaculture involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is the harvesting of wild fish.Mariculturerefers to aquaculture practiced in marine environments and in underwater habitats.

Aquaculture such as cultivating fish, crustaceans, molluscs, Shrimp production etc., are the major occupations of coastal areas. Andhra Pradesh is the largest producer of shrimp in the country, with 70% of the production from the state itself. [ The geographical location of the state allows marine fishing as well as inland fish production. Cyclones may do less damage to aquaculture than to crop production. Hence, farmers are getting attracted towards this industry. It grew from ₹3.46

billion (US$48 million) to ₹5.61 billion(US$78 million).[11] The Waterbase Limited is an aquaculture unit located at Nellore, it encourages scientific shrimp farming. ] Most exported marine exports include Vannamei shrimp.

Industries The domestic product of Industrial sector accounts for ₹507.45 billion (US$7.1 billion). The state has also started to focus on the fields of information technology and biotechnology. Several major heavy industries are in operation in Visakhapatnam. The state still has to make its mark in Hi-tech engineering. Automobiles and Auto components Industry, spices, mines and minerals, Textiles and apparels, IT industry, Bulk drugs and pharmaceuticals, horticulture, poultry farming are the main industries in Andhra Pradesh. Software industry in Andhra Pradesh: The Indian state of Andhra Pradesh is recreated in 2014 with the new capital city at Amaravati located on the banks of Krishna River, the third longest river in India. Andhra Pradeshis growing rapidly and attracting national and multinational companies. The software industry in Andhra Pradesh is conveniently spread out to different cities, namely Visakhapatnam, Tirupati and capital city of Amaravati, and not clustered just in the capital, a model which was not followed in its previous avatar with capital at Hyderabad, leading to so many social, economic and political problems. Most software companies in Andhra pradesh are out of state or foreign companies which are also called Multinational corporation's. Domestic software industry in Andhra Pradesh seems to be at its beginning stages.     

Cyient - India HSBC-GLT - United Kingdom IBM - United States Tech Mahindra - India Wipro Technologies - India

HCL Technologies- India and Location Vijayawada,Amaravati Industrial estates: As of June 2013, the state had 39 operational special economic zones (SEZs). There are 272 Industrial estates and industrial developmentareas in the State, covering an area of 14700 hectares. The State Government is in the process of developing Industrial Parks at different places, for specific groups of industries like Visakhapatnam Export Processing Zone. Food parks, one each in the 2 regions of Coastal Andhra (value added rice products, dairy, horticultural, marine etc.); and in Rayalseema region (processing of vegetables, edible oils and export oriented industry). Agri Export Zones for the following produce are proposed at the places mentioned against them  

Red Chilli – Guntur district, Mangoes – Krishna district,



Mango pulp and fresh vegetables – Chittoor

Andhra Pradesh Handicrafts Handicrafts have always been a remarkable feature of Indian art and crafts. Andhra Pradesh is yet another great site offering ample astounding handicrafts. The artisans still make these extraordinary handicrafts with dexterity Budithi Brassware In Srikakulam district, Budithi is a small village that is known for its astonishing brassware. The items carved out of alloys range from traditional to modern ones. The exclusive art articulates in the form of traditional utensils and contemporary pots. Brass is commonly used to make the objects. These objects are adorned with geometric patterns and floral designs. Durgi Stone Craft Durgi is a small town, located at a distance of 10 km from Macherla. The traditional skill of making sculptures is still practiced and taught at the School of Sculpture and Stone Carving situated here. From generation to generation, these skills have been passed and the ancient methods are still observed to create the masterpieces of art. Veena Manufacturing 'Veena' is the one amongst the oldest musical instruments of India. No composition of Carnatic music is complete without the cadence of this instrument. Bobbili town is much acclaimed for manufacturing Veena. The instruments made here are known for their fullness of tone. Moreover, they are available in different designs and patterns. Kondapalli Toys Kondapalli toys are famous for being eco-friendly and different from others. Made out of softwood, known as 'Tella Poniki', the toys of Kondapalli utilize sawdust, tamarind seed powder, enamel gums and watercolors in their creation. As and when a toy is carved out from wood, it is further shaped with a paste made of tamarind, wood and sawdust. After the whole process, 'Sudda' (white lime) is applied on the toy and then, it is left for a day or two to dry. Subsequently, the artists paint the toys in different colors, indicating the character of the image. Lacquer Ware In Andhra Pradesh, Etikoppaka is famous for its amazing lacquer ware. This craft involves application of lacquer on wood. Lacquering could be done either by hand or machine. The hand-lathe is preferred to shape delicate items. The lac is applied when the objects get arid. In this process, the lacstick is hard-pressed against the woodenware meant to be lacquered. Since the object keeps on revolving, the friction generates heat, which softens the lac and facilitates the color to get stick. With the help of brush, designs are painted on the figures, objects and toys. The lac bangle is the most popular lacquerware that also comes embellished with stones, beads, glass and mirrors.

Regional Rural Bank Regional Rural Banks (RRBs) also known as Gramin banks, are Indian scheduled banks (Government banks) operating at regional level in different States of India. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services. However, RRBs may have branches set up for urban operations and their area of operation may include urban areas too. The area of operation of RRBs is limited to the area as notified by Government of India covering one or more districts in the State. RRBs also perform a variety of different functions. RRBs perform various functions in following heads: 1 Providing banking facilities to rural and semi-urban areas. 2 Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc 3

Providing Para-Banking facilities like locker facilities, debit and credit cards

4 Small financial banks

Organizational structure The organizational structure for RRB's varies from branch to branch and depends upon the nature and size of business done by the branch. The Head Office of an RRB normally had three to seven departments. The following is the decision making hierarchy of officials in a Regional Rural Bank.       

Board of Directors Chairman & Managing Director General Manager Chief Manager/Regional Managers Senior Manager Manager Officer / Assist

List of Regional Rural banks Andhra Pradesh    

Andhra Pradesh Grameena Vikas Bank Andhra Pragathi Grameena Bank Chaitanya Godavari Grameena Bank Saptagiri Grameena Bank

AGRICULTURE CREDIT IN ANDHRAPRADESH: REGIONAL RURAL BANKS Agriculture is the backbone of our economy and its prosperity can largely be responsible for the well being of the entire economy. Agriculture is a major source of livelihood in India. The majority of poor people living in rural areas and the Indian economy depend from last 60

years. Agricultural finance significance is to increase access to financial services for farmers and other enterprises in rural areas. The agricultural finance is provided only by cooperatives, land developed banks and private money lenders. After nationalization of commercial banks (1969) and establishment of regional rural banks in 1975 both banks are extending credit facilities for agricultural purpose. Regional rural banks were established under the provisions of an ordinance promulgated on the 26th September 1975 and the RRBs Act, 1975 with an objective to ensure sufficient institutional credit for agriculture and other rural sector. The RRBs mobilize financial resources from rural and semi urban areas and grant loans and advances mostly to small and marginal farmers, agricultural laborers and rural artisans. The objectives of RRB are summarized as to provide cheap and liberal credit facilities to small and marginal farmers, agricultural to save the rural poor from the money lenders, to act as a catalyst element and there by accelerate the economic growth in the particular region. Keywords: Regional Rural Banks, Agricultural Credit, Credit Facilities to Agriculture. Agriculture plays a crucial role in the development of the Indian Economy. And still about two –third of the working population depends upon this sector for their lively hood agriculture credit in India began with the passing of the Co-operative credit societies Act, 1904 agriculture alone providing livelihood to about 60 percent of the people and contributing about 15 percent to the gross domestic product (GDP) and is greatest private sector occupation.. In the past two decades there was a tremendous increase in agricultural production from just 1950 in50 million tons during 1990-91 to176.39 million tons in 20112012 259.29 million tons. Objectives: 1. To study the developed of institutional, non-institutional credit seaport to agricultural sector. 2. To study the credit disbursement in institutional credit in selected area. 3. To study the credit utilization of in selected area. The Government of India has initiated several policy measures to improve the accessibility of farmers to the institutational sources of credit. The emphasis of their policies has been on progressive institutionalization. For providing timely and adequate credit support to all farmers with particular focus on small and marginal farmers and weaker sections of society to enable them to adopt modern technology and improved agricultural practices for increasing agricultural production and productivity. These policy measures have resulted in the increase in the share of institutional credit of the rural household

CREDIT BASED ON PURPOSE: The credit requirements of farmers can be classified on the basis of purpose into following categories. 1. PRODUCTIVE: all credit requirements of farmers directly affecting agricultural productivity, e.g. for buying seeds, fertilizers, manure and agricultural implements, digging and repair of wells and tube wells payment of wages, improvements of land etc

CONSUMPTION NEEDS: In the long interval of time between two crops farmers do not have sufficient income and need credit to meet their basic needs 3. UNPRODUCTIVE: Indian farmers often borrow for unproductive purposes like celebration of marriage, birth, death, litigation, religious functions, festivals etc. 2.

SOURCES OF CREDIT: There are two sources of credit available to the farmers. 1. Institutional sources. 2. Non-institutional sources. 1. INSTITUTIONAL SOURCES: Consists of cooperatives, commercial banks; lead bank scheme, cooperative agriculture and rural development banks, regional banks and National Banks for agricultural rural development [NABARD]. 2. NON INSTITUTIONAL SOURCESS: These included money lenders, traders, commission’s agents, relatives, and landlords. There are rich farmers or land-lords, which combine farming with money lending. There are also professional money lenders whose only occupation is money lending. Consists of Initiatives, service Area approach, national agricultural insurance scheme (NAIS), Pilot modified national agricultural insurance scheme (MAAIS), kisan credit card scheme. Interest subvention scheme, extension of interest subvention scheme to post harvest loans, Bringing green revolution in eastern India (BGREI): financing agricultural investments in the eastern region- concessional refinance support.

Source of rural credit: Development countries like India still have dominance of agricultural in their economy in terms of revenue generation as well as manpower employment. About 60percent population engaged in agricultural in India contributes to 18 percent of the GDP whereas the development countries get only 2 percent of their GDP from agricultural. Agricultural finance is a very important thing to the farmers. Credit is a crucial input process of development. The various sources of agricultural credit can be classified in two groups. 1. Non-institutional agencies 2. Institutional agencies 1. Non-institutional agencies: non institutional agencies include the local villages, moneylenders, and their agents. 2. Institutional agencies: institutional agencies co-operative societies, commercial banks regional rural banks and NABARD

Agricultural Rural credit in Andhra Pradesh (RRB’s) Agriculturists borrow loans from institutional agencies (co- operatives, commercial banks and RRB) and non- institutional agencies (money lenders, traders, relatives and land lords) to increases their productivity and income level. In earlier days the agricultural finance is provided only by co- operatives, land development banks and private money lenders. After nationalization of commercial banks (1969) and establishment of regional rural banks in (1975), both banks are extending credit facilities for agricultural activities. The nationalizations’ of banks had made at least three positive contributions towards the up-liftmen of the rural economy. They are, 1. Institutionalization of credit. 2. Commercialization of agriculture ,and

3. Adequacy of credit flow both for production and consumption purposes.

MICRO FINANCE Another alternative rural credit policy is micro finance system. Micro finance can be defined as provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban areas for enabling them to raise their income level and improve living standards. These days‟ micro financing programmes in emerging economies have taken centre stage of development effort. This Programme is targeting the poorest of the poor. Micro Finance: Definition There is no statutory definition of micro finance. The taskforce on supportitative policy and Regulatory Framework for Microfinance has defined microfinance as “Provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve living standards”. The term “Micro” literally means “small”. But the task force has not defined any amount. However as per Micro Credit Special Cell of the Reserve Bank Of India , the borrowed amounts up to the limit of Rs.25000/- could be considered as micro credit products and this amount could be gradually increased up to Rs.40000/- over a period of time which roughly equals to $500 – a standard for South Asia as per international perceptions The term micro finance is sometimes used interchangeably with the term micro credit. However while micro credit refers to purveyance of loans in small quantities, the term microfinance has a broader meaning covering in its ambit other financial services like saving, insurance etc. as well. “Microfinance” is banking through groups. The essential features of this approach are to provide financial services through the groups of individuals, formed either in joint liability or co-obligation mode. The other characteristics of the microfinance approach are: 1. Savings must be more than the total credit that they seek. 2. The interest rate varies according to their credit history. The more prompt one is in repaying the loan the lower would be the rate of interest. 3. Group plays an important role in credit appraisal, monitoring and recovery. The Stated Objectives of Micro-Finance The important objective of micro finance programmes in India is to provide credit to the poorest of the poor by providing loans without insistence on collateral. The second motive of micro-finance is to inculcate the habit of thrift among the poor and in order to improve their living standards. Micro finance can has been viewed as a potential way towards the empowerment of women also. as a potential way towards the empowerment of women also. Many of the studies on micro-finance have taken the institutional structure of Micro-Finance (MF) as a given and proceed to evaluate its impact from different dimensions. Micro-Finance has been seen to emerge due to the failure of formal and informal rural credit institutions. Very little by the way of theoretical analysis is available on the fundamental change that MF as an institution solves the problems of rural credit

WAYS OF DELIVERING MICRO FINANCE IN INDIA Micro finance is a financial service which includes savings, credit, and insurance, leasing etc. that is, any type of financial service provided to customers to meet their normal financial needs. Micro finance institutions around the world follow a variety of different methodologies for the provision of financial services to low income families. The focus of such services is on women, based on the observation that in financial matters, they are more responsible than men particularly since their mobility is restricted by family responsibilities1 . The following is the typology of major methodologies employed by the micro finance institutions for the delivery of financial services to low income clients

1. (1)Self help groups and SHG –Bank linkage Programme The SHG is the dominant form of micro finance in India. A self help group consists of 15-20 members who are poor, having low savings capacity and who depend on money lenders or private sources for meeting their consumption needs and other pressing obligations. In other words a typical self help group would comprise of likeminded individuals who regularly save small amounts of money. To facilitate group processes and ensure transparency of operations, group meetings are regularly convened at a predetermined place, date and time. The group members take collective decision on all matters keeping in view the welfare and prosperity of the members. More often lending decisions like purpose, size, interest rate and repayment period for loans are decided case by case, paramount consideration being given to needs and aspirations of individual borrowing members. Similarly, peer or moral pressure is exerted on members to continue savings to provide every member an opportunity to avail loans. Thus SHG formation necessitates an all encompassing environment for conscious leadership development, decentralized decision making, transparency in transactions, peer pressure for sustainable group action and enterprise development among rural poor. In 1992 NABARD introduced a pilot project for linking SHGs with banks to encourage saving and thrift habit among the poor and supplement to meet their credit needs through banking system. NABARD has facilitated and extensively supported aprogramme which entails commercial banks lending directly to SHGs rather than via bulk loans to MFIs. NABARD refinance the loans of commercial banks given to SHGs (2). Individual Banking Program (IBP) IBPs entail the provision by micro-finance institutions of financial services to individual clients though they may sometimes be organized into joint liability groups, credit and savings cooperatives or even SHG s. The model is particularly popular for micro finance through cooperatives In case of cooperatives, all borrowers are members of the organization directly or indirectly by being members of primary cooperatives or associations which are members of the apex society. Credit worthiness and loan security are a function of cooperative membership within which member savings and peer pressure are assumed to be a key factor. Through the magnitude and timing of savings and loans are largely unrelated, a special effort is made to mobilize savings from members. There is now a large number of new generation cooperative credit societies in India devoted specifically to providing financial services to the poor. Most of these are in Andhra Pradesh which was the first to enact a law permitting mutually aided as opposed to traditional government assisted cooperative societies. (3).The Grameen Model This model was initially promoted by the well known Grameen Bank of Bangladesh. These undertake individual lending but all borrowers are members of 5 member joint liability group. Such groups from the same village form a centre. Within each group and the centre peer pressure is the key factor in ensuring repayment. Each borrower‟s credit worthiness is determined by the overall credit worthiness of the group. Savings are compulsory component of the loan repayment schedule but do not determine the magnitude or timing of theloan. There are some two dozen MFI s in India that follows this model. SHARE, BASIX, SKS and SPAN DANA, ASMITHA, SMITHA, etc. are the some of the important examples of this model. (4). Mixed Models Some MFI s started with the Grameen model but converted to the SHG model at a later stage. However, they did not completely do away with Grameen type; they are an equal mix of SHG and Grameen model. Others have chosen to adopt either the Grameen or the SHG model to their markets, while some organizations like BASIX use a number of delivery

channels and methodologies. Such MFI s are still relatively few but with increasing innovation becoming the norm in Indian micro finance , their numbers are growing.

REORGANISATION OF COOPERATIVE CREDIT STRUCTURE IN ANDHRA PRADESH Andhra Pradesh State Co-operative Bank The Andhra Pradesh State Cooperative Bank Limited (APCOB) is a Scheduled State Cooprative Bank for the State of Andhra Pradesh. The Bank is committed to agricultural and rural development through the Cooperatives. The APCOB and affiliate credit structure in Andhra Pradesh showcase a unique experiment of Single Window Credit Delivery System, as a first of its kind in the country under which, both investment and production credit for agriculture is provided at the grass root level through a single agency. The PACS at village level has been modelled as a one stop shop for the farmer for availing of varied short, medium and long term loans both under production and investment credit, input requirements, produce storage facilities, essential commodities, banking and other rural based services. In tune with it's main focus, the APCOB, through the DCCBs and PACS, provides refinance support for agricultural production credit for seasonal agricultural opertions (crop loans), investment credit for investments in agriculture for Minor Irrigation, Farm Mechanisation, Land Development, Horticulture, Dairy, Poultry, Fisheries and other diversified investments and allied activities. In times of natural calamities, the Bank provides credit stabilisation arrangements by way of conversion, rephasement, postponement and reschedulement of agricultural loans. Credit to the weavers Sector through Primary Handloom and Silk Weavers Credit Societies, as also financing to the Apex Weavers Society is another important portfolio through which rural development is fostered. Loans to Employees Credit Societies is also extended to provide timely financial support to employees of various organisations mainly through the DCCBs. This apart, the Bank finances Industrial Cooperatives and agroprocessing industries in the cooperative fold like Sugar Factories, Spinning Mills, Milk Unions and Dairy Federation.

Services The loan portfolio of APCOB covers Crop Loans, Medium Term Loans and Long Term Loans for Agricultural purposes. Substantial support is being extended to the Governmentsponsored District Rural Development Agency projects through IRDP Loans and also to Cooperative Sugar Factories, Spinning Mills, Weavers Societies, Employees Cooperative Credit Societies and other Societies. APCOB is also extending finance to many Apex Cooperative institutions in the State like APCO, MARKFED, GCC etc. APCOB provides all types of banking facilities to it's customers through attractive deposit schemes as also various types of loans for it's urban clientele through it's own branch network.

Deposit schemes: Savings bank This facility is available to customers to deposit and withdraw money as per their convenience. The facility is extended with or without cheque book as per the needs of the customer. Prompt and courteous service awaits our customers at our Branches

Current account Current Account with cheque book facility is offered by the Bank to its corporate and business clients. Clean and secured overdraft facility is also provided on the Current Account.

Fixed deposit The Bank offers attractive rates on Fixed Deposits for various maturity periods. Facility for drawing interest on a monthly or quarterly basis is provided.

Gruhalakshmi deposit This is a cumulative term deposit scheme under which money multiplies faster to a yield targetted amount for the customer as per the deposit period convenient to him.

Cash certificate This is a cumulative deposit scheme under which interest is accumulated to the principal deposit amount and lumpsum paid at the end of the investment period. Customers can encash sizeable amounts by investing small amounts initially. Ideally suited to customers saving for a targetted purpose for the future.

Recurring deposit Under this scheme, the customer can save small amount in monthly instalments for a fixed term to get back a lumpsum. Interest is accumulated on the principal over the saving period at attractive rates of interest.

Other special deposit schemes The Bank is offering a host of other special deposit schemes to suit the savings needs of its customers like Aishwarya Deposit Scheme and Special Tax Saver Deposit Scheme.

Loan schemes The Bank offers the following attractive loan schemes to individuals who are its customers.

Clean overdraft Overdrafts on Current Accounts are provided to the customers upto five times their net salary against a simple surety of employees/employers undertaking.

Secured overdraft Secured overdrafts on current accounts are provided to customers against the security of National Saving Certificates, Kisan Vikas Patras, as also against the security of urban immovable property.

Gold loans Customers can avail of Gold Loans against pledge of gold ornaments at all branches of the Bank.

Consumer durable loans The Bank provides loans for purchase of consumer durables to its customers for buying of items like TV, Refrigerator, Air Conditioners and a host of other consumer durables.

Education loans Under the Vidya Vikasa Vardhini Scheme, the Bank is providing loans to students/parents of students for pursuing professional courses like Engineering, Medicine, Computer Education and other courses including technical courses/job oriented courses. The loan is repayable at attractive rate of interest and easy repayment period.

Car finance Finance for purchase of cars is provided to professionals and self employed entrepreneurial and salaried customers of the Bank for their personal use at attractive rates of interest and repayment period ranging upto 60 months.

Auto finance The Bank provides finance to unemployed persons for self employment purpose by providing commercial vehicles like Auto rickshaws etc. The loan is provided against two sureties.

Traders finance Loans are provided to wholesale/retail traders and businessmen engaged in trade activity for running their business on furnishing of collateral security and on pledge of stocks. This facility is extended in the nature of cash credit limit for facilitating continuous operation based on the day-today business needs

Housing finance The Bank offers attractive Housing Loan Scheme both for construction or purchase of a new house/flat as also for purposes of repairs and extension to existing house. Comfortable repayment period for the loan is provided.

Real estate mortgage loan Loan facility is provided against mortgage of fixed assets/property for purchase of house, house construction, house repairs, business, higher studies, and health care, at attractive rates of interest and comfortable repayment period.

Other services Fund transfer and demand drafts: The Bank arranges transmission of funds of it' s customers to locations at every nook and corner of the country by it's various transfer mechanism as also issuance of Demand Drafts at low commission rates.

Collection of cheques and bills The Bank undertakes the collection of local and outstation cheques and bills for a nominal fee.

Standing instructions The Bank undertakes all types of standing instructions issued by customers on their accounts with the bank.

Safe deposit lockers Safe Deposit Lockers are available at all branches of the Bank of various sizes to suit the needs of different customers. An exclusive safe deposit vault with more than 1000 lockers are provided at the centrally located Narayanaguda Branch of the Bank

Evolution of Commercial Banks in India The commercial banking industry in India started in 1786 with the establishment of the Bank of Bengal in Calcutta. British India at the time established three Presidency banks, namely,

1. Bank of Bengal (established in 1809) 2. Bank of Bombay (established in 1840) 3. Bank of Madras (established in 1843) In 1921, the three Presidency banks were amalgamated to form the Imperial Bank of India, which took up the role of a commercial bank, a bankers’ bank and a banker to the Government. The Imperial Bank of India was established mainly with European shareholders. After the establishment of the Reserve Bank of India (RBI) as the central bank of the country in 1935, the role of the Imperial Bank of India came to an end In 1865, the Allahabad Bank was established purely by Indian shareholders. Punjab National Bank came into being in 1895. Between 1906 and 1913, other banks like Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. After independence, the Government of India started taking steps to encourage the spread of banking in India. In order to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank taking over the Imperial Bank of India and integrating with it, the former state-owned and state associate banks. Accordingly, State Bank of India (SBI) was constituted in 1955. Subsequently, in 1959, the State Bank of India (subsidiary bank) Act was passed, enabling the SBI to take over eight former state-associate banks as its subsidiaries. To better align the banking system to the needs of planning and economic policy, it was considered necessary to have social control over banks. In 1969, 14 of the major private sector banks were nationalised. This was an important milestone in the history of Indian banking. This was followed by the nationalisation of another six private banks in 1980. With the nationalisation of these banks, the major segment of the banking sector came under the control of the Government. The nationalisation of banks boost to branch expansion in rural and semi-urban areas, which in turn resulted in huge deposit , thereby giving a boost to the overall savings rate of the economy. It also resulted in scaling up of lending to agriculture and its allied sectors. To create a strong and competitive banking system, a number of reform measures were initiated in the early 1990s. The thrust of the reforms was on increasing operational efficiency, strengthening supervision over banks, creating competitive conditions and developing technological and institutional infrastructure. These measures led to the improvement in the financial health, soundness and efficiency of the banking system.

One important feature of the reforms of the 1990s was that the entry of new private sector banks was permitted. Following this decision, new banks such as ICICI Bank, HDFC Bank, IDBI Bank (public bank) and UTI Bank (now Axis Bank) were set up.

1. 2. 3. 4. 5.

Commercial banks in India have traditionally focused on meeting the short-term financial needs of industry, trade and agriculture. However, the increasing diversification of the Indian economy, the range of services extended by commercial banks. Currently, commercial banks in India are categorised into five different groups according to their ownership and/or nature of operation: State Bank of India and its Associates Nationalised Banks Private Sector Banks Foreign Banks Regional Rural Banks

Functions of Commercial Banks Commercial banks are authorized to provide a variety of financial services which includes loans, savings accounts, etc. In this article, we will talk about various functions that a commercial bank performs. Broadly speaking, the functions are of two categories – primary and secondary

The primary functions of a commercial bank are as follows: 1. Accepting Deposits Commercial banks accept deposits from people, businesses, and other entities in the form of: 

Savings deposits – The commercial bank accepts small deposits, from households or persons, in order to encourage savings in the economy.

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Time deposits – The bank accepts deposits for a fixed time and carries a higher rate of interest as compared to savings deposits.

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Current deposits – These accounts do not offer any interest. Further, most current accounts offer overdrafts up to a pre-specified limit. The bank, therefore, undertakes the obligation of paying all cheques against deposits subject to the availability of sufficient funds in the account.

2. Lending of Funds Another important activity is lending funds to customers in the form of loans and advances, cash credit, overdraft and discounting of bills, etc. Loans are advances that a bank extends to his customers with or without security for a specified time and at an agreed rate of interest. Further, the bank credits the loan amount in the customers’ account which he withdraws as per his needs. Under the cash credit facility, the bank offers its customers a facility to borrow cash up to a certain limit against the security of goods. Further, an overdraft is an arrangement that a bank offers to customers wherein a temporary facility is offered to overdraw from the current account without any security. The limit is pre-specified. Additionally, banks also discount and purchase bills. In both of these cases, a bank credits the amount of the bill in the customer’s account after deducting discounts and commissions. Subsequently, this amount is recovered from the debtors on the maturity of the instrument.

The secondary functions of a commercial bank are as follows: Bank as an Agent A bank acts as an agent to its customers for various services like: 

Collecting bills, draft, cheques, etc.

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Paying the insurance premium, rent, loan installments, etc.

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Working as a representative of a customer for purchasing or redeeming securities, etc. in the stock exchange.

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Acting as an executor, administrator, or trustee of the estate of a customer

Also, preparing income tax returns, claiming tax refunds, etc. General Utility Services 

There are several general utility services that commercial banks offer like: 

Issuing traveler cheques

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Offering locker facilities for keeping valuables in safe custody

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Also, issuing debit cards and credit cards, etc. CLASSIFICATION OF COMMERCIAL BANKS 1. 1.Scheduled banks: Banks which have been included in the Second Schedule of RBI Act 1934. They are categorized as follows: 2. Public Sector Banks: - are those banks in which majority of stake are held by the government. Eg. SBI, PNB, Syndicate Bank, Union Bank of India etc. 3. Private Sector Banks: - are those banks in which majority of stake are held by private individuals. Eg. ICICI Bank, IDBI Bank, HDFC Bank, AXIS Bank etc. 4. Foreign Banks: - are the banks with Head office outside the country in which they are located. Eg. Citi Bank, Standard Chartered Bank, Bank of Tokyo Ltd. etc. 5. None scheduled commercial banks: - Banks which are not included in the Second Schedule of RBI Act 1934. IMPORTANCE OF BANKS IN THE DEVELOPMENT OF THE COUNTRY

Banks are one of the most important parts of any country. In this modern time money and its necessity is very important. A developed financial system of the country ensures to attain development. A modern bank provides valuable services to a country. To attain development there should be a good developed financial system to support not only the economic but also the society. So, a modern bank plays a vital role in the socio economic matters of the country. Some of the important role of banks in the development of a country is briefly showing below.

PROMOTE SAVING HABITS OF THE PEOPLE: Bank attracts depositors by introducing attractive deposit schemes and providing rewards or return in the form of interest. Banks providing different kinds of deposit schemes to its customers. It enable to create banking habits or saving habits among people. CAPITAL FORMATION AND PROMOTE INDUSTRY: Capital is one of the most important parts of any business or industry. It is the life blood of business. Banks are increase capital formation by collecting deposits from depositors and convert these deposits in to loans advances to industries. SMOOTHING OF TRADE AND COMMERCE FUNCTIONS: In this modern era trade and commerce plays vital role between any countries. So, the money transaction should be user friendly. A modern bank helps its customers to sent funds to anywhere and receive funds from anywhere of the world. A well developed banking system provides various attractive services like mobile banking, internet banking, debit cards, credit cards etc. these kinds of services fast and smooth the transactions. So, bank helps to develop trade and commerce GENERATE EMPLOYMENT OPPORTUNITY: Since a bank promote industry and investment, there automatically generate employment opportunity. So, a bank enables an economy to generate employment opportunity. SUPPORT AGRICULTURAL DEVELOPMENT: Agricultural sector is one of the integral part of any economy. Food self sufficiency is the major challenge and goal of any country.

Modern bank promote agricultural sector by providing loans and advances with low rate of interest compared to other loans and advances scheme APPLYING OF MONITORY POLICY: Monitory policy is a important policy of any government. The major aim of monitory policy is to stabilize financial system of the country from the dangerous of inflation, deflation, crisis etc. BALANCED DEVELOPMENT: Modern banks spreading its operations throughout the world. we can see number of big banks like citi bank, Baroda bank etc. It helps a country to spread banking activities in rural and semi urban areas. With the spreading of banking operations around the country, helps to attain balanced development by promoting rural areas. Modern bank plays vital role in the socio- economic development of the country. A developed banking system enables the country to attain balanced development without any special consideration of rich and poor, cities and rural areas etc.

ROLE OF COMMERCIAL BANKS IN ECONOMIC DEVELOPMENT Commercial banks are one source of financing for small businesses. The role of commercial banks in economic development rests chiefly on their role as financial intermediaries. In this capacity, commercial banks help drive the flow of investment capital throughout the marketplace. The chief mechanism of this capital allocation in the economy is through the lending process which helps commercial banks. Risk: One of the most significant roles of commercial banks in economic development is as arbiters of risk. This occurs primarily when banks make loans to businesses or individuals. For instance, when individuals apply to borrow money from a bank, the bank examines the borrower's finances, including income, credit score and debt level, among other factors. The outcome of this analysis helps the bank gauge the likelihood of borrower default. By weeding out risky borrowers, commercial banks lessen the risk of financial losses. Small Business: Commercial banks also finance business lending in a variety of ways. A business owner may solicit a loan to finance the start-up costs of a small business. Once funded, the small business may begin operations and embark on a growth plan. The aggregate effect of small business activity generates a significant portion of employment around the country. Wealth.: Commercial banks also offer types of accounts to hold or generate individual wealth. In turn, the deposits commercial banks attract with account services are used for lending and investment. For example, commercial banks commonly attract deposits by offering a traditional menu of savings and checking accounts for businesses and individuals. Similarly, banks offer other types of timed deposit accounts, such as money market accounts and certificates of deposit. Government Spending: Commercial banks also support the role of the federal government as an agent of economic Development. Generally, commercial banks help fund government

spending by purchasing bonds issued by The Department of the Treasury. Both long and short term Treasury bonds help finance government Operations, programs and support deficit spending.

Finance Commission The First Finance Commission (IAST: Vitta Āyoga) was established by the President of India in 1951 under Article 280 of the Indian Constitution. It was formed to define the financial relations between the central government of India and the individual state governments. The Finance Commission (Miscellaneous Provisions) Act, 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.[1] As per the Constitution, the Commission is appointed every five years and consists of a chairman and four other members. Since the institution of the First Finance Commission, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the Finance Commission's recommendations over the years

History As a federal nation, India suffers from both vertical and horizontal fiscal imbalances. Vertical imbalances between the central and state governments result from states incurring expenditures disproportionate to their sources of revenue, in the process of fulfilling their responsibilities. However, states are better able to gauge the needs and concerns of their inhabitants and therefore more efficient at addressing them. Horizontal imbalances among state governments result from differing historical backgrounds or resource endowments, and can widen over time. The Finance Commission was established in 1951 by Dr. B.R. Ambedkar, the thenincumbent law minister, to address these imbalances. Several provisions to bridge the fiscal gap between the Centre and the States were already enshrined in the Constitution of India, including Article 268, which facilitates levy of duties by the Centre but equips the States to collect and retain the same. Similarly, Articles 269, 270, 275, 282 and 293, among others, specify ways and means of sharing resources between the Union and States. In addition to the above provisions, the finance commission serves as an institutional framework to facilitate Centre-State Transfers. Article 280 of the Indian Constitution defines the scope of the commission: 1. The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members. 2. Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection. 3. The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

Functions Distribution of net proceeds of taxes between Center and the States, to be divided as per their respective contributions to the taxes. 1. Determine factors governing Grants-in-Aid to the states and the magnitude of the same. 2. To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance commission of the state. 3. Any other matter related to it by the president in the interest of sound finance.

4. A finance commission is an autonomous body which is governed by the government of India

The Finance Commission (Miscellaneous Provisions) Act, 1951 The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards, by laying down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers

Qualifications of the members The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who: 1. 2. 3. 4.

Are, or have been, or are qualified, as judges of a high court, Have knowledge of government finances or accounts, or Have had experience in administration and financial expertise; or Have special knowledge of economics

Procedure and powers of the commission The commission has the power to determine their own procedure and: 1. Has all powers of a civil court as per the Civil Procedure Code, 1908. 2. Can summon and enforce the attendance of any witness or ask any person to deliver information or produce a document, which it deems relevant. 3. Can ask for the production of any public record or document from any court or office. 4. Shall be deemed to be a civil court for purposes of Sections 480 and 482 of the Code of Criminal Procedure, 1898

Disqualification from being a member of the commission A member may be disqualified if: 1. 2. 3. 4.

He is mentally unsound; and as followsHe is an undischarged insolvent; He has been convicted of an immoral offence; His financial and other interests are such that it hinders the smooth functioning of the commission

Terms of office of members and eligibility for reappointment Every member will be in office for the time period as specified in the order of the President, but is eligible for reappointment provided he has, by means of a letter addressed to the president, resigned his office.

Salaries and allowances of the members The members of the commission shall provide full-time or part-time service to the commission, as the President specifies in his order. The members shall be paid salaries and allowances as per the provisions made by the Central Government.

Tenth Finance Commission The Tenth Finance Commission of India was incorporated in the year 1995 consisting of Shri Krishna Chandra Pant as the Chairman

Members The members of the Commission were:       

Shri Krishna Chandra Pant, Chair Dr. Debi Prasad Pal, Member of Parliament Shri B.P.R. Vithal Dr. C. Rangarajan, resigned on 21 December 1992 Shri M.C. Gupta, Member Secretary, relinquished charge on 31 January 1994 Shri Manu R. Shroff, In place of Dr. C. Rangarajan on 14 October 1993 Shri Arun Sinha, Member Secretary (in place of M.C. Gupta) on 1 March 1994

Recommendations  



  

The share of the Union Territories would not be determined on the grounds used for state share but it would be decided on the basis of population solely. The percentage would be 0.927% for the years 1995-2000. Out of the total income obtained from certain central taxes and duties, 29% should go to the states. This is known as the 'Alternative Scheme of Devolution' and came into effect retrospectively from April 1, 1996. The proceeds from the ‘penalties’ and ‘interest recovered’ under the miscellaneous receipts should be included in to the divisible income tax pool as recommended by Ninth Commission with effect from 1 April 1995. The share of the net proceeds would be 77.5% for five years. The commission dropped the collection factor as the criterion for distribution The distribution of the net proceeds among states would be as follows: 20% on the basis of population of 1971  60% on basis of distance of per capita income  5% on basis of area adjusted  5% on basis of infrastructure index  10% on basis of tax effor

Eleventh Finance Commission The Eleventh Finance Commission of India was appointed by the President on July 3, 1998 for the period 2000-2005

Members     

Prof. A.M. Khusro, Chair Shri N.C Jain Shri J.C Jetly, IAS (retired) Dr. Amaresh Bagchi Shri T.N. Srivastava, IAS, Member Secretary

Terms of Reference The Commission was asked to make recommendations to the President with regard to the following:-

1. With regard to Chapter I of Part XII of the Constitution, the distribution between the Centre and the States of the net proceeds of taxes and the allocation between the States of the shares of these proceeds 2. The principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and with regard to Article 275 of the Constitution - the sums to be paid to the States which are in need of assistance by way of grants-in-aid of their revenues for purposes other than those specified in the provisos to clause (1) of that article; 3. With regard to the recommendations made by the Finance Commission of the State; the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State 4. Suggestions for a restructuring of the public finances so as to restore budgetary balance and maintain macro-economic stability.

Recommendations With regard to the terms of reference the following were the recommendations made by the Commission: 1. The total share of the States in the net proceeds of central taxes and duties would be 29.5% for the next five years 2. With regard to the revenue deficit grants to States, a lumpsum amount of Rs. 11,000 crore in the Central Budget 2000-2001. 3. Grants 1. For the five years commencing from April 1, 2000, Rs.4,972.63 crore be given for upgrading of standards of administration and specific grants to certain States for special problems. 2. For the five years commencing from April 1, 2000, Rs.10,000 crore for local bodies, to be directed for maintenance of civic services, Rs.1600 crore per annum is for rural local bodies and Rs.400 crore per annum is for urban local bodies. 4. With reference to the Grants-in-Aid under Article 275 (1) of the Constitution, which amounts to a total of Rs. 35359 crore for the period 2000-2005 to be provided to such States (15 States) which will have deficit non-plan revenue account even after the devolution of central tax revenues, equal to the amount of deficits assessed during the period 2000-2005. 5. With regard to the Calamity Relief Funds in States with an aggregate size of Rs. 11007.59 crore during 2000-2005. 6. The tax devolution from the Centre to the State should not exceed 37.5% of total Centre’s revenues this should be inclusive of the Central taxes/duties to States and grants-in-aid to States. The Commission recommended that each State be given a share as specified the net proceeds of all shareable union taxes and duties except the expenditure tax and service tax. Data for percentage share for certain states is Bihar-14.597, Maharashtra-4.632, Kerala-3.057, Uttar Pradesh-19.798, Punjab-1.147

Twelfth Finance Commission The Twelfth Finance Commission of India was appointed on 1 November 2002 to make recommendations on the distribution of net proceeds of sharable taxes between union and states. The commission was headed by veteran economist of India, C. Rangarajan. The commission submitted its report on 30 November 2004 and covered the period from 2005-10

Members The members of the Commission were:[1]     

Dr. C. Rangarajan, Chair Shri T.R Prasad, IAS (retired) Prof. D.K Srivastava Shri Som Pal, Part time Member, resigned 14 May 2004 Dr. Shankar N. Acharya, Part time Member, replacing Som Pal from 2 July 2004

Terms of The commission was asked to make recommendations on the following matters: 1. The distribution of net proceed of taxes between union and states which are to be divided under chapter 1 part 12 of the constitution. 2. The policies required to increase the consolidated fund of states on the basis of recommendation made by the finance commission of states to supplement the resources of municipalities and panchayats in the state. In making the recommendation, the commission was asked to pay regard to 1. The resources of the union government and state government for five years starting from 1 April 2005 on the basis of the total tax and non-tax that it will likely to receive by the end of 2003-04. 2. The demand of the resources by the central government,in particular the need of expenditure on civil administration,internal security, defence, debt servicing and other committed expenditure and liabilities.

Major recommendations 









Macro-economic stability - The total fiscal deficit for Centre & states to be reduced to 3% of GDP and the total tax-GDP ratio of both centre& states to be increased to 17.6% of GDP in 2009-10. The revenue deficit for the centre& states combined to be reduced to 0% by 2008.... Distribution of Union Tax - The total share of states in the total sharable central taxes to be fixed at 30.5% and the share of states will come down to 29.5% if the states levy sales tax on sugar, textiles and tobacco. Grants to local bodies - The total grant that will have to be given to the states for panchayati raj institutions and local urban bodies for the period of 2005-09 will be Rs 20000 crores and Rs 5000 crores respectively. Calamity Relief Fund - The calamity relief fund scheme will continue as it was in the previous plans with central & states contributing in the ratio of 75: 25. The size of fund will be Rs 21333 crore for the period of 2005-10. Grant in aids to the states - For the period of 2005-10, the total non-plan revenue deficit grant of Rs 56856 crores is recommended to 15 states and the total grant of Rs 10172 is recommended for 8 educationally backward states. A grant of Rs 15000 crores is recommended for building roads and bridges which is in addition to the normal expenditure of the states while the grants that are recommended to the states for maintenance of public buildings, forests, heritage conservation and specific needs of states are Rs 500 crore, Rs 100 crore, Rs 625 crore and Rs 7100 crore.

Thirteenth Finance Commission The Thirteenth Finance Commission of India was constituted by the President of India under the chairmanship of Vijay L. Kelkar on 13 November 2007

Members Members of the Commission were:[2]      

Dr. Vijay L. Kelkar, Chairman Shri B.K. Chaturvedi, Part-time Dr. Indira Rajaraman Prof. Atul Sarma Dr. Sanjiv Misra Shri Sumit Bose, Secretary

Recommendations The major recommendations of the Commission were: 1. The share of states in the net proceeds of the shareable Central taxes should be 32%. This is 1.5 percentage-points higher than the recommendation of the 12th Commission. 2. Revenue deficit to be progressively reduced and eliminated, followed by revenue surplus by 2013–2014. 3. Fiscal deficit to be reduced to 3% of the gross domestic product (GDP) by 2014–2015. 4. A target of 68% of GDP for the combined debt of centre and states. 5. The Medium Term Fiscal Plan (MTFP) should be reformed and made the statement of commitment rather than a statement of intent. 6. Fiscal Responsibility and Budget Management Act, 2003 need to be amended to mention the nature of shocks which shall require targets relaxation. 7. Both centre and states should conclude 'Grand Bargain' to implement the model Goods and Services Act (GST). To incentivise the states, the commission recommended a sanction of the grant of Rs500 billion. 8. Initiatives to reduce the number of Central Sponsored Schemes (CSS) and to restore the predominance of formula-based plan grants. 9. States need to address the problem of losses in the power sector in time bound manner.

Fourteenth Finance Commission The Fourteenth Finance Commission of India was a finance commission constituted on 2 January 2013. The commission's chairman was former Reserve Bank of India governor Y. V. Reddy and its members were Sushma Nath, M. Govinda Rao, Abhijit Sen, Sudipto Mundle, and AN Jha. The recommendations of the commission entered force on April 2015; they take effect for a five-year period from that date

Review of the previous term

Fiscal Performance

200 405

200 708

200 809

200 910

201 011

201 112

201 2201 3

Chan ge 201213 over 200708

I

Total Revenu 8.5 e 5 Receipts (a+b)

9.4 4

10. 87

9.6 0

8.8 4

10. 13

8.3 4

8.6 9

-2.17

9.06

9.24

a)

Non Tax Revenu e

2.8 8

2.5 0

2.0 5

1.7 2

1.7 9

2.8 1

1.3 5

1.3 6

-0.69

1.70

1.65

b)

Net Tax Revenu e

5.6 7

6.9 3

8.8 1

7.8 7

7.0 5

7.3 2

6.9 9

7.3 4

-1.48

7.36

7.59

II

Revenu e 12. Expendit 80 ure

11. 85

11. 92

14. 10

14. 08

13. 37

12. 72

12. 30

0.38

12.33

12.18

3.9 2

3.4 3

3.4 1

3.2 9

3.0 1

3.0 3

3.1 0

0.3 3

3.35

3.32

III

Capital 2.5 Expendit 8 ure

3.5 0

2.3 7

1.6 0

1.7 4

2.0 1

1.7 6

1.6 5

-0.72

1.68

1.76

IV

15. Total 38 Expendit

15. 35

14. 29

15. 70

15. 82

15. 38

14. 48

13. 95

-0.34

14.01

13.94

Sr.N um

Particul ars as percent age of GDP

Of which : 4.56 Intere st

200 102

20132014( RE)

20142015( BE)

ure (II+III)

V

Revenu e Deficit (II-I)

4.3

2.5

1.1

4.5

5.2

3.2

4.4

3.6

2.5

3.3

2.9

VI

Fiscal Deficit

6.1

4.0

2.5

6.0

6.5

4.8

5.7

4.8

2.3

4.6

4.1

VII

Nondebt 0.8 Capital 5 Receipts

2.0 5

0.8 8

0.1 2

0.5 1

0.4 5

0.4 1

0.4 0

-0.48

0.32

0.57

Union  



 

Union debt had remained with in the limits set by the previous commission. This is primarily because of a high nominal growth in GDP. Gross tax revenues, after reaching a peak of 11.9 per cent of GDP in 2007-08, had declined by over 1.7 percentage points in 2012-13. Rates of excise duties and service tax were reduced in response to the global economic crisis. The tax-GDP ratio had declined.  Interest receipts on loans outstanding from State Governments had declined.  There was fluctuation in non-debt capital receipts.  Disinvestment receipts fell short of the estimates. States were excluded from much of the divisible pool because of forgone revenues, tax expenditures, and expanding cess and surcharge rates. Quality of fiscal management was characterized by a less than desirable growth in revenues, a steep reduction in capital expenditures and high level of subsidies.

States 



There was improvement in the fiscal position of all States taken together. Aggregate gross fiscal deficit and revenue deficit, relative to GDP, declined by 1.4 percentage points each. The primary deficit, relative to GDP, declined by 0.2 percentage points. The fiscal health was possible due to an increase in the aggregate revenue receipts

by 1.2 percentage point relative to GDP.



  States' own tax receipts, relative to GDP, had increased by 0.9 percentage point.  Tax devolution to the states from Union had increased by 0.5 percentage point.  Grants in aid from the central schemes had increased by 0.2 percentage point.  Own non-tax revenues had decreased by 0.2 percentage point. Capital expenditures fell marginally relative to GDP and there was only a marginal change in overall expenditures relative to GDP.





Interest payments had reduced by 1.2 percentage points and so the revenue expenditure decreased by the 1.2 percentage points.  Pension increased the expenditure by 0.2 percentage points  Social services increased the expenditure by 0.9 percentage point.  Economic services increased the expenditure by 0.1 percentage point. The aggregate outstanding debt and liabilities, as a percentage of GDP, also progressively

reduced

Recommendations

Sharing of Union tax revenues with states Transfers from Union to states consist of tax devolution, non-Plan grants, Plan grants and grants for various Cental Supported Schems (CSS) including those which were transferred directly to the implementing agencies bypassing the budget. Inputs to the commission View

Stakeholder The Commission

Keep the current devolution ratios

Union

Rejected

Increase in the share of tax devolution

States

Accepted

Expansion of the divisible pool with cess and surcharges

States

Rejected

Minimum guaranteed tax devolution

States

Rejected

Reduced role of Centrally sponsored schemes (CSS)

States

Accepted

Keep 50% of proceeds from a state in devolution

States

Rejected

Earmark 10%-30% of devolution for special category status States

Rejected

Include demographic change in criteria

States

Accepted

Equality adjusted Human Development Index as criteria

States

Rejected

Vertical devolution The commission recommends to increase the tax devolution of the divisible pool to states to 42% for years 2015 to 2020. This is 10% more compared to 32% target set by 13th financial commission. The commission recommended that the new tax devolution should be the primary route of transfer of resources to States since it is formula based and thus conducive to sound fiscal federalism. However, to the extent that formula-based transfers do not meet the needs of specific States, they need to be supplemented by grants-in-aid. The commission felt that new target serve the twin objectives of increasing the flow of unconditional transfers to the States and yet leave appropriate fiscal space for the Union to carry out other duties and specific purpose transfers to the States. Horizontal devolution The commission came up with new formula to divide the 42% share of the divisible pool between the states. Area The commission followed the method adopted by the 12th commission and put the floor limit at 2 percent for smaller States and assigned 15 percent weight. Forest cover The commission assigned 7.5 per cent weight to forest cover as the new criteria to balance the benefit of the huge ecological benefits and the opportunity cost in terms of area not available for other economic activities that becomes indicator of fiscal disability. Population The commission felt that allocation based on dated population data is not fair, and assigned a 17.5 percent weight to the 1971 population and assigned 10 percent a weight to the 2011 population to capture the demographic changes since 1971, both in terms of migration and age structure. Income distance The commission assigned 50% weight to income distance as it is the only measure of fiscal capacity. It is the distance of actual per capita income of a state from the state with the highest per capita. The commission calculated the income distance following the method used the 12th commission. A three-year average (2010-11 to 2012-13) per capita comparable GSDP has been taken for all the twenty-nine states. Income distance has been computed by taking the distance from the state having highest per capita GSDP. Goa had the highest, followed by Sikkim. Since these two are very small states, income distance had been computed from the third, Haryana. Goa, Sikkim and Haryana are assigned the same distance as obtained for Haryana. Criteria

13th Commission Weight(%) 14th Commission Weight (%)

Population 1971

25

17.5

Population 2011

0

10

Income Distance 47.5

50

Fiscal Discipline

15

0

Area

10

15

Forest Cover

0

7.5

Sum

100

100

Horizontal Share of States The commission came up with the following share of States based on the criteria and the consideration that service tax is not levied and so can not be shared with the State of Jammu & Kashmir. States

Andhra Pradesh

Share(%)

4.305

Arunachal Pradesh 1.370

Assam

3.311

Bihar

9.665

Chhattisgarh

3.080

Goa

0.378

Gujarat

3.084

Haryana

1.084

Himachal Pradesh

0.713

Jammu & Kashmir

1.854

Jharkhand

3.139

Karnataka

4.713

Kerala

2.500

Madhya Pradesh

7.548

Maharashtra

5.521

Manipur

0.617

Meghalaya

0.642

Mizoram

0.460

Nagaland

0.498

Odisha

4.642

Punjab

1.577

Rajasthan

5.495

Sikkim

0.367

Tamil Nadu

4.023

Telangana

2.437

Tripura

0.642

Uttar Pradesh

17.959

Uttarakhand

1.052

West Bengal

7.324

Sum

100.000

Local Governments The Commission had allocated grants and also identified many sources of income for local bodies and provided the guidelines to Union and State governments to empower them. Grant allocation The grants by Union government are to be used only on the basic services within the functions assigned to them by legislation, water supply, sanitation, sewerage, storm water drainage, solid waste management, street lighting, local body roads and footpaths, parks, playgrounds etc. The Commission fixed the total size of the grant to be Rs. 2,87,436 crore for the period 2015-20, constituting an assistance of Rs. 488 per capita per annum at an aggregate level. Of this, the grant for panchayats is Rs. 2,00,292.2 crore and for municipalities is Rs. 87,143.8 crore. Local Body

Amount(crores)

Panchayats

2,00,292.2

Municipalities 87,143.8

Sum

2,87,436

Grant devolution The Commission recommended that distribution of grants shall be given to the States using 2011 population data with weight of 90 percent and area with weight of 10 per cent. The grant to each State will be divided into two - a grant to duly constituted gram panchayats and a grant to duly constituted municipalities, on the basis of urban and rural population of that State using the data of Census 2011. Criteria

13th Commission Weight(%) 14th Commission Weight (%)

Population in 2011

90

Area

10

Timetable Each grant has two components, basic and performance. The commission recommends that 50 per cent of the basic grant for the year is to be released to the State as the first installment of the year. The remaining basic grant and the full performance grant for the year may be released as the second instalment for the year. The State Government have to release the grants to the local bodies within fifteen days of it being credited to their account by the Union Government. In case of any delay, the State Governments have to pay the installment with interest paid from its own funds. Gram Panchayats In the case of gram panchayats, 90 per cent of the grant will be the basic grant and 10 per cent will be the performance grant. The grants for Panchayats should go only to them without any share for other levels of government in State. State Governments has to take care of the needs of the other levels and districts. Grants for gram panchayats with in a State will be distributed using the formula chosen by a state finance commission. In case the SFC formula is not available, then the share of each gram panchayat will be on the basis on 2011 population with a weight of 90 per cent and area with a weight of 10 per cent. Municipalities In the case of municipalities, the division between basic and performance grant will be on a 80:20 basis. The basic grant for urban local bodies will be divided into tier-wise shares and distributed across each tier, the municipal corporations, municipalities (the tier II urban local bodies) and the nagar panchayats (the tier III local bodies) using the formula given by a state finance commission. In case the SFC formula is not available for urban local bodies, shares of each of the three tiers will be on the basis of population of 2011 with a weight of 90 percent and area with a weight of 10 percent, and then distributed among the entities in each tier in proportion using same formula. local body are tender process are not transperent local body are tenderRule hard so some near people come in tender and Performance Grants The performance grants will be given from the second year or 2016 onwards. To be eligible for performance grants, 

 

The local bodies and State government have to submit audited annual accounts that relate to a year not earlier than two years preceding the year in which the body seeks the performance grant. They have to show an increase in the own revenues of the local body over the preceding year. In case of urban local bodies, they have to measure and publish service level benchmarks for basic services.

The undisbursed amount should be distributed on an equitable basis among all the eligible local bodies for the performance grant in the State. Empowering local bodies State governments has to ensure that local bodies get revenue from all local sources.

      

Have to review existing rules to facilitate the levy of property tax and reassess properties by local bodies. Have to strengthen SFC with timely constitution and administrative support. Have to allow panchayats to levy of vacant land tax and land conversion charges. Have to take steps to empower local bodies to impose advertisement tax. Review entertainment tax and allow share to local urban bodies. Share royalties from mining where the mine is located. Allow local bodies to explore issuing the municipal bonds.

Fiscal Plan Devolution to special States  



1.94 lakh Crores is to be used as the post devolution revenue deficit grant for the 11 states with gaping Revenue Deficits.  Fiscal Deficit is to be reduced to 3% of GDP, Revenue Deficit to be 0% by 2017.  Medium term fiscal plan(MTFP) is to be the statement of commitment instead of the statement of intent.  A target of 62% of GDP is to be set for the combined debt of center and states. This is improvement over the 68% set by the previous commission.  States are to be eligible for an additional borrowing limit of 0.25% of GSDP.  The current FRBM Act is to be amended to explain the nature of shocks which require relaxation from the target and to be merged with a Debt ceiling and Fiscal responsibility Act. Actions to address the less fiscal space with the center.  An independent council is to be setup to assess the fiscal policy implications.  Inter state council to be expanded for co-operative federalism to identify sector specific grants to states.  Initiatives to reduce 30 central sponsored schemes. The central government has accepted 8 of them.

Good and Services Tax (GST) The commission recommended the Union to establish GST compensation fund. This compensation is to be used to address 100% of the shortfall in the first year, 75% in the second year and 50% in the third year. This additional fiscal burden on the Union government has to be taken as investment to get yields in the medium and long run.

National Disaster Relief Fund The financing of the NDRF had been from levying cess on some selected items and some of them will be subsumed by GST. The commission recommended the Union Government to ensure an assured source of funding. The commission recommended to consider tax exemption to private contributions to the NDRF. The commission recommended to review the reimbursement of expenditure incurred by the defense forces to not hinder their efficiency during disaster relief. The commission recommended the Union Government to expedite the development and scientific validation of the Hazard Vulnerability Risk Profiles of States. The commission recommended to keep an aggregate corpus for all States of Rs. 61,219 crore for the five years based on the expenditure from the past years. The commission recommended all States to contribute 10 per cent and Union with the remaining 90 per cent. Considering the need for regard to state-specific disasters, the commission recommended that up to 10 per cent of the funds available under the SDRF can be used by States for natural disasters that they consider to be 'disasters' within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs.

Public Utilities Power The commission recommend3e that 100 per cent metering be achieved in a time-bound manner for all electricity consumers. The Electricity Act, 2003, currently does not have any provision of penalties for delays in the payment of subsidies by State Governments. The commission recommended that the Act be suitably amended to facilitate levy of such penalties. Electricity Act allows a State Electricity Regulatory Commission Fund by State Governments, to enable the SERCs to perform their responsibilities. The commsion recommended all States to setup SERC Fund, as statutorily provided. Transport The commission recommended Rail Tariff Authority (RTA) to do expeditious replacement of the advisory body with a statutory body with needed amendments to the Railways Act, 1989. The commission recommended accounting systems in the SRTUs to make explicit all forms of subsidy, the basis for determining the extent of subsidies, and also the extent of reimbursement by State Governments. The commission recommended to setup independent regulators for the passenger road sector to help in tariff setting, regulation of service quality, and the collection and dissemination of sector information. SASAS Water Supply The commission recommended all States to setup Water regulation authority(WRA) to set up pricing of water for domestic, irrigation and other uses. It recommended all States to invest in volumetric measurement of the use of irrigation water. It also recommended the States and local bodies to progressively move towards 100 per cent metering of water and to complete metering by 2017 with the cost to be borne by the consumers. The commission recommended to give new connections in urban bodies only when the functioning meters are setup.

Public Sector Companies The commission recommended that a Financial Sector Public Enterprises Committee be appointed to examine and recommend parameters for appropriate future fiscal support to financial sector public enterprises, recognizing the regulatory needs and the multiplicity of units in each activity. The commission recommended to categorize public sector companies as high, low and non priority to decide current policy and future course of action. The commission recommended to wind up the National Investment Fund and to keep all the receipts from disinvestment to be kept with the Consolidated Fund of India.

Fifteenth Finance Commission The Fifteenth Finance Commission of India (XV-FC) is an Indian Finance Commission constituted in November 2017 and is to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 April 2020. The commission's chairman is N. K. Singh, with its full-time members being Shaktikanta Das, Ashok Lahiri and Anoop Singh. In addition, the commission also has a part-time member in Ramesh Chand.

Constitution The Fifteenth Finance Commission was constituted by the Government of India—after getting ceremonial approval from President of India—through a notification in The Gazette of India on 27 November 2017.[1][2] Nand Kishore Singh, a senior member of the Bharatiya Janata Party was appointed as the commission's chairman, with its full-time members being Shaktikanta Das and Anoop Singh and its part-time members being Ramesh Chand and Ashok Lahiri. The commission held its first meeting on 4 December 2017. Lahiri was elevated to the status of a full-time member in May 2018 and was accorded the status of a minister of state

Members Profile of members of the Fifteenth Finance Commission hide

S. no .

1

Name

Nand Kishore Singh

Portrait

Designatio n

Chairman

Background in finance

Retired Indian Administrative Service (IAS) officer. Served as Union Revenue Secretary, Union Economic Affairs Secretary and Union Expenditure Secretary. Also served as a member of the erstwhile Planning Commission. Postretirement, served a member of the parliament in the Rajya Sabha (Council of States) for the state of Bihar. He has been a senior member of the Bharatiya Janata Party since March 2014.[12]

Profile of members of the Fifteenth Finance Commission hide

S. no .

—

2

3

Name

Portrait

Designatio n

Background in finance

Shaktikanta Das[a]

Retired IAS officer. Served as Union Economic Affairs Secretary, and as Union Revenue Secretary.[14][15] Also served as Special Commissioner (Revenue) and Secretary (Revenue) in the state of Tamil Nadu.[16]

Prof. (Dr.) Anoop Singh

An adjunct professor at Georgeto wn University, Washingto n, D.C. Also served as the International Monetary Fund's director of its Regional Office of Asia and the Pacific.

Dr. Ashok Lahiri[b]

Member

Former Chief Economic Adviser to the Government of India, director of the National Institute of Public Finance and Policy, executive director at the Asian Development Bank and the chairperson of Bandhan Bank.

Profile of members of the Fifteenth Finance Commission hide

S. no .

4

Name

Designatio n

Portrait

Prof. (Dr.) Rames h Chand

Member (part-time)

Background in finance

A member of the NITI Aayog, a fellow of National Academy of Agricultural Sciences and Indian Society of Agricultural Economics. Also served as the director of the National Institute of Agricultural Economics and Policy Research.

Notes 1. ^ Das acted as the chairman of the commission in absence of Singh. 2. ^ Lahiri served as a part-time of the commission from November 2017 to May 2018, before being elevated to the status of a full-time member.

Aim[edit] The commission was set up to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 April 2020.The main tasks of the commission were to "strengthen cooperative federalism, improve the quality of public spending and help protect fiscal stability". Some newspapers like The Hindu and The Economic Times noted that commission's job was made harder because of the roll-out of goods and service tax (GST) regime in India, as, it had taken certain powers concerning taxation away from the union and the states, and, had given them to the newly formed GST Council. The peer-reviewed journal, Economic and Political Weekly, further noted that even after the passage of the Fiscal Responsibility and Budget Management Act, 2003, some states still incur revenue deficits, so, the commission would have to either recommend the disbandment of revenue deficit grants, or, would have to recommend ways for further fiscal consolidation. The commission's chairman, N. K. Singh, said that the commission would need to define populism, as, the commission's terms of reference (ToR) had a provision for rewarding states which were successful in eliminating or reducing expenditure incurred on populist schemes.Singh added that the commission would need to reappraise the formula of devolution of revenue through the union's taxes, because of a provision in its ToR. Singh further said, in a lecture to Indian Institute of Management Ahmedabadstudents, that one of the commission's challenges was to find a balance between equity and efficiency, adding that urban and rural local bodies—the constitutionally-mandated third-tier of government in India—needed to be further empowered to stimulate added economic growth.

Former Chief Economic Adviser to the Government of India, Arvind Subramanian, said that the commission may need to function like the first finance commission because of an increased decentralisation and change in India; further suggesting to divide the tax devolution system into four pots – "return", "redistribution", "risk sharing" and "reward", while also saying that tax devolution was no more a north–south issue. However, Subramanian's ideas were opposed by Pinaki Chakraborty, a professor at the National Institute of Public Finance and Policy, and a member of the Fifteenth Finance Commission's advisory council, who said that having a division of tax devolution into four pots would violate "the objective of offsetting revenue disabilities

Demands At its first interaction with members of parliament (MPs), the commission was asked by some MPs to recommend a plan on compensating states which suffered revenue losses after the rollout of GST. Some parliamentarians also asked the commission to reassess the criteria of classifying a state as 'backwards'. The president of Nationalist Congress Party, Sharad Pawar, suggested the commission to create a financial buffer against oil prices.[40] Whereas, the chief minister of Bihar and Janata Dal (United) president and convener, Nitish Kumar—in a letter to the commission's chairman, N. K. Singh—asked the commission to revisit the criterion of the target of a maximum 3% fiscal deficit under the Fiscal Responsibility and Budget Management Act, 2003, calling it "iniquitous". Singh added, that the state was still waiting for special financial allocations promised to it under the Bihar Reorganisation Act, 2000. The commission, on its visit to the state, was asked by the Government of West Bengal to look into restructuring the state's debt, so that it doesn't become "a permanent drag on the economy of Bengal"; the state's chief minister and All India Trinamool Congress chairperson, convener and president, Mamata Banerjee, said in a press conference, that "we expect that Finance Commission will consider our demand for debt restructuring or waiver…". West Bengal government further suggested an alternative devolution formula based on factors like social backwardness, locational complexities and continuation of revenue deficits to the commission. The commission was asked by several state governments to increase states' share in union's tax devolution from the existing 42 per cent to 50 per cent. Whereas, the Government of India asked the commission to review a 10 per cent hike from 32 per cent to 42 per cent in tax devolution given to states by the Fourteenth Finance Commission, with Union Minister of Finance, Arun Jaitley, saying that "India is a Union of states, the Union also has to survive"

Working

A meeting of the Fifteenth Finance Commission, attended by its chairperson, members, secretary and other staffers

The commission visited several states, and held meetings with senior political and non-political state government officials of different states; most states also generally submitted a memorandum to the commission outlining their needs and demands to the panel. It also met with representatives of the industry whilst visiting states and union territories. Das acted as chairman of the commission in state visits without Singh. The commission further met with the

representatives of various federal government agencies, including the vice-chairman and chief executive officer of its quasi-autonomous policy think-tank, the NITI Aayog, Rajiv Kumar and Amitabh Kant respectively. The commission was headquartered in New Delhi at the Jawahar Vyapar Bhawan on Tolstoy Marg and its offices were provided security cover by the Central Industrial Security Force

Advisory bodies Advisory council The commission constituted an advisory council "to advise it on matters related to its terms of reference". The council consisted of president of Forum for Strategic Initiatives and former Chief Economic Adviser to the Government of India, Arvind Virmani; Oxus Research and Investments chairman and a part-time member of the Prime Minister's Economic Advisory Council, Surjit Bhattal; a former deputy director in the IMF, Sanjeev Gupta; a professor at the National Institute of Public Finance and Policy, Pinaki Chakraborty; JP Morganchief India economist, Sajjid Chinoy; and a managing director and India economist and strategist at Credit Suisse, Neelkanth Mishra

THE 74th CONSTITUTIONAL AMENDMENT ACT, FINANCE COMMISSIONS AND URBAN FINANCES IN ANDHRA PRADESH This chapter covers the provisions of 74th Constitutional Amendment Act, 1992, functions of finances of urban government. State finance commission and its role, recommendations of the Twelfth Finance Commission for restructuring public finances and reforms suggested by Thirteenth Finance Commission for urban local bodies. Recommendations of various committees on methods of improving local finances have been discussed in this chapter. It also presents the municipal government sources of revenue, recommendations of the State Finance Commissions in Andhra Pradesh have also been discussed in this chapter. The 74th Constitution Amendment Act, 1992 of Indian Constitution in India aims at a decentralised regime through the mechanism of devolution of functions, finances and functionaries to urban local bodies. Originally, the Constitution of India envisaged a two-tier system of federation. Until 1992, local governments had not been a Constitutional component of the Indian planning and development strategy. It took nearly four decades to accord a constitutional status to Local Self-Governments and, thereby create a three-tier system of federation. With the Constitution (73rd Amendment) Act, 1992 and the Constitution (74th Amendment) Act, 1992, local bodies became the third stratum of government. Enormous responsibilities have been identified for urban local bodies in the 74th Constitution Amendment. These include: i) preparation of plans for economic developments and social justice, and ii) implementation of such plans and schemes as may be entrusted to them, including those in relation to the matters listed in the Twelfth schedule to the Constitution (Article 243W). Besides the 18 items of responsibilities envisaged as legitimate functions of Urban Local Bodies in the Constitution of India. The Legislature of a State, by law, can assign any tasks relating to the preparation and implementation of plans for economic development and social justice (The Constitution Seventy-Fourth Amendment Act, 1992, Article-243W,

While the 74th Amendment listed responsibilities of Urban Local Bodies, which involve expenditure it did not specify the legitimate sources of revenue for these authorities. It simply stated that the Legislature of a State may, by law, i) authorize a municipality to levy, collect and appropriate such taxes, duties, tolls and fees, ii) assign to a municipality such taxes, duties, tolls and fees levied and collected by the State Government, iii) provide for making such grants-in-aid to the municipality from the consolidated fund of the state and iv) provide for the constitution of such funds for crediting all cash received. Thus, while the municipalities have been assigned the responsibility of preparation of plans for a wide range of matters–from economic development to promotion of cultural, educational and aesthetic aspects, the power to raise resources by identifying taxes and rates to implement the plans are vested to be solely with the state legislature. This has created, what is referred to in public finance literature as vertical imbalances, i.e., constitutionally built in mismatches in the division of expenditure liabilities and revenue raising powers of the Union, States and Local Bodies. To address this problem, two significant provisions were introduced in to the Constitution of India. They are: i) the formation of State Finance Commissions (SFCs) to recommend devolution of State resources to local bodies and ii) enabling the Central Finance Commission (CFC) to recommend grants-in-aid for local bodies through augmenting the State consolidated funds. Article 243Y (The 73rd Constitutional Amendment), makes it mandatory on the part of the State Governments to constitute State Finance Commissions once in every five years to review the financial position of the Panchayats and the Municipalities. As far as the urban local bodies are concerned, it is mandatory for the State Finance Commissions to review and recommend the principles of devolution of resources from the State Government to their local bodies and suggest “measures” needed to improve their financial position. The 73rd Amendment Act stipulates that the State Governor shall cause every recommendation made by the State Finance Commission, together with an explanatory memorandum as to the action taken thereon, to be laid before the Legislature of the State. The Constitutional Amendment Acts provide for a safeguard regarding the implementation of the recommendations of State Finance Commissions. Article 280 of the Constitution under which a Central Finance Commission is appointed once every five years to assess the financial needs of the State Governments and to recommend a package of financial transfers from the Centre to States is amended. It is now mandatory on the part of the Central Finance 36 Commission to recommend “the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commissions of the State”. This provision is designed to establish a proper linkage between the finances of the local bodies, State Governments and Central Government (Mohanty. P.K, Misra, B.M. Rajan Goyal, Jeromi P.D., 2007: 17-19). As already mentioned until 1992 local governments were not part of the Indian federal structure. A change in the federal system of India came with the Constitution Amendment Acts of 1992 which conferred the constitutional status to local governments. These amendments took Indian democracy one step forward and added a new dimension to the federal system of government. Through this amendment the establishment of a local representative government empowered with administrative and financial abilities to deliver mandated services to its citizens came into force. It transferred responsibilities for services to elected urban local bodies and gave them the power to raise their own revenues and authority to make investment decisions. (Rondinelli & Cheema, 2002).

Functions and Finance: The 74th Constitutional Amendment Act has specified eighteen functions which may be considered as the responsibilities of the urban local bodies. In addition state governments may assign them any tasks relating to the preparation and implementation of plans for economic development and social justice. As a result, urban local bodies are in need of substantial funds to execute their constitutionally assigned functions. The legislature of a state may, by law, authorize an urban local body to levy and collect taxes, duties, tolls and fees. Central and state governments may also provide grants-in-aid to their urban local bodies. Thus there are two main sources of revenue for urban local bodies, internal and external. Internal source revenue is

commonly known as own source and it includes income generated from various taxes and non-taxes levied on the citizen. External source revenue mainly includes funds obtained from the central and state governments in the form of grants or loans. There may be other external sources of funds, for example, loans from domestic institutions or financial intermediaries. Some urban local bodies have also chosen to raise money from capital markets by issuing bonds (Aijaz, 2006:1-9). The 74th Constitutional Amendment Act has provided new opportunities for urban governance reforms in the country. The municipal bodies have for the first time been provided the constitutional status of the third tier of government. They have been vested with increased responsibilities as a result of the devolution of 18 functions through the 12th schedule to the Constitution.

Functions of Municipal Bodies: 1. Urban Planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker section of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation.

12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds, cremations, cremation grounds and electric crematoriums. 15. Cattle pounds, prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences.

18. Regulation of slaughter houses and tanneries (Ramakrishna Nallathiga, 2008:13)

State Finance Commission Transfers: Status of the Recommendations of the State Finance Commissions: First State Finance Commission: The State Finance Commissions are entrusted with the task of recommending devolution of funds from the State government to the local bodies – rural and urban. The commissions take into account the financial position of the state and also the local bodies, while recommending transfers from state to local bodies. The guiding factor to the commissions for making the transfers is the terms of reference given to them at the time of appointment of the Commission by the Governor (Art 243 (I) of the Constitution of India). So far two Commissions have submitted their reports. In Andhra Pradesh, during the post 74th Amendment Act phase three State Finance Commissions were appointed and they recommended measures to devolve funds to the Municipalities and Municipal Corporations. But the state government has not paid any attention to implement the recommendations of the commissions. The Third State Finance Commission submitted its report in 2008, but until now the State Government of Andhra Pradesh not taken any action.

Recommendations of the First State Finance Commission Acceptance, Implementation – A Review: All the recommendations made by the National Finance Commissions were generally accepted by the Government of India. There was also no watering down of the recommendations made by the finance commissions. When the First State Finance Commissions were constituted, it was expected that the State Governments would follow the same tradition. But it proved to be a hope unfulfilled. In the words of Sri Jag Mohan, the former Minister for Urban Development, Government of India “The recommendations Made by the State Finance Commissions have not been implemented by most of the states” (Report of the Second State Finance Commission, 2002:82).

In the case of the First State Finance Commission of Andhra Pradesh, out of 84 recommendations made, 24 recommendations were not accepted, 5 recommendations were accepted with modifications. Thus 34.5 percent of the recommendations were either not accepted or accepted partially. Even some of the recommendations not involving financial commitment to the State Government were also not accepted. In several cases, the reasons for non acceptance of the recommendations were not stated by the Government (Report of the Second State Finance Commission, 2008:82).

It is observed from the above table that not all the recommendations of the State Finance Commission were accepted by the state government unlike at the Central level where they are approved in toto. The recommendations of the first State Finance Commission were for three years from 1997-98 to 1999 to 1999-2000. After accepting the devolutions to some extent, the government made provisions in the state 54 budget for the year 1998-99 and 1999-2000 only. However, as against grants for three years, grants for only two years were released. The grant due for the year 1997-98 has not been budgeted for release to the local bodies. Important accepted recommendations of First State Finance Commission were: (a) increasing per capita

grants; (b) setting up grant - in – aid for the Rural Water Supply (RWS) schemes; and (c) pensionery grants to the municipalities etc. These above transfers are in addition to the teaching grants allocated to local bodies (Gopinath Reddy. M, and Sreedevi. N, 2004: 835). The status of the „accepted recommendations‟ of the First State Finance Commission, other than the above mentioned, is given below. Keeping the cost of all duties and services, a total amount of Rs.979.16 crores per annum was recommended by the First State Finance Commission, as additional devolutions to the Rural and Urban Bodies. But the state government accepted the devolution to the extent of Rs.434.42 crores only. Thus, the percentage of devolution accepted worked out to 44.37 per cent only. The State Finance Commission has taken the duties entrusted to the Local Bodies, the finances made available to them, the amount required to discharge the duties, into account to decide the quantum of devolution. It has also taken into consideration the core functions to be discharged by the Local Bodies like Drinking Water Supply, Public Health, Lighting Roads etc; and several discretionary functions entrusted to them (Report of the Second State Finance Commission,2008:83, Para, 3.2.1). The Cabinet Sub Committee recommended that the devolution to the Rural and Urban Bodies be in the ratio of 70:30 respectively, probably keeping in view the population of the rural areas and urban areas in the state. The amount of devolution accepted by the Government is Rs.363.95 crores for Rural Bodies and Rs.70.47 crores per annum for Urban Bodies. This does not conform to the Seventy Thirty ratio which the Cabinet Sub - Committee recommended. It is observed that while releasing the grants either for construction or for maintenance, the Seventy - Thirty sharing formula suggested by the Cabinet Sub - Committee and which was accepted by the Government has not been followed. This is pointed out to indicate that due consideration has not been given by the Government, even in implementing their own formula while allocating the funds (Report of the Second State Finance Commission, 2002:83, Para, 3.2.3). The First State Finance Commission made certain recommendations relating to financial devolutions to the Rural and Urban Bodies. Government has not accepted some of the recommendations that are given below. The State Finance Commission recommended a grant of Rs.54 crores to the Municipal Corporations as Block Grant to be used for their felt needs with a stipulation that it should not be used for salaries and maintenance. Government has not accepted the recommendation. Similarly, Government has not accepted the recommendations to allocate 95 percent of Profession Tax to Local Bodies and agreed to release only 90 percent. But subsequently, in G.O.Ms No.544 Rev. (CT- III) Department, dt: 12-7-1999, orders were issued to release 95 percent, on the representation made by the Panchayats Sarpanches Association. Grants for civic amenities etc., were sanctioned / announced by the Government in several cases subsequently, though the Government did not accept the recommendations of the Finance Commission The recommendations of the First State Finance Commission were for three years from 19971998 to 1999-2000. After accepting the devolutions as against grants for three years, grants for two years only were released. The grants due to for the year 1997-98 have not been budgeted for release to the local bodies (Report of the Second State Finance Commission, Government of Andhra Pradesh, 2002:83-85)

Recommendations Relating to Urban Bodies- Not Accepted: The following recommendations made by the First State Finance Commission were not accepted

1.Adhoc Block Grant of Rs.44.00 Crores to Municipal Corporations (Para 9.8.1 of SFC Report) – Rejected as per capita grant is being provided for taking up basic necessities. It may be stated that the total increase in per capita Grant for Municipal Corporations including those of Municipalities is only Rs. 5.89 crores per annum 2) 10 per cent of betting Tax to be given to the Hyderabad Municipal Corporation (vide para 10.10.2 of SFC Report) It is stated that it may be counter – productive and result in Tax evasion 3. Enhancement of Octroi Compensation by 10 per cent annually- (Para 10.13.0. of SFC Report ) Grant for Octroi abolition may be provided for under the grant-in –aid on the analogy of Property of Tax Compensation. 4. Increase of Motor Vehicle Tax Compensation to Municipal Bodies was accepted with medication (Para No. 10.14.4 of SFC Report). Only half per cent of the tax collected was accepted as devolution. Reasons were not given. 5. One time grant of Rs. 25.00 lakhs to Municipalities converted into Municipal Corporations (para 11.9.5 of SFC Report) –Rejected as not considered to be of priority concern. 6. Though it is not mandatory that all the recommendations made should be accepted by the Government, it may be considered to give reasons for nonacceptance. (Report of the Second State Finance Commission, 2002: 88-89).

Pension Grant to Non-Teaching Municipal Pensioners: In Paras 11.13.7 and 11.13.8 in its Report, the First State Finance Commission recommended a grant of Rs. 10 crores towards pension grant to the non-teaching municipal pensioners. The Government accepted this recommendation in principle, 57 but made a budget provision of Rs. 7.25 crores in the budget for 1998-99 as per the recommendations on the Cabinet- Sub-committee. But in the subsequent year 1999-2000 budget provision was not made. It is understood that the Department took it as one-time grant and therefore, did not include the amount in the departmental budget for 1999-2000. The Finance Commission did not recommend it as one time grant but recommended it as annual grant on the lines of the grant for non-teaching pensioners of the Panchayati Raj Bodies. However, a provision of Rs.6 crores is made in the budget for 2001-02. An extent of the recommendations of 1st State Finance Commission is given below: “Though the services of municipal employees are not provincialised, the scales of pay applicable to State Government employees are made applicable to them and the other benefits are also applicable to them. Viewed from this angle and also to avoid discrimination between the two sets of local body employees, the Commission considers from the point of view of equity and recommends that Government may release grants-in-aid to the municipalities towards payment of pension to the nonteaching municipal employees” (Report of the Second State Finance Commission, 2002:94-95). The commission recommends that the procedure suggested above in respect of Panchayati Raj Pensioners be followed for Municipal Bodies also. According to the data available, annual commitment towards the pensionary benefits the nonteaching municipal employees works out to about Rs. 10 crores (para 11.13.7 of 1st State Finance Commission Report). Grants for the years 1999-2000 and 2000-2001 were not released. As the First State Finance Commission recommended release of Grant-in-Aid in the case of Panchayat Raj Pensioners, the pension grant should be budgeted for every year and released to municipalities. The amounts not released for pension should be released coming years (Report of the Second State Finance Commission, 2002:95).

Percentage of Devolution to Local Bodies from State Revenues: A total amount of devolution recommended by the 1st State Finance Commission was 979.16 crores (i.e., 814.84 crores for panchayati raj and Rs.160.32 crores for urban bodies) per annum was recommended by First State Finance Commission. It works out to 10.93 per cent of the tax and non-tax revenue of the State. The First State Finance Commission recommended that 39.24 percentage of state‟s revenues both tax 58 and non-tax be the entitlement to the local bodies and it may be given statutory effect by suitable enactment (Report of the First State Finance Commission,1997–2000: 79 - 80). The above recommended total (39.24 per cent of the state revenue) includes both central and state grants. According to the action taken report of the State Finance Commission, the grant exclusively given by the state government to the local bodies is 11.09 per cent of the state revenue (Rs 1,087. 74 crore) in the year 1998-99. This amount is exclusive of salaries, pensions, establishment cost, allocations made as matching contribution to centrally sponsored schemes and central grants (Gopinath Reddy. M 2003: 1287).

Second State Finance Commission The Second State Finance Commission reviewed the financial position of Gram Panchayats, Mandal Parishads, Zilla Parishads, Nagar Panchayats, Municipal Councils and Municipal Corporations in the State and made 82 recommendations to the Government on issues of devolution of funds to Panchayati Raj Institutions and Urban local bodies. The Second Finance Commission also made recommendations on the aspects of functions and personnel of local bodies. The Commission submitted its report on 19th August 2002. The recommendations are for five years from 2000-01 to 2004-05 (Report of the Third State Finance commission, 2008:20, Para, 2.27). The Second State Finance Commission made 82 recommendations which included both financial and non-financial aspects. Out of which the Government accepted 46 recommendations and 14 were stated to be under consideration (Report of the Third State Finance Commission, 2008:25). The status of „accepted recommendations‟ of the Second State Finance Commission is discussed below Though the Constitution does not provide that all recommendations of the Finance Commission should be accepted by government, the Government of India has established a tradition of accepting all the recommendations of its Finance Commissions. The state government should have adopted the same practice or it would have given appropriate reasons for not accepting the recommendations. But, for the reasons not known, the state government neither accepted all recommendations nor gave the reasons for not accepting some recommendations (Sreedevi. N and Gopinath Reddy. M , 2004:12) “Government considered that instead of allocating amount for individual schemes / items the total amounts may be placed at the disposal of the Local Bodies. They may utilize the amounts for their felt needs prioritizing the schemes / items. Broadly, the items may be divided as Capital, maintenance and civic amenities. Out of the amounts released of them, they may spend an amount not less than 25 percent and not exceeding 50 per cent of the grant for maintenance. The remaining amount may be utilized for capital works and civic amenities depending upon the necessity.” (Report of the Third State Finance Commission, 2008:26).

This Commission, therefore, recommends that while accepting the recommendations relating to devolution of finances to Rural and Urban Local Bodies the Government may consider making budget provision covering all such recommendations” (Report of the Third State Finance Commission, 2008 : 29). In the Action Taken Report on the recommendations of the Second State Finance Commission, the Government has stated that, based on the review of the cabinet sub-committee the Government agreed for devolutions to the extent of Rs.200 Crores to Panchayati Raj Institutions and Rs.100 Crores for Municipalities and Municipal Corporations towards Second State Finance Commission grants and that there was provision in the budget for 2003-2004 for the above purpose. Having accepted the devolution, it does not appear proper to short release and divert the funds for other purposes. So, the Third State Finance Commission felt that “the grants to the extent of short release may be released to the Panchayati Raj Institutions and not to divert the State Finance Commission grants for other purposes” (Report of the Third State Finance Commission, Government of Andhra Pradesh, 2008:24-31). The Second State Finance Commission recommended that 40.92 percent of the tax and non-tax revenues of government including the share of Central taxes (Report of the Second State Finance Commission, 2002:198). The total amount recommended for devolution was 1793.94 Crores (Rs.1167.73 Crores for Panchayati Raj Institutions and Rs.621.61 Crores for Municipalities) and the amount accepted for devolution was Rs.300 Crores, (Rs.200 Crores for PRIs and Rs.100 Crores) to Municipalities and corporations accounting to an ignorable 17 per cent (Report of the Third State Finance Commission, 2008:25).

Third State Finance Commission The Third State Finance Commission was originally constituted in January 2003. The commission was reconstituted in December, 2004 with the new members and chairman. The reconstituted commission started functioning from 29-12-2004 and its term was up to 28-12-2007. However, its term was extended up to 31-01-2008 (Report of the Third State Finance Commission, 2008: 2) The total devolution of funds recommended by the commission by way of grants and assignments to the Rural and Urban Bodies is Rs.1763.72 crores per annum. It works out to 6.77 percent of the total tax and non-tax revenues of the State Government including the share of central taxes for the year 2004-05.

Recommendations 1. An officer is appointed three months before the constitution of the Fourth Finance Commission to make all administrative arrangements for the functioning of the Commission from the date of its constitution (para2.10). 2. The Per Capita grant of the Municipalities and Municipal Corporations may be enhanced from Rs.8/- to Rs. 12/- from the year 2005-06. The additionalcommitment of Rs. 8.32 crores as per annum in this regard may be released to urban bodies (para 5.52). 3. An amount of Rs.11.92 crores per annum may be released from excise income to urban bodies (para 6.26). 4. Orders may be issued to the Regional Transport Authorities to adjust Motor Vehicle Tax Compensation direct to the Municipal Bodies (para 6.32).

5. The Third State Finance Commission recommends to pay 5 per cent of income of the Market Committees to the local bodies instead of levying 5 per cent extra surcharge (para 7.4). 6. The Government may permit the Municipal Bodies to advertise the construction of commercial complexes and construct them by taking advance money from the lessee (para 7.19). 7. A separate Budget Head may be opened for the 13 Municipal Corporations to provide amounts towards payment to the Property Tax and Water Charges annually on Government Buildings (para 8.13). 8. Government may consider the acceptance of the proposal for the release of Rs. 17.50 crores towards increase on half yearly D.A. and revision of scales of pay to Municipal Staff (para 9.3). 9. Rs. 20 crores per annum may be released to the Municipalities towards Pension grants (para 9.8). 10. A Comprehensive drainage network may be taken up in 20 or 25 select Municipalities by entrusting the work to an expert committee (para 9.22). 11. An amount of Rs. 6.08 crores per annum may be released to the Municipalities for the maintenance of Municipal Buildings (para 10.37). 12. An amount of Rs. 200 crores per annum may be provided and released to the Municipalities for civic amenities (para 10.40). 13. The Third State Finance Commission generally recommends to implement all the recommendations of the First and Second State Finance Commissions which are not fully implemented or partially implemented (Report of the Third State Finance Commission, 2008:139-148).. However, the report made it clear that “there is no provision that all the recommendations of the Finance Commission should be accepted by government. Therefore, the State Government may accept all or some of the recommendations 63 made by the State Finance Commission and in some cases; they may partly accepted or accepted in a modified form. Even after accepting the recommendations relating to devolutions, it is possible that actual transfers by way of sanctioning grants in aid etc; may not take place for some for some reason or the other. Even in respect of non - financial recommendations of First Finance Commission, action is not taken after accepting the same” (Report of the Second State Finance Commission, 2002:97). The object of amending the constitution and making provision for constitution of State Finance Commissions is to regularize devolution of funds from the State Government to local bodies in a systematic manner. Unless the funds are transferred regularly in a systematic manner and action is taken on other recommendations, the purpose of amending constitution and constituting State Finance Commission will not be fulfilled. It is necessary that some authority watches whether the devolutions are really made every year by the State Government and whether action is taken on the recommendations and reports to the governor and the legislature on their status (Report of the Second SFC, 2002: 97). All along the history of local self-government, the inadequate and unsound financial base has impaired the working of the local bodies. It is realised that any talk of the effectiveness of the local bodies, in the absence of a strong financial base, is of no use. Accordingly, 74th Amendment Act has made it mandatory for all state governments to constitute state finance commissions to work out the proper allocation of devolution of state funds to the local bodies. There are non-tax sources of revenue also to the Corporations such as “Charges, Fees, Rents and other Contributions”. Excess water charges and Tap rate charges collected by the

Corporation come under “Charges”. The fees collected on Markets, Slaughter Houses, Encroachments, Building licences, Lay-outs Since urban finances are popular and problematic areas, extensive work has been done by a number of scholars on urban finances. Some important works were selected for review and the major findings will be discussed in the next chapter.

Fourth State Finance Commission Andhra Pradesh Andhra Pradesh government constituted the Fourth State Finance Commission under the Chairmanship of M L Kantha Rao, the Professor of Economics and Dean S K University. The notification with respect to this was released on 4 January 2015 by Governor E S L Narasimhan. The Commission will submit its report for the period of reference 2015-2020 Other members of the Commission 

Kankala Munirathna Naidu



Rokkam Sudarshana Rao

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Gudipadu Sandhya Rani



C Venkateswara Rao: Member Secretary

About State Finance Commission Article 243I of the Constitution, inserted by Constitution (Seventy-third Amendment) Act, 1992, prescribes for the appointment of a State Finance Commission by the Governor of a State. The Commission shall be constituted at the expiration of every fifth year to review the financial position of the Panchayats and to make recommendations to the Governor regarding 

The distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State;

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The determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats;

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The grants-in-aid to the Panchayats from the Consolidated Fund of the State;

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The measures needed to improve the financial position of the Panchayats;

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Any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats.

Article 243Y of the Constitution further provides that the Finance Commission constituted under Article 243 I shall make similar recommendation vis-a-vis municipalities.

PRIASOFT PRIASoft aims to keep track of all the in-flow (Receipts) and out- flow (Expenditure) of the Panchayati Raj Institutions. The Application facilitate better financial management of Panchayati Raj Institutions (PRIs) by bringing about transparency and accountability in the maintenance of accounts thereby leading to better credibility and ultimately strengthening of PRIs. It is a centralized Accounting Software intended for use by all the three levels of Panchayati Raj namely Zilla, Block and Village Panchayat. Apart from making the process of accounting simple and easy (necessarily due to lack of trained manpower at this level), it ensures a better financial management, transparency and accountability at the Panchayat level.

About PRIA Soft – Functions, inputs, outputs PRIA Soft stands for – Panchayati Raj Institutions Accounting Software 6 It a secure and role based authentication Accounting Software with Centralized database of all the in-flow (Receipts) and outflow (Expenditure) of the PRIs accounts. The Software has been developed by National Informatics Centre, Ministry of Communication and Information Technology, Govt. of India in consultation with Ministry of Panchayati Raj (MoPR) to develop a Centralized Accounting Software intended for use by all the three levels of Panchayati Raj - District Panchayat, Panchayat Union and Village Panchayat. It also facilitates the adoption of revised Eight (8) Model Accounting Formats as prescribed by Comptroller and Auditor General (C&AG). The Software, apart from making the process of accounting simple and easy is needed to ensure better financial management, transparency and accountability at the Panchayat level which has a twofold advantage: 1. Enhanced credibility of Panchayats which would induce greater devolution of funds to Panchayati Raj Institutions. 2. Enhanced ability to higher authorities to track the flow and usage of funds and accordingly decide on the subsequent releases.  PRIASoft follows the Cash-based Double-Entry system of book-keeping done in an intuitive, usefriendly manner, without unduly burdening the end-user with the knowledge of accounting. The back-end system itself would take care of the both the credits and debits for a transaction thereby substantially reducing the load on the end-user  Simplicity and User Friendliness: PRIA Soft makes accounting very simple for the Panchayat-level user by requiring the recording of only transaction vouchers (Receipt, Payment, Contra and Journal Vouchers) under various account heads and schemes as under Model Accounting System (MAS) prescribed by C & AG  PRIASoft is a web-enabled software and facilitates proactive disclosure of accounts of the Panchayats, up to voucher level in public domain for view by all stakeholders including citizens, thereby leading to the highest order of transparency in the Governance scenario.  The software is web based and is available on 24×7 basis with proper login authentication  PRIASoft has a built in system of alerts/ notifications via SMS/EMAIL on important transactions to affected users 7

 The software has been designed to support UNICODE. Entries can be made in Tamil also. The PRIA Soft Website has been translated into Tamil language to enable the functionaries easily understand and operate the Software.  Target Users:  Comptroller &Auditor General (C&AG)  State Accountant General (State AG)  District Panchayat  Panchayat Union  Village Panchayat  Citizens – Reports would be available online for public to see

Some of the features of PRIA Soft: 1. The Proposed System shall maintain the accounts of Rural Local Bodies as per the Model Accounting Format specified by Comptroller and Auditor General Of India. 2. It shall use the unique codes of Rural Government Bodies as specified in the Local Government Directory to form the basis of interoperability with other software applications used under ePanchayat 3. The system shall follow 4 tier accounting structure as proposed by Comptroller and Auditor General of India to simplify the accounting procedure with the schemes (Centre/State Government) getting mapped at the sub-head level. 4. The System shall allow collaborative management of Head of Accounts specified by CAG and respective State AG. 5. The system shall enable each state to manage its local object head (head of expenditure) setup by allowing it to define the local head of expenditure under any major/minor/sub head level. 6. The system shall allow for Central/State Government Scheme Definition to be defined 7. The system shall allow for managing the following master data  Banks  Employee / Agency / Citizen Database  Stock /Inventory 8. The system shall allow for accounting units to optionally manage their accounts in Banks (Nationalized and State Banks). These accounts should allow for one or many schemes funds being managed through the same account 9. The system shall allow for accounting units to enter the Cheque book details pertaining to Treasury / Bank / Post Office Accounts 10. The system shall allow for accounting units to specify the Initial and Revised Budget till the object head level 11. The system shall allow for accounting units to specify the Opening Balance (Cash In hand, Amount in Bank Account, Outstanding Advance if any) before starting the transactions

12. The system shall allow each accounting unit to manage various day to day transactions related to receipts and expenditure. In particular, it would allow the each accounting unit to Create / Modify / Delete / View / Freeze / UnFreeze a:  Receipt Voucher (Both Receipt and Transfer),  Payment Voucher (Both Expenditure and Transfer),  Contra Entry (Both Deposit and Withdrawal),  Journal Entry (Rectification Entry),  Monthly Bank Reconciliation,  Record the Receivables and Payables,  Record Stock Received / Issue and Sale Details 13. The system shall follow the closing account principle and close the book of accounts as per the prescribed procedure. 14. The system shall record each transaction with user id /data and time stamp for Audit trail purpose 15. The system shall bring about transparency in PRIs account and allow for reports to be available in public domain 16. The system shall generate a number of reports; few of them are listed below:  Annual Receipts & Payments Accounts  Consolidated Abstract Register  Cash Book (Daily, Monthly & Scheme Wise)  Ledger Book, Journal book  Scheme-wise Cash book  Register of Advances  Register of Receivables and Payables  Opening Balance report  Subsidiary Cash book  Scheme-wise Trial balance report  Trial Balance report  Monthly Reconciliation  Stock Register  Register of Movable Properties, Immovable Properties  Register of Demand, Collection

 Tax and Non Tax Receipts

CHAPTER – I INTRODUCTION Empowerment of Women Through Self Help Groups Mahatma Gandhi states that the position of women the society is an index of its civilization. “Train a man and you train an individual, Train a woman and you build a nation”. The SHGs (Self Help Groups) are the major resource of inspiration for women’s welfare. In an attempt to uplifting the women, the government has initiated Women Welfare Programmes through development centers, rural agencies, banks, NABARD etc. In India, most of the SHGs are lead by woman with benefits of socio-economic homogeneity smaller size, functionality, participation, voluntary operating mode and non political women. The SHGs in India operating from April 1999, have entered into various fields like dairy farms, fisheries, ration shops, handlooms, farm cultivation, rain water harvesting etc.

Special programmes have been designed for training and capacity building of women beneficiaries of the SHGs. Regular skill development training programmes are being organized for value addition to DWCRA and SHGs productions for better packaging, standardization of ingredients, pricing and to develop marketing skills among women. Women are exposed to best and relevant technologies displayed at training and technology development centers (TTDCs) in all districts.

1

The concept of SHGs moulds women as a responsible citizen of the country with social and economic status. It leads women to develop the habit of raising loans, form savings, inculcated with a sense of belongingness, habit of thrift and discipline among themselves. Groups actively take part in social welfare programmes focusing on dowry, AIDS awareness, nutrition, legal literacy, multiple roles of women and poverty alleviation programmes. The concept of self-monitoring has been introduced by the SHGs in a phased manner with the aim to make women totally own their movement and institutionalize its sustainability through networking. The women groups have taken the initiative to educate their own members with great enthusiasm. Women belonging to lowest strata of the society are getting habituated to savings and paved the way for decision making power in the family. In a developed country like India, SHGs uplift the women who are mostly invisible in the social structure by creating self- confidence and self-reliance.

Conceptualization of Empowerment Women are an integral part of every economy. All round development and harmonious growth of a nation would be possible only when women are considered as equal partners in progress with men. However, in most developing countries, women have a low socio and economic status. In such countries effective empowerment of women is essential to harness the women labour in the main stream of economic development.

2

Empowerment is the process of enabling or authorizing an individual to think, behave, take action and central work in an autonomous way. It is the process by which one can gain control over one’s destiny and the circumstances of their lives. Empowerment can be viewed as means of creating a social environment in which one can make decisions and make choices either individually or collectively for social transformation.

Women empowerment enables autonomy and control over their lives. The empowered women become agents of their own development, able to exercise choices to set their own agenda and be strong enough to challenge their subordinate position in the society. Although women constitute half of world’s population yet they are the largest group which is excluded from the benefits of social and economic development. Women constitute a strong labour force which needs to be mobilized and encouraged to make an effective contribution to the development process. In India, the work participation rate for women is less than half that of men. Despite efforts made towards economic empowerment of women, majority of the active female population continue to be confined to micro, small scale enterprises and the informal sector.

The Tenth Five-year Plan (2002-2007) adopted the strategy of women’s component plan under which not less than 30 per cent of funds/benefits were earmarked for all the women-related sector’s and women specific programmes.

3

The Eleventh Five-year Plan (2007-2012) also undertook steps to further strengthening of self-help groups and community based organizations for the empowerment of women. Special attention needs to be given to increasing employment opportunities and productive resources of women through special financial intermediaries, building women’s competitiveness and increasing economic exchanges among women entrepreneurs.

The SHGs and micro-credit organizations have a long history. In Vietnam, tontines or Hui with 10-15 members involved in financial activities in cash or kind have been in existence for generations. In Indonesia, Credit unions, Fishermen groups, village-based bank like institutions, Irrigation groups etc., have been in existence since long. In Bangladesh, the success story of Grameen Bank is well-known (Pitt and Khandekar, 1998). Other countries like Thailand, Nepal, Sri Lanka and India have also initiated Self-help groups in uplifting the socioeconomic conditions of poor, particularly women (Rekha, 2002).

In India, these self-help groups were promoted by NGOs, Banks and Co-operatives. The NABARD launched a pilot project for linking SHGs in February 1992. The Reserve Bank of India advises the commercial banks actively to participate in the linkage programme. Normally, after six months of existence of SHGs and after collecting a sufficient thrift fund, the groups approach the link banks (either commercial or co-operative) with its credit plan. The NABARD gives 100 per cent refinance to the Banks on their lending through SHGs.

4

Economic Empowerment of Women: The Concept And Approach Empowerment of women has become a subject of growing importance around the world in contemporary times. The concern is seen at different levels and circles which include government, bureaucracy, nongovernmental organizations, researchers and women’s empowerment. There has also been a shift in the demands of women from equality in 1970s to development in the 1980s to empowermentsocial, political and economic since the 1990s. Since the term empowerment came in to be used from 80s. Empowerment of women has came to be accepted as a key objective of development. Empowerment is a process of improving women’s control over resources, ideology and self. It is a process of enlarging the entitlements and choices of women.

Empowerment The dictionary meaning of the word ‘empowerment’ is to give power to make them able (person/group). The Oxford Dictionary defines empowerment as the ‘action of empowering, the state of being empowered’. The term ‘empowerment’ as the range of activities from individual

self-assertion

to

collective

resistance,

protest

and

mobilization that challenge basic power relations. Empowerment is a process aimed at changing the nature and directions of systematic forces, which marginalize women and other disadvantaged sections in a given context.

5

Economic Empowerment Economic empowerment refers to earning power, collective bargaining for economic gains, control over means of production, involvement in decision-making regarding economic aspects of development of skills in management. Economic empowerment, implies a process of redistribution of resources and power between different groups. It helps in building confidence, self- assertion and courage.

Importance of Economic Empowerment Poverty is the biggest challenge in India’s development efforts to bring about a perceptible change in the quality of life of the people. In India, a vast section of its population suffers from malnutrition, unemployment, and poor health care. This is particularly, true in the case of four main weaker sections of society namely, women, children, scheduled castes and scheduled tribes. In rural India, the high rates of illiteracy and low economic status of women underlie the need for increasing their earning by providing income-generating assets. Provision of employment opportunities to rural women is one way to improve their nutrition, health, education and social status. In most of the developing countries greater emphasis is laid on the need for development of rural women and their active involvement in the main stream of development especially economic.

Group Strategy In the context of absence of empowerment and given the vulnerability and powerlessness of women in the existing socioeconomic set up, group strategies occupy considerable relevance. The

6

formation of women’s groups would be helpful to provide visibility and create micro level power pockets through sharing of ideas, skills and interactive capacity. Slowly women would learn to articulate their needs resulting in more appropriate participatory and grass-root level plans for them. It is also possible to cut across social barriers. Many groups in recent years have started crossing the barriers of religion and caste and working together harmoniously for economic betterment.

Poverty hits women the hardest. At the household, poor women skip a meal to facilitate the other members of the household to eat the little that is available. Women are greatly subjected to economic and social discrimination. Credit is not easily available to them. It would not be wrong to say that social empowerment would have little relevance without empowering them on the economic front. World Bank studies have shown that enhancement of women’s earning would have a more profound effect on the welfare of the family as a whole. Since it increases women’s income, it results more directly in better health and nutrition

for

children.

Thus

grouping

women

for

economic

empowerment is of great importance, which has major implications on the overall empowerment of women.

National Policy for Empowerment of Women As a follow up action to the commitments made by India during the Fourth World Conference on Women held in Beijing during Sep. 1995. The Department of Women and Child Development has drafted a National Policy for the Empowerment of Women after nation-wide consultations to enhance the status of women in all walks of life on par

7

with men and actualize the constitutional guarantee of equality without discrimination on grounds of sex. In 1995 the draft policy was circulated to select women organizations for holding regional level consultations with State Governments, State Women Commissions, State Social Welfare Advisory Boards, Women’s Organizations, Academicians, experts and activists.

Empowerment of Women in Tamil Nadu State The State of Tamil Nadu, having more than ten million rural families (about 50 million individuals) has made an attempt in a similar direction and this has become one of the largest initiative in the world with four million women forming their own self-help groups. Under this initiative, the Government, the NGOs, the community based organizations and the civil society have come together to enable the poor to organize themselves into self-help groups with thrift as the entry point activity. Over 30 lakh women belonging to the weaker sections of the society have become members of these self-help groups. Majority of them developed the habit of saving, paving the way for socio-economic development. It is a paradoxical truth that nearly 40 per cent of the DWCRA groups in the country are available in-Tamil Nadu itself. During early 90s 10,000 groups have been formed and in the last five years there is tremendous increase in the DWCRA groups and 90,000 additional groups have been formed in the year 2000 alone.

8

Economic Impact of Self-Help Groups Women have tremendous energies to start their own enterprises given the right opportunities. They have developed abundant selfconfidence and self-esteem through self-help group movement not only to overcome economic poverty but also social and gender issues which can be tackled effectively through this process. The micro-financing of women through self-help groups has helped the groups to achieve a measure of economic and social empowerment. It has developed a sense of leadership, organizational skill, management of various activities of a business, right from acquiring finance, identifying raw material, market and sustainable diversification and modernization. The Concept of Self-Help Groups The theory of underdevelopment views poverty as a product of vicious circle of low per capita income, low savings and consequently low capital formation and productivity and so on. In rural areas it arises mainly from unemployment, underemployment and low earnings. Poverty reduction requires active involvement of the government, together with substantial non-governmental effort, to tackle it on two fronts simultaneously i.e., production and distribution and redistribution. Development of social infrastructure like education, skill and training is crucial to enable rural people to be gainfully employed, besides paying special emphasis on the provision of Basic Minimum Services (BMS). Poverty alleviation programmes came to be adopted only from the Fifth five year plans, as one of the principal objectives of economic planning. (Mishra and Pun, 2000).

9

Self-Help Groups are usually informal groups whose members have a common perception of need and importance towards collective action. These groups promote savings among members and use the pooled resources to meet the emergent needs of their members, including the consumption needs. The number of members in SHGs is normally ranged from 10 to 20. It is expected that, within the group, there should be true democratic culture in which all the members must participate actively in the decision making process by taking part in the debate rather one should say discussion. Though the cohesiveness among the members would be increased due to homogeneity of the groups in terms of education, occupation, income distribution, sex composition, but in the long term, stability of SHGs depends on their members loyalty to it and the adequacy of SHGs to meet the growing needs of the members. Indian Initiative The first effort was taken by NABARD in 1986-87 when it supported and funded an action research project on “Saving and Credit Management of Self-Help Groups” of Mysore Resettlement and Development Agency (MYNADA). Then NABARD launched a pilot project to provide micro-credit by linking SHGs with bank in 1991-92. During the project period, some NGOs like Association of Sarva Seva Farms (ASSEFA), People’s Rural Education Movement (PREM), Professional Assistance for Development Action (PDAN) and Community Development Society (CDS) have done excellent work in promotion of SHGs and mobilization of thrift and disbursal of credit. In 1999, Reserve Bank of India had set up a Micro-Credit Cell to make it easier to micro-credit providers to pursue institutional development

10

process. Therefore, Microcredit system had been considered as an important instrument to provide credit for self-employment and other financial and business services, including savings and technical assistance, to very poor persons. This is the Concept of economic empowerment of the poor people through formation and nurturing of self-help groups (SHGS) Women, who constitute slightly less than 50 per cent of the total population are generally underemployed due to their limited

command

over

resources

and

regulatory

institutions.

Particularly, rural women face greater than their urban counterparts with no source of livelihood other than agriculture. Hence, the Government has been adopting various program5 for poverty alleviation of poor women in the country. The introduction of DWCRA was one such scheme. However, its several shortcomings leading to its failure paved way for the introduction of self-help groups scheme, a sub-programme under Swarnajayanthi Gram Swarozgar Yojana. (SGSY). The Swarnajayanthi Gram Swarozgar Yojana launched on 01-041999, aims to bring the assisted families (Swrozgaris) above the poverty line by ensuring appreciable sustained level of income over a period of time. The objective is to be achieved by inter alia organizing the rural poor into Self-Help Groups through the process of Social mobilization, training, and capacity-building and provision of income generating assets. The SHG approach helps the Poor to build their self-confidence through community action. This process would ultimately lead to the strengthening and socio-economic empowerment of the rural poor as well as improving their collective bargaining power.

11

Self-Help Groups go through various stages of evolution  Group formation (formation, development and strengthening of the groups to evolve into self- managed people’s organisation at grassroots level): In our society, members are linked by various common bonds like community, blood relation, place of origin, activity, economic status, etc. The facilitators must identify these like minded natural groups which are commonly called ‘Affinity Groups’. Identification of such Affinity Group is critical for the progress and success of the Self-Help Group. This would require staying with the people for some period to facilitate proper understanding and establish rapport with them. Therefore, while forming Groups, facilitators must recognise the natural bonds and affiliations existing within the society.  Group Stabilization through thrift and credit activity amongst the members and building their Group Corpus. The group takes up internal loaning to the members from their Group Corpus. The groups should save regularly and begin to lend to members. This provides the members with opportunities to acquire the skills to prioritize scarce resources, to assess the strength of each member, to time the loans and schedule of repayments and fix interest rates. The group institutionalizes the need to introduce sanctions for deviant behaviour, which could include delay in repayments, arriving late or absenting from meetings etc.  Micro finance, the Group Corpus is supplemented with Revolving Fund sanctioned as cash credit limit by the Banks or the group could also have access to credit under the Self-Help Group-Bank Linkage Programme of NABARD.  Micro enterprise development, Group takes up Economic Activity, of their choice for income generation. This phase would

12

include

Entrepreneurship

Development

as

well

as

Skill

Development Training of the members of the Group to enable them to successfully implement the chosen activity. All the Groups, particularly Groups formed with members who are skill less, asset less, destitute and living under object poverty might not graduate to the stage of Micro enterprise with in the time frame indicated in the Guidelines. Such groups may continue to remain in the Micro-Finance stage for a longer period of time and may require intensive training and capacity building inputs to enable them to reach higher levels of income generation. Self - Help Group Model The Self-help Group Model was presented in Fig. 1.1. The Selfhelp Groups go through various stages of group formation. Initially a bench mark survey is undertaken and problems are identified followed by other stages conscientization, selection of groups, identifying roles of members.

The next stage is group action. At this stage, the members of the self-help groups will be given training related to technologies / production units and are linked with financial institutions like banks, credit unions etc. The other stage is facilitation which includes the change-agent intervention and implementation of corrective measures and the final stage is evaluation.

13

Group formation formation Group Bench mark survey problem identification conscientization selection of groups identifying leaders registration of groups identifying roles

Evaluation

Group action Identifying technology training. Production unit linkage with fianancial institutions

Monitoring problem identification during implementation working out solution

Failitation Change agent Intervention (Reseracher) Implementation of corrective measure

Figure 1.1: Self-help Group Model In this stage, problems identified during implementation of the scheme will be monitored and workable solutions will be identified and implemented. If problem arises in the course of any of these stages, it may be corrected adopting corrective measures. The reverse arrow in Fig. 1.1 indicates that after group formation, monitoring and evaluation can be undertaken at each stage while selecting the groups, identifying leaders, registration of groups etc. As a part of general awareness / conscientization programme, these meetings emphasize the importance of groups, group formation and their importance in starting income generating activities. The members are

14

made aware of the possibilities of income generating vocations and also about the credit facilities given by various financial institutions in starting such enterprise. The strength of a group and its sustainability depends on the facilitation that has gone behind the formation of the groups. The group dynamics in fact reflects the kind of facilitation the group has undergone. Training is a critical input in the effective implementation of self-help groups. The members of the group consist of rural women, who come forward voluntarily, who have enough leisure time and are prepared to take up such enterprise. They are exposed to Entrepreneurship Development Programme as well. From this perspective the SHGs function in different stages. Formation of Self-help Groups The SHG is group of rural poor who have volunteered to organise themselves into a group for eradication of poverty of the members. They agree to save regularly and convert their savings into a Common Fund known as the ‘Group corpus’. The members of the group agree to use this common fund and such other funds that they may receive as a group through a common management. The group formation will keep in view the following broad guidelines: i)

Under the SGSY, generally a self-help group may consist of 10 to 20 persons. However, in difficult areas like deserts, hills and areas with scattered and sparse population and in case of minor irrigation and disabled persons, this number may be from 5-20. The difficult areas have to be identified by the State Level SGSY Committee and the above relaxation in membership will be permitted only in such areas.

15

ii)

Generally all members of the group should belong to families below the poverty line. However, if necessary, a maximum of 20% and in exceptional cases, where essentially required, upto a maximum of 30% of the members in a group may be taken from families marginally above the poverty line living contiguously with BPL families and if they are acceptable to the BPL members of the group. This will help the families of occupational groups such as agricultural labourers, marginal farmers and artisans marginally above the poverty line, or who may have been excluded from the BPL list to become members of the self-help group. However, the APL members will not be eligible for the subsidy under the scheme. The group shall not consist of more than one member from the same family. A person should not be a member of more than one group. The BPL families must actively participate in the management and decision making which should not ordinarily be entirely in the hands of APL families. Further, APL members of the Self- Help Group shall not become office bearers (Group Leader, Assistant Group Leader or Treasurer) of the Group.

iii)

The group should devise a code of conduct (Group management norms) td bind itself. This should be in the form of regular meetings (weekly or fortnightly), functioning in a democratic manner, allowing free exchange of views, participation by the members in the decision making process.

iv)

The group should be able to draw up an agenda for each meeting and take up discussions as per the agenda.

16

v)

The members should build their corpus through regular savings. The group should be able to collect the minimum voluntary saving amount from all the members regularly in the group meetings. The savings so collected will be the group corpus fund.

vi)

The group corpus fund should be used to advance loans to the members. The group should develop financial management norms covering the loan sanction procedure, repayment schedule and interest rates.

vii)

The members in the group meetings should take all the loaning decisions through participatory decision making process.

viii) The group should be able to prioritise the loan applications, fix repayment schedules, fix appropriate rate of interest for the loans advanced and closely monitor the repayment of the loan installments from the loanee. ix)

The group should operate a group account preferably in their service area bank branch, so as to deposit the balance amounts left with the groups after disbursing loans to its members.

x)

The group should maintain simple basic records such as Minutes book, Attendance register, Loan ledger, General ledger, Cash book, Bank passbook and individual passbooks. Fifty per cent of the groups formed in each block should be

exclusively for the women. In the case of disabled persons, the groups formed should ideally be disability-specific wherever possible. However, in case sufficient number of people for formation of disability- specific groups are not available, a group may comprise of persons with diverse disabilities or a group may comprise of both disabled and non-disabled persons below the poverty line.

17

By and large, the SHG will be an informal group. However, the groups can also register themselves under the Societies Registration Act, the State Cooperative Act or as a partnership firm. The SHGs can be further strengthened and stabilized by federating them at, say village or cluster of villages or block or District level depending upon the number of Self-Help Groups and their spatial distribution. The DRDAs may facilitate in planning of network of SHGs by federating them at appropriate level, once SHGs have reached the stage of maturity and have stabilsed. This would facilitate regular interaction, pooling of surplus with the groups, exchange of experiences including flow of information from DRDAs and other departments, bulk access to Credit from various Micro-Finance Institutions and help them to plan for desired backward and forward linkages including marketing of their products. Social mobilisation and community organisation is a process oriented approach as different from target oriented approach. The group formation should not be driven by any targets but lend itself to a ‘process approach’. The members of the SHGs should fully internalise the concept of self-help. A large number of DWCRA groups have been formed and, assisted by DRDAs in the past. Likewise, there are a number of Selfhelp Groups formed by NABARD, other Banks, Rashtriya Mahila Kosh (RMK), Non-Government Organisations (NGOs), Women and Child Development Department under the Swa-Shakti and Swayamsidha etc. The DRDAs should put in concerted efforts to strengthen and consdlidate these groups as some level of synergy already exists and

18

then take steps to form new groups. Further, there is a need to develop data base on the Self-Help Groups formed and existing under various programmes in the district. The DRDAs may act as nodal agency for developing the data base, which should include Self-help Groups formed under all the schemes. This would ensure convergence of various schemes as well as better planning for training and other requirements of SHGs. Table 1.1 Administrative Structure of Self-Help Groups (State Level) Ministry of Rural Development Official Members

Member / Secretary / Joint Secretary State level

Department of Rural Development and Ministry of Panchayatraj

Non-Official Members

State level Co-ordination Committee Chairman Member / Secretary Official

District

District level development agency for

Non-Official

Members

level

each district

Members

District collector / Chairman Zilla Parishad Chairman (Vice-Chairman) Official Members

Member of Governing Body Taluk level

Project Director (DRDA) Asst. Project Director (DWCRA)

Official

Village

Members

level

Taluk Level Organization Village level Organization Self Help Group Leade

19

Non-Official Members

Non-Official Members

The administrative structure of SHGs functioning at the State level encompasses the Ministry of Rural Development at the top and village level organizations at the bottom.

On the above basis, a large number of SHGs have been formed. The SHGs in India function on the lines of the above structure. However while some SHGs were highly successful in attaining the objective of improving the quality of life and empowering of women, the other groups failed to do so. Keeping this in view, the present research study focuses on the factors contributing to the success of SHGs.

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Chapter IV PANCHAYATI RAJ IN ANDHRA

This Chapter analyzes the Panchayati Raj system in Andhra Pradesh. Andhra Pradesh was formed as separate state on linguistic basis on 1st November,

1956,

by merging nine Telugu speaking districts of old

Hyderabad state and with the eleven Telugu speaking districts of the Madras state.

The State is spread over three regions, namely, Coastal Andhra,

Rayalaseema and Telangana. Though each of the regions was characterized by

distinct

historical,

geographical

and

economic

background,

the

application of the system of Panchayati Raj (PR) remained common all over the State.

4.1 Evolution of Panchayati Raj in Andhra Pradesh Before the formation of present Andhra Pradesh, in 1953, the pattern of local self-government was modeled on the one already operating in Madras and Hyderabad States under different Acts such as Madras District Boards Act, 1920, Madras Village Panchayats Act, 1950, Hyderabad District Board Act, 1951 and Hyderabad Village Panchayats Act, 1951, etc. In 1953, three types of rural local self-government institutions were existing in the State, namely, District Boards, Taluk Boards and Village Panchayats. Andhra Pradesh has a long history of Panchayati Raj governance dating as far back as 1959. The Panchayati Raj System came into being in the State as a result of the report of the study team headed by Balawant Rai G. Mehta.

Basing on the Balawant Rai G Mehta Committee Report, the

State had adopted a three-tier Panchayati Raj structure, consisting of Gram Panchayati at bottom-tier, Panchayat Samithi at middle-tier and Zilla Parishad at top-tier. As such, Andhra Pradesh Panchayat Samities and Zilla 147

Parishads Act, 1959 was passed and by the end of 1959, these statutory elected institutions had been established in all the districts. In 1964, the Andhra Pradesh Gram Panchayati Raj Act, superseded the two Gram Panchayat Acts of Andhra and Telangana. There was also a provision for the Gram Sabha consisting of all the persons, included in the electoral roll for the Gram Panchayat. thousand or above, had Panchayat.

Each village, a population of ten

Where the population was less, the

villages were conveniently grouped. The Constitution (73rd Amendment) Act, 1992 has been passed by the parliament with a view mainly to strengthen and revitalize the Panchayati Raj bodies so that they can sub serve the needs of the teeming millions that live in rural areas. Prior to the Constitution Amendment, the Government has appointed an Expert committee on Panchayati Raj bodies headed by Sri. B.P. Vittal, I.A.S. to examine and submit a report on the reorganization of the Panchayati Raj set up and also on the re - organization of revenue set up below the district level. The Expert committee has submitted two separate reports to the Government.

The Government has thereupon

appointed a Cabinet sub-committee with Sri. D.K. Samarasimha Reddy, Minister for Panchayati Raj as Chairperson to examine and make suitable recommendations on the expert committee part on

Panchayati Raj

institutions. The Cabinet sub-committee has considered the report of Expert committee as also the provisions of the constitution amendment and submitted its report to the Government.

148

During the Telugu Desam Government under the Chief Ministership of. N.T. Rama Rao, Andhra Pradesh Government brought about reforms in Panchayati Raj as well as revenue administration by introducing Mandal system, in order to achieve democratic decentralization and to bring administration to the door step of the people. As such the earlier Andhra Pradesh Panchayat Samithis and Zilla Parishads Act, 1959 was replaced by the Andhra Pradesh Mandal Praja Parishads, Zilla Praja Parishads and Zilla Pranalika Abhirudhi Sameeksha Mandals Act, 1986 (Act No. 31 of 1986). According the three tier system comprises of Gram Panchayat, Mandal Praja Parishads and Zilla Praja Parishads, came into force by replacing Gram Panchayats, Block Panchayats and Zilla Parishads.

4.2 The Present Panchayati Raj System The present pattern of Panchayati Raj in the State is functioning under the Andhra Pradesh Panchayati Raj Act, 1994, which was enacted on 21st April of the same year in the light of the 73rd Constitutional Amendment Act, 1993. The Andhra Pradesh Panchayati Raj Act 1994 has incorporated all the requirements of the 73rd Amendment to the Constitution.

It is a

comprehensive legislation covering all the three - tiers of Panchayati Raj.

In

addition to reservation for the SCs, STs and women provision is also made for the members of the backward communities. According to the provisions of the Act, ‘A Gram Panchayat shall consist of such number of elected members inclusive of its Sarpanch as may be notified from time to time, by the Commissioner in accordance with the following table’.

149

SI. No 1 2 3 4 5 6 7 8

Gram Panchayat with a population at the time of last Census Up to 300 Exceeding 300 but not exceeding 500 Exceeding 500 but not exceeding 1500 Exceeding 1500 but not exceeding 3000 Exceeding 3000 but not exceeding 5000 Exceeding 5000 but not exceeding 10000 Exceeding 10000 but not exceeding 15000 Exceeding 15,000

Number of members 5 7 9 11 13 15 17 Between 19 and 21

At the present intermediate level, there are 1095 Mandal Parishads, each of which has a population ranging from 35,000 to 55,000. At the apex of the ‘Panchayati Raj’ structure, there are 22 Zilla Parishads, each covering 50 Mandals on an average and with an average population of 22 lakhs.

4.2.1 Zilla Parishads The final tier of the Panchayat Raj system is the district council (Zilla Parishad) composed of members elected from Zilla Parishad Territorial Constituencies (which are congruent to the mandal area). The ZP elects a president indirectly from amongst its members. Members of the Zilla Praja Parishad include - a member elected from territorial constituency, which is obviously a Mandal; a member of the legislative assembly of the State representing constituency, which forms part or whole of the district concerned; a member of the counsil of the State, who is a registered voter in the district; and two members each belonging to minorities and co-opted by the elected members of the Zilla Parishad.

150

4.2.2 Mandal Parishad Above the GP is the Mandal Parishad (sub-district committee) comprising the area of around 20 GPs. The residents of Mandal Parishad Territorial Constituencies (MPTC roughly corresponding to the Gram) elect members to a Mandal Parishad (MP). The MP members in turn elect a Mandal Parishad President (MPP) from amongst themselves. In contrast to GP elections, political party competition is allowed at the MP level. In every Mandal head quarter, a Primary Health Centre, Veterinary Hospital, High School, Junior College, Police Station, Library and Market Yard be established, to provide all facilities to the people in one place. Members of the Mandal Parishad include - members elected from territorial constituencies; members of legislative assembly representing a constituency, which comprise either whole or part of the Mandal concerned; a member of the council of State who is a registered voter in a Mandal (ex-officio); two members each belonging to minorities and co-opted by the elected members; and Sarpanches of Gram Panchayats as permanent invitees.

4.2.3 Gram Panchayat The Gram Panchayats in Andhra Pradesh stand at the base of the three tier structure of local governance with the Zilla Parishad at the district level and the Mandal Parishad at the intermediate level. Andhra Pradesh comprises 23 districts including one urban district, namely, Hyderabad, covering 1091 mandals. Along with 22 Zilla Parishads,

1095 Mandal

Parishads, there are 21, 895 Gram Panchayats in Andhra Pradesh covering 151

a population of 5,63,11,788 (2011 Census).

District-Wise particulars of

Gram Panchayats (2006-07) are given in the Table -4.1.

It is evident from

the table that maximum numbers of Gram Panchayats are in Chittoor district (1399

Gram Panchayats),

while minimum number of Gram

Panchayats are in Ranga Reddy district (705 Gram Panchayats). The Costal Andhra Pradesh region of the State is made of nine districts.

It has a total of 8,909 Gram Panchayats in this region covering

40.69 per cent of the total Gram Panchayats in the State.

In this region,

Srikakulam district has the highest number of Gram Panchayats (1106), followed by Prakasam (1041), Guntur (1022),

East Godavari (1011),

Visakhapatnam (976), Krishna (973), Nellore (961), Vizianagaram (931) and West Godavari (888). Rayalaseema is made of four districts and this region has 4,131 Gram Panchayats (18.87 per cent).

In this region, Chittoor district has highest

number of Gram Panchayats (1399), followed by Anantapur (1005), Kumool (898) and Kadapa (829). Telangana region has ten districts and this region has 6,802 Gram Panchayats (31.07 per cent).

In this region, maximum number of Gram

Panchayats are in Mahabubnagar district (1348), followed by Karimnagar (1194), Nalgonda (1178), Medak (1061), Warangal (1014), Adilabad (866), Khammam (770), Nizamabad (719) and Ranga Reddy (705).

152

Table-4.1 DISTRICT WISE NUMBER OF GRAM PANCHAYATS IN ANDHRA PRADESH (2006-07) SI. Number of Gram Panchayats % to the total District No. Coastal Andhra region 1. Srikakulam 1106 5.05

Vizianagaram Visakhapatnam East Godavari West Godavari Krishna Guntur Prakasam Nellore Total

2. 3. 4. 5. 6. 7. 8. 9.

931 976 1011 888 973 1022 1041 961 8909

4.25 4.46 4.62 4.06 4.44 4.67 4.75 4.39 40.69

1399 829 1005 898 4131

6.39 3.79 4.59 4.10 18.87

1348 705

6.16 3.22

-

-

1061 719 866 1194 1014 770 1178 6802 21895

4.85 3.28 3.96 5.45 4.63 3.52 5.38 31.07 100.00

Rayalaseem region

10. Chittoor 11. Kadapa 12. Anantapur 13. Kurnool Total Telangana region

14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Mahabubnagar Ranga Reddy Hyderabad Medak Nizamabad Adilabad Karimnagar Warangal Khammam Nalgonda Total Andhra Pradesh

Source:

Statistical Abstract of Andhra Pradesh 2009, Directorate of Economics and Statistics, Government of Andhra Pradesh, Hyderabad.

153

4.2.3.1 Gram Sabha According to the Andhra Pradesh Panchayati Raj Act, 1994, every Gram Panchayat consists of two wings known as ‘Gram Sabha’ and Panchayat.

The Gram Panchayat shall give due consideration to the

suggestions, if any, of the Gram Sabha. Gram Sabha consists of all persons whose names are included in the electoral rolls.

The Gram Sabhas met

atleast twice a year to consider the annual statement of accounts and audit, the report of the administration for the previous year, the programme of works for the ahead, and the proposals for fresh taxation or for enhancement of existing taxes. The Sarpanch (President), or in his absence, the Up-Sarpanch (Vice-President) of the Gram Panchayat has to preside over the meeting. The functions of the Gram Sabha are to examine annual statement of accounts and audit reports; to report on the administration of the preceding year; to examine progress of works for the year on new programmes; to prepare proposals for fresh taxation or for enhancement of existing tax rates; to examine selections of schemes, beneficiaries and locations; and any such other matter as may be prescribed.

4.2.3o2 Gram Panchayat as Political unit The President and Vice-Presidents of the Gram Panchayats in Andhra Pradesh are known as Sarpanch and Upa-Sarpanch respectively. Sarpanch is the political executive of Gram Panchayat and is assisted by UpaSarpanch.

For the purpose of electing members the Gram Panchayats in

Andhra Pradesh are divided into so many wards. 154

One member is elected

from each ward.

The number of members depends on population of the

Village and the number of members in Village Panchayat varies from 4 to 30 in different states. The members of the Panchayat including Sarpanch are directly elected by the registered voters in the ward by the method of secret ballot for a period of five years. Further, the State has provided reservations at all the three tiers of the Panchayati Raj for SCs and STs in proportion to their population and one third reservations for women. Reservation for Backward classes (BCs) is a discretionary provision. seats for EC’s.

Andhra Pradesh has provided reservation of

l/3rd of seats are reserved for women, l/3rd for BCs, not

less than 22.5 per cent for the SCs and 6 per cent for the STs. Section 40 of the Panchayati Raj Act provides for the formation of the functional committees at the Gram Panchayats. Functional Committees can be formed for Water Supply, Sanitation, Family Planning, Education and Communication and for any other purpose of the Act.

The functional

committees have been constituted but remain mostly non-functional.

4.2.3.3 Gram Panchayat as an Administrative Unit In the wake of 73rd Constitutional Amendment in order to strengthen the village governances and to give reputed status to Gram Panchayat, Andhra Pradesh Government has created Panchayat Secretary post at Gram Panchayat level. The Panchayat Secretary will be under the administrative control of the Gram Panchayat. The Gram Panchayats are administratively supported by the Panchayat Secretaries.

155

The Secretaries are from five

different grades of administration placed at different Gram Panchayats depending on the size of the Gram Panchayat and the magnitude of its function. The Secretary functions under the administrative control of the GP, in keeping with the spirit of the Constitutional Amendment. function of the Secretary is the management of the GP funds.

A key The

Secretary, along with the Sarpanch, has cheque - signing power. The GP accounts are also maintained by the Secretary and all deposits and disbursals from the GP funds are done by him. 4.2.3.4 Functional devolution to GPs The functions of the Gram Panchayats in Andhra Pradesh are broadly divided into two, namely, obligatory functions and optional/discretionary functions.. Section 45 and Section 46 of the Andhra Pradesh Panchayat Raj Act, 1994 specify the obligatory and discretionary functions of the GP respectively. The obligatory functions broadly include (a) communications construction, repair and maintenance of roads and bridges, (b). sanitation cleaning of drains, streets, maintenance of pubic latrines and street lights, (c). public health - taking up of preventive and remedial measures for various diseases, and (d). water supply - digging and deepening of wells. The discretionary functions include providing education, health and recreation facilities. Only 16 out of the 29 functions specified in the Eleventh Schedule of the Constitution have been transferred to the Gram Panchayats in Andhra Pradesh.

The list of functions devolved to the Gram Panchayats are -

agriculture including agricultural extension; minor irrigation tanks; social 156

and farm forestry; khadi and village industries; drinking water; roads, culverts,

bridges,

ferries

and

waterways;

non-conventional

energy;

education including primary and secondary schools; technical training and vocational education; adult and non-formal education; libraries; cultural activities; women and child development; social welfare including welfare of handicapped and mentally retarded; public distribution scheme and maintenance of community assets. 4.2.3.5 Financial Devolution to the Gram Panchayats According to Section 74 of the Andhra Pradesh Panchayati Raj Act, ‘Gram Panchayat Fund’ would be constituted by every Gram Panchayat in Andhra Pradesh with all monies received by the Gram Panchayat. The GP fund would be used to spend on all obligatory functions and any other discretionary functions that the GP assumes as well as own staff salaries (Section 75). Revenues to the Gram Panchayats in Andhra Pradesh would come from four major heads, namely, own sources, assigned cess and surcharge collected, grants and donations and contributions.

Revenue from own

sources include mandatory taxes, optional taxes, fees and fines, rents and leases and other remunerative enterprises. Grants include grants coming from state government and central government for specific schemes. Voluntary funds contributions.

donated by the

people

constitute

donations

and

A Gram Panchayat has three compulsory taxes, namely,

house tax, kolagarum (a tax on the village produce sold by weight) and

157

advertisement taxes and two optional taxes, namely, vehicle tax and tax on agricultural lands. Among the various receipts, some funds are specially embarked for expenditure on specific objects and which cannot be diverted for expenditure on any subject other than for which they are collected.

They include water

tax levied under Section 245 of AP Public Health Act, 1939, tax on agricultural lands levied under section 60, special tax levied under section 71 of the Act, loan funds, special grants received from government, Zilla Parishad and Mandal Parishad sanctioned for specific purposes, receipts derived from sale of capital assets, income from endowments and trusts and deposits. The Gram Panchayat has an annual. budget which is approved without any need for outside sanction. But the estimates need to be precise to the extent possible and provisions need to be made for obligatoiy charges. According to G.O.Ms.No.69, dated 29.2.2000 of the Government of Andhra Pradesh, no Gram Panchayat can have a deficit budget or incur any item of expenditure which is not included in the budget. All allotments made in the budget lapses at the end of the year. In addition, a working balance of not less than 5 per cent of estimate receipts has to be maintained. 4.2.3.5.1 Own sources The own sources of revenue comprises of taxes, fees, fines and commercial / remunerative enterprises. House tax and Katarusumu are obligatoiy taxes where as vehicle tax , special tax on agriculture, water tax , 158

drainage tax, lighting tax, pilgrim tax, toll tax , etc; are come under discretionary / optional taxes.

4.2.3.5.2 Transfers from state Government The state government levy and collects revenue in the form of profession tax, entertainment tax, land cess and registration surcharge etc, but the proceeds are transferred to Gram Panchayats as per the guidelines given in the Act.

4.2.3.5.3 Grants - in - Aid I

A major percentage of Gram Panchayat expenditure activity is taken up with the help of Grant- in - Aid received from both the center and the state Governments in India. Hence, the revenue from the Grant-in- Aid is a very important source and it is infect deciding the developmental activities in the Gram Panchayats. The State government along with the union government are providing various Grants, both conditional and unconditional type , to the Panchayats in order to fill the deficit in the Panchayats finances. The grants are of two types i.e., plan grants and non plan grants.

4.2.3.6 Gram Panchayat and the District Collector The district collector is the chief executive authority of the Gram Panchayat. District Panchayat officer assists the collector in administrative matters and supervises the functioning of Gram Panchayat. The collector is empowered to suspend the resolution of Gram Panchayats, which damages

159

the low and order, suspend or dissolve the Panchayat under crucial circumstances. He has the power to fix boundary limits to Gram Panchayats and to establish a new Panchayat.

In addition to the above, Gram

Panchayats have to get permission of the collector in levying special tax on land, special land cess etc.

4.2.4 State Finance Commission The 73rd amendment to the constitution made provision for the creation of a state finance commission for eveiy state. The basic purpose of state finance commission is to be assisting the Panchayati Raj bodies to become financially viable and to see that sufficient revenues are transferred to local bodies to make them perform their functions better in way. State finance commission was constituted in Andhra Pradesh on June 24, 1994. The commission consists of a chairman and four other members appointed by the governor on the recommendations of the government. The term of the office specified in the order of the government.

★ ★ *

160

References 1.

Andhra Pradesh Panchayati Raj Act, 1994.

2.

Bhargava, B.S., (2002), “Panchayati Raj in Andhra Pradesh”, in Palanithurai eds., ‘Dynamics of New Panchayati Raj System in India’, Vol.II, Concept Publishing Company, New Delhi, p.186.

3.

George Mathew (1995), ‘Status of Panchayati Raj in the States of India, 1994’, Concept Publishing Company, New Delhi.

161

THE ANDHRA PRADESH PANCHAYAT RAJ ACT, 1994 (As Amended up to 22 of 2002) (Andhra Pradesh Act No. 13 of 1994) This Act of the Andhra Pradesh Legislative Assembly which was reserved by the Governor on the 15th April, 1994 for the consideration and assent of the President of India, received the assent of the President on the 21st April, 1994 and first published in the Andhra Pradesh Gazette, Part IV-B, Extraordinary No. 13, on April 22, 1994. An Act to provide for the constitution of Gram Panchayats, Mandal Parishads and Zilla Parishads and for matters connected therewith or incidental thereto. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Forty-fifth Year of Republic of India as follows: Part I

PRELIMINARY 1. Short title, extent, 1[application] and commencement:- (1) This Act may be called the Andhra Pradesh Panchayat Raj Act, 1994. (2) It extends to the whole of the State of Andhra Pradesh, except(a) the Municipal Corporations governed by any law relating to Municipal Corporations for the time being in force in the State; (b) the Municipalities governed by the law relating to municipalities for the time being in force in the State; (c) a Notified Area declared under section 389-A of the Andhra Pradesh Municipalities Act, 1965 (Act 6 of 1965); (d) the mining settlements governed by the Andhra Pradesh (Telangana Area) Mining Settlements Act, 1956 (Act XLIV of 1956); and (e) the cantonments governed by the Cantonments Act, 1924 (Central Act 2 of 1924). 2 [(2A) In their application to the Scheduled Areas in the State as referred to in clause (1) of article 244 of the Constitution of India, the remaining provisions of this Act shall apply subject to the provisions of Part VIA of this Act.] (3) It shall come into force on such date and in such area as the Government may, by notification in the Andhra Pradesh Gazette, appoint and they may appoint different dates for different areas and for different provisions. 2. Definitions:- In this Act, unless the context otherwise requires,(1) `Andhra Area' means the territories of the State of Andhra Pradesh other than the Telangana area; (2) `Backward Classes' mean any socially and educationally Backward Classes of citizens recognised by the Government for purpose of clause (4) of Article 15 of the Constitution of India; 3 [* * *] 1

Ins. by Act No. 7 of 1998. Ins. by Section 2 of Ibid. 3 Omitted by Section 2 of Act No. 5 of 1995. 2

Panchayati Raj Acts of States and Union Territories of India

2

(3) `building' includes a house, out-house, shop, stable, latrine, shed (other than a cattle shed in an agricultural land), hut, wall and any other such structure whether of masonry, bricks, wood, mud, metal or other material whatsoever; (4) `casual vacancy' means a vacancy occurring otherwise than by efflux of time, and `casual election' means an election held to fill a casual vacancy; (5) [`Chairperson']4 means the Chairperson of a Zilla Parishad elected under section 181; (6) `Chief 5[Executive Authority]' means the Chief Executive Authority of the Zilla Parishad appointed under section 186; (7) `Collector' means any officer incharge of a Revenue Division and includes a Deputy Collector, a Sub-Collector and an Assistant Collector; (8) `Commissioner' means any officer who is authorised by the Government to exercise any of the powers or discharge any of the duties of the Commissioner under this Act; (9) `Company' means a Company as defined in the Companies Act, 1956 (Central Act 1 of 1956) and includes a foreign company within the meaning of section 591 of that Act; (10) `District Munsif' means the District Munsif appointed under the Andhra Pradesh Civil Courts Act, 1972 (Act 19 of 1971); (11) `election authority' means such authority not being a member or office bearer of any local authority as may, by notification, be appointed by the Andhra Pradesh Election Commissioner for Local Bodies; 6 [(12) `executive authority' means the Panchayat Secretary appointed to each Gram Panchayat.] 7 (13) [* * *] (14) `factory' means a factory as defined in the Factories Act, 1948 (Central Act 63 of 1948) and includes any premises including the precincts thereof, wherein any industrial, manufacturing or trade process is carried on with the aid of steam, water, oil, gas, electrical or any other form of power which is mechanically transmitted and is not generated by human or animal agency; (15) `Finance Commission' means the Finance Commission constituted by the Governor under section 235; (16) `Government' means the State Government; (17) `Gram Panchayat' means the body constituted for the local administration of a village under the Act; (18) `Gram Sabha' means the Gram Sabha which comes into existence under section 6; (19) `house' means a building or a hut fit for human occupation, whether as a residence or otherwise and includes any shop, factory, workshop or warehouse or any building used for garaging or parking buses or as a bus-stand, cattle shed (other than a cattle shed in an agricultural land, poultry shed or dairy shed); (20) `hut' means any building which is constructed, principally of wood, mud, leaves, grass, or thatch and includes any temporary structure of whatever size or any small building of whatever material made, which the Gram Panchayat may declare to be a hut for the purposes of this Act; (21) `latrine' includes privy, water closet and urinal; 4

The words Chairman and Vice-Chairman substituted with Chairperson and Vice Chairperson by Section 7(i) and (ii) of Act. No. 37 of 2001. 5 The words executive officer substituted with the words Executive Authority through out the principal Act by Section 12 of Act No. 22 of 2002. 6 Substituted by Section 2(1) of Act No. 22 of 2002 . 7 Omitted by Section 2(2) of Ibid.

Andhra Pradesh

3

(22) `Mandal' means such area in a district as may be declared by the Government by notification to be a Mandal under section 3 of the Andhra Pradesh District (Formation) Act, 1974 (Act 7 of 1974); (23) `Mandal Parishad' means, a Mandal Parishad constituted or reconstituted under section 148; (24) `Mandal Parishad Development Officer' means, the officer appointed by that designation under section 168; (25) `notification' means a notification published in the Andhra Pradesh Gazette and the word `notified' shall be construed accordingly; (26) `nuisance' includes any act, omission, place or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell or hearing or disturbance to rest or sleep or which is or may be dangerous to life, or injurious to health or property; (27) `ordinary vacancy' means a vacancy occurring by efflux of time and `ordinary election' means an election held to fill an ordinary vacancy; (28) `owner' includes (a) the person for the time being receiving or entitled to receive whether on his own account or as agent, trustee, guardian, manager or receiver for another person or for any religious or charitable purpose, the rent or profits of the property in connection with which the word is used; and (b) the person for the time being in charge of the animal or vehicle in connection with which the word is used; 8 [(28-A) `Panchayat Secretary' means the "Panchayat Secretary" appointed under section 30;] (29) `population' or `population at the last census' means the population as ascertained at the last preceding census of which the relevant figures have been published; (30) `prescribed' means prescribed by the Government by rules made under this Act; (31) `President' means the President of a Mandal Parishad elected under section 153; (32) `private road' means any street, road, square, court, alley, passage or riding path which is not a `public road', but does not include a pathway made by the owner of premises on his own land to secure access to, or the convenient use of such premises; (33) `public road' means any street, road, square, court, alley, passage or riding path, over which the public have a right of way whether a thoroughfare or not, and includes (a) the roadway over any public bridge or cause-way; (b) the footway attached to any such road, public bridge or cause-way; and (c) the drains attached to any such road, public bridge or cause-way, and the land, whether covered or not by any pavement, verandah or other structure, which lies on either side of the roadway upto the boundaries of the adjacent property, whether that property is private property or property belonging to Government; 9

[(34) `qualifying date' in relation to the preparation and publication of every electoral roll under this Act, means the first day of January of the year in which it is so prepared and published.] (35) `registered voter' in the `Mandal Parishad' or `registered voter in the district' means a person whose name appears in the electoral roll prepared and published under section 11 for any Gram Panchayat or Gram Panchayats comprised in the Mandal or as the case may be, in the District; (36) `residence', `reside' - A person is deemed to have his `residence' or to `reside' in any house if he sometimes uses any portion thereof as a sleeping apartment, and a person is not deemed to cease to reside in any such house merely because he is absent from it or has elsewhere another

8 9

Inserted by Sec. 2(3) of Act No. 22 of 2002 Substituted by Sec. 2 of Act No. 26 of 2000

Panchayati Raj Acts of States and Union Territories of India

4

dwelling in which he resides, if he is at liberty to return to such house at any time and has not abandoned his intention of returning; (37) `Sarpanch' means the Sarpanch of a Gram Panchayat elected under section 14; (38) `Scheduled Castes' and `Scheduled Tribes' shall have the meaning respectively assigned to them in clause (24) and clause (25) of Article 366 of the Constitution of India; (39) `Andhra Pradesh Election Commission for Local Bodies' means the Andhra Pradesh Election Commission for Local Bodies constituted under section 200; 10 (40) [`Andhra Pradesh Election Commissioner for Local Bodies'] means # [Andhra Pradesh Election Commissioner for Local Bodies] appointed by the Governor under sub-section (2) of section 200; (41) `Telangana Area' means the territories specified in sub-section (1) of section 3 of the States Reorganisation Act, 1956 (Central Act 37 of 1956); (42) `village' means any local area which is declared to be a village under this Act; (43) `water-course' includes, any river, stream or channel, whether natural or artificial; (44) `year' means the financial year; (45) `Zilla Parishad' means a Zilla Parishad constituted under section 177.

10

Substituted by Sec. 2 of Andhra Pradesh Act. No. 33 of 1998

Andhra Pradesh

5

Part II GRAM PANCHAYAT

Chapter I CONSTITUTION, ADMINISTRATION AND CONTROL OF GRAM PANCHAYATS 3. Declaration of a village for the purposes of this Act:- (1) The 11[Government] may, by notification and in accordance with the rules made 12[* * *] in this behalf, declare any revenue village or hamlet thereof or any part of a mandal to be a village for the purpose of this Act and specify the name of the village. Explanation: For the purposes of this sub-section the expressions `mandal' and `revenue village' shall mean respectively any local area which is recognised as a mandal or village in the revenue accounts of Government after excluding therefrom the area, if any, included in (a) a municipal corporation governed by the relevant law relating to Municipal Corporations for the time being in force in the State; (b) a municipality governed by the law relating to Municipalities for the time being in force in the State; (c) a mining settlement governed by the Andhra Pradesh (Telangana Area) Mining Settlements Act, 1956; (d) a cantonment governed by the Cantonments Act, 1924. (2) The 13[Government] may, by notification and in accordance with such rules as may be prescribed in this behalf (a) form a new village by separation of local area from any village or by uniting two or more villages or parts of villages or by uniting any local area to a part of any village: 14 [Provided that the Government shall take into consideration the financial viability of the Gram Panchayat, to be newly created before bifurcation of the said Gram Panchayat, for the purpose of providing a Panchayat Secretary.] (b) increase the local area of any village; (c) diminish the local area of any village; (d) alter the boundaries of any village; (e) alter the name of any village; (f) cancel a notification issued under sub-section (1). (3)

The 15[Government] may pass such orders as it may deem fit -

(a) as to the disposal of the property vested in a Gram Panchayat which has ceased to exist, and the discharge of its liabilities; and

11

Subs. by Section 3(1)(i) of Act No. 22 of 2002 Omitted by Section 3(1)(ii) of Ibid 13 Subs. by Section 3(2)(a) of Ibid 14 Added by Section 3(2)(b) of Ibid 15 Subs. by Section 3(3) of Ibid 12

Panchayati Raj Acts of States and Union Territories of India

6

(b) as to the disposal of any part of the property vested in a Gram Panchayat which has ceased to exercise jurisdiction over any local area, and the discharge of the liabilities of the Gram Panchayat relating to such property or arising from such local area. An order made under this sub-section may contain such supplemental, incidental and consequential provisions as the Commissioner may deem necessary, and in particular may direct – (i) that any tax, fee or other sum due to the Gram Panchayat or where a Gram Panchayat has ceased to exercise jurisdiction over any local area, such tax, fee, or other sum due to the Gram Panchayat as relates to that area, shall be payable to such authorities as may be specified in the order; and (ii) that appeals, petitions, or other applications with reference to any such tax, fee or sum which are pending on the date on which the Gram Panchayat ceased to exist or, as the case may be, on the date on which the Gram Panchayat ceased to exercise jurisdiction over the local area, shall be disposed of by such authorities as may be specified in the order. 4. Constitution of Gram Panchayats for villages and their incorporation:- (1) A Gram Panchayat shall be deemed to have been constituted for a village on the date of publication of the notification under section 3 in respect of that village and the Special Officer appointed under sub-section (1) of section 143 shall make arrangements for the election of the members and of the Sarpanch of the Gram Panchayat as provided in that section. (2) Subject to the provisions of this Act, the administration of the village shall vest in the Gram Panchayat, but the Gram Panchayat shall not be entitled to exercise functions expressly assigned by or under this Act or any other law to its Sarpanch or executive authority, or to any other local authority or other authority. (3) Every Gram Panchayat shall be a body corporate by the name of the village specified in the notification issued under section 3, shall have perpetual succession and a common seal, and subject to any restriction or qualification imposed by or under this Act or any other law, shall be vested with the capacity of suing or being sued in its corporate name, of acquiring, holding and transferring property, of entering into contracts, and of doing all things necessary, proper or expedient for the purposes for which it is constituted. 5. Township:- (1) The Government may declare, by a notification in the Andhra Pradesh Gazette, a village or any other area to be a township if it is an industrial or institutional colony, a labour colony, a project area, a health resort or a place of religious importance. (2) If the area declared as township under sub-section (1) comprises a village or forms part of a village, the Commissioner shall, under sub-section (2) of section 3, cancel the notification issued under sub-section (1) of that section in respect of such village, or as the case may be, exclude such part from the village. (3) In regard to any area other than a place of religious importance declared to be a township, the Government shall, by notification in the Andhra Pradesh Gazette, constitute a township committee, which shall consist of a Chairperson to be nominated by the Government and the following official and non-official members, namely:A. OFFICIAL MEMBERS (i) in regard to a township constituted for an industrial or institutional colony, labour colony, project area or health resort, the highest official representing the industry, institution, project or health resort concerned; (ii) the Chief Executive Authority of the Zilla Parishad concerned; (iii) the Divisional Engineer, Electricity Board, in whose jurisdiction the township is located;

Andhra Pradesh

(iv) (v)

7

the Executive Engineer, Panchayat Raj, of the Division in which the township is located; and an officer of the Tourism Department wherever necessary and in other cases an official representing the management of the industry, institution, project or health resort concerned as may be nominated by the Government; and

B. NON-OFFICIAL MEMBERS (i) (ii) (iii) (iv)

the Member of the Lok Sabha in whose constituency the township is located; the Member or Members of the Legislative Assembly in whose constituency the township is located; one woman member, who is a registered voter in the township to be nominated by the Government; and two persons who are registered voters in the township, other than those persons specified in items (i) to (iii) and who are specially qualified to assist and advise the Township Committee on its various activities to be nominated by the Government:

Provided that one of the Members to be nominated under this clause shall be a member belonging to the Scheduled Castes or Scheduled Tribes. (4) The Chairperson and the non-official members of the Committee under items (iii) and (iv) of sub-section (3) shall hold office during the pleasure of the Government and the official members and non-official members under items (i) and (ii) of sub-section (3) shall hold office so long as they hold their respective offices. (5) A notification issued by the Government under sub-section (3) may direct that any functions vested in a Gram Panchayat by or under this Act shall be transferred to and performed by the township committee and shall provide for– (i) the restrictions and conditions subject to which the township committee may perform its functions; and (ii) any other matter incidental to, or connected with, the transfer of the functions of a Gram Panchayat to the township committee including the apportionment of the revenues between the township committee and the Gram Panchayat concerned or any contributions or compensation that shall be paid by the township committee to the Gram Panchayat concerned. (6) Every township committee shall, in regard to the conduct of its business, follow such procedure as may be prescribed. (7) The Government may, by notification in the Andhra Pradesh Gazette direct that any of the provisions of this Act or of the law relating to municipalities for the time being in force or of any rules made thereunder or of any other enactment for the time being in force elsewhere in the State but not in the village or local area or specified part thereof referred to in sub-section (1) shall apply to that village, local area or part to such extent and subject to such modifications, additions and restrictions as may be specified in the notification. 6. Gram Sabha: (1) There shall come into existence a Gram Sabha for every village on the date of publication of notification under section 3. (2) A Gram Sabha shall consist of all persons whose names are included in the electoral roll for the Gram Panchayat referred to in section 4 and such persons shall be deemed to be the members of the Gram Sabha. (3) The Gram Sabha shall meet at least twice in every year on such date and at such place and time as may be prescribed to consider the following matters which shall be placed before it by the Gram Panchayat, namely:–

Panchayati Raj Acts of States and Union Territories of India

(i) (ii) (iii) (iv) (v) (vi)

8

annual statement of accounts and audit report; report on the administration of the preceding year; programme of works for the year or any new programme not covered by the budget or the annual programme; proposals for fresh taxation or for enhancement of existing taxes; selection of schemes, beneficiaries and locations; and such other matter as may be prescribed.

The Gram Panchayat shall give due consideration to the suggestions, if any, of the Gram Sabha. (4) The Gram Sabha shall observe such rules of procedure at its meetings as may be prescribed. 16 [(5) Every meeting of the Gram Sabha within 10 days from the date prescribed under subsection (3) shall be convened and presided over by the Sarpanch or in his absence by the Upa Sarpanch of the Gram Panchayat.] 7. Total strength of a Gram Panchayat:- 17[1] A Gram Panchayat shall consist of such number of elected members inclusive of its Sarpanch as may be notified from time to time, by the Commissioner in accordance with the following Table:TABLE Gram Panchayat with a Population at the Last Census Upto 300 Exceeding 300 but not exceeding 500 Exceeding 500 but not exceeding 1,500 Exceeding 1,500 but not exceeding 3,000 Exceeding 3,000 but not exceeding 5,000 Exceeding 5,000 but not exceeding 10,000 Exceeding 10,000 but not exceeding 15,000 Exceeding 15,000

Number of Members 5 7 9 11 13 15 17 Between 19 & 21

18

[(2) The Member of the Mandal Parishad Territorial Constituency shall be permanent invitee to the meetings of Gram Panchayats and he shall have the right to speak in and otherwise to take part in the proceedings of any meeting of the Gram Panchayat or Gram Panchayats functioning within the local limits of the respective jurisdiction; but shall not, by virtue of this section be entitled to vote at any such meeting.] 19

[(3) One representative from each category of Self Help Group/Functional Group to be elected in a meeting of the Self Help Group / Functional Group, which shall be presided over by the Sarpanch for co-option in the manner prescribed. They shall have the right to speak in and otherwise to take part in proceedings of any meeting but they shall not be entitled to vote at any such meeting.] 8. Election of members:- All members of the Gram Panchayat shall be elected by the registered voters in the ward by the method of secret ballot and in accordance with such rules as may be made in this behalf. 16

Subs. by Section 4 of Act No. 22 of 2002 Renumbered by Section 2 of Act No. 16 of 1996 18 Added by Section 2 of Ibid 19 Added by Section 5 of Act No. 22 of 2002 17

Andhra Pradesh

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9. Reservation of seats of members of Gram Panchayats:- (1) In every Gram Panchayat, out of the total strength of elected members determined under section 7, the Commissioner shall, subject to such rules as may be prescribed, by notification, reserve – (a) such number of seats to the Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election to the Gram Panchayat, as the population of the Scheduled Castes, or as the case may be, Scheduled Tribes in that village bears to the total population of that village, and such seats may be allotted by rotation to different wards in a Gram Panchayat; 20 [* * *] (c) not less than one-third of the total number of seats reserved under 21[clause (a) and sub-section (1 A)] for women belonging to the Scheduled Castes, Scheduled Tribes or as the case may be the Backward Classes; (d) not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes, Scheduled Tribes and Backward Classes) of the total number of seats to be filled by direct election to every Gram Panchayat shall be reserved for women and such seats may be allotted by rotation to different wards in a Gram Panchayat. 22

[(1A) In addition to the reservation of seats under sub-section (1), there shall be reserved for the Backward Classes such a number of seats as may be allocated to them in each Gram Panchayat in the manner prescribed; so however that the number of offices of members of Gram Panchayats in the State reserved for Backward Classes shall not be less than thirty-four per cent of the total number of offices of the members of Gram Panchayats in the State. The number of seats allocated to each Gram Panchayat shall be allotted by rotation to different wards in the Gram Panchayat: Provided that it shall be competent for the Government to make special provision with regard to the manner and quantum of seats to be reserved for Backward Classes in the Gram Panchayats situated in the Scheduled areas by rules made in this behalf."] (2) Nothing in 23[sub-sections (1) and [(1A)] shall be deemed to prevent women and members of the Scheduled Castes, Scheduled Tribes or Backward Classes from standing for election to the non-reserved seats in the Gram Panchayat. 10. Division of wards:- For the purpose of electing members to a Gram Panchayat, the Commissioner shall, subject to such rules as may be prescribed, divide the village into as many wards as there are seats, determined under section 7, on a territorial basis in such a manner that all wards shall have, as far as practicable, equal number of voters and allot not more than one seat for each ward. 11. Preparation and Publication of electoral roll for a Gram Panchayat: (1) The 24[* * *] electoral roll for Gram Panchayat shall be prepared by the person authorised by the Andhra Pradesh Election Commissioner for Local Bodies in such manner by reference to such qualifying date as may be prescribed and the electoral roll for the Gram Panchayat shall come into force immediately 25[upon its publication] in accordance with the rules made by the Government in this behalf. The 26[* * *] 20

Omitted by of Act No. 5 of 1995. Subs. by Ibid. 22 Added by Ibid. 23 Subs. by Ibid. 24 Omitted by section 3(i)(a) of Act No. 26 of 2000. 25 Subs. by Ibid. 26 Omitted by Ibid. 21

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electoral roll for the Gram Panchayat shall consist of such part of the electoral roll for the Assembly Constituency published under the Representation of the People Act, 1950 (Central Act 43 of 1950) as revised or amended under the said Act, upto the qualifying date, as relates to the village or any portion thereof: 27 [Provided that any amendment, transposition or deletion of any entries in the electoral roll, or any inclusion of names in the electoral roll of the Assembly Constituencies concerned, made by the Electoral Registration Officer under section 22 or section 23, as the case may be, of the Representation of the People Act, 1950, up to the date of election notification, for any election held under this Act, shall be carried out in the electoral roll of the Gram Panchayat and any such names included shall be added to the part relating to the last ward.] Explanation:- Where in the case of any Assembly Constituency there is no distinct part of the electoral roll relating to the village, all persons whose names are entered in such roll under the registration area comprising the village and whose addresses as entered are situated in the village shall be entitled to be included in the electoral roll for the Gram Panchayat prepared for the purposes of this Act. 28 [(2) The electoral roll for a Gram Panchayat:(a) shall be prepared and published in the prescribed manner by reference to the qualifying date,(i) before each ordinary election; and (ii) before each casual election to fill a casual vacancy in the office of the Sarpanch and Member of a Gram Panchayat; and (b) shall be prepared and published in any year, in the prescribed manner, by reference to the qualifying date, if so directed by the Andhra Pradesh Election Commission for Local Bodies: Provided that if the electoral roll is not prepared and published as aforesaid, the validity, or continued operation of the said electoral roll, shall not thereby be affected.] (3) The 29[electoral roll] published under sub-section (1) shall be the electoral roll for the Gram Panchayat and it shall remain in force till a fresh electoral roll for the Gram Panchayat is published under this section. (4) The electoral roll for the Gram Panchayat shall be divided into as many parts as there are wards so that each part consists of the voters residing in the concerned ward and for this purpose the electoral roll may be rearranged if such rearrangement is found necessary. (5) Every person whose name appears in the part of the electoral roll relating to a ward shall subject to the other provisions of this Act, be entitled to vote at any election which takes place in that ward while the electoral roll remains in force and no person whose name does not appear in such part of the electoral roll shall vote at any such election. (6) No person shall vote at an election under this Act in more than one ward or more than once in the same ward and if he does so, all his votes shall be invalid. Explanation:- In this section, the expression `Assembly Constituency' shall mean a constituency provided by law for the purpose of elections to the Andhra Pradesh Legislative Assembly. 12. Rearrangement and republication of electoral rolls:- Where, after the electoral roll for the Gram Panchayat has been published under sub-section (1) of section 11, the village is divided into wards for the first time or the division of the village into wards is altered or the limits of the village are varied, the person authorised by the Andhra Pradesh Election Commissioner for Local Bodies in 27

Inserted by Section 3(i)(c) of Ibid. Subs. by Section 3(ii) of Ibid. 29 Subs. by Section 3(iii) of Ibid. 28

Andhra Pradesh

11

this behalf shall, in order to give effect to the division of the village into wards or to the alteration of the wards, or to the variation of the limits, as the case may be, authorise a re-arrangement and republication of the electoral roll for the Gram Panchayat or any part of such roll in such manner, as the Andhra Pradesh Election Commissioner for Local Bodies may direct. 13. Term of Office of members:- (1) Save as otherwise provided in this Act the term of office of members elected at ordinary elections shall be five years from the date appointed by the Commissioner for the first meeting of the Gram Panchayat after the ordinary elections. (2) Ordinary vacancies in the office of elected members shall be filled at ordinary elections which shall be fixed by the election authority to take place on such day or days within three months before the occurrence of the vacancies, as he thinks fit: Provided that the Andhra Pradesh Election Commissioner for Local Bodies may, for sufficient reasons to be recorded in writing, direct from time to time, the postponement or alteration of the date of an ordinary election or any stage thereof within the period of three months aforesaid and the election authority shall give effect to such directions. (3)(a) Every casual vacancy in the office of an elected member of a Gram Panchayat shall be reported by the executive authority to the election authority within fifteen days from the date of occurrence of such vacancy and shall be filled within four months from that date. (b) A member elected in a casual vacancy shall enter upon office forthwith but shall hold office only so long as the member in whose place he is elected would have been entitled to hold office if the vacancy had not occurred. (c) No casual election shall be held to a Gram Panchayat within six months before the date on which the term of office of its members expires by efflux of time. 14. Election and term of office of Sarpanch:- (1) There shall be a Sarpanch for every Gram Panchayat, who shall be elected in the prescribed manner by the persons whose names appear in the electoral roll for the Gram Panchayat, from among themselves. A person shall not be qualified to stand for election as Sarpanch, unless he is not less than twenty-one years of age: Provided that a Member of the Legislative Assembly of the State or of either House of Parliament who is elected to the office of Sarpanch or Upa-Sarpanch shall cease to hold such office unless within one month from the date of election to such office he ceases to be a Member of the Legislative Assembly of the State or of either House of Parliament by resignation or otherwise. (2) The election of the Sarpanch may be held at the same time and in the same place as the ordinary elections of the members of the Gram Panchayat. (3) Save as otherwise expressly provided in, or prescribed under this Act, the term of office of the Sarpanch who is elected at an ordinary election shall be five years from the date appointed by the election authority for the first meeting of the Gram Panchayat after the ordinary election. (4) Subject to the provisions of sub-section (5), any casual vacancy in the office of the Sarpanch shall be filled within one hundred and twenty days from the date of occurrence of such vacancy, by a fresh election under sub-section (1); and a person elected as Sarpanch in any such vacancy shall hold office only so long as the person in whose place he is elected would have been entitled to hold office if the vacancy had not occurred. (5) Unless the Commissioner otherwise directs, no casual vacancy in the office of the Sarpanch shall be filled within six months before the date on which the ordinary election of the Sarpanch under sub-section (1) is due. (6) The provisions of sections 18 to 22 shall apply in relation to the office of the Sarpanch as they apply in relation to the office of an elected member of the Gram Panchayat.

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(7) The Sarpanch shall be an ex-officio member of the Gram Panchayat and shall be entitled to vote at meetings of the Gram Panchayat. (8) A person shall be disqualified for election as Sarpanch if he is in arrears of any dues, otherwise than in a fiduciary capacity to a Mandal Parishad, or if he is interested in a subsisting contract made with or any work being done for, the Mandal Parishad within whose jurisdiction the Gram Panchayat is situated or any other Gram Panchayat within the jurisdiction of that Mandal Parishad: Provided that a person shall not be deemed to have any interest in such contract or work by reason only of his having a share or interest in,– (i) a company as a mere shareholder but not as a director; or (ii) any lease, sale or purchase of immovable property or any agreement for the same; or (iii) any agreement for the loan of money or any security for the payment of money only; or (iv) any newspaper in which any advertisement relating to the affairs of any of the aforesaid Gram Panchayat is inserted. Explanation: For the removal of doubts it is hereby declared that where a contract is fully performed it shall not be deemed to be subsisting merely on the ground that the Mandal Parishad has not performed its part of the contractual obligation. (9) For every Gram Panchayat, one of the members shall be elected to be Upa-Sarpanch by the Gram Panchayat, in the prescribed manner. If at an election held for the purpose, no UpaSarpanch is elected fresh election shall be held: Provided that before an election of Upa-Sarpanch is held, every casual vacancy in the office of an elected member of a Gram Panchayat shall be filled. (10) A special meeting for the election of the Upa-Sarpanch shall be called on the same date on which the results of the ordinary elections to the Gram Panchayat have been published. The notice of the meeting for election of Upa-Sarpanch shall be given to the members so elected by affixture of the same on the notice board at the office of the Gram Panchayat, immediately after such publication: Provided that if, for any reason, the election of the Upa-Sarpanch is not held on the date aforesaid the special meeting for the election of the Upa-Sarpanch shall be held on the next day, whether or not it is a holiday observed by the Gram Panchayat: Provided further that the Government may, from time to time, for reasons to be recorded in writing direct or permit the holding of the election of the Upa-Sarpanch on any other day. 15. Reservation of Office of Sarpanch: 30[1]Out of total number of offices of Sarpanch in the State, the Commissioner shall, subject to such rules as may be prescribed, by notification reserve– (a) such number of offices to the Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of offices so reserved shall bear, as nearly as may be, the same proportion to the total number of offices to be filled in the State as the population of the Scheduled Castes, or as the case may be, Scheduled Tribes in the State bears to the total population of the State; and such seats may be allotted by rotation to different Gram Panchayats in the State; 31

30 31

[* * *]

Added by Section 4 of Act No. 5 of 1995 Omitted by Section 4 (i) of Act No. 5 of 1995

Andhra Pradesh

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(c) not less than one-third of the total number of offices reserved under 32[clause (a) and sub-section (2)] for women belonging to the Scheduled Castes, Scheduled Tribes, or as the case may be, Backward Classes; and (d) not less than one-third (including the number of offices reserved for women belonging to the Scheduled Castes, Scheduled Tribes and the Backward Classes) of the total number of offices to be filled in the State for women; and such offices may be allotted by rotation to different Gram Panchayats in the State. 33 [(2) In addition to the reservation of offices of Sarpanch under sub-section (1), there shall be reserved for the Backward Classes such number of Offices of Sarpanch as may be allocated to them in each Mandal in the manner prescribed; so, however, that the number of Offices or Sarpanchas in the State reserved for Backward Classes shall not be less than thirty-four per cent of the total number of offices of Sarpanchas of Gram Panchayats in the State. The number of offices of Sarpanchas allocated for reservation to each Mandal shall be allotted by rotation to different Gram Panchayats in the Mandal: Provided that it shall be competent for the Government to make special provision with regard to the manner and quantum of seats to be reserved for Backward Classes in the Gram Panchayats situated in the Scheduled areas, by rules made in this behalf.] 16. Fresh elections in certain cases:- (1) If at an ordinary or casual election, no person is elected to fill a vacancy, a fresh election shall be held on such day as the officer or authority authorised by the Andhra Pradesh Election Commissioner for Local Bodies in this behalf, may fix. (2) The term of office of a member of a Gram Panchayat elected under this section shall expire at the time at which it would have expired if he had been elected at the ordinary or casual election, as the case may be. 17. Qualifications of candidates:- No person shall be qualified for election as a member of a Gram Panchayat unless his name appears on its electoral roll and he is not less than twenty-one years of age. 18. Disqualification of certain office holders etc.: (1) No village servant and no officer or servant of the Government of India or any State Government or of a local authority or an employee of any institution receiving aid from the funds of the Government and no office bearer of any body constituted under a law made by the Legislature of the State or of Parliament shall be qualified for being chosen as or for being a member of a Gram Panchayat. Explanation:- For the purpose of this section, the expression "village servant" means in relation to– (i) the Andhra Area, any person who holds any of the village offices of neeraganti, neeradi, vetti, kawalkar toti, talayar, tandalagar, sathsindi or any such village office by whatever designation it may be locally known; (ii) the Telangana Area, any person who holds any of the village offices of neeradi, kawalkar, sathsindhi or any such village office by whatever designation it may be locally known. (2) A person who having held an office under the Government of India or under the Government of any State or under any local authority has been dismissed for corruption or for disloyalty to the State or to the local authority shall be disqualified for a period of five years from the date of such dismissal.

32 33

Subs. by Section 4 (ii) Act No. 5 of 1995 Added by Section 4 (iii) of Act No 5 of 1995

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(3) For the purpose of sub-section (2), a certificate issued by the Andhra Pradesh Election Commissioner for Local Bodies to the effect that a person having held office under the Government of India or under the Government of State or under any local authority has or has not been dismissed for corruption or for disloyalty to the State or to the local authority shall be conclusive proof of that fact: Provided that no certificate to the effect that a person has been dismissed for corruption or for disloyalty to the State or to the local authority shall be issued unless an opportunity of being heard has been given to the said person. 34 [(4) * * *] (5) Apart from the disqualifications specified in sub-sections 35[(1) and (2)] of this section and sections 19 and 20, a person shall be disqualified for being chosen as, and for being, a member of a Gram Panchayat if he is otherwise disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the State: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years: Provided further that where a person is convicted for an offence specified under sub-section (1) or sub-section (2) of section 8 of the Representation of People Act, 1951 (Central Act 43 of 1951) or under section 19 of this Act, while he is a member or office bearer of a Gram Panchayat, Mandal Parishad or Zilla Parishad, the disqualification arising out of such conviction shall not take effect until the expiry of the time for filing an appeal against such conviction and where an appeal is filed until the disposal of the appeal: Provided also that a person convicted for an offence under sub-section (1) of section 8 of the Representation of People Act, 1951 (Central Act 43 of 1951) shall be disqualified for being chosen as or for continuing as a member of a Gram Panchayat, Mandal Parishad or a Zilla Parishad for a period of six years from the date of conviction and a person convicted under sub-section (2) thereof shall be disqualified for a period of six years from the date of conviction and for a further period of five years from the date of release. 19. Disqualification of candidates:- (1) A person who has been convicted by a Criminal Court,– (a) for an offence under the Protection of Civil Rights Act, 1955 (Central Act 22 of 1955); or (b) for an offence involving moral delinquency; shall be disqualified for election as a Member for a period of five years from the date of conviction or where he is sentenced to imprisonment while undergoing sentence and after a period of five years from the date of expiration thereof. (2) A person shall be disqualified for being chosen as a member if on the date fixed for scrutiny of nominations for election, or on the date of nomination under sub-section (2) of section 16 he is – (a) of unsound mind and stands so declared by a competent court; (b) a deaf-mute 36[* * *]; (c) an applicant to be adjudicated an insolvent or an undischarged insolvent; (d) interested in a subsisting contract made with, or any work being done for, the Gram Panchayat, Mandal Parishad, Zilla Parishad or any State or Central Government:

34

Omitted by Section 2(1) of Act No. 37 of 2001 Substituted by Section 2(2) of Ibid 36 Omitted by Section 6 of Act No. 22 of 2002 35

Andhra Pradesh

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Provided that a person shall not be deemed to have any interest in such contract or work by reason only of his having a share or interest in(i) a company as a mere shareholder but not as a director; (ii) any lease, sale or purchase of immovable property or any agreement for the same; or (iii) any agreement for the loan of money or any security for the payment of money only; or (iv) any newspaper in which any advertisement relating to the affairs of the Gram Panchayat is inserted; Explanation:- For the removal of doubts it is hereby declared that where a contract is fully performed it shall not be deemed to be subsisting merely on the ground that the Gram Panchayat, Mandal Parishad, Zilla Parishad, the State or Central Government has not performed its part of the contractual obligation. (e) employed as paid legal practitioner on behalf of the Gram Panchayat or as legal practitioner against the Gram Panchayat; (f) employed as a 37[* * *] manager or secretary of any Company or Corporation (other than a co-operative society) in which not less than twenty-five per cent of the paid up share capital is held by the State Government; (g) an Honorary Magistrate under the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) with jurisdiction over any part of the village; (h) already a member of the Gram Panchayat whose term of office will not expire before his fresh election can take effect or has already been elected as a member of the Gram Panchayat whose term of office has not yet commenced; (i) in arrears of any dues including the sums surcharged otherwise than in a fiduciary capacity, to the Gram Panchayat upto and inclusive of the previous year, in respect of which a bill or notice has been duly served upon him and the time, if any, specified therein for payment has expired: Provided that where any person has paid such dues into the Government treasury or into a bank approved by the Government to the credit of the Gram Panchayat Fund and obtained a challan or receipt therefor in token of such payment, he shall not be disqualified to become a member of the Gram Panchayat on and from the date of such payment. (3) A person having more than two children shall be disqualified for election or for continuing as member: Provided that the birth within one year from the date of commencement of the Andhra Pradesh Panchayat Raj Act, 1994 hereinafter in this section referred to as the date of such commencement, of an additional child shall not be taken into consideration for the purposes of this section: Provided further that a person having more than two children (excluding the child if any born within one year from the date of such commencement) shall not be disqualified under this section for so long as the number of children he had on the date of such commencement does not increase: Provided also that the Government may direct that the disqualification in this section shall not apply in respect of a person for reasons to be recorded in writing. 38

[19.A Disqualification on ground of corrupt practice or election offences:- Any person who is convicted of any offence punishable under Chapter IX A of the Indian Penal Code, 1860, and any person against whom a finding of having indulged in any corrupt practice is recorded in the verdict in an election petition filed in accordance with section 233, or any person convicted of an offence

37 38

Omitted by Section 5 of Act No. 5 of 1995. Inserted by Section 4 of Act No. 26 of 2000.

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punishable under Chapter II of Part V of this Act, for a period of six years from the date of such conviction or verdict, as the case may be. 19.B Disqualification for failure to lodge account of election expenses:- If the Andhra Pradesh Election Commission for Local Bodies is satisfied that a person– (a) has failed to lodge an account of election expenses within the time and in the manner required by or under this Act, and (b) has no good reason or justification for the failure, the Andhra Pradesh Election Commission for Local Bodies shall, after following the procedure prescribed, by order published in the Andhra Pradesh Gazette, declare him: (i) to be ineligible for a period of three years from the date of the said order to contest any election held for any office under this Act; and (ii) to have ceased to hold office; in case he is elected.] 20. Disqualification of members:- Subject to the provisions of section 22, a member shall cease to hold office as such if he– (a) is or becomes subject to any of the disqualifications specified in section 19; 39 [(aa) is elected as a member to a Ward/Office reserved for Scheduled Castes or Scheduled Tribes or Backward Classes on the basis of a community certificate and subsequently the said community certificate is cancelled under section 5 of the Andhra Pradesh (Scheduled Castes, Scheduled Tribes and Backward Classes) Regulation of issue of Community Certificates Act, 1993.] (b) absents himself from the meetings of the Gram Panchayat for a period of ninety days, reckoned from the date of the commencement of his term of office, or of the last meeting which he attended, or of his restoration to office as member under sub-section (1) of Section 21, as the case may be, or if within the said period, less than three ordinary meetings have been held, absents himself from three consecutive ordinary meetings held after the said date: Provided that in the case of a woman member, a period of not more than four months at a time shall be excluded in reckoning the period of absence aforesaid, if for reasons of physical disability due to advanced stage of pregnancy and delivery, such member absents herself from meetings after giving a written intimation to the Executive Authority of the date from which she would be absent: Provided further that no meeting from which a member absented himself shall be counted against him under this clause if – (i) due notice of that meeting was not given to him in the prescribed manner; or (ii) the meeting was held on a requisition of members. Explanation: For the purpose of this clause, (i) "ordinary meeting" shall mean a meeting held after giving a notice of at least three days before the day of the meeting; (ii) where a meeting other than an ordinary meeting intervenes between one ordinary meeting and another ordinary meeting, those two ordinary meetings shall be regarded as being consecutive to each other. 40

[20-A. Disqualification of Sarpanch or Upa Sarpanch for failure to convene the meetings of Gram Sabha:- (1) Subject to the provisions of section 22, a Sarpanch or as the case may be, a Upa Sarpanch shall cease to hold office as such, if he fails to convene the meetings of the Gram Sabha as required under sub-section (5) of section 6 and further even on or before a date specified in a show cause notice issued on him after the expiry of ten days, requiring him to convene the meetings of the 39 40

Inserted by Section 3 of Act No. 37 of 2001. Added by Section 7 of Act No. 22 of 2002.

Andhra Pradesh

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Gram Sabha and cease to exercise the powers and perform the functions of the Sarpanch or UpaSarpanch as the case may be, unless such cessation has otherwise occurred before that date and for a period of one year from such date, he shall not be eligible to be elected as Sarpanch or Upa-Sarpanch as the case may be. (2) Every such cessation as is referred to in sub-section (1) shall be intimated by the Divisional Panchayat Officer in writing to the Sarpanch or the Upa Sarpanch as the case may be. 20-B. Disqualification of Sarpanch or Upa-Sarpanch for failure to close audit of the accounts:A Sarpanch or as the case may be, a Upa Sarpanch shall cease to hold office as such, if he fails to get the accounts of the Gram Panchayat audited within the period as required under the proviso to subsection (3) of section 266.] 21. Restoration of members to office:- (1) Where a person ceased to be a member under section 18 or clause (a) of section 20 read with section 19, he shall be restored to office for such portion of the period for which he was elected as may remain unexpired at the date of such restoration, if and when the conviction or the sentence is annulled on appeal or revision or the disqualification caused by the sentence is removed by an order of the Government; and any person elected to fill the vacancy in the interim shall, on such restoration, vacate office. (2) Where a person incurs the disqualification specified under clause (b) of section 20, the executive authority shall forthwith send a report in that regard to the District Panchayat Officer concerned, who shall, on satisfying himself after due verification, that the person has ex-facie ceased to be a member, intimate that fact by registered post to the member concerned and report the same to the Gram Panchayat forthwith. If such member applies for restoration of his membership to the Gram Panchayat within thirty days of the receipt by him of such intimation, he shall be deemed to have been restored to his membership and the executive authority shall report the fact of such restoration to the Gram Panchayat at its next meeting: Provided that a member who is so restored to his membership again incurs the disqualification under the said clause (b), the Gram Panchayat may, on his application for restoration filed within a period of thirty days of the receipt by him of the intimation from the District Panchayat Officer regarding the disqualification restore him to his membership. 22. Authority to decide questions of disqualifications of members:- (1) Where an allegation is made that any person who is elected as a member of a Gram Panchayat is not qualified or has become disqualified under section 17, section 18, section 19 or Section 20 by any voter or authority to the Executive Authority in writing and the Executive Authority has given intimation of such allegation to the member through the District Panchayat Officer and such member disputes the correctness of the allegation so made, or where any member himself entertains any doubt whether or not he has become disqualified under any of those sections, such member or any other member may, and the Executive Authority, at the direction of the Gram Panchayat or the Commissioner shall, within a period of two months from the date on which such intimation is given or doubt is entertained, as the case may be, apply to the 41[District Court] having jurisdiction over the area in which the office of the Gram Panchayat is situated for decision. (2) Pending such decision, the member shall be entitled to act as if he is qualified or were not disqualified. (3) Where a person ceases to be the Sarpanch or Upa-Sarpanch of a Gram Panchayat as a consequence of his ceasing to be a member of the Gram Panchayat under clause (b) of section 20 and is restored later to his membership of the Gram Panchayat under sub-section (2) of section 21, he shall 41

Subs. by Section 8 of Act No. 22 of 2002.

Panchayati Raj Acts of States and Union Territories of India

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with effect from the date of such restoration, be deemed to have been restored also to the office of Sarpanch or Upa-Sarpanch, as the case may be. 42

[22-A. Bar of jurisdiction:- No order passed or proceedings taken under the provisions of this Act, shall be called in question in any Court, in any suit or application; and no injunction shall be granted by any Court except District Court in respect of any action taken or about to be taken in pursuance of any power conferred by or under this Act.] 23. Resignation of members, Upa Sarpanch, Sarpanch:- (1) The Sarpanch, Upa-Sarpanch or any member may resign his office in the manner prescribed. (2) (a) Notwithstanding that the resignation of a person from the office of Sarpanch has taken effect under sub-section (1), the Commissioner may by notification record a finding, with reasons therefor, that such person is guilty of wilful omission or refusal to carry out, or disobedience of, the provisions of the Act or any rules, bye-laws, regulations or lawful orders made thereunder or abuse of the powers vested in him, while he held the office of Sarpanch: Provided that the Commissioner shall, before issuing such notification give the person concerned an opportunity for explanation: Provided further that no action under this clause shall be taken after the expiration of one year from the date on which the resignation has taken effect. (b) A person aggrieved by the notification issued under clause (a) may, within thirty days from the date of publication of such notification prefer an appeal to the Government and the Government shall in case the appeal is allowed, cancel such notification. (c) A person in respect of whom a notification was issued under clause (a) shall, unless the notification is cancelled under clause (b), be ineligible for election as Sarpanch for a period of three years from the date of publication of such notification. 24. Cessation of Upa-Sarpanch:- The Upa-Sarpanch shall cease to hold the office as such on the expiry of his term of office as a member of the Gram Panchayat or on his otherwise ceasing to be such member. 25. Powers and functions of the Sarpanch: Save as otherwise provided by or under this Act, the Sarpanch shall– (a) make arrangements for the election of the Upa-Sarpanch within one month from the date of occurrence of the Vacancy; (b) have full access to the records of the Gram Panchayat; (c) exercise administrative control over the executive authority, if there is one, for the purpose of implementation of the resolutions of the Gram Panchayat or any committee thereof; (d) exercise all the powers and perform all the functions specifically conferred or imposed on the Sarpanch by this Act or the rules made thereunder; (e) have power to require any 43[Executive Authority] of any village within the jurisdiction of the Gram Panchayat to furnish any information on any matter falling within such categories as may be prescribed in respect of such village or any person or property therein, required for the purpose of this Act; (f) intimate to the District Panchayat Officer, every case where any member has incurred any disqualification under sections 16 to 20; and (g) act only within the terms of sanction given in any resolution of the Gram Panchayat. 42

Inserted by Section 9 of Ibid. The words executive officer substituted with the words Executive Authority through out the principal Act by Section 12 of Act No. 22 of 2002. 43

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26. Devolution and delegation of Sarpanch's powers and functions and filling up of vacancies in the office of Sarpanch:- (1) When the office of Sarpanch is vacant, the Upa-Sarpanch shall exercise the powers and perform the functions of the Sarpanch until a new Sarpanch is declared elected and assumes office. (2) If the Sarpanch has been continuously absent from jurisdiction for more than fifteen days or is restrained by an order of a Court from exercising the powers and performing the functions of the Sarpanch, or is incapacitated for more than fifteen days, his powers and functions during such absence, restraint or incapacity shall devolve on the Upa-Sarpanch. (3) When the Sarpanch is under suspension or when the office of Sarpanch is vacant or the Sarpanch has been continuously absent from jurisdiction for more than fifteen days or is restrained by an order of a Court from exercising the powers and performing the functions of the Sarpanch or is incapacitated for more than fifteen days and the Upa-Sarpanch also is under suspension or there is either a vacancy in the office of Upa-Sarpanch or the Upa-Sarpanch has been continuously absent from jurisdiction for more than fifteen days or is restrained by an order of a Court from exercising the powers and performing the functions of the Upa-Sarpanch or is incapacitated for more than fifteen days, the powers and functions of the Sarpanch shall devolve on a member of Gram Panchayat appointed by the Commissioner in this behalf. The member so appointed shall be styled as the temporary Sarpanch and he shall exercise the powers and perform the functions of the Sarpanch until a new Sarpanch or Upa-Sarpanch is declared elected or either the Sarpanch or the Upa-Sarpanch ceases to be under suspension or returns to jurisdiction or ceases to be restrained by an order of a Court or recovers from his incapacity, as the case may be. (4) The Upa-Sarpanch or the temporary Sarpanch appointed under sub-section (3) shall report to the District Panchayat Officer, any vacancy in the office of Sarpanch within one month from the date of occurrence of such vacancy. (5) Subject to such rules as may be prescribed, the Sarpanch may, by an order in writing, delegate any of his powers and functions, with such restrictions and conditions as may be specified in the order, to the Upa-Sarpanch or in case there is a vacancy in the office of Upa-Sarpanch or the UpaSarpanch has been continuously absent from jurisdiction for more than fifteen days or is restrained by an order of a Court from exercising his powers and performing his functions, to any member. (6) The reference to the powers and functions of Sarpanch in sub-sections (1), (2), (3) and (5) shall, where he is also the executive authority, be deemed to include a reference to his powers and functions as Executive Authority. (7) The exercise of any powers or the performance of any functions devolving on the Upa-Sarpanch under sub-section (2) or delegated to the Upa-Sarpanch or any member under subsection (5), shall be subject to the control and revision by the Sarpanch. 27. Removal of temporary Sarpanch:- The Commissioner may, by order, for sufficient cause to be specified therein, remove the temporary Sarpanch appointed under sub-section (3) of Section 26 after giving him an opportunity to show cause against such removal. 28. Rights of individual members:- (1) Any member may call the attention of the executive authority to any neglect in the execution of Gram Panchayat work, to any waste of Gram Panchayat property or to the wants of any locality and may suggest any improvements which may appear desirable and thereupon, the Executive Authority, shall explain at the next meeting of the Gram Panchayat, the action, if any, that has been taken or is proposed to be taken with reference to the matter to which attention has been called, or the improvements suggested by the member.

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(2) Every member shall have the right to move resolutions and to interpellate the Sarpanch on matters connected with the administration of the Gram Panchayat, subject to such rules as may be prescribed. (3) Every member shall have access during office hours to the records of the Gram Panchayat after giving due notice to the executive authority, provided that the executive authority, may, for reasons given in writing, forbid such access: Provided that the member who has been denied such access may prefer an appeal to the Extension Officer (Panchayats) whose decision thereon shall be final. 29. No Sarpanch, Upa-Sarpanch or members to receive remuneration:- No Sarpanch, UpaSarpanch or member shall receive, or be paid from the funds at the disposal of or under the control of the Gram Panchayat, any salary or other remuneration for services rendered by him whether in his capacity as such or in any other capacity. Nothing in this section shall prevent the Sarpanch from receiving any honorarium, fixed by order, by the Government. 30. Appointment of Executive Authoritys for certain Gram Panchayats:- (1) A whole time or a part-time Executive Authority shall be appointed by the Commissioner for any Gram Panchayat or for any group of contiguous Gram Panchayats which may be notified by him in this behalf: Provided that before notifying a group of Gram Panchayats under this sub-section, the Commissioner shall obtain the approval of the Government. (2) In the case of every Gram Panchayat not so notified and also in the case of any Gram Panchayat so notified, if there is no Executive Authority in-charge, the Sarpanch of the Gram Panchayat shall, subject to such rules as may be prescribed, exercise the powers and perform the functions of the Executive Authority. (3) Save as otherwise prescribed, no Executive Authority appointed under sub-section (1) shall undertake any work unconnected with his office without the sanction of the Government. (4) The Executive Authority shall be subordinate to the Gram Panchayat. 31. Functions of Executive Authority: 44[ (1) The Panchayat Secretary, with the approval of, or on the direction of the Sarpanch, convene the meetings of the Gram Panchayat so that at least one meeting of the Gram Panchayat is held every month and if he fails to discharge that duty, with the result that no meeting of the Gram Panchayat is held within a period of ninety days from the last meeting he shall be liable to disciplinary action under the relevant rules: Provided that where the Sarpanch fails to give his approval for convening the meeting so as to hold a meeting within the period of ninety days aforesaid, the Panchayat Secretary shall himself convene the meeting in the manner prescribed.] (2) The Executive Authority shall ordinarily attend to the meetings of the Gram Panchayat or of any committee thereof and shall be entitled to take part in the discussions thereat, but he shall not be entitled to vote or to move any resolution. 32. Functions of the Executive Authority:- The Executive Authority shall – (a) be responsible for implementing the resolutions of the Gram Panchayat and of the Committee thereof: Provided that where the Executive Authority considers that a resolution has not been legally passed or is in excess of the powers conferred by this Act or that if carried out, it is likely to endanger human life or health or the public safety, the Executive Authority shall: (i) where he is the Sarpanch directly; 44

Subs. by Section 10 of Act No. 22 of 2002.

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(ii) where he is not the Sarpanch, through the Sarpanch, refer the matter to the Commissioner for orders, and his decision shall be final; (b) control all the officers and servants of the Gram Panchayat; (c) exercise all the powers and perform all the functions specifically conferred or imposed on the Executive Authority by or under this Act and subject to all restrictions and conditions imposed by or under this Act, exercise the executive power for the purpose of carrying out the provisions of this Act and be directly responsible for the due fulfilment of the purpose thereof. 33. Emergency powers of Sarpanch:- In case of emergency, the Sarpanch may, in consultation with the Executive Authority, if any, direct the execution of any work or the doing of any act which requires the sanction of the Gram Panchayat or any of its committees and the immediate execution or the doing of which is, in his opinion, necessary for the service or safety of the general public, but he shall report the action taken under this section and the reasons thereof to the Gram Panchayat or the concerned committee at its next meeting: Provided that he shall not direct the execution of any work or the doing of any act in contravention of any order of the Government. 34. Exercise of functions of Executive Authority by Health Officer in certain cases:- The Commissioner may, by general or special order, authorise the Health Officer of the District to exercise such of the functions of an Executive Authority under this Act in such area and subject to such restrictions and conditions and to such control and revision as may be specified in such order. 35. Delegation of functions of Executive Authority:- Subject to such restrictions and control as may be prescribed, the Executive Authority may, by an order in writing, delegate any of his functions as such – (i) if he is the Sarpanch, to the Upa-Sarpanch and in the absence of the Upa-Sarpanch, to any other member; (ii) if he is not the Sarpanch, to the Sarpanch; in the absence of the Sarpanch to the UpaSarpanch and in the absence of both Sarpanch and Upa-Sarpanch to any other member. The exercise or discharge of any functions so delegated shall be subject to such restrictions and conditions as may be laid down by the Executive Authority and shall also be subject to his control and revision. 36. Officers and other employees of Gram Panchayat:- (1) Subject to such rules as may be made under the proviso to Article 309 of the Constitution, the Government shall fix and may alter the number, designations and grades of and the salaries, fees and allowances payable to such officers and other employees of a Gram Panchayat as may be prescribed. (2) The Government shall pay, out of the Consolidated Fund of the State, the salaries, allowances, leave allowances, pension and contributions, if any towards provident fund or pensioncum-provident fund of the officers and other employees referred to in sub-section (1). (3) The classification and methods of recruitment, conditions of service, pay and allowances, and discipline and conduct of the officers and employees referred to in sub-section (1) shall be regulated in accordance with such rules as may be made under the proviso to Article 309 of the Constitution. (4) Every holder of the post specified in sub-section (1), who is appointed immediately before the commencement of this Act, shall, notwithstanding anything in this Act, continue to hold such post, subject to such rules as may be made under the proviso to Article 309 of the Constitution, and until provision in that behalf is so made, the law for the time being in force regulating the

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recruitment and conditions of service applicable to such holder immediately before such commencement shall continue to apply to such holder. (5) All officers and other employees of the Gram Panchayat shall be subordinate to the Gram Panchayat. (6) The Government may, from time to time by order, give such directions to any Gram Panchayat or any officer, authority or person thereof, as may appear to them to be necessary for the purpose of giving effect to the provisions of this section and section 30; and the Gram Panchayat, officer, authority or person shall comply with all such directions. (7) The provisions of this section shall also apply to the public health establishment of Gram Panchayats, notwithstanding anything in the Andhra Pradesh (Andhra Area) Public Health Act, 1939 (Act 3 of 1939) or any other law similar thereto for the time being in force in the State. (8) Subject to such rules as may be made under the proviso to Article 309 of the Constitution the Commissioner may appoint such engineering and other staff as he considers necessary for the purposes of any Gram Panchayat or two or more Gram Panchayats. 37. Presidency at meetings:- Save as otherwise provided by or under this Act, every meeting of a Gram Panchayat shall be presided over by the Sarpanch, in his absence by the Upa-Sarpanch and in the absence of both Sarpanch and Upa-Sarpanch by a member chosen by the meeting to preside for occasion. 38. Minutes of proceedings:- The minutes of the proceedings at every meeting of a Gram Panchayat shall be recorded and action taken thereon in the manner prescribed. 39. Power to call for records:- A Gram Panchayat or a committee thereof may, at any of its meetings, require the Executive Authority to furnish any document in his custody, in so far as such document relates to any of the subjects included in the agenda for such meeting and the Executive Authority shall comply with every such requisition. 40. Beneficiary committees and functional Committees:- (1) For every Gram Panchayat there shall be a Committee by name "Beneficiary Committee" for the execution of the works of the Gram Panchayat. The composition, including co-option of persons who are not members of the Gram Panchayat and the powers and functions and other related matters of the Beneficiary Committee, shall be such as may be prescribed. (2) For every Gram Panchayat there shall be constituted functional committees respectively for agriculture, public health, water supply, sanitation, family planning, education and communication and for any other purposes of this Act. (3) The constitution including co-option of persons who are not members of the Gram Panchayat and powers of a functional committee shall be in accordance with such rules as may be prescribed. 41. Proceedings of Gram Panchayats and Committees:- (1) The proceedings of every Gram Panchayat and of all committees thereof shall be governed by such rules as may be prescribed and by regulations, not inconsistent with such rules or the provisions of this Act, made by the Gram Panchayat with the approval of the Commissioner. (2) The Commissioner shall have power to add to, omit or alter any regulations submitted for his approval under sub-section (1). (3) The rules that may be prescribed under sub-section (1) may provide for preventing any member or Sarpanch or any member or Chairman of a Committee from voting on, or taking part in the discussion of any matter in which apart from its general application to the public, he has any

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direct or indirect pecuniary interest whether by himself or through some other person, or from being present or presiding at any meeting of the Gram Panchayat or of the committee during the discussion of any such matter. 42. Appointment of Joint Committee:- A Gram Panchayat may, and if so required by the Government shall, join with one, or more than one, other local authority in constituting a joint committee for any purpose in which they are interested or for any matter for which they are jointly interested or for any matter for which they are jointly responsible. The composition, powers and functions and other incidental and consequential matters shall be such as may be prescribed. 43. Administration report:- The Executive Authority of every Gram Panchayat shall prepare a report on its administration for each year, as soon as may be after the close of such year and not later than prescribed date, in such form and with such details as may be prescribed and place it before the Gram Panchayat for its consideration. 44. Powers of inspecting and superintending Officers and of the Government:- (1) The Commissioner shall supervises the administration of all Gram Panchayats in the State and shall also exercise the powers and perform the functions vested in him by or under this Act. (2) (a) The Government may appoint such other officers as they may consider necessary for the purpose of inspecting or superintending the operations of all or any of the Gram Panchayats constituted under this Act. (b) In particular and without prejudice to the generality of the foregoing provision, the Government may appoint District Panchayat Officers, Divisional Panchayat Officers and Extension Officers (Panchayats) and define the territorial jurisdiction of each such officer. (c) The Government shall have power to regulate the classification, methods of recruitment, conditions of service, salary and allowances and discipline and conduct of the officers referred to in clauses (a) and (b) and of the members of their establishment. (3) The cost of the officers and the members of the establishment aforesaid shall be paid out of the Consolidated Fund of the State. (4) The District Panchayat Officers, the Divisional Panchayat Officers and the Extension Officers (Panchayats) shall exercise such powers and perform such functions as may be prescribed, or as may be delegated to them under this Act. (5) The Commissioner or the District Collector or any officer appointed under subsection (2) or any other officer or person whom the Government or the Commissioner or the District Collector may empower in this behalf, may enter on and inspect, or cause to be entered on and inspected,– (a) any immovable property or any work in progress under the control of any Gram Panchayat or Executive Authority; (b) any school, hospital, dispensary, vaccination station, country, or other institutions maintained, by or under the control of, any Gram Panchayat and any records, registers or other documents kept in such institution; (c) the office of any Gram Panchayat and any records, registers or other documents kept therein. Gram Panchayats and their Sarpanches, executive authorities, officers and servants shall be bound to afford to the officers and persons aforesaid, such access, at all reasonable times, to Gram Panchayat property or premises, and all documents as may, in the opinion of such officers or persons,

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subject to such rules as may be prescribed, be necessary to enable them to discharge their duties, under this section. (6) The Commissioner or any officer or person whom the Government, or the Commissioner may empower in this behalf may,– (a) direct the Gram Panchayat to make provision for and to execute or provide any public work or amenity or service of the description referred to in section 45; (b) call for any record, register or other document in the possession, or under the control, of any Gram Panchayat or Executive Authority; (c) require any Gram Panchayat, or Executive Authority to furnish any return, plan, estimate, statement, account or statistics; (d) require any Gram Panchayat, or Executive Authority to furnish any information or report on any matter connected with such Gram Panchayat; (e) record in writing for the consideration of any Gram Panchayat, or Executive Authority any observations in regard to its or his proceedings or functions.

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Chapter II POWERS, FUNCTIONS AND PROPERTY OF GRAM PANCHAYATS 45. Duty of Gram Panchayat to Provide for Certain Matters:- (1) Subject to the provisions of this Act and the rules made thereunder, it shall be the duty of a Gram Panchayat within the limits of its funds to make reasonable provisions for carrying out the requirements of the village in respect of the following matters, namely:(i) the construction, repair and maintenance of all buildings vested in the Gram Panchayat and of all public roads in the village (other than the roads vested in the Mandal Parishad and Zilla Parishad and the roads classified by the Government as National and State Highways) and of all bridges, culverts, road dams and causeways on such roads; (ii) the lighting of public roads and public places; (iii) the construction of drains and their maintenance and the disposal of drainage water and sullage; (iv) the cleaning of streets, the removal of rubbish heaps,jungle growth and prickly-pear, filling in of the disused wells, insanitary ponds, pools, ditches, pits or hollows and other improvements of the sanitary condition of the village; (v) the provision of public latrines and arrangements to clean latrines, whether public or private; (vi) the opening and maintenance of cremation and burial-grounds, and the disposal of unclaimed dead bodies of human beings or of animals; (vii) preventive and remedial measures connected with any epidemic or with malaria; (viii) the sinking and repairing of wells, the excavation, repair and maintenance of ponds or tanks and the construction and maintenance of water works, for the supply of water for washing and bathing purposes and of protected water for drinking purposes; (ix) the conservation of manurial resources, preparation of compost and sale of manure; (x) the registration of births and deaths; (xi) the establishment and maintenance of cattle ponds; and (xii) all other matters expressly declared obligatory by or under this Act or any other law. (2) Apart from the matters specified in sub-section (1), the Government may, subject to such rules as may be made in this behalf, entrust the Gram Panchayats with any functions in relation to the subjects specified in Schedule-I. (3) The Gram Panchayats shall do resource planning at village level. (4) No suit for damages for failure or for enforcement of the duty to make provision in respect of any of the matters specified in sub-section (1) shall be maintainable against any Gram Panchayat, Executive Authority, officer or servant of the Gram Panchayat. 46. Power of Gram Panchayat to provide for certain other matters:- Subject to the provisions of this Act and the rules made thereunder, a Gram Panchayat may also make such provision as it thinks fit for carrying out the requirements of the village in respect of the following matters, namely:(i) the construction and maintenance of dharmashalas, sarais and rest houses for travellers; (ii) the planting and preservation of groves and trees on the sides of roads and other public places; (iii) the promotion and development of pre-primary education, elementary education, social and health education, cottage industries and trade;

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(iv) the establishment and maintenance of dispensaries and the payment of subsidies to rural medical practitioners; (v) the establishment and maintenance of wireless receiving sets, play grounds, akhadas, clubs and other centres for recreation and physical culture; (vi) the laying and maintenance of parks; (vii) the establishment and maintenance of libraries and reading rooms; (viii) the provision of relief to the crippled, the destitute and the sick; (ix) the establishment and maintenance of nurseries and stores of improved seeds and agricultural implements of the production and distribution of improved seeds, pesticides and insecticides and the holding of agricultural shows including cattle shows; (x) the propagation of improved methods of cultivation in the village including laying out of demonstration plots with a view to increasing production; (xi) the encouragement of co-operative management of lands in the village and the organisation of joint co-operative farming; and the promotion of co-operatives for the manufacture of bricks, tiles, hinges, doors, windows, rafters or other building materials as provided in the village housing project schemes sponsored by the Central Government; (xii) the establishment and maintenance of ware-houses and granaries; (xiii) the establishment and maintenance of cattle sheds; (xiv) the extension of village sites; (xv) the improvement of cattle including purchase and maintenance of stud bulls and the provision of veterinary relief; (xvi) the control of fairs, jataras and festivals; (xvii) the organisation of voluntary labour for community development works in the village; (xviii) the establishment and maintenance of maternity and child welfare centres; (xix) the organisation of watch and ward; (xx) the provision of relief against famine or other calamities; (xxi) the destruction of stray and owner-less dogs; (xxii) the preparation of statistics of unemployment; (xxiii) the opening and maintenance of public markets; (xxiv) the opening and maintenance of public slaughter houses; (xxv) the implementation of land reform measures in the village including consolidation of holdings and soil conservations; (xxvi) the setting up of organisation to promote good will and social harmony between different communities, the removal or untouchability, the provision of house sites for harijans, the eradication of corruption, the prohibition of or temperance in the consumption of intoxicating drinks or drugs which are injurious to health and the discouragement of gambling and litigation; (xxvii) other measures of public utility calculated to promote the safety, health, convenience, comfort or moral, social and material well-being of the residents of the village. 47. Maintenance of common dispensaries, child welfare centres etc.:- Subject to the provisions of this Act and the rules made thereunder, two or more Gram Panchayats may establish and maintain common dispensaries, child welfare centres and institutions of such other kind as may be prescribed. 48. Transfer of management of forests to Gram Panchayat: (1) Subject to any law for the time being in force the Government may, by notification, transfer to any Gram Panchayat with its consent and subject to such conditions as may be agreed upon, the management and maintenance of a forest adjacent to the village; and they may by a like notification, withdraw management and maintenance of such forest from the Gram Panchayat after giving an opportunity to the Gram Panchayat to make its representation.

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(2) When the management and maintenance of any forest is transferred to Gram Panchayat under sub-section (1), the income derived by the Gram Panchayat from the forest under its management and maintenance or the expenditure incurred by the Gram Panchayat, for such a management and maintenance shall be apportioned between the Government and the Gram Panchayat in such manner as the Government may, by order, determine. 49. Transfer to Panchayats of institutions or works:- (1) Subject to such rules as may be prescribed, the Government, the District Collector or the Revenue Divisional Officer, Mandal Parishad or Zilla Parishad or any person or body of persons, may transfer to the Gram Panchayat, with its consent and subject to such conditions as may be agreed upon, the management of any institution, or the execution or maintenance of any work, or the exercise of any power or the discharge of any duty, whether within or without the village, and whether provided for in this Act or not. (2) When the management of any institution is transferred to the Gram Panchayat under sub-section (1), all property, endowments and funds belonging thereto, shall be held by the Gram Panchayat in trust for the purposes to which such property, endowments and funds were lawfully applicable at the time of such transfer. 50. Power of Commissioner of Land Revenue to transfer, resume control of endowments and inams:- (1) (a) Subject to the control of the Government, the Commissioner of Land Revenue may, by notification, make over to a Gram Panchayat, with its consent, the management and superintendence of any charitable endowment in respect of which powers and duties attached to the said Commissioner under the provisions of the Andhra Pradesh Escheats and Bona Vacantia Act, 1974 (Act 35 of 1974) and thereupon all powers and duties attaching to the Commissioner in respect thereof shall attach to the Gram Panchayat as if it had been specifically named in the said Regulation or law, and the Gram Panchayat shall manage and superintend such endowment. (b) The Commissioner of Land Revenue may of his own motion, and shall on a direction from the Government, by notification in the Andhra Pradesh Gazette, resume the management and superintendence of any endowment made over to a Gram Panchayat under clause (a) and upon such resumption, all the powers and duties attaching to the Gram Panchayat in respect of the endowment shall cease and determine. (2) The Government may assign to a Gram Panchayat with its consent a charitable inam resumed by the Government or any authority, provided that the net income from such inam can be applied exclusively to any purpose to which the funds of such Gram Panchayat may be applied; and may revoke any assignment so made. (3) No order of resumption under clause (b) of sub-section (1) or of revocation under sub-section (2), shall be passed unless the Gram Panchayat has had an opportunity of making its representation. 51. Limitation of power to accept donations and trusts:- A Gram Panchayat may accept donations for, or trust relating exclusively, to the furtherance of any purpose to which its funds may be applied. 52. Maintenance of cattle pounds: (1) Notwithstanding anything in the Cattle Trespass Act, 1871 (Central Act 1 of 1871) – (i) any cattle pound so transferred to a Gram Panchayat, or a cattle pound established by a Gram Panchayat under this Act, shall be maintained and controlled by the Gram Panchayat; (ii) a pound keeper for every cattle pound referred to in clause (i), shall be appointed by the Gram Panchayat; and

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(iii) all sums on account of fines and surplus unclaimed sale proceeds realised under the Cattle Trespass Act, 1871 in respect of any cattle pound referred to in clause (i) shall be credited to the Gram Panchayat Fund. (2) Subject to the provisions of sub-section (1) the provisions of the Cattle Trespass Act, 1871 shall, as far as may be applicable to the cattle pounds referred to in clause (i) of sub-section (1). 53. Vesting of public roads in Gram Panchayat:- (1) All public roads in any village, other than National Highways, State High Ways and Roads vesting in Zilla Parishad or Mandal Parishad shall vest in the Gram Panchayat together with all pavements, stones and other materials thereof, all works, materials and other things provided therefor, all sewers, drains, drainage works, tunnels and culverts, whether made at the cost of the Gram Panchayat Fund or otherwise, in along side or under such roads, and all works, materials and things appertaining thereto: Provided that the Gram Panchayat shall take steps to remove encroachments on, and prevent, un-authorised use of, any road other than a National Highway passing through the Gram Panchayat. (2) The Government may, after giving an opportunity to the Gram Panchayat of making a representation by notification, exclude from the operation of this Act any such public road, sewer, drain, drainage work, tunnel or culvert, and may also modify or cancel such notification. 54. Collected sewage etc., belong to Gram Panchayat:- All rubbish, sewage, filth and other matter collected by a Gram Panchayat under this Act shall belong to it. 55. Vesting of Communal Property or Income in Gram Panchayat:- Any property or income which by custom belongs to or has been administered for the benefit of the villagers in common or the holders in common of village land generally or of lands of a particular description or of lands under a particular source of irrigation, shall vest in the Gram Panchayat and be administered by it for the benefit of the villagers or holders aforesaid. 56. Maintenance of irrigation works, execution of kudimaramat etc.:- (1) (a) Subject to such conditions and control as may be prescribed, the Government may transfer to any Gram Panchayat the protection and maintenance of any village irrigation work, the regulation of turns of irrigation, or of distribution of water from any such irrigation work to the field depending on it. (b) Subject to such restriction and control as may be prescribed, the fishery rights in minor irrigation tanks and the right to auction weeds and reeds in such tanks and the right to plant trees on the bunds of such tanks and enjoy the usufruct thereof shall vest in the Gram Panchayat. (2) The Gram Panchayat shall have power, subject to such restrictions and control as may be prescribed, to execute kudimaramat in respect of any irrigation source in the village and to levy such fee and on such basis for the purposes thereof as may be prescribed: Provided that nothing in this section shall be deemed to relieve the village community or any of its members of its or his liability under the Andhra Pradesh (Andhra Area) Compulsory Labour Act, 1858 (Central Act 1 of 1858) or any other law similar thereto for the time being in force in respect of any irrigation source in the village, in case the Gram Panchayat makes default in executing the kudimaramat in respect of that irrigation source. 57. Vesting of the management of ferries in Gram Panchayats etc.:- Notwithstanding anything in the Andhra Pradesh (Andhra Area) Canals and Public Ferries Act, 1890 (Act 2 of 1890) and the Andhra Pradesh (Telangana Area) Ferries Act, 1314 Fasli (Act 2 of 1314 F), the management of a public ferry in the Andhra Area, and of a Government ferry in the Telangana area other than a ferry mentioned in sub-section (2) shall vest –

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(a) in the case of a ferry connecting any public road under the management of a Gram Panchayat and lying wholly within the jurisdiction of that Gram Panchayat, in such Gram Panchayat and in the case of a ferry connecting any public road under the management of a Gram Panchayat and lying within the jurisdiction of more than one Gram Panchayat, in a joint committee of the Gram Panchayats concerned; (b) in case of a ferry connecting any public road under the management of a Mandal Parishad and lying wholly within the jurisdiction of that Mandal Parishad, in such Mandal Parishad and in the case of ferry connecting any public road under the management of a Mandal Parishad and lying within the jurisdiction of more than one Mandal Parishad, in a joint committee of the Mandal Parishads concerned; (c) in the case of a ferry connecting any public road under the management of a Gram Panchayat or a Mandal Parishad and lying partly within the jurisdiction of a municipality, in a joint committee of the Gram Panchayat or a Mandal Parishad as the case may be, and the Municipality concerned. (2) The Government may, subject to such conditions as may be agreed upon transfer the management of any such ferry connecting a National Highway or a State Highway and lying wholly within the jurisdiction of a Gram Panchayat or a Mandal Parishad to such Gram Panchayat or Mandal Parishad and in case the said ferry is lying within the jurisdiction of more than one Gram Panchayat or Mandal Parishad, to the Zilla Parishad concerned. (3) The constitution and powers of the procedure to be adopted by any joint committee referred to in sub-section (1) and the method of resolving any difference of opinion arising between the local authorities concerned in connection with the works of such committee shall be in accordance with such rules as may be prescribed. (4) The income realised by a Zilla Parishad, Mandal Parishad or a Gram Panchayat from any ferry under its management under sub-section (1) or sub-section (2) shall form part of its funds. The income realised by joint committee referred to in sub-section (1) or by a Zilla Parishad under subsection (2) from a ferry under its management shall be apportioned in equal shares between the local authorities concerned and the amount so apportioned shall form part of the funds of such local authorities. Explanation:- For the purpose of this section, the expression `Public Ferry' in relation to the Andhra Area, and expression `Government Ferry' in relation to Telangana Area, shall respectively have the meaning assigned to them in the Andhra Pradesh (Andhra Area) Canals and Public Ferries Act, 1890 (Act 2 of 1890) and the Andhra Pradesh (Telangana Area) Ferries Act, 1314 Fasli (Act 2 of 1314 F). 58. Certain Government porambokes to vest in Gram Panchayat etc.:- (1) The following porambokes namely, grazing grounds, threshing floors, burning and burial grounds, cattle stands, cart stands and topes, which are at the disposal of the Government and are not required by them for any specific purpose shall vest in the Gram Panchayat subject to such restrictions and control as may be prescribed. (2) The Government may, at any time by notification in the Andhra Pradesh Gazette, direct that any porambokes referred to in sub-section (1) shall cease to vest in the Gram Panchayat if it is required by them for any specific purpose and thereupon such porambokes shall vest in the Government. (3) The Gram Panchayat shall have power, subject to such restrictions and control as may be prescribed, to regulate the use of any other poramboke which is at the disposal of the Government, if the Gram Panchayat is authorised in that behalf by an order of the Government.

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(4) The Gram Panchayat may, subject to such restrictions and control as may be prescribed, plant trees on any poramboke the use of which is regulated by it under sub-section (3). Explanation:- If any question arises whether a land is a poramboke or not, for the purposes of this section, the question shall be referred to the Government whose decision thereon shall be final. 59. Acquisition of immovable property required by Gram Panchayat:- Any immovable property which any Gram Panchayat may require for the purpose of this Act or any rules made thereunder may be acquired under the provisions of the Land Acquisition Act, 1894 (Central Act 1 of 1894) and on payment of the compensation awarded under the said Act, in respect of such property and of any other charges incurred in acquiring it, the said property shall vest in the Gram Panchayat.

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Chapter III TAXATION AND FINANCE 60. Taxes leviable by Gram Panchayats:- (1) A Gram Panchayat shall levy in the village,– (a) a House tax; (b) kolagaram, or katarusum that is to say, tax on the village produce sold in the village by weight, measurement or number subject to such rules as may be prescribed; (c) such other tax as the Government may, by notification, direct any Gram Panchayat or class of Gram Panchayats to levy subject to such rules as may be prescribed: Provided that no such notification shall be issued and no such rule shall be made except with the previous approval of the Legislative Assembly of the State. (2) A duty shall also be levied on transfers of property situated in the area under the jurisdiction of the Gram Panchayat in accordance with the provisions of section 69. (3) Subject to such rules as may be prescribed the Gram Panchayat may also levy in the village,– (i) a vehicle tax; (ii) a tax on agricultural land for a specific purpose; (iii) a land-cess at the rate of two naya paise in the rupee on the annual rental value of all occupied lands which are not occupied by or adjacent and appurtenant to buildings; (iv) fees for use of porambokes or communal lands under the control of the Gram Panchayat; (v) fees for the occupation of building including chavadies and sarais under the control of the Gram Panchayat. (4) Every Gram Panchayat may also levy a duty in the form of a surcharge on the seigniorage fees collected by the Government on materials other than minerals and minor minerals quarried in the village: Provided that the rate at which such duty shall be levied shall be fixed by the Gram Panchayat with the previous approval of the Government. (5) Every Gram Panchayat may, with the previous approval of the prescribed authority also levy, in respect of lands lying within its jurisdiction, a duty in the form of a surcharge at such rate, not exceeding twenty-five naya paise in the rupee, as may be fixed by the Gram Panchayat,– (a) in the Andhra Area, on the land cess, leviable under section 78 of the Andhra Pradesh (Andhra Area) District Boards Act, 1920 (Act XIV of 1920) and on the education tax leviable under section 37 of the Andhra Pradesh Education Act, 1982 (Act 1 of 1982); (b) in the Telangana Area, on the local cess, leviable under section 135 of the Andhra Pradesh (Telangana Area) District Boards Act, 1955 (Act 1 of 1956) and on the education tax leviable under section 37 of the Andhra Pradesh Education Act, 1982 (Act 1 of 1982). (6) Any resolution of a Gram Panchayat abolishing an existing tax or reducing the rate at which a tax is levied shall not be carried into effect without the previous approval of the Commissioner. 61. House Tax:- (1) The house tax referred to in clause (a) of sub-section (1) of section 60 shall subject to such rules as may be prescribed, be levied on all houses in the village on any one of the following basis, namely:(a) annual rental value, or (b) capital value, or

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such other basis as may be prescribed:

Provided that no house tax shall be levied on poultry sheds and annexes thereto which are essential for running the poultry farms. (2) The house-tax shall, subject to the prior payment of the land revenue, if any, due to the Government in respect of the site of the house be a first charge upon the house and upon the movable property, if any, found within or upon the same and belonging to the person liable to pay such tax. (3) The house-tax shall be levied every year and shall, save as otherwise expressly provided in the rules made under sub-section (1) be paid by the owner within thirty days of the commencement of the year. It shall be levied at such rates as may be fixed by the Gram Panchayat, not being less than the minimum rates and not exceeding the maximum rates, prescribed in regard to the basis of levy adopted by the Gram Panchayat. (4) The Government may make rules providing for– (i) the exemption of special classes of houses from the tax; (ii) the manner of ascertaining the annual or capital value of houses or the categories into which they fall for the purposes of taxation; (iii) the person who shall be liable to pay the tax and the giving of notice of transfer of houses; (iv) the grant of exemptions from the tax on the ground of poverty; (v) the grant of vacancy and other remissions; and (vi) the circumstances in which, and the conditions subject to which houses constructed, reconstructed or demolished, or situated in areas included in or excluded from the village, during any year, shall be liable or cease to be liable to the whole or any portion of the tax. (5) If the occupier of a house pays the house-tax on behalf of the owner thereof, such occupier shall be entitled to recover the same from the owner and may deduct the same from the rent then or thereafter due by him to the owner. 62. Levy of House Tax on a direction by Government:- (1) The Government may, by order published in the Andhra Pradesh Gazette, for special reasons to be specified in such order direct any Gram Panchayat to levy the house-tax referred to in clause (a) of sub-section (1) of section 60 at such rates and with effect from such date not being earlier than the first day of the year immediately following that in which the order is published, as may be specified in the order. Such direction may be issued in respect of all buildings in a Gram Panchayat or in respect of only such buildings belonging to the undertakings owned or controlled by the State Government or Central Government and the buildings belonging to the State Government as may be specified therein. (2) When an order under sub-section (1) has been published, the provisions of this Act relating to house-tax shall apply as if the Gram Panchayat had, on the date of publication of such order, by resolution determined to levy the tax at the rate and with effect from the date specified in the order, and as if no other resolution of the Gram Panchayat under section 60 determining the rate at which and the date from which the house-tax shall be levied, had taken effect. (3) A Gram Panchayat shall not alter the rate at which the house-tax is levied in pursuance of an order under sub-section (1) or abolish such tax except with the previous sanction of the Government. 63. Tax on advertisement:- Every person who erects, exhibits, fixes or retains upon or over any land, building, wall, hoarding or structure any advertisement or who displays any advertisement to public view in any manner whatsoever, in any place whether public or private, shall pay on every

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advertisement which is so erected, exhibited, fixed, retained, or displayed to public view, a tax calculated at such rates and in such manner and subject to such exemptions as the Gram Panchayat may with the approval of the Zilla Parishad by resolution determine: Provided that the rates shall be subject to the maximum and minimum prescribed by the Government in this behalf: Provided further that no tax shall be levied under this section on any advertisement or a notice– (a) of a public meeting; or (b) of an election to any legislative body or to the Gram Panchayat, Mandal Parishad or Zilla Parishad; or (c) of a candidature in respect of such an election: Provided also that no such tax shall be levied on any advertisement which is not a sky-sign and which(a) is exhibited within the window of any building; or (b) relates to the trade or business carried on within the land or building upon or over which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held upon or in the same land or building; or (c) relates to the name of the land or building upon or over which the advertisement is exhibited or to the name of the owner or occupier of such land or building; or (d) relates to the business of any railway administration; or (e) is exhibited within any railway station or upon any wall or other property of a railway administration except any portion of the surface of such wall or property fronting any street. Explanation I: The word "structure" in this section shall include any movable board on wheels used as an advertisement or an advertisement medium. Explanation II: The expression "sky-sign" shall in this section, mean any advertisement, supported on or attached to any post, pole, standard framework or other support wholly or in part upon or over any land, building, wall or structure which, or any part of which shall be visible against the sky from some point in any public place and includes all and every part of any such post, pole, standard framework or other support. The expression "sky-sign" shall also include any balloon, parachute or other similar device employed wholly or in part for the purposes of any advertisement upon or over any land, building or structure or upon or over any public place but shall not include,– (a) any flagstaff, pole, vane or weathercock unless adopted or used wholly or in part for the purpose of any advertisement; or (b) any sign or any board, frame or other contrivance securely fixed to or on the top of the wall or parapet of any building or on the cornice or on blocking course of any wall or to the ridge of a roof: Provided that such board, frame or other contrivance be of one continuous face and not open work, and does not extend in height more than one meter above any part of the wall or parapet or ridges, to, against or on which it is fixed or supported; or (c) any advertisement relating to the name of the land or building upon or over which the advertisement is exhibited or to the name of the owner or occupier of such land or building; or (d) any advertisement relating exclusively to the business of a railway administration and placed wholly upon or over any railway, railway station, yard, platform or station approach belonging to railway administration and so placed that it cannot fall into any street or public place; or (e) any notice of land or building to be sold or let, placed upon such land or building.

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Explanation III: "Public place" shall, for the purpose of this section mean any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not. 64. Prohibition of advertisement without written Permission of Executive Authority:- (1) No advertisement shall be erected, exhibited, fixed or retained upon or over any land, building, wall, boarding or structure within the Gram Panchayat or shall be displayed in any manner whatsoever in any place without the written permission of the Executive Authority. (2) The Executive Authority shall not grant such permission, if– (i) the advertisement contravened any bye-law made by the Gram Panchayat under section 270; (ii) the tax, if any, due in respect of the advertisement has not been paid. (3) Subject to the provisions of sub-section (2) in the case of an advertisement liable to the advertisement tax, the Executive Authority shall grant permission for the period to which the payment of the tax relates and no fees shall be charged in respect of such permission: Provided that the provisions of this section shall not apply to any advertisement relating to the business of a railway administration erected, exhibited, fixed or retained on the premises of such administration. 65. Permission of the Executive Authority to become void in certain cases:- The permission granted under section 64 shall become void in the following cases, namely:(a) if the advertisement contravenes any bye-law made by the Gram Panchayat under section 270; (b) if any addition to the advertisement be made except for the purpose of making it secure under the direction of Engineer of the Panchayat Raj and Rural Development Department or the Mandal Parishad Development Officer; (c) if any material change be made in the advertisement or any part thereof; (d) if the advertisement or any part thereof falls otherwise than through accident; (e) if any addition or alteration be made to or in the building, wall or structure upon or over which the advertisement is erected, exhibited, fixed or retained, if such addition or alteration involves the disturbance of the advertisement, or any part thereof; and (f) if the building, wall or structure upon or over which the advertisement is erected, exhibited, fixed or retained, be demolished or destroyed. 66. Owner or person in occupation to be deemed responsible:- Where any advertisement is erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure in contravention of the provisions of section 63 or section 64 or after the written permission for the erection, exhibition, fixation or retention thereof for any period has expired or becomes void, the owner or person in occupation of such land, building, wall, hoarding or structure shall be deemed to be the person who has erected, exhibited, fixed or retained such advertisement in such contravention, unless he proves that such contravention was committed by a person not in his employment or under his control or was committed without his connivance. 67. Removal of unauthorised advertisements:- If any advertisement is erected, exhibited, fixed or retained contrary to the provisions of section 63, section 66 or after the written permission for the erection, exhibition, fixation or retention thereof for any period has expired or become void, the Executive Authority may, by notice in writing, require the owner or occupier of the land, building, wall, hoarding or structure upon or over, which the same is erected, exhibited, fixed or retained to take

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down or remove such advertisement or may enter any building, land or property and have the advertisement removed, and the costs thereof shall be recoverable in the same manner as property tax. 68. Collection of tax on advertisements:- The Executive Authority may farm out of the collection of any tax on advertisement leviable under section 63 for any period not exceeding one year at a time on such terms and conditions as may be determined by the Gram Panchayat. 69. Duty on transfers of property:- (1) The duty on transfers of property shall be levied by the Government(a) in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899 (Central Act 2 of 1899) as in force for the time being in the State, on every instrument of the description specified below, in so far as it relates to the whole or part of immovable property as the case may be, situated in the area under the jurisdiction of a Gram Panchayat; and (b) at such rate as may be fixed by the Government not exceeding five percentum on the amount specified below against such instrument:

(i)

Description of Instrument (1) Sale of immovable property

(ii)

Exchange of immovable property

(iii)

Gift of immovable property

(iv)

Mortgage with possession of immovable property Lease for a term exceeding one hundred years or in perpetuity of immovable property

(v)

Amount on which duty shall be levied (2) The amount of value of the consideration for the sale as set forth in the instrument or the market value of the property which is the subject matter of the sale, whichever is higher. The market value of the property of greater value which is the subject matter of exchange. The market value of the property which is the subject matter of the gift. The amount secured by the mortgage as setforth in the instrument An amount equal to one-sixth of the whole amount or value of the rents which would be paid or delivered in respect of the first fifty years of the lease, as setforth in the instrument.

(2) On the introduction of the duty aforesaid– (a) section 27 of the Indian Stamp Act, 1899 (Central Act 2 of 1899) shall be read as if it specifically required the particulars to be setforth separately in respect of property situated in the area under the jurisdiction of a Gram Panchayat and in respect of property situated outside such area; and (b) section 64 of the same Act shall be read as if it referred to the Gram Panchayat as well as the Government. (3) The duty levied under this section shall be apportioned among the Gram Panchayat, Mandal Parishad and the Zilla Parishad concerned in such manner as may be prescribed. (4) The Government shall make rules for regulating the collection of the duty and the apportionment thereof among the Gram Panchayat, Mandal Parishad and Zilla Parishad concerned and the deduction of any expenses incurred by the Government in the collection thereof. (5) The Government may by order exempt, subject to such conditions and terms as may be specified therein, any instrument or class of instruments from the levy of duty under this section. 70. Vehicle tax: The vehicle tax referred to in clause (i) of sub-section (3) of section 60 shall, subject to such rules as may be made in this behalf including rules relating to the exemptions and restrictions, be levied every year on all vehicles kept or used within the village at such rates as may be fixed by the Gram Panchayat not being less than the minimum rates and not exceeding the maximum rates prescribed.

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Explanation:- In this section, "vehicle" means a conveyance suitable for use on roads or rails and includes any kind of carriage, cart, wagon, wheel barrows, truck, bicycle, tricycle and rickshaw, but does not include a motor vehicle as defined in the Motor Vehicles Act, 1988 (Central Act 59 of 1988). 71. Special tax leviable by a Gram Panchayat:- Subject to such rules as may be prescribed, a Gram Panchayat shall levy a special tax on houses at such rates as may be prescribed, to provide for expenses connected with the construction, maintenance, repair, extension and improvement of water or drainage works or the lighting of the public streets and public places, and other similar works. 72. Composition of tax payable by owner of a factory or a contiguous group of buildings:Subject to such conditions and restrictions as may be prescribed, a Gram Panchayat may, on application by the owner of a factory or a contiguous group of buildings, permit him to compound all or any of the taxes payable by him under this Act, by paying in lieu thereof such lumpsum amount as may be agreed upon between him and the Gram Panchayat. Where there is no such agreement the matter may be referred to the Government in the manner prescribed and the Government shall, after giving to the Gram Panchayat and the owner of the factory or a contiguous group of buildings concerned an opportunity of making a representation, decide the lumpsum amount payable by the owner of the factory or a contiguous group of buildings under this section. The decision of the Government in this regard shall be final. 73. Power to write-off irrecoverable amounts:- Subject to such restrictions and control as may be prescribed, a Gram Panchayat may write off any tax, fee or other amount whatsoever due to it, whether under a contract or otherwise, or any sum payable in connection therewith, if in its opinion such tax, fee, amount or sum is irrecoverable: Provided that where the District Collector or any of his subordinates is responsible for the collection of any tax, fee or other amount due to a Gram Panchayat, the power to write off such tax, fee or amount or any sum payable in connection therewith on the ground of its being irrecoverable, shall be exercised by the Commissioner of Land Revenue or subject to his control by the District Collector or any officer authorised by him. 74. Gram Panchayat Fund:- (1) All moneys received by the Gram Panchayat shall constitute a fund called the "Gram Panchayat Fund", and shall be applied and disposed of in accordance with the provisions of this Act and other laws: Provided that the Gram Panchayat shall credit, subject to such rules as may be prescribed, the proceeds of any tax or fee levied under this Act, to a special fund earmarked for the purpose of financing any specific public improvement. A separate account shall be kept of the receipts into and the expenditure from such special fund. (2) Subject to the provisions of sub-section (1), the receipts which shall be credited to the Gram Panchayat Fund shall include– (i) the house-tax and any other tax or any cess or fee levied under this Act; (ii) the proceeds of the duty collected under sub-section (4) of section 60; (iii) the proceeds of the duty on transfers of property levied under section 69 which are paid to the Gram Panchayat; 45 [* * *]

45

Omitted by Section 4(i) of Act. no. 37 of 2001.

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46

[(iv) any payment made to the Gram Panchayat by a market committee in pursuance of sub-section (3) of section 11 of the Andhra Pradesh (Andhra Area) Commercial Crops Markets Act, 1933 (Act XX of 1933), or any other law similar thereto for the time being in force; (v) the taxes and tolls levied in the village under sections 117 and 118 of the Andhra Pradesh (Andhra Area) Public Health Act, 1939 (Act III of 1939); or under the corresponding provision of any other law similar thereto for the time being in force in the State; (vi) any payment made to the Gram Panchayat by the Government under section 13 of the Andhra Pradesh Entertainments Tax Act, 1939 (Act X of 1939); (vii) the amount contributed by the Mandal Parishad to the Gram Panchayat in respect of markets in the village classified as Mandal Parishad markets or paid by the Mandal Parishads to the Gram Panchayat towards the latter's share of the income derived from such markets as per the apportionment made under section 112 and the amount paid by a Zilla Parishad or any of the joint committees referred to in section 57 to the Gram Panchayat towards the latter's share of the income derived from a ferry under the management of the Zilla Parishad or joint committee, as the case may be, as per the apportionment made under the said section; (viii) fees for the temporary occupation of village sites, roads and other similar public places or parts thereof in the village; (ix) fees levied by the Gram Panchayat in pursuance of any provision in this Act, or any rule or other made thereunder; (x) income from endowments and trusts under the management of the Gram Panchayat; (xi) the net assessment on service inams which are resumed by Government after the commencement of this Act; (xii) income derived from village fisheries, vested in the Gram Panchayat including the weeds and reeds; (xiii) income derived from ferries under the management of the Gram Panchayat; (xiv) unclaimed deposits and other forfeitures; (xv) the seigniorage fees collected by the Government every year from persons permitted to quarry in the village for materials including minor minerals other than major minerals; (xvi) all income derived from porambokes which vest in the Gram Panchayat or the user of which is regulated by the Gram Panchayat and also the penalty and penal assessment, if any, levied in respect of unauthorised occupation thereof under any law for the time being in force; (xvii) all income derived from trees standing on porambokes although the user of the porambokes is not vested in the Gram Panchayat; (xviii) income from leases of Government property obtained by the Gram Panchayat; (xix) a sum equivalent to one-tenth of the gross income derived by the Government every year from fines imposed by Magistrates in respect of offences committed in the village under this Act, or any rule or bye-law made thereunder or any other provision of law which is prescribed in this behalf; (xx) grants received from the Government, the Zilla Parishad or Mandal Parishad; (xxi) income from investments of amounts taken from the Gram Panchayat Fund; (xxii) all other receipts accruing from the sources of Gram Panchayat revenue specified in this Act; and (xxiii) all sums other than those enumerated above which arise out of, or are received in aid of, or for expenditure on any institutions or services maintained or financed from the Gram Panchayat Fund or managed by the Gram Panchayat.]

46

Renumbered by Section 4(ii) of Ibid.

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(3) All moneys received by the Gram Panchayat shall be lodged in the nearest Government treasury. 47 [Provided that the amounts received as funds under the Jawahar Rozgar Yojana, Employment Assurance Scheme or other Wage Employment Schemes shall be lodged in nearby Nationalised Banks or Co-operative Banks or Post Offices in such manner as may be prescribed.] 48 [(4) All orders or cheques against the Gram Panchayat Fund shall be signed by such authority as may be prescribed.] 75. Expenditure from Gram Panchayat Fund:- (1) The purpose to which the Gram Panchayat Fund may be applied include all objects expressly declared obligatory or discretionary by this Act or any rules made thereunder or by any other laws or rules and the fund shall be applicable thereto within the village subject to such rules or special orders as the Government may prescribe or issue and shall, subject as aforesaid, be applicable to such purposes outside the village if the expenditure is authorised by this Act or specially sanctioned by the Commissioner. (2) (a) It shall be the duty of every Gram Panchayat to provide for the payment of – (i) any amounts falling due on any loans contracted by it; (ii) the salaries and allowances and the pensions, pensionary contributions and provident fund contributions of its officers and servants; (iii) sums due under any decree or order of a Court; (iv) contributions, if any, levied by the Mandal Parishad subject to such limits as may be specified by Commissioner; and (v) any other expenses rendered obligatory by or under this Act or any other law. (3) A Gram Panchayat may, with the sanction of the Government, contribute to any fund for the defence of India. (4) A Gram Panchayat may, with the sanction of the Commissioner, also – (i) contribute towards the expenses of any public exhibition, ceremony or entertainment in the village; (ii) contribute to any charitable fund, or to the funds of any institution for the relief of the poor or the treatment of diseased or infirmity or the reception of diseased or infirm persons or the investigation of the causes of disease; (iii) contribute to the funds of any institution established for promoting community development or the aims of Panchayat Raj; and (iv) defray any other extraordinary charges. 76. Election expenses to be borne by the Government:- The cost of the preparation and revision of the electoral roll, the cost of the election expenses, including the conduct of elections to the Gram Panchayat and the cost of maintenance of election establishment employed in connection therewith, shall be borne by the Government. 77. Preparation and sanction of budget:- (1) The Executive Authority shall in each year frame before the prescribed date and place before the Gram Panchayat, the budget showing the probable receipts and expenditure during the following year and the Gram Panchayat shall, within one month of the date on which the budget is placed before it, sanction the budget with such modifications, if any, as it thinks fit: 47 48

Added by Section 2 of Act No. 16 of 1998. Subs. by Act No. 17 of 1996.

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Provided that if for any reasons, the budget is not sanctioned by the Gram Panchayat under this sub-section before the expiration of the period of one month aforesaid, the Executive Authority shall submit the budget to the Divisional Panchayat Officer, who shall sanction it with such modifications, if any, as he thinks fit. (2) Where the budget is sanctioned by the Gram Panchayat it shall be forwarded by the Executive Authority on or before such date as may be prescribed to the Divisional Panchayat Officer. The Divisional Panchayat Officer shall make such suggestions or modifications as he may deem fit within one month from the date of its receipt and return it to the Gram Panchayat which shall consider the same and approve the budget with or without modifications, at a special meeting convened for the purpose; and the budget so approved at such meeting shall be final. (3) If in the course of a year a Gram Panchayat finds it necessary to alter figures shown in the budget with regard to its receipts or to the distribution of the amounts to be expended on the different services undertaken by it, a supplemental or revised budget may be framed, sanctioned, submitted and modified in the manner provided in sub-sections (1) and (2). 78. Contribution to expenditure by other local authorities:- If the expenditure incurred by the Government or by any other Gram Panchayat or the Mandal Parishad or Zilla Parishad or by any other local authority in the State for any purpose authorised by or under this Act is such as to benefit the inhabitants of the village, the Gram Panchayat may, with the sanction of the Commissioner, and shall, if so directed by him, make a contribution towards such expenditure. 79. Recovery of loans and advances made by the Government:- (1) Notwithstanding anything in the Local Authorities Loan Act, 1914 (Central Act 9 of 1914), or any other law similar thereto for the time being in force, the Government may– (a) by order direct any person having custody of the Gram Panchayat Fund to pay to them in priority to any other charges against such fund, except charges for the service of authorised loans, any loan or advance made by them to the Gram Panchayat for any purpose to which its funds may be applied under this Act; (b) recover any such loan or advance by suit. (2) The person to whom the order referred to in clause (a) of sub-section (1) is addressed shall be bound to comply with such other.

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Chapter IV PUBLIC SAFETY, CONVENIENCE AND HEALTH 80. Vesting of water works in Gram Panchayats:- (1) All public water-courses, springs, reservoirs, tanks, cisterns, fountains, wells, stand-pipes and other water works (including those used by the public to such an extent as to give a prescriptive right to their use) whether existing at the commencement of this Act or afterwards made, laid or erected and whether made, laid or erected at the cost of the Gram Panchayat or otherwise for the use or benefit of the public, and also any adjacent land, not being private property, appertaining thereto shall vest in the Gram Panchayat and be subject to its control: Provided that nothing in this sub-section shall apply to any work which is, or is connected with, a work of irrigation or to any adjacent land appertaining to any such work. (2) Subject to such restrictions and control as may be prescribed, the Gram Panchayat shall have the fishery rights in any water work vested in it under sub-section (1), the right to supply water from any such work for raising seed beds on payment of the prescribed fee, and the right to use the adjacent land appertaining thereto for planting of trees and enjoying the usufruct thereof or for like purpose. (3) The Government may, by notification, define or limit such control or may, assume the administration of any public source of water supply and public land adjacent and appertaining thereto after consulting, the Gram Panchayat and giving due regard to its objections, if any. 81. Setting apart of public tanks etc., for certain purposes:- (1) (a) The Gram Panchayat may, in the interests of Public Health, regulate or prohibit the washing of animals or of clothes or other articles or fishing in any public spring, tank or well or in any public water course or part thereof and may set apart any such place for drinking or for bathing or for washing animals or clothes or for any other specified purpose. (b) The powers conferred by clause (a) may, in the case of any private spring, tank, well, or water course, be exercised by the Gram Panchayat, with the consent of the owner of such place. (c) The Gram Panchayat may, in the interests of public health, regulate or prohibit the washing of animals or of clothes or of other articles, in any private spring, tank, well or water-course from which the public have a right to take water for drinking purposes. (2) The Executive Authority on receipt of a certificate from any health or medical officer in the service of the Government, the Gram Panchayat or the Mandal Parishad or Zilla Parishad stating that the water in any well, tank, spring or other sources of water supply to which the public have access in the village, is likely to endanger or cause the spread of any dangerous disease, shall, by public notice, prohibit the use of such water, such notice shall be served by affixing a copy of it near the source of water-supply and by beat of drum stating the number of days during which such prohibition shall last. The Executive Authority may modify the notice or extend the period of operation thereof without the production of a further certificate. 82. Prohibition against using places so set apart for purposes other than those Notified:- No person shall(a) bathe in or defile, the water in any place set apart for drinking or cooking purposes either by a Gram Panchayat or in the case of private property, by the owner thereof; or (b) deposit any offensive or deleterious matter in the bed of any place set apart as aforesaid when such bed is dry; or (c) wash clothing in any place set apart as aforesaid; or

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(d) wash any animal or any cooking utensil or wool, skins, or other foul or offensive substance or deposit any offensive or deleterious matter in any other place set apart as aforesaid or set apart for bathing or for washing clothes. (e) allow the water from a sink, sewer, drain engine or boiler, or any other offensive matter belonging to him or flowing from any building or land belonging to or occupied by him, to pass into any place set apart as aforesaid or set apart for bathing or for washing clothes. 83. Contribution from persons having control over places of pilgrimage etc.:- Where a mosque, temple, mutt or any place of religious worship or instruction or any place which is used for holding fairs, or festivals or for other like purposes, is situated within the limits of a village or in the neighbourhood thereof and attracts either throughout the year or on particular occasions a large number of persons, any special arrangements necessary for public health, safety or convenience, whether permanent or temporary, shall be made by the Gram Panchayat but the Government may, after consulting the trustee or other person having control over such place, require him to make such recurring or non-recurring contribution to the funds of the Gram Panchayat as they may determine. 84. Cleaning of Private Latrines:- The Executive Authority of a Gram Panchayat may contract with the owner or occupier of any premises to remove rubbish or filth or any particular kind of rubbish or filth, from such premises or any place belonging thereto, on such terms as to times and periods of removal and other matters as may deem fit and suitable to the Executive Authority and on payment of fees at such rate calculated to cover the cost of the service as the Gram Panchayat may fix. 85. Registration of burial and burning grounds:- (1) Every owner or person having control of any place used at the commencement of this Act as a place for burying, burning or otherwise disposing of the dead, shall, if such place be not already registered under any law applicable thereto, apply to the Gram Panchayat to have such place registered under this Act. (2) If it appears to such Gram Panchayat that there is no owner or person having the control of such place, the Gram Panchayat shall assume such control and register such place or may close it. 86. Licensing of places for disposal of the dead:- (1) No new place for the disposal of the dead whether private or public, shall be opened, formed, constructed or used, unless a licence is obtained from the Gram Panchayat on application. (2) Such application for a licence shall be accompanied by a plan of the place to be licensed showing the locality, boundary and extent thereof, the name of the owner or person or community interested therein, the system of management and such further particulars as the Gram Panchayat may require. (3) The Gram Panchayat to which an application is made, may, in consultation with the District Health Officer – (a) grant or refuse a licence, or (b) postpone the grant of licence, until objections, if any, to the site, considered reasonable by the Gram Panchayat have been removed or any particulars called for by it have been furnished. (4) The District Collector may cancel or modify any order passed by Gram Panchayat under sub-section (3). 87. Provision of burning and burial grounds:- A Gram Panchayat may, and shall, if no sufficient provision exists, provide at the cost of the Gram Panchayat Fund, places to be used as burial or burning grounds or crematoria, and may charge rents and fees for the use thereof.

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88. A book to be kept of places registered, licensed or provided:- (1) A book shall be kept at the office of every Gram Panchayat in which the places registered, licensed or provided under section 85, section 86, section 87 and all such places registered, licensed or provided before the commencement of this Act shall be recorded. (2) A notice in English and in the chief language of the village that such place has been registered, licensed or provided as aforesaid, shall be affixed at or near the entrance to such place conspicuously. 89. Prohibition against burying or burning in unauthorised places:- No person shall bury, burn or otherwise dispose of or cause of suffer to be buried, burnt or otherwise disposed or any corpse in any place within two hundred metres of a dwelling place or any source of drinking water supply other than a place registered, licensed or provided as aforesaid. 90. Notices to be given to Gram Panchayat of burials etc:- The person having control of a place for disposing of the dead shall give information of every burial, burning or other disposal, of a corpse at such place to any person appointed by the Gram Panchayat. 91. Prohibition against use of burial and burning grounds dangerous to health or overcrowded with graves:- (1) If a Gram Panchayat is satisfied,– (a) that any registered or licensed place for the disposal of the dead is in such a state or a situation as to be or to be likely to become, dangerous to the health of persons living in the neighbourhood thereof; or (b) that any burial ground is overcrowded with graves, and if in the case of a public burial or burning ground or other place as aforesaid, another convenient place duly authorised for the disposal of the dead exists or has been provided for the persons who would ordinarily make use of such place, it may, with the approval of Commissioner, give notice that it shall not be lawful, after a period of not less than two months to be specified in such notice, to bury, burn or otherwise dispose of, any corpse at such place. (2) Every notice given under sub-section (1) shall be published by affixture to the notice board in the office of the Gram Panchayat and in the village by beat of drum. (3) No person shall, in contravention of any notice under this section and after the expiration of the period specified in such notice, bury, burn or otherwise dispose of, or cause or permit to be buried, burnt or otherwise disposed of, any corpse at such place. 92. Power to destroy stray pigs or dogs:- (1) A Gram Panchayat may, and if so required by the District Magistrate shall, give public notice that unlicensed pigs, dogs straying within the specified limits will be destroyed. (2) When such notice is given, any person may destroy, in any manner not inconsistent with the terms of the notice, any unlicensed pig or dog, as the case may be, found straying within such limits. 93. Prohibition against allowing outflow of filth:- No owner or occupier of any premises shall allow the water from any sink, drain, latrine, or stable or any other filth, to flow out of such premises to any portion of a public road except a drain or cesspool or to flow out of such premises in such a manner as to cause nuisance by the soakage of the said water or filth into the walls or ground at the side of a drain forming a portion of such public road.

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94. Power as to sanitation and conservancy:- (1) If it appears necessary to improve the sanitary conditions of any area within the village, the Executive Authority may, by written notice, require owner or occupier of any of the lands, and houses in area, within a reasonable period to be specified in the notice, – (a) to remove a hut or privy either wholly or in part; (b) to construct in a building, private drains therefor or to alter or to remove, any private drain thereof; (c) to cause any land or building to be cleansed to the satisfaction of the Executive Authority; (d) where any land or building contains a well, pool, ditch, pond, tank or any drain, filth or stagnant water which is injurious to health or offensive to the neighbourhood or is otherwise a source of nuisance, to cause the same to be filled up, cleansed or deepened or to cause the water to be removed therefrom or drained off or to take such other action as may be deemed necessary by the Executive Authority; (e) to cause any land overgrown with vegetation, under growth, prickly-pear or jungle which is in any manner injurious to health or dangerous to the public or offensive to the neighbourhood or an impediment to efficient ventilation, to be cleared of the vegetation, undergrowth, prickly pear or jungle; (f) to convert any step well into a draw-well: Provided that the Executive Authority shall hear and decide objections, if any, raised by the person on whom a notice is so served. (2) If any work required under sub-section (1) is not executed within the period specified in the notice the Executive Authority may himself cause such work to be carried out, and may recover the cost of such work or part thereof from the owner or occupier referred to in sub-section (1) in the manner hereinafter provided. 95. Prohibition against working of quarry near public roads:- (1) No person shall work a quarry in, or remove stones, earth or other material from, any place within twenty metres of a public road or of other immovable property vesting in or belonging to the Gram Panchayat except under a licence issued by a Gram Panchayat. The Gram Panchayat may either grant or refuse to grant a licence and in the later case the reasons for refusal shall be communicated to the person concerned. (2) If, in the opinion of the Gram Panchayat, the working of any quarry or the removal of stone, earth or other material from any place is dangerous to any person residing in, or having legal access to, the neighbourhood thereof or creates or is likely to create a nuisance, the Gram Panchayat may require the owner or person having control of the said quarry or place to discontinue working the same or to discontinue removing stone, earth or other material from such place or to take such action in respect of such quarry or place as it shall deem necessary for the purpose of preventing danger or of abating the nuisance arising or likely to arise therefrom. 96. Prohibition against destruction in or over public roads:- No person shall build any wall or erect any fence or other obstruction or projection or make any encroachment in or over any public road except as hereinafter provided. 97. Prohibition against and regulation of door, gate, bar or ground floor window opening outwards:- (1) No door, gate, bar or ground floor window shall, without a licence from the Executive Authority, be hung or placed so as to open outwards upon any public road vested in the Gram Panchayat.

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(2) The Executive Authority may, by notice, require the owner of such door, gate, bar or ground floor window to alter it, so that no part thereof when open shall project over the public road. 98. Removal of encroachments:- (1) The Executive Authority may, by notice, require the owner or occupier of any building to remove or alter any projection, encroachment or obstruction, other than a door, gate, bar or ground floor window, situated against or in front of such building and in or over any public road vested in such Gram Panchayat. (2) If the owner or the occupier of the building proves that any such projection, encroachment or obstruction has existed for a period sufficient under the law of limitation to give any person a prescriptive title thereto or that it was erected or made with the permission or licence of any local authority duly empowered in that behalf, and that the period, if any, for which the permission or licence is valid has not expired, the Gram Panchayat shall make reasonable compensation to every person who suffers damages by the removal or alteration of the same. 99. Power to allow certain projections and erections:- (1) The Executive Authority may, with the approval of the Gram Panchayat, grant a licence, subject to such conditions and restrictions as he may think fit to the owner or occupier of any building to put up verandahs, balconies, sunshades, weather frames and the like, to project over a public road vested in such Gram Panchayat; or to construct any step or drain covering necessary for access to the building. (2) The Executive Authority may grant a licence, subject to such conditions and restrictions as he may think fit for the temporary erection of pandal and other structures in a public road vested in such Gram Panchayat; or in any other public place the control of which is vested in such Gram Panchayat. (3) The Executive Authority shall have power with the approval of the Gram Panchayat, to lease the roadsides vested in such Gram Panchayat for occupation on such terms and conditions and for such period as the Gram Panchayat may fix. (4) But neither a licence under sub-section (1) nor a lease under sub-section (3) shall be granted if the projection, construction or occupation, as the case may be, is likely to be injurious to health or cause public inconvenience or otherwise materially interfere with the use of the road as such. (5) The Government may, by notification, restrict and place under such control as they may think fit the exercise, by any Gram Panchayat of the powers under sub-sections (1) and (3). (6) On the expiry of any period for which a licence has been granted under this section the Executive Authority may without notice, cause any projection or construction put up under subsection (2) to be removed, and the cost of so doing shall be recoverable, in the manner hereinafter provided from the person to whom the licence was granted. 100. Prohibition of building on sewer, drain etc., without permission:- (1) No building shall be erected without the written permission of the Executive Authority or any person authorised by such Executive Authority, over any sewer or drain or any part of sewer or drain or upon any ground which has been covered, raised or levelled wholly or in part by road sweepings or other rubbish. (2) The Executive Authority or the person authorised by him as aforesaid may, by notice, require any person who has erected a building without such permission or in a manner contrary to or inconsistent with the terms of such permission to demolish the same. 101. Prohibition against making holes and causing obstruction in public roads:- (1) No person shall make a hole or cause any obstruction in any public road vested in a Gram Panchayat except with the previous permission of the Executive Authority and subject to such conditions as the Executive Authority may impose.

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(2) When such permission is granted such person shall, at his own expense, cause such hole or obstruction to be sufficiently fenced and enclosed until the hole or obstruction to be sufficiently lighted during the night. (3) If any person contravenes the provisions of this section, the Executive Authority shall fill up the hole or remove the obstruction or cause the hole or obstruction to be lighted, as the case may be, and may recover the cost of so doing from such person. 102. Prohibition against planting or felling trees on public roads etc., without permission:- (1) No person shall plant any tree on any public road or other property vesting in or belonging to a Gram Panchayat, except with the previous permission of the Executive Authority and on such conditions as the Executive Authority may impose. (2) No person shall fell, remove, destroy lop or strip bark, leaves or fruits from or otherwise damage any tree vesting in or belonging to a Gram Panchayat and growing on any such public road or property except with the previous permission or order of the Executive Authority and on such conditions as the Executive Authority may impose. 103. Recovery of penalty and compensation for unauthorised occupation of land:- (1) If any person, without the previous sanction of the Gram Panchayat, occupies any land which is set apart for any public purpose and is vested in or belongs to it, he shall be bound to pay in respect of such occupation such sum as may be demanded by the Gram Panchayat by way of penalty; and any such sum may be recovered in the manner hereinafter provided. (2) The Executive Authority may, by notice require any person on whom a penalty is or may be imposed under sub-section (1) to vacate such land and to remove any building or other construction or anything deposited on it. (3) If any damage to the property of the Gram Panchayat has been caused by any person occupying any land for which he is liable to pay penalty under sub-section (1), he shall be liable to pay compensation to the Gram Panchayat for such damage in addition to and irrespective of any penalty that may be imposed on or recovered from him, and the amount of such compensation, shall in case of dispute, be determined and recovered in the manner hereinafter provided. 104. Public Markets:- (1) The Gram Panchayat may provide places for use as public market and, with the sanction of the Commissioner, close any such market or part thereof. (2) Subject to such rules as may be prescribed the Gram Panchayat may levy one or more of the following fees in any public market at such rates, not exceeding the maximum rates, if any prescribed in this behalf, as the Gram Panchayat may think fit– (a) fees for the use of, or for the right to expose goods for sale in such market; (b) fees for the use of shops, stalls, pens or stands in such markets; (c) fees on vehicles including motor vehicles as defined in the Motor Vehicles Act, 1988 (Central Act 59 of 1988) or pack-animals bringing or persons carrying, any goods for sale in such markets; (d) fees on animals brought for sale into or sold in such market; (e) licence fees on brokers, commission agents, weighmen and measures practising their calling in such market. 105. Licence for private markets:- (1) No person shall open a new private market or continue to keep open a private market unless he obtains from the Gram Panchayat a licence to do so. (2) Application for such licence shall be made by the owner of the place in respect of which the licence is sought not less than thirty and not more than ninety days before such place is

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opened as a market, or the commencement of the year for which the licence is sought to be renewed, as the case may be. (3) The Gram Panchayat shall, as regards private markets already lawfully established and may, as regards new private markets, grant the licence applied for, subject to such regulations as to supervision and inspection and to such conditions as to sanitation, drainage, water supply, width of paths and ways, weights and measures to be used, and rents and fees to be charged in such market, as the Gram Panchayat may think proper; or the Gram Panchayat may, for reasons to be recorded in writing, refuse to grant any such licence for any new private market. The Gram Panchayat may, however, at any time for breach of any condition of the licence suspend or cancel the licence granted under this section. The Gram Panchayat may also modify any of the conditions of the licence to take effect from a specified date. (4) When a licence is granted, refused, suspended, cancelled or modified under this section, the Gram Panchayat shall cause a notice of such grant, refusal, suspension, cancellation or modification in the chief language of the village to be pasted conspicuously at or near the entrance to the place in respect of which the licence was sought or had been obtained. (5) Every licence granted under this section shall expire at the end of the year. (6) Any person aggrieved by an order of the Gram Panchayat under sub-section (3) may appeal against such order to the Commissioner who may, if he thinks fit, suspend the execution of the order, pending the disposal of the appeal. 106. Fee for licence:- When a licence granted under section 104 permits the levy of any fees of the nature specified in sub-section (2) of Section 104 a fee not exceeding fifteen per cent of gross income of the owner from the market in the preceding year, shall be charged by the Gram Panchayat for such licence. 107. Power exercisable by Executive Authority in respect of public markets:- The Executive Authority may expel from any public market any person who or whose servant has been convicted of disobeying any bye-laws for the time being in force in such market, and may prevent such persons from further carrying on by himself or his servants or agents, any trade or business in such market, or occupying any shop, stall or other place therein and may determine any lease or tenure which such person may possess in any shop, stall or place. 108. Powers exercisable by Gram Panchayat in respect of private markets:- (1) The Gram Panchayat may by notice, require the owner, occupier, or farmer of any private market to, – (a) construct approaches, entrances, passages, gates, drains and cess-pits for such market and provide it with latrines of such description and in such position and number as the Gram Panchayat may think fit; (b) roof and pave the whole or any portion of it or pave any portion of the floor with such material as will in the opinion of the Gram Panchayat secure imperviousness and ready cleansing; (c) ventilate it properly and provide it with an adequate supply of water; (d) provide passages of sufficient width between the stalls and make such alterations in the stalls, passages, shops, doors or other parts of the market as the Gram Panchayat may direct; (e) keep it in a cleanly and proper state, remove all filth and refuse therefrom and dispose of them at such place and in such manner as the Gram Panchayat may direct; and (f) make such other sanitary arrangements as the Gram Panchayat may consider necessary. (2) If any person, after notice given to him in that behalf by the Gram Panchayat, fails within the period and in the manner laid down in the said notice, to carry out any of the works

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specified in sub-section (1), the Gram Panchayat may suspend the licence of the said person, or may refuse to grant him a licence until such work is completed. (3) It shall not be lawful for any person to keep open any private market during such suspension or until the licence is renewed. (4) No owner, occupier, agent or manager in-charge of any private market, or of any shop, stall, shed or other place therein, shall keep the same so that it is a nuisance, or fail to cause anything that is a nuisance in such market, shop, stall, shed or other place to be at once removed to a place to be specified by the Gram Panchayat. 109. Decisions of disputes as to whether places are market:- If any question arises as to whether any place is a market or not, the Gram Panchayat shall make a reference thereon to the Government and their decision shall be final. 110. Prohibition of sale in unlicensed private market etc.:- No person shall sell or expose for sale any animal or article, (a) in any unlicensed private market; or (b) in any public or licensed private market without the permission of the Executive Authority or licensee, as the case may be, or of any person authorised by him. 111. Prohibition against sale in or upon public roads:- The Executive Authority may, with the sanction of the Gram Panchayat, prohibit by public notice or licence or regulate the sale or exposure for sale of any animals or articles in or upon any public road or place or part thereof. 112. Classification of markets:- (1) The Government shall have power to classify public and private markets situated in a village as Mandal Parishad markets and Gram Panchayat markets and provide for the control of any such market and for the apportionment of the income derived therefrom between the Zilla Parishad, Mandal Parishad and the Gram Panchayat or the payment of a contribution in respect thereof to the Gram Panchayat or the Zilla Parishad or Mandal Parishad as the case may be. (2) In the case of markets classified as Mandal Parishad markets, the Gram Panchayat and its Executive Authority shall not exercise any of the powers conferred on them by sections 104 to 111 or both inclusive. 113. Vesting of places used as markets situated in estates taken over by the Government:- With effect on and from the date of deposit of final compensation under sub-section (1) of section 41 of the Andhra Pradesh (Andhra Area) Estates (Abolition and Conversion into Ryotwari) Act, 1948 (Act XXIV of 1948) in respect of any estates any place used as a market in such estates, which was vested in the Government under the provisions of the said Act, shall stand transferred to, and vest in, the Gram Panchayat in whose limits such place is situated and, thereupon, the Gram Panchayat shall provide such place for use as a public market. 114. Classification of public roads, fairs and festivals etc:- The classification of public roads, fairs and festivals, choultries, dispensaries and libraries in any Gram Panchayat area as appertaining to the Zilla Parishad, Mandal Parishad or the Gram Panchayat shall be made by the Commissioner in such manner as may be prescribed. 115. Public landing places, cart-stands etc:- Subject to such rules as may be prescribed, the Gram Panchayat may : –

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(a) provide public landing places, halting places, and cart stands (which last expression includes stands for animals and vehicles of any description including motor vehicles) and levy fees for their use: Provided that it shall be open to the Gram Panchayat to permit any person to compound such fees by paying in lieu thereof such lumpsum amount as may be fixed by the Gram Panchayat; (b) where any such place or stand has been provided, prohibit the use for the same purpose by any person within such distance thereof, of any public places or the sides of any public road, as the Gram Panchayat may, subject to the control of the Commissioner specify. 116. Private cart-stands:- No person shall open a new private cart-stand and or continue to keep open a private cart-stand unless he obtains from the Gram Panchayat a licence to do so. Such licence shall be renewed every year. (2) The Gram Panchayat shall as regards private cart-stands already lawfully established, and may, at its discretion, as regards new private cart-stands, grant the licence applied for subject to such conditions as the Gram Panchayat may think fit as to supervision and inspection, conservancy and such other matters as may be prescribed, or the Gram Panchayat may refuse to grant such licence, for any new cart-stand. (3) The Gram Panchayat may modify conditions of the licence to take effect from a specified date. (4) The Gram Panchayat may at any time suspend or cancel any licence granted under sub-section (2) for breach of the conditions thereof. (5) The Gram Panchayat may levy on every grant or renewal of a licence under this section, a fee not exceeding two hundred rupees. 117. Public slaughter houses:- Subject to such rules as may be prescribed, every Gram Panchayat may provide places for use as public slaughter houses and charge rents and fees for their use. 118. Prohibition or regulation of the use of places for slaughtering animals and licensing of slaughterers:- The Government shall have power to make rules for– (a) prohibiting or regulating the slaughter, cutting up or skinning of animals specified in the rules, on all occasions not excepted therein, at places other than public slaughter-houses; (b) licensing persons to slaughter animals specified in the rules for purposes of sale to the public; and (c) the inspection of slaughter-houses and of the meat therein and the payment of remuneration to the officers employed for such inspection. 119. Purposes for which places may not be used without licence:- The Gram Panchayat may notify in the prescribed manner, that no place within the limits of the village shall be used for any one or more of the purposes specified in the rules made in this behalf without a licence issued by the Executive Authority in the prescribed manner and except in accordance with the conditions specified in such licence: Provided that no such notification shall take effect until the expiry of a period of sixty days from the date of publication. 120. Applications to be made for construction, establishment, or installation of factory, workshop or work-place in which steam or other power is to be employed:- (1) Every person intending, – (a) to construct or establish any factory, workshop or work-place in which it is proposed to employ-steam power, water power or other mechanical power or electrical power; or

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(b) to install in any premises any machinery or manufacturing plant driven by steam, water or other powers as aforesaid, not being machinery or manufacturing plant exempted by rules made in this behalf, shall, before beginning such construction, establishment or installation, obtain the permission of the Gram Panchayat in the prescribed manner for undertaking the intended work. (2) The application to be made under sub-section (1) shall conform to such rules and shall be processed in such manner and in consultation and approval of such authorities and subject to such conditions as may be prescribed. 121. Construction of buildings:- No piece of land shall be used as a site for the construction of a building and no building shall be constructed or reconstructed and no addition or alteration shall be made to an existing building without the permission of the Gram Panchayat granted in accordance with the provisions of any rules or bye-laws made under this Act, relating to the use of building sites or the construction or reconstruction of buildings: Provided that the Government may, in respect of all Gram Panchayats or with the consent of the Gram Panchayat, in respect of any particular Gram Panchayat or portion thereof, exempt all buildings or any class of buildings from all or any of the provisions of any rules or bye-laws made under this Act. 122. Power of Gram Panchayat to issue directions for abatement of nuisance caused by steam or other power:- (1) If in any factory, workshop or workplace in which steam power, water power or other mechanical power or electrical power is used, nuisance is caused by reason of the particular kind of fuel employed or by reason of the noise or vibration created, the Gram Panchayat may issue such directions as it thinks fit for the abatement of nuisance within a reasonable time to be specified for the purpose. (2) If there has been willful default in carrying out such directions or if abatement is found impracticable, the Gram Panchayat may,– (a) prohibit the use of the particular kind of fuel employed, or (b) restrict the noise or vibration by prohibiting the working of the factory, workshop or work-place between the hours of 9.30 p.m. and 5.30. a.m. 123. Form of licences, notices, permissions:- All licences, notices, permissions, given, issued or granted, as the case may be, under the provisions of this Act, shall be in accordance with such rules as may be made in this behalf. 124. Power of Government to pass order to give directions:- The Government may, either generally or in any particular case, make such order or give such directions as they may deem fit, in respect of any action taken or omitted to be taken under section 119, section 120 or section 122. 125. Modification of the Andhra Pradesh (Andhra Area) Places of Public Resort Act, 1888:Notwithstanding anything in the Andhra Pradesh (Andhra Area) Places of Public Resort Act, 1888 or any other Act similar thereto for the time being in force in the State, when the Government extend that Act to any village or part thereof – (a) the authority to whom application shall be made for a licence under that Act in respect of any place or building to be used exclusively for purposes other than the holding of cinematograph exhibitions and who may grant or refuse such licence shall be the Executive Authority, and (b) the appeal from the order of the Executive Authority granting, refusing, revoking or suspending a licence under that Act shall lie to the Gram Panchayat.

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Chapter V GENERAL AND MISCELLANEOUS (GRAM PANCHAYATS) 126. Power to name streets and number buildings:- (1) The Gram Panchayat may, in the manner prescribed, cause a name to be given to any street and shall cause a number to be affixed to the side or outer door of any building or to some place at the entrance of such building and in a like manner, may, from time to time, cause such name or number to be altered. (2) No person shall, without lawful authority, destroy, pull down, or deface any such name or number or any number assigned to any building in any such area. (3) When a number has been affixed, the owner of the building shall be bound to maintain such number and to replace it if removed or defaced, and if he fails to do so, the prescribed authority may, by notice require him to replace it. 127. General provisions regarding licences and permissions:- (1) Every licence and permission granted under this Act or any rule or bye-law made under this Act shall specify the period, if any, for which, and the restrictions, limitations and conditions subject to which the same is granted and shall be signed by the Executive Authority or by some person duly authorised by him in this behalf. (2) Save as otherwise expressly provided in or may be prescribed under this Act, for every such licence or permission fees may be charged on such units and at such rates as may be fixed by the Gram Panchayat: Provided that a person who is a barber, washerman, medari or kummari or other village artisan by profession shall not be liable to pay any fees in relation to the licence granted to him for the use of any place in the Gram Panchayat for exercising his profession or transacting his business as such. (3) Every order of the authority competent under this Act or any rule or bye-law made thereunder to pass an order refusing, suspending, cancelling or modifying a licence or permission shall be in writing and shall state the grounds on which it proceeds: Provided that every application for a licence or permission under this Act shall be disposed of within fifteen days from the date of receipt thereof or from the date of receipt of approvals or completion of other formalities prescribed failing which it shall be deemed that licence or permission is granted. (4) Subject to the special provisions regarding private markets, any licence or permission granted under this Act or any rule or bye-law made thereunder it may, at any time, after giving the persons concerned an opportunity of making a representation be suspended or revoked by the Executive Authority if any of the restrictions, limitations or conditions laid down in respect thereof is evaded or infringed by the grantee, or if the grantee is convicted of a breach of any of the provisions of this Act, or of any rule, bye-law or regulation made under it, in any matter to which such licence or permission relates or if the grantee has obtained the same by misrepresentation or fraud. (5) It shall be the duty of the Executive Authority to inspect places in respect of which a licence or permission is required by or under this Act, and he may enter any such place between sunrise and sunset, and also between sunset and sunrise if it is open to the public or any industry is being carried on in it at that time; and if he has reason to believe that anything is being done in any place without a licence or permission where the same is required by or under this Act, or otherwise than in conformity with the same, he may at any time by day or night without notice enter such place for the purpose of satisfying himself whether any provision of law, rules, bye-laws or regulations, any

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condition of a licence or permission or any lawful direction or prohibition is being contravened; and no claim shall lie against any person for any damage or inconvenience necessarily caused by the exercise of powers under this sub-section by the Executive Authority or any person to whom he has lawfully delegated his powers; or by the use of any force necessary for effecting an entrance under this sub-section. (6) When any licence or permission is suspended or revoked or when the period for which its was granted, or within which application for renewal should be made has expired, whichever expires later, the grantee shall for all purposes of this Act, or any rule or bye-law made under this Act, be deemed to be without a licence or permission, until the order suspending or revoking the licence or permission is cancelled or subject to sub-section (11) until the licence or permission is renewed as the case may be. (7) The grantee of every licence or permission shall, at all reasonable times, while such licence or permission remains in force, produce the same at the request of the Executive Authority. (8) Whenever any person is convicted of an offence in respect of the failure to obtain a licence or permission or to make a registration as required by the provisions of this Act or any rule or bye-law made thereunder, the Magistrate shall, in addition to any fine which may be imposed, recover summarily and pay over to the Gram Panchayat the amount of the fee chargeable for the licence or permission or for registration and may, in his discretion, also recover summarily and pay over to the Gram Panchayat such amount, if any, as he may fix, as the costs of the prosecution. (9) Save as otherwise expressly provided in or may be prescribed under this Act, every application for a licence or permission or for registration under this Act or any rule, bye-law or regulation made thereunder or for renewal thereof, shall be made not less than thirty and not more than ninety days before the commencement of the period or such less period as is mentioned in the application. (10) Recovery of the fee under sub-section (8) shall not entitle the person convicted to a licence or permission or to registration as aforesaid. (11) The acceptance by or on behalf of a Gram Panchayat of the prepayment of the fee for a licence or permission or for registration shall not entitle the person making such prepayment to the licence or permission or of registration, as the case may be but only to refund of the fee in case of refusal of the licence or permission or of registration, but an applicant for the renewal of a licence or permission or registration shall, until communication of orders on his application, be entitled to act as if the licence or permission or registration had been renewed and save as otherwise specially provided in this Act, if orders on an application for licence or permission or for registration are not communicated to the applicant within thirty days or such longer period as may be prescribed in any class of cases after the receipt of the application by the Executive Authority, the application shall be deemed to have been allowed for the period if any, for which it would have been ordinarily allowed and subject to the law, rules bye-laws and regulations and all conditions ordinarily imposed. 128. Appeal from the order of Executive Authority:- (1) An appeal shall lie to the Gram Panchayat from – (a) any order of the Executive Authority granting, refusing, suspending or revoking a licence or permission; (b) any other order of the Executive Authority that may be made appealable by rules made under section 268. (2) A second appeal shall lie from the decision of the Gram Panchayat passed in an appeal under sub-section (1) to such authority as may be prescribed whose decision thereon shall be final.

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129. Limitation of time for appeal:- In any case in which no time is fixed by the foregoing provisions of this Act for the presentation of an appeal allowed thereunder, such appeal shall, subject to the provisions of section 5 of the Indian Limitation Act, 1963 (Central Act 36 of 1963) be presented within thirty days after the date of receipt of the order from which the appeal is preferred. 130. Government and Market Committees not to obtain licences and permissions:- Nothing in this Act or in any rule, bye-law or regulation made thereunder shall be construed as requiring the taking out of any licence or the obtaining of any permission under this Act or any such rule, bye-law or regulation in respect of any place in the occupation or under the control of the State or Central Government or of a Mandal Parishad or Zilla Parishad or of a Market Committee constituted under the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 (Act 16 of 1966) or in respect of any property of the State or Central Government or of any property belonging to such Mandal Parishad or Zilla Parishad or Market Committee. 131. Time for complying with notice, order etc., and power to enforce in default:- (1) Whenever by any notice, requisition or order under this Act, or under any rule, bye-law or regulation made thereunder, any person is required to execute any work to take any measures or to do anything, a reasonable time shall be named in such notice, requisition or order within which the work shall be executed, the measures taken or the thing done. (2) If such notice, requisition or order is not complied with within the times so named(a) the Executive Authority may cause such work to be executed or may take any measures or do anything which may in his opinion be necessary for giving due effect to the notice, requisition or order and all expenses thereby incurred by the Gram Panchayat shall be paid by the person or persons upon whom a notice was served and shall be recoverable in the manner hereinafter provided; and further (b) if no penalty has been specially provided, in this Act for failure to comply with such notice, requisition or order the said person shall be punishable with fine not exceeding fifty rupees for every such offence. 132. Powers of entry and inspection:- (1) Subject to such restrictions and conditions as may be prescribed the Executive Authority or any person authorised by him may, between sunrise and sunset on any day enter any place building or land with or without notice and with or without assistants or workmen in order to make an inquiry, inspection, test, examination, survey, measurement or valuation or to execute any other work which is authorised by the provisions of the Act or of any rule, bye-law, regulation or order made under it or which it is necessary to make or execute for any of the purposes of this Act or in pursuance of any of the said provisions. (2) No claim shall lie against any person for any damage or inconvenience necessarily caused by the exercise of powers under sub-section (1) or the use of any force necessary for effecting an entrance under that sub-section. 133. Testing of weights and measures:- The Executive Authority or any person authorised by him may examine and test the weights and measures used in the markets and shops in the village with a view to the prevention and punishment of offences relating to such weights and measures under Chapter XIII of the Indian Penal Code (Central Act 45 of 1860). 134. Power to call for information from Executive authority:- (1) The Executive Authority may, by an order in writing require the Executive Authority having jurisdiction over the Gram Panchayat to furnish him information on any matter falling within such categories as may be prescribe in respect of

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villages within his jurisdiction or any part thereof or any person or property therein and such Executive Authority shall comply with such order. (2) The order shall specify the period within which it may be complied with but the Executive Authority may, from time to time, extend such period. 135. Limitation for recovery of dues:- No distraint shall be made, no suit shall be instituted and no prosecution shall be commenced in respect of any tax or other amount due to a Gram Panchayat under this Act or any rule, bye-law, regulation or order made under it after the expiration of a period of three years from the date on which distraint might first have been made, a suit might first have been instituted, or prosecution might first have been commenced, as the case may be, in respect of such tax or amount. 136. Persons empowered to prosecute:- Save as otherwise expressly provided in this Act, no person shall be tried for any offence against this Act or any rule or bye-law made thereunder, unless complaint is made within twelve months of the commission of the offence by the police, the Executive Authority or person expressly authorised in this behalf by the Gram Panchayat or Executive Authority: Provided that failure to take out a licence, obtain permission or secure registration under this Act, shall, for the purposes of this section be deemed a continuing offence until the expiration of the period, if any, for which the licence, permission or registration is required and if no period is specified, complaint may be made at any time within twelve months from the commencement of the offence. 137. Power to compound offences:- (1) The Executive Authority may, subject to such restrictions and control, as may be prescribed, compound for a sum not exceeding rupees five hundred, any offence against the provisions of this Act or any rule or bye-law made thereunder, which may by rules, be declared compoundable. (2) On payment of the amount by way of composition no further proceedings shall be taken or continued against the defaulter in regard to the offence or alleged offence so compounded. (3) Nothing in this section shall apply to election offences. 138. Prosecutions and compositions to be reported to Gram Panchayat:- Every prosecution instituted or offence compounded by the Executive Authority shall be reported by him to the Gram Panchayat at its next meeting. 49

[138-A. Notice of action against Gram Panchayat:- (1) Subject to the provisions of section 138, no suit or other legal proceeding shall be brought against any Gram Panchayat or the Sarpanch or the executive authority or any member, officer or servant of such Gram Panchayat or against any person acting under the direction of such Gram Panchayat, Sarpanch, executive authority, member, officer or servant, in respect of any act done or purporting to be done under this Act or in respect of any alleged neglect or default in the execution of the provisions of this Act or any rule, bye-law, regulation or order made under it, until the expiration of two months next after notice in writing stating the cause of action, the nature of the relief sought, the amount of compensation claimed and the name and place of residence of the intended plaintiff, has been left at the office of the Gram Panchayat and if the proceeding is intended to be brought against any such Sarpanch, executive authority, member, officer, servant or person, also delivered to him or left at his place of residence, and unless such notice is given, the court shall not entertain such suit or legal proceeding. 49

Inserted by Section 5 of Act No. 37 of 2001.

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(2) Every such proceeding shall, unless it is a proceeding for the recovery of immovable property or for a declaration of title thereto, be commenced within six months after the date on which the cause of action arose or in case of a continuing injury or damage, during such continuance or within six months after the ceasing thereof. (3) If any Gram Panchayat or person to whom notice is given under sub-section (1) tenders amends to the plaintiff before the proceeding is commenced and if the plaintiff does not in such proceeding recover more than the amount so tendered, he shall not recover any costs incurred by him after such tender, and the plaintiff shall also pay all cost incurred by the defendant after such tender.] 139. Assistance of police to the Gram Panchayat:- Every Police Officer in whose jurisdiction the village is situated, shall be bound to assist the Gram Panchayat and its officers and servants in the exercise of their lawful authority. 140. Wrongful restraint of Executive Authority or his delegates:- Any person who prevents the Executive Authority or any person to whom the Executive Authority has lawfully delegated his powers of entering on or into any place, building or land, from exercising his lawful power of entering thereon or thereinto shall be deemed to have committed an offence under section 344 of the Indian Penal Code (Central Act 45 of 1860). 141. Punishment for obstructing Gram Panchayat:- Whoever obstructs a Gram Panchayat or the Sarpanch, the Executive Authority or a member of the Gram Panchayat or any person employed by the Gram Panchayat or any person with whom it has contracted in the performance of its duty under the provisions of this Act or of any rule made thereunder, or prevents or tries to prevent any person from doing anything which he is empowered or required to do, by virtue of this Act, or removes any mark set up for the purpose of indicating any level or direction incidental to the carrying out of any work authorised by this Act, or removes, destroys, or defaces or otherwise obliterates any notice put up or exhibited by the Gram Panchayat or under its authority, shall be liable on conviction to a fine not exceeding fifty rupees. 142. Penalty for not giving information or giving false information:- Any person required by this Act or by any notice or other proceedings issued thereunder to furnish any information, who omits to furnish such information or knowingly furnishes false information shall be punishable with fine not exceeding ten rupees. SUPPLEMENTAL PROVISIONS 143. Special provisions in the case of 50[* * *] Gram Panchayats:- (1) Notwithstanding anything in this Act, when a local area is notified as a village under section 3, for the first time, the Commissioner shall appoint a special officer to exercise the powers and perform the functions of the Gram Panchayat and its Sarpanch and Executive Authority until the members and Sarpanch thereof who are duly elected assume office. (2) The special officer shall cause arrangements for the election of the members of the Gram Panchayat to be made before such date as may be fixed by the Commissioner in this behalf: Provided that the Commissioner may, from time to time, postpone the date so fixed, if for any reason, the elections cannot be completed before such date.

50

Omitted by Section 2 (i) of Act No. 2 of 1996.

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51

[(3) "The Government, or as the case may be, an officer authorised by the Government, shall appoint a special officer or a person-in-charge or a committee of persons-in-charge to a Gram Panchayat, if for any reason, the process of election to such Gram Panchayat is not completed. (4) The special officer or person-in-charge or the committee of persons-in-charge, appointed under sub-section (3) shall exercise the powers and perform the functions of the gram panchayat and its Sarpanch and executive authority until the members and Sarpanch elected thereof assume office".] 144. Public roads, markets, wells, tanks etc., to be open to all:- All roads, markets, wells, tanks, reservoirs and water ways vested in or maintained by a Gram Panchayat shall be open to the use and enjoyment of all persons, irrespective of their caste and creed. 145. Power to farm out fees:- A Gram Panchayat shall have power to farm out the collection of any fees due to it under this Act or any rule, bye-law or regulation made thereunder, for any period not exceeding three years at a time on such conditions as it thinks fit. 146. Extension of provisions of law relating to District Municipalities or of rules thereunder:(1) The Commissioner may, at the request of the Gram Panchayat or otherwise, by notification, declare that any of the provisions of the law relating to municipalities for the time being in force or of any rule made thereunder including those relating to taxation, shall be extended to and be in force in the village or any specified area therein. (2) The provisions so notified shall be construed with such alterations not affecting the substance as may be necessary or proper for the purpose of adopting them to the village or specified area therein. (3) Without prejudice to the generality of the foregoing provision, all references to a municipal council or the Chairperson or the Executive Authority thereof shall be construed as references to the Gram Panchayat or the Sarpanch or the Executive Authority thereof, all references to any officer or servant of a municipal council as reference to corresponding officer or servant of the Gram Panchayat and all references to the municipal limits as references to the limits of the village or the specified area therein, as the case may be. 147. Transfer of functions of Gram Panchayats to other local authorities or vice-versa:Notwithstanding anything in this Act, or in any law relating to other local authorities, the Government may, in consultation with the Mandal Parishad or Zilla Parishad or other local authority as the case may be, and the Gram Panchayat concerned, by notification, and subject to such restrictions and conditions and to such control and revision as may be specified therein, direct that, – (i) any power or function vested in the Gram Panchayat by or under this Act, shall be transferred to and exercised and performed by the Mandal Parishad or Zilla Parishad or the other local authority; and (ii) any power or function vested in the Mandal Parishad or Zilla Parishad or the other local authority shall be transferred to and exercised and performed by the Gram Panchayat. Explanation: For the purpose of this section, `local authority' includes, the Andhra Pradesh Industrial Infrastructure Corporation Limited.

51

Added by Section 2 (ii) of Act No. 2 of 1996.

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Part III CONSTITUTION AND INCORPORATION, COMPOSITION, POWERS, FUNCTIONS, ETC., OF MANDAL PARISHADS 148. Constitution and incorporation of Mandal Parishads:- (1) There shall be constituted by the Government by notification from time to time, and with effect on and from such date, as may be specified therein constitute a Mandal Parishad for each mandal. (2) Where under sub-section (2) of Section 3 of the Andhra Pradesh Districts (Formation) Act, 1974 (Act 7 of 1974), a Mandal is redelimited or a new Mandal is formed, the Government may, by notification, reconstitute the Mandal Parishad for the redelimited Mandal or constitute a new Mandal Parishad for the new Mandal. On such reconstitution or constitution the Mandal Parishad or Mandal Parishads concerned functioning immediately before such reconstitution or constitution, shall stand abolished: Provided that in reconstituting the Mandal Parishad the Government may direct that the President, the Vice-President or an elected member of the Mandal Parishad which was functioning immediately before such redelimitation and who is otherwise qualified to hold such office in the reconstituted Mandal Parishad shall be the President, Vice-President or elected member of the reconstituted Mandal Parishad as if he was elected to such office in the reconstituted Mandal Parishad. (3) Where after a Mandal Parishad is constituted for a Mandal, a part of such Mandal is included in a neighbouring Municipality or Municipal Corporation, and, (i) in case the residuary part of the Mandal is viable for the constitution of a separate Mandal Parishad such residuary part shall be redelimited into a separate Mandal under the Andhra Pradesh Districts (Formation) Act, 1974 (Act 7 of 1974) and a Mandal Parishad shall be constituted for such newly formed Mandal and that portion of the Mandal prior to its redelimitation which is included in the neighbouring Municipality or Municipal Corporation shall be included in an adjoining Mandal which forms part of such Municipality or Municipal Corporation; or (ii) in case the residuary portion of the Mandal is not viable to be constituted into a separate Mandal Parishad, it shall be competent for the Government, – (a) to include such residuary portion of the Mandal in the adjoining Mandal or Mandals and abolish the Mandal Parishad constituted for such Mandal; or (b) to form a new Mandal by adding to such residuary portion, areas from the adjoining Mandal or Mandals and constitute a Mandal Parishad for such new Mandal: Provided that where a Mandal Parishad is constituted under clause (i) or sub-clause (b) of clause (ii), the Government may direct that the President, Vice-President or an elected member of the abolished Mandal Parishad who is otherwise qualified to hold such office in the newly constituted Mandal Parishad shall be the President, Vice-President or elected Member of the newly constituted Mandal Parishad as if he was elected to such office in the newly constituted Mandal Parishad. Explanation:- For the removal of doubts it is hereby declared that, – (i) the President, Vice-President or an elected member of the newly constituted Mandal Parishad continued under this sub-section shall hold office only for the residue of the term of the President, Vice-President or an elected member of the abolished Mandal Parishad: Provided further that where a Mandal Parishad is abolished under clause (a), the President, Vice-President or an elected member holding office immediately before such abolition shall unless he is continued under the foregoing proviso cease to hold their respective offices. (4) Every Mandal Parishad shall, by the name of the Mandal for which it is constituted or reconstituted, be a body corporate having perpetual succession and a common seal with power to

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acquire, hold and dispose of property and to enter into contracts and may by its corporate name sue and be sued. (5) The notification under sub-section (2) may contain such supplemental, incidental and consequential provisions as the Government may deem necessary and the Government may, from time to time, amend any such notification. 149. Composition of Mandal Parishad:- (1) Every Mandal Parishad shall consist of the following members namely:(i) persons elected under section 151; (ii) the Member of the Legislative Assembly of the State representing a constituency which comprises either wholly or partly the Mandal concerned; (iii) the Member of the House of the People representing a constituency which comprises either wholly or partly the Mandal concerned; (iv) any Member of the Council of States who is a registered voter in the Mandal concerned; (v) one person belonging to minorities to be co-opted in the prescribed manner by the members specified in clause (i) from among persons who are registered voters in the Mandal and who are not less than 21 years of age. (2) No person shall be a member in more than one of the categories specified in subsection (1). A person who is or becomes a Member of Mandal Parishad in more than one such category shall, by notice in writing signed by him and delivered to the Mandal Parishad Development Officer, within fifteen days from the date of the first meeting referred to in sub-section (3) of section 153, intimate in which one of the said categories he wishes to serve, and thereupon he shall cease to be the Member in the other category or categories. In default of such intimation within the aforesaid period, his membership in the Mandal Parishad category acquired earlier shall, and his membership acquired later in the other shall not, cease at the expiration of such period. The intimation given under this sub-section shall be final and irrevocable. 150. Division of Mandal into constituencies:- For the purpose of electing the members specified in clause (i) of sub-section (1) of section 149, the Commissioner shall, subject to such rules as may be made in this behalf, divide each Mandal Parishad area into as many territorial constituencies as he may, by notification specify, in such manner that, as far as practicable, shall consist of a population ranging between three thousand and four thousand; and that the ratio between the population of each constituency and the number of seats allotted to it shall, as far practicable, be the same throughout the Mandal Parishad area: Provided that the ratio between the population of the territorial area of a Mandal Parishad and the number of seats in such Parishad to be filled by election shall, as far as practicable, be the same throughout the State. 151. Election of members from territorial constituencies:- (1) One member shall be elected to the Mandal Parishad from each territorial constituency specified in section 150 by the method of secret ballot by the persons who are registered voters in the territorial constituency concerned: Provided that a registered voter in the Mandal Parishad shall be entitled to contest from any territorial constituency of the Mandal Parishad. (2) For purpose of preparation and publication of the electoral roll for the elections to the office of member under this section, the provisions of sections 11 and 12 shall, mutatis mutandis apply, subject to such rules as may be made in this behalf.

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152. Reservation of seats of Members of Mandal Parishad: (1) In every Mandal Parishad out of the total strength of elected members determined under section 150, the Commissioner shall, subject to such rules as may be prescribed, by notification, reserve(a) such number of seats to the members belonging to Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election to the Mandal Parishad, as the population of the Scheduled Castes, or as the case may be, the Scheduled Tribes in that Mandal bears to the total population of that Mandal, and such seats may be allotted by rotation to different constituencies in a Mandal Parishad in the manner prescribed. 52 [* * *] (c) not less than one-third of the total number of seats reserved under 53[clause (a) and sub-section (1A)] for women belonging to the Scheduled Castes, Scheduled Tribes or as the case may be, the Backward Classes; (d) not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes, Scheduled Tribes and Backward Classes) of the total number of seats to be filled by direct election to every Mandal Parishad shall be reserved for women and such may be allotted by rotation to different constituencies in a Mandal Parishad in the manner prescribed. 54

[(1 A) In addition to the reservation of seats under sub-section (1), there shall be reserved for the Backward Classes such number of seats as may be allocated to them in each Mandal Parishad in the manner prescribed; so however that the number of offices of members of Mandal Parishads in the State reserved for Backward Classes shall not be less than thirty-four per cent of the total number of offices of the members of Mandal Parishads in the State. The number of seats allocated to each Mandal Parishad shall be allotted by rotation to different territorial constituencies in the Mandal Parishad: Provided that it shall be competent for the Government to make special provisions with regard to the manner and quantum of seats to be reserved for Backward Classes in the Mandal Parishad situated either wholly or partly in the Scheduled areas, by rules made in this behalf.] (2) Nothing in 55[sub-sections (1) and 1A] shall be deemed to prevent women and Members of the Scheduled Castes, Scheduled Tribes or Backward Classes from standing for election to the non-reserved seats in the Mandal Parishad. 153. Election, reservation and term of office of President, Vice-President:- (1) For every Mandal Parishad there shall be one President and one Vice-President who shall be 56[elected by and from among the elected members specified in clause (i) of sub-section (1) of section 149 by show of hands duly obeying the party whip given by such functionary of the recognised political party as may be prescribed]. If at an election held for the purpose no President or Vice-President is elected, fresh election shall be held. The names of the President and the Vice-President so elected shall be published in the prescribed manner: Provided that if a Member of the Legislative Assembly of the State or of either House of Parliament is elected to either of the said offices, he shall cease to hold such office unless within fifteen days from the date of election to such office he ceases to be a Member of the Legislative Assembly of the State or of either House of Parliament by resignation or otherwise: 52

Omitted by Section 6 (A) (i) of Act 5 of 1995. Subs by Section 6 (A) (ii) of Act 5 of 1995. 54 Ins by Section 6 (B) of Act 5 of 1995. 55 Subs by Section 6 (C) of Act 5 of 1995. 56 Subs by Section 7 (A) (i) of Act 5 of 1995. 53

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[Provided further that a member voting under this sub-section in disobedience of the party whip shall cease to hold office forthwith and the vacancy caused by such cessation shall be filled as a casual vacancy.] (2) Out of the total number of offices of President in the State, the Commissioner shall, subject to such rules as may be prescribed, by notification reserve – (a) such number of offices to the members belonging to Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of offices so reserved shall bear, as nearly as may be, the same proportion to the total number of offices to be filled in the State as the population of the Scheduled Castes or as the case may be, the Scheduled Tribes in the State bears to the total population of the State; and such offices may be allotted by rotation to different Mandal Parishads in the State in the manner prescribed. 58 [* * *] (c) not less than one-third of the total number of offices reserved under 59[clause (a) and sub-section 2A] for women belonging to the Scheduled Castes, Scheduled Tribes, or as the case may be, the Backward Classes; and (d) not less than one-third (including the number of offices reserved for women belonging to the Scheduled Castes, Scheduled Tribes and the Backward Classes) of the total number of offices to be filled in the State for women; and such offices may be allotted by rotation to different Mandal Parishads in the State in the manner prescribed. 60 [(2A) In addition to the reservation of offices of President under sub-section (1), there shall be reserved for the Backward Classes such number of offices of President as may be allocated to them in each district in the manner prescribed; so however, that the number of offices of President in the State reserved for Backward Classes shall not be less than thirty-four per cent of the total number of offices of Presidents of Mandal Parishads in the State. The number of offices of Presidents allocated for reservation to each district shall be allotted by rotation to different Mandal Parishads in the district.] (3) The first meeting of the Mandal Parishad to elect a President and Vice-President shall be called as soon as may be, after the results of the ordinary elections to the office of elected members of the Mandal Parishad have been published. The notice of the date and time of the meeting for the election of President and Vice-President shall be given to the elected members in the prescribed manner: Provided that if, for any reason, the election of the President or Vice-President is not held on the date fixed as aforesaid, the meeting for the election of the President and Vice-President shall be held on the next day, whether or not it is a holiday observed by the Mandal Parishad. (4) Every President or Vice-President shall cease to hold office on the expiration of his term of office as a member. (5) Save as otherwise expressly provided in, or prescribed under this Act, the term of office of the President or Vice-President who is elected at an ordinary election shall be five years from the date appointed by the Andhra Pradesh Election Commissioner for Local Bodies for the first meeting of the Mandal Parishad after the ordinary election. (6) Any casual vacancy in the office of the President or Vice-President shall be filled within a period of six months from the date of occurrence of the vacancy by a fresh election under sub-section (3) and a person elected as President or Vice-President in any such vacancy shall hold

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Added by Section 7 (A) (ii) of Act 5 of 1995. Omitted by Section 7 (B) (i) of Act 5 of 1995. 59 Subs by Section 7 (B) (ii) of Act 5 of 1995. 60 Ins by Section 7 (B) (iii) of Act 5 of 1995. 58

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office only so long as the person in whose place he is elected would have been entitled to hold office if the vacancy had not occurred. 154. Term of office of member of Mandal Parishad:- Save as otherwise provided in this Act, – (i) an ex-officio member of the Mandal Parishad shall hold office so long as he continues to hold the office by virtue of which he became such ex-officio member; (ii) a member elected at an ordinary election or a co-opted member shall hold office for a term of five years from the date appointed by the Andhra Pradesh Election Commissioner for Local Bodies for the first meeting of the Mandal Parishad after the said ordinary election. 155. Qualification of candidates for election:- No person shall be eligible for election as member of a Mandal Parishad unless his name appears in the electoral roll of the Mandal Parishad concerned and he has completed the age of twenty-one years. 156. Disqualifications:- (1) A member of the Mandal Parishad shall be disqualified for election as President or Vice-President if he is in arrears of any dues, otherwise than in a fiduciary capacity to a Gram Panchayat, a Mandal Parishad or the Zilla Parishad or if he is interested in a subsisting contract made with, or any work being done for, any Gram Panchayat in the Mandal or the Mandal Parishad or the Zilla Parishad within whose jurisdiction the Mandal Parishad is situated or any other Mandal Parishad within the jurisdiction of that Zilla Parishad: Provided that a person shall not be deemed to have any interest in such contract or work by reason only of his having a share or interest in – (i) a company as a mere shareholder but not as a director; (ii) any lease, sale or purchase of immovable property or any agreement for the same; or (iii) any agreement for the loan of money or any security for the payment of money only; or (iv) any newspaper in which any advertisement relating to the affairs of any of aforesaid Mandal Parishad is inserted. (2) The provisions of sections 18, 19, 20, 21 and 22 shall apply to a member of the Mandal Parishad as they apply to a member of the Gram Panchayat subject to the variations that for the expressions, "Gram Panchayat," "Executive Authority," "Sarpanch," "Upa-Sarpanch" and "District Panchayat Officer," the expressions “Mandal Parishad”, “Mandal Parishad Development Officer”, "President," "Vice-President" and "Chief Executive Authority," shall respectively be substituted: Provided that nothing in clause (b) of section 20 shall apply to a member of the Mandal Parishad specified in clause (ii), clause (iii) and clause (iv) of sub-section (1) of section 149. 157. Resignation of President, Vice-President or member:- The President, the Vice-President, elected member or co-opted member may resign his office in such manner as may be prescribed. 158. Permanent invitees to the meetings of the Mandal Parishad:- The Collector, the Sarpanches of all the Gram Panchayats within the jurisdiction of the Mandal Parishad, 61[the member of the Zilla Parishad specified in clause (i) of sub-section (3) of Section 177 elected from the Mandal concerned, the Chairperson, Zilla Parishad, and the President of Agricultural Marketing Committee] shall be permanent invitees to the meetings of the Mandal Parishad and they shall have the right to speak in and otherwise to take part in the proceedings of any meeting of a Mandal Parishad functioning within

61

Subs by Section 8 of Act No. 5 of 1995.

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the local limits of their respective jurisdictions but shall not, by virtue of this section be entitled to vote at any such meeting. 159. President of a Mandal Parishad may invite certain persons to attend its meetings:- (1) The President of a Mandal Parishad may for purposes of consultation, invite any person other than an office bearer of any political party having experience and specialised knowledge of any subject under the consideration of the Mandal Parishad to attend the meeting of the Mandal Parishad. Such person shall have the right to speak in, and otherwise to take part in the proceedings of such meeting but shall not, by virtue of this section be entitled to vote at any such meeting. (2) A person attending a meeting under sub-section (1) shall be entitled to such allowances as may be prescribed. 160. Rules for the conduct of the business at a meeting of a Mandal Parishad:- Every Mandal Parishad shall in regard to the conduct of business at its meetings, follow such rules as may be prescribed. 161. Powers and functions of a Mandal Parishad:- (1) Subject to the provisions of this Act, the administration of the Mandal shall vest in the Mandal Parishad. Every Mandal Parishad shall endeavour to install among the people within its jurisdiction spirit of self-help and initiative and harness their enthusiasm for raising the standard of living, it shall exercise all the powers conferred on, and perform all the functions entrusted to it by or under this Act, and such other powers and functions as may be conferred on, and entrusted to it by the Government for carrying out the purposes of this Act, but it shall not exercise the powers or perform the functions expressly assigned by or under this Act, or any other law to its President or to the Mandal Parishad Development Officer or the Zilla Parishad or any other authority, it shall do extension and review functions at the mandal level effectively. It may, with the previous approval of the Government and subject to such terms and conditions as may be prescribed borrow moneys for carrying out the purposes of this Act. It shall also exercise and perform such of the powers and functions of the District Board including the powers to levy any tax or fees as may be transferred to it under this Act. (2) Every Mandal Parishad shall exercise such powers and perform such functions as may be entrusted to it by rules made in this behalf in regard to the subjects enumerated in Schedule I. In particular, the Mandal Parishad shall exercise the powers and perform the functions specified in Schedule-II. (3) Notwithstanding anything in this Act, the Mandal Parishad may with the prior approval of the Zilla Parishad levy contributions from the funds of the Gram Panchayats in the Mandal. (4) Every Mandal Parishad may levy with the prior sanction of the Government a duty in the form of a surcharge on any tax imposed by a Gram Panchayat or on land cess or local cess levied within its jurisdiction in such manner and subject to such maximum as may be prescribed. 162. Maintenance of common water works and other institutions:- (1) Notwithstanding anything in this Act and subject to the rules made in this behalf, two or more Gram Panchayats may, – (i) construct and maintain water works for supply of water for washing and bathing purposes and protected water for drinking purposes from a common source, and (ii) entrust to Mandal Parishad with its consent and on such terms as may be agreed upon the management of any institution or the execution or maintenance of any work.

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(2) Subject to the provisions of this Act and the rules made thereunder, two or more Mandal Parishads may establish and maintain common dispensaries, child welfare centres and institutions of such other kinds, as may be prescribed. 163. Power of Mandal Parishad to call for documents from the Mandal Parishad Development Officer:- A Mandal Parishad may, at any time require the Mandal Parishad Development Officer to furnish any document in his custody. The said officer shall comply with every such requisition. 164. Power of Mandal Parishad to call for information from Executive Authority:- A Mandal Parishad may require any Executive Authority of any village within the jurisdiction of the Mandal Parishad to furnish any information on any matter falling within such categories as may be prescribed in respect of such village or any person or property therein required for the purposes of this Act. 165. Powers and functions of the President and Vice-President:- (1) The President of a Mandal Parishad shall, – (a) exercise administrative control over the Mandal Parishad Development Officer for the purposes of implementation of the resolution of the Mandal Parishad; (b) preside over and conduct the meetings of the Mandal Parishad; and (c) have full access to all records of the Mandal Parishad. (2) In case of emergency the President may in consultation with the Mandal Parishad Development Officer direct the execution of any work or the doing of any act which requires the sanction of the Mandal Parishad and the immediate execution or the doing of which is, in his opinion, necessary for the service or safety of the general public, but he shall report the action taken under this sub-section and the reasons therefor to the Mandal Parishad at its next meeting: Provided that he shall not direct the execution of any work or the doing of any act in contravention of any order of the Government. (3) The Vice-President shall exercise such powers and perform such functions of the President as the President may, from time to time, delegate to him in writing. (4) When the office of the President is vacant the Vice-President of the Mandal Parishad shall exercise the powers and perform the functions of the President until a new President is elected. (5) If the President has been continuously absent from the Mandal for more than fifteen days or is incapacitated for more than fifteen days, his powers and functions during such absence or incapacity shall devolve on the Vice-President. (6) When the office of the President is vacant or the President has been continuously absent from the Mandal for more than fifteen days or is incapacitated for more than fifteen days and there is either a vacancy in the office of Vice-President or the Vice-President has been continuously absent from the Mandal for more than fifteen days or is incapacitated for more than fifteen days, the powers and functions of the President shall devolve on a member of the Mandal Parishad appointed by the Government in this behalf. The member so appointed shall be styled as the temporary President and he shall exercise the powers and perform the functions of the President subject to such restrictions and conditions as may be prescribed until a new President or Vice-President assumes office after his election or until the President or the Vice-President returns to the Mandal or recovers from his incapacity, as the case may be. 166. Right of individual members to draw attention in respect of Mandal Parishad etc.:- Any member of a Mandal Parishad may draw the attention of the President or the Mandal Parishad Development Officer to any neglect in the execution of Mandal Parishad work, to any waste of

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Mandal Parishad property or to the needs of any locality and may suggest any improvement which may appear desirable. 167. Powers and functions of Mandal Parishad Development Officer:- (1) The Mandal Parishad Development Officer shall be the Chief Executive Authority of the Mandal Parishad. He shall be responsible for implementing the resolutions of the Mandal Parishad and shall also exercise such powers and perform such functions as may be entrusted to him by the Government. He shall also exercise such powers of supervision over the Gram Panchayats in the Mandal as may be prescribed. (2) The Mandal Parishad Development Officer shall, with the approval of, or on the direction of the President, convene the meetings of the Mandal Parishad so that at least one meeting of the Mandal Parishad is held every month and if the Mandal Parishad Development Officer fails to discharge that duty, with the result that no meeting of the Mandal Parishad is held within a period of ninety days from the last meeting, he shall be liable to disciplinary action under the relevant rules: Provided that where the President fails to give his approval for convening the meeting so as to hold a meeting within a period of ninety days aforesaid, the Mandal Parishad Development Officer may himself convene the meeting in the manner prescribed. (3) The Mandal Parishad Development Officer shall ordinarily attend the meetings of the Mandal Parishad and shall be entitled to take part in the discussions thereat but he shall not be entitled to vote or to move any resolution. (4) Subject to the provisions of section 168 the staff borne on the establishment of the Mandal Parishad and the staff working in institutions and schemes transferred by the Government or the Head of the Department of Government to the Mandal Parishad shall be under the administrative control and supervision of the Mandal Parishad Development Officer. (5) Notwithstanding anything in sub-section (1) of section 161 and subject to all other provisions of this Act, and the rules made thereunder, the Mandal Parishad shall have power to issue such specific direction as it may think fit regarding the performance by the Mandal Parishad Development Officer of any of the functions assigned to him under this Act. (6) The Government shall pay out of the Consolidated Fund of the State, the salaries, allowances, leave allowances, pension and contribution if any towards the provident fund or provident fund-cum-pension fund of the Mandal Parishad Development Officer appointed by them for Mandal Parishad. (7) The Government shall have power to make rules to regulate the classification and methods of recruitment, conditions of services, pay and allowances and disciplinary conduct of the Mandal Parishad Development Officer. 168. The Mandal Parishad Development Officer and other officers and staff of a Mandal Parishad to be subordinate to the Mandal Parishad:- The Mandal Parishad Development Officer and other officers and staff of a Mandal Parishad and the staff employed in the institutions and schools under the Mandal Parishad shall be subordinate to the Mandal Parishad. 169. Officers and other employees of Mandal Parishad:- (1) The Government may, at any time create such posts of officers and other employees of Mandal Parishad as they may consider necessary for carrying out the purposes of this Act. (2) All appointments to the posts created under sub-section (1) and transfer of the holders of such posts shall be made subject to the provisions of the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984 (Act 23 of 1984), the Andhra Pradesh (Regulation of Appointments to Public Services and Rationalisation of Staff Pattern and Pay Structure) Act, 1994 (Act 2 of 1994) and such rules as may be made under the proviso to Article 309 of the Constitution of India.

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(3) The Government shall pay, out of the Consolidated Fund of the State, the salaries, allowances, leave allowances, pension and contributions, if any, towards the provident fund or Pension-cum-Provident fund of the officers and other employees of a Mandal Parishad who hold any of the posts referred to in sub-section (1). (4) The classification and methods of recruitment, conditions of service, pay and allowances and discipline and conduct of the officers and other employees referred to in sub-section (3), shall be regulated in accordance with the provisions of the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984 (Act 23 of 1984), the Andhra Pradesh (Regulation of Appointments to Public Services and Rationalisation of Staff Pattern and Pay Structure) Act, 1994 (Act 2 of 1994) and such rules as may be made under the proviso to Article 309 of the Constitution until rules in that behalf are so made, the law for the time being in force regulating the recruitment and conditions of service, pay and allowances and conduct, applicable to such holder shall continue to apply to such holder. (5) The Government may, from time to time, by order give such directions to any Mandal Parishad or any officer, authority, or person thereof as may appear to them to be necessary for the purpose of giving effect to the provisions of this section and the Mandal Parishad Development Officer, authority or person shall comply with all such directions. 170. Allowances for attending a meeting of the Mandal Parishad:- (1) There shall be paid to the members of a Mandal Parishad including its President and Vice-President and to the Members of the Legislative Assembly and of either House of Parliament for attending a meeting of the Mandal Parishad such allowances as may be prescribed. (2) There shall also be paid to the President in respect of his tours on duty whether within or outside the Mandal but within the District such allowances as may be prescribed. 171. Mandal Parishad Fund:- (1) All moneys received by a Mandal Parishad shall constitute a fund called the Mandal Parishad Fund and shall be applied for the purposes specified in this Act and for such other purposes and in such manner as may be prescribed. (2) All moneys received by the Mandal Parishad shall be lodged in the nearest Government treasury: 62 [Provided that the amounts received as funds under the Jawahar Rozgar Yojana, Employment Assurance Scheme or other Wage Employment Schemes shall be lodged in nearby Nationalised Banks or Co-operative Banks or Post Offices in such manner as may be prescribed.] (3) All orders or cheques against the Mandal Parishad Fund shall be signed by the Mandal Parishad Development Officer. 172. Income and expenses of a Mandal Parishad:- (1) The sources of income of a Mandal Parishad shall consist of, – (i) funds relating to institutions and schemes transferred by the Government or Heads of Departments of the Government to the Mandal Parishad; (ii) funds relating to the community development programmes; (iii) Central and State aid and aid received from the All India bodies and institutions for the development of cottage and village industries, khadi, silk, coir, handicrafts and the like; (iv) donations and contributions received by the Mandal Parishad from Gram Panchayats or from the public in any form; (v) such income of the Zilla Parishad as the Government may, by order, allocate to it; (vi) such share of the land revenue, State taxes or fees as may be prescribed; 62

Added by Section 3 of Act No. 16 of 1998.

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(vii) proceeds from taxes, surcharge or fee which the Mandal Parishad is empowered to levy under this Act or any other law; (viii) such contributions as the Mandal Parishad may levy from Gram Panchayats; (ix) any other income from remunerative enterprises and the like. (2) Government shall also make an annual grant at the rate of five rupees per person residing in the Mandal calculated on the basis of the last preceding census of which figures are available. (3) The expenses of the Mandal Parishad shall include the salaries and allowances of its officers and other employees, the allowances to be paid under sections 159 and 170, any item of expenditure directed by the Government for carrying out the purposes of this Act and such other expenses as may be necessary for such purposes. 173. Election expenses to be borne by the Government:- The cost of the election expenses including the conduct of elections to the Mandal Parishad and the cost of maintenance of election establishment employed in connection therewith shall be borne by the Government. 174. Budget of Mandal Parishad: (1) The Mandal Parishad Development Officer shall, in each year frame and place before the Mandal Parishad on or before the prescribed date a budget showing the probable receipts and expenditure during the following year, and the Mandal Parishad shall sanction the budget with such modifications, if any, as it thinks fit. (2) The budget as so sanctioned shall be submitted by the Mandal Parishad Development Officer on or before such date as may be prescribed, to the Zilla Parishad and where there is no such Zilla Parishad to the District Collector, and if the Zilla Parishad or the District Collector, as the case may be is satisfied that adequate provision has not been made therein for giving effect to the provisions of this Act, it or he shall have power to approve the budget with such modifications as may be necessary to secure such provisions. (3) If, for any reason the budget is not sanctioned by the Mandal Parishad under subsection (1) before the date referred to in sub-section (2) the Mandal Parishad Development Officer shall submit the budget to the District Collector who shall sanction it with such modifications, if any, as he thinks fit and forward it to the Zilla Parishad which shall thereupon approve the budget as if it were submitted to it under sub-section (2), where there is no Zilla Parishad for the District, the sanction accorded by the District Collector shall be final. (4) If, in the course of a year, the Mandal Parishad finds it necessary to make any alterations in the budget with regard to its receipts or items of expenditure, a revised or supplemental budget may be framed, submitted and sanctioned or approved as far as may be in the manner provided in sub-sections (1), (2) and (3). 175. Joint Committee of Mandal Parishad and other local authorities:- A Mandal Parishad may, and if so required by the Government shall, join with one or more than one other local authority in constituting a joint committee for any purpose for which they are jointly responsible. 176. Constitution, powers and functions of Joint Committee: The constitution, powers and procedure of the Joint Committee referred to in section 175 and the method of settling differences of opinion arising in connection with such committee between the local authorities concerned shall be in accordance with such rules as may be prescribed.

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Part IV CONSTITUTION, INCORPORATION, COMPOSITION, POWERS, FUNCTIONS, ETC., OF ZILLA PARISHADS 177. Constitution, incorporation and composition of Zilla Parishad:- (1) There shall be constituted by the Government by notification a Zilla Parishad for a District with effect from such date as may be specified therein. (2) Every Zilla Parishad shall, by the name of the District for which it is constituted, be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to enter into contracts and may by its corporate name, sue and be sued. (3) Every Zilla Parishad shall consist of the following members, namely:– (i) persons elected under section 179; (ii) the Member of the Legislative Assembly of the State representing the constituency which comprises either wholly or partly the district concerned: Provided that such Member of the Legislative Assembly shall have the right to speak in and otherwise to take part in the proceedings of a meeting of any Standing Committee of the Zilla Parishad but he shall not be entitled to vote at a meeting of such Standing Committee, unless he is also a member of that Standing Committee: Provided further that no Member of the Legislative Assembly representing a constituency the whole of which forms part of the local area within the jurisdiction of any of the Municipal Corporations or any of the Municipalities in the State shall be the member of the Zilla Parishad of the concerned district; (iii) The member of the House of People representing the constituency which comprises either wholly or partly the district concerned: Provided that no Member of the House of the People representing a constituency the whole of which forms part of the local area within the jurisdiction of any of the Municipal Corporations in the State shall be the Member of the Zilla Parishad: Provided further that a Member of the House of the People representing a constituency which comprises more than one district including a portion of any district, shall be a member of the Zilla Parishad of all such districts with the right to speak in, and otherwise to take part in the proceedings of their meetings with voting rights; he shall also have the right to speak in and otherwise to take part in the meetings of any Standing Committee of the Zilla Parishad but he shall not be entitled to vote at a meeting of any Standing Committee unless he is also a member of that Standing Committee. (iv) the Member of the Council of States who is a registered voter in the district: Provided that such Member of the Council of States shall have the right to speak in, and otherwise to take part in the proceedings of a meeting of any Standing Committee of the Zilla Parishad, but he shall not be entitled to vote at a meeting of that Standing Committee, unless he is also a member of that Standing Committee; (v) two persons belonging to minorities to be co-opted in the prescribed manner by the members specified in clause (i) from among persons who are registered voters in the District and who are not less than 21 years of age. (4) No person shall be a Member in more than one of the categories specified in subsection (3). A person who is or becomes a Member of a Zilla Parishad in more than one such category, shall, by notice in writing signed by him and delivered to the Chief Executive Authority, within fifteen days from the date of the first meeting of the Zilla Parishad referred to in sub-section (4) of Section 181, intimate in which one of the said categories he wishes to serve, and thereupon, he

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shall cease to be the member in the other category or categories. In default of such intimation within the aforesaid period, his membership in the Zilla Parishad in the category acquired earlier shall, and his membership acquired later in the other category shall not, cease at the expiration of such period. The intimation given under this sub-section shall be final and irrevocable. (5) No person other than a Member of the House of the People, shall be entitled to be a member of more than one Zilla Parishad at a time. 178. Mandals to be territorial constituencies:- For purposes of electing the members specified in clause (i) of sub-section (3) of Section 177 every Mandal in the District shall be a territorial constituency and the Andhra Pradesh Election Commissioner for Local Bodies shall allot not more than one seat for each such territorial constituency. 179. Election of members from territorial constituencies:- (1) One member shall be elected to the Zilla Parishad from each territorial constituency specified in section 178 by the method of secret ballot by the registered voters in the territorial constituency concerned: Provided that a registered voter in the district shall be entitled to contest from any territorial constituency of the Zilla Parishad. (2) For purposes of preparation and publication of the electoral roll for the elections to the office of member under this section, the provisions of sections 11 and 12 shall, mutatis mutandis apply subject to such rules as may be made in this behalf. 180. Reservation of seats of members of Zilla Parishad:- (1) In every Zilla Parishad, out of the total strength of elected members determined under section 179, the Commissioner shall, subject to such rules as may be prescribed, by notification, reserve, – (a) such number of seats to the Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election to the Zilla Parishad as the population of the Scheduled Castes or as the case may be Scheduled Tribes in the District bears to the total population of the District and such seats may be allotted by rotation to different constituencies in a District in the manner prescribed; 63 [* * *] (c) not less than one-third of the total number of seats reserved under 64[clause (a) and sub-section 1A] for women belonging to the Scheduled Castes, Scheduled Tribes or as the case may be, the Backward Classes; (d) not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes, Scheduled Tribes and backward classes) of the total number of seats to be filled by direct election to the Zilla Parishad for women and such seats may be allotted by rotation to different constituencies in the district in the manner prescribed. 65

[(1A) In addition to the reservation of seats under sub-section (1), there shall be reserved for the Backward Classes such number of seats as may be allocated to them in each Zilla Parishad in the manner prescribed; so however that the number of offices of members of Zilla Parishad in the State reserved for Backward Classes shall not be less than thirty-four per cent of the total number of offices of the members of Zilla Parishad in the State. The number of seats allocated to each Zilla Parishad shall be allotted by rotation to different territorial constituencies in the Zilla Parishad.] 63

Omitted by Section 9 (A) of Act No. 5 of 1995. Subs by Section 9 (A) (ii) of Act No. 5 of 1995. 65 Ins by Section 9 (B) of Act No. 5 of 1995. 64

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(2) Nothing in 66[sub-sections (1) and (1 A)] shall be deemed to prevent women and members of the Scheduled Castes, Scheduled Tribes or Backward classes from standing for election to the non-reserved seats in the Zilla Parishad. 181. Election of Chairperson and Vice-Chairperson:- (1) For every Zilla Parishad there shall be one Chairperson and one Vice-Chairperson who shall be 67[elected by and from among the elected members specified in clause (i) of sub-section (3) of section 177 by show of hands duly obeying the party whip given by such functionary of the recognised political party as may be prescribed]. If at an election held for the purpose no Chairperson or Vice-Chairperson is elected fresh election shall be held. The names of the Chairperson and the Vice-Chairperson so elected shall be published in the prescribed manner: Provided that if a Member of the Legislative Assembly of the State or of either House of Parliament is elected to either of the said offices, he shall cease to hold such office unless within fifteen days from the date of election to such office he ceases to be Member of the Legislative Assembly of the State or of either House of Parliament by resignation or otherwise. 68 [Provided further that a member voting under this sub-section in disobedience of the party whip shall cease to hold office forthwith and the vacancy caused by such cessation shall be filled as a casual vacancy.] 69

[(2) Out of the total number of offices of Chairperson in the State, the Commissioner shall, subject to such rules as may be prescribed, by notification reserve,– (a) such number of offices to the members belonging to Scheduled Castes and Scheduled Tribes as may be determined by him, subject to the condition that the number of offices so reserved shall bear, as nearly as may be, the same proportion to the total number of offices to be filled in the State as the population of the Scheduled Castes or as the case may be, the Scheduled Tribes in the State bears to the total population of the State and such offices may be allotted by rotation to different Zilla Parishads in the State in the manner prescribed; (b) thirty-four per cent of the total number of such offices of Chairperson in the State for Backward Classes; and such offices may be allotted by rotation to different Zilla Parishads in the State in the manner prescribed; (c) not less than one-third of the total number of offices reserved under clauses (a) and (b) for women belonging to the Scheduled Castes, Scheduled Tribes, or as the case may be, the Backward Classes; and (d) not less than one-third (including the number of offices reserved for women belonging to Scheduled Castes, Scheduled Tribes and the backward classes) of the total number of offices to be filled in the State for women and such offices may be allotted by rotation to different Zilla Parishads in the State in the manner prescribed.] (3) The offices reserved for Scheduled Castes, Scheduled Tribes, Backward Classes and Women may be allotted by rotation to different Zilla Parishads in the different regions in the State in the manner prescribed. (4) The first meeting of the Zilla Parishad to elect a Chairperson and Vice-Chairperson shall be called as soon as may be, after the results of the ordinary elections to the office of elected members of the Zilla Parishad have been published. The notice of the date and time of the meeting for

66

Subs Section 9 (C) of Act No. 5 of 1995. Subs by Section 10 (A) (i) of Act No. 5 of 1995. 68 Added by Section 10 (A) (ii) of Act No. 5 of 1995. 69 Subs by Section 10 (B) of Act No. 5 of 1995. 67

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the election of Chairperson and Vice-Chairperson shall be given to the elected members in the prescribed manner: Provided that if, for any reason, the election of the Chairperson or Vice-Chairperson is not held on the date fixed as aforesaid, the meeting for the election of the Chairperson and ViceChairperson shall be held on the next day, whether or not it is a holiday observed by the Zilla Parishad. (5) Every Chairperson or Vice-Chairperson shall cease to hold office on cessation as an elected member. (6) Save as otherwise expressly provided in, or prescribed under this Act, the term of office of the Chairperson or Vice-Chairperson who is elected at an ordinary election shall be five years from the date appointed by the Andhra Pradesh Election Commissioner for Local Bodies for the first meeting of the Zilla Parishad after the ordinary election. (7) Any casual vacancy in the office of the Chairperson or Vice-Chairperson shall be filled within a period of six months from the date of occurrence of the vacancy by a fresh election under sub-section (4) and a person elected as Chairperson or Vice-Chairperson in any such vacancy shall hold office only so long as the person in whose place he is elected would have been entitled to hold office if the vacancy had not occurred. 182. Term of office of a member of a Zilla Parishad:- Save as otherwise provided in this Act,– (i) an ex-officio member of the Zilla Parishad shall hold office so long as he continues to hold the office by virtue of which he became such ex-officio member; (ii) a member elected at an ordinary election or a co-opted member shall hold office for a term of five years from the date appointed by the Andhra Pradesh Election Commission for Local Bodies for the first meeting of the Zilla Parishad after the said ordinary election. 183. Qualification of candidates for election:- No person shall be eligible for election as member of a Zilla Parishad unless his name appears in the electoral rolls of the Zilla Parishad concerned and he has completed the age of twenty-one years. 184. Disqualifications:- (1) A member of the Zilla Parishad shall be disqualified for election as Chairperson or Vice-Chairperson if he is in arrears of any dues, otherwise than in a fiduciary capacity to any Mandal Parishad in the District or the Zilla Parishad or if he is interested in a subsisting contract made with or any work being done for any Mandal Parishad in the District or the Zilla Parishad: Provided that a person shall not be deemed to have any interest in such contract or work by reason only of his having a share or interest in – (i) a company as a mere shareholder but not as a director; or (ii) any lease, sale or purchase of immovable property or any agreement for the same; or (iii) any agreement for the loan of money or any security for the payment of money only; or (iv) any newspaper in which any advertisement relating to the affairs of any of the aforesaid Mandal Parishad or Zilla Parishad is inserted. (2) The provisions of sections 18, 19, 20, 21 and 22 shall apply to a member of the Zilla Parishad as they apply to a member of the Gram Panchayat subject to the variations that the expressions, "Gram Panchayat," "Executive Authority", "Sarpanch", "Upa-Sarpanch", the expressions "Zilla Parishad", "Chief Executive Authority", "Chairperson", "Vice-Chairperson" and "Chief Executive Authority" shall respectively be substituted: Provided that nothing in clause (b) of section 20 shall apply to a member of the Zilla Parishad specified in clauses (ii) to (iv) of sub-section (3) of section 177.

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185. Resignation of Chairperson, Vice-Chairperson or member: The Chairperson, the ViceChairperson, an elected member or co-opted member may resign his office in such manner as may be prescribed. 186. Appointment of Chief Executive Officer and his powers and functions:- (1) There shall be Chief Executive officer for every Zilla Parishad who shall be appointed by the Government. (2) Every Chief Executive Officer shall be liable to be transferred by the Government. (3) Save as otherwise expressly provided by or under this Act, the executive power for the purpose of carrying out the provisions of this Act, shall vest in the Chief Executive Authority who shall – (a) exercise all the powers and perform all the functions specially conferred or imposed upon him by or under this Act, or under any other law for the time being in force; and (b) lay down the duties of all officers and servants of, or holding office under Zilla Parishad in accordance with the rules made by the Government. (4) Subject to the provisions of this Act, and the rules made thereunder, the Chief Executive Officer, – (a) shall be entitled to – (i) attend the meeting of the Zilla Parishad or any of its Standing Committees (including any meeting of the Mandal Parishad) and take part in the discussions thereat but shall not be entitled to vote or to move any resolution; (ii) call for any information, return, statement of account or report from any officer or servant of, or holding office under the Zilla Parishad or a Mandal Parishad. (b) shall exercise supervision and control over the acts of the officers and servants holding office under the Zilla Parishad or the institutions thereunder in matters of executive administration and those relating to accounts and records of the Zilla Parishad or the institutions thereunder; (c) shall have the custody of all papers and documents connected with the proceedings of the Zilla Parishad and of its Standing Committees; (d) shall be responsible for implementing the resolutions of the Zilla Parishad and of the standing Committees thereof; (e) shall supervise and control the execution of all activities of the Zilla Parishad; (f) shall take necessary measures for the speedy execution of all works and development schemes of the Zilla Parishad; (g) shall have the power to enter upon and inspect any work, scheme or institution under the management of the Zilla Parishad; (h) shall have the power to enter upon and inspect any work, scheme or institution under the management of a Mandal Parishad if the Zilla Parishad or any of its Standing Committees so direct; (i) shall be the competent authority to enter into agreements and to sign and execute them in the name and on behalf of the Zilla Parishad from time to time; (j) shall implement such specific directions issued by the Zilla Parishad as it may think fit regarding the performance by him of any of the functions assigned to him under the act: Provided that such directions are in conformity with the terms and conditions governing planning, community development and other development activities entrusted by the Government or any other authority; (k) shall immediately execute the orders passed by the Government in exercise of the powers conferred by the Act and rules made thereunder or any other law for the time being in force

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and shall forthwith send a compliance report to the Government and place a copy thereof before the Chairperson and Vice-Chairperson; (l) shall exercise such other powers and perform such other functions as may be prescribed. (5) The Chief Executive Officer shall, with the approval of, or on the direction of the Chairperson convene the meetings of the Zilla Parishads so that at least one meeting of the Zilla Parishad is held every month and if the Chief Executive Officer fails to discharge that duty, with the result that no meeting of the Zilla Parishad is held within a period of ninety days from the last meeting, he shall be liable to disciplinary action under the relevant rules: Provided that where the Chairperson fails to give his approval for convening the meeting so as to hold a meeting within the period of ninety days aforesaid the Chief Executive Officer may himself convene the meeting in the manner prescribed. (6) Subject to the provisions of section 195 the staff borne on the establishment of the Zilla Parishad and the staff working in institutions and schemes transferred by the Government or the Head of Department of Government to the Zilla Parishad shall be under the administrative control and supervision of the Chief Executive Officer. (7) The Government shall pay out of the Consolidated Fund of the State, the salaries, allowances, leave allowances, pension and contributions, if any, towards the provident fund or provident fund-cum-pension fund of the Chief Executive Officer appointed under sub-section (1). (8) The Government shall have power to make rules to regulate the classification and methods of recruitment, conditions of service, pay and allowances and disciplinary conduct of the Chief Executive Officer appointed under sub-section (1). 187. Standing Committees of a Zilla Parishad: (1) For every Zilla Parishad there shall be constituted the following standing Committees, the subjects assigned to each such standing committee being those specified against it, namely:(i) Standing Committee for Planning and Finance: District Plan, budget, taxation, finance and coordination of the work relating to other committees. (ii) Standing Committee for Rural Development: Poverty Alleviation Programme, Area Development Programmes, employment, housing, cooperation, thrift and small savings, Industries including cottage, village and small scale industries, trusts and statistics. (iii) Standing Committee for Agriculture: Agriculture, Animal Husbandry, soil reclamation including contour bunding, social forestry, fisheries and sericulture. (iv) Standing Committee for Education and Medical Services: Education including Social Education, medical services, public health and sanitation including drainage, relief for distress in grave emergencies. (v) Standing Committee for Women Welfare: Development of Women and welfare of children. (vi) Standing Committee for Social Welfare: Social Welfare of Scheduled Caste, Scheduled Tribes and Backward Classes and cultural affairs. (vii) Standing Committee for Works: Communications, rural water supply, power and irrigations. (2) Every standing Committee shall consist of the Chairperson of the Zilla Parishad who shall be ex-officio member and such other members 70[as may be elected from among the members of the Zilla Parishad] in accordance with the rules made in that behalf. (3) The Vice-Chairperson shall be ex-officio Member and Chairperson of the Standing Committee for Agriculture, two offices of the Chairperson of the Standing Comittees shall be filled by 70

Subs by Section 11 of Act No. 5 of 1995.

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nomination by the Chairperson of the Zilla Parishad from among the women members of the Zilla Parishad in the manner prescribed and the Chairperson of the Zilla Parishad shall be the Chairperson of the rest of the four offices of the Chairperson of the Standing Committees. (4) The powers and functions of the Standing Committee, the permanent invitees to it and other incidental and consequential matters shall be such as may be prescribed. (5) The District Collector shall have right to participate in the meetings of all Standing Committees without voting rights. (6) The decisions of the Standing Committees shall be subject to ratification by the general body of the Zilla Parishad which shall have the power to approve, modify, rescind or reverse them. 188. Permanent invitees to Zilla Parishad:- (1) The following shall be the permanent invitees to the meetings of the Zilla Parishad: (i) The Chairperson, District Co-operative Marketing Society; (ii) The Chairperson, Zilla Grandhalaya Samstha; (iii) The Chairperson, District Co-operative Central Bank; (iv) The District Collector; (v) All Presidents of Mandal Parishads in the District. (2) The permanent invitees shall be entitled to participate in the meetings of the Zilla Parishad without right to vote. 189. Special invitees: (1) The Chairperson or Vice-Chairperson of a Zilla Parishad or the Chairperson of a Standing Committee thereof may, for purposes of consultation, invite any person other than an office bearer of any political party having experience and specialised knowledge of any subject under its consideration to attend its meeting. Such persons shall have the right to speak in and otherwise to take part in the proceedings of such meeting, but shall not, by virtue of this section, be entitled to vote at any such meeting. (2) A person attending a meeting under sub-section (1) shall be entitled to such allowances as may be prescribed. 190. Rules for conduct of business at meetings:- Every Zilla Parishad or a Standing Committee thereof shall in regard to the conduct of business at its meetings follow such rules as may be prescribed. 191. Power of Zilla Parishad or its Standing Committee to call for documents from Chief Executive Officer:- A Zilla Parishad or a Standing Committee thereof may, at any time require the Chief Executive Officer to furnish any document in his custody and he shall comply with every such requisition. 192. Powers and functions of the Zilla Parishad:- (1) Every Zilla Parishad shall exercise such powers and perform such functions as may be entrusted to it by rules made in this behalf with regard to the subjects enumerated in the First Schedule. The Zilla Parishad shall also have the power to – (i) examine and approve the budgets of Mandal Parishads in the district; (ii) distribute the funds allotted to the district by the Central or State Government among the Mandal Parishads and Mandals in the district for which Mandal Parishad are not constituted; (iii) co-ordinate and consolidate the plans prepared in respect of the Mandals in the district and prepare plans in respect of the entire district; (iv) secure the execution of plans, projects, schemes or other works either solely relating to the individual Mandals or common to two or more Mandals in the district;

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(v) supervise generally the activities of the Mandal Parishads in the district; (vi) exercise and perform such of the powers and functions of the District Board including the powers to levy any tax or fees, as may be transferred to it under this Act; (vii) exercise and perform such other powers and functions in relation to any development programme as the Government may by notification confer on or entrust to it; (viii) advise Government on all matters relating to development activities and maintenance of services in the district, whether undertaken by local authorities or Government; (ix) advise Government on the allocation of work among Gram Panchayats and Mandal Parishads and coordination of work between the said bodies and among the various Gram Panchayats themselves; (x) advise Government on matters concerning the implementation of any statutory or executive order specially referred by the Government to the Zilla Parishad; (xi) collect such data as it deems necessary; (xii) publish statistics or other information relating to the activities of the local authorities; (xiii) require any local authority to furnish information regarding its activities; (xiv) accept trusts relating exclusively to the furtherance of any purpose for which its funds may be applied; (xv) establish, maintain, or expand secondary, vocational and industrial schools; (xvi) borrow money for carrying out the purposes of this Act with the previous approval of the Government and subject to such terms and conditions as may be prescribed. (2) The Zilla Parishad may, with the approval of the Government levy contributions from the funds of the Mandal Parishads in the district. 193. Powers and functions of Chairperson and Vice-Chairperson of the Zilla Parishad:- (1) The Chairperson of Zilla Parishad shall– (a) exercise administrative control over the Chief Executive Officer for the purposes of implementation of the resolutions of the Zilla Parishad or any Standing Committee thereof; (b) preside over and conduct the meetings of the Zilla Parishad; (c) have full access to all records of the Zilla Parishad. (2) The Vice-Chairperson shall exercise such powers and perform such functions of the Chairperson as the Chairperson may, from time to time delegate to him in writing. (3) When the office of the Chairperson is vacant, the Vice-Chairperson of the Zilla Parishad shall exercise the powers and perform the functions of the Chairperson until a new Chairperson is elected. (4) If the Chairperson has been continuously absent from the district for more than fifteen days or is incapacitated for more than fifteen days his powers and functions during such absence or incapacity shall devolve on the Vice-Chairperson. (5) When the office of the Chairperson is vacant or the Chairperson has been continuously absent from the district for more than fifteen days or is incapacitated for more than fifteen days and there is either a vacancy in the office of the Vice-Chairperson or the ViceChairperson has been continuously absent from the district for more than fifteen days or is incapacitated for more than fifteen days, the powers and functions of the Chairperson shall devolve on a member of the Zilla Parishad appointed by the Government. The member so appointed shall be styled as the temporary chairperson and he shall exercise the powers and perform the functions of the Chairperson subject to such restrictions and conditions as may be prescribed until a new Chairperson or Vice-Chairperson assumes office after his election, or until the Chairperson or the ViceChairperson returns to the district or recovers from his incapacity, as the case may be.

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(6) It shall be the duty of the Chairperson or the person for the time being exercising the powers and performing the functions of the Chairperson to convene the meetings of the Zilla Parishad so that at least one meeting of the Zilla Parishad is held in every ninety days. If the Chairperson or such person fails to discharge that duty with the result that no meeting is held within the said period of ninety days or within thirty days following such period he shall with effect from the date of expiration of thirty days aforesaid cease to be the Chairperson or as the case may be cease to exercise the powers and perform the functions of the Chairperson, unless such cessation has otherwise occurred before that date, and for a period of one year from that date he shall not be eligible to be elected as Chairperson or to exercise the powers and perform the functions of the Chairperson: Provided that in reckoning any such period of ninety days or the period of thirty days following such period as the case may be referred to above any public holiday shall be excluded. (7) Where the District Collector is satisfied that the Chairperson or the person for the time being exercising the powers and performing the functions of the Chairperson has ex-facie ceased to be the Chairperson or as the case may be ceased to exercise the powers and functions of the Chairperson under sub-section (6) he shall forthwith intimate that fact by registered post to the Chairperson or such person. 194. Rights of individual members to draw attention in respect of Zilla Parishad Works:- Any member of a Zilla Parishad may draw the attention of the Chairperson or Chief Executive Officer of the Zilla Parishad to any neglect in the execution of Zilla Parishad work to any waste of Parishad property or to the needs of any locality and may suggest any improvement which may appear desirable. 195. Officers and other employees of the Zilla Parishad:- (1) The Government may, at any time create such posts of officers and other employees of a Zilla Parishad as they may consider necessary for carrying out the purposes of this Act. (2) All appointments to the posts created under sub-section (1) and transfer of the holders of such posts shall be made, subject to the provisions of the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984 (Act 23 of 1984), the Andhra Pradesh (Regulation of Appointments to Public Services and Rationalisation of Staff Pattern and Pay Structure) Act, 1994, (Act 2 of 1994), and such rules as may be made under the proviso to Article 309 of the Constitution. (3) The Government shall pay, out of the Consolidated Fund of the State, the salaries, allowances, leave allowances, pension and contributions, if any, towards the provident fund or of a pension cum-provident fund of the officers and other employees of a Zilla Parishad who hold any of the posts referred to in sub-section (1). (4) The classification and methods of recruitment, conditions of service, pay and allowances and discipline and conduct of the officers and the employees referred to in sub-section (1), shall be regulated in accordance with the provisions of the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984 (Act 23 of 1984), the Andhra Pradesh (Regulation of Appointments to Public Services and Rationalisation of Staff Pattern and Pay Structure) Act, 1994 (Act, 2 of 1994) and such rules as may be made under the proviso to Article 309 of the Constitution. Until the rules in that behalf are so made, the law for the time being in force regulating the recruitment and conditions of service, pay and allowances and discipline and conduct, applicable to such holder shall continue to apply to such holder. (5) The Government, may from time to time, by order give such directions to any Parishad or any officer, authority or person thereof, as may appear to them to be necessary for the purpose of giving effect to the provisions of this section; and the Zilla Parishad, officer, authority or person shall comply with all such directions.

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196. Allowances for attending meeting of a Zilla Parishad or a Standing Committee:- (1) There shall be paid to the non-official members of a Zilla Parishad and a Standing Committee thereof such allowances as may be prescribed for attending a meeting of the Zilla Parishad or such committee. (2) There shall be paid to the Chairperson or Vice-Chairperson of the Zilla Parishad in respect of their/his tours on duty, whether within or outside the district but not outside the State, such allowances as may be prescribed. 197. Funds of the Zilla Parishad:- (1) All moneys received by the Zilla Parishad shall constitute a fund called the Zilla Parishad Fund and shall be applied for the purposes specified in this Act and for such other purposes and in such manner as may be prescribed. (2) All moneys received by the Zilla Parishad shall be lodged in the nearest Government Treasury: 71 [Provided that the amounts received as funds under the Jawahar Rozgar Yojana, Employment Assurance Scheme or other Wage Employment Schemes shall be lodged in nearby Nationalised Banks or Co-operative Banks or Post Offices in such manner as may be prescribed.] (3) All orders or cheques against the Zilla Parishad Fund shall be signed by the Chief Executive Authority. 198. Income and expenses of a Zilla Parishad:- (1) The sources of income of Zilla Parishad shall consist of– (i) the Central or State Government funds allotted to the Zilla Parishad; (ii) grants from all India bodies and Institutions for the development of cottage, village and small scale industries and the like; 72 [(iii) such share of the State taxes or fees as may be prescribed;] (iv) proceeds from taxes or fees which the Zilla Parishad may, under any law, levy; (v) income from endowments or trusts administered by the Zilla Parishad; 73 [* * *] 74 (vi) donations and contributions from the Mandal Parishads, or from the public in any form; (vii) such contributions as the Zilla Parishad may levy from the Mandal Parishad with the previous approval of the Government; (viii) any other income from remunerative enterprises and the like.] (2) The Government shall also make an annual grant at the rate of two rupees per person residing in the District calculated on the basis of the last preceding census of which figures are available. (3) The expenses of the Zilla Parishad shall include the salaries and allowances of its officers and other employees, the allowances to be paid under section 189 and section 196, any item of expenditure directed by the Government for carrying out the purposes of this Act and such other expenses as may be necessary for such purposes. 199. The Budget of the Zilla Parishad:- (1) The Chief Executive Officer shall in each year, frame and place before the prescribed date, a budget showing the probable receipts and expenditure during

71

Added by Section 4 of Act No. 16 of 1998. Subs. by Section 6(i) of Act. No. 37 of 2001. 73 Omitted by Section 6(ii) of Ibid. 74 Renumbered by Section 6(iii) of Ibid. 72

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the following year, and the Zilla Parishad shall sanction the budget, with such modifications, if any, as it thinks fit. (2) The budget so sanctioned shall be submitted to the Government by the Chief Executive Officer through the Chairperson on or before such date as may be fixed by the Government and if the Government are satisfied that adequate provision has not been made therein or that it is otherwise unsatisfactory for giving effect to the provisions of this Act, they shall have the power to approve the budget with such modifications as they may consider necessary to secure such provision. (3) If, for any reason, the budget is not sanctioned by the Zilla Parishad under sub-section (1) before the date referred to in sub-section (2), the Chief Executive Officer shall submit the budget to the Government who shall thereupon approve the budget as it were submitted to them under subsection (2). (4) If, in the course of a year, the Zilla Parishad finds it necessary to make any alterations in the budget with regard its receipts or items of expenditure a revised or supplemental budget may be framed, submitted and sanctioned or approved as far as may be, in the manner provided in subsections (1), (2) and (3).

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Part V CONSTITUTION OF ANDHRA PRADESH ELECTION COMMISSION FOR LOCAL BODIES CONDUCT OF ELECTION AND ELECTION OFFICERS Chapter I ELECTION COMMISSION AND CONDUCT OF ELECTIONS 200. Constitution of Andhra Pradesh Election Commission for Local Bodies:- (1) There shall be constituted a State Election Commission for Local Bodies for the superintendence, direction and control of the preparation of electoral rolls for, and the conduct of elections to, all the Panchayat Raj Institutions governed by this Act. (2) The said Andhra Pradesh. Election Commission for Local Bodies shall consist of a Andhra Pradesh. Election Commissioner for Local Bodies. The Governor on the recommendation of the Government shall appoint a person who is holding or who has held an office not less in rank than that of a Principal Secretary to Government as Andhra Pradesh Election Commissioner for Local Bodies. (3) The conditions of service and tenure of office of the Andhra Pradesh. Election Commissioner for Local Bodies shall be such as the Governor may, by rule, determine: Provided that the Andhra Pradesh Election Commissioner for Local Bodies shall not be removed from his office except in like manner and on the like grounds as a Judge of a High Court and the conditions of service of the Andhra Pradesh Election Commissioner for Local Bodies shall not be varied to his disadvantage after his appointment. 201. Powers and functions of the Andhra Pradesh Election Commissioner for Local Bodies:- (1) All elections to the Panchayat Raj Institutions shall be held under the supervision and control of the Andhra Pradesh Election Commission for Local Bodies and for this purpose it shall have power to give such directions as it may deem necessary to the Commissioner, District Collector or any officer or servant of the Government and the Panchayat Raj Institutions so as to ensure efficient conduct of the elections under this Act. (2) The preparation of electoral rolls for the conduct of all elections under the Act shall be done under the supervision and control of the Andhra Pradesh Election Commission for Local Bodies. (3) For the purpose of this section the Government shall provide the Andhra Pradesh Election Commission with such staff as may be necessary. (4) On the request of the Andhra Pradesh Election Commission for Local Bodies, the State Government shall place at the disposal of the Commission such staff of the State Government, Gram Panchayats, Mandal Parishads and Zilla Parishad for the purpose of conduct of elections under this Act. (5) The Andhra Pradesh Election Commissioner for Local Bodies may, subject to control and revision delegate his powers to such officers as he may deem necessary.

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[201-A. Voting machines at elections: Notwithstanding anything contained in this Act or the rules made thereunder, the giving and recording of votes by voting machines in such manner as may be prescribed, may be adopted in such Ward or Wards or Constituency or Constituencies as the Andhra Pradesh Election Commission for Local Bodies may, having regard to the circumstances of each case, specify. Explanation:- For the purpose of this section, "Voting Machines” means any machine or apparatus whether operated electronically or otherwise used for giving or recording of votes and any reference to a ballot box or ballot paper in this Act or the rules made threunder shall, save as otherwise provided, be construed as including a reference to such voting machine wherever such voting machine is used at any election.] 202. Symbols for elections under the Act:- The Andhra Pradesh Election Commission for Local Bodies shall, by notification, specify the symbols that may be chosen by candidates contesting any election under this Act and the restrictions to which their choice shall be subject: 76

[Provided that the Andhra Pradesh Election Commission for Local Bodies shall not in the case of elections to Gram Panchayats allot to any contesting candidate any symbol reserved for a recognised political party but in the case of elections to Mandal Parishads and Zilla Parishads, the State Election Commission shall allot symbols including the symbols reserved for a recognised political party, where any candidate is set up by such political party.] Explanation:- In this section, the term "recognised political party" shall have meaning assigned to it in the Election Symbols (Reservation and Allotment) Order, 1968, issued under Article 324 of the Constitution of India. 77

[202A. Reservations to Backward Classes: For the purpose of reserving the offices of Sarpanch, President and Chairman and members of the Gram Panchayats, Mandal Parishads and Zilla Parishads to the members belonging to the backward classes under this Act, the population figures of the backward classes, gathered in the Socio-Economic Survey conducted by the Andhra Pradesh Backward Classes Co-operative Finance Corporation Limited, Hyderabad, shall be taken as the basis.] 203. Reservation of offices 78to cease on the expiration of the period specified in Article 334:The provisions of this Act relating to reservation of offices of Sarpanch, President and Chairman and members of the Gram Panchayats, Mandal Parishads and Zilla Parishads for the Scheduled Castes and Scheduled Tribes 79[shall cease to have effect on the expiration of the period specified in article 334 of the Constitution of India.] 204. Injunctions not to be granted in election proceedings: Notwithstanding anything in the Code of Civil Procedure, 1908, or in any other law for the time being in force, no court shall grant any permanent or temporary injunction or make any interim order restraining any proceeding which is being or about to be taken under this Act for the preparation or publication of any electoral roll or for the conduct of any election.

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Inserted by Section 5 of Act No. 26 of 2000. Subs by Section 12 of Act No. 5 of 1995. 77 Added by Section 13 of Act No. 5 of 1995. 78 Subs by Section 2(ii) of Act No. 7 of 2000. 79 Subs by Sec. 2(i) of Ibid. 76

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205. Requisitioning of premises for election purposes:- (1) If it appears to the Andhra Pradesh Election Commissioner for Local Bodies that in connection with any election held under this Act, – (a) any premises are needed for or likely to be needed for the purpose of being used as a polling station or for the storage of ballot boxes after a poll has been taken, or (b) any vehicle is needed or is likely to be needed for the purpose of transport of personnel or ballot boxes to or from any polling station, or transport of members of the police force for maintaining order during the conduct of such election, or transport of any officer or other person for performance of any duties in connection with such election, the Andhra Pradesh Election Commissioner for Local Bodies may, by order in writing, requisition such premises or such vehicle, as the case may be, and may make such further orders as may appear to him to be necessary or expedient, in connection with the requisitioning: Provided that no vehicle which is being lawfully used by a candidate or his agent for any purpose, connected with election of such candidate shall be requisitioned under this sub-section until the completion of the poll at such election. (2) The requisition shall be effected by an order in writing addressed to the person deemed by the Andhra Pradesh Election Commissioner for Local Bodies to be the owner or person in possession of the property and such order shall be served in the prescribed manner on the person to whom it is addressed. (3) Whenever any premises is requisitioned under sub-section (1), the period of such requisition shall not extend beyond the period for which such property is required for any of the purposes mentioned in that sub-section. Explanation: For purposes of this section `premises' means any land, building or part of a building and includes a hut, shed or other structure or any part thereof and `vehicle' means any vehicle used or capable of being used for the purpose of road transport, whether propelled by mechanical power or otherwise. 206. Payment of compensation:- (1) Whenever in pursuance of section 205, the Andhra Pradesh Election Commissioner for Local Bodies requisitions any premises, there shall be paid to the person interested compensation the amount of which shall be determined by taking into consideration the following namely:(i) the rent payable in respect of the premises or if no rent is so payable, the rent payable for similar premises in the locality; (ii) if in consequence of the requisition of the premises the person interested is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change: Provided that where any person interested being aggrieved by the amount of compensation so determined makes an application within the prescribed time to the Andhra Pradesh Election Commissioner for Local Bodies for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the Andhra Pradesh Election Commissioner for LocaL Bodies may determine: Provided further that where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred by the A.P. Election Commissioner for Local Bodies to an arbitrator appointed in this behalf by the said Commissioner for determination, and shall be determined in accordance with the decision of such arbitrator. Explanation:- In this sub-section, the expression "person interested" means the person who was in actual possession of the premises requisitioned under section 205 immediately before the requisition or where no person was in such actual possession, the owner of such premises.

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(2) Whenever in pursuance of section 205, the A.P. Election Commissioner for Local Bodies requisitions any vehicle, there shall be paid to the owner thereof compensation the amount of which shall be determined by the A.P. Election Commissioner for Local Bodies on the basis of the fares or rates prevailing in the locality for the hire of such vehicle: Provided that where the owner of such vehicle, being aggrieved by the amount of compensation so determined, makes an application within the prescribed time to the A.P. Election Commissioner for Local Bodies for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the A.P. Election Commissioner for Local Bodies may determine: Provided further that where immediately before the requisitioning, the vehicle was by virtue of a hire purchase agreement, in the possession of a person, other than the owner, the amount determined under this sub-section as the total compensation payable in respect of the requisition shall be apportioned between that person and the owner in such manner as they may agree upon, and in default of agreement, in such manner as the arbitrator appointed by the A.P. Election Commissioner for Local Bodies in this behalf may decide. 207. Power to obtain information:- The A.P. Election Commissioner for Local Bodies may with a view to requisitioning any property under section 205 or determining the compensation payable under section 206 by order, require any person to furnish to such authority as may be specified in the order, such information in his possession relating to such property as may be specified. 208. Eviction from requisitioned premises:- (1) Any person remaining in possession of any requisitioned premises in contravention of any order made under section 205 may summarily be evicted from the premises by an officer empowered by the A.P. Election Commissioner for Local Bodies in this behalf. (2) Any officer so empowered may, after giving to any woman not appearing in public, reasonable warning and facility to withdraw, remove or open any lock or bolt or break open any door of any building or do any other act necessary for effecting such eviction. 209. Penalty for contravention of any order regarding requisitioning:- If any person contravenes any order made under section 205 or section 207 he shall be punishable with imprisonment for a term which may extend to one year or with fine or with both. 210. Electoral officers and staff etc., deemed to be on deputation:- (1) Any officer or staff employed in connection with the preparation, revision and correction of the electoral rolls for, and the conduct of all elections shall be deemed to be on deputation to the A.P. Election Commission for Local Bodies for the period during which they are employed and such officers and staff shall during that period, be subject to the control, superintendence and discipline of the A.P. Election Commission for Local Bodies. (2) The Returning Officer, Assistant Returning Officer, Presiding Officer, Polling Officer and any other officer appointed under this Act, and any police officer designated for the time being by the State Government for the conduct of any elections shall be deemed to be on deputation to the A.P. Election Commission for Local Bodies for the period commencing on and from the date of notification calling for such elections and ending with the date of declaration of the results of such elections and such officer shall, during that period, be subject to the control, superintendence and discipline of the A.P. Election Commission for Local Bodies.

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Chapter II ELECTION OFFENCES 211. Corrupt practices:- The following shall be deemed to be corrupt practices for the purposes of this Act:– (1) Bribery, that is to say,– (A) any gift, offer or promise by a candidate or his agent or by any other person with the consent of a candidate or his election agent, of any gratification, to any person whomsoever, with the object, directly or indirectly, of inducing – (a) a person to stand or not to stand as or to withdraw or not to withdraw from being a candidate at an election, or (b) an elector to vote or refrain from voting at an election, or as a reward to(i) a person for having so stood or not stood, or for having withdrawn or not having withdrawn his candidature, or (ii) an elector for having voted or refrained from voting; (B) the receipt of, or agreement to receive, any gratification, whether as a motive or a reward(a) by a person for standing or not standing as or for withdrawing or not withdrawing from being a candidate, or (b) by any person whomsoever for himself or any other person for voting or refraining from voting or inducing or attempting to induce any elector to vote or refrain from voting, or any candidate to withdraw or not to withdraw his candidature. Explanation: For the purpose of this clause the term "gratification" is not restricted to pecuniary gratification or gratifications estimable in money and it includes all forms of entertainment and all forms of employment for reward but it does not include the payment of any expenses bonafide incurred at, or for the purpose of any election and duly entered in the account of election expenses. (2) Undue influence, that is to say, any direct or indirect interference or attempt to interfere on the part of the candidate or his agent, or of any other person with the consent of the candidate or his election agent with the free exercise of any electoral right: Provided that– (a) without prejudice to the generality of the provisions of this clause any such person as is referred to thereon, who– (i) threatens any candidate or any elector or any person in whom a candidate or an elector is interested, with injury of any kind including social ostracism and ex-communication or expulsion from any caste or community; or (ii) induces or attempts to induce a candidate or an elector to believe that he, or any person in whom he is interested will become or will be rendered an object of divine displeasure or spiritual censure, shall be deemed to interfere with the free exercise of the electoral right of such candidate or elector within the meaning of this clause; (b) a declaration of public policy, or a promise of public action, or the mere exercise of a legal right without intent to interfere with an electoral right, shall not be deemed to be interference within the meaning of this clause. (3) The appeal by a candidate or his agent or by any other person with the consent of a candidate or his election agent to vote or refrain from voting for any person on the ground of his religion, race, caste, community or language or the use of, or appeal to religious symbols or the use of, or appeal to national symbols such as the national flag or the national emblem, for the furtherance of

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the prospects of the election of that candidate or for prejudicially affecting the election of any candidate: Provided that no symbol allotted under this Act to a candidate shall be deemed to be a religious symbol or a national symbol for the purposes of this clause. (4) The promotion of, or attempt to promote, feelings of enemity or hatred between different classes of the citizens of India on grounds of religion, race, caste, community, or language by a candidate, or his agent or any other person with the consent of a candidate or his election agent for the furtherance of the prospects of the election of that candidate or of prejudicially affecting the election of any candidate. (5) The publication by a candidate or his agent or by any other person, with the consent of a candidate or his election agent or any statement of fact which is false, and which he either believes to be false, or does not believe to be true in relation to the personal character or conduct of any candidate or in relation to the candidature, or withdrawal of any candidate, being a statement reasonably calculated to prejudice the prospects of that candidate's election. (6) The hiring or procuring whether, on payment or otherwise of any vehicle or vessel by a candidate or his agent or by any other person with the consent of a candidate or his election agent, or the use of such vehicle or vessel for the free conveyance of any elector other than that the candidate himself, the members of his family or his agent to or from any polling station: Provided that the hiring of a vehicle or vessel by an elector or by several electors at their joint costs for the purpose of conveying him or them to and from any such polling station or place fixed for the poll shall not be deemed to be a corrupt practice under this clause if the vehicle or vessel so hired is a vehicle or vessel not propelled by mechanical power: Provided further that the use of any public transport vehicle or vessel by any elector at his own cost for the purpose of going to or coming from any such polling station or place fixed for the poll shall not be deemed to be a corrupt practice under this clause. Explanation:- In this clause, the expression "vehicle" means any vehicle used or capable of being used for the purpose of road transport, whether propelled by mechanical power or otherwise and whether used for drawing other vehicles or otherwise. 80 [(6A) The incurring or authorising of expenses in contravention of section 230A.] (7) The obtaining or procuring or abetting or attempting to obtain or procure by a candidate or his agent, or by any other person with the consent of a candidate or his election agent, any assistance (other than the giving of vote) for the furtherance of the prospects of that candidate's election, from any person in the service of the State, Central Government, local authority or a corporation owned or controlled by the State or Central Government: Provided that where any person, in the service of the State or Central Government or a local authority in the discharge or purported to discharge of his official duty, makes any arrangements or provides any facilities or does any other act or thing, for to or in relation to, any candidate or his agent or any other person acting with the consent of the candidate or his election agent (whether by reason of the office held by the candidate or for any other reason), such arrangements, facilities or act or thing shall not be deemed to be assistance for the furtherance of the prospects of that candidate's election. Explanation-: (1) In this section, the expression “agent” includes an election agent, a polling agent, and any person who is held to have acted as an agent in connection with election with the consent of the candidate. (2) For the purpose of clause (7), a person shall be deemed to assist in the furtherance of the prospects of a candidate's election if he acts as an election agent of that candidate. 80

Added by Section 6 of Act No. 26 of 2000

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(3) For the purpose of clause (7) notwithstanding anything contained in any other law, the publication in the Andhra Pradesh Gazette of the appointment, resignation, termination of service, dismissal or removal from service of a person in the service of the Government shall be conclusive proof – (i) of such appointment, resignation, termination of service, dismissal or removal from service, as the case may be; and (ii) where the date of taking effect of such appointment, resignation, termination of service, dismissal or removal from service, as the case may be, is stated in such publication, also of the fact that such person was appointed with effect from the said date, or in the case of resignation, termination of service, dismissal or removal from service, such person ceased to be in such service with effect from the said date. 212. Punishment for corrupt practice:- If any person is guilty of any such corrupt practices as specified in section 211 or in connection with an election he shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to three thousand rupees. 213. Promoting enemity between classes in connection with election:- Any person who in connection with an election under this Act, promotes or attempts to promote on grounds of religion, race, caste, community or language, feelings of enemity or hatred, between different classes of the citizens of India shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to three thousand rupees. 214. Prohibition of public meetings on the day preceding the pre-election day and on the election day: 81[(1) No person shall convene, hold or attend any public meeting in any polling area during the period of forty eight hours prior to the hour fixed for the commencement of the poll in the case of elections to Zilla Parishad and Mandal Parishads and during the period of twenty-four hours prior to the hour fixed for commencement of the poll in the case of elections to Gram Panchayats.] (2) Any person who convenes or holds a public meeting in contravention of the provisions of sub-section (1) shall be punishable with imprisonment which may extend to three years and with fine which may extend to three thousand rupees. 215. Disturbance at election meetings:- (1) Any person who at a public meeting to which this section applies acts or incites others to act in a disorderly manner for the purpose of preventing the transaction of the business for which the meeting was called together, shall be punishable with fine which may extend to two hundred and fifty rupees. (2) This section applies to any public meeting of a political character held in any constituency between the date of the issue of notification under this Act calling upon the constituency to elect a member or members or office bearers of a local authority and the date on which such election is held. (3) If any police officer reasonably suspects any person of committing an offence under sub-section (1) he may, if requested to do by the Chairman of the meeting require that person to declare to him immediately his name and address and, if that person refuses or fails so to declare his name and address or if the police officer reasonably suspects him of giving a false name or address, the police officer may arrest him without warrant.

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216. Restrictions on the printing of pamphlets, posters etc.:- (1) No person shall print or publish or cause to be printed or published, any election pamphlet or poster which does not bear on its face the names and addresses of the printer and the publisher thereof. (2) No person shall print or cause to be printed any election pamphlet or poster,– (a) unless a declaration as to the identity of the publisher thereof, signed by him and attested by two persons to whom he is personally known, is delivered by him to the printer in duplicate; and (b) unless, within a reasonable time after the printing of the document, one copy of the declaration is sent by the printer, together with one copy of the document,– (i) where it is printed in the capital of the State, to the A.P. Election Commissioner for local bodies, and (ii) in any other case, to the District Magistrate of the district in which it is printed. (3) For the purpose of this section,– (a) any process for multiplying copies of a document other than copying it by hand, shall be deemed to be printing and the expression `printer' shall be construed accordingly; and (b) "election pamphlet or poster" means any printed pamphlet, hand-bill or other document distributed for the purpose or promoting or prejudicing the election of a candidate or group of candidates or any play card or poster having reference to an election, but does not include any hand-bill, play card or poster merely announcing the date, time, place and other particulars of an election meeting or routine instructions to election agents or workers. (4) Any person who contravenes any of the provisions of sub-section (1) or sub-section (2) shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees or with both. 217. Maintenance of secrecy of voting:- (1) Every Officer, clerk, agent or other person who performs any duty in connection with the recording or counting of votes at an election shall maintain, and aid in maintaining, the secrecy of the voting and shall not (except for some purpose authorised by or under any law) communicate to any person any information calculated to violate such secrecy. (2) Any person who contravenes provisions of sub-section (1) shall be punishable with imprisonment for a term which may extend to three months or with fine or with both. 218. Officers etc, at elections not to act for candidates or to influence voting:- (1) No person who is a District Election Officer or a Returning Officer, or an assistant returning officer, or a presiding officer or polling officer at an election, or an officer or clerk appointed by the returning officer or the presiding officer to perform any duty in connection with an election shall in the conduct or the management of the election do any act other than the giving of vote for the furtherance of the prospects of the election of a candidate. (2) No such person as aforesaid, and no member of a police force, shall endeavour,– (a) to persuade any person to give his vote at an election, or (b) to dissuade any person from giving his vote at an election, or (c) to influence the voting of any person at an election in any manner. (3) Any person who contravenes the provisions of sub-section (1) or sub-section (2) shall be punishable with imprisonment which may extend to six months or with fine or with both. 219. Prohibition of canvassing in or near polling stations:- (1) No person shall, on the date or dates on which a poll is taken at any polling station, commit any of the following acts within the polling station or in any public or private place within a distance of one hundred metres of the polling station, namely:(a) canvassing for votes; or

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(b) soliciting the vote of any elector; or (c) persuading any elector not to vote for any particular candidate; or (d) persuading any elector not to vote at the election; or (e) exhibiting any notice or signs (other than an official notice) relating to the election. (2) Any person who contravenes the provisions of sub-section (1) shall be punished with fine which may extend to two hundred and fifty rupees. 220. Penalty for disorderly conduct in or near polling stations:- (1) No person shall, on the date or dates on which a poll is taken at any polling station, – (a) use or operate within or at the entrance of the polling station, or in any public or private place in the neighbourhood thereof, any apparatus for amplifying or reproducing the human voice, such as a megaphone or a loudspeaker, or (b) shout, or otherwise act in a disorderly manner within or at the entrance of the polling station or in any public or private place in the neighbourhood thereof, so as to cause annoyance to any person visiting the polling station for the poll, or so as to interfere with the work of the officers and other persons on duty at the polling station. (2) Any person who contravenes, or willfully aids or abets the contravention of the provisions of sub-section (1) shall be punishable with imprisonment which may extend to three months or with fine or with both. (3) If the presiding officer of a polling station has reason to believe that any person is committing or has committed an offence punishable under this section, he may direct any police officer to arrest such person, and thereupon the police officer shall arrest him. (4) Any police officer may take such steps, and use such force as may be reasonably necessary for preventing any contravention of the provisions of sub-section (1), and may seize any apparatus used for such contravention. 221. Penalty for misconduct at the polling station:- (1) Any person who during the hours fixed for the poll at any polling station misconducts himself or fails to obey the lawful directions of the presiding officer may be removed from the polling station by the presiding officer or by any police officer on duty or by any person authorised in this behalf by such presiding officer. (2) The powers conferred by sub-section (1) shall not be exercised so as to prevent any elector who is otherwise entitled to vote at a polling station from having opportunity of voting at that station. (3) If any person who has been so removed from polling station re-enters the polling station without the permission of the presiding officer he shall be punishable with imprisonment for a term which may extend to three months, or with fine, or with both. 222. Breaches of official duty in connection with elections:- (1) If any person to whom this section applies is without reasonable cause guilty of any act or omission in breach of his official duty, he shall be punishable with fine which may extend to five hundred rupees. (2) No suit or other legal proceedings shall lie against any such person for damages in respect of any such act or omission as aforesaid. (3) The persons to whom this section applies are the District Election Officers, returning officers, assistant returning officers, presiding officers, polling officers and any other person appointed to perform any duty in connection with the receipt of nominations or withdrawal of candidatures, or the recording or counting of votes at an election and the expression "official duty" shall for the purposes of this section be construed accordingly but shall not include duties imposed otherwise than by or under this Act.

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223. Penalty for Government servants etc., for acting as election agent, polling agent, or counting agent:- If any person in the service of the State or Central Government or a local authority or a Corporation owned or controlled by the State or Central Government acts as an election agent or a polling agent or counting agent of a candidate at an election he shall be punishable with imprisonment for a term which may extend to three months, or with fine or with both. 224. Offence of booth capturing:- Whoever commits an offence of booth capturing shall be punishable with imprisonment for a term which may extend to five years and with fine which may extend to five thousand rupees. Explanation: For the purposes of this section "Booth capturing" includes, among other things, all or any of the following activities, namely:– (a) seizure of a polling station by any person or persons, making polling authorities surrender the ballot papers or voting machines and doing of any other act which effects the orderly conduct of elections; (b) taking possession of a polling station by any person or persons and allowing only his or their own supporters to exercise their right to vote and prevent others from voting; (c) threatening any elector and preventing him from going to the polling station to cast his vote; (d) seizure of a place for counting of votes by any person or persons, making the counting authorities surrender the ballot papers or voting machines and the doing of anything which affects orderly counting of ballot papers; (e) taking possession of a place for counting of votes; (f) doing by any person in the service of Government of all or any of the aforesaid activities or aiding or conniving at any such activity in the furtherance of the prospects of the election of a candidate. 225. Removal of ballot papers or ballot boxes from polling stations to be an offence:- (1) Any person who at any election fraudulently takes or attempts to take a ballot paper or ballot box out of polling station, or willfully aids or abets the doing of any such act shall be punishable with imprisonment for a term which may extend to five years and with fine which may extend upto five thousand rupees. (2) If the presiding officer of a polling station has reason to believe that any person is committing or has committed an offence punishable under sub-section (1), such officer may, before such person leaves the polling station arrest or direct a police officer to arrest such person and may cause him to be searched by a police officer: Provided that when it is necessary to cause a woman to be searched the search shall be made by another woman with strict regard to decency. (3) Any ballot paper found upon the person arrested on search shall be made over for safe custody to a police officer by the presiding officer or when the search is made by a police officer, shall be kept by such officer in safe custody. 226. Impersonation at elections:- Whoever at an election applies for a ballot paper or votes in the name of any other person, whether living or dead or in a fictitious name, or who having voted once at such election applies at the same election for a ballot paper in this own name, and whoever abets, procures or attempts to procure the voting by any person in any such way shall be punished with imprisonment for a term which may extend to five years and with fine which may extend to five thousand rupees. 227. Other offences and penalties thereunder: (1) A person shall be guilty of an electoral offence if at any election he, – (a) fraudulently defaces or fraudulently destroys any nomination paper; or

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(b) fraudulently defaces or destroys or removes any list, notice or other document affixed by or under the authority of a returning officer; or (c) fraudulently defaces or fraudulently destroys any ballot paper or the official mark of any ballot paper or any declaration or identity or official envelope used in connection with voting by postal ballot; or (d) without due authority supplies any ballot paper to any person or receives any ballot paper from any person or is in possession of any ballot paper; or (e) fraudulently puts into any ballot box anything other than the ballot paper which he is authorised by law to put in; or (f) without due authority destroys, takes, opens or otherwise interferes with any ballot box or ballot papers then in use for the purposes of the election; or (g) fraudulently or without due authority as the case may be, attempts to do any of the foregoing acts or willfully aids or abets the doing of any such acts. (2) Any person guilty of an electoral offence under this section shall, (a) if he is a returning officer or an assistant returning officer or a presiding officer at a polling station or any other officer or clerk employed on official duty in connection with the election, be punishable with imprisonment for a term which may extend to two years or with fine or with both; (b) if he is any other person, be punishable with imprisonment for a term which may extend to six months or with fine or with both. (3) For the purposes of this section a person shall be deemed to be on official duty if duty is to take part in the conduct of an election or part of an election including the counting of votes or to be responsible after an election for the used ballot papers and other documents in connection with such election, but the expression "official duty" shall not include any duty imposed otherwise than by or under this Act. 228. Penalty for offences not otherwise provided for:- Whoever does any act in contravention of any of the provisions of this Act, or of any rule, notification or order made, issued or passed, thereunder and not otherwise provided for in this Act shall, on conviction, be punished with imprisonment which may extend to two years and with fine which may extend to two thousand rupees. 229. Offences by companies:- (1) Where an offence under this Act, has been committed by a company, every person who at the time the offence was committed, was in charge of and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1) where any offence under this Act has been committed by a company and it is proved that offence has been committed with the consent or connivance or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other official shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation: For the purposes of this section, – (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director" in relation to a firm means a partner in the firm.

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II A

ELECTION EXPENSES 230. Application of Chapter:- This Chapter shall apply to candidates of any election held under this Act. 230A. Account of election expenses:- (1) Every candidate, at any election held under this Act shall, either by himself, or by his election agent, keep a separate and correct account of all expenditure incurred in connection with the election between the date on which the candidate concerned has been nominated, and the date of declaration of the result of the election both dates inclusive (herein after in this Chapter referred to as `election expenses'). Explanation I:- `Election Expenses' for purpose of this Act shall mean all expenses in connection with the election, – (a) incurred, or authorised by the contesting candidate, or by his election agent; (b) incurred by any association, or body of persons, or by any individual (other than the candidate or his election agent), aimed at promoting or procuring the election of the candidate concerned; and (c) incurred by any political party, by which the candidate is set up, so as to promote or procure his election: Provided that any expenses incurred by any political party as part of its general propaganda, (which is distinguishable from its election campaign, for the promotion or procuring the election of a particular candidate), by words, either written or spoken, or by signs or visible representations, or by audio visual devises, or through print or electronic media or otherwise, shall not constitute `election expenses' for purposes of this Act. Explanation II:- (1) For the removal of doubts, it is hereby declared that any expenses incurred in respect of any arrangements made, facilities provided or any other act, or thing done by any person in the service of the Government and belonging to any of the classes mentioned in clause (7) of section 211 in the discharge or purported discharge of his official duty as mentioned in the proviso to that clause shall not be deemed to be expenses in connection with the election incurred or authorised by a candidate or by his election agent for the purposes of this sub-section. (2) The account of election expenses shall contain such particulars, as may, by order, be specified by the State Election Commission. (3) The total of the said expenses shall not exceed such amount, as may, by order, be specified by the State Election Commission. 230B. Lodging of account with the District Election Authority:- Every contesting candidate at an election shall, within forty five days from the date of declaration of the result of the election, lodge with the District Election Authority, an account of his election expenses, which shall be a true copy of the account kept by him, or by his election agent, under section 230A.]

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Substituted by Section 7 of Act. No. 26 of 2000.

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Chapter III MISCELLANEOUS ELECTION MATTERS VACATION OF SEATS AND OFFICES 231. Adjournment of poll or countermanding of election on the ground of booth capturing:- (1) If at any election, – (a) booth capturing has taken place at a polling station or in such number of polling stations as is likely to affect the result of such election or that the result of the poll at that polling station cannot be ascertained; or (b) booth capturing takes place in any place for counting of votes in such manner that the result of the counting at that place cannot be ascertained, the returning officer shall forthwith report the matter to the A.P. Election Commissioner for Local Bodies. (2) The A.P. Election Commissioner for Local Bodies shall on the receipt of a report from the returning officer under sub-section (1) and after taking all material circumstances into account, either, – (a) declare that the poll at that polling station be void, appoint a day, and fix the hours, for taking fresh poll at that polling station and notify the date so appointed and hours so fixed in such manner as he may deem fit, or (b) if satisfied that in view of the large number of polling stations involved in booth capturing the result of the election is likely to be affected or that booth capturing had affected counting of votes in such manner as to effect the result of the election, countermand the election in that constituency. Explanation: In this section "booth capturing" shall have the same meaning as in Section 224. 232. Power to delegate:- The A.P. Election Commissioner for Local Bodies may, subject to such conditions and restrictions as the Government may, by general or special order, impose, by order in writing delegate to any officer or authority subordinate to him, either generally or as respects any particular matter or class of matters any of his powers under this Act. 233. Election petitions:- No election held under this Act shall be called in question except by an election petition presented to such authority and in accordance with such rules as may be made in this behalf. 234. Prohibition of holding dual offices and vacation of seats:- (1) No person shall be entitled to contest in the elections to the offices of member of the Gram Panchayat from more than one ward or to the office of member of the Mandal Parishad or Zilla Parishad from more than one territorial constituency. (2) No person shall be a member of the Gram Panchayat, member of the Mandal Parishad or Zilla Parishad simultaneously and if he is so elected, he shall retain only one office and vacate the other office or offices in the manner prescribed. (3) Where a person is elected to more than one office of member of the Gram Panchayat or Mandal Parishad or Zilla Parishad and Sarpanch or President or Chairperson he shall retain one office and vacate the other office or offices in the manner prescribed except when his continuance as member of the Mandal Parishad or Zilla Parishad is necessary to continue as President or as the case may be the Chairperson thereof.

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Part VI FINANCE COMMISSION 235. Constitution of Finance Commission:- (1) The Governor shall on the recommendation of the State Government constitute a Finance Commission as soon as may be within one year from the date of commencement of the Constitution (Seventy-third) Amendment Act, 1992 and thereafter on the expiration of every fifth year. (2) The Finance Commission shall consist of a Chairman and four other members of whom one shall be the Member Secretary. The Governor shall, by order appoint, on the recommendation of the Government, the Chairman and other members of the Commission. (3) The Government shall make available to the Finance Commission such staff as may be necessary for the discharge of the functions conferred on the Finance Commission. 236. Qualifications for appointment as, and the manner of selection of, members of the Commission:- The Chairman of the Commission shall be selected from among persons who have had experience in public affairs and the other members shall be selected from among persons who – (a) have special knowledge of the finances and accounts of Government; or (b) have had wide experience in financial matters and in administration; or (c) have special knowledge of economics. 237. Personal interest to disqualify members:- Before appointing a person to be a member of the Commission the Governor shall satisfy himself that the person will have no such financial or other interest as is likely to affect prejudicially his functions as a member of the Commission; and the Governor shall also satisfy himself from time to time with respect to every member of the Commission that he has no such interest and any person who is, or whom the Governor proposes to appoint to be a member of the Commission shall, whenever required by the Governor so to do, furnish to him such information as the Governor considers necessary for the performance by him of his duties under this section. 238. Disqualifications for being a member of the Commission:- A person shall be disqualified for being appointed as, or for being a member of the Commission, – (a) if he is of unsound mind; (b) if he is an undischarged insolvent; (c) if he has been convicted of an offence involving moral turpitude; (d) if he has such financial or other interest as is likely to affect prejudicially his functions as a member of the Commission. 239. Term of office of members and eligibility for reappointment:- Every member of the Commission shall hold office for such period as may be specified in the order of the Governor, appointing him, but shall be eligible for reappointment: Provided that he may, by letter addressed to the Governor, resign his office. 240. Conditions of service and salaries and allowances of members:- The members of the Commission shall render whole-time or part-time service to the Commission as the Governor in each case specify, and there shall be paid to the members of the Commission such fees or salaries and such allowances as the State Government may, by rules made in this behalf, determine.

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241. Functions of the Commission:- (1) The Finance Commission shall review the financial position of the Gram Panchayats, Mandal Parishads and Zilla Parishads and make recommendations to the Government as to, – (a) the principles which should govern – (i) the distribution between the State and the said Gram Panchayats and Parishads of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them and the allocation between the said Gram Panchayats and Parishads at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to or apportioned by, the said Gram Panchayats and Parishads; (iii) the Grant-in-Aid to the said Gram Panchayats and Parishads from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the said Gram Panchayats and Parishads. (2) The Government shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State. 242. Procedure and powers of the Commission:- (1) The Commission shall determine their procedure and in the performance of their functions shall have all the powers of a Civil Court under the Code of Civil Procedure. 1908 (Central Act 5 of 1908) while trying a suit in respect of the following matters, namely – (a) summoning and enforcing the attendance of witnesses; (b) requiring the production of any document; (c) requisitioning any public record from any court or office. (2) The Commission shall have power to require any person to furnish information on such points or matters as in the opinion of the Commission may be useful for, or relevant to, any matter under the consideration of the Commission and any person so required shall, notwithstanding anything contained in sub-section (2) of section 54 of the Indian Income-Tax Act, 1922 (Central Act 2 of 1922) or in any other law for the time being in force, be deemed to be legally bound to furnish such information within the meaning of section 176 of the Indian Penal Code. (Central Act 45 of 1860). (3) The commission shall be deemed to be a Civil Court for the purposes of sections 345 (1) and 346 of the Code of Criminal Procedure, 1973. (Central Act 2 of 1974). Explanation:- For the purposes of enforcing the attendance of witnesses, the local limits of the Commission's jurisdiction shall be the limits of the territory of the State of Andhra Pradesh.

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[Part VI-A

SPECIAL PROVISIONS RELATING TO THE PANCHAYATS, MANDAL PARISHADS AND ZILLA PARISHADS LOCATED IN THE SCHEDULED AREAS 242A Application of this Part:- (1) The provisions of this Part shall apply to the Gram Panchayats, Mandal Parishads and Zilla Parishads constituted in the Scheduled Areas in the State. (2) The provisions of this Part shall prevail over anything inconsistent therewith elsewhere in this Act. 242B. Declaration of village in Scheduled Areas:- For the purposes of section 3, a village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets thereof comprising a community or communities and managing their affairs in accordance with traditions and customs. 242C. Functions of Gram Sabha:- (1) Every Gram Sabha shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources and without detriment to any law for the time being in force, the customary mode of dispute resolution. (2) Every Gram Sabha shall, – (i) approve plans, programmes and projects for social and economic development before such plans, programmes and projects are taken up for implementation by the Gram Panchayat, at the village level; (ii) be responsible for the identification of selection of persons as beneficiaries under poverty alleviation and other programmes. (3) Every Gram Panchayat shall obtain from the Gram Sabha a certification of utilisation of funds by that Panchayat for the plans, programmes and projects referred to in sub-section (2). 242D. Reservation of seats of members of Gram Panchayat and Mandal Parishad and offices of Sarpanches of Gram Panchayats and Presidents of Mandal Parishads:- The reservation of seats in the Scheduled Areas to every Gram Panchayat and Mandal Parishad shall be in proportion to the population of the communities in that Gram Panchayat or the Mandal Parishad as the case may be: Provided that the reservation for the Scheduled Tribes shall not be less than one-half of the total number of seats: Provided further that all seats of Sarpanches of Gram Panchayats and Presidents of Mandal Parishads shall be reserved for the Scheduled Tribes. 242E. Nomination of persons:- The Government may nominate persons belonging to such Scheduled Tribes who have no representation in Mandal Parishads: Provided that such nomination shall not exceed one tenth of the total members to be elected in that Mandal Parishad.

83

Inserted by Act No. 7 of 1998.

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242F. Acquisition of land in the Scheduled Areas:- The Mandal Parishad shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before resettling or rehabilitating persons evicted by such projects in the Scheduled Areas, the actual planning and implementation of the projects in the Scheduled Areas shall be coordinated at the State level. 242G. Management of minor water bodies in the Scheduled Areas:- Planning and management of minor water bodies in the Scheduled Areas shall be entrusted to Gram Panchayats, Mandal Parishads or the Zilla Parishads, as the case may be, in such manner as may be prescribed. 242H. Minor minerals in the Scheduled Areas:- (1) The recommendations of the Gram Panchayats, made in such manner as may be prescribed, shall be taken into consideration prior to grant of prospecting licence or mining lease, for minor minerals in the Scheduled Areas. (2) The prior recommendation of the Gram Panchayat, made in such manner as may be prescribed, shall be taken into consideration for grant of concession for the exploitation of minor minerals by auction. 242 I. Powers and functions of Gram Panchayats and Mandal Parishads:- (1) The Gram Panchayat or as the case may be, the Gram Sabha shall exercise such powers and perform such functions in such manner and to such extent as may be prescribed in respect of the following matters, namely:(a) enforcement of prohibition or regulation or restriction of the sale and consumption of any intoxicant; (b) the ownership of minor forest produce; (c) prevention of alienation of land in the Scheduled Areas and restoration of any unlawfully alienated land of a Scheduled Tribe; (d) management of village markets by whatever name called; and (e) exercising control over money lending to the Scheduled Tribe; (2) The Mandal Parishad shall exercise such powers and perform such functions in such manner and to such extent as may be prescribed, in respect of the following matters, namely:(a) (b)

exercising control over institutions and functionaries in all social sectors; and control over local plans and resources for such plans including tribal sub-plans.]

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Part VII MISCELLANEOUS 243. Transfer of powers and functions of District Board to Mandal Parishad and Zilla Parishad:- (1) Notwithstanding anything in the relevant District Boards Act or any other law, the Government may, by notification and subject to such control, restrictions, conditions and reservations as may be specified therein, direct that any powers exercisable or functions performable by a District Board by or under the relevant District Boards Act or any other law for the time being in force including the powers to levy any tax or fees, shall be transferred to a Mandal Parishad or a Zilla Parishad and thereafter the Mandal Parishad or the Zilla Parishad as the case my be, shall exercise and perform the powers and functions transferred to it. (2) When any powers and functions of the District Board are transferred to a Mandal Parishad or a Zilla Parishad under sub-section (1), all references in the relevant District Boards Act or any other law for the time being in force to the District Board with reference to such powers and functions shall be construed as references to the Mandal Parishad or the Zilla Parishad, as the case may be. 244. Application of the relevant District Boards Act to Mandal Parishads and Zilla Parishads:(1) The Government may, by notification, direct that such of the provisions of the relevant District Boards Act, including the provisions relating to the levy and collection of any tax or fee as may be specified in such notification, shall apply to the Mandal Parishad and the Zilla Parishad constituted under this Act. For the purpose of facilitating the application of these provisions to the Mandal Parishad and Zilla Parishad constituted under this Act, the Government may, by notification, make such adaptations and modifications of the relevant District Boards Act and the rules made thereunder whether by way of repealing, amending or suspending any provision thereof, as may be necessary or expedient and thereupon the relevant District Boards Act and the rules made thereunder shall have effect subject to the adaptations and modifications so made. (2) Notwithstanding that no provision or insufficient provision has been made under subsection (1) for the adaptations of the provisions of the relevant District Boards Act, or the rules made thereunder, any court, tribunal or authority required or empowered to enforce these provisions may, for the purpose of facilitating their application to any Mandal Parishad or the Zilla Parishad construe these provisions in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. 245. Motion of no confidence in Upa-Sarpanch, President or Chairperson: (1) A motion expressing want of confidence in the Upa-Sarpanch or President or Vice-President or Chairperson or Vice-Chairperson may be made by giving a written notice of intention to move the motion in such form and to such authority as may be prescribed, signed by not less than one-half of the total number of members of the Gram Panchayat, Mandal Parishad, or as the case may be the Zilla Parishad and further action on such notice shall be taken in accordance with the procedure prescribed: Provided that no notice of motion under this section shall be made within two years of the date of assumption of office by the person against whom the motion is sought to be moved: Provided further that no such notice shall be made against the same person more than once during his term of office.

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Explanation:- For the removal of doubts, it is hereby declared that for the purpose of this section the expression "total number of members" means, all the members who are entitled to vote in the election to the office concerned inclusive of the Sarpanch, President or Chairperson but irrespective of any vacancy existing in the office of such members at the time of meeting: Provided that a suspended office-bearer or member shall also be taken into consideration for computing the total number of members and he shall also be entitled to vote in a meeting held under this section. (2) if the motion is carried with the support of 84[* * *] two thirds of the total number of members in the case of a Upa-Sarpanch, the Commissioner shall and in the case of the President or Vice-President or Chairperson or Vice-Chairperson, the Government shall by notification remove him from office and the resulting vacancy shall be filled in the same manner as a casual vacancy. 85 [Explanation: For the purposes of this section, in the determination of two-thirds of the total number of members, any fraction below 0.5 shall be ignored and any fraction of 0.5 or above shall be taken as one.] 246. Power to cancel or suspend resolution of a Gram Panchayat, Mandal Parishad or Zilla Parishad: (1) The Government may either suo moto or on a reference made to them by the Executive Officer or Mandal Parishad Development Officer or as the case may be, the Chief Executive Officer, in the manner prescribed by order in writing cancel any resolution passed by a Gram Panchayat, Mandal Parishad or a Zilla Parishad or any standing Committee of a Zilla Parishad if in their opinion such resolution, (a) is not legally passed, or (b) is in excess or abuse of the powers conferred by or under this Act, or any other law; or (c) on its execution is likely to cause danger to human life, health or safety or is likely to lead to a riot or affray. (2) The Government shall, before taking action under sub-section (1), give the Gram Panchayat, Mandal Parishad or the Zilla Parishad as the case may be, an opportunity for explanation. (3) If in the opinion of the District Collector, immediate action is necessary to suspend a resolution on any of the grounds referred to in clause (c) of sub-section (1), he may make a report to the Government and the Government may, by order in writing, suspend the resolution. 247. Power of Government to take action in default of a Gram Panchayat, Mandal Parishad or a Zilla Parishad:- (1) If at any time it appears to the Government that a Gram Panchayat or the Sarpanch thereof or a Mandal Parishad or the President thereof or a Zilla Parishad or the Chairperson thereof or any standing Committee of the Zilla Parishad has made default in performing any function or discharging any duty imposed by or under this Act, or any relevant law for the time being in force, the Government may, by order in writing fix a period for performing such function or discharging such duty. (2) If such function or duty is not performed or discharged by any authority aforesaid within the period so fixed, the Government may appoint some person to perform that function or discharge that duty and may direct that the expenses incurred in that regard shall be paid by the person having the custody of the Gram Panchayat Fund, Mandal Parishad Fund or the Zilla Parishad Fund, as

84 85

Omitted by Sec. 2(i) of Andhra Pradesh Act No. 8 of 2000. Added by Sec. 2(ii) of Ibid

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the case may be, in priority to any other charges against such fund except charges for the service of authorised loans. 248. Power of Government to issue directions:- (1) Notwithstanding anything contained in this Act, it shall be competent for the Commissioner or the Government to issue such directions as they may consider necessary to the Executive Officer, Mandal Parishad Development Officer or the Chief Executive Officer for the proper working of the Gram Panchayat, Mandal Parishad or as the case may be, the Zilla Parishad or for the implementation of the resolutions thereof and the Executive Officer, Mandal Parishad Development Officer or as the case may be, the Chief Executive Officer shall implement those directions, failing which, he shall be liable for disciplinary action under the relevant rules. (2) The Sarpanch of the Gram Panchayat, the President of Mandal Parishad or as the case may be, the Chairman of the Zilla Parishad shall ensure that the Executive Officer, Mandal Parishad Development Officer or as the case may be, the Chief Executive Officer implements the directions issued by the Government under sub-section (1) and shall not do anything in derogation to the directions of the Government aforesaid. The Sarpanch, the President or the Chairman who contravenes the provisions of this section shall be deemed to have willfully omitted or refused to carry out the orders of the Government for the proper working of the Gram Panchayat, Mandal Parishad or as the case may be, the Zilla Parishad within the meaning of section 249. 249. Powers of Government to remove Sarpanch, President or Chairperson etc.:- (1) If in the opinion of the District Collector the Sarpanch or the Upa-Sarpanch and in the opinion of the Government the President or the Vice-President or as the case may be, the Chairperson or the ViceChairperson, – (i) wilfully omitted or refused to carry out the orders of the Government for the proper working of the concerned local body; or (ii) abused his position or the powers vested in him; or (iii) is guilty of misconduct in the discharge of his duties; or (iv) persistently defaulted in the performance of his functions and duties entrusted to him under the Act to the detriment of the functioning of the concerned local body or has become incapable of such performance: The Collector or as the case may be, the Government, may remove such Sarpanch or UpaSarpanch, President or Vice-President or as the case may be the Chairperson or the Vice-Chairperson, after giving him an opportunity for explanation: Provided that the proceedings initiated under this sub-section may be continued notwithstanding the fact that the Sarpanch or Upa-Sarpanch, President or Vice-President, or as the case may be, the Chairperson or Vice-Chairperson ceased to hold office by resignation or other-wise and shall be concluded within two years from the date of such cessation and where on such conclusion the authority competent to remove him, records a finding after giving an opportunity of making a representation to the person concerned that the charge or charges proved against him are sufficient for his removal, then the provision of sub-section (3) shall apply to the person against whom such finding is recorded. (2) Where the Sarpanch or Upa-Sarpanch, the President or the Vice-President or the Chairperson of Vice-Chairperson is removed under sub-section (1) the vacancy shall, subject to the provisions of sub-section (3) be filled as casual vacancies. (3) A Sarpanch or Upa-Sarpanch, a President or a Vice-President or Chairperson or ViceChairperson removed from his office under this section shall not be eligible for re-election as Sarpanch or Upa-Sarpanch, President or Vice-President or Chairperson or Vice-Chairperson for a period of two years from the date of the removal.

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(4) If the District Collector is satisfied that any elected member of the Gram Panchayat or the Government are satisfied that any elected member of a Mandal Parishad or Zilla Parishad is guilty of any misconduct while acting or purporting to act in the discharge of his duties, or in the performance of the functions, under this Act, the District Collector or as the case may be, the Government may, by order, remove such member, after giving him an opportunity for explanation, and any member so removed shall not be eligible for re-election as a member for a period of two years from the date of removal. (5) Where a member of Gram Panchayat, Mandal Parishad or Zilla Parishad is removed under sub-section (4), the vacancy shall be filled in such manner and within such time as may be prescribed. (6) If the District Collector is of the opinion that a Sarpanch or a Upa-Sarpanch or any member of a Gram Panchayat or the Government are of the opinion that any President or VicePresident or the Chairperson or Vice-Chairperson or any member of a Mandal Parishad or Zilla Parishad wilfully omitted or refused to carry out the orders of Government for the proper working of the concerned local body or abused his position or the powers vested in him, and that the further continuance of such person in office would be detrimental to the interests of the concerned local body or the inhabitants of the Village, Mandal or District, the District Collector or as the case may be, Government may, by order, suspend such Sarpanch or Upa-Sarpanch or President or Vice-President or as the case may be, the Chairperson or Vice-Chairperson or member from office for a period not exceeding three months, pending investigation into the said charges and action thereon under the foregoing provisions of this section: Provided that no order under this sub-section shall be passed unless the person concerned has had an opportunity of making a representation against the action proposed: Provided further that it shall be competent for the Government to extend, from time to time, the period of suspension for such further period not exceeding three months; so however that the total period of suspenstion shall not exceed six months: Provided also that a person suspended under this sub-section shall not be entitled to exercise the powers and perform the functions attached to his office and shall not be entitled to attend the meetings of the concerned local body except a meeting held for the consideration of a no-confidence motion. (7) Any person aggrieved by an order of removal passed by the District Collector under sub-section (1) or Sub-section (4) may within thirty days from the date of the order prefer an appeal to the Government and the Government may, pending a decision on such appeal, stay the order appealed against. 250. Powers of Government to dissolve Gram Panchayat, Mandal Parishad or Zilla Parishad:(1) (i) If at any time, it appears to the Government that a Gram Panchayat, Mandal Parishad or a Zilla Parishad is not competent to perform its functions or has failed to exercise its powers or perform its functions or has exceeded or abused any of the powers conferred upon it by or under this Act, or any other law for the time being in force, the Government may direct the Gram Panchayat, Mandal Parishad or as the case may be, Zilla Parishad to remedy such incompetency, failure, excess or abuse or to give a satisfactory explanation therefor and if the Gram Panchayat, Mandal Parishad or the Zilla Parishad, fails to comply with such direction, the Government may dissolve it with effect from a specified date and reconstitute it either immediately or within six months from the date of dissolution, and cause any or all of the powers and functions of the Gram Panchayat, Mandal Parishad or the Zilla Parishad to be exercised and performed by such person or authority as the Government may appoint in that behalf during the period of its dissolution and any person or authority so appointed may, if the Government so direct, receive remuneration for the services rendered from the funds of the Gram Panchayat, Mandal Parishad or the Zilla Parishad, as the case may be.

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(ii) With effect from the date specified for the dissolution of a Gram Panchayat, Mandal Parishad or Zilla Parishad under clause (i), all its members including its Sarpanch, Upa-Sarpanch, President or Vice-President and Chairperson or Vice-Chairperson, as the case may be, shall forthwith be deemed to have vacated their offices as such and they shall not be entitled to be restored to office after the expiration of the period of dissolution. The vacancies arising out of vacation of offices under this section shall be deemed to be casual vacancies and filled accordingly within a period of six months from the date of dissolution: Provided that no casual elections to fill the vacancies under this section shall be held where the remainder of the period for which the dissolved Gram Panchayat, Mandal Parishad or, as the case may be, the Zilla Parishad would have continued had it not been dissolved is less than six months. (2) The Government may, by notification, authorise the District Collector to exercise the powers of the Government under sub-section (1) in respect of Gram Panchayats. (3) If, at any time, it appears to the Government that a Standing Committee of a Zilla Parishad is not competent to perform its functions or has failed to exercise its powers or perform its functions or has exceeded or abused any of the powers conferred upon it by or under this Act, or any other law for the time being in force, the Government may direct the Standing Committee to remedy such incompetency, failure, excess or abuse, or to give a satisfactory explanation therefor and if the Standing Committee fails to comply with such direction, the Government may dissolve the Standing Committee and direct the Zilla Parishad to re-constitute the dissolved Standing Committee immediately thereafter. 251. Acts of Gram Panchayats, Mandal Parishads and Zilla Parishads not to be invalidated by informality, vacancy, etc.:- (1) No act of a Gram Panchayat shall be deemed to be invalid by reason only of a defect in the establishment of such Gram Panchayat or on the ground that the Sarpanch, Upa-Sarpanch or any member of such Gram Panchayat was not entitled to hold, or continue in such office by reason of any disqualification or by reason of any irregularity or illegality in his election, as the case may be, or by reason of such act having been done during the period of any vacancy in the office of the Sarpanch, Upa-Sarpanch, or member of such Gram Panchayat. (2) The provisions of sub-section (1) shall mutatis-mutandis apply to the acts of a Mandal Parishad or a Zilla Parishad or a Standing Committee thereof. 252. Oath of allegiance:- (1) Every person who is elected to be the Sarpanch or member of a Gram Panchayat or the President or member of a Mandal Parishad or the Chairperson or member of a Zilla Parishad shall, before taking his seat make, at a special meeting or any other meeting of the Gram Panchayat, Mandal Parishad or the Zilla Parishad, as the case may be, an oath or affirmation of his allegiance to the Constitution of India in the form prescribed. (2) Any such Sarpanch, President or Chairperson or member who fails to make, within three months of the date on which his term of office commences, or at one of the first three meetings held after the said date, whichever is later, the oath or affirmation laid down in sub-section (1) shall cease to hold his office and his seat shall be deemed to have become vacant. (3) No such Sarpanch, President or Chairperson or member shall take his seat at a meeting of the Gram Panchayat, Mandal Parishad or, as the case may be, of the Zilla Parishad or do any act as such member unless he has made the oath or affirmation as laid down in this section. (4) Where a person ceases to hold office under sub-section (2), the Executive Officer, the Mandal Parishad Development Officer, or as the case may be, the Chief Executive Officer, shall report the same to the Gram Panchayat, Mandal Parishad or the Zilla Parishad at its next meeting and on application of such person made within thirty days of the date on which he has ceased to be Sarpanch, President or Chairperson or member under that sub-section, the Gram Panchayat, Mandal Parishad or the Zilla Parishad may grant him further time which shall not be less than four months and

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not more than nine months for making the oath or affirmation and if he makes the oath or affirmation within the time so granted, he shall, notwithstanding anything in this Act, continue to hold his office. (5) Where on an application made by a person who ceases to hold office under subsection (2), the Government are satisfied that such person for reasons beyond his control, has not been able to make the oath or affirmation within the period specified in sub-section (2) or within further time, if any, granted to him under sub-section (4), they may, by an order, grant such further time as they deem fit to the person to make the oath or affirmation. If such person makes the oath or affirmation within the time granted he shall, notwithstanding anything in this Act, continue to hold his office. 253. Administration report:- (1) Every Mandal Parishad shall furnish to the Zilla Parishad and every Zilla Parishad shall furnish to the Government a report on its administration for each year, as soon as may be, after the close of such year, in such form and with such details as may be prescribed. The Mandal Parishad shall, while furnishing the report to Zilla Parishad as aforesaid send a copy thereof to the Government. (2) The Zilla Parishad shall consider the administration report of each Mandal Parishad and forward it to the Government with its remarks. (3) The report of the Mandal Parishad shall be prepared by the Mandal Parishad Development Officer and that of Zilla Parishad by its Chief Executive Officer and the Mandal Parishad or the Zilla Parishad shall consider and forward it to the Zilla Parishad or the Government, as the case may be, with its resolution thereon. (4) The administration report of the Gram Panchayat shall be prepared by the Executive Officer if there is one and if there is no Executive Officer by the Mandal Parishad Development Officer having jurisdiction over the Gram Panchayat. The same shall be forwarded to District Panchayat Officer who shall process it in the prescribed manner. 254. Recovery of sums due to the Gram Panchayats, Mandal Parishads or Zilla Parishads as arrears of land revenue:- Any sum due to, or recoverable by, a Gram Panchayat, Mandal Parishad or a Zilla Parishad under this Act may be recovered as if it were an arrear of land revenue. 255. Power of entry of inspecting officers:- (1) Any Officer or person whom the Government may empower in this behalf may enter on and inspect, – (a) any immovable property, or any work in progress under the control of any Gram Panchayat, Mandal Parishad or the Zilla Parishad; (b) any school, hospital, dispensary, vaccination station, choultry or other institution maintained by, or under the control of any Gram Panchayat, Mandal Parishad or Zilla Parishad and any records, registers or other documents kept in such institution; (c) the office of any Gram Panchayat, Mandal Parishad or Zilla Parishad and any records, registers or other documents kept therein. (2) The Gram Panchayat, Mandal Parishad or the Zilla Parishad shall be bound to afford to the officer or person referred to in sub-section (1) such access at all reasonable times, to its property or premises and to all documents as may, in the opinion of such officer or person, be necessary to enable him to discharge his duties under the said sub-section. 256. Power to call for records etc:- The Government or any officer or person duly empowered by them in this behalf, may, – (a) call for any record, register or other document in the possession or under the control of any Gram Panchayat, Mandal Parishad or Zilla Parishad;

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(b) require any Gram Panchayat, Mandal Parishad or Zilla Parishad to furnish any return, plan, estimate, statement, account or statistics; (c) require any Gram Panchayat, Mandal Parishad or Zilla Parishad to furnish any information or report on any matter connected with such Gram Panchayat, Mandal Parishad or Zilla Parishad; and (d) record in writing for the consideration of any Gram Panchayat, Mandal Parishad or Zilla Parishad any observations, the Government, officer or person may think proper to make in regard to the proceedings or duties of such Gram Panchayat, Mandal Parishad or Zilla Parishad. 257. Protection of acts done in good faith:- No suit, prosecution or other legal proceedings shall be instituted against any person for anything which is, in good faith, done or intended to be done under this Act or under the rules made thereunder. 258. Chairperson, President, Sarpanch etc., to be public servants:- The Chairperson, the ViceChairperson or a member of a Zilla Parishad the President, the Vice-President or a member of a Mandal Parishad, the Sarpanch, Upa-Sarpanch or member of a Gram Panchayat, the Chief Executive Officer, or any Officer or servant of a Zilla Parishad or a Mandal Parishad Development Officer, the Executive Officer, or any Officer or servant of a Zilla Parishad or a Mandal Parishad or the Gram Panchayat shall be deemed to be a public servant, within the meaning of section 21 of Indian Penal Code (Central Act 45 of 1860). 259. Power of Mandal Parishad and Zilla Parishad to make bye-laws:- (1) Subject to such rules as may be made, a Mandal Parishad with the approval of the Zilla Parishad and the Zilla Parishad may, with the approval of the Government, make bye-laws for carrying out any of the purposes for which it is constituted. (2) The Government shall have power to make rules regarding the procedure for making of bye-laws under this section, the publication thereof and the date on which they shall come into effect. 260. Delegation of powers etc.:- (1) The Government may, by notification, authorise any officer or person to exercise any of the powers vested in them by this Act except the power to make rules; and may in like manner withdraw such authority. (2) The Commissioner or the District Collector may, by notification, authorise any officer or person to exercise any of the powers vested by or under this Act in the Commissioner or the District Collector, as the case may be, and may in like manner withdraw such authority. (3) The exercise of any power delegated under sub-section (1) or sub-section (2) shall be subject to such restrictions and conditions as may be prescribed or as may be specified in the notification and also to control and revision by the delegating authority, or where such authority is the Government, by such persons as may be empowered by the Government in this behalf. The Government shall also have power to control and revise the acts or proceedings of any persons so empowered. (4) The exercise of any power conferred on the Commissioner or the District Collector by any of the provisions of this Act, including sub-sections (2) and (3) of this section, shall whether such power is exercised by the Commissioner or the District Collector himself or by any person to whom it has been delegated under sub-section (2), be subject to such restrictions and conditions as may be prescribed and also to control by the Government or by such person as may be empowered by them in this behalf. The Government shall also have power to control the acts or proceedings of any persons so empowered.

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(5) (a) The Andhra Pradesh Election Commissioner for Local Bodies, may by notification, authorise any officer or person to exercise in any local area in the revenue district in regard to any Gram Panchayat or all Gram Panchayats in that area, any of the powers vested in him by or under this Act, or in regard to any Mandal Parishad or Zilla Parishad in so far as it relates to the conduct of elections under this Act, and may, in like manner, withdraw such authority. (b) The provisions of sub-sections (3) and (4) shall apply, as far as may be, in regard to the power delegated under this sub-section. (c) The Andhra Pradesh Election Commissioner for Local Bodies may appoint such number of additional, joint, deputy or assistant election authorities, as it thinks fit to exercise such powers and perform such functions as are assigned by the Andhra Pradesh Election Commission for Local Bodies. (6) A Mandal Parishad or a Zilla Parishad or any person exercising or performing any powers or functions by or under the provisions of this Act may delegate its or his powers or functions in writing to any person or authority, subject to such restrictions, limitations and conditions as may be prescribed and also to control and revision by the Government. Provided that the President of a Mandal Parishad or the Chairperson of a Zilla Parishad shall not delegate his powers to any person or authority other than the Vice-President of the Mandal Parishad or the Vice-Chairperson of the Zilla Parishad, as the case may be, if he is in office. 261. Power to transfer institutions and works:- The Government may transfer any institution or work under their management or control to a Zilla Parishad or a Mandal Parishad and Zilla Parishad may transfer any institution under its management or control to any Mandal Parishad or Gram Panchayat, subject to such conditions, limitations and restrictions as may be specified by the Government or the Zilla Parishad, as the case may be: Provided that no such transfer shall be made unless the prior consent of the concerned Zilla Parishad or Mandal Parishad, as the case may be, is obtained. 262. Emergency Powers of the Government, Commissioner and District Collector:- (1) Subject to such control as may be prescribed, the Government, the Commissioner or the District Collector may, in cases of emergency, direct or provide for the execution of any work, or the doing of any act which a Gram Panchayat or Executive Officer is empowered to execute or do, and the immediate execution or doing of which is in his opinion necessary for the safety of the public, and may direct that the expenses of executing such work or doing such act shall be paid by the person having the custody of the Gram Panchayat Fund in priority to any other charges against such fund except charges for the service of authorised loans. (2) The powers of the nature referred to in sub-section (1) may be exercised by the Government in the case of a Mandal Parishad or a Zilla Parishad subject to the variation that for the expression "Executive Authority", the expression "Mandal Parishad Development Officer" or as the case may be "Chief Executive Officer" and for the expression "Gram Panchayat Fund", the expression "Mandal Parishad Fund" or as the case may be the "Zilla Parishad Fund" is substituted. 263. Control over electrical undertakings of Gram Panchayats:- The administration by a Gram Panchayat of any undertaking for the generation, transmission, supply or use of electrical energy shall be subject to such control as may be prescribed, not inconsistent with the provisions of the Indian Electricity Act, 1910 (Central Act 9 of 1910) or the Electricity (Supply) Act, 1948 (Central Act 54 of 1948) as in force for the time being, the rules made under those Acts, and the terms of the licence granted thereunder to the Gram Panchayat.

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264. Power of review and revision by Government:- (1) The Government may, either suo motu or on application from any person interested, call for and examine the record of a Gram Panchayat, Mandal Parishad or a Zilla Parishad or of its Standing Committees or of any authority, officer or person, in respect of any proceeding to satisfy themselves as to regularity of such proceeding or the correctness, legality or propriety of any decision or orders passed therein and, if in any case, it appears to the Government that any such decision or order should be modified, annulled or reversed, or remitted for reconsideration, they may pass orders accordingly: Provided that the Government shall not pass any order prejudicial to any party unless such party has had an opportunity of making a representation. (2) The Government may stay the execution of any such decision or order pending exercise of their powers under sub-section (1) in respect thereof. (3) The Government may suo motu at any time or on an application received from any person interested within ninety days of the passing of an order under sub-section (1), review any such order if it was passed by them under any mistake, whether of fact or of law, or in ignorance of any material fact. The provisions contained in the proviso to sub-section (1) and in sub-section (2) shall apply in respect of any proceeding under this sub-section as they apply to a proceeding under subsection (1). (4) Every application preferred under sub-section (1) shall be accompanied by a fee of fifteen rupees. 265. Liability of Sarpanch, President, Chairperson etc., for loss, waste or mis-application of property:- (1) If, after giving the Sarpanch, Upa-Sarpanch, President, Vice-President, Chairperson, Vice-Chairperson or the Executive Officer, the Mandal Parishad Development Officer, the Chief Executive Authority an Opportunity of showing cause to the contrary, the Commissioner is satisfied that the loss, waste, misapplications of any money or other property owned by or vested in the Gram Panchayat, Mandal Parishad, or as the case may be, the Zilla Parishad is a direct consequence of misconduct or gross neglect, on the part of such person, the Commissioner may, by order in writing, direct such person to pay to the Gram Panchayat, Mandal Parishad or as the case may be, the Zilla Parishad before the date fixed by him, the amount required to reimburse it for such loss, waste or misapplication, unless such person proves that he had acted in good faith. (2) If the amount is not so paid, the Commissioner shall cause it to be recovered as arrears of land revenue and credited to the fund of the Gram Panchayat, Mandal Parishad or, as the case may be, Zilla Parishad. (3) An appeal shall lie within thirty days from any decision of the Commissioner under this section to the Government whose decision thereon shall be final. 266. Accounts and Audit:- (1) The accounts of the Gram Panchayats, Mandal Parishads and Zilla Parishad shall be maintained in such manner and in such form as may be prescribed. The accounts maintained by the said local bodies shall be audited by the Director of State Audit appointed under section 3 of the Andhra Pradesh State Audit Act, 1989 (Act 9 of 1989). (2) For the purpose of proper maintenance of accounts and matters connected therewith or incidental thereto, it shall be competent for the Director of State Audit to issue such directions as he deems necessary to the Chief Executive Officer, who shall ensure that the said directions are carried out by the said local bodies. 86 [(3) Notwithstanding anything contained in sub-section (1), every local body shall engage Chartered Accountants from out of the panels of Chartered Accountants made by the Director of State

86

Added by Section 11 of Act No. 22 of 2002.

Andhra Pradesh

103

Audit to get audited of the accounts maintained under sub-section (1) and for speedy finalisation of their accounts: Provided that every Sarpanch of a Gram Panchayat shall have to close the accounts of the Gram Panchayat and get them audited before the end of third quarter of the succeeding financial year.] 267. Assessments etc., not to be impeached:- (1) No assessment or demand made, and no charge imposed, under the authority of this Act, shall be impeached or affected by reasons of any clerical error or by reason of any mistake – (a) in respect of the name, residence, place of business or occupation of any persons, or (b) in the description of any property or thing, or (c) in respect of the amount assessed, demanded or charged, provided that the provisions of this Act have in substance and effect been compiled with; and no proceedings under this Act shall, merely, for defect in form, be quashed or set aside by any court. (2) No suit shall be brought in any Court to recover any sum of money collected under the authority of this Act or to recover damages on account of assessment or collection of money made under the said authority: Provided that the provisions of this Act have in substance and effect been compiled with. (3) No distraint or sale under this Act shall be deemed unlawful, nor shall any person making same be deemed a trespasser, on account of any error, defect, or want of form in the bill, notice, schedule, form, summons, notice of demand, warrant of distraint, inventory or other proceeding relating thereto, if the provisions of this Act and of the rules and bye-laws made thereunder have in substance and effect been compiled with: Provided that every person aggrieved by any irregularity may recover satisfaction for any special damages sustained by him. (4) Notwithstanding anything in the Code of Civil Procedure, 1908 (Central Act 5 of 1908) or in any other law for the time being in force, no court shall grant any permanent or temporary injunction or make any interim orders restraining any proceeding which is being or about to be taken under this Act for the revision or amendment of the assessment books or restraining such revision or amendment from taking effect.

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Part VIII RULES, BYE-LAWS AND PENALTIES 268. Power of Government to make rules for the purposes of this Act:- (1) The Government shall, in addition to the rule making powers, conferred on them by any other provisions of this Act, have power to make rules generally to carry out all or any of the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, the Government may make rules, – (i) as to all matters under this Act, relating to electoral rolls or the conduct of elections, not expressly provided for in this Act, including deposits to be made by candidates standing for election and the conditions under which such deposits may be forfeited, and the conduct of inquiries and the decision of disputes relating to electoral rolls or elections; 87 [* * *] (iii) as to the interpellation of the Sarpanch, President or Chairperson by the members of the Gram Panchayat, Mandal Parishad or as the case may be of the Zilla Parishad and the moving of resolutions at meeting of a Gram Panchayat, Mandal Parishad or the Zilla Parishad; (iv) as to the delegation of any function of a Gram Panchayat, Mandal Parishad or a Zilla Parishad respectively to the Sarpanch, President or Chairperson or any member or officer of the Gram Panchayat, Mandal Parishad or Zilla Parishad or any employee of the State or Central Government; (v) as to the transfer of allotments entered in the sanctioned budget of a Gram Panchayat, Mandal Parishad or Zilla Parishad from one head to another; (vi) as to the estimates of receipts and expenditure, returns, statements and reports to be submitted by Gram Panchayat, Mandal Parishad or Zilla Parishad; (vii) as to the accounts to be kept by Gram Panchayat, Mandal Parishad or Zilla Parishad, the audit and publication of such accounts and the conditions under which rate payers may appear before auditors, inspect book and accounts, and take exceptions to items entered or omitted; (viii) as to the preparation of plans and estimates for works and the powers of Gram Panchayat, Mandal Parishad or Zilla Parishad and of servants of the State or Central Government to accord professional or administrative sanction to estimates; (ix) as to the powers of auditors to disallow and surcharge items, appeals against order of disallowance or surcharge and the recovery of sums disallowed or surcharged; (x) as to the powers of auditors, inspecting and superintending officers and officers authorised to hold inquiries to summon and examine witnesses and to compel the production of documents and all other matters connected with audit, inspection and superintendence; (xi) as to the conditions on which property may be acquired by a Gram Panchayat, Mandal Parishad or Zilla Parishad or on which property vested in or belonging to a Gram Panchayat, Mandal Parishad or Zilla Parishad may be transferred by sale, mortgage, lease, exchange or otherwise; (xii) as to the conditions on which and the mode in which contracts may be made by or on behalf of Gram Panchayat, Mandal Parishad or Zilla Parishad; (xiii) as to the assessment and realisation of taxes under this Act and the revision of and appeals against assessment; (xiv) as to the acceptance in lieu of any tax or other amount due to a Gram Panchayat under this Act, of any service by way of cartage or otherwise;

87

Omitted by Section 14 of Act No. 5 of 1995.

Andhra Pradesh

105

(xv) as to the form and contents of licences, permissions and notices granted or issued under this Act, the manner of their issue or the method of their service, and the modifications, suspension or cancellation thereof; (xvi) as to the powers of executive authorities to call for information on any matter, to summon and examine witnesses, and to compel the production of document; (xvii) as to the regulation or registration of building and the use of sites for building; (xviii) for the determination of any claim to trees growing on public roads or other property vesting in or belonging to Gram Panchayats or on porambokes or on lands, the use of which is regulated by them under section 102, and for the presumptions to be drawn in regards to the ownership of such trees; (xix) as to the provisions of cattle sheds by the Gram Panchayat wherein owners of cattle may stall cattle and as to the fees leviable in respect thereof; (xx) as to the disposal of household and farmyard waste in the village, the acquisition of land by the Gram Panchayat for laying out plots, for digging pits in which such waste may be thrown, the assignment of any of those plots to persons in the village and the conditions subject to which such assignment may be made, including the rent to be charged; (xxi) as to the duties to be discharged by village officers in relation to Gram Panchayats and their executive authorities; (xxii) for regulating the sharing between local authorities in the State, of the proceeds of any tax or income levied or obtained under this or any other Act; (xxiii) as to the accounts to be kept by owners, occupiers and farmer, private markets and the audit and inspection of such accounts; (xxiv) as to the manner of publication of any notification or notices to the public under this Act; (xxv) for the use of the facsimiles of the signatures of the executive authorities and officers of Gram Panchayat, Mandal Parishad or Zilla Parishad; (xxvi) regarding proceedings of Gram Panchayats and their committees; and (xxvii) relating to assessment levy, and collection of taxes and the lodging of moneys received by the Gram Panchayat, Mandal Parishad or Zilla Parishad and payment of moneys from their Funds. (3) All rules made under this Act shall be published in the Andhra Pradesh Gazette. (4) Every rule made under the Act shall immediately after it is made, be laid before the Legislative Assembly of the State if it is in session, and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiration of the session in which it is so laid or the session immediately following the Legislative Assembly agrees in making any modification in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified, have effect only in such modified form or shall stand annulled, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity or anything previously done under that rule. 269. Penalties for breach of rules:- A rule under this Act may provide that a breach thereof shall be punishable with fine which may extend to fifty rupees, or in case of continuing breach with fine not exceeding five rupees for every day during which the breach continues after conviction for the first breach. 270. Bye-laws and penalties for their breach:- (1) Subject to the provisions of this Act and of any other law and to such rules as may be prescribed, a Gram Panchayat may, with the approval of the Commissioner, make bye-laws for carrying out any of the purposes for which it is constituted.

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(2) A bye-law made by the Gram Panchayat may provide that any person who commits a breach thereof shall be liable to pay by way of penalty such sum as may be fixed by the Gram Panchayat not exceeding fifteen rupees, or in case of a continuing breach, not exceeding five rupees for every day during which the breach continues after a penalty has been levied for the breach. (3) The Government shall have power to make rules regarding the procedure for the making of bye-laws, the publication thereof and the date on which they shall come into effect. 271. General provisions regarding penalties specified in Schedules III and IV:- (1) Whoever, – (a) contravenes any of the provisions of this Act specified in the first and second columns of Schedule-III, or (b) contravenes any rule or order made under any of the provisions so specified; or (c) failing to comply with any direction lawfully given to him, or any requisition lawfully made upon him under or in pursuance of any of the said provisions, shall be punishable with fine which may extend to the amount mentioned in that behalf in the fourth column of the said Schedule. (2) Whoever after having been convicted of, – (a) contravening any of the provisions of this Act specified in the first and second columns of Schedule IV; or (b) contravening any rule or order made under any of the provisions so specified; or (c) failing to comply with any directions lawfully given to him, or any requisition lawfully made upon him under or in pursuance of any of the said provisions, continues to contravene the said provisions or the said rule or order, or continues to fail to comply with the said direction or requisition shall be punishable for each day after the previous date of conviction during which he continues so to offend, with fine which may extend to the amount mentioned in that behalf in the fourth column of the said Schedule. Explanation:- The entries in the third column of Schedules III and IV headed `subject' are not intended as definitions of the offences described in the provisions specified in the first and second columns thereof or even as abstracts of those provisions, but are inserted merely as references to the subject dealt with therein. 88

[271-A. Penalty for not handling over documents, moneys etc., to the newly elected Sarpanch or Upa-Sarpanch of a Gram Panchayat:- (1) Any Sarpanch who having been the Sarpanch, Temporary Sarpanch or Upa-Sarpanch of a Gram Panchayat fails to hand over any documents of or any moneys or other properties vested in or belonging to, the Gram Panchayat, which are in, or have come into, his possession or control, to his successor in office or other prescribed authority, – (i) in every case, within a period of thirty days from the expiry of the term of office as such Sarpanch, Temporary Sarpanch or Upa-Sarpanch; and (ii) in the case of person, who was the Upa-Sarpanch also within a period of thirty days on demand by the Sarpanch shall be punishable with imprisonment which may extend upto six months or with fine not exceeding one thousand rupees or with both, for every such offences. (2) Any person who is convicted under sub-section (1) fails to handover any documents of, or any moneys or other properties vested in, or belonging to the Gram Panchayat, which are in or have come into, his possession, or control to his successor in office, shall be punishable for each day after conviction during which he continues to persist in his offence with a fine not exceeding one hundred rupees. 88

Inserted by Sec. 3 of Andhra Pradesh Act No. 33 of 1998.

Andhra Pradesh

107

(3) In cases falling under sub-sections (1) and (2), the court may, apart from ordering conviction for the offence, order the seizure of the documents, moneys or other properties of the Gram Panchayat from the person convicted.] 272. Recovery of amounts due as taxes:- All costs, damages, compensation, penalties, charges, fees (other than school fees), expenses, rents (not being rents for land and buildings demised by the Gram Panchayat), contributions and other amounts which under this Act or any other law or rules or byelaws made thereunder are due by any person to the Gram Panchayat may, if there is no special provision in this Act, or the rules made thereunder for their recovery, be demanded by a bill as provided in the rules for the recovery of taxes made under the Act and recovered in the manner provided therein. 273. Adjudication of disputes between local authorities:- (1) When a dispute exists between a local authority and one or more other local authorities in regard to any matter arising under the provisions of this or any other Act and the Government are of opinion that the local authorities concerned are unable to settle it amicably among themselves, the Government may take cognizance of the dispute; and (a) decide it themselves, or (b) refer it for enquiry and report to an arbitrator or a board of arbitrators or to a joint committee constituted for the purpose by an order of the Government. (2) The reports referred to in clause (b) of sub-section (1) shall be submitted to the Government who shall decide the dispute in such manner as they may deem fit. (3) Any decision given under clause (a) of sub-section (1) or under sub-section (2) may be modified from time to time, by the Government in such manner as they deem fit, and any such decision with the modification, if any, made therein under this sub-section, may be cancelled at any time by the Government. Any such decision or any modification therein or cancellation thereof shall be binding on all the local authorities concerned and shall not be, liable to be questioned in any court of law. (4) Where one of the local authorities concerned is a cantonment authority or the port authority of a major port, the powers of the Government under this section shall be exercisable only with the concurrence of the Central Government. 274. Act to read subject to Schedules V and VI in regard to first constitution or reconstitution etc:- (1) In regard to the first constitution of a Gram Panchayat, Mandal Parishad or Zilla Parishad for a village, Mandal or District or to the first reconstitution in accordance with the provisions of this Act of such bodies in existence at the commencement thereof, and otherwise in first giving effect to the said provisions they shall be read subject to the rules in Schedules V and VI. (2) The Government shall have power, by notification in the Andhra Pradesh Gazette, to amend, add to or repeal the rules in the said Schedules. 275. Power to remove difficulties:- (1) If any difficulty arises in first giving effect to the provisions of this Act or as to the first constitution or reconstitution of any Gram Panchayat, Mandal Parishad or Zilla Parishad after the commencement of this Act, the Government, as occasion may require, may by order published in the Andhra Pradesh Gazette, do anything which appears to them necessary for removing the difficulty. (2) All orders made under sub-section (1) shall, as soon as may be after they are made, be placed on the table of Legislative Assembly of the State and shall be subject to such modification by

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way of amendments or repeal as the Legislative Assembly may make either in the same session or in the next session. 276. Repeal and savings:- (1) The following Acts are hereby repealed, namely:(i) The Andhra Pradesh Gram Panchayats Act 1964. (Act 2 of 1964), (ii) The Andhra Pradesh Mandal Praja Parishads, Zilla Praja Parishads and Zilla Pranalika and Abhivrudhi Sameeksha Mandals Act, 1986 (Act 31 of 1986), and (iii) The Andhra Pradesh Local Bodies Electoral Reforms Act, 1989, (Act 28 of 1989). (2) On such repeal the provisions of Sections 8 and 18 of the Andhra Pradesh General Clauses Act, 1981 (Act 1 of 1981) shall apply. 277. Amendment of Act 9 of 1989:- In the Andhra Pradesh State Audit Act, 1989 (Act 9 of 1989), in section 2, for clauses (c) and (d), the following clause shall be substituted, namely:“(c) a Gram Panchayat, a township, a Mandal Parishad or a Zilla Parishad constituted under the Andhra Pradesh Panchayat Raj Act, 1994.” 278. Transitional provisions in regard to elections:- The first ordinary elections to the Gram Panchayats, Mandal Parishads and Zilla Parishads in accordance with the provisions of this Act shall be held 89[within a period not exceeding one year and six months] from the date of commencement of this Act.

89

Subs by Section 2 (2) of Act No. 33 of 1995

Andhra Pradesh

Schedule - I GENERAL POWERS AND FUNCTIONS OF PANCHAYATS (Sections 45, 161 and 192) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

Agriculture, including agricultural extension. Land improvement, implementation of land reforms, land consolidation and soil conservation. Minor irrigation, water management and watershed development. Animal husbandry, dairying and poultry. Fisheries Social forestry and farm forestry. Minor forest produce. Small scale industries, including food processing industries. Khadi, village and cottage industries. Rural housing. Drinking water. Fuel and fodder. Roads, culverts, bridges, ferries, waterways and other means of communication. Rural electrification, including distribution of electricity. Non-conventional energy sources. Poverty alleviation programme. Education, including primary and secondary schools. Technical Training and vocational education. Adult and non-formal education. Libraries. Cultural activities. Markets and fairs. Health and sanitation, including hospitals, primary health centres and dispensaries. Family Welfare. Women and child development. Social welfare, including welfare of the handicapped and mentally retarded. Welfare of the weaker sections, and in particular, of Scheduled Castes and the Scheduled Tribes. Public Distribution System. Maintenance of community assets.

109

Panchayati Raj Acts of States and Union Territories of India

110

Schedule - II POWERS AND FUNCTIONS OF THE MANDAL PARISHAD (Sections 45, 161 and 192)

1. Community Development The execution of all programmes under Community Development in association with panchayats, co-operative societies, voluntary organisations and the people. 2. Agriculture The doing of everything necessary to step up agriculture Production and in particular, – (i) multiplication and distribution of improved seeds; (ii) distribution of fertilizers; (iii) popularisation of improved techniques, methods and practices and improved implements; (iv) achieving self-sufficiency in green manure and composting of farmyard manure; (v) encouraging fruit and vegetable cultivation; (vi) reclamation of land and conservation of soil; (vii) providing credit for agricultural purposes; (viii) propagating and assisting in plant protection methods; (ix) laying out demonstration plots and working out better methods of farm managements; (x) bringing more acreage under irrigation by renovating and sinking wells, repairing and digging private tanks and maintaining Government minor irrigation sources and supply channels; (xi) utilising more power for agricultural purposes; (xii) exploiting underground water sources by sinking wells, filter points and tube wells; (xiii) tree planting; (xiv) growing of village forests. 3. Animal Husbandry and Fisheries (i) upgrading local stock by introducing pedigree breeding bulls and castrating scrub bulls; (ii) introducing improved breeds of cattle, sheep, pigs and poultry; (iii) controlling contagious diseases by systematic protection; (iv) introducing improved fodders and feeds; (v) establishing and maintaining of artificial insemination centres, first aid centres and minor veterinary dispensaries; (vi) educating the people about the importance of better cattle for both milk and draught. 90

90

[4. Health and Rural Sanitation (i) Expanding existing medical and health services and bringing them within the reach of people. (ii) Establishing and maintaining Primary Health Centres and Maternity Centres. (iii) Providing protected drinking water facilities. (iv) Ensuring systematic vaccination. (v) Controlling epidemics. (vi) Providing drains and soakage pits for village and house drainage. (vii) Encouraging the use of sanitary type of latrines and utilising human waste. (viii) Popularising of smokeless chullas. (ix) Supervising the work in Government hospitals. (x) Enlisting people's participation for the improvement of such hospitals. (xi) Securing the co-operation of the people and the panchayats during epidemics.

Subs by Section 15 of Act No. 5 of 1995

Andhra Pradesh

111

(xii) Carrying out environmental sanitation campaigns and educating the public in (a) nutrition, (b) maternity and child health (c) communicable diseases and (d) family planning and the like. (xiii) Implementing health programme subject to the technical control of concerned district officers. 5. Education Maintenance and expansion to Elementary and Basic Schools and in particular, – (i)

management of Government and taken over Aided Elementary and Higher Elementary

Schools; (ii) establishment of Adult Education Centres and Adult Literacy Centres; (iii) provision and improvement of accommodation for schools with people's participation; (iv) conversion of existing Elementary Schools into Basic Schools; and (v) taking of such action as may be necessary for the promotion of education for all children until they complete the age of fourteen years. 6. Social Education The creation of a new outlook among the people and making them self-reliant, hard working and responsive to community action and in particular, – (i) establishment of information community and recreation centre; (ii) establishment of Youth Organisation, Mahila Mandals, Farmer clubs and the like; (iii) establishment and popularisation of libraries; (iv) organisation of watch and ward; (v) encouragement of physical and cultural activities; (vi) organisation of voluntary sanitary squads; (vii) training and utilisation of the services of Gram Sahayaks. 7. Communications (i) Formation and maintenance of inter village roads; (ii) Rendering such assistance as may be necessary for the formation and maintenance of Village Roads which serve as feeders. 8. Co-operation The securing of economic development along democratic lines by the application of co-operation in its infinitely varying forms and in particular, – (i) establishment of co-operative credit, industrial, irrigation, farming and multipurpose societies in order to serve the maximum number of families. (ii) encouragement of thirft and small savings. 9. Cottage Industries Development of cottage, village and small scale industries in order to provide better employment opportunities and thereby raise the standard of living and in particular, – (i) the establishment and maintenance of production-cum-training centres; (ii) the improvement of the skills of artisans and craftsmen; (iii) the popularisation of improved implements; and (iv) implementation of schemes for the development of cottage, village and small scale industries financed by the Khadi and Village Industries Commission and the All India Boards. 10. Women Welfare The implementation of schemes specially designed for Welfare of women and children and in particular the establishment of Women and Child Welfare Centres, LIteracy Centres, Crafts and Dress Making Centres and like.

Panchayati Raj Acts of States and Union Territories of India

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11. Social Welfare (i) The management of hostels subsidised by Government for the benefit of Scheduled Tribes, Scheduled Castes and Backward Classes; (ii) The implementation of Rural Housing Schemes; (iii) The maintenance of diseased beggers and control of vagrancy; (iv) The strengthening of Voluntary Social Welfare Organisations and Coordinating their activities; (v) The propagation of temperance and prohibition; and (vi) The removal of untouchability. 12. Emergency Relief Provision of emergency relief through voluntary efforts in case of distress owing to fires, floods, epidemics and other wide spread calamities. 13. Collection of Statistics Collection and compilation of such statistics as may be found necessary either by the Mandala Parishad, the Zilla Parishad or the Government. 14. Self-Help Programme Formulation and execution of suitable programmes for stepping-up production and for raising the incomes and standards of living for the improvement of sanitation and for the provision of amenities for the people. 15. Trusts Management of trusts for the furtherence of any purpose to which the funds of the Mandal Parishad may be applied.

Andhra Pradesh

113

Schedule III ORDINARY PENALTIES (Section 271) Section (1) 81

Sub-section or clause (2) (2)

82 82

(a) (b)

82

(c)

82

(d)

82

(e)

85 86

(1) (1)

89

…

90

…

91

(3)

93 94 95 96

… (1) (1) …

97

…

98 100

(1) (1)

100

(2)

101

(1)

101 102

(2) (1)

102

(2)

103

(2)

Subject (3) Disobeying notice prohibiting use of water to which public have access Bathing etc., in places set apart for drinking purposes Depositing any offensive etc., matter in places set apart for drinking purposes Washing clothes in places set apart for drinking, bathing or washing clothes Washing animals etc., in places set apart for drinking, bathing or washing clothes. Allowing water from a sink, sewer etc., into places set apart for drinking, bathing or washing clothes Failure to register any place for the disposal of the dead Opening etc., or using any place for the disposal of the dead without a licence Burying, burning etc., of corpse within two hundred metres of dwelling place or source of drinking water supply Failure to give information of burials or burning in a burial ground or burning ground Buying or burning or otherwise disposing of a corpse in a prohibited place Allowing filth to flow in public road etc., Failure to execute the work as required by the notice Quarrying near a public road, etc., without a licence Unlawful building of wall or erecting of fence, etc., in or over public road Allowing doors, ground floor windows, etc., to open outwards or without licence or contrary to notice Failure to remove or alter encroachment Unlawful construction of building over a drain on ground leveled etc., by rubbish Failure to obey requisition to demolish a building constructed without permission or contrary to the terms of permission Unlawful making of hole or placing obstruction in public road Failure to fence, enclose etc., hole or obstruction Planting of trees without permission on any public road or other property vested in a Gram Panchayat Felling etc., without permission of trees, growing on public road or other property vested in a Gram Panchayat or on a poramboke or land the use of which is regulated by it under section 102 Failure to remove any building etc., on land vested in Gram Panchayat

Fine which may be imposed (4) Fifty rupees Fifty rupees Fifty rupees Fifty rupees Fifty rupees Fifty rupees One hundred rupees One hundred rupees One hundred rupees

Twenty rupees One hundred rupees Twenty rupees Fifty rupees Fifty rupees One hundred rupees Twenty rupees Two hundred rupees Two hundred rupees Two hundred rupees

Fifty rupees Fifty rupees Two hundred rupees Two hundred rupees

Two hundred rupees

Panchayati Raj Acts of States and Union Territories of India

105

(1)

108

…

110

…

111.

….

115.

(b)

116

(1)

118

(a)

118

(b)

119.

…

120. 122. 126.

… … (2)

126. 127. 144.

(3) (7) …

114

Opening or keeping open a private market in contravention of section 105 Failure to obey directions to construct approaches, etc., for a private market or to roof etc.

Five hundred rupees

Sale or exposure for sale in public or private market of any animal or articles without permission Sale etc., of articles in public roads or places after prohibition or without licence or contrary to regulations Using any public place or roadside as a landing or halting place or as a cart-stand within prohibited distance Opening a new private cart-stand or continuing to keep open a private cart-stand without licence or contrary to licence Slaughtering, cutting up or skinning etc., cattle etc., outside slaughter house. Slaughtering etc., any cattle etc., without licence or contrary to licence Using a place for any of the purposes specified in Schedule III without licence or contrary to licence Unlawful erection of factory, workshop Disobedience of order regarding abatement of nuisance Unlawful defacement etc., of numbers assigned to buildings Failure to replace number when required to do so Failure to produce licence on request Obstructing a person in the use or enjoyment of a public road, market, well, tank, etc

Twenty rupees

One hundred rupees

Ten rupees Fifty rupees

Two hundred rupees

Two hundred rupees Twenty rupees One hundred rupees One thousand rupees One hundred rupees Five rupees Twenty rupees Five rupees One hundred rupees

Andhra Pradesh

115

Schedule - IV PENALTIES FOR CONTINUING BREACHES (Section 271) Section (1) 81

Sub-section or clause (2) (2)

82

(e)

86

(1)

93 94 95 96

… (1) (1) …

97

…

98 100

(1) (1)

100

(2)

101

(1)

103

(2)

105

(1)

108

…

110

…

116

(1)

119

…

120 122

… …

Subject (3) Disobeying notice prohibiting use of water to which public have access Allowing water from a sink, sewer etc., into places set apart for drinking, bathing or washing clothes Using any place for the disposal of the dead without a licence Allowing filth to flow in public road etc., Failure to execute the work as required by the notice Quarrying near a public road, etc., without a licence Unlawful building of wall or erecting of fence, etc., in or over public road Allowing doors, ground floor windows, etc., to open outwards or without licence or contrary to notice Failure to remove or alter encroachment Unlawful construction of building over a drain or on ground levelled etc., by rubbish Failure to obey requisition to demolish a building constructed without permission or contrary to the terms of permission Unlawful making of hole or placing obstruction in public road Failure to remove any building etc., on land vested in Gram Panchayat. Opening or keeping open a private market in contravention of section 105 Failure to obey directions to construct approaches, etc., for a private market or to roof etc. Sale or exposure for sale in public or private market of any animal or articles without permission Keeping open a private cart-stand without licence or contrary to licence Using a place for any of the purposes specified in Schedule III without licence or contrary to licence Unlawful erection of factory, work-shop Disobedience of order regarding abatement of nuisance

Fine which may be imposed (4) Ten rupees Ten rupees Twenty rupees for each occasion Ten rupees Ten rupees Ten rupees Twenty rupees Ten rupees Ten rupees Fifty rupees Fifty rupees

Ten rupees Fifty rupees One hundred rupees Ten rupees Ten rupees Twenty rupees Twenty rupees One hundred rupees Fifty rupees

Panchayati Raj Acts of States and Union Territories of India

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Schedule - V TRANSITIONAL PROVISIONS (GRAM PANCHAYATS) (Section 274)

1. Definitions:(a) (b) (c) (d)

In these rules, unless the context otherwise requires, – `Old Panchayats Act' means the Andhra Pradesh Gram Panchayat Act, 1964; `Panchayat' means a panchayat constituted under the old Panchayats Act; `Member' means a member of a panchayat constituted under the Old Panchayats Act; `Sarpanch' means a Sarpanch of a Gram Panchayat constituted under the Old Panchayats Act.

2. Existing villages to be deemed to be villages for purposes of this Act:- (1) Every local area which, at the commencement of this Act, is a village under the old Panchayats Act shall be deemed to have been declared to be a village under this Act. (2) Every Gram Panchayat in existence at the commencement of this Act shall be deemed to be a Gram Panchayat constituted under this Act. 3. Total number of members of Gram Panchayat:- Notwithstanding anything contained in this Act, the total number of members of a Gram Panchayat fixed under the old Panchayats Act, shall be deemed to be the total number of members of the Gram Panchayat as deemed to have been constituted under this Act by virtue of subrule (2) of rule 2 until their number is altered by the Commissioner. 4. Term of office of existing Sarpanches and members:- (1) The Sarpanches and members of a Gram Panchayat holding office at the commencement of this Act shall, subject to the provisions of sections 18 and 20, continue to hold such office upto and inclusive of the date fixed by the Government or upto the date on which special officers who may be appointed by the Commissioner assume office whichever is early. (2) Any vacancy in the office of the Sarpanch, the Upa-Sarpanch or a member of a Gram Panchayat at the commencement of this Act or which may occur thereafter shall not be filled until the next ordinary elections. 5. First ordinary election:- The Andhra Pradesh Election Commissioner for Local Bodies shall cause the first ordinary election under this Act to a Gram Panchayat and the first meeting of the Gram Panchayat under subsection (1) of section 13 after such election, to be held on any day before the date appointed by the said Commissioner. 6. Reconstitution of Panchayats dissolved or superseded before the commencement of this Act:- Any Panchayat dissolved or superseded under the old Panchayats Act and awaiting reconstitution at the commencement of this Act, shall be reconstituted in accordance with the provisions of this Act. 7. Constitution of Panchayats for villages notified before the commencement of this Act:- Where, before the commencement of this Act, a village was notified under the old Panchayats Act, for constituting a panchayat but no panchayat was constituted, the special officer appointed, if any, therefor, shall be deemed to have been appointed under this Act and the provisions of section 143 shall apply to such a case. Where no such special officer was appointed, a special officer shall be appointed for such a village under this Act as if it has been notified under this Act on the date of the commencement of this Act. 8. Executive Officers to be deemed to be Executive Officers appointed under this Act:- The Executive Officers of the Gram Panchayats which are deemed to be Gram Panchayats from the date of commencement of this Act and holding office as such on the said date, shall be deemed to have been appointed under this Act. 9. Devolution of property, rights and liabilities:- (1) All property, all rights of whatever kind, used, enjoyed or possessed by, and all interests of whatever kind, owned by or vested in, or held in trust, by or for any panchayat, as well as all liabilities legally subsisting against it, shall, on and from the date of commencement of

Andhra Pradesh

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this Act and subject to such directions as the Government may, by general or special order give in this behalf, pass to such Gram Panchayat as deemed to be constituted under this Act. (2) All arrears of taxes or other payments by way of composition for a tax or due for expenses or compensation or otherwise due to a panchayat at the commencement of this Act may be recovered as if they had accrued under this Act. (3) All proceedings taken by or against any panchayat or other authority or any person under the old Panchayats Act in so far as they are not inconsistent with this Act, be continued by or against such Gram Panchayat, authority or person under this Act. 10. Continuance of existing taxes:- Any tax, cess, fee or duty which was being lawfully levied by or on behalf of any panchayat at the commencement of this Act under any law, shall continue to be levied by or on behalf of the Gram Panchayat at the rates fixed and in pursuance of the assessment made by or under such law for the year in which this Act was brought into force and in the subsequent years also until the Government, by general or special order, otherwise direct, or assessment is made by or under this Act, whichever is earlier. 11. Action taken under old Panchayats Act to continue:- Any action taken under the old Panchayats Act by any authority, before the commencement of this Act shall, unless inconsistent with this Act, be deemed to have been taken by the authority competent to take such action under this Act, unless and until superseded by action taken by such authority, whether it be the same as the authority competent to take such action under the old Panchayats Act or not. 12. Removal of difficulty:- If any difficulty arises in giving effect to the provisions of these rules, the Government, as occasion may require, may after previous publication, by notification in the Andhra Pradesh Gazette, do anything which appears to them necessary for removing the difficulty.

Panchayati Raj Acts of States and Union Territories of India

118

Schedule - VI TRANSITIONAL PROVISIONS (MANDAL PARISHADS AND ZILLA PARISHADS) (Section 274) Abolition of Mandala Praja Parishads and Devolution of Assets and Liabilities: (1) With effect on and from the constitution of a Mandal Parishad under this Act, the Mandal Praja Parishad or Parishads in the Mandal for which the Mandal Panchayat is constituted, shall stand abolished. (2) On such abolition of a Mandal Praja Parishad under sub-rule (1),__ (Act 31 of 1986), (a) the Collector may pass such orders as he deems fit as to the devolution on the Mandal Parishad comprised in the area of such Mandal of the assets or institutions belonging to such Mandal Praja Parishad or Mandal Praja Parishads or as to the disposal otherwise of such assets; (b) all rights vesting in a Mandal Praja Parishad and all liabilities against it shall devolve on the Mandal Parishad concerned; (c) all contracts made by or on behalf of a Mandal Praja Parishad prior to its abolition and subsisting on the day of such abolition may be transferred by the Collector to the Mandal Parishad concerned. (3) In respect of all arrears of taxes or other payments by way of composition for a tax, or due for expenses or compensation, or otherwise due to the said Mandal Praja Parishad on such abolition, it shall be competent for the Collector to pass such orders as he may deem fit for their recovery by the Mandal Parishad as if they had accrued to it and had become due, under the provisions of this Act. (4) All taxes, fees and duties, which immediately before such abolition were being levied by the said Mandal Praja Parishad shall be deemed to have been levied by the relevant Mandal Parishad under the provisions of this Act, and shall continue to be in force accordingly until such taxes, fees and duties are revised, cancelled or superseded by anything done or any action taken under this Act. (5) All proceedings taken by or against the Mandal Praja Parishad or authority or any person under the Andhra Pradesh Mandal Praja Parishads, Zilla Praja Parishads and Zilla Pranalika and Abhivrudhi Sameeksha Mandals Act, 1986 (Act 31 of 1986) (hereinafter called the Mandals Act) may be continued by or against the Mandal Parishad, authority or person as if the said proceedings had been started under the provisions of this Act. (6) Any action taken under the Mandals Act by any authority before such abolition shall be deemed to have been taken by the authority competent to take such action under this Act as if this Act had then been in force. (7) With effect on and from the constitution of Zilla Parishad, for any district under this Act, the Zilla Praja Parishad constituted for such district under sub-section (1) of section 43 of the Mandals Act shall stand abolished. (8) All assets and rights vesting in a Zilla Praja Parishad at the time of its abolition under subsection (7) and all liabilities against it at such abolition under the Mandals Act or any other law for the time being in force, shall devolve on the Zilla Parishad, constituted under this Act. (9) Notwithstanding anything in this Act, every officer or employee who immediately before such abolition was in the service of the Zilla Praja Parishad shall be deemed to be an officer or employee of the Zilla Parishad, under this Act and every officer or employee who, immediately before the abolition of the Mandal Praja Parishad was in the service of the Mandal Praja Parishad shall be the employee of one of the Mandal Parishads, as may be ordered by the District Collector and it shall also be competent for the District Collector to transfer such officer or employee to any other service as may be directed by the Government: Provided that, – (i) the terms and conditions applicable to such officers and employees consequent on their absorption in the service of the Zilla Parishad, or Mandal Parishad, shall not be less favourable than those applicable to such employees immediately before such abolition as respects pay and allowances, leave, pension, gratuity, provident fund and age of superannuation; and

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(ii) the services rendered by any such officer or other employee under the Zilla Praja Parishad or Mandal Praja Parishad upto such abolition shall be deemed to be service under the Zilla Parishad, constituted under this Act, or as the case may be, of the Mandal Parishad, and he shall be entitled to count that service for the purpose of increments, leave, pension, or provident fund and gratuity. (10) "The Special Officers appointed under section 76 of the Andhra Pradesh Mandal Praja Parishads, Zilla Praja Parishads and Zilla Pranalika and Abhivrudhi Sameeksha Mandals Act, 1986 shall, notwithstanding the repeal of the said Act continue to hold office and continue to exercise the same powers and perform the same functions as they were exercising or performing immediately before the commencement of this Act, until the first ordinary elections to the Mandal Parishads and Zilla Parishads in accordance with the provisions of this Act are held and the newly elected members and office bearers thereof assume office." ***

CHAPTER–III

RURAL DEVELOPMENT PROGRAMMES IN ANDHRA PRADESH Introduction Andhra Pradesh is fifth populous and fourth largest state in India, spreading over an area of 2,76,75,459 Kms sharing common boundaries with Madhya Pradesh and Orissa to the North, the Bay of Bengal to the East, Tamil Nadu and Karnataka to the South and Maharashtra to the West. The state also forms a major link between the north and south India1. Andhra Pradesh being one of the most developing states has been making rapid strides in growth and welfare programmes since its formation (1st November, 1996). Rural development has become most important agenda of all successive governments in Andhra Pradesh to eradicate poverty, illiteracy and growing unemployment2. The concept of Rural Development has undergone many changes depending upon the requirement of the people based on the socio, economic and political guiding principles. Geographically speaking the state comprises of eight districts of Coastal Andhra Pradesh, five districts of Rayalaseema region and ten districts of Telangana region covering a total of 23 districts. The rich rivers in the state for irrigation are Krishna, Godavari,

Andhra Pradesh, “Making Rapid Strides Growth and Welfare”, The Indian Express, Ahmedabad Edition, 30th December, 2000, pp.1-2. 2 “Rural Development Policy in Andhra Pradesh – A Profile of Rural Development Programmes”, Published by the Ministry of Rural Development, Government of Andhra Pradesh, 2006, pp.33-42. 1

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Tungabhadra, Bheem, Manjeera, Penna and other perennial small rivers are the greatest asset for agriculture3. Schemes of Rural Development Rural development and welfare programmes in Andhra Pradesh are shaped by many complex interacting environmental forces. In view of enormity and urgency of rural problems, the state government has initiated developmental programmes which led to the creation of plethora of new institutions for balanced upward change. Andhra Pradesh government being committed to the implementation of Rural Development Programmes believed in development through Five Year Planning. The growth and welfare schemes for sustainable development of the rural poor are mentioned below: 1. Support to agriculture farmers, viz.: Supply of improved seeds, fertilizers, pesticides, agro implements, providing technical know-how, minimum support price for the farmers, free power supply to the agriculture, marketing facility, etc. 2. Irrigation facility: Sufficient water supply through irrigation projects, construction of dams – canals, CI wells, bore wells, drip irrigation, lift irrigation facility, etc. 3. Improving Primary Education: Improving primary education by introducing new schools in backward villages, starting social welfare hostels separately for boys and girls, improving hostel facilities, Dwarakanath, H.D., “Rural Development Policy and Programme Implementation – An Evaluation”, Social Action – A Social Action Trust Publication, Oct-Dec., 1995, Vol.45, No.4, New Delhi, pp.27-32. 3

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introduction of Ashram schools, Navodaya schools in backward districts, improving the quality of education by recruiting qualified, experienced teachers, encouraging Sarva Siksha Abhiyan scheme for school dropouts. 4. SC & ST Welfare Programmes: Free distribution of surplus land to the SC & ST farmers for sustainable development. Distributing free house site pattas, farm loan through SC & ST Corporations, Employment opportunities to generate economic activity to the rural poor. The state government has allocated 16.2% of its annual budget for the development of SC, ST students in the education field to complete higher education. 5. Women and Child Welfare Programmes: Introduction of Anganwadi School, supply of nutritious food to the children and pregnant women, establishing Integrated Child Development Agency, Mahila Mandals, Bridge Schools for girl student dropouts. 6. Empowerment of Women Groups: Empowerment of Rural Women, formation of DWCRA, Self-Help Groups, Vocational training programmes for rural women, Income generating activity, Training for rural women, Lending of Bank loans to DWCRA Groups. 7. Rural Youth Welfare: Providing library facilities, formation of youth clubs in villages to provide skill oriented vocational training programme. Computer training facility – encouraging rural sport meet programme, selfemployment income generating schemes for rural youth, TRYSEM, CMRY, Gramodaya, sufficient financial assistance to implement these programmes.

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8. MGNREGP: Under this particular scheme wage earning scheme to the unskilled village labourers, 100 to 120 days employment programme to the family couple through formation of roads, agriculture, watershed programmes and rural housing scheme. 9. Rajiv Gruhakalpa Scheme: Construction of Rajiv Rural Housing Scheme for the weaker and backward class community on a large scale, involving rural women in housing construction, Bank loan facility for housing programme. 10. Watershed Development: Drought Relief Development Scheme in 12 districts of Andhra Pradesh under water shed scheme is being introduced on the recommendation made by CH. Hanmanth Rao Committee4. Rural Development under Five Year Plans The Andhra Pradesh government is committed to formulate various priorities on rural development during successive five year plans. The prominent being the community development programme for the upliftment of rural poor. The central and state governments have launched many special schemes and anti poverty programmes to achieve qualitative improvement of the rural poor. Ever since the formation of Andhra Pradesh (1956), the government has introduced several Rural Development Programmes to help the rural poor through

4

Dwarakanath, H.D., 1995, Op.Cit, pp.27-32.

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welfare programmes. The priority schemes of rural development under five year plans are enlisted below5:

Plan & Period I Five Year Plan (1941-56)

Table-3.1 Five Plan Periods Priority Schemes of Rural Development

Community Development and National Extension Programme to achieve Rural Development Distribution of Land to the Tiller Agriculture Development Programme II Five Year Plan Khadi Village Industries, Land Reforms, Panchayati (1956-61) Raj, Decentralized Planning, Growing importance to Gram Panchayats and Block Khadi Village Industries, Land Reforms Panchayat Raj, Decentralized Planning Growing importance to Gram Panchayats and Blocks III Five Year Plan Applied Nutrition Programme (191-66) Intensive Agriculture Area Development Programme Green Revolution in the field of Agriculture High Yielding Variety of Agri Development Farmers Training and Education Programme Rural Works Programme Tribal Development IV Five Year Hill Area Development Programme Plan (1969-74) Small Farmers Development Agency Intensive Rural Employment Programme Minimum Needs Programmes Command Area Development V Five Year Plan Hill Area Development Programme (1974-79) Food for Work Programme Rural Housing Programme Rural Youth Self Employment Training Programme Integrated Rural Development Programme VI Five Year National Rural Employment Generation Programme Plan (1980-85) 20 point Economic Programme Development of Women and Children in Rural Areas Tribal / Adivas School Development and Welfare Programme VII Five Year Indira Awas Yojana Plan (1985-90 Rural Landless Employment Programme Jawahar Rojgar Yojana Million Well Scheme Programme Technology Development in Rural Areas Vocational Computer Training Programme to the Rural Youth Skill Oriented Training for School going Children Transformation of Rural Technology through Mass 5

Year of introduction 1952 1955 1957

1957 1959 1960 1962 1964 1962 1966 1966 1967 1968 1970 1971 1972 1974 1974 1975 1975 1976 1978 1979 1980 1980 1983 1984 1985 1985 1989 1989 1988-89 1986 1987 1988

“Rural Development and Five Year Plans”, Kurukshetra, New Delhi, April, 1997.

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VIII Five Year Plan (1992-97)

IX Five Year Plan (1997-2002)

X Five Year Plan (2002-2007)

XI Five Year Plan (2007-2012)

Media New Liberalization and Globalization Policy under PVN Rao Sustainability of Rural Infrastructure with Newly formed Economy Sustainability of Rural Infrastructure with Newly formed Economy Encouraging Rural Entrepreneurs under Privatization Policy Developing Minor Irrigation and Social Forestry in the State Janma Bhoomi – Participation of Rural People in Rural Development Programme Prime Minister Gram Sadak Yojana Prajala Vaddaku Palana (Administration at the Door Step of Rural Poor – Janma Bhoomi Programme). Empowerment of Rural Women and Income Generating Activities Micro Finance – Lending of Bank Loan on Easy Installments to take up economic activity Rural Housing scheme for the Weaker Sections viz., SC, ST & BCs Old Age Pensions to the Village Elderly Persons not able to earn livelihood – Widow Pensions – Pensions to the Disabled Common Minimum Needs Programme Improving Public Distribution System Financial Assistance to Handloom Weavers Society Distribution of Agriculture Tools to the Small Farmers Remunerative Price to the agriculture Products Free Power Supply to Agriculture Pump Sets during YSR Regime Indira Kranthi Pathakam National Rural Employment Guarantee Scheme Old Age Pensions to the Rural Poor Abhaya Hastham Scheme Pension Insurance Scheme for Rural Women Integrated Land Development Programme Society for Elimination of Rural Poverty Purchase of Land and Land Access to the Landless Agriculture Labourers Andhra Pradesh Smart Card Project Rajiv Arogya Sri Health Scheme for Rural Poor

1992 1992 1992 1993 1993 1995 1996 1995 1996 1991-2000 1991 1996

2003 2004 2004 2005 2006 2002 2004 2007 2008 2007 2008 2008 2007 2004 2006 2004

Source: Rural Development Action Plan, Ministry of Rural Development, Government of Andhra Pradesh, 2008.

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Rural Development – Budget Estimate and Expenditure in Andhra Pradesh – 2006 to 2012. Rural Development Programmes and its implementation is mainly depends on available human resources. Every year the state government is introducing several schemes on priority basis to achieve rural development. Every year budget estimates on rural development is increasing depending on the requirements of the rural population. Innovative welfare programmes are introduced by the state government to meet the immediate requirements of rural poor. The table given below indicates the budget estimates incurred on Rural Development Programmes in Andhra Pradesh from 2006-04 to 2011-126. Table-3.2 Total Expenditure on Rural Development Programmes Period from 2006-07 to 2011-12 Year

Expenditure on Rural Development

Total Annual Budget

Percentage of Expenditure on Rural Development

2006-07

1456.67

18208.98

8.00

2007-08

1448.09

27170.79

6.80

2008-09

2731.11

30617.68

8.90

2009-10

2887.90

33337.98

8.60

2010-11

3861.84

36727.90

11.60

2011-12

3880.80

36940.20

11.80

Source: Rural Development Action Plan, Ministry of Rural Development, Government of Andhra Pradesh, 2012. “Rural Development – Action Plan”, Ministry of Rural Development, Government of Andhra Pradesh, 2010. 6

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The table given above (table-3.2) reveals that the budget for Rural Development has substantially increased from Rs. 1456.67crores in 2006-07 to Rs. 3880.80 crores in 2010-12 budgets. This indicates that Rural Development Programme has been identified as top priority of the Government. In the total annual budget a major portion is diverted towards Rural Development Programmes. Land Purchase and Land Access for the Poor Designed with the aim of enabling and supporting the poor in getting enhanced access to land, Indira Kranthi Pathakam’s land component has come up a long way expanding from initial land purchase activities to land access activities positioning sensitive support mechanism for the poor. Along with empowering 5303 women to purchase good quality irrigated lands, land issues pertaining to 184249 poor covering 182670.95 acres have got settled so far in convergence with the Revenue Department. Over a period of time, land reforms have taken a back seat and still remain an unfinished agenda. Suffering from other traits of poverty like lack of voice, bargaining power, access to knowledge etc., the poor are also suffering from lack of access to secured title or possession over land. Recognizing land as a critical resource for the poor during the formulation of Andhra Pradesh Rural Poverty Reduction Project, the land component in Indira Kranthi Patham was sanctioned with an outlay of Rs. 52.6 crore. The land component of Indira Kranthi Patham has been working in two directions. One is Land Purchase i.e. securing the poor and enabling access to productive lands through facilitating purchase of good quality irrigated lands. The other is land access by facilitating

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the poor in convergence with the Revenue Department, to have control over their land in terms of having secured title, handling their lands locked in courts / disputes, awareness as to the measures taken by the Government to protect the interests of the poor manifested in the form of pro-poor enactments etc. The objective of land purchase is to see that the poor become proud owners of productive lands. Hence, the focus is on facilitating the land less poor to purchase productive irrigated lands alone. Salient features  Purchase process totally community driven.  The VOs play a leading role in identifying the lands, negotiating rates, etc.  Lands are registered in the names of women only.  Stamp and Registration fee and transfer duty have been exempted by the Government for the lands purchased. Coverage of the Scheme The land purchase activity has been taken up in 190 villages of 128 mandals in the state where demand had come from the poor women for purchase of lands. Between 2004 and 2009 about 4539.24 acres of land have been purchased by 53403 landless poor women with an investment of Rs. 2937.45 lakhs in these 190 villages covering 90% of the beneficiaries belong to vulnerable sections like SCs and STs.

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Table.3.3 Details of Purchase of Land and Expenditure Year No. of Acres Purchased Expenditure in Crores in Hectares 2006-07

0

0

2007-08

639.11

219.13

2008-09

1924.59

1181.31

2009-10

1335.12

947.37

2010-11

506.440

441.08

2011-12

134.02

148.56

Total

4539.24

2937.45

Source: “Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012.

SC 2799

ST 1979

Table-3.4 Caste wise Beneficiaries BC Others 393 132.00

Total 53403.00

Best Practices The beneficiaries are the poorest of the poor landless belonging to vulnerable sections often working as labourers on the some lands. Only good quality productive lands under assured sources of surface irrigation are purchased. Purchasers could derive immediate incomes. Impact The purchasers derive immediate incomes, average net income rangers from Rs. 7000-14000 per cropping season. Income increased in all the sample households by 30% to 75% after the intervention.

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After the intervention, 76% of them are food secure. It is lesser in other categories. Due to distribution of land to the poor seasonal migration has come down and is least among IKP land beneficiaries. As a master of fact there is a positive shift from child labour to school education and there is an increased ability to manage expenditure on health7. Land Access – Enabling Access to Justice for the Poor Land is the principal source of livelihood for the tribals. This principal source of livelihood is under threat from non-tribals. To prohibit transfer of lands in favour of non-tribals, Andhra Pradesh Scheduled Areas Land Transfer Regulation Act was enacted in the year 1959 and subsequently amended in 1970, 1971 and 1978. The tribals are not able to access justice due to factors like lack of legal awareness, absence of legal supports, alien adjudicatory system, adversarial adjudicatory system adopted from the British, administrative machinery being handicapped, voice of tribals not being heard and lack of access to government records. Accordingly, the land access activity was scaled up in two phases in October-November, 2006 and 2007 to cover 400 plus mandals in the state. The government has issued guidelines for putting in place this support mechanism vide GO Ms. No. 312 and 313, dated 07-07-2006. In the meantime, the Mandal Samakhyas and Zilla Samakhya have not only hired the services of people with

“Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012, p.9. 7

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legal and revenue background but also are training their own community members in land matters so that they can themselves handle their land problems. It is multipronged approach where the Samakhyas are also putting in place support structures like land centres where required information and records are made available, a panel of lawyers to help them fight out their court cases, a group of youth from the community trained in survey etc. to handle the issue from all the angles. Table-3.5 Details of Purchase of Land and Expenditure No. of Acres Purchased Expenditure in Crores Year 2005-06

505.09

70.57

2006-07

1924.59

1181.31

2007-08

1335.12

947.37

2008-09

506.40

441.08

2009-10

134.02

148.56

2010-11

132.00

138.12

2011-12

130.20

13013

Total

4667.42

15940.01

Source: “Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012.

SC 2662

Table-3.6 No.of Caste wise Beneficiaries (All Women) ST BC Others 1947 386 132

Total 5127

Linking banks with SHGs: The bank linkage scheme was initiated in Andhra Pradesh in 1992-93 with the linkage of 8 SHGs with SBI, Vysya Bank

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and Sri Anantha Grameena Bank. Due to constant efforts by the government, the program has gathered momentum only in 1997. All nationalized banks, RRBs and district Co-operative banks were involved in the programme. In Andhra Pradesh, 7 models of delivering credit to rural poor through SHG system have been designed. The rate of interest is decided by the banks/financial institutions under Bank Linkage Programme within the scope of RBI directives. The nationalized banks, regional rural banks and cooperative banks are coming forward to advance loans to SHGs with lower rate of interest8. The government of Andhra Pradesh is committed to social and economic empowerment of women by adopting micro credit as a tool and had taken the SHG Bank Linkage Program as a mass movement since 1998-99 onwards to achieve this goal. Various training and capacity building programs have been conducted on production, packaging, marketing, micro-credit and utilization of loans etc. In turn, women SHGs have availed loans from banks and other financial institutions and improved their economic status. During the year 2008-09, Rs. 11037 crores has been targeted as loan mobilization under SHG Bank Linkage programme and an amount of Rs. 15940.01crores has been mobilized 20129. Outstanding Achievements In Andhra Pradesh more than 52% SHGs (DWCRA Groups) were financed by banks under SHG Linkage. This number is more than the all India figure excluding that of Andhra Pradesh. About 310488 SHGs were provided repeat Dwarakanath, H.D., “Functioning of Self-Help Groups and Income Generating Activities in Andhra Pradesh”, Kurukshetra, July, 2006, New Delhi, p.14. 9 Dinesh Narayanan and Udit Misra, “An Agenda for India – A Review of NREGA” – Forbes, India, Mumbai, March, 2010, p.53. 8

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finance by banks during 2008-09 which comes to 75% of total SHGs in the state of Andhra Pradesh. As per the reports of the bankers, the recovery of loans is around 95% against 87% when compared with other states. The SHGs have taken up various income generating activities by availing themselves of the facility under SHG – Bank Linkage programme and increased their production to the extent that it supplies to the entire country. Recently the women SHGs of Nellore and Chittoor districts have got orders for their products from other countries such as Srilanka, Malaysia, etc. The SHG women have actively participated in fairs, melas or exhibitions organized at state, national and international level and are able to market their products though internet. Well known companies viz., Hindustan Lever Limited, Food World and Apna Bazaar have come forward to tie up with the SHGs and market their products. The issue of extending loans to SHGs under SHG Bank – Linkage programme since 1998-99 created a path of their economic empowerment. The income generating activities taken up by the SHGs and access to the banks and financial institutions attracted the attention of not only other states but at international level also. Many dignitaries from other states and other countries visited Andhra Pradesh and appreciated the SHG movement and implementation of Bank Linkage Programme in Andhra Pradesh. The other state governments are also taking the practice as a model and sending teams to study the implementation of the programme with an aim to implement in the same way in their states.

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National Rural Employment Guarantee Scheme (NREGS) National Rural Employment Guarantee Scheme gives legal guarantee of providing at least 100 days of wage employment to rural household whose adult members are willing to do unskilled manual labour. The scheme is being implemented in all the districts of the state. 1. Coverage of NREGS in different districts in Andhra Pradesh Table-3.7 Phase wise coverage of NREGA in Andhra Pradesh Phase-I Districts Phase-II Districts Phase-III Districts (w.e.f. 02-02-2006 (w.e.f. 01-04-2007 (w.e.f. 01-04-2008 1 Vizianagarm 1 East Godavari 1 West Godavari 2 Chittoor 2 Guntur 2 Krishna 3 Cudapah 3 Kurnool 3 Vishakhapatnam 4 Ananthapur 4 S.P.S Nellore 5 Mahabubnagar 5 Prakasham 6 Medak 6 Srikakulam 7 Ranga Reddy 8 Nizamabad 9 Warangal 10 Adilabad 11 Karimnagar 12 Khammam 13 Nalgonda

2. The programme has been grounded in Andhra Pradesh on a strong footing with the following non-negotiable a. Contractors and labour displacing machinery shall not be engaged. b. Every registered rural household shall be provided not less than 100 days of wage employment in a financial year. c. Payment of wages shall be made at least once in fortnight Equal wages shall be paid to men and women. Works approved by the Gram Panchayat (identified in the Gram Sabha) at village level, the Mandal

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Parishad at Mandal Level and the Zilla Parishad at District Level only shall be taken up. 3. Social Audit Andhra Pradesh is the only state which has established a fully fledged Social Audit Unit at the state level with exclusive staff. The Unit works independently and submits its report to government. So far social audit has been completed in 16548 Gram Panchayats, covering 786 mandals in 19 districts in the 1st round and 188 mandals covered in 2nd round. This is an effective tool to check corruption and to enhance the accountability to people. So far more than 2001 functionaries have been removed from services or disciplinary actions have been initiated. 4. Rural Standard Schedule of Rates Rural Standard Schedule of Rates (RSSR) has been prepared for conducting work time motion studies. This is a first of its kind initiative in rural development which ensures earning of minimum wage by workers. About 20% extra wages are being allowed in summer season keeping in view the increased fatigue levels of their labour due to high temperature and 30% allowance is also paid to disabled group throughout the year. The additional allowances increased to compensate decreased output due to disability. To avoid middlemen and to make the payments directly to the labourers, wage payments are being made through individual and Post Office Accounts. So far 123 crore individual accounts are opened.

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5. Communication 14 films followed by 20 manuals / hand books on training are produced in Telugu on NREGS for providing training to various functionaries and stakeholders. 6. Major initiatives towards livelihood security under NREGS in Andhra Pradesh is listed below: a. Indiramma Cheruvulu – Comprehensive restoration of Minor Irrigation tanks. b. 15080 tanks are taken up with an estimated cost of Rs. 1778 crores. Out of which 12667 tanks are in progress. So far Rs. 950 crores has been spent. About 3003 tanks are fully restored and stabilizing 5.13 lakh acres. c. Horticulture is taken upon the lands of the poor with 100% subsidy on 2.13 lakh acres at an estimated cost of 678 crores. Ongoing SHM & APMIP projects are converged in this initiative10. d. Land Development. An extent of 4 lakh acres of land lying fallow belonging to SC/ST/BPL families have been developed. Land leveling, silt application, clearance of bushes, deep ploughing, etc are some of the activities taken up under land development scheme11.

“An over view of Andhra Pradesh Smart Card Project”, A Report by the Ministry of Rural Development, Government of Andhra Pradesh, Hyderabad, 2006. 11 “Progress of NREGS in Andhra Pradesh”, Ministry of Rural Development, Government Andhra Pradesh, Hyderabad, 2009. 10

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7.

Asset Creation Table-3.8 Land Development Programme under NREGP in Andhra Pradesh

Sl.No 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Work Minor Irrigation Tanks in progress Land Development Earthen bunding Silt application Feeder channel Horticulture Mini Percolation tanks Percolation tanks Farm pounds Pebble & Stone bunding Roads Restoration and deepening of wells Desilting of canals Diversion drains Filling water logged areas Bio diesel

Extent/Nos 15080 Nos 403333 Acres 687444 Acres 253600 Acres 76956 Kms 315237 Acres 56160 Nos 1397 Nos 49261 Nos 203756 Acres 2835 Kms 20000 Nos 45667 KMs 27717 KMs 54000 Acres 1000000 Acres

Value (Cr.) 9.5 605 310 114 346 253 112 11 90 93 131 14 181 274 54 50

Source: Programme Report of NREGP under Land Development Programme in Andhra Pradesh, 2008-09.

8. Overview of NREGS in Andhra Pradesh is given below Table-3.9 Overview of NREGS in Andhra Pradesh Total Job Cards issued Total No.of Works sanctioned Total value of works administratively sanctioned (in Crores) No.of works completed Total expenditure (in Crores) No.of households provided wage employment Total individual postal accounts (in Crores) Total person days generated (in Crores) Total No.of mandals social audit completed 2nd Round Mandals Total No.of Grampanchayats social audit completed Total No.of Minor irrigation tanks (Indiramma Cheruvulu) taken up Total estimated amount of MI Tanks (in Crores) Total No.of Indiramma Cheruvulu completed Total No.of Indiramma Cheruvulu In 2008-09 No. of households provided wage employment No.of individual wage employment provided (in Lakhs) Men Women SCs STs BCs Others Total person days generated (in Crores) Total No.of days employment provided per household Average wage rate per day per person

11314057 1855213 17281.98 524306 4736.05 7224905 1.21 47 786 188 16548 15080 1778 3005 1310 5556009 96.55 47 53 27 13.4 48 12 20.47 36.84 82.33

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Comprehensive Land Development Project (CLDP) Land has always been a symbol of dignity and confidence. This is particularly true for poor farmers. To promote an equitable development process, Government of Andhra Pradesh had assigned lands to large number of families belonging to weaker sections. The government has prohibited alienation of the assigned land by enacting “Prohibition of Alienation of Assigned Lands Act, 1977”. Unless these lands are developed and made productive, they are not of much use for the livelihoods of the poor. Though several initiatives were taken up in this direction by the government over the years, the success seems to be limited. Some of the reasons for this are low investments on agriculture land development and weak institutional arrangements. Several experiences from voluntary organizations indicate that livelihoods of poor families could be strengthened significantly by developing arrangements; technology and comprehensive financial support are found to be the key elements of success. Experiences from large scale government supported projects also indicate that it is important to target poor families and work with them to develop their asset base. Ensuring food security by adopting sustainable dry land agricultural practices is the central theme in many of the above experiences. With this background, government of Andhra Pradesh has conceptualized the Comprehensive Land Development Project (CLDP) named as “Indira Prabha”12.

Comprehensive Land Development Project in Andhra Pradesh –A Progress Report – Department of Land Revenue, Government of Andhra Pradesh, Hyderabad, 2006. 12

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Objectives The main objectives of Comprehensive Land Development Projects are to: a. Enhance and diversify livelihood options of the poor centred on comprehensive development of compact blocks of assigned lands and the lands owned by the poor in tribal regions of the state. b. Enhance the food, fodder and fuel security of the poor families by improving the productivity of compact blocks of assigned lands and the lands owned by the poor in tribal regions of the state. Department of Rural Development is implementing Comprehensive Land Development Project (Indira Prabha) under RIDF-IX & X with a financial outlay of Rs. 599 crores to develop 5.3 lakh acres of assigned land of poor SC, ST & BC communities. So far, an amount of Rs. 388.52 crores have been released under both the projects and an expenditure of Rs. 329.59 crores were incurred till date13. Table-3.10 Details of Land Development Project. S.No. Item Total project outlay 1 No.of blocks 2 3 4 5 6 7 8

sanctioned No.of blocks grounded Percentage of blocks grounded Areas of sanctioned blocks Area developed Releases Expenditure

RIDF200.32 Cr. 3904

RIDF-X 248.60 Cr. 4273

RIDF-XIII Total 150.26 Cr. 599 Cr. 2766 10943

3904

4243

1472

9604

99%

99%

53%

88%

185375 ac.

198490 ac

144956 ac.

528821 ac.

171056

173227

-

156.85 Cr.

154.25 Cr.

18.49 Cr.

344283 ac. 388.52 Cr. 329.39 Cr.

Sources: Department of Rural Development under Comprehensive Land Development Project i.e. Indira Prabha, Government of Andhra Pradesh, Hyderabad, 2005-2006.

13

Poverty Eradication Programme in Andhra Pradesh – A Report, 2002-09.

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Poverty Eradication Programme: Andhra Pradesh Rural Poverty Reduction Project (APRPRP-2002 to 2009) Andhra Pradesh Rural Poverty Reduction Project (APRPRP) was established with the objective of creating self-managed grass roots institution of poor and poorest of poor rural women in the state and to improve their opportunities to meet socio-economic needs. As such, the project is committed to improve livelihoods and quality of all the rural poor families in the state forming part of its target groups i.e. Self-Help Groups formed at grass-roots level. The project objectives are consistent with the World Bank’s Country Assistance Strategy (CAS) objectives and its program priorities and principles. CASs built around the Government of India IX Five Year Plan where the objective is to “Strengthen the enabling environment for development and sustainable growth and support critical interventions of special benefits to the poor and disadvantaged”. Government of Andhra Pradesh has approached the World Bank to provide financial assistance for eradicating poverty. The World Bank has approved to finance 114 million XDRs in this endeavour. Component wise allocation of loan funds (IDA share and Government and Andhra Pradesh share) are us under.

S.No. 1 2 3 4 5 6

Table-3.11 State showing component wise allocation of APRPRP for the project period (Rs. In Crores) Component Original loan Additional loan Institutional and Human Capital building 174.13 191.6 Community Investment Fund 512.93 54.9 Supporting Pilot Program 36.77 Support People with Disabilities 26% Project Management 95.39 82.8 Total Project Cost 844.82 329.3

Source: Andhra Pradesh Rural Poverty Reduction Project Report-2002-09.

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Jobs Mission for the Rural Youth The Jobs Mission: The jobs mission was set up to address the needs of next generation of large SHG networks created and nurtured by IKP Employment Generation and Marketing Mission (EGMM), Department of Rural Development, Government of Andhra Pradesh which works in a focused manner to provide employment / employability for the rural youth. The Executive Committee of the Mission consists of Hon’ble Minister, Rural Development, and Senior Government Officers as ex-officio member apart from the members of the private sector. EGMM is driven by a private sector cell, which evolves strategy with an eye on the market. The implementation of program is done with the large government machinery headed by Collectors, Project Directors, District Rural Development Agency (DRDA) and Project Officers, Integrated Tribal Development Agency (ITDAs in all 22 districts. Vision: Sustained elimination of poverty of underprivileged Rural Youth, with a focus on remote areas. Mission: Employment/employability enhancement of Below Poverty Line (BPL) Rural Youth through market driven training. Objective: Articulated by the community, “one job for every poor family”. Achievements All trainings are free of cost to benefit the rural unemployment youth, as an initiative of the government. Based on the impact of the work, the budget has

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increased from Rs. 10 crores in 2005-06 to Rs. 100 crores in 2007-08. The budget comes from the State Government Revenue and Interior Areas Development (RIAD) budget and the Government of India SGSY funds through the DRDAs. In this connection, 191 training centres have been set up in sectors ranging from services, construction to textiles, with a focus on tribal and remote areas. About 82000 youth have been trained in the last two and half years and 1000 youth are currently in the classrooms. 80% of the youth trained have been linked to entry level private sector jobs. Annual salaries are ranging from Rs. 45,000 upwards in metros and Rs. 24,000 upwards in semi urban areas. Jobs for Rural Youth Employment Generation and Marketing Mission (EGMM) was set up to address

the

needs

of

the

next

generation

and

aims

at

to

create

employment/employability for the rural/tribal-underprivileged youth. It works in a public private partnership mode to identify, train and provide placement to youth in entry level corporate jobs in hospitality, retail, sales, tourism, banking, rural BPOs, manufacturing textiles and construction sectors. Total number of jobs created up to 2007-08 are 1,12,435. Placements shown upto end of February, 2009 are 61,156. This programme has become successful in most of the urban areas14. Health and Nutrition The major goal of the health and nutrition strategy under the APRPRP is to operate in convergent mode with the line agencies by looking at gaps in the Jobs Mission for the Rural Youth – A Progress Report of Employment Generation for Rural Youth, 2009. 14

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existing public health and nutrition services that are provided by the line departments. It is being implemented in 63 mandals including 8 Giriparagathi mandals covering 2500 village organizations of the state15. The extensive health and nutrition strategies being adopted across 63 mandals include fixed schedule for regular capacity building of stakeholders at mandal and district level, institutionalization of the fixed Nutrition and Health Days (NHDs) in convergence with line departments and regular health savings as safety nets for health emergencies. The intensive health and nutrition strategies focus on intensive health CRP strategy. 1000 best practitioners from the pilot mandals have been identified as health CRPs. Since January 2007, the health CRPs strategy has been implemented in 680 village organizations and established 680 nutrition cum daycare centres. The impact of peri-natal and neonatal outcomes among the members attended nutrition cum day care centres shows 98.5% safe deliveries, 87.3% normal deliveries, no low birth weight baby born, no maternal, infant and neonatal deaths happened in 1700 deliveries occurred among the members enrolled at 680 nutrition centres16. Education – Community Based Primary Schools About 124 Community Managed Pre-Primary Schools are functioning at Utnoor, Jainur, Siripur (U) and Inderevelly mandals of Adilabad district with an enrolment of 2600 children in 3-5 age groups. 400 school dropout children Health and Nutrition – Ministry of Medical and Health, Government of Andhra Pradesh, A Brief Report, 2008. 16 Activities taken up under Education Component – A note on Community Based Primary Education, Department of School Education, Government of Andhra Pradesh, 2009. 15

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enrolled in formal schools and bridge course at Chintor and V.R. Puram mandals. The project covers three Giripragathi mandals of Chintoor, Kunavaram and V.R. Puram mandals of Khammam district. 15 pre-primary schools are functioning at Kothaguda and Gudur mandals of Warangal district. Early Childhood Education (ECE) centres are now being set up in Ramapachodavaram in East Godavari district and Parvatipuram in Vizanagaram district. Shodhana training centre Cheopurupally is providing resource support and also training the instructors. 20 Early Childhood Education (ECE)

Centres were started in

Gummalaxmipuram and Kurupam mandals of Vizianagaram district. About 548 young children ages between 2 and 5 years were enrolled in these centres. 560 children were identified in 28 villages of Golgonda and Devarapally mandals of Vishakhapatnam district in extending the ECE programme. 50 children were identified in 20 villages of Seethampet and Kothur mandals of Srikakulam district to enroll in the ECE centres. Exposure visits were arranged for VOs and Members of MMS of Seethampet and Kothur mandals of Srikakulam district to visit to Shodhana Training Centre at Cheepurupally in Vizianagaram district. 10 villages were identified in Khammam district to establish the ECE centres and survey is completed 10 centres were started in Rampachodavaram of East Godavari district and 150 children were enrolled in the programme. 22 ECE centres were started in Gudur and Kothaguda mandals of Warangal district and 400 children were enrolled in these centres17.

17

Community Migrated Insurance Scheme under India Jeevita Beema Pathakam, Government of Andhra Pradesh, 2009-10.

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Community Managed Insurance Scheme Under insurance initiative, the state government has covered 38.00 lakh rural landless agricultural labourers under Indira Bima Pathakam (Aam Aadmi Bima Yojana), 19.51 lakhs under Janasree Bima Yojana and 23.76 lakhs under other Group Insurance. Total of 81.27 lakhs rural poor persons is covered under different insurance schemes to create social security among the members of the SHG and their families. The government is implementing the insurance schemes with Information Technology (IT) support to provide quality and timely service to the insured members. Zilla Samakhyas have established Call Centres in all district head quarters and solarium of Rs. 5000/- handed over to claimant family members within 24 hours if death occurred. The Government of Andhra Pradesh and LIC of India have adopted claim settlement system for the first time in the country to provide quality and timely service to insured members by positioning BIMA MITRAs. Besides above, Vishakhapatnam Zilla Samakhyas are managing ‘Sanjeevini’, a community managed Health Insurance Scheme and apart from managing a Livestock Insurance Scheme known as Loan Protection Scheme (LPS). Old Age Pensions Village organizations in Andhra Pradesh today are the nodal points of quick and prompt dispersal of old age pensions. This has resulted in more efficient way of disbursing pensions and has also plugged leakages in pension distribution

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system. Government is distributing Rs. 200/- on first of every month to old age persons, weavers, widows and disabled persons. The disabled persons’ pension has been enhanced from Rs. 200/- to Rs. 500/- from January, 2009. Under Pensions Programme, Rs. 1149.45 crores is distributed to 66.32 pensions upto February 201018. Project Expenditure Cumulatively the total expenditure of Indira Kranthi Patham (IKP), 20102011 is Rs. 1990.53 crores. Expenditure from the last 5 years is given in the following table. Table-3.12 Year wise component wise expenditure (Rs. Crores) Component Institutional and Human Capacity Building Community Investment Fund Project Management SPP SPD SERP Total APSWERIES Grand Total

2006-07

2007-08

2008-09

2009-10

2010-11

77.01

84.17

125.57

98.10

86.82

Total expenditure 528.79

217.78

177.91

142.00

40.12

77.60

835.86

22.96 0.12 0.74 318.61 89.70 408.31

23.03 0.15 3.19 288.45 52.00 341.25

25.23 0.00 6.42 299.34 57.00 356.34

22.19 0.08 5.96 166.45 36.49 202.94

24.39 0.00 1.72 190.53 0.00 190.53

139.12 0.78 18.25 1522.80 329.03 1851.83

Overall Performance of Indira Kranthi Patham (IKP) The overall performance of IKP is given in the following table given below.

18

Functioning of DWCRA Self-Help Groups Impact of Paval Vaddi Initiative, Ministry of Rural Development, Government of Andhra Pradesh, 2009.

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Table-3.13 Overall Performance of IKP as on 2011-12 S.No. 1 2 3 4 5 6 7

Indicator No.of SHGs under the Project No.of Members in Women SHGs No.of SHGs of Persons with disabilities No.of Persons with Disabilities in SHGs No.of Village Organizations formed No.of Normal Mandal Samakyas formed Total No.of Beneficiaries of Income Generating Activities

Total expenditure 850671.00 10182181.00 23069.00 212888.00 35525.00 1098.00 2365606.00

8 9 10 11

No.of Households benefiting from Good Security No.of Acres of Land purchased No.of Beneficiary families of Land purchased Among of Bank Linkage upto March in 2009 (Rs. In Crores)

2363735.00 4540.24 5303.00 6682.17

Source: Indira Kranthi Patham performance and expenditure in Andhra Pradesh, 2012.

Financial Access and Pavala Vaddi Initiative To encourage the women’s groups and also to achieve 100% repayment, the State Government has introduced the PAVALA VADDI Scheme, where in the government is reimbursing to the members any interest paid by the SHGs over and above 3% per annum. This has led to significant improvement in loan repayment. Under this initiatives, 4,75,164 SHGs were given Rs. 52.67 crores during 2004-05 and in 2005-06. 2,90,825 SHGs were given Rs. 50.02 crores during 2006-07 and 5,54,359 SHGs were given Rs. 112.30 crores upto March, 2008. During the year upto March 2009, 132.23 crores interest subsidy was given to 5,66,272 groups. Thus, an amount of Rs. 347.22 crores is given to 1,86,720

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SHGs (repeated finance) as Pavala Vaddi incentive since inception of the Scheme19. Diary Intervention The dairy activity is a major livelihood opportunity for the rural poor in Andhra Pradesh. Milk procurement activity was taken up on a pilot basis in Chittoor, Ananthapur, Mahabubnagar and Nizamabad districts since 2003-04, and it has helped the milk producers to get better price for milk and promoted transparency in milk procurement. This also triggered intervention in milk productivity in the villages. Based on the success evidenced in the pilots, the same model is replicated in 16 more districts in the state. Bulk Milk Chilling Units (BMCUs) with a capacity of 2000 to 5000 litres to collect and chill milk to the desired temperature of 40C, were established in 156 mandals in the state. In collaboration with the Andhra Pradesh Dairy Development Cooperative Limited (APDDCF Ltd.), the SHGs and their federations covering 2796 Village Milk Procurement centres with 138800 milk producers and contributed 2.57 lakh litres of milk per day in peak season and 0.80 lakh liters of milk per day in lean season valued at Rs. 38.55 lakhs. Community Managed Sustainable Agriculture (CMSA) Community Managed Sustained Agriculture (CMSA) is a paradigm shift in moving from input centric model to knowledge and skill based model. It involves making best use of natural resources locally available and takes best advantage of 19

Community Managed Sustainable Income and Collective Marketing, Government of Andhra Pradesh, 2009-10.

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the natural processes. The main objective of CMSA is to reduce the cost of cultivation and to bring sustainability to agricultural based livelihoods, with special focus on small and marginal farmers, tenants, agriculture labour and women. In Andhra Pradesh CMSA reached 3171 villages in 240 mandals of 18 districts. It covered 9.32 lakh acres in Kharif and 3.92 lakh acres in Rabi, thus totaling to 13.24 lakh acres by benefiting 3.18 lakh farmers. Under NREGS, NPM convergence 10349 compost pits were dug for effective composting and timely supply of compost, 1197 farm ponds were dug to conserve water recharge ground water and 4815 vermi compost units were constructed. Under CMSA 154 resource villages were developed and 743 seed banks were established to bring seed sovereignty to farmers. Due to implementation of NPM practices, the cost of cultivation was drastically reduced. The range of savings varied from crop to crop ranging from Rs. 2,500/- ha in case of Paddy, to Rs. 12500/- ha in case of Cotton and Rs. 37500/- has for Chillies. During last year total savings across the 18 district reached to an estimated amount of Rs. 150.40 crores. Collective Marketing The collective marketing programme is to enable the Rural Poor to obtain the best price for their forest produce and agricultural commodities the marketing interventions of IKP has registered a significant increase in this financial year with pick up in paddy procurement activity. The VOs have successfully

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implemented village level collective marketing of Neem, Redgarm, Greegram, Chillies, Paddy, Maize, Turmeric, Cashew and NTEP besides agricultural inputs etc. Details of the marketing intervention of last four years and current year are furnished in the following table20. Table-3.14 An Overview of Collective Marketing S. No.

Indicator

1 2 3 4

No. of MMS involved

5 6

No. of VOs involved No. of families covered No. of commodities handled Volume (lakh quintals) Turnover (Rs. Crores)

2006-07

2007-08

2008-09

502 1154 118497 57

710 2010 257280 81

533 783 101790 81

1.8 16

24.94 141.9

20.65 126.8

2009-10

2010-11

1036 845.00 2071 1662.00 300995 162584.00 79 65.00 47.11 320.15

58.78 491.61

Source: Abhaya Hastam Scheme under Indira Kranthi Patham, A Progress Report, 2011.

Abhaya Hastam (Indira Kranthi Patham Pension and Insurance scheme for SHG Women). Government of Andhra Pradesh has undertaken comprehensive eradication of poverty, in rural and urban areas through the Indira Kranthi Patham, a Programme for empowerment of women, through formation, development and strengthening of women SHGs and their federations, covering one crore twenty five lakh women in the state during the last 3 years. Government is also implementing National Rural Employment Guarantee Scheme to secure guaranteed wage employment to the rural poor. As a result of these measures, a large number of women and their families in rural and urban areas are enjoying stable livelihoods, increased incomes and better quality of life. While economic growth at household level is an important pre-condition for expanding the scope 20

Abhaya Hastam Scheme under Indira Kranthi Patham, A Progress Report, 2009.

112

of special social securing policies, the Government regards social security as one of the important factors in improving quality of life through and elimination of poverty. The need for income security in their old age, when their ability to earn from their physical labour would have reduced considerably has been voiced by SHG members in various meetings they had with the Chief Minister of Andhra Pradesh and Abhaya Hastam is the concept developed through such meetings. Abhaya Hastam is a co-contributory pension scheme for the women, above the age group of 18, belonging to the Self-Help Groups in Andhra Pradesh. The scheme envisages contribution of Rs. 30 per month into her pension account. The contributing of the member and co-contribution of the government is periodically transferred to Life Insurance Corporation of India (LIC), for investing diligently for securing better returns on the investment. The corpus thus generated till the age of 60 years, will be used for giving monthly pension amount to each women, on crossing 60 years of age. Abhaya Hastam offers 3 kinds of benefits to its members, namely 1) Monthly pension on crossing 60 years of age; 2) Death and disability insurance cover including scholarship to the children of the women, 3) Lump sum transfer of corpus which is accumulated in her account is transferred to the nominee in the event of her death. The monthly pension amount payable to the women depends on the number of years of contribution she makes till 60 years of age. In order to secure reasonable level of monthly pension, government have decided to ensure that

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every women shall receive Rs. 500/- or above pension every month, on crossing 60 years of age till her death. A women joining Abhaya Hastam at the age of 18 will be able to draw Rs. 2200/- per month pension on crossing 60 years of age. This amount is likely to be much higher, should the level of monthly contribution/co-contribution is stepped up after every 5 or 10 years. Every woman who joins Abhaya Hastam will have a pass book to record details of her contribution and she is entitled to receive an annual statement with the particulars of her contribution and co-contribution from the government and interest earned on the corpus. On crossing 60 years of age, the monthly pension is adjusted to her bank account by LIC every month. Abhaya Hastam offers many more benefits to the women in addition to monthly pension on retirement. The other benefits are (a) death and disability insurance cover in respect of women in the age group of 18 to 59. In the event of her natural death, Rs.30,000/- is paid to the nominee. In the event of accidental death, Rs. 75,000/- is paid to her. In case of partial disability Rs. 37500/- is paid to her. (b) the member’s children studying 9th, 11th and 12 classes will receive a scholarship of Rs. 1200/- per annum, (c) in the event of the death of the subscriber, the available contribution of the subscriber and government’s cocontribution along with accrued earnings on such contributions will be transferred to the nominee of the subscribed. Government of Andhra Pradesh have brought out a legislation; AP SHG Women Co-contributory Pension Act 2009 which was passed by the AP State

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Legislature and AP State Legislative Council. The state government has provided the budget of Rs. 365 crore in the 2009-10 budget estimates towards state government’s co-contribution. The scheme has already been launched at the state head quarters and also in the districts by distributing cheques of Rs. 400/- towards the monthly pension for the SHG women who joined the scheme and attained retirement age. The enrolment of SHG women of all age groups into Abhya Hastam scheme has also commenced. It is expected that about 1 crore 25 lakh women are likely to join the scheme. The Andhra Pradesh Government has thus earned the distinction of rolling out the world’s largest co-contributory pension scheme for the poor in unorganized sector21. Andhra Pradesh Smart Card Project In 2006, Rural Development Department of Andhra Pradesh started a pilot initiative to make payments of Government benefits to the beneficiaries through Smart Cards which are backed by bank accounts. The overall objectives of the initiatives are: i. To provide an operational frame work for increasing the outreach of main stream banking and financial services to the poorest of the poor by using technology based solution. ii. To ensure efficient and timely transfer of government benefits of the poor. iii. To minimize the possibility of fraudulent payments. iv. To achieve total financial inclusion thorough Smart Cards.

v. To benefit the rural eligible poor. Andhra Pradesh Smart Card Project – A Report, Ministry of Rural Development, Government of Andhra Pradesh, 2010. 21

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Approach The approach is to create branchless banking infrastructure by establishing a network of business correspondents in each village. Banks and Government will work together to open accounts and issue smart cards to the poor. To begin with, certain Government benefits like social security pensions and NREGS wage payments will be delivered through this network. In the next stage, banks will deliver main stream banking services like Savings, Deposits, Remittances, Loans, etc. The endeavour is to establish a banking outpost in village to include unbanked poor. Architecture Banks lay down the entire infrastructure, in order to achieve this, they procure service providers through a process of competitive bidding, and service providers typically extend two important services name. i. Provide Technology (Technology Provider) ii. Act as a “banking Correspondent on behalf of Bank by opening and operating banking outposts in every Grampanchayat and delivering financial services to people. In Andhra Pradesh, the smart card project started with Rural Development establishing a steering committee at the state level which consists of officials from the State Government, Reserve Bank of India (RBI) and Bankers. 8 Mandals (Blocks) are selected for SSP and NREGS payments by issuing smart cards and laying down EBT platform. 6 Banks namely, SBI, SBH, AB, UBI, APGVB and

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Axis Bank participated in the pilot, project work. Payments under the pilot started in May 2007 and are continuing till date. So far, 1.2 lakh beneficiaries are enrolled and an amount of Rs. 24.40 crores is disbursed. Critical Evaluation Ever since 1980s there is a substantial improvement in literacy level of rural women. The state government has introduced several educational institutions like Bridge Open School, Kasturba Girls High Schools, Sarva Siksha Abhiyan, Saksharata Mission and Adult Literacy Centres in rural areas which is turn created socio economic awareness among the self-help groups about growing importance of school education for sustainable development. With the growing number of graduates, the unemployment has increased in the state. Lack of job opportunities and failure of the government administration in creating jobs has become a serious challenge, leading to several strikes and agitations by the unemployed graduates in the state. In the field of higher education, the government has achieved a remarkable progress in establishing Junior, Degree and Professional colleges between 1980 and 2005 under private sector. The number of private Junior colleges in the state has increased from 398 to 2449 and Degree colleges from 450 to 1157 during 2006-07. Due to vast growth of corporate colleges, the elite class children could reap the benefits. However, the quality and results of government colleges in many parts of the state is not encouraging.

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Economy The economy of the state is basically agrarian and percentage of irrigation is below 40 percent. The plan allocation to irrigation by the state government is gradually declining. Most of the projects undertaken by the state government are not completed due to “interstate water disputes”. Though the state economy is well endowed with natural resources and minerals but is still lagging behind when compared with other states. In the field of per-capita income economy, food production and rural infrastructure, the state government is in a better position. Though there is an increase of 20% in irrigation, the tank irrigation has declined from 10.88 hectares in 1955.56 to 9 lakh hectares in 1980-81 and it remained to 7.47 hectares in 200001. However, the bore well, open wells and dug wells irrigation increased significantly which ultimately helping the farmers. It is noteworthy that percentage of area under food crops is higher in Coastal areas when compared to Rayalaseema and Telangana. However, the proportion of area under non-food crops has been increasing over the years due to the changes in cropping pattern, as a result of commercialization of agriculture. The development sector in Coastal region has resulted in widening regional imbalances among the people of Telangana and Rayalaseem regions. Industrial Growth and Employment Andhra Pradesh is lagging behind like many other states in the field of industrial growth. The index growth of industrial production is self explanatory.

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The employment growth of workers in different industries is stagnant during 1985-86 to 2000-01, the number of industrial workers increased from 823919 to 825827 which is only a marginal increase. It is a paradoxical truth that whenever industrial growth is taking place in the state, it is without additional jobs. Public investment in industrial sector decreased from 7.36 percent to 6.2 percent after the post liberalization. Power Tariff Andhra Pradesh government has witnessed a significant change in the field of power sector. The inflation capacity of power consumption pattern did not make any progress in the field of agriculture. The power sector is undergoing structural reforms which in turn increased tariff to all types of consumers including the farmers since 1996-97. The farmers who depend on dug wells and bore wells in Telangana and Rayalaseema, have been demanding for subsidized power supply in view of increase of cost of production in agriculture due to increased power tariff and charges. Added to this, village and small scale industries also could not benefit due to liberalization policies and lack of cooperation by power sector officials which are the major reasons for power crisis in the state22. Problems of Employment Generation Employment generation programmes and food for work scheme for the rural poor have been snatched away by the contractors, politicians and officials Pattern of Rural Development – A Study of Andhra Pradesh, SEER Division Planning Commission, Main Findings, New Delhi, 2010, pp.113-135. 22

119

denying employment to the poor village labourers. As a result, employment and daily income of village labourers have declined. In recent times, state government is witnessing continuous drought situation which is same even after 2007-08. Most of the villages from backward Telangana region and Rayalaseema are migrating to the big cities and industrial areas in search of livelihood. Drought prone districts like Mahabubngar in Telangana, Ananthapur in Rayalaseema and Vijayanagaram in Coastal Andhra region are still remain backward in respect of income, employment and better living condition. The liberalization affect on the artisans, households is also devastating in nature. The small units hitherto surviving on a bare minimum have become vulnerable due to competition from multinational products. Occupations like weaving, tailoring, poultry, carpentry, pottery are in deep crisis. The suicide death of handloom weavers has become a common feature in Telangana districts. Weaving is an important employment generation to village economy in this region. But the state government has totally failed to create support price to the weavers as such they are suffering without marketing facility. The situation in Andhra Pradesh reveals that real development and income is improved at the grassroots level. But due to lopsided developmental strategies pursued from time to time, balanced development of the state has become causality and regional imbalances went on widening. These imbalances have become stumbling block for the emotional integration of the people of all the three regions of the state.

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The state government has borrowed about Rs. 57000 crores from internal and external sources but no irrigation projects were so far completed. The policies of liberalization, privatization has been dispensing the rural masses from their opportunities. The benefits and subsidy meant for backward class and the weaker sections of the society (SC & STs) have been reduced year after the year and created serious financial crisis to the poor farmers. As such the village economy is facing economic and social crisis. The growth rate of agriculture is recorded as 2.47 percent which is below the all India level. It is significantly lower than proposed and much published in vision 2020 document of the state government. Agriculture growth rates have gone down drastically and employment situation in rural areas has not improved rather worsened. Greater Migration of Rural Labour There is an exodus of young rural labourers of backward and drought affected districts to towns and cities in search of livelihood. Rural labourers from Srikakulam and Vijayanagaram districts are migrating to Vishakhapatnam and Vijayawada while the Chittoor and Ananthapur labour migrate to Bangalore and Chennai. The labour from Nalgonda, Mahabubnagar, Ranga Reddy and Medak would migrate to Hyderabad, Mumbai and Ahmedabad, while old aged people keep staying in the villages. The critics are of the opinion that the highly publicized DWCRA, the SelfHelp Groups Scheme could not provide work to the rural women as expected. As far as the employment and income generating activity is concerned, very little is

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achieved. Whenever the products are produced by DWCRA groups, they are decorative and artistic and unable to compete with global multinational products. The experience reveals that, DWCRA Self-Help Groups have become a vote bank for few political wings. As a whole, the state is lagging behind in respect of industrial development. There is no industrial activity worth mentioning except rice mills, flour mills, oil mills and village artisan units. The Agro based units are closed due to problem in agriculture sector. The status of village artisans is further demoralizing year after year23. Summing Up It is a paradoxical truth that the process of liberalization, privatization and globalization, could not benefit the rural poor. In other words, the global market is making inroads in remote corners of Andhra Pradesh and badly affecting rural employment, income generation and consumption pattern. In the post liberalization scenario, there is a need to review the policies of state government with regard to utilization of cultivable land, river water and improving institutional finance to development rural infrastructure in the state. Andhra Pradesh is lagging behind in respect of agriculture, human development and industrial sectors. Non agriculture sector also could not develop due to lack of agriculture development. Hence, poverty, unemployment, hunger and suicidal deaths have become common in backward Telangana region. As such

23

Problems of Employment and Greater Migration of Labour in Andhra Pradesh, the Times of India, June 28, 2010.

122

unrest, agitation and regional imbalances provoked the people of Telangana to agitate for the cause of separate Telangana state. In spite of several bottlenecks, developmental departments and the district administration in Andhra Pradesh have played a significant role in achieving the goals of rural development, under public policy. Until and unless the rural infrastructure is decentralized with active people participation, it is not possible to achieve socio-economic development of backward villages in Andhra Pradesh.

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YEAR 1952

SCHEME Community Development Programme (CDP)

MINISTRY Rural Development

196061 196465 1965

Intensive Agriculture Development Programme(IADP) Intensive Agriculture Area Programme me (IAAP) Credit Authorization Scheme (CAS)

Agriculture

196667

High yielding Variety Programme (HYVP)

196667 1969

Green Revolution:

Agriculture

Rural Electrification Corporation

Power

1972

Scheme of Discriminatory Interest Rate

Banking Department, Finance Ministry

197273

Accelerated Rural Water Supply Programme (ARWSP)

1973

Drought Prone Area Programme :

1973

Crash Scheme for Rural Employment CSRE Marginal Farmer and Agriculture Labor Agency (MFALA) Small Farmer Development Scheme SFDS Command Area Development Programme : (CADP)

Ministry of DrinkingWater and Sanitation Department of Land Resources-Ministry of Rural Development Rural Development

197374 197475 1975

1975

Twenty Point Programme ( TPP)

1975

Integrated Child Development Services

1977

197778

National Institution of Rural Development Training, Investigation and Advisory for Rural Development Desert Development Programme: (DDP)

1977-

Food For Work Programme :

Agriculture Banking Department, Finance Ministry Agriculture

Agriculture Agriculture Ministry of Water Resources, River Development and Ganga Rejuvenation Ministry of Statistics and Programme Implementation Ministry of Women and Child Development Rural Development

Department of Land Resources-Ministry of Rural Development Rural Development

DETAILS Overall development of rural areas and people’s participation To provide loan for seeds and fertilizers to farmers To develop special harvest in agricultural area Involved qualitative credit control of Reserve Bank of India To increase the productivity of food grains by adopting latest varieties of inputs of crops To increase productivity. Confined to wheat production To provide electricity in rural areas To provide loans to the weaker sections of society at concessional interest rates of 4% Providing drinking water in villages Protection from drought by achieving environmental balance and by developing ground water resources For rural employment Technical & financial assistance to marginal farmers Technical & financial assistance to small farmers Better utilisation of irrigational capacities

Poverty eradication and an overall objective of raising the living standards. Tackle malnutrition and health problems in children 6 years of age and their mothers.

To control desert expansion by maintaining environmental balance 1 of 29 Providing food grainsPage to labour

78 197778

AntyodayaYojana :

Ministry of Housing and Urban Poverty Alleviation Rural Development

Scheme of Rajasthan, providing economic assistance to poorest families (Launched on 15th August);Educational and vocational training (Launched on October 2, 1980);Overall development of rural poor Employment for rural man force Sustainable opportunities of self employment to the women belonging to the rural families who are living below the poverty line Employment to landless farmers and labourers

1979

Training Rural Youth for Self Employment TRYSEM

1980

Integrated Rural DevelopmentProgramme :IRDP

Rural Development

1980

National Rural Developmentprogramme NREP Development of Women & Children in Rural Areas (DWCRA)

Rural Development

Rural Landless Employment Guarantee Programme (RLEGP) (Launched on August 15) Farmers Agriculture Service Centers FASCs

Rural Development

1984

National Fund for Rural Development :

Rural Development

1985

Comprehensive Crop Insurance Scheme: Council of Advancement of People’s Action & Rural Technology (CAPART) Self EmploymentProgramme for the Poor

Agriculture

Tell the people use of improved instruments of agriculture To grant 100% tax rebate to donors and also to provide financial assistance for Rural Development projects Crop Insurance

Rural Development

Assistance to rural people

Ministry of Housing and Urban Poverty Alleviation Ministry of Drinking Water and Sanitation Ministry of Drinking Water and Sanitation Department of Financial Services, Ministry of Finance Rural Development

SEPUP:Self-employment through credit and subsidy

1982

1983

198384

1986

1986

1986

National Drinking Water Mission

1991

1988

Above scheme renamed and upgraded to Rajiv Gandhi National Drinking Water Mission Service Area Account

1989

JawaharRojgarYojana

1989

Nehru RojgarYojana NRY

1990

Agriculture & Rural Debt Relief Scheme: ARDRS

Rural Development

Agriculture

Ministry for Housing and Urban Poverty Alleviation Departmentof Financial Services, Ministry of Finance

: For Rural Drinking Water

: For Rural Drinking Water

Rural Credit

: JRY Employment to rural unemployed Employment to Urban unemployed Exempt Bank loans up to Rs. 10,000 for rural artisans and weavers

Page 2 of 29

1990

Scheme for Urban Micro Enterprises SUME

1990

Scheme of Urban wage Employment SUWE

1990

Scheme of Housing and Shelter Upgradation (SHASU)

1991

National Housing Bank Voluntary Deposit Scheme

1992

National Renewal Fund

1993

Employment Assurance Scheme (EAS) (Launched on October, 2)

1993

Members of Parliament Local Area Development Scheme MPLADS (December 23, 1993) Scheme for Infrastructural Development in Mega Cities : SIDMC

1994

Ministry of Micro, Small and Medium Enterprises and Ministry of Housing and Urban Poverty Alleviation Ministryof housing and urban poverty alleviation Ministry of Housing and Urban Poverty Alleviation NHB is a fully owned subsidy of RBI. All the operations and schemes are taken by RBI Department of Industrial Policy and Promotion, Ministryof Commerce and Industry Different ministriesas per the work provided Ministry of Statistics and Programme Implementation Ministry of Urban Development

1993

District Rural Development Agency DRDA

Rural Development

1993

MahilaSamridhiYojana (October 2, 1993)

1994

Child labor Eradication Scheme

National Backward Classes Finance and Development Corporation under Ministry of Social Justice and Empowerment Ministry of Labour and Employment

1995

1995

prime Minister Integrated Urban Poverty Eradication Programme PMIUPEP Mid Day Meal Scheme:

1996

Group Life Insurance Scheme for

Ministry for Housing and Urban Poverty Alleviation Department of School Education and Literacy, Ministry of HRD Ministry of Finance

Assist urban small entrepreneurs

Scheme for urban poor

Providing employment by shelter Upgradation Using black money by constructing low cost housing for the poor

social safety net to the workers who are likely to be affected by technological up-gradation and modernisation in the Indian industry Employment of at least 100 days in a year in villages Sanctioned 1 crore per year for development works Water supply, sewage, drainage, urban transportation, land development and improvement slums projects in metro cities Financial assistance to rural people by district level authority Encourage rural women to deposit in Post office schemes

Shift child labour from hazardous industries to schools To eradicate urban poverty

Nutrition to students in primary schools to improve enrolment, retention and attendance Insurance in rural area for low Page 3 of 29

1995 199798

Rural Areas National Social Assistance programme : Ganga KalyanYojana

Rural Development

1997

Kastoorba Gandhi Education Scheme: (15 August 1997)

1997

2000

SwaranJayantiShahariRojgarYojana: Ministry for Housing and Urban Poverty Alleviation Bhagya Shree Bal Kalyan Policy Annapurna Yojana Ministry of Consumer Affairs, Food and Public Distribution SwaranJayanti Gram Rural Development SwarojgarYojana Jawahar Gram SamriddhiYojana Rural Development Jan Shree BimaYojana Insurance Department of Financial Services, Ministry of Finance Pradhan MantriGramodayaYojana Antyodaya Anna Yojana Ministry of consumer affairs, food and public distribution Pradhan Mantri Gram SadakYojana Rural Development

2001

SampoornaGrameenRojgarYojana

Rural Development

2001

Valmiki Ambedkar AwasYojana VAMBAY

2003

Universal Health Insurance Scheme:

2004

VandeMataram Scheme VMS

Ministry for Housing and Urban Poverty Alleviation Department of Financial Services, Ministry of Finance Ministry of Health and Family Welfare

2004

National Food for Work programme

Rural Development

2004

Kastoorba Gandhi BalikaVidyalaya

2005

Janani SurakshaYojana

2005

Bharat Nirman

Department of School Education and Literacy, Ministry of HRD Ministry of Health and Family Welfare Rural Development

1998 1999

1999 1999 2000

2000 2000

Ministry of HRD

premium Assist BPL people Provide financial assistance to farmers for exploring ground water resources Establish girls schools in low female literacy areas (district level) Urban employment

Upliftment of female children 10 kgs food grains to elderly people

Self-employment in rural areas Village infrastructure BPL people

Basic needs of rural people To provide food security to poor

Connect all villages with nearest pukka road Employment and food security to rural people Slum houses in urban areas

Health insurance for rural people Initiative of public Private partnership during pregnancy check up Supplementary wage as foodgrains for work Setting up residential schools at upper primary levels for girls belonging to predominantly OBC, SC & ST Providing care to pregnant women Development of India through irrigation, Water supply, Housing, Road, Telephone and electricity Page 4 of 29

2005

National Rural Health Mission:

Ministry of Health and Family Welfare

2005

Rajeev Gandhi GrameenVidyuti Karan Yojana:

Ministry of Power

2005

JawaharLal Nehru National Urban Renewal Mission: (JNNURM) National Rural Employment Guarantee Scheme NREGS

Urban Development

2007

RastriyaSwasthyaBimaYojana :

Ministry of Health and Family Welfare

2007

AamAadmiBimaYojana

Department of Financial Services, Ministry of Finance

2009

Rajiv AwasYojana

Ministry for Housing and Urban Poverty Alleviation

To make India slum free in 5 years

2009

Bachat Lamp Yojna

Ministry of Power

Social Sector Scheme pertaining to Pension Sector

2010

Indira Gandhi MatritvaSahyogYojana

Ministry of Women and Child Development

A cash incentive of Rs. 4000 to women (19 years and above) for the first two live births.

2010

Swavalamban

Ministry of Finance

Pension scheme to the workers in unorganised sector. Any citizen who is not part of any statutory pension scheme of the Government and contributes between Rs. 1000 and Rs. 12000/- per annum, could join the scheme. The Central Government shall contribute Rs. 1000 per annum to such subscribers.

2011

Swabhiman

Ministry of Finance

To make banking facility available to all citizens and to get 5 crore accounts opened by Mar 2012. Replaced by Pradhan Mantri Jan DhanYojana.

2006

Rural Development

Accessible, affordable, accountable, quality health services to the poorest of the poor on remotest areas of the country Extending electrification of all villages and habitations and ensuring electricity to every household

100 days wage employment for development works in rural areas Health insurance to all workers in unorganized area below poverty line Insurance cover to the head of the family of rural landless households in the country

Page 5 of 29

2011

Sabla or Rajiv Gandhi Scheme for Empowerment of Adolescent Girls

2011

National Rural Livelihood Mission(NRLM)

MoWCD

Empowering adolescent girls (Age) of 11–18 years with focus on out-of-school girls by improvement in their nutritional and health status and upgrading various skills like home skills, life skills and vocational skills. Merged Nutrition Programme for Adolescent Girls (NPAG) and Kishori Shakti Yojana (KSY).

MoRD

This scheme will organize rural poor into Self Help Group(SHG) groups and make them capable for selfemployment. The idea is to develop better livelihood options for the poor.

Government schemes in India

Active Atal Pension Yojana BetiBachao, BetiPadhaoYojana Deen Dayal UpadhyayaAntyodayaYojana (DAY) Direct Benefit Transfer (DBT) Deen Dayal Gram JyotiYojana (DDUGJY) Deen Dayal UpadhayaGrameenKaushalYojana (DDU-GKY) Domestic Efficient Lightening Programme (DELP) Heritage City Development And Augmentation Schemes Yojana(HRIDAY) Housing for All Kishore VaigyankiProtsahanYojana (KVPY) Integrated Child Development Services (ICDS) RashtriyaKrishiVikasYojana Midday Meal Scheme National Social Assistance Scheme(NSAP) National Service Scheme (NSS) Indira AwaasYojana (PMAY) Pradhan Mantri Gram SadakYojana (PMGSY) Page 6 of 29

Pradhan Mantri Jan DhanYojana (PMJDY) Pradhan MantriKrishiSinchaiYojana (PMKSY) Pradhan Mantri Mudra Yojana (PMMY) Pradhan MantriJeevanJyotiBimaYojana Pradhan MantriSurakshaBimaYojana Pradhan MantriUjjwalaYojana SansadAdarsh Gram Yojana(SAGY) Soil Health Card Scheme SwaranJayanti Gram SwarojgarYojana (SGSY) Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission Indradhanush National Rural Health Mission (NRHM ) Missions Accredited Social Health Activist (ASHA) SarvaShikshaAbhiyan Smart Cities Mission TB-Mission 2020 Bharatmala Indian Rivers Inter-link Projects Sagar Mala project SetuBharatam Accessible India Campaign Digital India Make in India Campaigns Skill India Startup India Swachh Bharat Abhiyan Unnat Bharat Abhiyan Aadhaar Business identification number Indian passport IDs Permanent account number Ration card (India) Unorganised Workers' Identification Number Voter ID (India) BhamashahYojana JyotigramYojana State Make in Maharashtra Vibrant Gujarat Page 7 of 29

Closed Bharat Nirman Central Government Health Scheme (CGHS) Indira GandhiMatritvaSahyogYojana (IGMSY) Integrated Rural DevelopmentProgramme (IRDP) Janani SurakhshaYojana (JSY) JawaharLal Nehru National Urban Renewal Mission(JNNURM) Kasturba Gandhi BalikaVidyalaya Members of Parliament Local Area Development Scheme (MPLADS) National Literacy MissionProgramme (NLM) Schemes National Pension Scheme (NPS) National Rural Livelihood Mission (NRLM) Nirmal Bharat Abhiyan Pooled Finance Development Fund Scheme Pradhan MantraiAdarsh Gram Yojana (PMAGY) Revised National Tuberculosis Control Programme (RNTCP) RashtriyaSwasthyaBimaYojana (RSBY) SampoornaGrameenRojgarYojana Swavalamban Voluntary Disclosure of Income Scheme MERGED SCHEMES 1 National Food for Work programme was merged with NREGA 2 SampoornaGrameenRojgarYojana merged with NREGA IntensifiedJawaharRojgarYojana 1993 was merged with Employment Assurance Scheme 1996 which was later merged with 3 SampoornaGrameenRojgarYojana 2001 IRDP , TRYSEM, DWCRA, Million Wells Scheme, SITRA & Ganga 4 Kalian Yojana merged with SwaranJayanti Gram SwarojgarYojana Rural Landless Employment Guarantee programme merged with JawaharRojgarYojana which was replaced by Jawahar Gram 5 SamridhiYojana (1999) Jawahar Gram SamridhiYojana was merged with 6 SampoornaGrameenRojgarYojana (2001) 2009 DhoodhGanga Government of India’s dairy business enterprise scheme is Doodh Ganga Yojana. This scheme offers fractional interest freecredits & capitalgrant provisions to encourage planned dairy farming & generate service openings in Himachal Pradesh.

Page 8 of 29

Department of Animal Husbandry of Government of India has launched this scheme as a dairy undertakingassets plan to be executed by the National Bank for Agriculture &Rural Development (NABARD). The programme helps to convertmicro dairy farming ventures into planned dairy commerce ventures. DoodhGanga Yojana aims to carefully encourage 50,000 rural families by the arrangement of ten thousand Self Help Groups inside 3 year duration. The programme makes complete necessities to vend dairy goods on a larger level. The chief aim of the proposal was to generate optional income for local inhabitants concerned with the project. The secondary aim was to start a 'white revolution' by the flourishing execution of the proposal.

2008 LadliScheme According to the scheme the girlchild obtains free education & upbringing with additionally after eighteen years of age she will be permitted to acquire one lakh rupees. This money is given in her name and it can be utilized for the marriage of the girl which isconsidered by some parents as burden in the society.  

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Ministry of Rural Development It has two Departments : Department of Land Resources and Department of Rural Development The erstwhile Department of Drinking Water and Sanitation has been removed from Ministry of Rural Development and established as an independent Ministry. Rural DevelopmentMinistry: Timeline 1952 - Community project administration set up under the planning commission for managing community development programme me (inaugurated - 2 oct,1952) 1974 - Department of Rural Development established under the Ministry of Agriculture 1979 - Department of Rural Development elevated to status of Ministry of Rural Reconstruction -The Ministry was renamed as Ministry of Rural Development and again changed into dept. under Ministry of Agriculture and Rural Development. 1985 - rechristened as Ministry of Agriculture 1991 - Department of Rural Development was again changed to Ministry of Rural Development 1995 - Ministry was renamed Ministry of Rural Areas and Employment. 1999 -Name was changed to Ministry of Rural Development Schemes of Ministry of Rural Development Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) The act was notified in 2005, all the rural areas have been covered since 2008 Main aim is improve the livelihood security of rural household A right based act i.e providing unskilled manual work to those who demand it Who can demand work? : any adult member of a rural household who is ready to do unskilled manual work How many days of work? : upto 100 days of guaranteed wage employment in a financial year ( April1st to March 31st). The days can be increased by the central govt. or the state govt. concerned. How is it guaranteed: providing work within 15 days of the demand for work or else unemployment allowance has to be given. Unemployment allowance to be provided by the state govt. at a rate of 1/4th of the wage paid for the first 30 days and half of the wage rate for rest of the financial year. Wage to material ration: 60 to 40 ratio for permissible work. No contractor or machinery to be involved. Implementation of Act PRI to be responsible for planning, monitoring and implementation of the work. Gram sabha to recommend works which will be executed by the panchayat. Page 9 of 29

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The Programme Officer (appointed by the state govt. at intermediate panchayat level) shall allot at least 50% of the works in terms of its cost under a Scheme to be implemented through the Gram Panchayats. 1/3 of the beneficiaries have to be women Methods to ensure transparency in implementation: Social audit to be organized by the gram panchayat District level ombudsman for grievance redressal, the ombudsman will be independent of the central or the state government. Photographs of the work site to be appended at the stage of before start of the work, during course of the work and once the work is completed. Payments to the beneficiaries are made through post office and savings bank account. Providing Urban Amenities in Rural Areas (PURA) Why : Lack of modern amenities, livelihood opportunities, lack of physical and social infrastructure leading to migration among rural population towards cities and towns In the year 2003 APJ Abdul Kalam put forward the idea of integrated development of villages leading to urbanization How to achieve this objective? - By providing Physical connectivity, Electronic Connectivity, and knowledge connectivity. All of this will lead to economic connectivity of rural areas. Implementation: Implemented on pilot basis for three years, starting from 2004-05 (10th five year plan). Lessons learnt from this phase : Not holistic, due to lack of convergence with development programmes of other Department No clear guidelines or business plan. Infrastructure centric without giving due consideration to economic activity. Site selection was not based on growth potential Revamped PURA, after consultation with government Departments and ADB. Launched in 11th five year plan as a pilot project Features of revamped PURA Convergence with other government schemes, Implemented in PPP mode, Implementation in project mode with lifestyle approach; construction, operation and maintenance built into the cost of infrastructure. Gram Panchayat will partner with the private partner, thereby increasing accountability at the grass root level itself. CAPART (Council for Advancement of People's Action and Rural Technology) Implementing Agency: Autonomous organization (Registered Society) under the Department of Rural Development Set up in 1986 Objective: To promote voluntary action among rural people through the participation of the entire community, and promoting technology that is appropriate for the rural setup. To support schemes that increase employment opportunities, increases self-reliance, generates awareness, creates organization and improves the overall quality of life. How CAPART will achieve this objective: By providing funding to voluntary organizations It has also set up 9 regional centres. These regional centres are allowed to sanction project proposals with an outlay of 10 lakh. Funding to voluntary organizations is decided based on the nature of the project and ability of the organization to complete the project. CAPART has its own monitoring personnel. Drought Prone Area Programme and Desert Development Programme The overall objective of the programme is to mitigate the impact of droughts on crop production, livestock, humans, water resources and productivity of land ultimately leading to drought proofing of the target region In case of desert development programme; the objective is to minimize the adverse effect of drought, to control desertification and rejuvenating the natural resource base of the identified Desert area. Since 1995-96 both these programme are implemented under Integrated Watershed Development Programme Page 10 of 29

SN Govt Scheme

Details 

Launched on 2nd October 2014)



To have clean India by 2nd October 2019

Ministry-Ministry of Drinking Water and Sanitation



Ministry of Urban Development

Eliminate open defecation by constructing toilets for households, communities



Eradicate manual scavenging



Introduce modern and scientific municipal solid waste management practices



Enable private sector participation in the sanitation sector

SWACHH BHARAT ABHIYAN

1

Change people’s attitudes to sanitation and create awareness BAL SWACHH MISSION 2

(Part of SwacchBharat Mission but implemented by MinistryWomen and Child Development)



Launched on 14th November 2014)



Awareness about the cleanliness of the children

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Launched on 15th July 2015 with an aim to train over 40 crorepeople in India in different skills by 2022. It includes various initiatives of the government like "National Skill Development Mission", "National Policy for Skill Development and Entrepreneurship, 2015", "Pradhan MantriKaushalVikasYojana (PMKVY)" and the "Skill Loan scheme".



To create jobs for youth of the country



Skill Development in Youth



Making Skill available to All Youth of India



UK has entered into a partnership with India under this programme. Virtual partnerships will be initiated at the school level



Launched on 29th April 2015



A Smart City is anurban development



Vision to integrate multipleinformation and communication technology (ICT) solutions in asecure fashion to manage a city’s assets

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In a first Government of India will develop 100 Smart Cities in India

SKILL INDIA 3

Ministry-Ministry of Skill Development and Entrepreneurship

SMART CITIES 4

Ministry- Ministry of Urban Development

Page 11 of 29

SN Govt Scheme

Details 

Under this scheme Cities from all States are selected

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It was launched on 25th September 2014

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The campaign was designed by Wieden and Kennedy

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To make India a manufacturing hub.

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Make in India is an initiative of the Government of India to encourage multinational, as well as domestic, companies to manufacture their products in India.

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The major objective behind the initiative is to focus on job creation and skill enhancement in twenty-five sectors of theeconomy

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India would emerge, after initiation of the programme (and if successful), as the top destination globally for foreign direct investment, surpassing theUnited States of America as well as China

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The initiative also aims at high quality standards and minimising the impact on the environment

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NamamiGange Project or Namami Ganga Yojana is an ambitious Union Government Project which integrates the efforts to clean and protect the Ganga River in a comprehensive manner.

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The project is officially known as Integrated Ganga Conservation Mission project or ‘Namami Ganga Yojana’.

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This project aims at Ganga Rejuvenation by combining the existing ongoing efforts and planning under it to create a concrete action plan for future.

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Launched on 1st July 2015

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To transform India’s economy

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The initiative includes plans to connect rural areas with highspeed internet networks Digital India has three core components.

MAKE IN INDIA 5

(Dept. of Industrial Policy and Promotion , Ministry of Commerce and Industry) (Coordinating Agency-PMO)

NAMAMI GANGE 6

Ministry-Ministry of Water Resources, River Development & Ganga Rejuvenation

DIGITAL INDIA 7

Ministry of Communications and Information Technology

These include: 

The creation of digital infrastructure

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Delivering services digitally

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Digital literacy The Government of India entity Bharat Broadband Network Limited which executes the National Optical Fibre Network project will be the custodian of Digital India (DI) project. BBNL had ordered United Telecoms Limited to Page 12 of 29

SN Govt Scheme

Details connect 250,000 villages through GPON to ensure FTTH based broadband. This will provide the first basic setup to achieve towards Digital India and is expected to be completed by 2017. 

The Union Ministry of Tourism had launched the Swadesh Darshan Scheme in 2014-15 with an aim to develop theme based tourist circuits in the country. These tourist circuits will be developed on the principles of high tourist value, competitiveness and sustainability in an integrated manner. They will be developed by synergizing efforts to focus on concerns and needs of all stakeholders to enrich tourist experience and enhance employment opportunities. Under this scheme, 13 thematic circuits have been identified for development. They are Buddhist Circuit, North-East India Circuit, Coastal Circuit, Himalayan Circuit, Krishna Circuit, Desert Circuit, Eco Circuit, Wildlife Circuit, Tribal Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit and Heritage Circuit.

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Launched on 22nd January 2015

SWADESH DARSHAN 8 Ministry-Ministry of Tourism

9

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The scheme was launched by Prime Minister NarendraModi on 22 January 2015 as a part of the BetiBachao, BetiPadhao campaign.



The scheme currently provides an interest rate of 8.6% and tax benefits.



The account can be opened at any India Post office or a branch of some authorised commercial banks



(Launched on 11th October 2014)-Each MP to develop three villages by 2019, eight villages by 2024.



Identification of villages

SUKANYA SAMRIDHI ACCOUNTMinistry of Finance

PRADHAN MANTRI SANSAD MPs can select any gram panchayat, other than their own village or that of their spouse, to be developed as an Adarsh Gram. The village ADARSH GRAM YOJANA must have a population of 3000-5000 people if it is located in the 10 Ministry of Rural plains, or 1000-3000 people if located in hilly areas. Development Lok Sabha MPs can choose a village from their constituency, and Rajya Sabha MPs from the state from which they are elected. Nominated members can choose a village from any district of the country. MPs which represent urban constituencies can identify a village from a neighbouring rural constituency.

PRADHAN MANTRI JAN 11 DHAN YOJANA Department of Financial



This financial inclusion campaign was launched by the Prime Minister NarendraModi on 28 August 2014to give financial services to weaker section of society. Page 13 of 29

SN Govt Scheme services, Ministry of Finance

Details 



PRADHAN MANTRI SURAKSHA BIMA YOJANA

BETI BACHAO BETI PADHAO YOJANA This is a joint initiative of 13 Ministry of Women and Child Development, Ministry of Health and Family Welfare and Ministry of Human Resource Development.

ATAL PENSION SCHEME 14 Department of Financial services, Ministry of Finance

Launched on 9th May 2015



Eligibility: Available to people in age group 18 to 70 years with bank account.



Premium: Rs.12 per annum.



Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.



Risk Coverage: For accidental death and full disability – Rs.2 Lakh and for partial disability – Rs.1 Lakh.



Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.



(Launched on 22nd January 2015)-To generate awareness of welfare service meant for girl child and women.



introduced to address the issue declining Child Sex Ratio (CSR)



According to census data, the child sex Ratio (0–6 years) in India was 927 girls per 1,000 boys in 2001, which dropped drastically to 918 girls for every 1,000 boys in 2011. A 2012UNICEF report has ranked India 41st among 195 countries.



This is being implemented through a national campaign and focussed multi sectoral action in 100 selected districts low in CSR, covering all States and UTs. This is a joint initiative of Ministry of Women and Child Development, Ministry of Health and Family Welfare and Ministry of Human Resource Development.



(Launched on 9th May 2015)-for unorganised sector ‘s workers

12 Department of Financial services, Ministry of Finance

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme. Guinness World Records Recognises the Achievements made under PMJDY

In Atal Pension Yojana, for every contribution made to the pension fund, The Central Government would also cocontribute 50% of the total contribution or₹1,000 (US$15) per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years. The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be Page 14 of 29

SN Govt Scheme

Details 20 years or more. 

(Launched on 21st January 2015)-To develop heritage cities.



With duration of 27 months (completing in March 2017) and a total outlay of INR 500 Crores, the Scheme is being implemented in 12 identified Cities namely, Ajmer, Amaravati, Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.



The Scheme supports development of core heritage infrastructure projects which shall include revitalization of urban infrastructure for areas around heritage assets identified/approved by the Ministry of Culture, Government of India and State Governments.

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA



(Launched on 9th May 2015)-Life insurance scheme by Government

Department of Financial services, Ministry of Finance



Pradhan MantriJeevanJyotiBimaYojana is available to people between 18 and 50 years of age with bank accounts.



(Launched on 8th April 2015) to provide up to INR 10 lakh to small entrepreneur.



MUDRA Mission

HRIDAY (NATIONAL HERITAGE CITY DEVELOPMENT AND 15 AUGMENTATION YOJANA) SCHEME Ministry of Urban Development

16

MUDRA BANK YOJANA 17 Department of Banking, Ministry of Finance

KRISHI AMDANI BIMA 18 YOJANA

To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.



Scheme for farmer



To provide water to all field in the Country.



Is a national mission to improve farm productivity and ensure better utilization of the resources in the country.



(Launched on 25th September 2014)- To provide employment to youth residing in rural area.



Demand led skill training at no cost to the rural poor



Mandatory coverage of socially disadvantaged groups (SC/ST 50%; Minority 15%; Women 33%)

Ministry of Agriculture PRADHAN MANTRI GRAM 19 SINCHAI YOJANA Ministry of Agriculture 20

DEEN DAYAL UPADHYAYA GRAMEEN KAUSHALYA 21 YOJANA Ministry of Rural Development

Page 15 of 29

SN Govt Scheme DEENDAYAL UPADHYAYA GRAM JYOTI YOJANA

Details



It is a Government of India programme aimed at providing 24x7 uninterrupted power supply to all homes in rural India



Mahatma Gandhi PravasiSurakshaYojana is a special social security scheme which includes Pension and Life Insurance, introduced by Ministry of Overseas Indian Affairs for the overseas Indian workers in possession of Emigration Check Required (ECR) passports.



It is a voluntary scheme designed to help workers to meet their three financial needs: saving for retirement, saving for their return and resettlement, and providing free life insurance offering coverage for death from natural causes.



(Launched on 25th December 2014)

22 Ministry of Power 2015

MAHATMA GANDHI PRAVASI SURAKSHA YOJANA 23 Ministry of Overseas Indian Affairs

The Mission Indradhanush, depicting seven colours of the rainbow, targets to immunize all children against seven vaccine preventable diseases, namely: INDRADANUSH SCHEME 24 Ministry of Health and Family Welfare

1. 2. 3. 4. 5. 6. 7.

Diphtheria Pertussis (Whooping Cough) Tetanus Tuberculosis Polio Hepatitis B Measles.

In addition to this, vaccines for Japanese Encephalitis (JE) and Haemophilus influenzae type B (HIB) are also being provided in selected states.

SOIL HEALTH CARD SCHEME Department of Agriculture, 25 Cooperation and Farmer’s Welfare (Ministry of Agriculture)



Soil Health Card Scheme is a scheme launched by the Government of India in February 2015.



Under the scheme, the government plans to issue soil cards to farmers which will carry crop-wise recommendations of nutrients and fertilisers required for the individual farms to help farmers to improve productivity through judicious use of inputs.



All soil samples are to be tested in various soil testing labs across the country.



Thereafter the experts will analyse the strength and weaknesses (micro-nutrients deficiency) of the soil and suggest measures to deal with it.



The result and suggestion will be displayed in the cards.

Page 16 of 29

SN Govt Scheme

Details The government plans to issue the cards to 14 crore farmers



The main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.

Overall targets

UJJALA 26



 Overall target of number of incandescent bulbs to be replaced - 200 UnnatJyoti by Affordable LEDs million for All  Expected overall annual energy savings - 10.5 billion KWh Ministry of Power  Expected reduction of load - 5000 MW  Expected annual cost reduction of consumer bills - Rs. 40,000 crore  Annual estimated greenhouse gas emission reductions - 79 million tonnes of CO2



Udaan is a Special Industry Initiative for Jammu & Kashmir in the nature of partnership between the corporates of India and Ministry of Home Affairs and implemented by National Skill Development Corporation. The programme aims to provide skills training and enhance the employability of unemployed youth of J&K. The Scheme covers graduates, post graduates UDAAN SCHEME and three year engineering diploma holders. It has two 27 Ministry of Skill Development objectives: and Entrepreneurship  (i) To provide an exposure to the unemployed graduates to the best of Corporate India; 

(ii) To provide Corporate India, an exposure to the rich talent pool available in the State. 

This Is the latest scheme launched By PM NarendraModi



National RU URBAN Mission Was Launched In Chhattisgarh



The Mission also dubbed as Shyama Prasad Mukherjee Rurbanmission (SPMRM) aims to spur social, economic and infrastructure development in rural areas by developing a cluster of 300 Smart Villages over the next 3 years across the country.



The Mission aims at development of rural growth clusters which have latent potential for growth, in all States and UTs, which would trigger overall development in the region.



These clusters would be developed by provisioning of economic activities, developing skills & local entrepreneurship and providing infrastructure amenities.



The Rurban Mission will thus develop a cluster of Smart Villages.

NATIONAL RU URBAN MISSION SHYAMA PRASAD 28 MUKHERJI RURBAN MISSION Ministry of Rural Development

Page 17 of 29

SN Govt Scheme PANDIT DEENDAYAL UPADHYAY SHRAMEV 29 JAYATE KARYAKRAM

Details 

(Launched on 16th October 2014)



Unified Labour Portal (ShramSuvidha) and a Transparent & Accountable Labour Inspection Scheme to facilitate ease of compliance especially for four Central Government Organisations i.e. ESIC, EPFO, DGMS and CLC.

Union Labour Ministry KISAN VIKAS PATRA



(Relaunched in 2014) – Saving Certificate Scheme

30 Ministry of finance 

Atal Mission for Rejuvenation and Urban Development (earlier name JNNURM)



The scheme was launched by Prime Minister NarendraModi in June 2015 with the focus of the urban renewal projects is to establish infrastructure that could ensure adequate robust sewerage networks and water supply for urban transformation. Rajasthan was the first state in the country to submit State Annual Action Plan under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).



Pilgrimage Rejuvenation and Spiritual Augmentation-To improve the infrastructure at pilgrimage places.



The Union Cabinet has approved Pradhan MantriFasalBimaYojana

PRADHAN MANTRI FASAL BIMA YOJANA



It is a new crop insurance scheme to boost farming sector in the country.

Ministry of Agriculture



It is farmers’ welfare scheme



The scheme aims to reduce the premium burden on farmers and ensure early settlement of crop insurance claim for the full insured sum.



The Union Cabinet as given its approval for establishment of Atal Innovation Mission (AIM) and Self Employment and Talent Utilisation (SETU) in NITI Aayog.



This move seeks to give substantial boost to the innovation ecosystem and to catalyse the entrepreneurial spirit in the country.



AIM and AIM Directorate will be established that will help in implementation of mission activities in a focussed manner.



Its headquarters will be in New Delhi.



NITI Aayog will hire Mission Director and other appropriate manpower. Mission High Level Committee (MHLC) will guide the Mission.



It will take all decisions related to approval of requisite Page 18 of 29

AMRUT 31 Ministry of Urban Development

PRASAD 32 Ministry of Tourism

33

ATAL INNOVATION MISSION 34 AND SETU IN NITI AAYOG PMO

SN Govt Scheme

Details guidelines and implementation of various elements of AIM and SETU. 

PAHAL Union Petroleum and Natural

PratyakshaHastaantaritLaabh (PAHAL) scheme has been acknowledged as the world’s largest cash transfer programme (households) by the Guinness Book of World Records. PratyakshaHastaantaritLaabh (PAHAL) scheme The scheme was formally launched as Direct Benefit Transfer Scheme for LPG subsidy in 2013 in 291 districts

35 Gas Ministry



SAHAJ



Union Petroleum and Natural Gas Ministry

For online release of new LPG connections for the consumers as parts of its consumer friendly initiative.



SAHAJ facility will enable the customers to post online request for a new connection by filing Know Your Customer (KYC) form by uploading bank account details and photographs.

 

For empowering minorities. Aim to address educational and livelihood needs of minority communities in general and Muslims in particular, which lags behind in terms of educational attainments than the other minority communities.

36

NAI MANZIL

37 Ministry ofMinority Affairs

Make in India focuses on the following 25 sectors of the economy:                    

Automobiles Automobile Components Aviation Biotechnology Chemicals Construction Defence manufacturing Electrical Machinery Electronic systems Food Processing Information Technology and Business process management Leather Media and Entertainment Mining Oil and Gas Pharmaceuticals Ports and Shipping Railways Renewable Energy Roads and Highways Page 19 of 29

    

Space and astronomy Textiles and Garments Thermal Power Tourism and Hospitality Wellness

100% FDI is permitted in all the above sectors, except for space (74%),defence (49%) and news media (26%).

Mobile Apps KisanSuvidha and PusaKrishi launched:Ministry of Agriculture & Farmers Welfare has launched two mobile apps called KisanSuvidha and PusaKrishi for benefit of farmers and all other stake holders. RashtriyaKrishiVikasYojana (राष्ट्रीयकृषिषिकासयोजना) is a special Additional Central Assistance Scheme which was launched in August 2007 to orient agricultural development strategies, to reaffirm its commitment to achieve 4 per cent annual growth in the agricultural sector during the 11th plan. The scheme was launched to incentivize the States to provide additional resources in their State Plans over and above their baseline expenditure to bridge critical gaps.

The RKVY covers all sectors such as Crop Cultivation, Horticulture, Animal Husbandry and Fisheries, Dairy Development, Agricultural Research and Education, Forestry and Wildlife, Plantation and Agricultural Marketing, Food Storage and Warehousing, Soil and Water Conservation, Agricultural Financial Institutions, other Agricultural Programmes and Cooperation. PRADHAN MANTRI KRISHI SINCHAYEE YOJANA (PMKSY) PMKSY will have following programme components: A. Accelerated Irrigation Benefit Programme (AIBP).To focus on faster completion of ongoing Major and Medium Irrigation including National Projects. B. PMKSY (HarKhetkoPani) 1. Creation of new water sources through Minor Irrigation (both surface and ground water) 2. Repair, restoration and renovation of water bodies; strengthening carrying capacity of traditional water sources, construction rain water harvesting structures (Jal Sanchay); 3. Creating and rejuvenating traditional water storage systems like Jal Mandir (Gujarat); Khatri, Kuhl (H.P.); Zabo (Nagaland); Eri, Ooranis (T.N.); Dongs (Assam); Katas, Bandhas (Odisha and M.P.) etc. at feasible locations. C. PMKSY (Per Drop More Crop) 1. Programme management, preparation of State/District Irrigation Plan, approval of annual action plan, Monitoring etc. 2. Promoting efficient water conveyance and precision water application devices like drips, sprinklers, pivots, rain-guns in the farm (Jal Sinchan); Page 20 of 29

3. Information Communication Technology (ICT) interventions through NeGP-A to be made use in the field of water use efficiency, precision irrigation technologies, on farm water management, crop alignment etc. and also to do intensive monitoring of the Scheme. D. PMKSY (Watershed Development) 1. Effective management of runoff water and improved soil & moisture conservation activities such as ridge area treatment, drainage line treatment, rain water harvesting, in-situ moisture conservation and other allied activities on watershed basis. 2. Converging with MGNREGS for creation of water source to full potential in identified backward rain fed blocks including renovation of traditional water bodies E- National Agriculture market Launched       

NAM is envisaged as a pan-India electronic trading portal Seeks to network the existing APMC and other market yards to create a unified national market for agricultural commodities. Not a parallel market but a network of physical mandis which can be accessed online – a virtual mandi of mandis Enable the buyers / sellers situated within and outside the State to participate in trading at the local mandis. Provide end-to-end solutions to all sellers and buyers: grading, price discovery, payment, transportation and delivery. Rationalize transaction costs, reduction of wastage, provide higher return to farmers, better quality to consumers. Real time accurate information sharing with all stakeholders - win-win situation for all stakeholders.

NAM is to be implemented by Small Farmers' Agri-Business Consortium (SFAC) with the help of M/s Nagarjuna Fertilizers and Chemicals Limited in consortium with Techno Brain Global FZE, Selected as Strategic Partner through e-procurement Process Broad Features of Scheme      

Department of Agriculture, Cooperation & Farmers Welfare (DAC & FW) would be sharing

the software free of cost with the state/mandi DAC & FW is providing one-time grant to mandis for purchase of hardware and assaying equipment up to an amount of INR 30 lakhs Strategic Partner (SP) would provide free training, handholding, and trouble shooting for one year to mandis (SP to be paid by SFAC as per milestones) SP to upgrade and maintain the platform for 5 years (as per the provisions of concession agreement) NAM will initially be rolled out in 585 selected mandis in States by 2017-18. NAM to be rolled out on demand in States who have fulfilled the following reforms in their agricultural produce market committee (APMC) Act. Page 21 of 29

► Single license to be valid across the state ► Single point levy of market fee

Awards: Pakke Tiger Reserve in East Kameng district of Arunachal Pradesh has won the ‘India Biodiversity Award 2016’. The tiger reserve was selected in the conservation of threatened species category for its Hornbill Nest Adoption Programme. Bioengineer Frances Arnold from United States (US) has won the prestigious 2016 Millennium Technology Prize. With this she becomes first female to be awarded with this prestigious biennial award in its 12-year history. South Korean author, Han Kang, has won the 2016 Man Booker International Prize for her novel ‘The Vegetarian’. With this Han becomes the first South Korean to win this prestigious literary prize. The writer and her British translator Deborah Smith will share the 72,000 dollars prize money. Han’s novel ‘The Vegetarian’ tells a story of a wife (Yeong-Hye lead character) who decides to become a vegetarian. Former ISRO Chairman and space scientist Prof Udupi Ramachandra Rao became the first Indian to be given ‘Hall of Fame’ Award by the International Astronautical Federation (IAF). Pakistani women’s rights activist from Swat Valley Tabassum Adnan has won prestigious 2016 Nelson Mandela GraçaMachel Innovation Award. With this Tabassum Adnan becomes the second woman from Pakistan’s Swat Valley to win this international recognition after Nobel laureate Malala Yousafzai. Dogri Poetess and novelist Padma Sachdev (76) has been chosen for the prestigious SaraswatiSamman for the year 2015. She has been chosen for her autobiography ‘ChittChete’ written in Dogri language and published in 2007. Mother Teresa has been posthumously conferred with the United Kingdom’s prestigious Founders Award 2016. Teresa’s only living relative AgiBojazhiu (niece) collected the award on her behalf. British mathematician Andrew Wiles (62) was named as the winner of the prestigious 2016 Abel Prize. He was selected by the Norwegian Academy of Sciences and Letters for solving a centuries old hypothesis (equation), Fermat’s Last Theorem. Veteran film actor and director Manoj Kumar has been selected for the prestigious 47th DadasahebPhalke Award for the year 2015. Hyderabad-based GVK Biosciences (GVK BIO) has been awarded prestigious Global CSR Excellence & Leadership Award. The company was bestowed with this award in the category of Best Environment Friendly Project for its ambitious Go Green, Grow Green Page 22 of 29

plantation drive under its Corporate Social Responsibility (CSR) initiative. Karnataka’s flagship mobile-one governance application has won gold medal at the fourth World Government Summit in Dubai, UAE in the m-governance awards category.

Sarangi maestro Pandit Ram Narayan (88) has been chosen for the prestigious Bharat RatnaPanditBhimsen Joshi Classical Music Award for 2015-2016. Madhya Pradesh has been conferred the Union Government’s prestigious Krishi Karman Award in maximum food grains production category for year 2014-15 for the 4th consecutive year. The Employees’ Provident Fund Organisation (EPFO) has won the National Award on eGovernance 2015-16 for launching the Universal Account Number (UAN). The Employees’ Provident Fund Organisation (EPFO) has been awarded SKOCH Award for Smart Governance. It has been bestowed with this award for its initiatives on UAN Programme and Transformation of Social Security Agenda in India. It is the 5th Award won by EPFO in the last two years for its initiatives for the welfare of various stakeholders. Universal Account Number (UAN) The roadmap for implementing the UAN programme has been prepared by Centre for Development of Advanced Computing (C-DAC). Purpose: Facilitates workers in organized sector to transfer their provident fund deposits while switching jobs anywhere in India easily. The UAN would be one account number which would be allotted to a subscriber for various schemes run by the EPFO for his or her entire service period with different employers. Reserve Bank of India (RBI) Governor RaghuramRajan has been conferred with the Central Banker of the Year Award (Global and Asia Pacific) for year 2016. Eminent Gujarati litterateur Raghuveer Chaudhary has been selected for the 51st Jnanpith award. Mr. Chaudhary is the fourth Gujarati litterateur to bag this prestigious award after Uma Shankar Joshi (1967), Pannalal Patel (1985) and Rajendra Shah (2001). Syrian woman journalist ZainaErhaim has won the prestigious 2015 Reporters without Borders Prize for her defence of press freedom. The United Nations High Commissioner for Refugees (UNHCR) has been chosen for the prestigious 2015 Indira Gandhi Prize for Peace, Disarmament and Development. About United Nations High Commissioner for Refugees UNHCR is a United Nations agency mandated to protect and support refugees. It is a member of the United Nations Development Group. Established: December 14, 1950. Headquarters: Geneva, Switzerland. Initially it was established to help people displaced by World War II. But later it became the principal agency that has helped displaced persons all over world. Mission: Page 23 of 29

Safeguard the rights and well-being of refugees. Seek lasting solutions to the plights of refugees. Awards: It has won two Nobel Peace Prizes, first in 1954 and second in 1981. All India Radio’s (AIR’s) Programme on child labour titled NilkkamIvarkkoppam has won the first prize at the 2015 Asia-Pacific Broadcasting Union (ABU) Prize ceremony. Jamaican author Marlon James has won the prestigious 2015 Man Booker Prize for his novel A Brief History of Seven Killings. With this, he became first Jamaican to win Man Booker Prize. Microeconomist Angus Deaton has won the prestigious 2015 Nobel Memorial Prize in Economic Sciences. Royal Swedish Academy of Sciences has selected him for his analysis of consumption, poverty, and welfare. National Dialogue Quartet (NDQ) in Tunisia has won prestigious 2015 Nobel Peace Prize. Norwegian Nobel Committee has selected NDQ for its decisive contribution in building pluralistic democracy in Tunisia in the wake of the 2011 Jasmine Revolution. About Jasmine Revolution: It was an intensive campaign of civil resistance including a series of street demonstrations against the long authoritarian rule of President Zine El Abidine Ben Ali. Author Svetlana Alexievich of Belarus has been selected for prestigious 2015 Nobel Prize in Literature. The Swedish Academy has selected Svetlana for her polyphonic writings, courage and a monument to suffering. Tomas Lindahl (United Kingdom), Paul Modrich (US) and Aziz Sancar (US) have jointly won 2015 Nobel Prize in Chemistry. Royal Swedish Academy of Sciences has chosen them for their research on mechanistic studies of DNA (deoxyribonucleic acid) repair. Their work has provided fundamental knowledge of functioning of living cell functions and its application for the development of new cancer treatments. TakaakiKajita (Japan) and Arthur B. McDonald (Canada) have jointly won the prestigious 2015 Nobel Prize in Physics. The Royal Swedish Academy of Sciences has selected them for their key contributions to experiments showing that neutrinos change identities. They individally have discovered neutrino oscillations and shown that neutrinos have mass. Three scientists YouyouTu (China), Satoshi Omura (Japan) and William Campbell (Ireland) have won 2015 Nobel Prize for Physiology or Medicine. They have been chosen for their pioneering discoveries which have led to the development of potent new drugs against parasitic diseases such as malaria and elephantiasis. The laureates will receive their prizes on December 10, 2015 at a formal ceremony in Stockholm, Sweden marking the anniversary of the death of prize creator Alfred Nobel.

Page 24 of 29

Bangladesh Prime Minister Sheikh Hasina has been selected for the United Nations Champions of the Earth award. UN Environment Programme (UNEP) has chosen her for this prestigious award in recognition of her country’s initiatives to address climate change. UNEP has noted Bangladesh as one of the most vulnerable to the impacts of climate change. In recent years natural disasters like cyclones, floods and droughts have intensified in the country due to climate change. President Pranab Mukherjee conferred the Gandhi Peace Prize for the year 2014 on Indian Space Research Organization (ISRO). ISRO Chairman A S Kiran Kumar on behalf of the organisation received the prize at a function held at RashtrapatiBhavan in New Delhi. Krishnapatnam Port in Andhra Pradesh has been awarded Golden Peacock environment management award for its achievements and initiatives in the field of environment. Fazle Hasan Abed of Bangladesh has been named as the winner of the 2015 World Food Prize. He is founder and chairman of Bangladesh-based non-governmental organisation (NGO) BRAC (originally known as Bangladesh Rural Advancement Committee) which is world’s largest NGO. Nadia district in West Bengal has won the United Nations Public Service Award 2015 in the category of improving delivery of public services for or eliminating open defecation in the district. The award was presented by the acting Secretary General of the UN LenniMontiel to District Magistrate of Nadia and Sabhapati of Nadia ZillaParishad in Medellin, Colombia. Former Prime Minister Atal Bihari Vajpayee will be conferred with Friends of Bangladesh Liberation War Award by Bangladesh government. He will be bestowed this award for his outstanding support for the Bangladesh’s independence from Pakistan in 1971 when he was a member of Lok Sabha. Hungarian writer Laszlo Krasznahorkai has won the prestigious Man Booker International Prize for 2015. Two Indians, Dr. PramodPatil and Dr Ananda Kumar have been awarded with the prestigious 2015 Whitley Awards for their contribution to wildlife conservation in developing countries. BharatiyaMahila Bank (BMB) has won The Asian Banker Achievement Award 2015. The award was presented to the BMB in the Technology Implementation category of Best Outsourcing Project (New Bank). UshaAnanthasubramanian, Chairman and Managing Director of BMB received the award at a function held in Hong Kong as a part of The Asian Banker Summit 2015. 50th Jnanpith Award was conferred on eminent Marathi litterateur BhalchandraNemade on 25 April 2015. Page 25 of 29

All the Light We Cannot See, a novel based on Second World War by author Anthony Doerr has won the Pulitzer Prize for fiction. While, The New York Times has won two prestigious Pulitzer prizes for coverage of the Ebola outbreak in West Africa. Delhi International Airport Limited (DIAL) has won the prestigious Golden Peacock National Quality Award for the year 2015. DIAL was bestowed this award for their efforts in building a culture of Total Quality across Indira Gandhi International (IGI) Airport. Eminent freedom fighter and educationist Madan Mohan Malviya was conferred with Bharat Ratna (posthumously), highest civilian award of the country. Veteran actor and film producer Shashi Kapoor has been named for the prestigious Dada SahebPhalke Award 2014. He is the 46th film personality to receive this honour. Renowned water conservationist and environment activist Rajendra Singh has been conferred with 2015 Stockholm Water Prize. He was awarded this prize for his innovative water restoration efforts and consistent attempts to improve the water security in villages in India. Senior Congress leader and Former Union Minister Mr. M. VeerappaMoily will receive the SaraswatiSamman 2014 for his Kannada poem ‘Ramayana Mahanveshanam’.

Bhuvan, (lit: Earth), is a software application which allows users to explore a 2D/3D representation of the surface of the Earth. The browser is specifically tailored to view India, offering the highest resolution in this region and providing content in four local languages. A beta versionwas launched on 12 August 2009. Apart from visualization Bhuvan provides timely disaster support services (domestic and international), free satellite data and a products download facility, and rich thematic datasets. Bhuvan is using a crowd sourcing approach to enrich its maps and collect point of interest data. It also acts as a platform for hosting government data (example - Karnataka Forest Department datasets). National Institute of Animal Welfare (NIAW) in Ballabhgarh (Haryana). The decision to establish the Institute was based on recognition of the need to promote awareness and disseminate information about animal welfare amongst the public. National Institute of Wind Energy (NIWE)has been established in Chennai in the year 1998, as an autonomous R&D institution by the Ministryof New and Renewable Energy (MNRE), Government of India. It is a knowledge-based institution of high quality and dedication, offers services and seeks to find complete solutions for the kinds of difficulties and improvements in the entire spectrum of the wind energy sector by carrying out further Page 26 of 29

research. It has a Wind Turbine Test Station (WTTS) at Kayathar with the technical & partial financial support by DANIDA, Govt. of Denmark. {The Danish International Development Agency (DANIDA) is the section of the Danish Ministry of Foreign Affairs dedicated to providing aid and financing pro-development activities in developing countries worldwide.} National Institute of Solar Energy, an autonomous institution of Ministry of New and Renewable (MNRE), is the apex national R&D institution in the field solar energy. The National Institute of Solar Energy is located on Gurgaon-Faridabad road, about 8 km from central Gurgaon. The Government of India has converted 25 year old Solar Energy Centre (SEC) under MNRE to an autonomous institution in September, 2013 to assist the Ministry in implementing the National Solar Mission and to coordinate research, technology, skill development, training, consultancy, incubation and other related works.

Bioremediation Is a waste management technique that involves the use of organisms to remove or neutralize pollutants from a contaminated site.According to the EPA, bioremediation is a “treatment that uses naturally occurring organisms to break down hazardous substances into less toxic or non-toxic substances”. Technologies can be generally classified as in situ or ex situ. Some examples of bioremediation related technologiesare phytoremediation, bioventing, bioleaching, landfarming, bioreactor,compost ing, bioaugmentation, rhizofiltration, and biostimulation.

What are the common air pollutants around?

1. Carbon Monoxide (CO) Fuel combustion from vehicles and engines. Reduces the amount of oxygen reaching the body’s organs and tissues; aggravates heart disease, resulting in chest pain and other symptoms. ► 2. Ground-level Ozone (O3) Secondary pollutant formed by chemical reaction of volatile organic compounds (VOCs) and NOx in the presence of sunlight. Decreases lung function and causes respiratory symptoms, such as coughing and shortness of breath, and also makes asthma and other lung diseases get worse. ► 3. Lead (Pb) Smelters (metal refineries) and other metal industries; combustion of leaded gasoline in piston engine aircraft; waste incinerators (waste burners), and battery manufacturing. Damages the developing nervous system, resulting in IQ loss and impacts on learning, memory, and behaviour in children. Cardiovascular and renal effects in adults and early effects related to anaemia. Page 27 of 29

► 4. Nitrogen Dioxide (NO2) Fuel combustion (electric utilities, big industrial boilers, vehicles) and wood burning. Worsens lung diseases leading to respiratory problems, increased susceptibility to respiratory infection. ► 5. Particulate Matter (PM) This is formed through chemical reactions, fuel combustion (e.g., burning coal, wood, diesel), industrial processes, farming (ploughing, field burning), and unpaved roads or during road constructions. Short-term exposures can worsen heart or lung diseases and cause respiratory problems. Long-term exposures can cause heart or lung disease and sometimes premature deaths. ► 6. Sulfur Dioxide (SO2) SO2 comes from fuel combustion (especially high-sulphur coal); electric utilities and industrial processes as well as natural occurrences like volcanoes. Aggravates asthma and makes breathing difficult. It also contributes to particle formation with associated health effects. What are the effects of air pollution? Acidification: Chemical reactions involving air pollutants can create acidic compounds which can cause harm to vegetation and buildings. Sometimes, when an air pollutant, such as sulphuric acid combines with the water droplets that make up clouds, the water droplets become acidic, forming acid rain. When acid rain falls over an area, it can harm trees and kill animals, fish, and other wildlife. Acid rain destroys the leaves of plants.

When acid rain infiltrates into soils, it changes the chemistry of the soil making it unfit for many living things that depend on the soil as a habitat or for nutrition. Acid rain also changes the chemistry of the lakes and streams that the rainwater flows into, harming fish and other aquatic life. Eutrophication: Rain can carry and deposit the Nitrogen in some pollutants on rivers and soils. This will adversely affect the nutrients in the soil and water bodies. This can result in algae growth in lakes and water bodies, and make conditions for other living organism harmful. Ground-level ozone: Chemical reactions involving air pollutants create a poisonous gas ozone (O3). Gas Ozone can affect people’s health and can damage vegetation types and some animal life too. Particulate matter: Air pollutants can be in the form of particulate matter which can be very harmful to our health. The Page 28 of 29

level of effect usually depends on the length of time of exposure, as well the kind and concentration of chemicals and particles exposed to. Short-term effects include irritation to the eyes, nose and throat, and upper respiratory infections such as bronchitis and pneumonia. Others include headaches, nausea, and allergic reactions. Short-term air pollution can aggravate the medical conditions of individuals with asthma and emphysema. Long-term health effects can include chronic respiratory disease, lung cancer, heart disease, and even damage to the brain, nerves, liver, or kidneys. Continual exposure to air pollution affects the lungs of growing children and may aggravate or complicate medical conditions in the elderly. Air Quality Index In India, as in many other countries, the Index is centred around five chief pollutants – Particulate Matter with a diameter less than 10 micrometres (PM10), Particulate Matter with a diameter of less than 2.5 micrometers (PM2.5), ozone (O3), Nitrogen Dioxide (NO2), and Carbon Monoxide (CO). A monitoring station should be able to give you the concentration of a particular pollutant at that moment in time, and its average over a period of time – for CO and O3, the average is taken over eight hours, while for the other three, it is a 24-hour average. The unit of measurement is microgram (or milligram in the case of CO) per cubic meter.

Page 29 of 29

For

upli ing the rural sector of our country, the Ministry of Rural Development and the Government of India in coordina on with Department of Rural Development and Department of Land Resources have been carrying forward various schemes. These schemes are formulated to benefit the ci zens of rural India who will eventually become the pillars of Indian Economy in the long run. Some important schemes for Rural Development launched by Government of India are –

Pradhan Mantri Gram Sadak Yojana Launched on 25 December 2000 by then Prime Minister Atal Bihari Vajpayee, the scheme aims at enhancing rural road connec vity. This scheme provides connec vity to the habita ons with less or no connec vity at all and helps in poverty reduc on by promo ng access to economic and social services. This ensures sustainable poverty reduc on in the long run as people get an opportunity to get connected with the rest of the world. The scheme has been benefi ng several villagers and is helping them lead be er lives. Nearly 82% of roads have been built ll December 2017 which have successfully connected several rural areas to ci es. Remaining 47,000 habita ons will also get connected by allweather roads by March 2019. Earlier, the scheme was funded only by the central government but a er the recommenda on of 14th Finance Commission report the expense is shared by both state and central government.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana Deen Dayal Upadhyaya Grameen Kaushalya Yojana, a part of Na onal Livelihood Mission, has the objec ves of catering to the career aspira ons of the rural youth and adding diversity to the income of rural families. Launched on 25th September 2014, the scheme’s prime focus is on the rural youth of poor families aged between 15 and 35. An amount of Rs 1500 crores has been provided for the scheme which will help in enhancing employability. The yojana is present in 21 States and Union Territories across 568 districts and 6215 blocks changing the lives of youth. Around 690 projects are being implemented by 300 partners. As per the government reports, over 2.7 lakh candidates have been trained ll now and nearly 1.34 lakh candidates have been placed in jobs.

Swarnjayan Gram Swarozgar Yojana (SGSY)/ Na onal Rural Livelihood Mission Swarnjayan Gram Swarozgar Yojana which is redesigned as Na onal Rural Livelihood Mission was launched in 2011. Also known as Ajeevika, this scheme aims at empowering women self-help model across the country. Under this scheme, the government provides a loan of 3 lakh rupees at an interest rate of 7% which can be reduced to 4% at the me of repayment. The scheme was aided by World Bank and aimed at crea ng efficient and also effec ve ins tu onal pla orms for poor people. It also helped in increasing the household income by improving access to financial services. NRLM also helps in harnessing the capabili es of the poor so that they can par cipate in the growth of the economy of the country.

Prime Minister Rural Development Fellows Scheme The Prime Minister Rural Development Fellowship (PMRDF) is a scheme ini ated by the Ministry of Rural Development, implemented in collabora on with State Governments. It has dual goals of providing short-term support to the district administra on in the underdeveloped and remote areas of the country and develop competent and commi ed leaders and facilitators who can serve as a resource for a longterm.

Na onal Rural Employment Guarantee Act (NREGA) As per the Na onal Rural Employment Guarantee Act (NREGA) of 2005, 100 days of employment is guaranteed to any rural household adult who is willing to do unskilled manual work in a financial year. The Act addresses the working people and their fundamental right to live life with dignity. If a person does not get a job within 15 days, he is eligible for ge ng unemployment allowance. Na onal Rural Employment Guarantee Act (NREGA) also highlights the importance of basic right to work. Amendments have been introduced to this act to minimise corrup on in the scheme.

Sampoorna Grameen Rozgar Yojana (SGRY) The Sampoorna Grameen Rozgar Yojana (SGRY) was launched in 2001 to provide employment to the poor.

It also aimed at providing food to people in areas who live below the poverty line and improving their nutri onal levels. Other objec ves of this Yojana were to provide social and economic assets to the people living in rural areas. The scheme did not include the employment of contractors or middlemen.

Sarv Siksha Abhiyan Pioneered by former Prime Minister Atal Bihari Bajpayee, the Sarv Siksha Abhiyan was launched in 2000. It is an a empt to provide an opportunity to all children between 6 and 14 years of age to get free educa on which is also a basic fundamental right. The state and the central government share the expenses of this project.

Sansad Adarsh Gram Yojana (SAGY) Sansad Adarsh Gram Yojana (SAGY) is a rural development project launched in 2014 by the Government of India in which each Member of Parliament will take the responsibility of three villages and look a er the personal, human, social, environmental and economic development of the villages. This would substan ally improve the standard of living as well as the quality of life in the villages. No fundings have been provided to this project as fundings can be raised through exis ng schemes.

Na onal Social Assistance Programme Na onal Social Assistance Programme signifies the fulfilment of Direc ve Principles in Ar cle 41 and 42 of the cons tu on which states that it is the duty of the state to provide assistance to the ci zens in terms of sickness, unemployment, old age in limits of the economic capabili es. It is basically a centrally sponsored scheme of Government of India which provides financial help to widows, elderly, people with disability in form of pensions. The scheme was launched on August 15 in 1995.

Pradhan Mantri Awaas Yojana (Gramin)/ Indira Awas Yojana Indira Awas Yojana revamped as Pradhan Mantri Gramin Awaas Yojana in 2016 is a welfare programme created by the Indian Government to provide housing to rural poor people in India. The goal of this scheme is to provide home to all ci zens ll 2022. The cost of construc ng the houses will be shared by the centre and the state. The scheme has been implemented in rural areas throughout India, except in Delhi and Chandigarh. Houses developed under this scheme will have basic ameni es such as toilet, electricity connec on, drinking water connec on, LPG connec on etc. The alloted houses will be jointly under the name of husband and wife.

Antyodaya Anna Yojana (AAY)

Launched by the former Prime Minister Atal Bihari Vajpayee in 2000, the Antyodaya Anna Yojana aimed at providing food grains to around 2 crore people at subsidised rates. As per the scheme Below Poverty Line (BPL) families were provided 35 kgs of food grains. Rice was provided at the rate of Rs 3/kg and wheat at the rate of Rs 2/kg. The scheme was first launched in Rajasthan but has now been implemented in all Indian states.

Provision of Urban Ameni es In Rural Areas (PURA) PURA is a strategy for Rural Development in India which was proposed by former President APJ Abdul Kalam in his book Target 3 billion. PURA proposes that urban infrastructure and services should be provided in rural areas to create opportuni es outside the ci es. This will also prevent the migra on of youth from the rural areas to urban areas. The Central Government has been running PURA programs in various states since its launch in 2004.

CHAPTER–III

RURAL DEVELOPMENT PROGRAMMES IN ANDHRA PRADESH Introduction Andhra Pradesh is fifth populous and fourth largest state in India, spreading over an area of 2,76,75,459 Kms sharing common boundaries with Madhya Pradesh and Orissa to the North, the Bay of Bengal to the East, Tamil Nadu and Karnataka to the South and Maharashtra to the West. The state also forms a major link between the north and south India1. Andhra Pradesh being one of the most developing states has been making rapid strides in growth and welfare programmes since its formation (1st November, 1996). Rural development has become most important agenda of all successive governments in Andhra Pradesh to eradicate poverty, illiteracy and growing unemployment2. The concept of Rural Development has undergone many changes depending upon the requirement of the people based on the socio, economic and political guiding principles. Geographically speaking the state comprises of eight districts of Coastal Andhra Pradesh, five districts of Rayalaseema region and ten districts of Telangana region covering a total of 23 districts. The rich rivers in the state for irrigation are Krishna, Godavari,

Andhra Pradesh, “Making Rapid Strides Growth and Welfare”, The Indian Express, Ahmedabad Edition, 30th December, 2000, pp.1-2. 2 “Rural Development Policy in Andhra Pradesh – A Profile of Rural Development Programmes”, Published by the Ministry of Rural Development, Government of Andhra Pradesh, 2006, pp.33-42. 1

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Tungabhadra, Bheem, Manjeera, Penna and other perennial small rivers are the greatest asset for agriculture3. Schemes of Rural Development Rural development and welfare programmes in Andhra Pradesh are shaped by many complex interacting environmental forces. In view of enormity and urgency of rural problems, the state government has initiated developmental programmes which led to the creation of plethora of new institutions for balanced upward change. Andhra Pradesh government being committed to the implementation of Rural Development Programmes believed in development through Five Year Planning. The growth and welfare schemes for sustainable development of the rural poor are mentioned below: 1. Support to agriculture farmers, viz.: Supply of improved seeds, fertilizers, pesticides, agro implements, providing technical know-how, minimum support price for the farmers, free power supply to the agriculture, marketing facility, etc. 2. Irrigation facility: Sufficient water supply through irrigation projects, construction of dams – canals, CI wells, bore wells, drip irrigation, lift irrigation facility, etc. 3. Improving Primary Education: Improving primary education by introducing new schools in backward villages, starting social welfare hostels separately for boys and girls, improving hostel facilities, Dwarakanath, H.D., “Rural Development Policy and Programme Implementation – An Evaluation”, Social Action – A Social Action Trust Publication, Oct-Dec., 1995, Vol.45, No.4, New Delhi, pp.27-32. 3

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introduction of Ashram schools, Navodaya schools in backward districts, improving the quality of education by recruiting qualified, experienced teachers, encouraging Sarva Siksha Abhiyan scheme for school dropouts. 4. SC & ST Welfare Programmes: Free distribution of surplus land to the SC & ST farmers for sustainable development. Distributing free house site pattas, farm loan through SC & ST Corporations, Employment opportunities to generate economic activity to the rural poor. The state government has allocated 16.2% of its annual budget for the development of SC, ST students in the education field to complete higher education. 5. Women and Child Welfare Programmes: Introduction of Anganwadi School, supply of nutritious food to the children and pregnant women, establishing Integrated Child Development Agency, Mahila Mandals, Bridge Schools for girl student dropouts. 6. Empowerment of Women Groups: Empowerment of Rural Women, formation of DWCRA, Self-Help Groups, Vocational training programmes for rural women, Income generating activity, Training for rural women, Lending of Bank loans to DWCRA Groups. 7. Rural Youth Welfare: Providing library facilities, formation of youth clubs in villages to provide skill oriented vocational training programme. Computer training facility – encouraging rural sport meet programme, selfemployment income generating schemes for rural youth, TRYSEM, CMRY, Gramodaya, sufficient financial assistance to implement these programmes.

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8. MGNREGP: Under this particular scheme wage earning scheme to the unskilled village labourers, 100 to 120 days employment programme to the family couple through formation of roads, agriculture, watershed programmes and rural housing scheme. 9. Rajiv Gruhakalpa Scheme: Construction of Rajiv Rural Housing Scheme for the weaker and backward class community on a large scale, involving rural women in housing construction, Bank loan facility for housing programme. 10. Watershed Development: Drought Relief Development Scheme in 12 districts of Andhra Pradesh under water shed scheme is being introduced on the recommendation made by CH. Hanmanth Rao Committee4. Rural Development under Five Year Plans The Andhra Pradesh government is committed to formulate various priorities on rural development during successive five year plans. The prominent being the community development programme for the upliftment of rural poor. The central and state governments have launched many special schemes and anti poverty programmes to achieve qualitative improvement of the rural poor. Ever since the formation of Andhra Pradesh (1956), the government has introduced several Rural Development Programmes to help the rural poor through

4

Dwarakanath, H.D., 1995, Op.Cit, pp.27-32.

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welfare programmes. The priority schemes of rural development under five year plans are enlisted below5:

Plan & Period I Five Year Plan (1941-56)

Table-3.1 Five Plan Periods Priority Schemes of Rural Development

Community Development and National Extension Programme to achieve Rural Development Distribution of Land to the Tiller Agriculture Development Programme II Five Year Plan Khadi Village Industries, Land Reforms, Panchayati (1956-61) Raj, Decentralized Planning, Growing importance to Gram Panchayats and Block Khadi Village Industries, Land Reforms Panchayat Raj, Decentralized Planning Growing importance to Gram Panchayats and Blocks III Five Year Plan Applied Nutrition Programme (191-66) Intensive Agriculture Area Development Programme Green Revolution in the field of Agriculture High Yielding Variety of Agri Development Farmers Training and Education Programme Rural Works Programme Tribal Development IV Five Year Hill Area Development Programme Plan (1969-74) Small Farmers Development Agency Intensive Rural Employment Programme Minimum Needs Programmes Command Area Development V Five Year Plan Hill Area Development Programme (1974-79) Food for Work Programme Rural Housing Programme Rural Youth Self Employment Training Programme Integrated Rural Development Programme VI Five Year National Rural Employment Generation Programme Plan (1980-85) 20 point Economic Programme Development of Women and Children in Rural Areas Tribal / Adivas School Development and Welfare Programme VII Five Year Indira Awas Yojana Plan (1985-90 Rural Landless Employment Programme Jawahar Rojgar Yojana Million Well Scheme Programme Technology Development in Rural Areas Vocational Computer Training Programme to the Rural Youth Skill Oriented Training for School going Children Transformation of Rural Technology through Mass 5

Year of introduction 1952 1955 1957

1957 1959 1960 1962 1964 1962 1966 1966 1967 1968 1970 1971 1972 1974 1974 1975 1975 1976 1978 1979 1980 1980 1983 1984 1985 1985 1989 1989 1988-89 1986 1987 1988

“Rural Development and Five Year Plans”, Kurukshetra, New Delhi, April, 1997.

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VIII Five Year Plan (1992-97)

IX Five Year Plan (1997-2002)

X Five Year Plan (2002-2007)

XI Five Year Plan (2007-2012)

Media New Liberalization and Globalization Policy under PVN Rao Sustainability of Rural Infrastructure with Newly formed Economy Sustainability of Rural Infrastructure with Newly formed Economy Encouraging Rural Entrepreneurs under Privatization Policy Developing Minor Irrigation and Social Forestry in the State Janma Bhoomi – Participation of Rural People in Rural Development Programme Prime Minister Gram Sadak Yojana Prajala Vaddaku Palana (Administration at the Door Step of Rural Poor – Janma Bhoomi Programme). Empowerment of Rural Women and Income Generating Activities Micro Finance – Lending of Bank Loan on Easy Installments to take up economic activity Rural Housing scheme for the Weaker Sections viz., SC, ST & BCs Old Age Pensions to the Village Elderly Persons not able to earn livelihood – Widow Pensions – Pensions to the Disabled Common Minimum Needs Programme Improving Public Distribution System Financial Assistance to Handloom Weavers Society Distribution of Agriculture Tools to the Small Farmers Remunerative Price to the agriculture Products Free Power Supply to Agriculture Pump Sets during YSR Regime Indira Kranthi Pathakam National Rural Employment Guarantee Scheme Old Age Pensions to the Rural Poor Abhaya Hastham Scheme Pension Insurance Scheme for Rural Women Integrated Land Development Programme Society for Elimination of Rural Poverty Purchase of Land and Land Access to the Landless Agriculture Labourers Andhra Pradesh Smart Card Project Rajiv Arogya Sri Health Scheme for Rural Poor

1992 1992 1992 1993 1993 1995 1996 1995 1996 1991-2000 1991 1996

2003 2004 2004 2005 2006 2002 2004 2007 2008 2007 2008 2008 2007 2004 2006 2004

Source: Rural Development Action Plan, Ministry of Rural Development, Government of Andhra Pradesh, 2008.

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Rural Development – Budget Estimate and Expenditure in Andhra Pradesh – 2006 to 2012. Rural Development Programmes and its implementation is mainly depends on available human resources. Every year the state government is introducing several schemes on priority basis to achieve rural development. Every year budget estimates on rural development is increasing depending on the requirements of the rural population. Innovative welfare programmes are introduced by the state government to meet the immediate requirements of rural poor. The table given below indicates the budget estimates incurred on Rural Development Programmes in Andhra Pradesh from 2006-04 to 2011-126. Table-3.2 Total Expenditure on Rural Development Programmes Period from 2006-07 to 2011-12 Year

Expenditure on Rural Development

Total Annual Budget

Percentage of Expenditure on Rural Development

2006-07

1456.67

18208.98

8.00

2007-08

1448.09

27170.79

6.80

2008-09

2731.11

30617.68

8.90

2009-10

2887.90

33337.98

8.60

2010-11

3861.84

36727.90

11.60

2011-12

3880.80

36940.20

11.80

Source: Rural Development Action Plan, Ministry of Rural Development, Government of Andhra Pradesh, 2012. “Rural Development – Action Plan”, Ministry of Rural Development, Government of Andhra Pradesh, 2010. 6

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The table given above (table-3.2) reveals that the budget for Rural Development has substantially increased from Rs. 1456.67crores in 2006-07 to Rs. 3880.80 crores in 2010-12 budgets. This indicates that Rural Development Programme has been identified as top priority of the Government. In the total annual budget a major portion is diverted towards Rural Development Programmes. Land Purchase and Land Access for the Poor Designed with the aim of enabling and supporting the poor in getting enhanced access to land, Indira Kranthi Pathakam’s land component has come up a long way expanding from initial land purchase activities to land access activities positioning sensitive support mechanism for the poor. Along with empowering 5303 women to purchase good quality irrigated lands, land issues pertaining to 184249 poor covering 182670.95 acres have got settled so far in convergence with the Revenue Department. Over a period of time, land reforms have taken a back seat and still remain an unfinished agenda. Suffering from other traits of poverty like lack of voice, bargaining power, access to knowledge etc., the poor are also suffering from lack of access to secured title or possession over land. Recognizing land as a critical resource for the poor during the formulation of Andhra Pradesh Rural Poverty Reduction Project, the land component in Indira Kranthi Patham was sanctioned with an outlay of Rs. 52.6 crore. The land component of Indira Kranthi Patham has been working in two directions. One is Land Purchase i.e. securing the poor and enabling access to productive lands through facilitating purchase of good quality irrigated lands. The other is land access by facilitating

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the poor in convergence with the Revenue Department, to have control over their land in terms of having secured title, handling their lands locked in courts / disputes, awareness as to the measures taken by the Government to protect the interests of the poor manifested in the form of pro-poor enactments etc. The objective of land purchase is to see that the poor become proud owners of productive lands. Hence, the focus is on facilitating the land less poor to purchase productive irrigated lands alone. Salient features  Purchase process totally community driven.  The VOs play a leading role in identifying the lands, negotiating rates, etc.  Lands are registered in the names of women only.  Stamp and Registration fee and transfer duty have been exempted by the Government for the lands purchased. Coverage of the Scheme The land purchase activity has been taken up in 190 villages of 128 mandals in the state where demand had come from the poor women for purchase of lands. Between 2004 and 2009 about 4539.24 acres of land have been purchased by 53403 landless poor women with an investment of Rs. 2937.45 lakhs in these 190 villages covering 90% of the beneficiaries belong to vulnerable sections like SCs and STs.

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Table.3.3 Details of Purchase of Land and Expenditure Year No. of Acres Purchased Expenditure in Crores in Hectares 2006-07

0

0

2007-08

639.11

219.13

2008-09

1924.59

1181.31

2009-10

1335.12

947.37

2010-11

506.440

441.08

2011-12

134.02

148.56

Total

4539.24

2937.45

Source: “Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012.

SC 2799

ST 1979

Table-3.4 Caste wise Beneficiaries BC Others 393 132.00

Total 53403.00

Best Practices The beneficiaries are the poorest of the poor landless belonging to vulnerable sections often working as labourers on the some lands. Only good quality productive lands under assured sources of surface irrigation are purchased. Purchasers could derive immediate incomes. Impact The purchasers derive immediate incomes, average net income rangers from Rs. 7000-14000 per cropping season. Income increased in all the sample households by 30% to 75% after the intervention.

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After the intervention, 76% of them are food secure. It is lesser in other categories. Due to distribution of land to the poor seasonal migration has come down and is least among IKP land beneficiaries. As a master of fact there is a positive shift from child labour to school education and there is an increased ability to manage expenditure on health7. Land Access – Enabling Access to Justice for the Poor Land is the principal source of livelihood for the tribals. This principal source of livelihood is under threat from non-tribals. To prohibit transfer of lands in favour of non-tribals, Andhra Pradesh Scheduled Areas Land Transfer Regulation Act was enacted in the year 1959 and subsequently amended in 1970, 1971 and 1978. The tribals are not able to access justice due to factors like lack of legal awareness, absence of legal supports, alien adjudicatory system, adversarial adjudicatory system adopted from the British, administrative machinery being handicapped, voice of tribals not being heard and lack of access to government records. Accordingly, the land access activity was scaled up in two phases in October-November, 2006 and 2007 to cover 400 plus mandals in the state. The government has issued guidelines for putting in place this support mechanism vide GO Ms. No. 312 and 313, dated 07-07-2006. In the meantime, the Mandal Samakhyas and Zilla Samakhya have not only hired the services of people with

“Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012, p.9. 7

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legal and revenue background but also are training their own community members in land matters so that they can themselves handle their land problems. It is multipronged approach where the Samakhyas are also putting in place support structures like land centres where required information and records are made available, a panel of lawyers to help them fight out their court cases, a group of youth from the community trained in survey etc. to handle the issue from all the angles. Table-3.5 Details of Purchase of Land and Expenditure No. of Acres Purchased Expenditure in Crores Year 2005-06

505.09

70.57

2006-07

1924.59

1181.31

2007-08

1335.12

947.37

2008-09

506.40

441.08

2009-10

134.02

148.56

2010-11

132.00

138.12

2011-12

130.20

13013

Total

4667.42

15940.01

Source: “Land Purchase and Land Access for the Rural Poor”, Society for Elimination of Rural Poverty, Department of Rural Development, Government of Andhra Pradesh, Hyderabad, 2012.

SC 2662

Table-3.6 No.of Caste wise Beneficiaries (All Women) ST BC Others 1947 386 132

Total 5127

Linking banks with SHGs: The bank linkage scheme was initiated in Andhra Pradesh in 1992-93 with the linkage of 8 SHGs with SBI, Vysya Bank

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and Sri Anantha Grameena Bank. Due to constant efforts by the government, the program has gathered momentum only in 1997. All nationalized banks, RRBs and district Co-operative banks were involved in the programme. In Andhra Pradesh, 7 models of delivering credit to rural poor through SHG system have been designed. The rate of interest is decided by the banks/financial institutions under Bank Linkage Programme within the scope of RBI directives. The nationalized banks, regional rural banks and cooperative banks are coming forward to advance loans to SHGs with lower rate of interest8. The government of Andhra Pradesh is committed to social and economic empowerment of women by adopting micro credit as a tool and had taken the SHG Bank Linkage Program as a mass movement since 1998-99 onwards to achieve this goal. Various training and capacity building programs have been conducted on production, packaging, marketing, micro-credit and utilization of loans etc. In turn, women SHGs have availed loans from banks and other financial institutions and improved their economic status. During the year 2008-09, Rs. 11037 crores has been targeted as loan mobilization under SHG Bank Linkage programme and an amount of Rs. 15940.01crores has been mobilized 20129. Outstanding Achievements In Andhra Pradesh more than 52% SHGs (DWCRA Groups) were financed by banks under SHG Linkage. This number is more than the all India figure excluding that of Andhra Pradesh. About 310488 SHGs were provided repeat Dwarakanath, H.D., “Functioning of Self-Help Groups and Income Generating Activities in Andhra Pradesh”, Kurukshetra, July, 2006, New Delhi, p.14. 9 Dinesh Narayanan and Udit Misra, “An Agenda for India – A Review of NREGA” – Forbes, India, Mumbai, March, 2010, p.53. 8

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finance by banks during 2008-09 which comes to 75% of total SHGs in the state of Andhra Pradesh. As per the reports of the bankers, the recovery of loans is around 95% against 87% when compared with other states. The SHGs have taken up various income generating activities by availing themselves of the facility under SHG – Bank Linkage programme and increased their production to the extent that it supplies to the entire country. Recently the women SHGs of Nellore and Chittoor districts have got orders for their products from other countries such as Srilanka, Malaysia, etc. The SHG women have actively participated in fairs, melas or exhibitions organized at state, national and international level and are able to market their products though internet. Well known companies viz., Hindustan Lever Limited, Food World and Apna Bazaar have come forward to tie up with the SHGs and market their products. The issue of extending loans to SHGs under SHG Bank – Linkage programme since 1998-99 created a path of their economic empowerment. The income generating activities taken up by the SHGs and access to the banks and financial institutions attracted the attention of not only other states but at international level also. Many dignitaries from other states and other countries visited Andhra Pradesh and appreciated the SHG movement and implementation of Bank Linkage Programme in Andhra Pradesh. The other state governments are also taking the practice as a model and sending teams to study the implementation of the programme with an aim to implement in the same way in their states.

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National Rural Employment Guarantee Scheme (NREGS) National Rural Employment Guarantee Scheme gives legal guarantee of providing at least 100 days of wage employment to rural household whose adult members are willing to do unskilled manual labour. The scheme is being implemented in all the districts of the state. 1. Coverage of NREGS in different districts in Andhra Pradesh Table-3.7 Phase wise coverage of NREGA in Andhra Pradesh Phase-I Districts Phase-II Districts Phase-III Districts (w.e.f. 02-02-2006 (w.e.f. 01-04-2007 (w.e.f. 01-04-2008 1 Vizianagarm 1 East Godavari 1 West Godavari 2 Chittoor 2 Guntur 2 Krishna 3 Cudapah 3 Kurnool 3 Vishakhapatnam 4 Ananthapur 4 S.P.S Nellore 5 Mahabubnagar 5 Prakasham 6 Medak 6 Srikakulam 7 Ranga Reddy 8 Nizamabad 9 Warangal 10 Adilabad 11 Karimnagar 12 Khammam 13 Nalgonda

2. The programme has been grounded in Andhra Pradesh on a strong footing with the following non-negotiable a. Contractors and labour displacing machinery shall not be engaged. b. Every registered rural household shall be provided not less than 100 days of wage employment in a financial year. c. Payment of wages shall be made at least once in fortnight Equal wages shall be paid to men and women. Works approved by the Gram Panchayat (identified in the Gram Sabha) at village level, the Mandal

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Parishad at Mandal Level and the Zilla Parishad at District Level only shall be taken up. 3. Social Audit Andhra Pradesh is the only state which has established a fully fledged Social Audit Unit at the state level with exclusive staff. The Unit works independently and submits its report to government. So far social audit has been completed in 16548 Gram Panchayats, covering 786 mandals in 19 districts in the 1st round and 188 mandals covered in 2nd round. This is an effective tool to check corruption and to enhance the accountability to people. So far more than 2001 functionaries have been removed from services or disciplinary actions have been initiated. 4. Rural Standard Schedule of Rates Rural Standard Schedule of Rates (RSSR) has been prepared for conducting work time motion studies. This is a first of its kind initiative in rural development which ensures earning of minimum wage by workers. About 20% extra wages are being allowed in summer season keeping in view the increased fatigue levels of their labour due to high temperature and 30% allowance is also paid to disabled group throughout the year. The additional allowances increased to compensate decreased output due to disability. To avoid middlemen and to make the payments directly to the labourers, wage payments are being made through individual and Post Office Accounts. So far 123 crore individual accounts are opened.

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5. Communication 14 films followed by 20 manuals / hand books on training are produced in Telugu on NREGS for providing training to various functionaries and stakeholders. 6. Major initiatives towards livelihood security under NREGS in Andhra Pradesh is listed below: a. Indiramma Cheruvulu – Comprehensive restoration of Minor Irrigation tanks. b. 15080 tanks are taken up with an estimated cost of Rs. 1778 crores. Out of which 12667 tanks are in progress. So far Rs. 950 crores has been spent. About 3003 tanks are fully restored and stabilizing 5.13 lakh acres. c. Horticulture is taken upon the lands of the poor with 100% subsidy on 2.13 lakh acres at an estimated cost of 678 crores. Ongoing SHM & APMIP projects are converged in this initiative10. d. Land Development. An extent of 4 lakh acres of land lying fallow belonging to SC/ST/BPL families have been developed. Land leveling, silt application, clearance of bushes, deep ploughing, etc are some of the activities taken up under land development scheme11.

“An over view of Andhra Pradesh Smart Card Project”, A Report by the Ministry of Rural Development, Government of Andhra Pradesh, Hyderabad, 2006. 11 “Progress of NREGS in Andhra Pradesh”, Ministry of Rural Development, Government Andhra Pradesh, Hyderabad, 2009. 10

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7.

Asset Creation Table-3.8 Land Development Programme under NREGP in Andhra Pradesh

Sl.No 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Work Minor Irrigation Tanks in progress Land Development Earthen bunding Silt application Feeder channel Horticulture Mini Percolation tanks Percolation tanks Farm pounds Pebble & Stone bunding Roads Restoration and deepening of wells Desilting of canals Diversion drains Filling water logged areas Bio diesel

Extent/Nos 15080 Nos 403333 Acres 687444 Acres 253600 Acres 76956 Kms 315237 Acres 56160 Nos 1397 Nos 49261 Nos 203756 Acres 2835 Kms 20000 Nos 45667 KMs 27717 KMs 54000 Acres 1000000 Acres

Value (Cr.) 9.5 605 310 114 346 253 112 11 90 93 131 14 181 274 54 50

Source: Programme Report of NREGP under Land Development Programme in Andhra Pradesh, 2008-09.

8. Overview of NREGS in Andhra Pradesh is given below Table-3.9 Overview of NREGS in Andhra Pradesh Total Job Cards issued Total No.of Works sanctioned Total value of works administratively sanctioned (in Crores) No.of works completed Total expenditure (in Crores) No.of households provided wage employment Total individual postal accounts (in Crores) Total person days generated (in Crores) Total No.of mandals social audit completed 2nd Round Mandals Total No.of Grampanchayats social audit completed Total No.of Minor irrigation tanks (Indiramma Cheruvulu) taken up Total estimated amount of MI Tanks (in Crores) Total No.of Indiramma Cheruvulu completed Total No.of Indiramma Cheruvulu In 2008-09 No. of households provided wage employment No.of individual wage employment provided (in Lakhs) Men Women SCs STs BCs Others Total person days generated (in Crores) Total No.of days employment provided per household Average wage rate per day per person

11314057 1855213 17281.98 524306 4736.05 7224905 1.21 47 786 188 16548 15080 1778 3005 1310 5556009 96.55 47 53 27 13.4 48 12 20.47 36.84 82.33

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Comprehensive Land Development Project (CLDP) Land has always been a symbol of dignity and confidence. This is particularly true for poor farmers. To promote an equitable development process, Government of Andhra Pradesh had assigned lands to large number of families belonging to weaker sections. The government has prohibited alienation of the assigned land by enacting “Prohibition of Alienation of Assigned Lands Act, 1977”. Unless these lands are developed and made productive, they are not of much use for the livelihoods of the poor. Though several initiatives were taken up in this direction by the government over the years, the success seems to be limited. Some of the reasons for this are low investments on agriculture land development and weak institutional arrangements. Several experiences from voluntary organizations indicate that livelihoods of poor families could be strengthened significantly by developing arrangements; technology and comprehensive financial support are found to be the key elements of success. Experiences from large scale government supported projects also indicate that it is important to target poor families and work with them to develop their asset base. Ensuring food security by adopting sustainable dry land agricultural practices is the central theme in many of the above experiences. With this background, government of Andhra Pradesh has conceptualized the Comprehensive Land Development Project (CLDP) named as “Indira Prabha”12.

Comprehensive Land Development Project in Andhra Pradesh –A Progress Report – Department of Land Revenue, Government of Andhra Pradesh, Hyderabad, 2006. 12

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Objectives The main objectives of Comprehensive Land Development Projects are to: a. Enhance and diversify livelihood options of the poor centred on comprehensive development of compact blocks of assigned lands and the lands owned by the poor in tribal regions of the state. b. Enhance the food, fodder and fuel security of the poor families by improving the productivity of compact blocks of assigned lands and the lands owned by the poor in tribal regions of the state. Department of Rural Development is implementing Comprehensive Land Development Project (Indira Prabha) under RIDF-IX & X with a financial outlay of Rs. 599 crores to develop 5.3 lakh acres of assigned land of poor SC, ST & BC communities. So far, an amount of Rs. 388.52 crores have been released under both the projects and an expenditure of Rs. 329.59 crores were incurred till date13. Table-3.10 Details of Land Development Project. S.No. Item Total project outlay 1 No.of blocks 2 3 4 5 6 7 8

sanctioned No.of blocks grounded Percentage of blocks grounded Areas of sanctioned blocks Area developed Releases Expenditure

RIDF200.32 Cr. 3904

RIDF-X 248.60 Cr. 4273

RIDF-XIII Total 150.26 Cr. 599 Cr. 2766 10943

3904

4243

1472

9604

99%

99%

53%

88%

185375 ac.

198490 ac

144956 ac.

528821 ac.

171056

173227

-

156.85 Cr.

154.25 Cr.

18.49 Cr.

344283 ac. 388.52 Cr. 329.39 Cr.

Sources: Department of Rural Development under Comprehensive Land Development Project i.e. Indira Prabha, Government of Andhra Pradesh, Hyderabad, 2005-2006.

13

Poverty Eradication Programme in Andhra Pradesh – A Report, 2002-09.

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Poverty Eradication Programme: Andhra Pradesh Rural Poverty Reduction Project (APRPRP-2002 to 2009) Andhra Pradesh Rural Poverty Reduction Project (APRPRP) was established with the objective of creating self-managed grass roots institution of poor and poorest of poor rural women in the state and to improve their opportunities to meet socio-economic needs. As such, the project is committed to improve livelihoods and quality of all the rural poor families in the state forming part of its target groups i.e. Self-Help Groups formed at grass-roots level. The project objectives are consistent with the World Bank’s Country Assistance Strategy (CAS) objectives and its program priorities and principles. CASs built around the Government of India IX Five Year Plan where the objective is to “Strengthen the enabling environment for development and sustainable growth and support critical interventions of special benefits to the poor and disadvantaged”. Government of Andhra Pradesh has approached the World Bank to provide financial assistance for eradicating poverty. The World Bank has approved to finance 114 million XDRs in this endeavour. Component wise allocation of loan funds (IDA share and Government and Andhra Pradesh share) are us under.

S.No. 1 2 3 4 5 6

Table-3.11 State showing component wise allocation of APRPRP for the project period (Rs. In Crores) Component Original loan Additional loan Institutional and Human Capital building 174.13 191.6 Community Investment Fund 512.93 54.9 Supporting Pilot Program 36.77 Support People with Disabilities 26% Project Management 95.39 82.8 Total Project Cost 844.82 329.3

Source: Andhra Pradesh Rural Poverty Reduction Project Report-2002-09.

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Jobs Mission for the Rural Youth The Jobs Mission: The jobs mission was set up to address the needs of next generation of large SHG networks created and nurtured by IKP Employment Generation and Marketing Mission (EGMM), Department of Rural Development, Government of Andhra Pradesh which works in a focused manner to provide employment / employability for the rural youth. The Executive Committee of the Mission consists of Hon’ble Minister, Rural Development, and Senior Government Officers as ex-officio member apart from the members of the private sector. EGMM is driven by a private sector cell, which evolves strategy with an eye on the market. The implementation of program is done with the large government machinery headed by Collectors, Project Directors, District Rural Development Agency (DRDA) and Project Officers, Integrated Tribal Development Agency (ITDAs in all 22 districts. Vision: Sustained elimination of poverty of underprivileged Rural Youth, with a focus on remote areas. Mission: Employment/employability enhancement of Below Poverty Line (BPL) Rural Youth through market driven training. Objective: Articulated by the community, “one job for every poor family”. Achievements All trainings are free of cost to benefit the rural unemployment youth, as an initiative of the government. Based on the impact of the work, the budget has

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increased from Rs. 10 crores in 2005-06 to Rs. 100 crores in 2007-08. The budget comes from the State Government Revenue and Interior Areas Development (RIAD) budget and the Government of India SGSY funds through the DRDAs. In this connection, 191 training centres have been set up in sectors ranging from services, construction to textiles, with a focus on tribal and remote areas. About 82000 youth have been trained in the last two and half years and 1000 youth are currently in the classrooms. 80% of the youth trained have been linked to entry level private sector jobs. Annual salaries are ranging from Rs. 45,000 upwards in metros and Rs. 24,000 upwards in semi urban areas. Jobs for Rural Youth Employment Generation and Marketing Mission (EGMM) was set up to address

the

needs

of

the

next

generation

and

aims

at

to

create

employment/employability for the rural/tribal-underprivileged youth. It works in a public private partnership mode to identify, train and provide placement to youth in entry level corporate jobs in hospitality, retail, sales, tourism, banking, rural BPOs, manufacturing textiles and construction sectors. Total number of jobs created up to 2007-08 are 1,12,435. Placements shown upto end of February, 2009 are 61,156. This programme has become successful in most of the urban areas14. Health and Nutrition The major goal of the health and nutrition strategy under the APRPRP is to operate in convergent mode with the line agencies by looking at gaps in the Jobs Mission for the Rural Youth – A Progress Report of Employment Generation for Rural Youth, 2009. 14

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existing public health and nutrition services that are provided by the line departments. It is being implemented in 63 mandals including 8 Giriparagathi mandals covering 2500 village organizations of the state15. The extensive health and nutrition strategies being adopted across 63 mandals include fixed schedule for regular capacity building of stakeholders at mandal and district level, institutionalization of the fixed Nutrition and Health Days (NHDs) in convergence with line departments and regular health savings as safety nets for health emergencies. The intensive health and nutrition strategies focus on intensive health CRP strategy. 1000 best practitioners from the pilot mandals have been identified as health CRPs. Since January 2007, the health CRPs strategy has been implemented in 680 village organizations and established 680 nutrition cum daycare centres. The impact of peri-natal and neonatal outcomes among the members attended nutrition cum day care centres shows 98.5% safe deliveries, 87.3% normal deliveries, no low birth weight baby born, no maternal, infant and neonatal deaths happened in 1700 deliveries occurred among the members enrolled at 680 nutrition centres16. Education – Community Based Primary Schools About 124 Community Managed Pre-Primary Schools are functioning at Utnoor, Jainur, Siripur (U) and Inderevelly mandals of Adilabad district with an enrolment of 2600 children in 3-5 age groups. 400 school dropout children Health and Nutrition – Ministry of Medical and Health, Government of Andhra Pradesh, A Brief Report, 2008. 16 Activities taken up under Education Component – A note on Community Based Primary Education, Department of School Education, Government of Andhra Pradesh, 2009. 15

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enrolled in formal schools and bridge course at Chintor and V.R. Puram mandals. The project covers three Giripragathi mandals of Chintoor, Kunavaram and V.R. Puram mandals of Khammam district. 15 pre-primary schools are functioning at Kothaguda and Gudur mandals of Warangal district. Early Childhood Education (ECE) centres are now being set up in Ramapachodavaram in East Godavari district and Parvatipuram in Vizanagaram district. Shodhana training centre Cheopurupally is providing resource support and also training the instructors. 20 Early Childhood Education (ECE)

Centres were started in

Gummalaxmipuram and Kurupam mandals of Vizianagaram district. About 548 young children ages between 2 and 5 years were enrolled in these centres. 560 children were identified in 28 villages of Golgonda and Devarapally mandals of Vishakhapatnam district in extending the ECE programme. 50 children were identified in 20 villages of Seethampet and Kothur mandals of Srikakulam district to enroll in the ECE centres. Exposure visits were arranged for VOs and Members of MMS of Seethampet and Kothur mandals of Srikakulam district to visit to Shodhana Training Centre at Cheepurupally in Vizianagaram district. 10 villages were identified in Khammam district to establish the ECE centres and survey is completed 10 centres were started in Rampachodavaram of East Godavari district and 150 children were enrolled in the programme. 22 ECE centres were started in Gudur and Kothaguda mandals of Warangal district and 400 children were enrolled in these centres17.

17

Community Migrated Insurance Scheme under India Jeevita Beema Pathakam, Government of Andhra Pradesh, 2009-10.

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Community Managed Insurance Scheme Under insurance initiative, the state government has covered 38.00 lakh rural landless agricultural labourers under Indira Bima Pathakam (Aam Aadmi Bima Yojana), 19.51 lakhs under Janasree Bima Yojana and 23.76 lakhs under other Group Insurance. Total of 81.27 lakhs rural poor persons is covered under different insurance schemes to create social security among the members of the SHG and their families. The government is implementing the insurance schemes with Information Technology (IT) support to provide quality and timely service to the insured members. Zilla Samakhyas have established Call Centres in all district head quarters and solarium of Rs. 5000/- handed over to claimant family members within 24 hours if death occurred. The Government of Andhra Pradesh and LIC of India have adopted claim settlement system for the first time in the country to provide quality and timely service to insured members by positioning BIMA MITRAs. Besides above, Vishakhapatnam Zilla Samakhyas are managing ‘Sanjeevini’, a community managed Health Insurance Scheme and apart from managing a Livestock Insurance Scheme known as Loan Protection Scheme (LPS). Old Age Pensions Village organizations in Andhra Pradesh today are the nodal points of quick and prompt dispersal of old age pensions. This has resulted in more efficient way of disbursing pensions and has also plugged leakages in pension distribution

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system. Government is distributing Rs. 200/- on first of every month to old age persons, weavers, widows and disabled persons. The disabled persons’ pension has been enhanced from Rs. 200/- to Rs. 500/- from January, 2009. Under Pensions Programme, Rs. 1149.45 crores is distributed to 66.32 pensions upto February 201018. Project Expenditure Cumulatively the total expenditure of Indira Kranthi Patham (IKP), 20102011 is Rs. 1990.53 crores. Expenditure from the last 5 years is given in the following table. Table-3.12 Year wise component wise expenditure (Rs. Crores) Component Institutional and Human Capacity Building Community Investment Fund Project Management SPP SPD SERP Total APSWERIES Grand Total

2006-07

2007-08

2008-09

2009-10

2010-11

77.01

84.17

125.57

98.10

86.82

Total expenditure 528.79

217.78

177.91

142.00

40.12

77.60

835.86

22.96 0.12 0.74 318.61 89.70 408.31

23.03 0.15 3.19 288.45 52.00 341.25

25.23 0.00 6.42 299.34 57.00 356.34

22.19 0.08 5.96 166.45 36.49 202.94

24.39 0.00 1.72 190.53 0.00 190.53

139.12 0.78 18.25 1522.80 329.03 1851.83

Overall Performance of Indira Kranthi Patham (IKP) The overall performance of IKP is given in the following table given below.

18

Functioning of DWCRA Self-Help Groups Impact of Paval Vaddi Initiative, Ministry of Rural Development, Government of Andhra Pradesh, 2009.

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Table-3.13 Overall Performance of IKP as on 2011-12 S.No. 1 2 3 4 5 6 7

Indicator No.of SHGs under the Project No.of Members in Women SHGs No.of SHGs of Persons with disabilities No.of Persons with Disabilities in SHGs No.of Village Organizations formed No.of Normal Mandal Samakyas formed Total No.of Beneficiaries of Income Generating Activities

Total expenditure 850671.00 10182181.00 23069.00 212888.00 35525.00 1098.00 2365606.00

8 9 10 11

No.of Households benefiting from Good Security No.of Acres of Land purchased No.of Beneficiary families of Land purchased Among of Bank Linkage upto March in 2009 (Rs. In Crores)

2363735.00 4540.24 5303.00 6682.17

Source: Indira Kranthi Patham performance and expenditure in Andhra Pradesh, 2012.

Financial Access and Pavala Vaddi Initiative To encourage the women’s groups and also to achieve 100% repayment, the State Government has introduced the PAVALA VADDI Scheme, where in the government is reimbursing to the members any interest paid by the SHGs over and above 3% per annum. This has led to significant improvement in loan repayment. Under this initiatives, 4,75,164 SHGs were given Rs. 52.67 crores during 2004-05 and in 2005-06. 2,90,825 SHGs were given Rs. 50.02 crores during 2006-07 and 5,54,359 SHGs were given Rs. 112.30 crores upto March, 2008. During the year upto March 2009, 132.23 crores interest subsidy was given to 5,66,272 groups. Thus, an amount of Rs. 347.22 crores is given to 1,86,720

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SHGs (repeated finance) as Pavala Vaddi incentive since inception of the Scheme19. Diary Intervention The dairy activity is a major livelihood opportunity for the rural poor in Andhra Pradesh. Milk procurement activity was taken up on a pilot basis in Chittoor, Ananthapur, Mahabubnagar and Nizamabad districts since 2003-04, and it has helped the milk producers to get better price for milk and promoted transparency in milk procurement. This also triggered intervention in milk productivity in the villages. Based on the success evidenced in the pilots, the same model is replicated in 16 more districts in the state. Bulk Milk Chilling Units (BMCUs) with a capacity of 2000 to 5000 litres to collect and chill milk to the desired temperature of 40C, were established in 156 mandals in the state. In collaboration with the Andhra Pradesh Dairy Development Cooperative Limited (APDDCF Ltd.), the SHGs and their federations covering 2796 Village Milk Procurement centres with 138800 milk producers and contributed 2.57 lakh litres of milk per day in peak season and 0.80 lakh liters of milk per day in lean season valued at Rs. 38.55 lakhs. Community Managed Sustainable Agriculture (CMSA) Community Managed Sustained Agriculture (CMSA) is a paradigm shift in moving from input centric model to knowledge and skill based model. It involves making best use of natural resources locally available and takes best advantage of 19

Community Managed Sustainable Income and Collective Marketing, Government of Andhra Pradesh, 2009-10.

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the natural processes. The main objective of CMSA is to reduce the cost of cultivation and to bring sustainability to agricultural based livelihoods, with special focus on small and marginal farmers, tenants, agriculture labour and women. In Andhra Pradesh CMSA reached 3171 villages in 240 mandals of 18 districts. It covered 9.32 lakh acres in Kharif and 3.92 lakh acres in Rabi, thus totaling to 13.24 lakh acres by benefiting 3.18 lakh farmers. Under NREGS, NPM convergence 10349 compost pits were dug for effective composting and timely supply of compost, 1197 farm ponds were dug to conserve water recharge ground water and 4815 vermi compost units were constructed. Under CMSA 154 resource villages were developed and 743 seed banks were established to bring seed sovereignty to farmers. Due to implementation of NPM practices, the cost of cultivation was drastically reduced. The range of savings varied from crop to crop ranging from Rs. 2,500/- ha in case of Paddy, to Rs. 12500/- ha in case of Cotton and Rs. 37500/- has for Chillies. During last year total savings across the 18 district reached to an estimated amount of Rs. 150.40 crores. Collective Marketing The collective marketing programme is to enable the Rural Poor to obtain the best price for their forest produce and agricultural commodities the marketing interventions of IKP has registered a significant increase in this financial year with pick up in paddy procurement activity. The VOs have successfully

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implemented village level collective marketing of Neem, Redgarm, Greegram, Chillies, Paddy, Maize, Turmeric, Cashew and NTEP besides agricultural inputs etc. Details of the marketing intervention of last four years and current year are furnished in the following table20. Table-3.14 An Overview of Collective Marketing S. No.

Indicator

1 2 3 4

No. of MMS involved

5 6

No. of VOs involved No. of families covered No. of commodities handled Volume (lakh quintals) Turnover (Rs. Crores)

2006-07

2007-08

2008-09

502 1154 118497 57

710 2010 257280 81

533 783 101790 81

1.8 16

24.94 141.9

20.65 126.8

2009-10

2010-11

1036 845.00 2071 1662.00 300995 162584.00 79 65.00 47.11 320.15

58.78 491.61

Source: Abhaya Hastam Scheme under Indira Kranthi Patham, A Progress Report, 2011.

Abhaya Hastam (Indira Kranthi Patham Pension and Insurance scheme for SHG Women). Government of Andhra Pradesh has undertaken comprehensive eradication of poverty, in rural and urban areas through the Indira Kranthi Patham, a Programme for empowerment of women, through formation, development and strengthening of women SHGs and their federations, covering one crore twenty five lakh women in the state during the last 3 years. Government is also implementing National Rural Employment Guarantee Scheme to secure guaranteed wage employment to the rural poor. As a result of these measures, a large number of women and their families in rural and urban areas are enjoying stable livelihoods, increased incomes and better quality of life. While economic growth at household level is an important pre-condition for expanding the scope 20

Abhaya Hastam Scheme under Indira Kranthi Patham, A Progress Report, 2009.

112

of special social securing policies, the Government regards social security as one of the important factors in improving quality of life through and elimination of poverty. The need for income security in their old age, when their ability to earn from their physical labour would have reduced considerably has been voiced by SHG members in various meetings they had with the Chief Minister of Andhra Pradesh and Abhaya Hastam is the concept developed through such meetings. Abhaya Hastam is a co-contributory pension scheme for the women, above the age group of 18, belonging to the Self-Help Groups in Andhra Pradesh. The scheme envisages contribution of Rs. 30 per month into her pension account. The contributing of the member and co-contribution of the government is periodically transferred to Life Insurance Corporation of India (LIC), for investing diligently for securing better returns on the investment. The corpus thus generated till the age of 60 years, will be used for giving monthly pension amount to each women, on crossing 60 years of age. Abhaya Hastam offers 3 kinds of benefits to its members, namely 1) Monthly pension on crossing 60 years of age; 2) Death and disability insurance cover including scholarship to the children of the women, 3) Lump sum transfer of corpus which is accumulated in her account is transferred to the nominee in the event of her death. The monthly pension amount payable to the women depends on the number of years of contribution she makes till 60 years of age. In order to secure reasonable level of monthly pension, government have decided to ensure that

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every women shall receive Rs. 500/- or above pension every month, on crossing 60 years of age till her death. A women joining Abhaya Hastam at the age of 18 will be able to draw Rs. 2200/- per month pension on crossing 60 years of age. This amount is likely to be much higher, should the level of monthly contribution/co-contribution is stepped up after every 5 or 10 years. Every woman who joins Abhaya Hastam will have a pass book to record details of her contribution and she is entitled to receive an annual statement with the particulars of her contribution and co-contribution from the government and interest earned on the corpus. On crossing 60 years of age, the monthly pension is adjusted to her bank account by LIC every month. Abhaya Hastam offers many more benefits to the women in addition to monthly pension on retirement. The other benefits are (a) death and disability insurance cover in respect of women in the age group of 18 to 59. In the event of her natural death, Rs.30,000/- is paid to the nominee. In the event of accidental death, Rs. 75,000/- is paid to her. In case of partial disability Rs. 37500/- is paid to her. (b) the member’s children studying 9th, 11th and 12 classes will receive a scholarship of Rs. 1200/- per annum, (c) in the event of the death of the subscriber, the available contribution of the subscriber and government’s cocontribution along with accrued earnings on such contributions will be transferred to the nominee of the subscribed. Government of Andhra Pradesh have brought out a legislation; AP SHG Women Co-contributory Pension Act 2009 which was passed by the AP State

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Legislature and AP State Legislative Council. The state government has provided the budget of Rs. 365 crore in the 2009-10 budget estimates towards state government’s co-contribution. The scheme has already been launched at the state head quarters and also in the districts by distributing cheques of Rs. 400/- towards the monthly pension for the SHG women who joined the scheme and attained retirement age. The enrolment of SHG women of all age groups into Abhya Hastam scheme has also commenced. It is expected that about 1 crore 25 lakh women are likely to join the scheme. The Andhra Pradesh Government has thus earned the distinction of rolling out the world’s largest co-contributory pension scheme for the poor in unorganized sector21. Andhra Pradesh Smart Card Project In 2006, Rural Development Department of Andhra Pradesh started a pilot initiative to make payments of Government benefits to the beneficiaries through Smart Cards which are backed by bank accounts. The overall objectives of the initiatives are: i. To provide an operational frame work for increasing the outreach of main stream banking and financial services to the poorest of the poor by using technology based solution. ii. To ensure efficient and timely transfer of government benefits of the poor. iii. To minimize the possibility of fraudulent payments. iv. To achieve total financial inclusion thorough Smart Cards.

v. To benefit the rural eligible poor. Andhra Pradesh Smart Card Project – A Report, Ministry of Rural Development, Government of Andhra Pradesh, 2010. 21

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Approach The approach is to create branchless banking infrastructure by establishing a network of business correspondents in each village. Banks and Government will work together to open accounts and issue smart cards to the poor. To begin with, certain Government benefits like social security pensions and NREGS wage payments will be delivered through this network. In the next stage, banks will deliver main stream banking services like Savings, Deposits, Remittances, Loans, etc. The endeavour is to establish a banking outpost in village to include unbanked poor. Architecture Banks lay down the entire infrastructure, in order to achieve this, they procure service providers through a process of competitive bidding, and service providers typically extend two important services name. i. Provide Technology (Technology Provider) ii. Act as a “banking Correspondent on behalf of Bank by opening and operating banking outposts in every Grampanchayat and delivering financial services to people. In Andhra Pradesh, the smart card project started with Rural Development establishing a steering committee at the state level which consists of officials from the State Government, Reserve Bank of India (RBI) and Bankers. 8 Mandals (Blocks) are selected for SSP and NREGS payments by issuing smart cards and laying down EBT platform. 6 Banks namely, SBI, SBH, AB, UBI, APGVB and

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Axis Bank participated in the pilot, project work. Payments under the pilot started in May 2007 and are continuing till date. So far, 1.2 lakh beneficiaries are enrolled and an amount of Rs. 24.40 crores is disbursed. Critical Evaluation Ever since 1980s there is a substantial improvement in literacy level of rural women. The state government has introduced several educational institutions like Bridge Open School, Kasturba Girls High Schools, Sarva Siksha Abhiyan, Saksharata Mission and Adult Literacy Centres in rural areas which is turn created socio economic awareness among the self-help groups about growing importance of school education for sustainable development. With the growing number of graduates, the unemployment has increased in the state. Lack of job opportunities and failure of the government administration in creating jobs has become a serious challenge, leading to several strikes and agitations by the unemployed graduates in the state. In the field of higher education, the government has achieved a remarkable progress in establishing Junior, Degree and Professional colleges between 1980 and 2005 under private sector. The number of private Junior colleges in the state has increased from 398 to 2449 and Degree colleges from 450 to 1157 during 2006-07. Due to vast growth of corporate colleges, the elite class children could reap the benefits. However, the quality and results of government colleges in many parts of the state is not encouraging.

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Economy The economy of the state is basically agrarian and percentage of irrigation is below 40 percent. The plan allocation to irrigation by the state government is gradually declining. Most of the projects undertaken by the state government are not completed due to “interstate water disputes”. Though the state economy is well endowed with natural resources and minerals but is still lagging behind when compared with other states. In the field of per-capita income economy, food production and rural infrastructure, the state government is in a better position. Though there is an increase of 20% in irrigation, the tank irrigation has declined from 10.88 hectares in 1955.56 to 9 lakh hectares in 1980-81 and it remained to 7.47 hectares in 200001. However, the bore well, open wells and dug wells irrigation increased significantly which ultimately helping the farmers. It is noteworthy that percentage of area under food crops is higher in Coastal areas when compared to Rayalaseema and Telangana. However, the proportion of area under non-food crops has been increasing over the years due to the changes in cropping pattern, as a result of commercialization of agriculture. The development sector in Coastal region has resulted in widening regional imbalances among the people of Telangana and Rayalaseem regions. Industrial Growth and Employment Andhra Pradesh is lagging behind like many other states in the field of industrial growth. The index growth of industrial production is self explanatory.

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The employment growth of workers in different industries is stagnant during 1985-86 to 2000-01, the number of industrial workers increased from 823919 to 825827 which is only a marginal increase. It is a paradoxical truth that whenever industrial growth is taking place in the state, it is without additional jobs. Public investment in industrial sector decreased from 7.36 percent to 6.2 percent after the post liberalization. Power Tariff Andhra Pradesh government has witnessed a significant change in the field of power sector. The inflation capacity of power consumption pattern did not make any progress in the field of agriculture. The power sector is undergoing structural reforms which in turn increased tariff to all types of consumers including the farmers since 1996-97. The farmers who depend on dug wells and bore wells in Telangana and Rayalaseema, have been demanding for subsidized power supply in view of increase of cost of production in agriculture due to increased power tariff and charges. Added to this, village and small scale industries also could not benefit due to liberalization policies and lack of cooperation by power sector officials which are the major reasons for power crisis in the state22. Problems of Employment Generation Employment generation programmes and food for work scheme for the rural poor have been snatched away by the contractors, politicians and officials Pattern of Rural Development – A Study of Andhra Pradesh, SEER Division Planning Commission, Main Findings, New Delhi, 2010, pp.113-135. 22

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denying employment to the poor village labourers. As a result, employment and daily income of village labourers have declined. In recent times, state government is witnessing continuous drought situation which is same even after 2007-08. Most of the villages from backward Telangana region and Rayalaseema are migrating to the big cities and industrial areas in search of livelihood. Drought prone districts like Mahabubngar in Telangana, Ananthapur in Rayalaseema and Vijayanagaram in Coastal Andhra region are still remain backward in respect of income, employment and better living condition. The liberalization affect on the artisans, households is also devastating in nature. The small units hitherto surviving on a bare minimum have become vulnerable due to competition from multinational products. Occupations like weaving, tailoring, poultry, carpentry, pottery are in deep crisis. The suicide death of handloom weavers has become a common feature in Telangana districts. Weaving is an important employment generation to village economy in this region. But the state government has totally failed to create support price to the weavers as such they are suffering without marketing facility. The situation in Andhra Pradesh reveals that real development and income is improved at the grassroots level. But due to lopsided developmental strategies pursued from time to time, balanced development of the state has become causality and regional imbalances went on widening. These imbalances have become stumbling block for the emotional integration of the people of all the three regions of the state.

120

The state government has borrowed about Rs. 57000 crores from internal and external sources but no irrigation projects were so far completed. The policies of liberalization, privatization has been dispensing the rural masses from their opportunities. The benefits and subsidy meant for backward class and the weaker sections of the society (SC & STs) have been reduced year after the year and created serious financial crisis to the poor farmers. As such the village economy is facing economic and social crisis. The growth rate of agriculture is recorded as 2.47 percent which is below the all India level. It is significantly lower than proposed and much published in vision 2020 document of the state government. Agriculture growth rates have gone down drastically and employment situation in rural areas has not improved rather worsened. Greater Migration of Rural Labour There is an exodus of young rural labourers of backward and drought affected districts to towns and cities in search of livelihood. Rural labourers from Srikakulam and Vijayanagaram districts are migrating to Vishakhapatnam and Vijayawada while the Chittoor and Ananthapur labour migrate to Bangalore and Chennai. The labour from Nalgonda, Mahabubnagar, Ranga Reddy and Medak would migrate to Hyderabad, Mumbai and Ahmedabad, while old aged people keep staying in the villages. The critics are of the opinion that the highly publicized DWCRA, the SelfHelp Groups Scheme could not provide work to the rural women as expected. As far as the employment and income generating activity is concerned, very little is

121

achieved. Whenever the products are produced by DWCRA groups, they are decorative and artistic and unable to compete with global multinational products. The experience reveals that, DWCRA Self-Help Groups have become a vote bank for few political wings. As a whole, the state is lagging behind in respect of industrial development. There is no industrial activity worth mentioning except rice mills, flour mills, oil mills and village artisan units. The Agro based units are closed due to problem in agriculture sector. The status of village artisans is further demoralizing year after year23. Summing Up It is a paradoxical truth that the process of liberalization, privatization and globalization, could not benefit the rural poor. In other words, the global market is making inroads in remote corners of Andhra Pradesh and badly affecting rural employment, income generation and consumption pattern. In the post liberalization scenario, there is a need to review the policies of state government with regard to utilization of cultivable land, river water and improving institutional finance to development rural infrastructure in the state. Andhra Pradesh is lagging behind in respect of agriculture, human development and industrial sectors. Non agriculture sector also could not develop due to lack of agriculture development. Hence, poverty, unemployment, hunger and suicidal deaths have become common in backward Telangana region. As such

23

Problems of Employment and Greater Migration of Labour in Andhra Pradesh, the Times of India, June 28, 2010.

122

unrest, agitation and regional imbalances provoked the people of Telangana to agitate for the cause of separate Telangana state. In spite of several bottlenecks, developmental departments and the district administration in Andhra Pradesh have played a significant role in achieving the goals of rural development, under public policy. Until and unless the rural infrastructure is decentralized with active people participation, it is not possible to achieve socio-economic development of backward villages in Andhra Pradesh.

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YEAR 1952

SCHEME Community Development Programme (CDP)

MINISTRY Rural Development

196061 196465 1965

Intensive Agriculture Development Programme(IADP) Intensive Agriculture Area Programme me (IAAP) Credit Authorization Scheme (CAS)

Agriculture

196667

High yielding Variety Programme (HYVP)

196667 1969

Green Revolution:

Agriculture

Rural Electrification Corporation

Power

1972

Scheme of Discriminatory Interest Rate

Banking Department, Finance Ministry

197273

Accelerated Rural Water Supply Programme (ARWSP)

1973

Drought Prone Area Programme :

1973

Crash Scheme for Rural Employment CSRE Marginal Farmer and Agriculture Labor Agency (MFALA) Small Farmer Development Scheme SFDS Command Area Development Programme : (CADP)

Ministry of DrinkingWater and Sanitation Department of Land Resources-Ministry of Rural Development Rural Development

197374 197475 1975

1975

Twenty Point Programme ( TPP)

1975

Integrated Child Development Services

1977

197778

National Institution of Rural Development Training, Investigation and Advisory for Rural Development Desert Development Programme: (DDP)

1977-

Food For Work Programme :

Agriculture Banking Department, Finance Ministry Agriculture

Agriculture Agriculture Ministry of Water Resources, River Development and Ganga Rejuvenation Ministry of Statistics and Programme Implementation Ministry of Women and Child Development Rural Development

Department of Land Resources-Ministry of Rural Development Rural Development

DETAILS Overall development of rural areas and people’s participation To provide loan for seeds and fertilizers to farmers To develop special harvest in agricultural area Involved qualitative credit control of Reserve Bank of India To increase the productivity of food grains by adopting latest varieties of inputs of crops To increase productivity. Confined to wheat production To provide electricity in rural areas To provide loans to the weaker sections of society at concessional interest rates of 4% Providing drinking water in villages Protection from drought by achieving environmental balance and by developing ground water resources For rural employment Technical & financial assistance to marginal farmers Technical & financial assistance to small farmers Better utilisation of irrigational capacities

Poverty eradication and an overall objective of raising the living standards. Tackle malnutrition and health problems in children 6 years of age and their mothers.

To control desert expansion by maintaining environmental balance 1 of 29 Providing food grainsPage to labour

78 197778

AntyodayaYojana :

Ministry of Housing and Urban Poverty Alleviation Rural Development

Scheme of Rajasthan, providing economic assistance to poorest families (Launched on 15th August);Educational and vocational training (Launched on October 2, 1980);Overall development of rural poor Employment for rural man force Sustainable opportunities of self employment to the women belonging to the rural families who are living below the poverty line Employment to landless farmers and labourers

1979

Training Rural Youth for Self Employment TRYSEM

1980

Integrated Rural DevelopmentProgramme :IRDP

Rural Development

1980

National Rural Developmentprogramme NREP Development of Women & Children in Rural Areas (DWCRA)

Rural Development

Rural Landless Employment Guarantee Programme (RLEGP) (Launched on August 15) Farmers Agriculture Service Centers FASCs

Rural Development

1984

National Fund for Rural Development :

Rural Development

1985

Comprehensive Crop Insurance Scheme: Council of Advancement of People’s Action & Rural Technology (CAPART) Self EmploymentProgramme for the Poor

Agriculture

Tell the people use of improved instruments of agriculture To grant 100% tax rebate to donors and also to provide financial assistance for Rural Development projects Crop Insurance

Rural Development

Assistance to rural people

Ministry of Housing and Urban Poverty Alleviation Ministry of Drinking Water and Sanitation Ministry of Drinking Water and Sanitation Department of Financial Services, Ministry of Finance Rural Development

SEPUP:Self-employment through credit and subsidy

1982

1983

198384

1986

1986

1986

National Drinking Water Mission

1991

1988

Above scheme renamed and upgraded to Rajiv Gandhi National Drinking Water Mission Service Area Account

1989

JawaharRojgarYojana

1989

Nehru RojgarYojana NRY

1990

Agriculture & Rural Debt Relief Scheme: ARDRS

Rural Development

Agriculture

Ministry for Housing and Urban Poverty Alleviation Departmentof Financial Services, Ministry of Finance

: For Rural Drinking Water

: For Rural Drinking Water

Rural Credit

: JRY Employment to rural unemployed Employment to Urban unemployed Exempt Bank loans up to Rs. 10,000 for rural artisans and weavers

Page 2 of 29

1990

Scheme for Urban Micro Enterprises SUME

1990

Scheme of Urban wage Employment SUWE

1990

Scheme of Housing and Shelter Upgradation (SHASU)

1991

National Housing Bank Voluntary Deposit Scheme

1992

National Renewal Fund

1993

Employment Assurance Scheme (EAS) (Launched on October, 2)

1993

Members of Parliament Local Area Development Scheme MPLADS (December 23, 1993) Scheme for Infrastructural Development in Mega Cities : SIDMC

1994

Ministry of Micro, Small and Medium Enterprises and Ministry of Housing and Urban Poverty Alleviation Ministryof housing and urban poverty alleviation Ministry of Housing and Urban Poverty Alleviation NHB is a fully owned subsidy of RBI. All the operations and schemes are taken by RBI Department of Industrial Policy and Promotion, Ministryof Commerce and Industry Different ministriesas per the work provided Ministry of Statistics and Programme Implementation Ministry of Urban Development

1993

District Rural Development Agency DRDA

Rural Development

1993

MahilaSamridhiYojana (October 2, 1993)

1994

Child labor Eradication Scheme

National Backward Classes Finance and Development Corporation under Ministry of Social Justice and Empowerment Ministry of Labour and Employment

1995

1995

prime Minister Integrated Urban Poverty Eradication Programme PMIUPEP Mid Day Meal Scheme:

1996

Group Life Insurance Scheme for

Ministry for Housing and Urban Poverty Alleviation Department of School Education and Literacy, Ministry of HRD Ministry of Finance

Assist urban small entrepreneurs

Scheme for urban poor

Providing employment by shelter Upgradation Using black money by constructing low cost housing for the poor

social safety net to the workers who are likely to be affected by technological up-gradation and modernisation in the Indian industry Employment of at least 100 days in a year in villages Sanctioned 1 crore per year for development works Water supply, sewage, drainage, urban transportation, land development and improvement slums projects in metro cities Financial assistance to rural people by district level authority Encourage rural women to deposit in Post office schemes

Shift child labour from hazardous industries to schools To eradicate urban poverty

Nutrition to students in primary schools to improve enrolment, retention and attendance Insurance in rural area for low Page 3 of 29

1995 199798

Rural Areas National Social Assistance programme : Ganga KalyanYojana

Rural Development

1997

Kastoorba Gandhi Education Scheme: (15 August 1997)

1997

2000

SwaranJayantiShahariRojgarYojana: Ministry for Housing and Urban Poverty Alleviation Bhagya Shree Bal Kalyan Policy Annapurna Yojana Ministry of Consumer Affairs, Food and Public Distribution SwaranJayanti Gram Rural Development SwarojgarYojana Jawahar Gram SamriddhiYojana Rural Development Jan Shree BimaYojana Insurance Department of Financial Services, Ministry of Finance Pradhan MantriGramodayaYojana Antyodaya Anna Yojana Ministry of consumer affairs, food and public distribution Pradhan Mantri Gram SadakYojana Rural Development

2001

SampoornaGrameenRojgarYojana

Rural Development

2001

Valmiki Ambedkar AwasYojana VAMBAY

2003

Universal Health Insurance Scheme:

2004

VandeMataram Scheme VMS

Ministry for Housing and Urban Poverty Alleviation Department of Financial Services, Ministry of Finance Ministry of Health and Family Welfare

2004

National Food for Work programme

Rural Development

2004

Kastoorba Gandhi BalikaVidyalaya

2005

Janani SurakshaYojana

2005

Bharat Nirman

Department of School Education and Literacy, Ministry of HRD Ministry of Health and Family Welfare Rural Development

1998 1999

1999 1999 2000

2000 2000

Ministry of HRD

premium Assist BPL people Provide financial assistance to farmers for exploring ground water resources Establish girls schools in low female literacy areas (district level) Urban employment

Upliftment of female children 10 kgs food grains to elderly people

Self-employment in rural areas Village infrastructure BPL people

Basic needs of rural people To provide food security to poor

Connect all villages with nearest pukka road Employment and food security to rural people Slum houses in urban areas

Health insurance for rural people Initiative of public Private partnership during pregnancy check up Supplementary wage as foodgrains for work Setting up residential schools at upper primary levels for girls belonging to predominantly OBC, SC & ST Providing care to pregnant women Development of India through irrigation, Water supply, Housing, Road, Telephone and electricity Page 4 of 29

2005

National Rural Health Mission:

Ministry of Health and Family Welfare

2005

Rajeev Gandhi GrameenVidyuti Karan Yojana:

Ministry of Power

2005

JawaharLal Nehru National Urban Renewal Mission: (JNNURM) National Rural Employment Guarantee Scheme NREGS

Urban Development

2007

RastriyaSwasthyaBimaYojana :

Ministry of Health and Family Welfare

2007

AamAadmiBimaYojana

Department of Financial Services, Ministry of Finance

2009

Rajiv AwasYojana

Ministry for Housing and Urban Poverty Alleviation

To make India slum free in 5 years

2009

Bachat Lamp Yojna

Ministry of Power

Social Sector Scheme pertaining to Pension Sector

2010

Indira Gandhi MatritvaSahyogYojana

Ministry of Women and Child Development

A cash incentive of Rs. 4000 to women (19 years and above) for the first two live births.

2010

Swavalamban

Ministry of Finance

Pension scheme to the workers in unorganised sector. Any citizen who is not part of any statutory pension scheme of the Government and contributes between Rs. 1000 and Rs. 12000/- per annum, could join the scheme. The Central Government shall contribute Rs. 1000 per annum to such subscribers.

2011

Swabhiman

Ministry of Finance

To make banking facility available to all citizens and to get 5 crore accounts opened by Mar 2012. Replaced by Pradhan Mantri Jan DhanYojana.

2006

Rural Development

Accessible, affordable, accountable, quality health services to the poorest of the poor on remotest areas of the country Extending electrification of all villages and habitations and ensuring electricity to every household

100 days wage employment for development works in rural areas Health insurance to all workers in unorganized area below poverty line Insurance cover to the head of the family of rural landless households in the country

Page 5 of 29

2011

Sabla or Rajiv Gandhi Scheme for Empowerment of Adolescent Girls

2011

National Rural Livelihood Mission(NRLM)

MoWCD

Empowering adolescent girls (Age) of 11–18 years with focus on out-of-school girls by improvement in their nutritional and health status and upgrading various skills like home skills, life skills and vocational skills. Merged Nutrition Programme for Adolescent Girls (NPAG) and Kishori Shakti Yojana (KSY).

MoRD

This scheme will organize rural poor into Self Help Group(SHG) groups and make them capable for selfemployment. The idea is to develop better livelihood options for the poor.

Government schemes in India

Active Atal Pension Yojana BetiBachao, BetiPadhaoYojana Deen Dayal UpadhyayaAntyodayaYojana (DAY) Direct Benefit Transfer (DBT) Deen Dayal Gram JyotiYojana (DDUGJY) Deen Dayal UpadhayaGrameenKaushalYojana (DDU-GKY) Domestic Efficient Lightening Programme (DELP) Heritage City Development And Augmentation Schemes Yojana(HRIDAY) Housing for All Kishore VaigyankiProtsahanYojana (KVPY) Integrated Child Development Services (ICDS) RashtriyaKrishiVikasYojana Midday Meal Scheme National Social Assistance Scheme(NSAP) National Service Scheme (NSS) Indira AwaasYojana (PMAY) Pradhan Mantri Gram SadakYojana (PMGSY) Page 6 of 29

Pradhan Mantri Jan DhanYojana (PMJDY) Pradhan MantriKrishiSinchaiYojana (PMKSY) Pradhan Mantri Mudra Yojana (PMMY) Pradhan MantriJeevanJyotiBimaYojana Pradhan MantriSurakshaBimaYojana Pradhan MantriUjjwalaYojana SansadAdarsh Gram Yojana(SAGY) Soil Health Card Scheme SwaranJayanti Gram SwarojgarYojana (SGSY) Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission Indradhanush National Rural Health Mission (NRHM ) Missions Accredited Social Health Activist (ASHA) SarvaShikshaAbhiyan Smart Cities Mission TB-Mission 2020 Bharatmala Indian Rivers Inter-link Projects Sagar Mala project SetuBharatam Accessible India Campaign Digital India Make in India Campaigns Skill India Startup India Swachh Bharat Abhiyan Unnat Bharat Abhiyan Aadhaar Business identification number Indian passport IDs Permanent account number Ration card (India) Unorganised Workers' Identification Number Voter ID (India) BhamashahYojana JyotigramYojana State Make in Maharashtra Vibrant Gujarat Page 7 of 29

Closed Bharat Nirman Central Government Health Scheme (CGHS) Indira GandhiMatritvaSahyogYojana (IGMSY) Integrated Rural DevelopmentProgramme (IRDP) Janani SurakhshaYojana (JSY) JawaharLal Nehru National Urban Renewal Mission(JNNURM) Kasturba Gandhi BalikaVidyalaya Members of Parliament Local Area Development Scheme (MPLADS) National Literacy MissionProgramme (NLM) Schemes National Pension Scheme (NPS) National Rural Livelihood Mission (NRLM) Nirmal Bharat Abhiyan Pooled Finance Development Fund Scheme Pradhan MantraiAdarsh Gram Yojana (PMAGY) Revised National Tuberculosis Control Programme (RNTCP) RashtriyaSwasthyaBimaYojana (RSBY) SampoornaGrameenRojgarYojana Swavalamban Voluntary Disclosure of Income Scheme MERGED SCHEMES 1 National Food for Work programme was merged with NREGA 2 SampoornaGrameenRojgarYojana merged with NREGA IntensifiedJawaharRojgarYojana 1993 was merged with Employment Assurance Scheme 1996 which was later merged with 3 SampoornaGrameenRojgarYojana 2001 IRDP , TRYSEM, DWCRA, Million Wells Scheme, SITRA & Ganga 4 Kalian Yojana merged with SwaranJayanti Gram SwarojgarYojana Rural Landless Employment Guarantee programme merged with JawaharRojgarYojana which was replaced by Jawahar Gram 5 SamridhiYojana (1999) Jawahar Gram SamridhiYojana was merged with 6 SampoornaGrameenRojgarYojana (2001) 2009 DhoodhGanga Government of India’s dairy business enterprise scheme is Doodh Ganga Yojana. This scheme offers fractional interest freecredits & capitalgrant provisions to encourage planned dairy farming & generate service openings in Himachal Pradesh.

Page 8 of 29

Department of Animal Husbandry of Government of India has launched this scheme as a dairy undertakingassets plan to be executed by the National Bank for Agriculture &Rural Development (NABARD). The programme helps to convertmicro dairy farming ventures into planned dairy commerce ventures. DoodhGanga Yojana aims to carefully encourage 50,000 rural families by the arrangement of ten thousand Self Help Groups inside 3 year duration. The programme makes complete necessities to vend dairy goods on a larger level. The chief aim of the proposal was to generate optional income for local inhabitants concerned with the project. The secondary aim was to start a 'white revolution' by the flourishing execution of the proposal.

2008 LadliScheme According to the scheme the girlchild obtains free education & upbringing with additionally after eighteen years of age she will be permitted to acquire one lakh rupees. This money is given in her name and it can be utilized for the marriage of the girl which isconsidered by some parents as burden in the society.  

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Ministry of Rural Development It has two Departments : Department of Land Resources and Department of Rural Development The erstwhile Department of Drinking Water and Sanitation has been removed from Ministry of Rural Development and established as an independent Ministry. Rural DevelopmentMinistry: Timeline 1952 - Community project administration set up under the planning commission for managing community development programme me (inaugurated - 2 oct,1952) 1974 - Department of Rural Development established under the Ministry of Agriculture 1979 - Department of Rural Development elevated to status of Ministry of Rural Reconstruction -The Ministry was renamed as Ministry of Rural Development and again changed into dept. under Ministry of Agriculture and Rural Development. 1985 - rechristened as Ministry of Agriculture 1991 - Department of Rural Development was again changed to Ministry of Rural Development 1995 - Ministry was renamed Ministry of Rural Areas and Employment. 1999 -Name was changed to Ministry of Rural Development Schemes of Ministry of Rural Development Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) The act was notified in 2005, all the rural areas have been covered since 2008 Main aim is improve the livelihood security of rural household A right based act i.e providing unskilled manual work to those who demand it Who can demand work? : any adult member of a rural household who is ready to do unskilled manual work How many days of work? : upto 100 days of guaranteed wage employment in a financial year ( April1st to March 31st). The days can be increased by the central govt. or the state govt. concerned. How is it guaranteed: providing work within 15 days of the demand for work or else unemployment allowance has to be given. Unemployment allowance to be provided by the state govt. at a rate of 1/4th of the wage paid for the first 30 days and half of the wage rate for rest of the financial year. Wage to material ration: 60 to 40 ratio for permissible work. No contractor or machinery to be involved. Implementation of Act PRI to be responsible for planning, monitoring and implementation of the work. Gram sabha to recommend works which will be executed by the panchayat. Page 9 of 29

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The Programme Officer (appointed by the state govt. at intermediate panchayat level) shall allot at least 50% of the works in terms of its cost under a Scheme to be implemented through the Gram Panchayats. 1/3 of the beneficiaries have to be women Methods to ensure transparency in implementation: Social audit to be organized by the gram panchayat District level ombudsman for grievance redressal, the ombudsman will be independent of the central or the state government. Photographs of the work site to be appended at the stage of before start of the work, during course of the work and once the work is completed. Payments to the beneficiaries are made through post office and savings bank account. Providing Urban Amenities in Rural Areas (PURA) Why : Lack of modern amenities, livelihood opportunities, lack of physical and social infrastructure leading to migration among rural population towards cities and towns In the year 2003 APJ Abdul Kalam put forward the idea of integrated development of villages leading to urbanization How to achieve this objective? - By providing Physical connectivity, Electronic Connectivity, and knowledge connectivity. All of this will lead to economic connectivity of rural areas. Implementation: Implemented on pilot basis for three years, starting from 2004-05 (10th five year plan). Lessons learnt from this phase : Not holistic, due to lack of convergence with development programmes of other Department No clear guidelines or business plan. Infrastructure centric without giving due consideration to economic activity. Site selection was not based on growth potential Revamped PURA, after consultation with government Departments and ADB. Launched in 11th five year plan as a pilot project Features of revamped PURA Convergence with other government schemes, Implemented in PPP mode, Implementation in project mode with lifestyle approach; construction, operation and maintenance built into the cost of infrastructure. Gram Panchayat will partner with the private partner, thereby increasing accountability at the grass root level itself. CAPART (Council for Advancement of People's Action and Rural Technology) Implementing Agency: Autonomous organization (Registered Society) under the Department of Rural Development Set up in 1986 Objective: To promote voluntary action among rural people through the participation of the entire community, and promoting technology that is appropriate for the rural setup. To support schemes that increase employment opportunities, increases self-reliance, generates awareness, creates organization and improves the overall quality of life. How CAPART will achieve this objective: By providing funding to voluntary organizations It has also set up 9 regional centres. These regional centres are allowed to sanction project proposals with an outlay of 10 lakh. Funding to voluntary organizations is decided based on the nature of the project and ability of the organization to complete the project. CAPART has its own monitoring personnel. Drought Prone Area Programme and Desert Development Programme The overall objective of the programme is to mitigate the impact of droughts on crop production, livestock, humans, water resources and productivity of land ultimately leading to drought proofing of the target region In case of desert development programme; the objective is to minimize the adverse effect of drought, to control desertification and rejuvenating the natural resource base of the identified Desert area. Since 1995-96 both these programme are implemented under Integrated Watershed Development Programme Page 10 of 29

SN Govt Scheme

Details 

Launched on 2nd October 2014)



To have clean India by 2nd October 2019

Ministry-Ministry of Drinking Water and Sanitation



Ministry of Urban Development

Eliminate open defecation by constructing toilets for households, communities



Eradicate manual scavenging



Introduce modern and scientific municipal solid waste management practices



Enable private sector participation in the sanitation sector

SWACHH BHARAT ABHIYAN

1

Change people’s attitudes to sanitation and create awareness BAL SWACHH MISSION 2

(Part of SwacchBharat Mission but implemented by MinistryWomen and Child Development)



Launched on 14th November 2014)



Awareness about the cleanliness of the children



Launched on 15th July 2015 with an aim to train over 40 crorepeople in India in different skills by 2022. It includes various initiatives of the government like "National Skill Development Mission", "National Policy for Skill Development and Entrepreneurship, 2015", "Pradhan MantriKaushalVikasYojana (PMKVY)" and the "Skill Loan scheme".



To create jobs for youth of the country



Skill Development in Youth



Making Skill available to All Youth of India



UK has entered into a partnership with India under this programme. Virtual partnerships will be initiated at the school level



Launched on 29th April 2015



A Smart City is anurban development



Vision to integrate multipleinformation and communication technology (ICT) solutions in asecure fashion to manage a city’s assets



In a first Government of India will develop 100 Smart Cities in India

SKILL INDIA 3

Ministry-Ministry of Skill Development and Entrepreneurship

SMART CITIES 4

Ministry- Ministry of Urban Development

Page 11 of 29

SN Govt Scheme

Details 

Under this scheme Cities from all States are selected



It was launched on 25th September 2014

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The campaign was designed by Wieden and Kennedy



To make India a manufacturing hub.

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Make in India is an initiative of the Government of India to encourage multinational, as well as domestic, companies to manufacture their products in India.

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The major objective behind the initiative is to focus on job creation and skill enhancement in twenty-five sectors of theeconomy

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India would emerge, after initiation of the programme (and if successful), as the top destination globally for foreign direct investment, surpassing theUnited States of America as well as China

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The initiative also aims at high quality standards and minimising the impact on the environment



NamamiGange Project or Namami Ganga Yojana is an ambitious Union Government Project which integrates the efforts to clean and protect the Ganga River in a comprehensive manner.



The project is officially known as Integrated Ganga Conservation Mission project or ‘Namami Ganga Yojana’.

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This project aims at Ganga Rejuvenation by combining the existing ongoing efforts and planning under it to create a concrete action plan for future.

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Launched on 1st July 2015



To transform India’s economy



The initiative includes plans to connect rural areas with highspeed internet networks Digital India has three core components.

MAKE IN INDIA 5

(Dept. of Industrial Policy and Promotion , Ministry of Commerce and Industry) (Coordinating Agency-PMO)

NAMAMI GANGE 6

Ministry-Ministry of Water Resources, River Development & Ganga Rejuvenation

DIGITAL INDIA 7

Ministry of Communications and Information Technology

These include: 

The creation of digital infrastructure



Delivering services digitally

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Digital literacy The Government of India entity Bharat Broadband Network Limited which executes the National Optical Fibre Network project will be the custodian of Digital India (DI) project. BBNL had ordered United Telecoms Limited to Page 12 of 29

SN Govt Scheme

Details connect 250,000 villages through GPON to ensure FTTH based broadband. This will provide the first basic setup to achieve towards Digital India and is expected to be completed by 2017. 

The Union Ministry of Tourism had launched the Swadesh Darshan Scheme in 2014-15 with an aim to develop theme based tourist circuits in the country. These tourist circuits will be developed on the principles of high tourist value, competitiveness and sustainability in an integrated manner. They will be developed by synergizing efforts to focus on concerns and needs of all stakeholders to enrich tourist experience and enhance employment opportunities. Under this scheme, 13 thematic circuits have been identified for development. They are Buddhist Circuit, North-East India Circuit, Coastal Circuit, Himalayan Circuit, Krishna Circuit, Desert Circuit, Eco Circuit, Wildlife Circuit, Tribal Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit and Heritage Circuit.

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Launched on 22nd January 2015

SWADESH DARSHAN 8 Ministry-Ministry of Tourism

9

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The scheme was launched by Prime Minister NarendraModi on 22 January 2015 as a part of the BetiBachao, BetiPadhao campaign.

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The scheme currently provides an interest rate of 8.6% and tax benefits.

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The account can be opened at any India Post office or a branch of some authorised commercial banks

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(Launched on 11th October 2014)-Each MP to develop three villages by 2019, eight villages by 2024.

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Identification of villages

SUKANYA SAMRIDHI ACCOUNTMinistry of Finance

PRADHAN MANTRI SANSAD MPs can select any gram panchayat, other than their own village or that of their spouse, to be developed as an Adarsh Gram. The village ADARSH GRAM YOJANA must have a population of 3000-5000 people if it is located in the 10 Ministry of Rural plains, or 1000-3000 people if located in hilly areas. Development Lok Sabha MPs can choose a village from their constituency, and Rajya Sabha MPs from the state from which they are elected. Nominated members can choose a village from any district of the country. MPs which represent urban constituencies can identify a village from a neighbouring rural constituency.

PRADHAN MANTRI JAN 11 DHAN YOJANA Department of Financial

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This financial inclusion campaign was launched by the Prime Minister NarendraModi on 28 August 2014to give financial services to weaker section of society. Page 13 of 29

SN Govt Scheme services, Ministry of Finance

Details 

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PRADHAN MANTRI SURAKSHA BIMA YOJANA

BETI BACHAO BETI PADHAO YOJANA This is a joint initiative of 13 Ministry of Women and Child Development, Ministry of Health and Family Welfare and Ministry of Human Resource Development.

ATAL PENSION SCHEME 14 Department of Financial services, Ministry of Finance

Launched on 9th May 2015

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Eligibility: Available to people in age group 18 to 70 years with bank account.

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Premium: Rs.12 per annum.

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Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.

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Risk Coverage: For accidental death and full disability – Rs.2 Lakh and for partial disability – Rs.1 Lakh.

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Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.

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(Launched on 22nd January 2015)-To generate awareness of welfare service meant for girl child and women.

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introduced to address the issue declining Child Sex Ratio (CSR)

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According to census data, the child sex Ratio (0–6 years) in India was 927 girls per 1,000 boys in 2001, which dropped drastically to 918 girls for every 1,000 boys in 2011. A 2012UNICEF report has ranked India 41st among 195 countries.

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This is being implemented through a national campaign and focussed multi sectoral action in 100 selected districts low in CSR, covering all States and UTs. This is a joint initiative of Ministry of Women and Child Development, Ministry of Health and Family Welfare and Ministry of Human Resource Development.

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(Launched on 9th May 2015)-for unorganised sector ‘s workers

12 Department of Financial services, Ministry of Finance

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme. Guinness World Records Recognises the Achievements made under PMJDY

In Atal Pension Yojana, for every contribution made to the pension fund, The Central Government would also cocontribute 50% of the total contribution or₹1,000 (US$15) per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years. The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be Page 14 of 29

SN Govt Scheme

Details 20 years or more. 

(Launched on 21st January 2015)-To develop heritage cities.

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With duration of 27 months (completing in March 2017) and a total outlay of INR 500 Crores, the Scheme is being implemented in 12 identified Cities namely, Ajmer, Amaravati, Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.

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The Scheme supports development of core heritage infrastructure projects which shall include revitalization of urban infrastructure for areas around heritage assets identified/approved by the Ministry of Culture, Government of India and State Governments.

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA

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(Launched on 9th May 2015)-Life insurance scheme by Government

Department of Financial services, Ministry of Finance

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Pradhan MantriJeevanJyotiBimaYojana is available to people between 18 and 50 years of age with bank accounts.

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(Launched on 8th April 2015) to provide up to INR 10 lakh to small entrepreneur.

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MUDRA Mission

HRIDAY (NATIONAL HERITAGE CITY DEVELOPMENT AND 15 AUGMENTATION YOJANA) SCHEME Ministry of Urban Development

16

MUDRA BANK YOJANA 17 Department of Banking, Ministry of Finance

KRISHI AMDANI BIMA 18 YOJANA

To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.

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Scheme for farmer

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To provide water to all field in the Country.

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Is a national mission to improve farm productivity and ensure better utilization of the resources in the country.

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(Launched on 25th September 2014)- To provide employment to youth residing in rural area.

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Demand led skill training at no cost to the rural poor

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Mandatory coverage of socially disadvantaged groups (SC/ST 50%; Minority 15%; Women 33%)

Ministry of Agriculture PRADHAN MANTRI GRAM 19 SINCHAI YOJANA Ministry of Agriculture 20

DEEN DAYAL UPADHYAYA GRAMEEN KAUSHALYA 21 YOJANA Ministry of Rural Development

Page 15 of 29

SN Govt Scheme DEENDAYAL UPADHYAYA GRAM JYOTI YOJANA

Details

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It is a Government of India programme aimed at providing 24x7 uninterrupted power supply to all homes in rural India

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Mahatma Gandhi PravasiSurakshaYojana is a special social security scheme which includes Pension and Life Insurance, introduced by Ministry of Overseas Indian Affairs for the overseas Indian workers in possession of Emigration Check Required (ECR) passports.

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It is a voluntary scheme designed to help workers to meet their three financial needs: saving for retirement, saving for their return and resettlement, and providing free life insurance offering coverage for death from natural causes.

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(Launched on 25th December 2014)

22 Ministry of Power 2015

MAHATMA GANDHI PRAVASI SURAKSHA YOJANA 23 Ministry of Overseas Indian Affairs

The Mission Indradhanush, depicting seven colours of the rainbow, targets to immunize all children against seven vaccine preventable diseases, namely: INDRADANUSH SCHEME 24 Ministry of Health and Family Welfare

1. 2. 3. 4. 5. 6. 7.

Diphtheria Pertussis (Whooping Cough) Tetanus Tuberculosis Polio Hepatitis B Measles.

In addition to this, vaccines for Japanese Encephalitis (JE) and Haemophilus influenzae type B (HIB) are also being provided in selected states.

SOIL HEALTH CARD SCHEME Department of Agriculture, 25 Cooperation and Farmer’s Welfare (Ministry of Agriculture)

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Soil Health Card Scheme is a scheme launched by the Government of India in February 2015.

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Under the scheme, the government plans to issue soil cards to farmers which will carry crop-wise recommendations of nutrients and fertilisers required for the individual farms to help farmers to improve productivity through judicious use of inputs.

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All soil samples are to be tested in various soil testing labs across the country.

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Thereafter the experts will analyse the strength and weaknesses (micro-nutrients deficiency) of the soil and suggest measures to deal with it.

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The result and suggestion will be displayed in the cards.

Page 16 of 29

SN Govt Scheme

Details The government plans to issue the cards to 14 crore farmers

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The main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.

Overall targets

UJJALA 26

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 Overall target of number of incandescent bulbs to be replaced - 200 UnnatJyoti by Affordable LEDs million for All  Expected overall annual energy savings - 10.5 billion KWh Ministry of Power  Expected reduction of load - 5000 MW  Expected annual cost reduction of consumer bills - Rs. 40,000 crore  Annual estimated greenhouse gas emission reductions - 79 million tonnes of CO2



Udaan is a Special Industry Initiative for Jammu & Kashmir in the nature of partnership between the corporates of India and Ministry of Home Affairs and implemented by National Skill Development Corporation. The programme aims to provide skills training and enhance the employability of unemployed youth of J&K. The Scheme covers graduates, post graduates UDAAN SCHEME and three year engineering diploma holders. It has two 27 Ministry of Skill Development objectives: and Entrepreneurship  (i) To provide an exposure to the unemployed graduates to the best of Corporate India; 

(ii) To provide Corporate India, an exposure to the rich talent pool available in the State. 

This Is the latest scheme launched By PM NarendraModi

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National RU URBAN Mission Was Launched In Chhattisgarh

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The Mission also dubbed as Shyama Prasad Mukherjee Rurbanmission (SPMRM) aims to spur social, economic and infrastructure development in rural areas by developing a cluster of 300 Smart Villages over the next 3 years across the country.

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The Mission aims at development of rural growth clusters which have latent potential for growth, in all States and UTs, which would trigger overall development in the region.

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These clusters would be developed by provisioning of economic activities, developing skills & local entrepreneurship and providing infrastructure amenities.

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The Rurban Mission will thus develop a cluster of Smart Villages.

NATIONAL RU URBAN MISSION SHYAMA PRASAD 28 MUKHERJI RURBAN MISSION Ministry of Rural Development

Page 17 of 29

SN Govt Scheme PANDIT DEENDAYAL UPADHYAY SHRAMEV 29 JAYATE KARYAKRAM

Details 

(Launched on 16th October 2014)



Unified Labour Portal (ShramSuvidha) and a Transparent & Accountable Labour Inspection Scheme to facilitate ease of compliance especially for four Central Government Organisations i.e. ESIC, EPFO, DGMS and CLC.

Union Labour Ministry KISAN VIKAS PATRA

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(Relaunched in 2014) – Saving Certificate Scheme

30 Ministry of finance 

Atal Mission for Rejuvenation and Urban Development (earlier name JNNURM)

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The scheme was launched by Prime Minister NarendraModi in June 2015 with the focus of the urban renewal projects is to establish infrastructure that could ensure adequate robust sewerage networks and water supply for urban transformation. Rajasthan was the first state in the country to submit State Annual Action Plan under Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

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Pilgrimage Rejuvenation and Spiritual Augmentation-To improve the infrastructure at pilgrimage places.

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The Union Cabinet has approved Pradhan MantriFasalBimaYojana

PRADHAN MANTRI FASAL BIMA YOJANA

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It is a new crop insurance scheme to boost farming sector in the country.

Ministry of Agriculture

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It is farmers’ welfare scheme

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The scheme aims to reduce the premium burden on farmers and ensure early settlement of crop insurance claim for the full insured sum.

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The Union Cabinet as given its approval for establishment of Atal Innovation Mission (AIM) and Self Employment and Talent Utilisation (SETU) in NITI Aayog.

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This move seeks to give substantial boost to the innovation ecosystem and to catalyse the entrepreneurial spirit in the country.

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AIM and AIM Directorate will be established that will help in implementation of mission activities in a focussed manner.

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Its headquarters will be in New Delhi.

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NITI Aayog will hire Mission Director and other appropriate manpower. Mission High Level Committee (MHLC) will guide the Mission.

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It will take all decisions related to approval of requisite Page 18 of 29

AMRUT 31 Ministry of Urban Development

PRASAD 32 Ministry of Tourism

33

ATAL INNOVATION MISSION 34 AND SETU IN NITI AAYOG PMO

SN Govt Scheme

Details guidelines and implementation of various elements of AIM and SETU. 

PAHAL Union Petroleum and Natural

PratyakshaHastaantaritLaabh (PAHAL) scheme has been acknowledged as the world’s largest cash transfer programme (households) by the Guinness Book of World Records. PratyakshaHastaantaritLaabh (PAHAL) scheme The scheme was formally launched as Direct Benefit Transfer Scheme for LPG subsidy in 2013 in 291 districts

35 Gas Ministry

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SAHAJ

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Union Petroleum and Natural Gas Ministry

For online release of new LPG connections for the consumers as parts of its consumer friendly initiative.

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SAHAJ facility will enable the customers to post online request for a new connection by filing Know Your Customer (KYC) form by uploading bank account details and photographs.

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For empowering minorities. Aim to address educational and livelihood needs of minority communities in general and Muslims in particular, which lags behind in terms of educational attainments than the other minority communities.

36

NAI MANZIL

37 Ministry ofMinority Affairs

Make in India focuses on the following 25 sectors of the economy:                    

Automobiles Automobile Components Aviation Biotechnology Chemicals Construction Defence manufacturing Electrical Machinery Electronic systems Food Processing Information Technology and Business process management Leather Media and Entertainment Mining Oil and Gas Pharmaceuticals Ports and Shipping Railways Renewable Energy Roads and Highways Page 19 of 29

    

Space and astronomy Textiles and Garments Thermal Power Tourism and Hospitality Wellness

100% FDI is permitted in all the above sectors, except for space (74%),defence (49%) and news media (26%).

Mobile Apps KisanSuvidha and PusaKrishi launched:Ministry of Agriculture & Farmers Welfare has launched two mobile apps called KisanSuvidha and PusaKrishi for benefit of farmers and all other stake holders. RashtriyaKrishiVikasYojana (राष्ट्रीयकृषिषिकासयोजना) is a special Additional Central Assistance Scheme which was launched in August 2007 to orient agricultural development strategies, to reaffirm its commitment to achieve 4 per cent annual growth in the agricultural sector during the 11th plan. The scheme was launched to incentivize the States to provide additional resources in their State Plans over and above their baseline expenditure to bridge critical gaps.

The RKVY covers all sectors such as Crop Cultivation, Horticulture, Animal Husbandry and Fisheries, Dairy Development, Agricultural Research and Education, Forestry and Wildlife, Plantation and Agricultural Marketing, Food Storage and Warehousing, Soil and Water Conservation, Agricultural Financial Institutions, other Agricultural Programmes and Cooperation. PRADHAN MANTRI KRISHI SINCHAYEE YOJANA (PMKSY) PMKSY will have following programme components: A. Accelerated Irrigation Benefit Programme (AIBP).To focus on faster completion of ongoing Major and Medium Irrigation including National Projects. B. PMKSY (HarKhetkoPani) 1. Creation of new water sources through Minor Irrigation (both surface and ground water) 2. Repair, restoration and renovation of water bodies; strengthening carrying capacity of traditional water sources, construction rain water harvesting structures (Jal Sanchay); 3. Creating and rejuvenating traditional water storage systems like Jal Mandir (Gujarat); Khatri, Kuhl (H.P.); Zabo (Nagaland); Eri, Ooranis (T.N.); Dongs (Assam); Katas, Bandhas (Odisha and M.P.) etc. at feasible locations. C. PMKSY (Per Drop More Crop) 1. Programme management, preparation of State/District Irrigation Plan, approval of annual action plan, Monitoring etc. 2. Promoting efficient water conveyance and precision water application devices like drips, sprinklers, pivots, rain-guns in the farm (Jal Sinchan); Page 20 of 29

3. Information Communication Technology (ICT) interventions through NeGP-A to be made use in the field of water use efficiency, precision irrigation technologies, on farm water management, crop alignment etc. and also to do intensive monitoring of the Scheme. D. PMKSY (Watershed Development) 1. Effective management of runoff water and improved soil & moisture conservation activities such as ridge area treatment, drainage line treatment, rain water harvesting, in-situ moisture conservation and other allied activities on watershed basis. 2. Converging with MGNREGS for creation of water source to full potential in identified backward rain fed blocks including renovation of traditional water bodies E- National Agriculture market Launched       

NAM is envisaged as a pan-India electronic trading portal Seeks to network the existing APMC and other market yards to create a unified national market for agricultural commodities. Not a parallel market but a network of physical mandis which can be accessed online – a virtual mandi of mandis Enable the buyers / sellers situated within and outside the State to participate in trading at the local mandis. Provide end-to-end solutions to all sellers and buyers: grading, price discovery, payment, transportation and delivery. Rationalize transaction costs, reduction of wastage, provide higher return to farmers, better quality to consumers. Real time accurate information sharing with all stakeholders - win-win situation for all stakeholders.

NAM is to be implemented by Small Farmers' Agri-Business Consortium (SFAC) with the help of M/s Nagarjuna Fertilizers and Chemicals Limited in consortium with Techno Brain Global FZE, Selected as Strategic Partner through e-procurement Process Broad Features of Scheme      

Department of Agriculture, Cooperation & Farmers Welfare (DAC & FW) would be sharing

the software free of cost with the state/mandi DAC & FW is providing one-time grant to mandis for purchase of hardware and assaying equipment up to an amount of INR 30 lakhs Strategic Partner (SP) would provide free training, handholding, and trouble shooting for one year to mandis (SP to be paid by SFAC as per milestones) SP to upgrade and maintain the platform for 5 years (as per the provisions of concession agreement) NAM will initially be rolled out in 585 selected mandis in States by 2017-18. NAM to be rolled out on demand in States who have fulfilled the following reforms in their agricultural produce market committee (APMC) Act. Page 21 of 29

► Single license to be valid across the state ► Single point levy of market fee

Awards: Pakke Tiger Reserve in East Kameng district of Arunachal Pradesh has won the ‘India Biodiversity Award 2016’. The tiger reserve was selected in the conservation of threatened species category for its Hornbill Nest Adoption Programme. Bioengineer Frances Arnold from United States (US) has won the prestigious 2016 Millennium Technology Prize. With this she becomes first female to be awarded with this prestigious biennial award in its 12-year history. South Korean author, Han Kang, has won the 2016 Man Booker International Prize for her novel ‘The Vegetarian’. With this Han becomes the first South Korean to win this prestigious literary prize. The writer and her British translator Deborah Smith will share the 72,000 dollars prize money. Han’s novel ‘The Vegetarian’ tells a story of a wife (Yeong-Hye lead character) who decides to become a vegetarian. Former ISRO Chairman and space scientist Prof Udupi Ramachandra Rao became the first Indian to be given ‘Hall of Fame’ Award by the International Astronautical Federation (IAF). Pakistani women’s rights activist from Swat Valley Tabassum Adnan has won prestigious 2016 Nelson Mandela GraçaMachel Innovation Award. With this Tabassum Adnan becomes the second woman from Pakistan’s Swat Valley to win this international recognition after Nobel laureate Malala Yousafzai. Dogri Poetess and novelist Padma Sachdev (76) has been chosen for the prestigious SaraswatiSamman for the year 2015. She has been chosen for her autobiography ‘ChittChete’ written in Dogri language and published in 2007. Mother Teresa has been posthumously conferred with the United Kingdom’s prestigious Founders Award 2016. Teresa’s only living relative AgiBojazhiu (niece) collected the award on her behalf. British mathematician Andrew Wiles (62) was named as the winner of the prestigious 2016 Abel Prize. He was selected by the Norwegian Academy of Sciences and Letters for solving a centuries old hypothesis (equation), Fermat’s Last Theorem. Veteran film actor and director Manoj Kumar has been selected for the prestigious 47th DadasahebPhalke Award for the year 2015. Hyderabad-based GVK Biosciences (GVK BIO) has been awarded prestigious Global CSR Excellence & Leadership Award. The company was bestowed with this award in the category of Best Environment Friendly Project for its ambitious Go Green, Grow Green Page 22 of 29

plantation drive under its Corporate Social Responsibility (CSR) initiative. Karnataka’s flagship mobile-one governance application has won gold medal at the fourth World Government Summit in Dubai, UAE in the m-governance awards category.

Sarangi maestro Pandit Ram Narayan (88) has been chosen for the prestigious Bharat RatnaPanditBhimsen Joshi Classical Music Award for 2015-2016. Madhya Pradesh has been conferred the Union Government’s prestigious Krishi Karman Award in maximum food grains production category for year 2014-15 for the 4th consecutive year. The Employees’ Provident Fund Organisation (EPFO) has won the National Award on eGovernance 2015-16 for launching the Universal Account Number (UAN). The Employees’ Provident Fund Organisation (EPFO) has been awarded SKOCH Award for Smart Governance. It has been bestowed with this award for its initiatives on UAN Programme and Transformation of Social Security Agenda in India. It is the 5th Award won by EPFO in the last two years for its initiatives for the welfare of various stakeholders. Universal Account Number (UAN) The roadmap for implementing the UAN programme has been prepared by Centre for Development of Advanced Computing (C-DAC). Purpose: Facilitates workers in organized sector to transfer their provident fund deposits while switching jobs anywhere in India easily. The UAN would be one account number which would be allotted to a subscriber for various schemes run by the EPFO for his or her entire service period with different employers. Reserve Bank of India (RBI) Governor RaghuramRajan has been conferred with the Central Banker of the Year Award (Global and Asia Pacific) for year 2016. Eminent Gujarati litterateur Raghuveer Chaudhary has been selected for the 51st Jnanpith award. Mr. Chaudhary is the fourth Gujarati litterateur to bag this prestigious award after Uma Shankar Joshi (1967), Pannalal Patel (1985) and Rajendra Shah (2001). Syrian woman journalist ZainaErhaim has won the prestigious 2015 Reporters without Borders Prize for her defence of press freedom. The United Nations High Commissioner for Refugees (UNHCR) has been chosen for the prestigious 2015 Indira Gandhi Prize for Peace, Disarmament and Development. About United Nations High Commissioner for Refugees UNHCR is a United Nations agency mandated to protect and support refugees. It is a member of the United Nations Development Group. Established: December 14, 1950. Headquarters: Geneva, Switzerland. Initially it was established to help people displaced by World War II. But later it became the principal agency that has helped displaced persons all over world. Mission: Page 23 of 29

Safeguard the rights and well-being of refugees. Seek lasting solutions to the plights of refugees. Awards: It has won two Nobel Peace Prizes, first in 1954 and second in 1981. All India Radio’s (AIR’s) Programme on child labour titled NilkkamIvarkkoppam has won the first prize at the 2015 Asia-Pacific Broadcasting Union (ABU) Prize ceremony. Jamaican author Marlon James has won the prestigious 2015 Man Booker Prize for his novel A Brief History of Seven Killings. With this, he became first Jamaican to win Man Booker Prize. Microeconomist Angus Deaton has won the prestigious 2015 Nobel Memorial Prize in Economic Sciences. Royal Swedish Academy of Sciences has selected him for his analysis of consumption, poverty, and welfare. National Dialogue Quartet (NDQ) in Tunisia has won prestigious 2015 Nobel Peace Prize. Norwegian Nobel Committee has selected NDQ for its decisive contribution in building pluralistic democracy in Tunisia in the wake of the 2011 Jasmine Revolution. About Jasmine Revolution: It was an intensive campaign of civil resistance including a series of street demonstrations against the long authoritarian rule of President Zine El Abidine Ben Ali. Author Svetlana Alexievich of Belarus has been selected for prestigious 2015 Nobel Prize in Literature. The Swedish Academy has selected Svetlana for her polyphonic writings, courage and a monument to suffering. Tomas Lindahl (United Kingdom), Paul Modrich (US) and Aziz Sancar (US) have jointly won 2015 Nobel Prize in Chemistry. Royal Swedish Academy of Sciences has chosen them for their research on mechanistic studies of DNA (deoxyribonucleic acid) repair. Their work has provided fundamental knowledge of functioning of living cell functions and its application for the development of new cancer treatments. TakaakiKajita (Japan) and Arthur B. McDonald (Canada) have jointly won the prestigious 2015 Nobel Prize in Physics. The Royal Swedish Academy of Sciences has selected them for their key contributions to experiments showing that neutrinos change identities. They individally have discovered neutrino oscillations and shown that neutrinos have mass. Three scientists YouyouTu (China), Satoshi Omura (Japan) and William Campbell (Ireland) have won 2015 Nobel Prize for Physiology or Medicine. They have been chosen for their pioneering discoveries which have led to the development of potent new drugs against parasitic diseases such as malaria and elephantiasis. The laureates will receive their prizes on December 10, 2015 at a formal ceremony in Stockholm, Sweden marking the anniversary of the death of prize creator Alfred Nobel.

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Bangladesh Prime Minister Sheikh Hasina has been selected for the United Nations Champions of the Earth award. UN Environment Programme (UNEP) has chosen her for this prestigious award in recognition of her country’s initiatives to address climate change. UNEP has noted Bangladesh as one of the most vulnerable to the impacts of climate change. In recent years natural disasters like cyclones, floods and droughts have intensified in the country due to climate change. President Pranab Mukherjee conferred the Gandhi Peace Prize for the year 2014 on Indian Space Research Organization (ISRO). ISRO Chairman A S Kiran Kumar on behalf of the organisation received the prize at a function held at RashtrapatiBhavan in New Delhi. Krishnapatnam Port in Andhra Pradesh has been awarded Golden Peacock environment management award for its achievements and initiatives in the field of environment. Fazle Hasan Abed of Bangladesh has been named as the winner of the 2015 World Food Prize. He is founder and chairman of Bangladesh-based non-governmental organisation (NGO) BRAC (originally known as Bangladesh Rural Advancement Committee) which is world’s largest NGO. Nadia district in West Bengal has won the United Nations Public Service Award 2015 in the category of improving delivery of public services for or eliminating open defecation in the district. The award was presented by the acting Secretary General of the UN LenniMontiel to District Magistrate of Nadia and Sabhapati of Nadia ZillaParishad in Medellin, Colombia. Former Prime Minister Atal Bihari Vajpayee will be conferred with Friends of Bangladesh Liberation War Award by Bangladesh government. He will be bestowed this award for his outstanding support for the Bangladesh’s independence from Pakistan in 1971 when he was a member of Lok Sabha. Hungarian writer Laszlo Krasznahorkai has won the prestigious Man Booker International Prize for 2015. Two Indians, Dr. PramodPatil and Dr Ananda Kumar have been awarded with the prestigious 2015 Whitley Awards for their contribution to wildlife conservation in developing countries. BharatiyaMahila Bank (BMB) has won The Asian Banker Achievement Award 2015. The award was presented to the BMB in the Technology Implementation category of Best Outsourcing Project (New Bank). UshaAnanthasubramanian, Chairman and Managing Director of BMB received the award at a function held in Hong Kong as a part of The Asian Banker Summit 2015. 50th Jnanpith Award was conferred on eminent Marathi litterateur BhalchandraNemade on 25 April 2015. Page 25 of 29

All the Light We Cannot See, a novel based on Second World War by author Anthony Doerr has won the Pulitzer Prize for fiction. While, The New York Times has won two prestigious Pulitzer prizes for coverage of the Ebola outbreak in West Africa. Delhi International Airport Limited (DIAL) has won the prestigious Golden Peacock National Quality Award for the year 2015. DIAL was bestowed this award for their efforts in building a culture of Total Quality across Indira Gandhi International (IGI) Airport. Eminent freedom fighter and educationist Madan Mohan Malviya was conferred with Bharat Ratna (posthumously), highest civilian award of the country. Veteran actor and film producer Shashi Kapoor has been named for the prestigious Dada SahebPhalke Award 2014. He is the 46th film personality to receive this honour. Renowned water conservationist and environment activist Rajendra Singh has been conferred with 2015 Stockholm Water Prize. He was awarded this prize for his innovative water restoration efforts and consistent attempts to improve the water security in villages in India. Senior Congress leader and Former Union Minister Mr. M. VeerappaMoily will receive the SaraswatiSamman 2014 for his Kannada poem ‘Ramayana Mahanveshanam’.

Bhuvan, (lit: Earth), is a software application which allows users to explore a 2D/3D representation of the surface of the Earth. The browser is specifically tailored to view India, offering the highest resolution in this region and providing content in four local languages. A beta versionwas launched on 12 August 2009. Apart from visualization Bhuvan provides timely disaster support services (domestic and international), free satellite data and a products download facility, and rich thematic datasets. Bhuvan is using a crowd sourcing approach to enrich its maps and collect point of interest data. It also acts as a platform for hosting government data (example - Karnataka Forest Department datasets). National Institute of Animal Welfare (NIAW) in Ballabhgarh (Haryana). The decision to establish the Institute was based on recognition of the need to promote awareness and disseminate information about animal welfare amongst the public. National Institute of Wind Energy (NIWE)has been established in Chennai in the year 1998, as an autonomous R&D institution by the Ministryof New and Renewable Energy (MNRE), Government of India. It is a knowledge-based institution of high quality and dedication, offers services and seeks to find complete solutions for the kinds of difficulties and improvements in the entire spectrum of the wind energy sector by carrying out further Page 26 of 29

research. It has a Wind Turbine Test Station (WTTS) at Kayathar with the technical & partial financial support by DANIDA, Govt. of Denmark. {The Danish International Development Agency (DANIDA) is the section of the Danish Ministry of Foreign Affairs dedicated to providing aid and financing pro-development activities in developing countries worldwide.} National Institute of Solar Energy, an autonomous institution of Ministry of New and Renewable (MNRE), is the apex national R&D institution in the field solar energy. The National Institute of Solar Energy is located on Gurgaon-Faridabad road, about 8 km from central Gurgaon. The Government of India has converted 25 year old Solar Energy Centre (SEC) under MNRE to an autonomous institution in September, 2013 to assist the Ministry in implementing the National Solar Mission and to coordinate research, technology, skill development, training, consultancy, incubation and other related works.

Bioremediation Is a waste management technique that involves the use of organisms to remove or neutralize pollutants from a contaminated site.According to the EPA, bioremediation is a “treatment that uses naturally occurring organisms to break down hazardous substances into less toxic or non-toxic substances”. Technologies can be generally classified as in situ or ex situ. Some examples of bioremediation related technologiesare phytoremediation, bioventing, bioleaching, landfarming, bioreactor,compost ing, bioaugmentation, rhizofiltration, and biostimulation.

What are the common air pollutants around?

1. Carbon Monoxide (CO) Fuel combustion from vehicles and engines. Reduces the amount of oxygen reaching the body’s organs and tissues; aggravates heart disease, resulting in chest pain and other symptoms. ► 2. Ground-level Ozone (O3) Secondary pollutant formed by chemical reaction of volatile organic compounds (VOCs) and NOx in the presence of sunlight. Decreases lung function and causes respiratory symptoms, such as coughing and shortness of breath, and also makes asthma and other lung diseases get worse. ► 3. Lead (Pb) Smelters (metal refineries) and other metal industries; combustion of leaded gasoline in piston engine aircraft; waste incinerators (waste burners), and battery manufacturing. Damages the developing nervous system, resulting in IQ loss and impacts on learning, memory, and behaviour in children. Cardiovascular and renal effects in adults and early effects related to anaemia. Page 27 of 29

► 4. Nitrogen Dioxide (NO2) Fuel combustion (electric utilities, big industrial boilers, vehicles) and wood burning. Worsens lung diseases leading to respiratory problems, increased susceptibility to respiratory infection. ► 5. Particulate Matter (PM) This is formed through chemical reactions, fuel combustion (e.g., burning coal, wood, diesel), industrial processes, farming (ploughing, field burning), and unpaved roads or during road constructions. Short-term exposures can worsen heart or lung diseases and cause respiratory problems. Long-term exposures can cause heart or lung disease and sometimes premature deaths. ► 6. Sulfur Dioxide (SO2) SO2 comes from fuel combustion (especially high-sulphur coal); electric utilities and industrial processes as well as natural occurrences like volcanoes. Aggravates asthma and makes breathing difficult. It also contributes to particle formation with associated health effects. What are the effects of air pollution? Acidification: Chemical reactions involving air pollutants can create acidic compounds which can cause harm to vegetation and buildings. Sometimes, when an air pollutant, such as sulphuric acid combines with the water droplets that make up clouds, the water droplets become acidic, forming acid rain. When acid rain falls over an area, it can harm trees and kill animals, fish, and other wildlife. Acid rain destroys the leaves of plants.

When acid rain infiltrates into soils, it changes the chemistry of the soil making it unfit for many living things that depend on the soil as a habitat or for nutrition. Acid rain also changes the chemistry of the lakes and streams that the rainwater flows into, harming fish and other aquatic life. Eutrophication: Rain can carry and deposit the Nitrogen in some pollutants on rivers and soils. This will adversely affect the nutrients in the soil and water bodies. This can result in algae growth in lakes and water bodies, and make conditions for other living organism harmful. Ground-level ozone: Chemical reactions involving air pollutants create a poisonous gas ozone (O3). Gas Ozone can affect people’s health and can damage vegetation types and some animal life too. Particulate matter: Air pollutants can be in the form of particulate matter which can be very harmful to our health. The Page 28 of 29

level of effect usually depends on the length of time of exposure, as well the kind and concentration of chemicals and particles exposed to. Short-term effects include irritation to the eyes, nose and throat, and upper respiratory infections such as bronchitis and pneumonia. Others include headaches, nausea, and allergic reactions. Short-term air pollution can aggravate the medical conditions of individuals with asthma and emphysema. Long-term health effects can include chronic respiratory disease, lung cancer, heart disease, and even damage to the brain, nerves, liver, or kidneys. Continual exposure to air pollution affects the lungs of growing children and may aggravate or complicate medical conditions in the elderly. Air Quality Index In India, as in many other countries, the Index is centred around five chief pollutants – Particulate Matter with a diameter less than 10 micrometres (PM10), Particulate Matter with a diameter of less than 2.5 micrometers (PM2.5), ozone (O3), Nitrogen Dioxide (NO2), and Carbon Monoxide (CO). A monitoring station should be able to give you the concentration of a particular pollutant at that moment in time, and its average over a period of time – for CO and O3, the average is taken over eight hours, while for the other three, it is a 24-hour average. The unit of measurement is microgram (or milligram in the case of CO) per cubic meter.

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For

upli ing the rural sector of our country, the Ministry of Rural Development and the Government of India in coordina on with Department of Rural Development and Department of Land Resources have been carrying forward various schemes. These schemes are formulated to benefit the ci zens of rural India who will eventually become the pillars of Indian Economy in the long run. Some important schemes for Rural Development launched by Government of India are –

Pradhan Mantri Gram Sadak Yojana Launched on 25 December 2000 by then Prime Minister Atal Bihari Vajpayee, the scheme aims at enhancing rural road connec vity. This scheme provides connec vity to the habita ons with less or no connec vity at all and helps in poverty reduc on by promo ng access to economic and social services. This ensures sustainable poverty reduc on in the long run as people get an opportunity to get connected with the rest of the world. The scheme has been benefi ng several villagers and is helping them lead be er lives. Nearly 82% of roads have been built ll December 2017 which have successfully connected several rural areas to ci es. Remaining 47,000 habita ons will also get connected by allweather roads by March 2019. Earlier, the scheme was funded only by the central government but a er the recommenda on of 14th Finance Commission report the expense is shared by both state and central government.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana Deen Dayal Upadhyaya Grameen Kaushalya Yojana, a part of Na onal Livelihood Mission, has the objec ves of catering to the career aspira ons of the rural youth and adding diversity to the income of rural families. Launched on 25th September 2014, the scheme’s prime focus is on the rural youth of poor families aged between 15 and 35. An amount of Rs 1500 crores has been provided for the scheme which will help in enhancing employability. The yojana is present in 21 States and Union Territories across 568 districts and 6215 blocks changing the lives of youth. Around 690 projects are being implemented by 300 partners. As per the government reports, over 2.7 lakh candidates have been trained ll now and nearly 1.34 lakh candidates have been placed in jobs.

Swarnjayan Gram Swarozgar Yojana (SGSY)/ Na onal Rural Livelihood Mission Swarnjayan Gram Swarozgar Yojana which is redesigned as Na onal Rural Livelihood Mission was launched in 2011. Also known as Ajeevika, this scheme aims at empowering women self-help model across the country. Under this scheme, the government provides a loan of 3 lakh rupees at an interest rate of 7% which can be reduced to 4% at the me of repayment. The scheme was aided by World Bank and aimed at crea ng efficient and also effec ve ins tu onal pla orms for poor people. It also helped in increasing the household income by improving access to financial services. NRLM also helps in harnessing the capabili es of the poor so that they can par cipate in the growth of the economy of the country.

Prime Minister Rural Development Fellows Scheme The Prime Minister Rural Development Fellowship (PMRDF) is a scheme ini ated by the Ministry of Rural Development, implemented in collabora on with State Governments. It has dual goals of providing short-term support to the district administra on in the underdeveloped and remote areas of the country and develop competent and commi ed leaders and facilitators who can serve as a resource for a longterm.

Na onal Rural Employment Guarantee Act (NREGA) As per the Na onal Rural Employment Guarantee Act (NREGA) of 2005, 100 days of employment is guaranteed to any rural household adult who is willing to do unskilled manual work in a financial year. The Act addresses the working people and their fundamental right to live life with dignity. If a person does not get a job within 15 days, he is eligible for ge ng unemployment allowance. Na onal Rural Employment Guarantee Act (NREGA) also highlights the importance of basic right to work. Amendments have been introduced to this act to minimise corrup on in the scheme.

Sampoorna Grameen Rozgar Yojana (SGRY) The Sampoorna Grameen Rozgar Yojana (SGRY) was launched in 2001 to provide employment to the poor.

It also aimed at providing food to people in areas who live below the poverty line and improving their nutri onal levels. Other objec ves of this Yojana were to provide social and economic assets to the people living in rural areas. The scheme did not include the employment of contractors or middlemen.

Sarv Siksha Abhiyan Pioneered by former Prime Minister Atal Bihari Bajpayee, the Sarv Siksha Abhiyan was launched in 2000. It is an a empt to provide an opportunity to all children between 6 and 14 years of age to get free educa on which is also a basic fundamental right. The state and the central government share the expenses of this project.

Sansad Adarsh Gram Yojana (SAGY) Sansad Adarsh Gram Yojana (SAGY) is a rural development project launched in 2014 by the Government of India in which each Member of Parliament will take the responsibility of three villages and look a er the personal, human, social, environmental and economic development of the villages. This would substan ally improve the standard of living as well as the quality of life in the villages. No fundings have been provided to this project as fundings can be raised through exis ng schemes.

Na onal Social Assistance Programme Na onal Social Assistance Programme signifies the fulfilment of Direc ve Principles in Ar cle 41 and 42 of the cons tu on which states that it is the duty of the state to provide assistance to the ci zens in terms of sickness, unemployment, old age in limits of the economic capabili es. It is basically a centrally sponsored scheme of Government of India which provides financial help to widows, elderly, people with disability in form of pensions. The scheme was launched on August 15 in 1995.

Pradhan Mantri Awaas Yojana (Gramin)/ Indira Awas Yojana Indira Awas Yojana revamped as Pradhan Mantri Gramin Awaas Yojana in 2016 is a welfare programme created by the Indian Government to provide housing to rural poor people in India. The goal of this scheme is to provide home to all ci zens ll 2022. The cost of construc ng the houses will be shared by the centre and the state. The scheme has been implemented in rural areas throughout India, except in Delhi and Chandigarh. Houses developed under this scheme will have basic ameni es such as toilet, electricity connec on, drinking water connec on, LPG connec on etc. The alloted houses will be jointly under the name of husband and wife.

Antyodaya Anna Yojana (AAY)

Launched by the former Prime Minister Atal Bihari Vajpayee in 2000, the Antyodaya Anna Yojana aimed at providing food grains to around 2 crore people at subsidised rates. As per the scheme Below Poverty Line (BPL) families were provided 35 kgs of food grains. Rice was provided at the rate of Rs 3/kg and wheat at the rate of Rs 2/kg. The scheme was first launched in Rajasthan but has now been implemented in all Indian states.

Provision of Urban Ameni es In Rural Areas (PURA) PURA is a strategy for Rural Development in India which was proposed by former President APJ Abdul Kalam in his book Target 3 billion. PURA proposes that urban infrastructure and services should be provided in rural areas to create opportuni es outside the ci es. This will also prevent the migra on of youth from the rural areas to urban areas. The Central Government has been running PURA programs in various states since its launch in 2004.