Himachal Pradesh Rural Development

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Rural Development in Himchal Pradesh


Himachal Pradesh can be classified into two distinctive zones on cultural grounds. The first one is inhabited by tribes or semi-nomadic, semi-agricultural and semi-
pastoral people living in the great Himalayas. The districts of Lahaul and Spiti, Kinnaur, Upper Shimla, Upper Kullu, remote areas of Sirmaur, Chamba and
Kangra districts fall in this zone. The people of these areas are an admixture of the Indo-Aryan or Mongolian stock. These are Kinnaures, Lahules, Gaddis, Gujars,
Lambas, Khampas, Bhots, Pangwalas and Swanglas.

The other zone consists of the outer Himalaya or the Shivalik and mid-Himalaya. The people of this zone have much in common with the people of the plains of Punjab and Haryana. The caste patterns, value systems and traditions are also similar to those of Punjab and Haryana. The main caste groups in Himachal Pradesh
are Rajputs, Brahmins, Kanets, Kulindas, Girths, Raos, Rathis, Thakurs, Kolis, Holis, Chamars, Darains, Rehars, Chanals, Lohars, Baris, Dagis, Dhakhis, Turis,
Batwals and some groups like Jats, Lubanas, Sainis, Nais, Jhiwars, Chimpas, etc. The tribals can be categoriesed as Gaddis, Gujars and Bhots. These castes
are further classified as general castes, the Scheduled Castes, Other Backward Castes and the Scheduled Tribes.

The rural society of Himachal Pradesh has its own identity and psyche regarding traditions, culture and heritage. Therefore, within the overall rural development strategies, there has to be an explicit recognition of its identity. At the time ofits formation in 1971, Himachal Pradesh was an economically backward rural state (93
per cent rural population in 1971). Its rural population was deprived of basic amenities such as health, education and drinking water. Rural infrastructure, i.e.,
rural roads, electricity, housing, transport, banking and market network, was also very poor. Almost half the rural households were living below the poverty line.

To accelerate the pace of economic development and significantly improve the standard and quality of living of rural people, the government of Himachal Pradesh
took bold steps to improve their socio-economic condition. The government incorporated new policy initiatives and programmes in its budgets. New
strategies were evolved to;

a) Raise farm productivity
b) Create the much needed rural infrastructure
c) Empower families below the poverty line by
enlarging the scope of the programmes of poverty
alleviation and welfare of women, the Scheduled
Castes and Scheduled Tribes
d) Expand education and health facilities
e) Promote institutional finance
t) Upgrade technical skills
g) Strengthen rural institutions such as panchayats,
co-operatives and others.
Successful implementation of various plans made a
dent in rural poverty. Much improvement has taken
place in the provision of basic amenities and building
up rural infrastructure.
The government of Himachal Pradesh has chalked
out its planning strategies mostly on the lines followed
by the central government. The state government in its
document on the Tenth Five Year Plan (2002-07) and
the Annual Plan (2002-03) has strategically defined
areas, which need to be addressed and require the
highest attention. These areas are
– Improvement of financial position of the state
– Proper utilisation of its hydro-power generation
potential


‘ Breaking stagnation of agriculture and
horticulture
‘ Development of tourism
° Provision of safe drinking water
‘ Connectivity to all villages
~ Tackling the unemployment problem
~ Introduction of information technology in
educational and technological institutions
The contribution of Himachal Pradesh to India‘s Net
Domestic Product (NDP) in 2000»0l (at current prices)
was estimated at 0.62 per cent only. According to the
census of 2001, while nearly three-fourth of India‘s
population lived in villages, in Himachal Pradesh more
than four-fifths of the people live in rural areas. Almost
one-fourth of the state’s NDP comes from agriculture
and allied sectors. It shows the weak position of the
primary sector of the economy, since, a majority of the
population lives in the rural areas and depends on
agriculture. However, agriculture is of a subsistence
nature and is unable to shape the level of living of the
rural people. In this situation, the non-farm rural
sector, with its forward and backward linkages can
become an integral part of rural development in the
state. But it has not received much attention. As a
result, a sizeable number of the people of rural areas,
especially the youth, are migrating to urban centres,
inside and outside the state, in search of livelihood. To
stop the migration of the rural unemployed, it is
essential to create better socially acceptable employment
opportunities by developing non-farm activities in the
rural areas. To stop this trend, the basic facilities are
required to be utilised properly, wherever these exist,
and to be developed Where these are non-existent. There
is need for mobilising and involving the community in
the proper maintenance of the available facilities at the
local level under Panchayati Raj Institutions.
There is need for better co-ordination between
government departments, non-government organisations,
Panchayati Raj Institutions and private institutions to
eXplore better opportunities of employment. The
corporate sector can play a leading role by bringing in
resources, new technology, modern management and
extension services, which can create employment
opportunities in the non-farm sector by training them
for the required jobs. For example, Himachal Pradesh
was a land of some rare handicrafts, and these goods
were exported to overseas markets. In course of time,
handicrafts such as Pattus (sheep wool shawls), Thobis
(goat hair items), Kasida (embroidery goods) and silver
HIMACHAL PRADESH DEVELOPMENT REPORT
ornaments have almost vanished and the artisans have
abandoned this skill-based vocation. In the present era
of liberalisation, such distinctive works can be revived
through technical and managerial intervention. The
people can be trained in these indigenous skills
through modern techniques.
Keeping in view the development that has taken
place in the past plan periods, much more remains to
be done to improve the quality of life in the rural areas.
Himachal Pradesh, with 90.2 per cent of its population
in the rural areas, according to the 2001 census (Table
13.1), has a sizable deprived population consisting of
marginal farmers, landless labourers besides Scheduled
Castes, the Scheduled Tribes and other Backward
Castes. This component of the population has to be
brought into focus for uplift with special emphasis on
their skill upgradation, removal of unemployment and
vertical growth to acquire productive assets for better
living on a sustainable basis. Sector-wise allocation of
funds during different plan periods shows that the
main stress has been on social services, energy,
transport and agriculture (Table 13.2)
TABLE 13.1
Rural Urban Population in Himachal Pradesh
Year
Total Population Percentage qf
{in lakh) Total Population
Total
Rural
Urban
Rum
U/”ban
1971
198]
1991
2001
34.60
42.81
51.71
60.77
32.78
39.55
47.55
54.82
2.42
3.26
4.49
5.95
92.4
91.3
90.2
I
93.0
7.0
7.6
8.7
9.8
Sou/’09. Census of India.
For an integrated development of such a rural
economy, the development of physical as well as social
infrastructure has an important role as it directly
contributes to employment generation and asset creation.
A better network of physical infrastructure facilities
(well-built roads, rail links, irrigation, power and
telecommunications, information technology, market-
network, processing of horticulture and vegetables
produce, cold chain system and social infrastructure
support, viz, health and education, water and sanitation,
veterinary services and co-operatives) is essential for the
development of the rural economy. Tables 13.3, 13.4,
13.5 and 13.6 highlight inter-district disparities with
regard to some of the basic development indicators.
Himachal Pradesh has comparatively better rural
infrastructure facilities, such as cent per cent rural

Plan-wise Expenditure under Different Heads in Himachal Pradesh
TABLE 13.2
(Fifth Plan to Tenth Plan)
Chaplet 13 RURAL DEVELOPMENT 233
my m Iakh)
Fifth
1974—78
Annual
[978—79
A nnual
197980
Sixth Seventh
1 98085 1 98590
A rmmzl
1 990—91
Annual
[991—92
Eighth Ninth Tent/1*
I99Z—97 1 99 7—Z002 200207
Agriculture programme
Ciropernlion and
community development
Waier, irrigalion and power
lnduslry and mining
Transpnrl and Cnmmunicalion
Social scrviccs
Misc
Rural developmem
Irrigation and flood control
Spec area programme
Energy
Social and community services
SClB11\111C services and research
Economic services
General services
General economic services
Edu. spans. an and culture
1-Icalth
Water supply, housing urban
devclopmcnl and sanitation
lnformatlon and publlclly
Welfare of SCs/STs/OBCs
niimm and labour welfare
Social welfare
Total
16214.10
26.02
1.09
26.60
3.53
22 73
16.72
0.08
2.22
(100)
25.42
1
.57
21.42
3.43
24
21
0
1
( I
47
.69
.10
.89
00)
6810.17
27.47
1.87
22.68
3 28
21.40
20.82
0.06
2.42
(100)
1945.35
6647 1.40
15.81
3.08
I781
4.67
5.85
0.08
26 97
22.44
0.03
0.12
3.14
(I00)
19.63
3.22
14.78
371
5.39
26.55
0.07
2.13
1.80
7.41
3.28
10.61
0.25
0 42
0.08
0.66
mom
132474.75
18.43
2.93
13.37
3.46
6.55
18.04
0.10
2.08
3.98
10.20
3.90
13.63
0.27
0.35
0.12
2.58
(100)
37762 92
20.98
3.46
1494
3.81
6.39
12.92
0.21
1.88
4.41
I179
4.85
12.47
0.56
0.27
0.11
0 95
( 1 00)
40482.0()
13
2.
12.
3
4.
18.
0.
2.
91
47
56
34
24
89
14
40
7.39
13.00
4.65
14.91
2.
10
(mo)
34990
05
1163
1.47
14.10
40.68
3.92
4.02
0.25
16.03
0.09
1.62
6.18
(100)
789672 00
ll.
1.
15.
47.
4.
4.
I2
0.
1.
2.
67
02
90
51
03
40
21
06
03
17
( 1 00)
103 0000.00
Soum:. Five Year Plans and Annual Plans.
Smlixlmal A brlrads of Hlflillfhfll Pmdexvh. various
Nora: * 7 Plan outlay.
issues
TABLE 13.3
District-wise Selected Soei0—ec0n0mic1ndicators in Himaehal Pradesh
Dixtridx N0 of
Inhabired
Villager
6 I 993-96)
SC
%o/
Pupu.
(1991;
% 0;
sr
Pupil
(1991;
Sex Densuy nf
Rn/m mm.
(2001; %.-4. km.
(Z00!)
% A ge 0/
Mum
Wm“-
m mu:
Popu
(2 no 1)
Pal1i(I’pa!ion
Work
Rn/1:
(Z00!)
Rum
(Z001)
Rate
M111.» Wm Fannlz Work
Fnmdpalion Participation
(2001)
% A ge
Workax
Engugzrl
iiz Nun-
A gn”.
A tllvlllm‘
% Age
0/ BPL
Househuldi”
m Tam]
Houxeholds
(I 9 98—99)
Bilaspur
Chamba
Hamirpur
950
1144
1617
3620
228
I72
272
2818
2311
965
2348
Kangrn
Kinnaur
Kullu
Lahaul & Spiti
Mandl
Shimla
Sirmaur
Snlzm
Una 552
H .P. 16997
28.82
19.75
23.68
21.17
26.87
29.93
7.11
28.98
27.13
30.18
31.27
22.46
25.35
2.70
28.35
0.06
0.14
55.58
3 61
76.97
1.21
0.71
1.61
0.64
0 01
4.22
992
961
1102
1027
851
928
804
1014
898
901
853
997
971)
292
71
369
233
13
69
2
228
141
162
258
291
109
32.52
27.88
29.34
25.20
50.79
43.96
57.88
29.89
42.19
38.38
34.57
26 60
32.36
48.95
50.04
49 90
44.04
60.54
57.05
63.50
50.44
51 19
49.30
52.70
45.03
49.28
52.31
53.98
51 06
50.84
65.62
60.63
68.39
52.69
57 46
56 49
61.32
53.02
54.70
45.56
45.94
48 85
37.41
54.78
53.20
57.43
48.23
44 20
41.32
42.60
37.01
43.69
14.44
13.12
1418
16.01
18.85
12.11
28.78
13.07
16 81
12.73
22.63
16.74
26.63
61.72
24.17
24.07
26.57
19.00
37.93
24.73
33 67
22.89
27.44
19.06
27.59
Sauna” Stati.rncalAbs!raa 1;! Hmnuhal I”ra.’1c>”h. various issues.
Census of India, llimachal Pradesh. 2001.

234
TABLE 13.4
Distribution of Total Rural Workers (2001)
Dislrias
Cultivator Agricultural Worker in
Labour Household Industry
Other
Work er:
Bilaspur
Chzimba
Hamirpu
Kangra
Kinnaur
Kullu
Lahaul &
Mandi
Shimla
Sirmaur
Solaii
Una
1-1.1’.
71.67
76.88
r 73.29
59.15
66.67
80.58
Spiti 53.11
75.92
77.75
76.45
64.45
60.33
70.43
1.77
0.66
1.44
6.90
2.20
2.64
1.57
1.40
2.96
2.57
3.14
5.82
3.29
1.57
1.17
1.23
3.25
1.81
1.17
0.47
1.38
1.12
1.09
1.22
1.94
1.71
24 99
21.22
24.04
30.70
29.32
15.61
44.85
21.30
18.17
19.89
31.19
31.90
24.57
Sou/xv. Census 0/India. Hirnachal P/admh. 2001
TABLE 13.5
Percentage of Workers and Non-workers in
Total Population (2001)
Categories mat Mam Marginal
Workers Workers Workers
Non-
W orkcrs
Total 49.28 32.36 16.92
Male 54.70 43.30 11.40
Female 43.69 21.08 22.61
50.72
39.30
56.31
Source: Census 0/Indm. I[1marhuIPrudarh. Z170]
H1MACHAL PRADESH DEVELOPMENT REPORT
electrification, public distribution system and
households using separate kitchens (Table 13.7). However,
there are inter-district disparities in the accessibility of
basic facilities.
In the present economic situation, agriculture and
rural development, especially agriculture and allied
activities, are now poised for a paradigm shifi. The core
factors that can bring forth tangible transformation
are:
(a) Development of rural infrastructure, such as
roads, power and communications for generating
more employment opportunities at the local level
(b)
Development of village and cottage industries
and agrmprocessing industries
(c) Skill upgradation through research and
extension and information technology so that
the rural people especially the youth can design
means for their own betterment
(d) Minimising social differences through collective
participation in rural development activities;
developing common programmes for village
uplift and minimising economic and gender
disparities in the rural society
To meet future challenges, It is now felt that rural
transformation can be hastened through the effective
TABLE 13.6
District-wise Physical, Social and Economic Indicators in 1-limachal Pradesh
01.01116 4/1 6/ % pf
Gwgraphtzlll Pqlu. 16
Area <1-q. /rm) Total
6/1116 Slate Pupti. 6/
<20o1) S/me‘
(2001)
% 6/ % age 6/” % 6;’
Holding Arfll III Crirna
m Tum! Total A mi Rare
nu. 11/ <01 ha; (200!)
Hpldmgi
I I 9 9 I)
%6; 0/”pf %oj/tgri “/to/‘
Pur1chu)=a!.s’ Bum-M Cooperillivtr TiJz1Jh0m’
in Tam] Pmidiuyun Seamesiiz Coniieclivri
Ptmdiayuls m Tum! Total in Total
(2001) Butkwd/’d /2001; (2001)
% 6/
Road
Lmgih
in Total
(2017!)
% Qt
Pnrimry
Sdiool
in Tom!
/J (I O I)
‘/6 of
Gzivt.
Emplflyee
in Toni!
(2 OH I)
% age .1;
Bunk
Oflizm”
in Tom]
(200 1)
Pimrhtiyim
/2001)
% 6/
Below
Puvmy
Line
Households
in Total
Q/S1412
{I 9 9&9 9)
Bilasput
Cltamba
Hflmltpllf
Kflngfa
Kinnaur
1411116
15-11111.11 at
Mandi
Shimla
Sirmaur
Solan
Una
H. P
2.11)
11.72
2.01
10.31
11.50
9.88
spin 24.05
7.09
9.22
5.07
3.41;
2.77
100
(55673)
5.61 (10)
7.51; <5)
6.78 <s)
22.02 <1)
1.3x <11)
6.25 <9)
055 112)
14.82 <2)
11.s2 <3)
7.54 <6)
8.22 <4)
7.34 <7)
100
<607724s)
5.63
7.47
8.01
26.03
1.12
6.61
0.46
15.83
10.44
5.22
5.74
7.44
101)
5 27
5.67
7.66
20.97
1.43
4.43
0.64
12.98
12.60
10.26
9.17
8.91
100
(863437) (99909968)
8.28
5.66
5.69
17 48
1.14
7.11
0.98
14.53
15.84
6.85
8.93
7.51
100
(15516)
4.48
s.s9
7.011
24.10
2.04
6.12
i 35
13.90
10.90
7.21
6.52
1.21
lfll)
<10s7)
2.66
30.47
2.66
3.48
14.72
24.13
14.72
5.32
1.23
0.61
101)
(469)
3.50
6.19
10.45
28 57
1.65
5.01
2.46
10.12
8.09
5.58
7.61
10.12
100
<2115)
4.21
3.60
7.21
17 55
1.56
6.94
0.12
13.39
22 50
5.26
11.84
5.82
100
4.61
10.14
4.43
16.05
3.78
4.62
3.88
16.12
13.83
8.88
8.58
5.08
100
5.54
10.16
4.76
16.85
1.78
6.55
197
16.17
15.20
9.04
7.10
4.89
100
5.09
6.63
5.96
19.00
2.24
4.98
1.59
12.81
21.88
6.69
7.02
6.16
100
<22510s) <26575) <10622) (123626)
5.42
6.97
6.97
19.61
2.52
6.06
1.03
12.77
15.74
6.32
10.06
6.71
100
<775)
6.10
16.48
7.05
22 56
1.01
4.00
0.145
14.68
11.10
4.69
6.27
5.40
100
(286112)
Sauna” Various Statistical Abstract of Hintachal P
radesh.
Note ” Figure in the parenthesis arc ranking of the districts according to population

Chapter 13 RURAL DEVELOPMENT 235
TABLE 13.7
Rural Infrastructure in Himachal Pradesh
Rank States Having Better Ranks
Percentage of household having kurcha houses
Households using separate kitchens
Using toilets
Electricity
Piped water
Protcctcd watcr
Households using PDS
Population below poverty line (rural)
Proportion of total H.H. income spent on education
_.’..-t.-o_.._.o-<>e
Bihar, UP, MP, Orissa, North—east, West Bengal and Kerala
Kerala
North-East, Kerala, West Bengal and Punjab
Nil
Nil
Eight other states
Tamil Nadu and Kerala
Orissa and West Bengal
Nil
Source‘ Indra Hullmrl Dzvclnpnicnl Report, 1990, NCAER.
TABLE 13.8
Caste-wise Distribution of Male and Female Representatives of
Gram Panchayats in Total Wards of Twelve Districts of]-1imachalPrades11
Districts
Male
Female
General
S.C
S. T.
B.C
Total
General S . C. S. T. B. L
Total
Grand Total
Bilztspur
Chamba
Hamirpur
Kangra 2319
Kinnaur —
Kullu 499
454
472
676
115
221
213
777
70
151
12
286
152
28
581
979
889
3096
222
678
Lahaul & Spiti – 1 122 – 123
Mandi I091 354 2 – 1447
Shimla 919 255 » – 1174
Sirmaur 583 272 10 – S65
Solztn 552 260 5 — S17
Una 642 215 – – 357
1-1.P. 8207 2904 617 – 11728
230 139 12
3 I 6 72 177
338 106 –
1080 256 –
— 36 92
262 193 3
– 23 59
381
565
444
1336
128
458
82
962
1544
1333
4432
350
1136
205
780 444 21 –
466 336 5 –
304 142 6 –
265 158 2 —
411 87 – –
4452 1992 377 –
I245
807
452
425
498
6821
2692
1981
1317
1242
1355
18549
Source‘ Panchayatl Ra] Department, Himachal Praclesh, Shimla.
implementation of the multilevel decentralised system,
as envisaged in the New Panchayati Raj System, which
has Constitutional authority to plan and implement
programmes for rural development.
Rural Development and Panchayati Raj
Panchayats have been in existence since time
immemorial. In the ancient period, the Panchayats
generally functioned as informal institutions to solve
intra-village and sometimes inter-village feuds, and
organised forums for village-level social development
and cultural functions.
In Himachal Pradesh, the Panchayati Raj system was
established in a statutory form in 1954 under the
Himachal Pradesh Panchayati Raj Act-1952. After the
reorganisation of the state on 1 November 1966, the
1952 Act was replaced by the Himachal Pradesh
Panchayati Raj Act 1968, incorporating the major
recommendations of Balwant Rai Mehta Committee and
a two-tier system was established in the state.
With the passage of the 73rd Constitutional
Amendment Act, 1992, the Himachal Pradesh
Panchayati Raj Act, 1994, came into force on 23 April
1994, in place of the Himachal Pradesh Panchayati Raj
Act, 1968. New rules were framed under new Act.
Simultaneously, the State Election Commission and the
State Finance Commission were also constituted. The
two-tier Panchayati Raj system, namely Gram Panchayat
and Panchayat Samiti, gave way to the three-tier system.
First elections to the Panchayats were held in December
1995.
The second general elections to the PR1s were held
in December 2000, and in the scheduled areas in June
2001. At present there are 3037 Gram Panchayats. 75
Panchayat Samitis and 12 Zila Parishads With 24623, 1658
and 251 members respectively (Tables 13.8 & 13.9).

236
HIMACHAL PRADESH DEVELOPMENT REPORT
TABLE l3.9
Panchayati Raj Institutions in Himachal Pradesh – A Glance
Particulars Male
Female Total Male
General Schedule Backward Tribal Total General
Castes Castes Castes Caster
Castes
Schedule Backward
Caster Castes
Tribal Total
Castes
& Female
Ward Members of
Gram Panchayat 8207 2904 – 617
Panchayat Samiti Members 663 282 76 72
Zila Parlshad Members 98 4] ll 14
Pa/‘dhans of Panchayat 1233 501 147 130
Chairpersons Pandiayat Samitis 29 12 3
Zila Parishad Chairpersons 5 2 –
H728 4452 1992 – 377 6821 l8549
1098 330 155 42 35 560 I658
164 48 24 8 7 87 251
2011 6l5 270 77 64 1026 3037
48 15 7 2 3 27 75
8 l l l I 4 l2
Strum? Panchayati Raj Department, Himachal Pradesh, smmi».
The 73rd Constitution Amendment Act, 1992, has
enabled the PRIs to assume the role of self-governing
institutions at the micro level of the administration for
decentralised planning and management. It provides an
arrangement for the association of rural voters, both
men and women, in governance by managing the local
affairs in a more meaningful manner that conforms to
local wishes and aspirations. This constitutional status
of PRIs has also empowered women, the Scheduled
Castes and the Scheduled Tribes in the position of
ehairpersons by providing reservation.
The Himachal Pradesh Panchayati Raj Act, 1994 gives
greater importance to the Gram Sabha. A minimum of
four general meetings on the first Sundays of January,
April, July and October have been made mandatory and
the family has been made the unit for determining the
quorum of Gram Sabha meetings. For every ward, an
Upgram Sabha has also been constituted, which must
meet twice in a year to discuss local issues and to
suggest viable solutions. It will also nominate l5 per
cent of the families for the general Gram Sahha meeting,
and one-third of the participants shall be women. The
Gram Panchayats and Panchayat Samitis shall prepare
development plans for their areas, which will be
consolidated at the Zila Parishad level and submitted to
the District Planning Committee (DPC). For efficient
functioning of the PRIs, rules have been framed for
setting up standing committees at all the three levels.
Besides this, administrative and judicial powers have
also been delegated to the panchayats.
Delegation of Powers and Funaions
The state government devolved powers, functions
and responsibilities relating to 15 departments, namely
Agriculture, Animal Husbandry, Ayurveda, Education,
Food and Supply, Forest, Health and Family Welfare,
Horticulture, Industries, Irrigation and Public I-Iealth,
Public Works, Revenue, Rural Development and Social
and Women’s Welfare, to the PRIs on 31 July 1996.
These powers relate mainly to planning and execution
and monitoring of schemes.
The government has empowered the Gram Panchayats
to enquire and give reports on grassroot level
government functionaries, such as peon, bailiff,
constable, head constable, chowkidar, patrol of the
irrigation department, forest guard, patwari, vaccinator,
canal overseer, gram sewak, gram watcher and panchayat
secretary. The panchayats are also empowered to hear
and decide cases relating to minor offences under the
Indian Penal Code (IPC). In reality, the Gram Panchayats
have been delegated powers only to report on the
physical attendance of grassroots level functionaries
such as parwaris, forest guards, school teachers, water
carriers, water guards and panchayat secretaries in their
assigned areas of Work.
The other important delegated functions are:
‘ Gram Panchayuts are empowered to hear and decide
cases relating to minor offences under the IPC.
~ Gram Sabhas have been empowered to consider
and make recommendations and suggestions to
gram panchayats in respect of the annual statement
of accounts, and other related issues.
‘ Constitution of vigilance committees ofthe Gram
Sabha to supervise the works, schemes and other
activities of the Gram Panchayat.
– Delegation of powers to the Gram Panchayats to
execute Works up to the value of Rs. 50,000
without any external sanction and development
works costing up to Rs. 5 lakh to be executed by
the Gram Panchayat.

Chapter 13 RURAL DEVELOPMENT
237
TABLE 13.10
Recommendation of First State Finance Commission
(I996-97 to 2000-01)
Devolved Fundianr
Grants Tax as
I. Delegated functions of: = 3750.00
(1) Agri Deptt
(2) Animal Husbandry
(3) Agurveda & Homeopaths
(4) Education
(5) Fishery
(6) Forest
(7) Health & Family Welfare
(a) GPs
(b) PSs
(8) I-Iorticulture
(9) Industry
(I0) Irrigation & Public Health
(11) Public Works
(12) Rural Development
(13) Social 8:. Women Welfare
II. Rural Infrastructure Maintenance
Corpus I 1280.00
(1 per ecnt of the capital cost of assets)
Total I 5030.00
1. Honorarium 1) Raise resources through taxes
(a) GFs representatives I 788.95 and levies
(b) PS5 representatives = 19.45 308-40
2) Fix minimum and maximum cash
2. Oftice Expenses tax to be levied in the rural
= 606.53 areas.
I 4335 l650.4s
3. Construction of Zila Parishad Buildings
300.00
I 1758.88
‘ The Panchayat Samitis are supervising the
implementation of Indira Awaas Yojana.
– The Zila Parishadx will evaluate all poverty
alleviation programmes and coverage of women,
SC, ST and BPL families under these programmes.
– Gram Panchayats shall prepare micro-plans
proposing development intervention which will be
approved by the Gram Sabha.
– Formation of seven standing committees, namely
Public Works Committee, Health and Welfare
Advisory Committee, Village Education
Committee, Forest Committee, Agriculture
Production Committee, Irrigation and Public
Health Committee and Food, Civil Supply and
Consumers Committee.
Financial Devolution
The District Planning Committees (DPCs) have been
constituted by the state government in all districts and
ministers of the state government have been designated
as chairpersons of the DPCs. For empowering the PRIs
and to make them financially sound, the state
government has accepted most of the recommendations
of the First Finance Commission. The Commission
recommended the devolution of functions involving an
expenditure of Rs. 5030 lakh for a period of five years
from 1996-97 to 2000-01 (See Table 13.10). In its
recommendations, the commission has suggested that
the state government should consider fixing the
maximum rates for each tax. The state government has
allowed the Gram Panchayats to levy taxes, fees and
duties in their areas subject to the maximum rates of
such taxes specified by the government. The Second
Finance Commission was constituted on 25 May 1999.
According to the recommendations of the First State
Finance Commission and the Tenth Finance
Commission, Rs 8.05 crore is being released to the
PRIs annually to discharge the delegated functions. The
Eleventh Finance Commission has awarded Rs 1313.38
lakh annually for the period 2000 to 2005. The state
government has earmarked an amount ofRs. 57.00 lakh
for the construction of Zila Parishud Bhawans, Rs. 193.34
lakh to meet the office expenses of all the three tiers of
PRIs and Rs. 689.65 lakh for honorarium to be paid to
the elected representatives of PRIs. In addition, the
state government is also providing a grant of Rs. 561.17
lakh on account of honorariums to panchayat chowkidars,
panchayat sahayaks, tailoring mistresses and junior
engineers ofthe Panchayars.
I-Iimachal Pradesh is one of the states of India, which
give a monthly honorarium to the elected representatives
of PRIs. It gives an honorarium of Rs. 2700, Rs. 1250
and Rs. 750 to the chairpersons of Zila Parishads,
Panchayat Samitis and Gram Panchayuts respectively. For
the vice-chairpersons of all the three tiers, the
monthly honorarium is Rs. 1800, Rs. 1000 and Rs. 650
respectively. Members of Zila Parishads and Panchayati
Samizis are given Rs. 1250 and Rs. 750 each as monthly
honorarium. Members of Panchayats receive an
honorarium of Rs 100 per meeting up to two meetings
in a month.

238
TABLE 13.11
H1MACHAL PRADESH DEVELOPMENT REPORT
Revenue and Expenditure of Gram Panchayats: Comparison
Parliculars
Himachal Pradesh Punjab
No. of Gram Panchayats
Rural Population per Pnnchuyat
Average No. of Pnnchnyat Members (including Pardhan & Up—PflVri/Ian)
Revenue
i) Revenue of (2001-02) (in lakh)
ii) Revenue per Pzmchayat (in mat)
111) Per capita Revenue (in Rs.)
1v) Percentage of Revenue Collection
(a) Taxes
(b) Non Taxes
(c) Grants-in-aid
Total
Expenditure
(1) Expenditure (111 lakh)
(ii) Expenditure per Pzmehayal (in lakh)
(m) Per Capita Expenditure (in Rs.)
(iv) Percentage of Expenditure on
(14) Office Expenditure
(b) Developmental & Other Activities
Total
3037 12369
1800 1320
8 7
7958 18732*
2,62 1.51
145.00 115.00
2.19 0.73
7.57 38.16
9024 61.11
100.00 100.00
6564 14078
2.13 1.14
120.00 87.00
3.50 2.92
96.50 97.00
100.00 100.00
some. AnnualAdrni/1Islmll\’eRPp0rI (2001702) Panchayati Raj Department, HP, Shimla.
Rqmrl ,1; the Szmnd Punjab Sm/0 Finnmz Comlnisxinn, Feb znnz, Government of Punjab, Chandigarl-1.
The financial resources of the PRls are grants-in-aid
from the government, house tax, tax on extraction and
export of sand, stone, bajri and slates, excise cess, land
revenue, water charges, one per cent contingency,
interest money, Teh-Bazari trom shopkeepers, service tees
and income from own assets. Data show that only 2.09
per cent of the funds are generated by the PRIs through
taxes and almost 90 per cent of the revenue comes from
grants-in-aid from the centre or the state government
and only eight per cent from other sources (Table 13.11)‘
The first State Finance Commission has done little
to review the fiscal relations and to suggest a way to
provide finances to the local bodies‘ The result has
been apathy to implementing the recommendations and
that has made the Panchayars dependent on resource
transfers from the state. That is the reason why:
– Administrative support to the District Planning
Committees is not forthcoming from the
bureaucratic network. Political support too is not
very enthusiastic. Untied fiinds should be given
to the panchayuts on a large scale so that
development works could be started according to
the needs of the people.
~ Only certain functions, not powers, are being
devolved to the Panchayats. Thus from the very
beginning, the Panchayats have been treated as
executing agencies. Even if powers are given to
the PRIs, these cannot be brought into effect
without a political will.
Since the officials deputed to PRls are not put
under the direct administrative control of the
panchayats, the officials working in a bureaucratic
network take it for granted that there is no need
to share power with the elected representatives of
the PRIs.
Devolution of administrative responsibility to the
PRls without a commensurate devolution of
resources may result in limited reforms. Though,
the State Finance Commission puts greater
emphasis on internal revenue mobilisation, an
effective and appropriate mechanism has not been
suggested. However, rapid devolution of financial
responsibility may create problems of accountability
and resort to corrupt practices. Thus, a gradual
approach for financial devolution in phases
through proper institutional arrangements is
appropriate to ensure proper accountability.
Expenditure assignments need to be more
decentralised than revenue collection. Further,
greater local accountability and direct visibility of

Chapter l3 RURAL DEVELOPMENT
benefits at the local level encourage greater
resource mobilisation. Often, effective
decentralisation also fails to mobilise adequate
local resources. Therefore, more than resource
mobilisation, strengthening ofthe Gram Sabha to
prevent misappropriation at the grassroot level is
crucial.
~ There are growing apprehensions among the
leadership of different political parties about the
participation as Well as development related role
of the elected representatives of the PRIs at the
lower level, as the leaders may lose their political
authority in rural development programmes.
Therefore, the test of democratic decentralisation
lies in the extent to which members of the Gram
Sub/ia will participate in the political process and
self~governance.
Moreover, the objectives ofthe Panchayati Raj System
could be revitalised by transferring more funds,
functions and functionaries as provided in the 73rd
Constitutional Amendment Act-1992 and Himachal
Pradesh Panchayati Raj Act, 1994. In the changed
situation, the PRIs will have to be viewed as
institutions of local self-government, not as
implementing agencies for central and state government
programmes, but as institutions that prepare and
implement micro-plans. Active participation of women,
the Scheduled Castes and Scheduled Tribes has to be
ensured in decision-making so as to build, promote and
empower a new leadership of these sections, For this,
the PRIs will have to be strengthened with clarity
about their role, the system of governance,
accountability, transparency and interlinkages.
Therefore, to strengthen the Panchayati Raj system and
its institutions, the state must ensure effective transfer
of functions, finances and functionaries to the PRIs,
empowerment of the Gram Sabhas, and strengthening
the District Planning Committees. There is also need to
integrate the development funds allotted to members of
Parliament with the funds of Zila Parishads, and to
ensure training of all newly elected representatives
within a year of their election and to organise refresher
courses periodically. All this will add up to building the
capacity of the PRIs and their members without which
rural development will be slow and remain incomplete.
Capacity Building
Training
In order to make the representatives aware of their
functions, powers and responsibilities, the state
239
government has decided to impart training to all newly
elected office-bearers of the PRIs from the first year of
their tenure. Accordingly, office-bearers of Zila
Parishads and Panchayat Samitis are imparted training
at the I-Iimachal Institute of Public Administration
(HIPA), and members of Panchayat Samitis and
chairpersons and vice-chairpersons of Gram Panchayats
at the district level and at the Panchayati Raj Training
Institutes at Baijnath and Mashobra. Training to the
members of Gram Panchayats is provided at the block
level. The state government has imparted training to
one-fourth of the PRIs representatives since the
election of these bodies in 2000. Of the 26,532
representatives, 61 per cent of the Zila Parishads
members, 96 per cent ofthe Panchayat Samiti members,
26 per cent of the Pardhans and Up-Pardhans and 89 per
cent of the Panchayat members are still without
training.
Approaches to Training and
Development for Capacity Building
The Panchayati Raj System in Himachal Pradesh is
Working under the guidelines set by the State
Panchayati Raj Act. It is imperative to increase and
upgrade the knowledge, administrative and technical
skills, leadership qualities and governance capabilities of
members of PRIs through education, research and
training for planning and implementing programmes
concerning the 29 subjects mentioned in the Eleventh
Schedule, These subjects could further be clubbed into
five clusters, viz., agriculture and allied activities, rural
industrialisation, infrastructure development, human
development and social welfare; and gender development
(Annexure l). Once these elected representatives are
converted into more effective human resources, they
Will become the trainers for members of the Gram
Sabhas (co-ruler in rural governance). This will convert
every rural adult into a valuable human resource capable
of accelerating the rural development process and its
sustainability.
Though, the state government is making efforts to
impart training to the representatives of the PRIs, it
has not yet developed an integrated or holistic model
for rural development. For this there is need for setting
up or developing the existing centres for conducting
research on issues and problems of the rural society
and suggest viable solutions. These centres could
impart training and education to representatives of local
governance (PRIs), co-operatives (dairy, fishery, forest,
tloriculture, tourism and processing), Mahila Mandals,
Parivar Kalyan Salahkar Samitis, Youth Clubs and other

240
TABLE l3.l2
HlMACHAL PRADESH DEVELOPMENT REPORT
Action Plan for Education, Training and Empowerment of the Elected Representation of PRls
Parliculars No. 0/ PR1s Total Nu. of Elected Proposed No. of Expenditure Per Parlitipanl Total E.rpcna’iIu/*6 Required
Representatives Workshops (in Rs.) (in Rt.)
Gram Panchayats 3037 24623 492 1500 3,69,34,500
Pzinchayats Samiti 75 1658 75 Z000 33,16,000
Zila Parishads 12 251 12 2500 617,500
Total 3124 26532 579 – 4,08,78.000
Note. Based on CRRlD’s Training Programme.
stakeholders if any, about their role and responsibilities
and also promote appropriate rural technologies and
skills for human development. At present, Himachal
Pradesh needs a long-term policy for the development of
human resources, through education, training and
empowerment of grassroot level institutions, especially
PRIs, and creation of a congenial socio-economic,
institutional and political environment. Himachal
Pradesh has two training institutes, at Baijnath and at
Mashobra, which cater mainly to the training needs of
development functionaries of Panchayats and the office-
bearers of Zila Parishads, Panchayats Samitis and
Panchayats. These are grossly inadequate to meet the
training requirements of the elected representatives of
Gram Panchayats. This conclusion is derived from the
experience of CRRID in conducting the training and
education workshops for representatives of PRls in
Punjab.
At present, Himachal Pradesh has 24,623, 1658 and
251 members of Gram Panchayats, Panchayats Samitis and
Zila Parishads respectively. An estimated sum of Rs. 4
crore will be needed for a one-time training programme
(Table 13.12). It is also necessary to build a
reorientation-training programme, for which a separate
budget should be worked out every year.
Course Contents of PR1 Training
The Panchayati Raj system is meant not only for
decentralisation of power and the people’s participation
but also for accelerating rural development and
strengthening the planning process at the micro level.
The PRIs have been made responsible for promoting
development and social activities, which are listed in
the llth Schedule of the 73rd constitutional amendment.
This is an integrated model of economic development
with social justice, based on a decentralised planning
system. Therefore, for rural development and decentralised
planning, proper training of the representatives is
necessary. This should include:
Panchayati Raj concept, historical perspective,
main features of the 73rd Constitutional
Amendment and the l-limachal Pradesh Panchayati
Raj Act.
Gram Sabha and its role.
Gram Panchayat: powers, functions and
responsibilities.
Power and responsibilities of Pardhans, Up-pardhans
and members of panchayats.
Gram Panchayat meetings, quorum, agenda
preparation and its circulation, rules and
regulations for maintaining discipline and taking
decisions.
Statutary committees and sub-committees.
Duties and responsibilities of the panchayat
secretary.
Rural development, central and state sponsored
programmes and schemes.
Maintenance of records: cashbooks, receipt books
and assets created.
Concern for environmental degradation, especially
deforestation.
Planning, its need and relevance, multilevel
decentralised planning process of the village plan,
its formulation and implementation.
Preparation of budget, its approval and execution
and resource mobilisation.
Rules, regulations and procedures for purchases,
maintenance of accounts and audit of accounts.
People’s participation in the development process.
Gender issues.
Rural leadership: emerging patterns in rural
leadership, importance of democratic values and
ethics in grassroot level leadership.

Chapter l3 RURAL DEVELOPMENT
‘ Good governance; role of panchayat and village
functionaries.
– Computer application in local governance.
‘ Social and other problems: their management by
the panchayar.
‘ Co-ordination with Non-Government Organisations
and other bodies.
– Social mobilisation, human resource development
through skill formation, promotion of education
and health infrastructure/facilities and protection
of the interests of those in the grip of grinding
poverty and indebtedness.
Some Other Socio-economic Factors
The social factors that dominate the style of living
and the working of the state, when compared with
Indian standards, are better in some respects but there
is need for restructuring the following areas, according
to the spirit of decentralisation, and for overall rural
development of the state.
indigenisation of Rural Eduzution
In the light of the 73rd Constitutional Amendment
time has come when rural development programmes
must take the lead. The National Council of Rural
Institutes (NCRI) has started considering introduction
of rural higher education programmes, primarily based
on the New Education (Nai Talim) concept in accordance
with local needs. The people have not so for been
made part of the mainstream higher education,
covering research, teaching, extension and networking.
With the introduction of such rural education
programmes, the Panchayai Raj system will get the
required strength for understanding and resolving local
problems. Rural problems of Himachal Pradesh, are
different from those of other states. In the context of
rural development, indigenisation of concepts and
theories is essential for understanding and resolving
the issues that confront the state government, the PRIs
and the stakeholders. This calls for social science
research in Indian experience and reality, particularly
relating to the rural areas. Such an approach in social
science research is likely to bring rural transformation
at a faster pace.
Rural industrialisation
In the present situation, rural development requires
a positive change in the rural areas both qualitatively
and quantitatively. This is possible only by providing
241
gainful employment utilisation of local resources,
introduction ofmodern-technology industries and micro
planning under the Panchayati Raj setup with
decentralisation of finances and delegation of powers.
To explore employment opportunities in the rural
areas, there is need for a study of the potential of rural
industrialisation in the context of the 73rd amendment.
The demand for encouraging the setting up of rural
industrial enterprises is going to be generated with the
mandate to plan and implement the work plan on
subjects transferred to the PRIs. A close look at the 29
subjects in the Eleventh Schedule provides a clear
picture of the potential of setting up all types of
industries in the rural areas. Now is the time for the
state government to consider it seriously. The state
government should also hold dialogue with
international organisations like the International Labour
Organisation (ILO) and the corporate sector or big
industrial houses to work out operational plans for
capacity building and clearly designed operational
strategies for promoting enterprises for the manufacture
of products, demand for which is going to be generated
by decentralised activities. The operational strategy is
sure to get the support of the central government in
view of its plan to have a National Programme for Rural
Industrialisation (NPRI) and to set up 100 rural
clusters every year to give a boost to rural
industrialisation in the context of a rural-urban
integrated economic complex. Besides the promotion of
cottage industries and handicrafts, a good network of
engineering and foundry industries, agro-based and
livestock based industries can be created in Una,
Hamirpur, Kangra, Bilaspur, Sirmaur and Solan
districts. The districts of Kullu, Shimla, Chamba,
Mandi, Bilaspur and Solan are suitable for horticulture
and forest-based industries. The tribal areas of Kinnaur,
Lahaul-Spiti and Chamba, besides Kullu and Shimla, are
suitable for handicraft units.
The slow growth ofthe rural non-farm sector can be
attributed to the low CD ratio (24.4 in 2000) in rural
Himachal Pradesh (Table 13.13). This sector has the
potential of generating more employment. There is need
for providing credit to village-based cottage and small-
scale industries, agro-processing units, transport and
other services.
In the absence of an institutionalised banking
system, the rural people especially the marginal farmers
and the underprivileged sections, such as the Schedule
Castes and Scheduled Tribes approach moneylenders
and traders for their credit needs. It has been seen that

242 HlMACHAL PRADESH DEVELOPMENT REPORT
TABLE
13.13
Number of Branches, Deposits and Credit Deposit Ratio in All Commercial Banks for the Year 1990 and 2000
(Rs. in la/<h)
Name 0/ the Stale/India Nature of N0.
Bank Bram‘/res I990
of Bran ch es
2000
Deposits
Credits Credit-Deposils Ratio (%)
I990
200!)
I 990
2000
I99!)
2000
Himachal Pradesh Rural
Total
Haryana Rural
Total
Maharastra Rural
Total
All-India Rural
Total
626
(88.3)
709
736
(57.8)
1273
2491
(43.7)
5689
34184
(56.50)
60515
657
(84.5)
778
697
(46.7)
1491
2309
(374)
6216
32719
(50.00)
65521
83916
(69.4)
120970
85505
(24.9)
343324
148237
<45)
3281284
2623364
(15.3)
1719439
394326
(63.9)
617464
344318
(20.2)
1705250
602134
(3.9)
15299611
12044675
(14.6)
82213276
29512
(67.4)
43810
58109
(28.0)
207801
111023
(49)
2276369
1606785
(15.4)
10431193
96285
(68.1)
141372
143535
(20.3)
706137
351640
(2-7)
12820100
4739602
(10.1)
46903171
35.2
67.95
74.93
61.25
24.40
41.68
58.40
39.35
Smmm BankingSI11/i.rt!r_r, Bmi(SI11Ii.vtzmlRt’!ur1i.v Volume 19 March 1990. B11nkingSt11tistiz:r, Q1lal1u'[)’Hnndr7i4I – March 2000.
Note: Figures In parcnthcscs rcprcscnt lhc share In rural rcgion to thc total of @111 thc rcgions.
such credit does not help in capital formation and is
used for consumption and meeting the daily needs of
the rural people, which has not helped the growth of
the non-farm sector.
At this stage, micro-credit may become a successful
programme to realise the social agenda of the banking
sector. Here, the role of the PRIs, co-operatives and
NGOs can be acknowledged as a catalyst. These bodies
can stand for guarantee for the loans advanced to ‘Self
Help Groups’. This will ensure timely repayment and
reduce the cost through participatory approach.
Rural Informatics
Information technology is an integral part of the
future development process, especially for rural
development and so are the new concepts and contents
of ‘Governance Information Technology’. The Seventh
Five Year Plan Document (1985-90) has recognised that
information technology has a facilitative role to play in
providing information about the Intensive Rural
Development Programme, development problems and
possibilities. All components of rural development, viz.,
agricultural growth, infrastructure development, human
resource development, rural industrialisation and
grassroot level rural governance can directly or indirectly
benefit from information technology by focusing
attention on improvement of production, consumption
and social services. Computerised information can be
used in decision making at the village, block, and
district levels, for maintaining land records, forestation,
beneficiary details, development schemes, rural banking,
rural environment and other socio-economic indicators;
It has become necessary that information technology is
made a part of the training of the rural youth.
Rural Poverty Alleviation Programme
The basic objectives of the poverty alleviation
programme are to provide income-yielding assets and
skills, to ensure employment opportunities; and to
improve the quality of rural life. To achieve these
objectives, several poverty alleviation schemes have been
started from time to time. The emphasis in rural
development has progressively shifted from growth to
welfare and then from responsive to an integrated
approach.
Poverty alleviation has always been the main agenda
of the policy planning of successive governments in
Himachal Pradesh. Various programmes of the central
and state governments have been implemented. Due to
these efforts, the poverty figure in the state, according
to Planning Commission estimates, has been decreasing.
In 1977-78, the percentage of the states population
below the poverty line was 32.45, which came down to
16.39 in 1983, 15.46 in 1987-88 and 7.63 in 1999-2000
(Table 13.14). On the basis ofa BPL survey, conducted
by the state government in 1998-99, the percentage of
families living below the poverty line has decreased
from 42 in 1981 to 26.69 in 1998-99. The survey shows
that of the 2,86,447 identified poor families, l,06,468
(4l.13%) belonged to the Scheduled Castes, 10,801
(4.17%) to the Scheduled Tribes and the remaining
l,4l,590 (54.70%) were from other categories. The

Chapter 13 RURAL DEVELOPMENT
results indicate that poverty still persists in the state
and its prevalence is more among the unprivileged
sections of society consisting mainly of marginal and
small farmers, agricultural labourers, rural artisans, the
Scheduled Castes, the Scheduled Tribes, physically
handicapped persons and women. Hence, more serious
efforts are required for poverty alleviation and
employment generation in the rural areas. The Tenth
Five Year Plan of Himachal Pradesh envisages efforts to
reduce poverty and provide rural employment to the
poor. For this, the involvement of the PRIs in
implementation, supervision, monitoring and evaluation
shall be ensured. The PRIs and NGOs shall be closely
associated in planning and execution of rural
development programmes.
TABLE 13.14
Poverty Ratio in Himachal Pradesh and lndia
Year I 9 9 9-20170 Poverty (Total) R ural Urhizn
Himachal Pradcsh
243
lakh and Rs. 966.67 lakh as subsidy and credit
respectively. Besides this, 2707 groups were formed
since the inception of the programme, of which 563
groups consisting of 5503 BPL members have been given
Rs. 377.221 lakh and Rs. 1074.39 lakh as subsidy and
credit respectively.
The physical progress of this scheme is shown in
Table 13.15. The total number of swarosgaris assisted
till to December 2002 was 33393 and the scheme
particularly focuses on vulnerable groups among the
rural poor. Accordingly, 38 per cent of the beneficiaries
belong to the SCs, about ll per cent to the STs and
almost one half are Women. The SGSY is being
implemented by the DRDA through the Panchayat
Samitis.
TABLE 13.15
Financial and Physical Achievement under SGSY
I999-(10 t0 Z002-O3 Per cent
(Rs. in lakh) lo Total
1999-00
1993-94
1987-88
1983-87
1977-78
India
1999-00
1993-94
1987-88
1983-87
1977-78
7.63
28.44
15.46
16.39
32.45
26.10
35.97
39.34
44.76
51.81
7.94
30.34
16.28
17.00
33.49
27.09
37.27
39.06
45.61
53.07
4.63
9.18
6.8
9.25
19.47
23.62
32.36
40.12
42.15
47.40
Total Funds Available 3364.54
Total Expenditure 2446.152
Total Beneticiaries/
Swarogaries Assisted (No.) 33393
SCs 12715
STs 3802
Women 16732
Handicapped 129
No. of Groups Formed 4613
No. of Women SHGs Formed 390
No. of SHGs taken up Economic Activities 1479
No. of Women Sl-[Gs taken
72.59
38
ll
50
.07
.38
ll
0.38
Soww Report of /he Expert Group an Bvziniaiion and Na of Pour. Perspective
Plallfllng Divisiult. l7lfll‘i!’ll|\g Commission. Gfivefflméfli of lndia.
New Delhi. July 1993. Planning Commission, Government of
India.
The financial and physical achievements of some
major centrally and state sponsored schemes during the
plan periods are briefly discussed below:
Swaranjayanti Gram Swarozgar Yojana (SGSY)
The scheme aims at covering 30 per cent of the BPL
families in each block during 1999-2000 to 2003-2004
and envisages that the monthly income of an assisted
family will increase by at least Rs. 2,000. SGSY adopts
a project approach for key activities. The selection of
key activities is based on the cluster approach and
resources, occupational skills and availability of
markets.
For 2001-2002, a target of credit mobilisation of
Rs. 20 crore was earmarked. Till March, 2002, 3588
individual swarusgaris were assisted and given Rs. 220.89
up Economic Activities 158 —
A total of 4613 Self Help Groups have been formed,
of which 390 are women’s groups. The performance of
utilisation of central allocation is satisfactory. The
projects/schemes, being taken up by the groups or
individual swarnsgarifi have been selected keeping in
view the backward and forward linkages.
Sampoorn Grameen Rnzgar Yojanu (SGRY)
The objectives ofthe SGRY are to provide additional
wage employment and food security, in the rural areas
along with the creation of durable community, social
and economic assets and infrastructure. The programme
is self-targeting and will be available to all the rural
poor (BPL/APL) who are in need of Wage employment
and are willing to engage in it. Preference will be
given to the poorest among the poor, women, SCs/ STs
and parents of child labour withdrawn from hazardous
occupations.

244
Under the scheme, 5 kg of foodgrains (in kind) is to
be distributed as part of the wage per manday. The
remaining part of the wages is to be paid in cash to
ensure the notified minimum wage.
SGRY is Executed in Two Streams
The first stream is being implemented at the district
and intermediate Panchayal level; 50 per cent of the
funds are to be earmarked (out of the total funds
available under the SGSY) for distribution between the
Zila Parishads and intermediate-level Panchayats
(Panchayat Samitis) in the ratio of 40:60. (Of the 50 per
cent funds under the first stream, 20 per cent are to be
utilised by the Zila Parishads and 30 per cent by the
intermediate-level Panchayats)
The second stream is being implemented at the
Village Panchayat level; 50 per cent of the funds
available under the SGSY are earmarked for the Village
Panchayats and for distribution among Gram Panchayats
through the Zila Parishads or DRDAs. The funds are so
allocated as to ensure that each Panchayat receives a
minimum of Rs. 50,000/-.
Physical progress under the two streams is shown
in Table 13.16. Table 13.17 shows details of food-grains
made available and their utilisation.
TABLE 13.16
Physical Progress (Stream I & II) of SGRY
Caiegmy Steam I Szeiim II
with Manday Percentage Lakh Maridays Percentage
Generated Generated
SC 3.08 4]
ST 0.73
2.52 42
l0 0.87 14
Other 3.66 49 2.60 44
Total 7.47 – 5.99 –
Women 0.37 5 0.35 6
Landless – – – –
Source‘ Department of Rural Development, Ilimachal Pradesh.
TABLE 13.17
Foodgrain Availability and Utilisation under
SGRY (Stream I & II) during 2002—O3
(Frmdgrains in IIJnnE.\‘}
Stream Total Availability a/” FO0dgV’tlinS Faaagiami % age
Based on Li/”ting Utilised
I 7828.65 3809.77 49
II 5446.77 3059.40 56
saiima Department of Rural Development, Himachal Pradesh
HIMACHAL PRADESH DEVELOPMENT REPORT
Reasons jbr Slow Progress of the Scheme?
– In this hilly state some areas are far-flung and
snow bound. Therefore, the working season is
very limited.
‘ Foodgrains allocated under the scheme have often
been received two three months after the issue of
sanction letter by the Ministry of Rural
Development, Government of India.
– The scheme could not pick up in the introductory
year of the scheme. Implementing agencies (PRIs)
have taken a long time for approval of shelf of
work.
~ The lifting of foodgrains is slow due to late
release by the Food Corporation of India. Hence,
the Ministry of Food and Consumer Affairs,
Government of India, should ensure quick release
of foodgrains so that these are lifted on time.
‘ Under the directions of the Government of India,
5 kg. of foodgrains per manday are being
distributed as part of the wages. The targeted
persons in the state are also getting foodgrains
under other schemes. Therefore, it is suggested
that the state may be permitted to distribute 3 kg.
of foodgrains per manday under this scheme.
– The Government of India releases funds under the
two streams in two equal instalments. As the
funds are not sufficient to start a durable
infrastructure, it is suggested that these should
be released in one instalment.
~ The labourers should be given the option to get
foodgrains or wages in cash. If they are forced to
accept foodgrains, they may sell these, which will
defeat the purpose of the scheme.
./awahar Gram Samridhi Yojana (JGSY)
JGSY is the restructured, streamlined and
comprehensive version of the erstwhile Jawahar Rozgar
Yojana (JRY). Designed to improve the quality of life of
the poor, IGSY was launched on l April I999.
The primary objective of JGSY was to create a
demand-driven community village infrastructure,
including durable assets at the village level and, to
increase opportunities for sustained employment for the
rural poor. The secondary objective was the generation
of supplementary employment for the unemployed poor
in the rural areas.
* As envisaged by Depaflflient of Rural Development, Himachnl Pradesh.

Chapter 13 RURAL DEVELOPMENT 245
TABLE 13.18
District-wise Physical and Financial Progress under
SGSY Special Projects Component “Installation of Hydrams”
Dis! rict Target
Fixed
Sizes Seleeled/ I~Iyzlr-am: Expnd.
Approved Procured t Rs. in Iakh)
Installed
in Year
2000-01
Installed Total Under Insmllali0r1/ Exprtd.
in 200I-02/ Hydram: Work in Progress (Rs. in Iakh)
2002 -03 Installed
Bilaspur 30
Chamba 30
Hamirpur 20
Kangra 30
Kinnaur 10
Kullu 50
Lahaul & Spiti 10
Mandi 30
Shimla 60
10
5
26
60
30
45
17 16.32
5 4.80
15 14.40
28 26.88
57 54.72
45 43.20
Sirmaur 30 2 5 4.80
Solan 30 39 9 8.64
Una 20 9 7 6.72
H.P. 400 226 181 180.48
1 9 10 8.142
1 4 5 0.462
7 7 Nil
27 27 8.80
to
U1
<:-o~_
K/1
w~o~._.
0.23
2.20
1.96
21.794
Source. Department of Rural Development, HP.
This programme is being implemented by village
Panchrlyats and executed with the approval of the Gram
Sabha of the village concerned.
The Government of India had fixed a target of
generating 11.74 lakh mandays in 2001-02, against
which 13.899 lakh mandays were generated and
Rs. 1219.06 lakh was spent on the yojana.
Prime Minislerlv Gramodaya Yojana (PMGY)
PMGY was launched in 2000-01 with the objective
of achieving sustainable human development at the
village level. Additional central assistance is being
received and earmarked for various components of this
yojana. PMGY aims at consolidating the gains of the
earlier BMS programme and further improving and
strengthening rural infrastructure facilities. Rs. 70
crore has been approved and earmarked for this yojana
during the 2002-03 annual plan. The state has been
allocated Rs. 60 crore for 2002-03 under PMGY,
exclusively for rural roads. Besides this, PMGY funds
are used for the development of primary health
(18.57%), primary education (8.71%), rural drinking
water supply (56.14%), nutrition (15%) and rural
electrification (1.57%).
S GS Y Special Projects
Installation of HYDRAMS: The Government of
India had approved a project for installation of 400
hydrams in 1999-2000 with a total project cost of
Rs. 1047.20 lakh, which includes a subsidy of Rs. 770.48
Iakh, Rs. 161.40 lakh as loan and Rs. 115.32 Iakh as
beneficiary share. Till March, 2002, 226 sites had been
selected and approved. Only 58 hydrams have been
installed and Rs. 202.27 lakh spent on them. The
district-Wise physical and financial progress of this
project is shown in Table 13.18.
Apart from this, there was a programme to install
hydrams to develop waste and marginal lands through
the application of appropriate technology, extension and
training in the districts of Kullu and Shimla, under
this programme. A target of 200 hydrams was fixed; 170
sites were selected/approved and 100 hydrams were
procured in 2001-02. Only 72 hydrams were installed at
an expense of Rs. 88.46 during this period.
Gold mines project: The Government of India
approved in 2000-01 a project on gold mines in Bilaspur
district as an SGSY special project. Three activities,
floriculture, sericulture and mushroom cultivation, are
being taken up under this project at a total expense of
Rs. 840.35 lakh. The project was to run for two years
and had a target of 900 beneficiaries. Till December,
2002, Rs. 152.243 lakh was spent on the development
of these activities. The progress made till December,
2002, is shown in Table 13.19.
Marketing of rural goods: The Central Government
approved in 2001-02 another project as SGSY special
project component with a total project cost of Rs. 914.52
lakh. Under this project 50 Himachal Gramin Bhandars
and one Central Gramin Bhandar are being constructed
in the state. Till March, 2002, 29 sites of these
Bhandars were selected and construction on 21 sites was
completed. Construction on 12 sites was awarded to

246
contractors. An expenditure of Rs. 20 lakh has been
incurred till March, 2002. It is suggested that
construction activity under this project should be given
to PRIs instead of private contractors.
Milch livestock improvement: To promote dairy
farming activities, the Government of India has
approved a project on milch livestock improvement in
Solan district, the total cost of which is Rs. 886.95
lakh. The project will run for five years and is targeted
to benefit 10,000 families. The progress made till
December, 2002, is shown in Table 13.20.
TABLE 13.19
Gold Mines Project: Progress Made up to December 2002
semimm Targets of Cases Subsidy Loan
Production Farmers to be Sanctioned (Rs. in rm in
A .YSiSl8d IE/t’hS} Izrkhs)
Gladiolus Farming 100 18 3.346 5.544
Carnation Farming 100 16 4.50 7.05
Mushroom Cultivation 200 34 8.50 32.54
Sericulture Production 500 282 53.523 127.59
Source‘ Department of Rural Develnplnent, HP.
TABLE 13 .20
Milch Livestock Improvement Project :
Progress Made upto December 2002
Name of the Expendirure Physical Pmgrex:
Component Incurred
(Rs. in Iakh)
6385 cattles treated in 92 field
level camps. 448 breeder
imparted training, 45 Vet
Officials traincd
Extension & Training 12.00
Breeding Efficiency
Improvement 4.34
Genetic Improvement
Young Stock Rearing
Improvement of
Fodder Production
Milch Livestock
Man agem ent
Marketing
Monitoring
Vehicles
Total
7.13
9.75
1.21
17.64
03.65
16.04
71.76
Equipments
Do
Procurement of sccds
Mineral mixtures, medicines etc.
Equipment
Advts., tenders. honorarium.
Soum:. Department of Rural Development, Himachal Pradesh
Rural development through diversification of
agriculture in Mandi district: The project, started in
November, 2001, was to run for four years and its total
cost was Rs. 1385.32 lakh. It will benefit 36,365
individuals. An expenditure of Rs. 148.06 lakh has been
incurred till March, 2002.
HIMACHAL PRADESH DEVELOPMENT REPORT
The main activities under this diversification project
are:
‘ Cultivation of medicinal and aromatic plants,
flowers and orchards
‘ Sericulture
~ Innovative practices in animal husbandry
The physical and financial progress of this
programme is shown in Table 13.21.
Other special component projects under SGSY are
Green Gold in Chamba district, Self-reliance through
Sericulture and Dairy Development in Hamirpur district,
and Intensive Dairy Development Project in Kangra
district.
Issues Relating to SGSY Special Project Component
– Hundred per cent subsidy is given under
wasteland development project, whereas under
SGSY Special Projects, a loan component is also
involved. The Government of India has asked the
state government to surrender the special project
on hydrams, if it is not implemented properly. The
state government wants to continue this project
and has requested the central government to
provide 100 per cent subsidy for this project also.
‘ Special projects augment the resources and to get
the maximum benefit, a period should not be
imposed. Rather the quality of the output should
be the criterion to judge the success of the
projects.
Watershed Development Projects
The objective of these projects is to promote
economic development of the village community and to
check the adverse effects of drought by restoring the
ecological balance and generating employment for the
people of watershed area.
Under the Integrated Wastelands Development
Project, funds worth 33.32 per cent of the total cost
have been released. Of the released funds, 71.11 per
cent have been utilised for the improvement of 21.36
per cent of the area targeted under the Desert
Development Programme; 36.78 per cent of the total
cost ofthe project has been released and of the released
fiinds, 79.47 per cent have been utilised for treating
25.91 per cent of the total targeted area. Under the
Drought Prone Area Programme, 36.52 per cent of the
total cost of the project has been released. Of released
funds, 65.25 per cent have been utilised for treating
44.55 per cent of the total targeted area.

Chaplet‘ 13 RURAL DEVELOPMENT 247
TABLE 13.21
Physical and Financial Progress
Activity Physical Achievement Financial Achievements
(Rx. in Zak/i)
Cultivation of medicinal plants, 1. One poly house has been constructed, another one is under construction and the 32.21
aromatic plants and flowers remaining cight are yet to be completed.
2. Three demonstration farms have been established for the plantation of medicinal
and aromatic plants.
3. 2500 orchids have been planted. 9000 chrysanthemums of nine different varieties
have been planted and successful rooting and multiplication of these plants have
been achieved. About 16,000 chrysanthemums have been sent to Delhi and
Chandigarh markets for sale.
4. One tissue culture laboratory is under constrtiction [or training S1-1Gs in tissue culture.
5. A district level society, namely, “The Mandi District 1-lerbs and Flower Promotion
Society”, has been set up.
Total 32.21
Scriculture 1. Establishment of thrcc technical scrvicc stations has been undertaken by thc 21.67
District industry Centre, Sericulture wing, Mandi.
2. Five hundred new families (in SHGs mode) have been identified for taking up
this activity.
3. Short-term training camps are being organised by the DRDA.
Total 21.67
innovative practices in 1. Livestock survey is being carried out.
animal husbandry 2. All the equipment required under the project for upgradation of 105 artificial 91.18
insemination centres has been procured.
Total 91.18
Grand Total 145.06
Source» Department of Rural Development, HP.
TABLE 13.22
Physical and Financial Achievements (till September 2002)
Progftlmrite Project Cost Not 0/ Targeted mat Funds Total Total Area
(in lakh) Watersheds Area (in Hec.) Re/eased (in In/ch) Expe/ndittlre (in lakh) Treated (in Hec.)
Integrate Wasteland Dev. Project 13971.79 422 261666 4656.04 3310.58 55890.27
Desert Dev. Pr(\grflmmE
Drought Prone Area Programme
(33.32)*
10496.00 371 117098 3860.629
(36.78)*
6430.00 23s 19806 2348.11
<3e.sz)*
(7l.11)**
3068.05
(79.47)”*
1532.217
(65.25)**
(21.36)***
30339.97
(2s.91)***
35579.04
<44.ss)***
Source” oeneitinent of Rural Development and Panchayat, miniienm Pradesh
Note: * taken with total project cost
‘* % taken with total funds released.
*** % taken with total targeted area.
Details of physical and financial achievements under
these three programmes are given in Table 13.22.
Issues
‘ The Central government While sanctioning a
project, insists that forest land should not be
more than 25 per cent and private land not more
than 50 per cent. It is suggested that watershed,
should cover all types of land, whether forest,
private, community or government, because it is a
geo-hydrological unit.
The cost norms should be revised because of hard
and peculiar geographical conditions, particularly
under the DDP, being executed in the tribal
districts of Lahaul & Spiti and Kinnaur. It is also
suggested that per hectare cost under IWDP and
DPAP should also be increased, considering the
geographical conditions of the state.

248
‘ Besides other activities relating to water harvesting
structures, irrigation schemes should also be
allowed to be taken up under the watershed
development project, because nothing can be
grown in hilly areas without assured irrigation.
‘ Instead of creating a parallel body i.e. Watershed
Association or Watershed Committee, a single
Panchayat should be given jurisdiction to execute
the projects through user groups, SHGs and the
village community.
~ For the sustainability of the project, the gram
panchayats and other local level institutions, such
as Mahila Mandala, Yuvak Mandala, SHGs should be
involved in post-project maintenance.
‘ For capacity building, the DRDA should ensure
that relevant time-bound training programmes are
organised for all functionaries.
‘ Desilting should be a continuing activity, as the
problem of silting is a perennial problem.
Problems are faced by Watershed projects in winter
because much of the area remains under snow for three
to four months.
Desert Development Project, Pooh, District Kinnaur
A Journey towards success
The watershed guidelines impress upon the
implementation of all watershed-based programmes with
active participation of the community. However, till I
joined the project in May 2000, community participation
was nil. Rather, the community was not even aware ofthe
full form of DDP, as a result the community gave several
sarcastic names to the project, depending upon the results
on the ground, such as Dal Ke Dakaro Paisa, Dal ke Daru
Piyo, etc. No community participation was possible
without awareness ofthe community, organisation of the
community into watershed associations/committees, user
groups and SHGs, training of the functionaries at all
levels. When I joined the project, there were four
functionaries at the PIA level, only two Junior Engineers
to implement 32 watershed projects, no watershed
committees.
One year and l0 months after I took over the project in
March 2002, l02 micro watershed projects were in hand
with an allocation of Rs. 2900 lakh. (Once the project was
streamlined and the desired level of expenditure was
achieved, 70 new watershed projects were sanctioned for
Pooh) Now, there are 12 official functionaries at the PIA
level, three watershed development teams (civil engineer
team I2 members), Agri/Horticulture/Forestry team six
experts, community organisation team, five community
organisers, 35 watershed associations have been organised
after generating detailed awareness in the community. The
watershed associations have one male and one female
HIMACHAL PRADESH DEVELOPMENT REPORT
member from each household of the Watershed area; all
watershed committees have been formed by watershed
associations unanimously and thcsc committees have
appointed watershed chairmen for all watershed
committees. Watershed associations have further organised
user groups, which are the actual implementing agencies.
The community organisers of the project have formed 60
SI-IGs, which are functioning ideally. These groups hold
their monthly meetings regularly. Thrift and credit norms
are being followed regularly. 45 groups have been given
revolving funds after proper gradation by watershed
dcvclopmcnt team mcmbcrs. This success is due to thc
seven day training, which was imparted to WDT
members, watershed chairmen and secretaries. The Desert
Development Project (DDP) now is working on the
modalities of taking up some income—generating activities
by exploiting the existing potential of the area. The
identified activities are traditional handloom cottage
industry, potato chips, chulli oil, horticulture-based cottage
industry and medicinal herbs.
The community has now understood the concept of a
holistic development approach. After the awareness
campaign, exposure visits to other successful watershed
areas and training of the community as a whole, the
Community has felt that watershed means not water or
installation of tanks as kuhls only, it is more than this.
There is need for mass scale plantations in the watershed
areas. Technology for raising vegetables during Winter has
been learnt and the community has decided to adopt trench
cultivation during winter for vegetables production. It is
hoped that within the project period the entire watershed
area can be covered under a modern drip/sprinkler
irrigation system.
i CAPT. J.M. PATHANIA
Project Director
DDP, Pooh
Indira Awaas Yojana (IA Y)
Under this centrally sponsored scheme an assistance
of Rs. 22000 is given to a below- poverty line (BPL)
family to construct a house. Earlier, the financial
assistance was provided only for construction of a new
house but, since 1999-2000, an assistance of Rs. 10,000
is also provided for conversion/upgradation of a kutcha
house in to a semi-pucra/pucaz house. The financial and
physical performance of the scheme in the state is given
in Tables 13.23 and 13.24
‘ The selection of the beneficiaries is done strictly
by the Gram Sabha.
– The beneficiaries are motivated to complete the
houses on time.
‘ The findings of the Concurrent Evaluation of IAY
have been circulated to all DRDAs for strict
compliance.

Chapter 13 RURAL DEVELOPMENT
‘ Sanitary latrines are constructed in every house
under IAY.
TABLE 13.23
Financial Performance (Rs in lakh)
Total A vailahle Erpenditure
Funds
SC ST SC+ ST Other Total
553»788 161.13 20.02 181.15 181.986 363.136 (82%)
SOIIYZY3. Department of Rural Development, HP.
TABLE 13 .24
Physical Achievements
Target Houses Completed Ilourer
Upgradated
SC ST SC+ ST Other Total
3901 559 74 633 482 1115 Z834
Sound?‘ Department of Rural Development. HP.
It is suggested that the present limit of Rs. 22,000
should be raised to Rs. 40,000 due to the specific
geographical conditions of the state.
Credit-cum Subsidy Housing Scheme
This scheme was launched on l April 1999, and it
aims financing the construction of houses for the SCs/
STs and the freed bonded labourers. The scheme is
being implemented in rural areas five km away from the
towns. The target groups under the scheme are rural
households having an annual income up to Rs. 32,000.
However, BPL households are given preference. In 2001-
2002, I58 houses were constructed against a target of
155 houses for which Rs. 67.69 lakh was given as
credit and Rs. 19.88 lakh as subsidy.
Other housing schemes implemented in the state
are:
‘ Innovative Rural Housing Scheme in Sirmaur
district.
‘ Innovative Rural Housing Project in Kullu
district.
‘ Innovative Housing Project at Solan.
‘ SAMAGRA Awas Yojana in Sirmaur district.
Rertructured Central Rural Sanitation Programme
The Government of India restructured the Central
Rural Sanitation Programme in April 1999, and reduced
the subsidy from Rs. 2000 to Rs. 500. A total of 353
249
schools and women complexes and 38 individual
latrines were constructed in 2001-02 at a total
expenditure of Rs. 55.73 lakh. Under the sanitation
campaign in Sirmaur district, 77 sanitary complexes for
women and school sanitation and 13 individual latrines
were constructed at an expenditure of Rs. 34.27 lakh.
The other important centrally sponsored schemes
implemented in the state are:
‘ National Social Assistance Programme; National
Old-Age Pension Scheme, and National Family
Benefit Scheme.
~ NORAD aided project titled Environmental
Conservation through Mahila Mandals in the
districts of Hamirpur, Kullu and Solan.
~ Rural building centres for DRDA, Hamirpur,
Kangra, Bilaspur and Mandi.
State Plan Schemes
Besides the Centrally sponsored schemes, the
government of Himachal Pradesh has been
implementing various welfare schemes for poor families,
These are:
– Chief Ministers Gratuity Scheme
– Rural Housing
– Rural Sanitation
~ Social Audit Scheme and
– Mahila Mandal Protsahan Yojana
Monitoring and Evaluation
Progress under different rural development
programmes is reviewed at various meetings by the
Ministry of Rural Development at the Chief Secretary
and Secretary levels. The state government has started a
process to hold district level review meetings under the
chairmanship of the Chief Secretary, where the progress
of different rural development programmes is reviewed.
An evaluation study on IRDP was assigned to
evaluation division of the Planning Department in the
year 2000 for assessment of the implement of this
programme in the Eighth Five Year Plan period (1992-
97). The main findings were as under;
‘ The names of the majority of the beneficiaries
(99.42%) were approved by Gram Sabha which
shows that selection of beneficiaries has been
done according to the guidelines as poorest ofthe
poor families were given priority in providing
assistance.

250
‘ Out of the total assisted beneficiaries, 51.66 per
cent covered under primary sector activities, 7.44
per cent under secondary sector activities and
remaining 40.90 per cent under tertiary sector
activities. The more coverage under primary sector
was due to the reason that in rural areas people
concentrate on dairy farming and other allied
agricultural activities.
– Majority of the beneficiaries (98.43%) face no
difficulties in obtaining loan.
~ Majority of the beneficiaries (93.l5%) reported
that no training with regard to operational skill/
maintenance of assets was imparted to them.
~ Majority of the beneficiaries (72.2l%) has fully
repaid their loan. Hence recovery position is
quite satisfactory.
‘ Marketing facilities were available in the village
for majority of the beneficiaries (84.31%)
‘ Majority of the beneficiaries (73.19%) were not
able to derive annual income of Rs. ll,000 from
the assets.
‘ It was found that none of the family members of
the sample beneficiaries were employed under any
other poverty alleviation programme.
The observations regarding implementation of
various poverty alleviation programmes made during
another CRRID project implemented in 88 panchayatx of
two blocks namely Nagrota Bagwan and Punchrukhi of
Kangra district are as under:
~ Failure to reach the right beneficiaries, pilferages
and leakages, procedural difficulties, inadequate
assistance, the beneficiaries using the money for
other unproductive purposes, the problem of
marketing the products, bank loan formalities,
lack of proper information about the schemes,
lack of training and human resource development.
– For proper identification of BPL families, the role
ofNGOs, Panchayats and the community must be
ensured. Transparency can be ensured by the
people’s participation and proper training of the
surveyors.
Sub-plans for the Development of
Scheduled Castes, Scheduled Tribes
and Backward Areas
Formation of a special component plan for the SCs
and Sub-plans for the tribal and backward areas is an
HlMACHAL PRADESH DEVELOPMENT REPORT
extension of the decentralised planning process. The
main objective is to ensure the speedy, equitable and
rational development of all areas.
Special Component Plan for Scheduled Caster
The Scheduled Castes in Himachal Pradesh account
for almost one-fourth ofthe state’s population and they
are concentrated mostly in the districts of Bilaspur,
Kullu, Mandi, Solan, Shimla and Sirmaur. These six
districts have more than 60 per cent of the Scheduled
Caste population of the state. Most of the Scheduled
Caste families depend on agricultural pursuits and
other low-income activities, such as sweeping, shoe-
making, basket-making, weaving, blacksmithy, poultry
and some similar occupations. A special component
plan for the Scheduled Castes was initiated in 1979-80
for improving their living conditions and promoting
their skills. Rs. 4.61 crore was earmarked for their
development. During the Sixth Plan (1980-85) a thrust
was given to this activity by providing ll per cent of
the total state plan outlay for the special component
plan. The Tenth Five Year Plan (2002-07) approach
paper clearly defines the goals and the strategy for
improving the quality of life ofthe Scheduled Castes in
the state. Literacy among the SCs is below the state
average. lt was lO per cent less than the state average
(only 53.20% in 1990-91). Among the women it was
still lower (41.02%) as against the state average of
52.17 per cent. The sex ratio was also low at 967
against the state average of 976 in 1990-91. Since the
implementation of the plan, there has been a marked
improvement in the infant mortality rate, health
services, literacy and skills among the Scheduled Caste
families. Much remains to be done to improve their
economic and social conditions by conserving their
assets, providing them with land for tilling, upgrading
their skills for improving productivity, ensuring the
minimum agricultural wage, provision of minimum
literacy and imparting of technical and entrepreneurial
skills, and promoting their capacities in the areas of
industrial and service sectors through self-
empowerment programmes. Further, there is need for
modernising their existing traditional occupations like
shoe-making, leather processing, basket-making,
carpentry and blacksmithy. On the social side, much
more shall have to be done to liberate this section from
untouchability, social discrimination and exploitation.
There is need for basic amenities, such as safe drinking
water, education and health, approachable roads and a
better public distribution system in their habitations.
There are almost 2613 villages (one-sixth of the total

Chapter l3 RURAL DEVELOPMENT
number of villages in the state) where more than 65 per
cent of the population consists of the Scheduled Castes.
The outlay for the Scheduled Castes component plan
for 2002-03 has worked out to Rs. 187 crore, which is
ll per cent of the total state plan. For the Tenth Five
Year Plan, the outlay is Rs. 1046.65 crore.
S ub-Plan for Tribal Areas
Kinnaur and Lahaul and Spiti districts, besides the
Pangi and Bharmaur tehsils of Chamba district, have
been declared tribal areas. These tribal areas fall in the
High Hill Zone having cold and dry weather conditions.
More than 40 per cent of the geographical area of the
state falls in the tribal belt which has a population of
less than two lakh. During the last Plan period, almost
one-eleventh ofthe state‘s plan outlay was allocated for
the development of the tribal areas under the “Tribal
Plan”. The Tenth Five-Year Plan (2002-07) has
envisaged in its approach paper the basic problems of
the tribal people and implementation of protective and
anti-exploitative measures for safeguarding their rights.
The government has accorded the highest priority to
education, health, promotion of social and cultural
values of the local communities, sustainability of
environment, creation of direct and indirect employment
opportunities, involvement of PRIs in development
activities, implementation of watershed development
programmes for irrigation and the revival of handicrafts.
Yet, much remains to be done for protection of their
land rights (when their land is acquired for major hydel
projects, a feeling of alienation arises among them),
promotion of credit facilities (due to non-institutional
indebtedness, they pay heavy interest to money
lenders), protection of forests (deforestation is creating
economic, environmental and social problems in this
tribal border zone) and rehabilitation of the displaced
people. (A substantial number of the people shall have
to be displaced from the catchment areas of major hydel
projects). To improve the quality of their life, there is
also need for poverty alleviation schemes implemented
through tribal panchayats.
The outlays for tribal sub-plan for 2002-O3 is Rs. 153
crore which is nine per cent of the total state plan. For
the Tenth Plan, the outlay is Rs. 856.35 crore.
Sub-Plan for Backward Areas
This sub-plan was introduced by the state
government during the Fifth Five Year Plan. The basic
criterion for the identification of backward areas was
remoteness and inaccessibility, besides the level of socio-
251
economic development and infrastructure backwardness.
The state government framed a comprehensive policy for
the backward areas in 1995-96, and accorded special
weightage to remoteness and inaccessibility (25 points),
demographic indicators (35 points), infrastructure
indicators (36 points) and agricultural indicators (4
points). The policy clearly elaborates the concept of
backward areas, area-based plans, beneficiary-based plans,
separate budgetary arrangements, administration of plans
and categorisation of areas (three categories i.e. backward
blocks (8), contiguous pockets (15) and dispersed
panchayats (109). Of the 3037 Gram Panchayats in the
State, 489 have been declared backward. More than four-
fifths of the backward panchayats (84%) fall in the
districts of Chamba, Kullu, Mandi and Shimla.
Successful efforts have been made to develop rural
infrastructure such as roads, power, irrigation, drinking
water and credit facilities in these areas.
Fifteen per cent of sectoral outlay has been
earmarked under this sub-plan for the development of
agriculture, social conservation, horticulture, minor
irrigation, food and civil supplies, animal husbandry,
social forestry, rural electrification, education, general
education, rural health, ayurveda and rural Water supply.
These sub-plans are playing an effective role in
modernising the rural economy of Himachal Pradesh
and can be treated as an integral part of the
development planning. Lastly, it can be said that rural
development is a joint venture of the public, private,
co-operative and corporate sectors. Any single sector
cannot effectively tackle all the problems of rural
development. Panchayati Raj lnstitutions, co-operatives,
non-government organisations, private companies and
corporations can jointly play an important role in the
process of development by complementing and
supplementing the functions and activities of the
government.
Summary and Recommendations
Himachal Pradesh is a state where 90 per cent ofthe
population lives in rural areas and almost 70 per cent
depends on agriculture which contributes only 23 per
cent to the Gross State Domestic Product at factor cost
at constant prices (1993-94). No development can be
successful if it is not built on the foundation of the
rural sector. In view of this, there is urgent need for
giving high priority to rural development, taking into
account the following recommendations.
‘ Ensure effective dissemination of information,
education and impart training to the elected

252
representatives of the PRIs for good governance
and management for overall rural development.
Besides the elected representatives, government
officials working with the PRls too need to be
trained. Though the government, non-government
organisations and civil society groups are
imparting such training, yet there is need for
joint training so that the impact is more effective
and transparent.
Ensure co-ordination between Panchayats,
government and NGOs to upgrade the skills of
the rural people and improve the quality of their
life by establishing rural enterprises catering to
their skills and needs.
Maintain and upgrade the existing rural
infrastructure and promote facilities such as cold
chains, marketing intelligence network to
facilitate the agro-processing industries.
The Government of India in certain cases provides
funds for the development of rural areas through
the agency of NGOs, whereas the PRIs, being the
real representative bodies of the people, are not
treated as NGOs. The Government of India
should abandon this approach and provide fi.inds
from all agencies, including international
funding, to the PRIs.
The state government is in the process of adopting
the central pattern of devolution of functions,
fiinctionaries and fiinds in respect of 29 items. The
Government of India is also required to devolve to
the PRIs similar functions in respect of schemes
implemented by various ministries of the
Government of India in the rural areas.
To discourage over dependence on funds from
outside, the PRls should be encouraged and
empowered to mobilise their own physical and
human resources.
Special efforts should be made to promote and
facilitate a network of elected women
representatives. Intra-state and inter-state
exposure visits of women representatives of PRls
need to be encouraged.
Agricultural reforms are a key element for
improving the economic condition of the small
and marginal farmers. The involvement of PRIs
in this process has a great scope.
HIMACHAL PRADESH DEVELOPMENT REPORT
‘ For better implementation of poverty alleviation
programmes, there is need for effective co-
ordination between the officials of various
departments and the PRIs.
– Gram Panchayats should be encouraged to involve
themselves actively in planning, implementing,
monitoring and evaluating the poverty alleviation
programmes for better results.
~ All poverty alleviation programmes at the village
level should be put at the disposal of the gram
panchayal and implemented with the help and co»
operation of the local-level bureaucracy. Further,
the Gram Panchayats should be selective in this
regard and take into account the needs of the
people and the scope of real employment
generation, before taking up the programmes for
implementation.
– For proper identification of the BPL families, the
role of the NGOs, panchayats and the community
must be ensured.
– An appropriate institutional and organisational
structure is a prerequisite for the success of a
rural development programme. Appropriate
technology skills, equitable access to production
inputs, services and credit are other prerequisites
for the success of a production-oriented
programme: A producer-owned and -controlled
integrated system of production, procurement,
processing and marketing is necessary to derive
full benefits from the backward and forward
linkages of these activities.
‘ Although, the government has been and will
continue to be the most important actor in rural
development, it alone cannot effectively tackle all
problems. The PRIs, co-operatives, voluntary
agencies and the private sector can play an
important role in the process of development by
complementing and supplementing the functions
and activities of the government.
Himachal Pradesh has a large deprived population,
consisting of marginal and small farmers, Scheduled
Castes, Scheduled Tribes and backward classes. This
segment ofthe population has to be brought into focus
for their uplift with special emphasis on their skill
upgradation, removal of unemployment and poverty and
vertical growth, to acquire productive assets for better
living on a sustainable basis.

Chapter l3 l RURAL DEVELOPMENT
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254 HIMACHAL PRADESH DEVELOPMENT REPORT