Rural Development: Pme NT

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Chapter 13 H H
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Himachal Pradesh can be classified into two distinctive To accelerate the pace of economic development and
zones on cultural grounds. The first one is inhabited by significantly improve the standard and quality of living
tribes or semi-nomadic, semi-agricultural and semi- of rural people, the government of Himachal Pradesh
pastoral people living in the great Himalayas. The took bold steps to improve their socio-economic
districts of Lahaul and Spiti, Kinnaur, Upper Shimla, condition. The government incorporated new policy
Upper Kullu, remote areas of Sirmaur, Chamba and initiatives and programmes in its budgets. New
Kangra districts fall in this zone. The people of these strategies were evolved to;
areas are an admixture of the Indo-Aryan or Mongolian
a) Raise farm productivity
stock. These are Kinnaures, Lahules, Gaddis, Gujars,
Lambas, Khampas, Bhots, Pangwalas and Swanglas. The b) Create the much needed rural infrastructure
other zone consists of the outer Himalaya or the c) Empower families below the poverty line by
Shivalik and mid-Himalaya. The people of this zone enlarging the scope of the programmes of poverty
have much in common with the people of the plains of alleviation and welfare of women, the Scheduled
Punjab and Haryana. The caste patterns, value systems Castes and Scheduled Tribes
and traditions are also similar to those of Punjab and
Haryana. The main caste groups in Himachal Pradesh d) Expand education and health facilities
are Rajputs, Brahmins, Kanets, Kulindas, Girths, Raos, e) Promote institutional finance
Rathis, Thakurs, Kolis, Holis, Chamars, Darains,
f) Upgrade technical skills
Rehars, Chanals, Lohars, Baris, Dagis, Dhakhis, Turis,
Batwals and some groups like Jats, Lubanas, Sainis, g) Strengthen rural institutions such as panchayats,
Nais, Jhiwars, Chimpas, etc. The tribals can be co-operatives and others.
categoriesed as Gaddis, Gujars and Bhots. These castes Successful implementation of various plans made a
are further classified as general castes, the Scheduled dent in rural poverty. Much improvement has taken
Castes, Other Backward Castes and the Scheduled Tribes. place in the provision of basic amenities and building
The rural society of Himachal Pradesh has its own up rural infrastructure.
identity and psyche regarding traditions, culture and The government of Himachal Pradesh has chalked
heritage. Therefore, within the overall rural development out its planning strategies mostly on the lines followed
strategies, there has to be an explicit recognition of its by the central government. The state government in its
identity. At the time of its formation in 1971, Himachal document on the Tenth Five Year Plan (2002-07) and
Pradesh was an economically backward rural state (93 the Annual Plan (2002-03) has strategically defined
per cent rural population in 1971). Its rural population areas, which need to be addressed and require the
was deprived of basic amenities such as health, highest attention. These areas are
education and drinking water. Rural infrastructure, i.e.,
rural roads, electricity, housing, transport, banking and • Improvement of financial position of the state
market network, was also very poor. Almost half the • Proper utilisation of its hydro-power generation
rural households were living below the poverty line. potential
232 HIMACHAL PRADESH DEVELOPMENT REPORT
• Breaking stagnation of agriculture and ornaments have almost vanished and the artisans have
horticulture abandoned this skill-based vocation. In the present era
of liberalisation, such distinctive works can be revived
• Development of tourism
through technical and managerial intervention. The
• Provision of safe drinking water people can be trained in these indigenous skills
• Connectivity to all villages through modern techniques.
• Tackling the unemployment problem Keeping in view the development that has taken
place in the past plan periods, much more remains to
• Introduction of information technology in be done to improve the quality of life in the rural areas.
educational and technological institutions Himachal Pradesh, with 90.2 per cent of its population
The contribution of Himachal Pradesh to India’s Net in the rural areas, according to the 2001 census (Table
Domestic Product (NDP) in 2000-01 (at current prices) 13.1), has a sizable deprived population consisting of
was estimated at 0.62 per cent only. According to the marginal farmers, landless labourers besides Scheduled
census of 2001, while nearly three-fourth of India’s Castes, the Scheduled Tribes and other Backward
population lived in villages, in Himachal Pradesh more Castes. This component of the population has to be
than four-fifths of the people live in rural areas. Almost brought into focus for uplift with special emphasis on
one-fourth of the state’s NDP comes from agriculture their skill upgradation, removal of unemployment and
and allied sectors. It shows the weak position of the vertical growth to acquire productive assets for better
primary sector of the economy, since, a majority of the living on a sustainable basis. Sector-wise allocation of
population lives in the rural areas and depends on funds during different plan periods shows that the
agriculture. However, agriculture is of a subsistence main stress has been on social services, energy,
nature and is unable to shape the level of living of the transport and agriculture (Table 13.2)
rural people. In this situation, the non-farm rural
sector, with its forward and backward linkages can TABLE 13.1
become an integral part of rural development in the
Rural Urban Population in Himachal Pradesh
state. But it has not received much attention. As a
result, a sizeable number of the people of rural areas, Year Total Population Percentage of
especially the youth, are migrating to urban centres, (in lakh) Total Population
inside and outside the state, in search of livelihood. To Total Rural Urban Rural Urban
stop the migration of the rural unemployed, it is 1971 34.60 32.78 2.42 93.0 7.0
essential to create better socially acceptable employment 1981 42.81 39.55 3.26 92.4 7.6
1991 51.71 47.55 4.49 91.3 8.7
opportunities by developing non-farm activities in the
2001 60.77 54.82 5.95 90.2 9.8
rural areas. To stop this trend, the basic facilities are
required to be utilised properly, wherever these exist, Source: Census of India.
and to be developed where these are non-existent. There

is need for mobilising and involving the community in For an integrated development of such a rural
the proper maintenance of the available facilities at the economy, the development of physical as well as social
local level under Panchayati Raj Institutions. infrastructure has an important role as it directly
contributes to employment generation and asset creation.
There is need for better co-ordination between
A better network of physical infrastructure facilities
government departments, non-government organisations,
(well-built roads, rail links, irrigation, power and
Panchayati Raj Institutions and private institutions to
telecommunications, information technology, market-
explore better opportunities of employment. The
network, processing of horticulture and vegetables
corporate sector can play a leading role by bringing in
produce, cold chain system and social infrastructure
resources, new technology, modern management and
support, viz, health and education, water and sanitation,
extension services, which can create employment
veterinary services and co-operatives) is essential for the
opportunities in the non-farm sector by training them
development of the rural economy. Tables 13.3, 13.4,
for the required jobs. For example, Himachal Pradesh
13.5 and 13.6 highlight inter-district disparities with
was a land of some rare handicrafts, and these goods
regard to some of the basic development indicators.
were exported to overseas markets. In course of time,
handicrafts such as Pattus (sheep wool shawls), Thobis Himachal Pradesh has comparatively better rural
(goat hair items), Kasida (embroidery goods) and silver infrastructure facilities, such as cent per cent rural
Chapter 13 • RURAL DEVELOPMENT 233
TABLE 13.2
Plan-wise Expenditure under Different Heads in Himachal Pradesh (Fifth Plan to Tenth Plan)
(Rs. in lakh)
Fifth Annual Annual Sixth Seventh Annual Annual Eighth Ninth Tenth*
1974-78 1978-79 1979-80 1980-85 1985-90 1990-91 1991-92 1992-97 1997-2002 2002-07
Agriculture programme 26.02 25.42 27.47 15.81 19.63 18.43 20.98 13.91 11.63 11.67
Co-operation and
community development 1.09 1.57 1.87 — — — — — — —
Water, irrigation and power 26.60 21.42 22.68 — — — — — — —
Industry and mining 3.53 3.43 3.28 3.08 3.22 2.93 3.46 2.47 1.47 1.02
Transport and communication 22.73 24.47 21.40 17.81 14.78 13.37 1494 12.56 14.10 15.90
Social services — — — — — — — — 40.68 47.51
Misc — — — — — — — — — —
Rural development — — — 4.67 3.71 3.46 3.81 3.34 3.92 4.03
Irrigation and flood control — — 5.85 5.39 6.55 6.39 4.24 4.02 4.40
Spec area programme — — — 0.08 — — — — 0.25 —
Energy — — — 26.97 26.55 18.04 12.92 18.89 16.03 12.21
Social and community services 16.72 21.69 20.82 22.44 — — — — — —
Scientific services and research — — — 0.03 0.07 0.10 0.21 0.14 0.09 0.06
Economic services 0.08 0.10 0.06 0.12 — — — — — —
General services 2.22 1.89 2.42 3.14 2.13 2.08 1.88 2.40 1.62 1.03
General economic services — — — — 1.80 3.98 4.41 7.39 6.18 2.17
Edu, sports, art and culture — — — — 7.41 10.20 11.79 13.00 — —
Health — — — — 3.28 3.90 4.85 4.65 — —
Water supply, housing urban
development and sanitation — — — — 10.61 13.63 12.47 14.91 — —
Information and publicity — — — — 0.25 0.27 0.56 — — —
Welfare of SCs/STs/OBCs — — — — 0.42 0.35 0.27 — — —
Labour and labour welfare — — — — 0.08 0.12 0.11 — — —
Social welfare — — — — 0.66 2.58 0.95 2.10 — —
Total (100) (100) (100) (100) (100) (100) (100) (100) (100) (100)
16214.10 6810.17 7945.36 66471.40 132474.75 37762.92 40482.00 34990.05 789672.00 1030000.00
Source: Five Year Plans and Annual Plans.

Statistical Abstracts of Himachal Pradesh, various issues.
Note: * - Plan outlay.
TABLE 13.3
District-wise Selected Socio-economic Indicators in Himachal Pradesh
Districts No. of % of % of Sex Density of % Age of Work Male Work Female Work % Age % Age
Inhabited SC ST Ratio Popu. Main Participation Participation Participation Workers of BPL
Villages Popu. Popu. (2001) % sq. km. Workers Rate Rate Rate Engaged Households,
(1995-96) (1991) (1991) (2001) in Total (2001) (2001) (2001) in Non- to Total
Popu. Agri, Households
(2001) Activities (1998-99)
Bilaspur 950 28.82 2.70 992 292 32.52 48.95 52.31 45.56 14.44 26.63
Chamba 1144 19.75 28.35 961 71 27.88 50.04 53.98 45.94 13.12 61.72
Hamirpur 1617 23.68 0.06 1102 369 29.34 49.90 51.06 48.85 14.18 24.17
Kangra 3620 21.17 0.14 1027 233 25.20 44.04 50.84 37.41 16.01 24.07
Kinnaur 228 26.87 55.58 851 13 50.79 60.54 65.62 54.78 18.85 26.57
Kullu 172 29.93 3.61 928 69 43.96 57.05 60.63 53.20 12.11 19.00
Lahaul & Spiti 272 7.11 76.97 804 2 57.88 63.50 68.39 57.43 28.78 37.93
Mandi 2818 28.98 1.21 1014 228 29.89 50.44 52.69 48.23 13.07 24.73
Shimla 2311 27.13 0.71 898 141 42.19 51.19 57.46 44.20 16.81 33.67
Sirmaur 965 30.18 1.61 901 162 38.38 49.30 56.49 41.32 12.73 22.89
Solan 2348 31.27 0.64 853 258 34.57 52.70 61.32 42.60 22.63 27.44
Una 552 22.46 0.01 997 291 26.60 45.03 53.02 37.01 16.74 19.06
H.P. 16997 25.35 4.22 970 109 32.36 49.28 54.70 43.69 - 27.59
Source: Statistical Abstract of Himachal Pradesh, various issues.

Census of India, Himachal Pradesh, 2001.
electrification, public distribution system and

TABLE 13.4
households using separate kitchens (Table 13.7). However,
Distribution of Total Rural Workers (2001) there are inter-district disparities in the accessibility of
Districts Cultivator Agricultural Worker in Other
basic facilities.
Labour Household Industry Workers
In the present economic situation, agriculture and
Bilaspur 71.67 1.77 1.57 24.99 rural development, especially agriculture and allied
Chamba 76.88 0.66 1.17 21.22
activities, are now poised for a paradigm shift. The core
Hamirpur 73.29 1.44 1.23 24.04
Kangra 59.15 6.90 3.25 30.70 factors that can bring forth tangible transformation
Kinnaur 66.67 2.20 1.81 29.32 are:
Kullu 80.58 2.64 1.17 15.61
Lahaul & Spiti 53.11 1.57 0.47 44.85 (a) Development of rural infrastructure, such as
Mandi 75.92 1.40 1.38 21.30 roads, power and communications for generating
Shimla 77.75 2.96 1.12 18.17 more employment opportunities at the local level
Sirmaur 76.45 2.57 1.09 19.89
Solan 64.45 3.14 1.22 31.19 (b) Development of village and cottage industries
Una 60.33 5.82 1.94 31.90
and agro-processing industries
H.P. 70.43 3.29 1.71 24.57
Source: Census of India, Himachal Pradesh, 2001.

(c) Skill upgradation through research and
extension and information technology so that
the rural people especially the youth can design
TABLE 13.5
means for their own betterment
Percentage of Workers and Non-workers in
Total Population (2001)
(d) Minimising social differences through collective
participation in rural development activities;
Categories Total Main Marginal Non- developing common programmes for village
Workers Workers Workers Workers
uplift and minimising economic and gender
Total 49.28 32.36 16.92 50.72 disparities in the rural society
Male 54.70 43.30 11.40 39.30
Female 43.69 21.08 22.61 56.31 To meet future challenges, It is now felt that rural
transformation can be hastened through the effective
Source: Census of India, Himachal Pradesh, 2001.
TABLE 13.6
District-wise Physical, Social and Economic Indicators in Himachal Pradesh
Districts % of % of % of % age of % of % of % of % of Agri % of % of % of % of % age of % of

Geographical Popu. to Holdings Area in Crime Panchayats Backward Cooperative Telephone Road Primary Govt. Bank Below
Area (sq. km) Total in Total Total Area Rate in Total Panchayats Societies in Connection Length School Employee Offices Poverty
of the State Popu. of no. of (in hec) (2001) Panchayats in Total Total in Total in Total in Total in Total in Total Line
(2001) State* Holdings (2001) Backward (2001) (2001) (2001) (2001) (2001) (2001) Households
(2001) (1991) Panchayats in Total
(2001) of State
(1998-99)
Bilaspur 2.10 5.61 (10) 5.63 5.27 8.28 4.48 2.66 3.50 4.21 4.61 5.54 5.09 5.42 6.10
Chamba 11.72 7.58 (5) 7.47 5.67 5.66 8.89 30.47 6.19 3.60 10.14 10.16 6.63 6.97 16.48
Hamirpur 2.01 6.78 (8) 8.01 7.66 5.69 7.08 2.66 10.45 7.21 4.43 4.76 5.96 6.97 7.05
Kangra 10.31 22.02 (1) 26.03 20.97 17.48 24.10 3.48 28.37 17.55 16.05 16.85 19.00 19.61 22.36
Kinnaur 11.50 1.38 (11) 1.12 1.43 1.14 2.04 - 1.65 1.56 3.78 1.78 2.24 2.32 1.01
Kullu 9.88 6.25 (9) 6.61 4.43 7.11 6.32 14.72 5.91 6.94 4.62 6.55 4.98 6.06 4.00
Lahaul & Spiti 24.85 0.55 (12) 0.46 0.64 0.98 1.35 - 2.46 0.12 3.88 1.97 1.59 1.03 0.85
Mandi 7.09 14.82 (2) 15.83 12.98 14.53 13.90 24.13 10.12 13.39 16.12 16.17 12.81 12.77 14.68
Shimla 9.22 11.82 (3) 10.44 12.60 15.84 10.90 14.72 8.09 22.50 13.83 15.20 21.88 15.74 11.10
Sirmaur 5.07 7.54 (6) 5.22 10.26 6.85 7.21 5.32 5.58 5.26 8.88 9.04 6.69 6.32 4.69
Solan 3.48 8.22 (4) 5.74 9.17 8.93 6.52 1.23 7.61 11.84 8.58 7.10 7.02 10.06 6.27
Una 2.77 7.34 (7) 7.44 8.91 7.51 7.21 0.61 10.12 5.82 5.08 4.89 6.16 6.71 5.40
H. P. 100 100 100 100 100 100 100 100 100 100 100 100 100 100
(55673) (6077248) (863437) (999099.68) (15516) (3037) (469) (2115) (225103) (26373) (10633) (123626) (775) (286112)
Source: Various Statistical Abstract of Himachal Pradesh.

Note: * Figure in the parenthesis are ranking of the districts according to population
TABLE 13.7
Rural Infrastructure in Himachal Pradesh
Rank States Having Better Ranks
Percentage of household having kutcha houses 8 Bihar, UP, MP, Orissa, North-east, West Bengal and Kerala
Households using separate kitchens 2 Kerala
Using toilets 5 North-East, Kerala, West Bengal and Punjab
Electricity 1 Nil
Piped water 1 Nil
Protected water 9 Eight other states
Households using PDS 3 Tamil Nadu and Kerala
Population below poverty line (rural) 3 Orissa and West Bengal
Proportion of total H.H. income spent on education 1 Nil
Source: India Human Development Report, 1999, NCAER.
TABLE 13.8
Caste-wise Distribution of Male and Female Representatives of
Gram Panchayats in Total Wards of Twelve Districts of Himachal Pradesh
Districts Male Female Grand Total

General S.C. S.T. B.C. Total General S.C. S.T. B.C. Total
Bilaspur 454 115 12 - 581 230 139 12 - 381 962

Chamba 472 221 286 - 979 316 72 177 - 565 1544
Hamirpur 676 213 - - 889 338 106 - - 444 1333
Kangra 2319 777 - - 3096 1080 256 - - 1336 4432
Kinnaur - 70 152 - 222 - 36 92 - 128 350
Kullu 499 151 28 - 678 262 193 3 - 458 1136
Lahaul & Spiti - 1 122 - 123 - 23 59 - 82 205
Mandi 1091 354 2 - 1447 780 444 21 - 1245 2692
Shimla 919 255 - - 1174 466 336 5 - 807 1981
Sirmaur 583 272 10 - 865 304 142 6 - 452 1317
Solan 552 260 5 - 817 265 158 2 - 425 1242
Una 642 215 - - 857 411 87 - - 498 1355
H.P. 8207 2904 617 - 11728 4452 1992 377 - 6821 18549
Source: Panchayati Raj Department, Himachal Pradesh, Shimla.
implementation of the multilevel decentralised system, recommendations of Balwant Rai Mehta Committee and
as envisaged in the New Panchayati Raj System, which a two-tier system was established in the state.
has Constitutional authority to plan and implement
With the passage of the 73rd Constitutional
programmes for rural development.
Amendment Act, 1992, the Himachal Pradesh
Panchayati Raj Act, 1994, came into force on 23 April
Rural Development and Panchayati Raj
1994, in place of the Himachal Pradesh Panchayati Raj
Panchayats have been in existence since time Act, 1968. New rules were framed under new Act.
immemorial. In the ancient period, the Panchayats Simultaneously, the State Election Commission and the
generally functioned as informal institutions to solve State Finance Commission were also constituted. The
intra-village and sometimes inter-village feuds, and two-tier Panchayati Raj system, namely Gram Panchayat
organised forums for village-level social development and Panchayat Samiti, gave way to the three-tier system.
and cultural functions. First elections to the Panchayats were held in December
1995.
In Himachal Pradesh, the Panchayati Raj system was
established in a statutory form in 1954 under the The second general elections to the PRIs were held
Himachal Pradesh Panchayati Raj Act-1952. After the in December 2000, and in the scheduled areas in June
reorganisation of the state on 1 November 1966, the 2001. At present there are 3037 Gram Panchayats, 75
1952 Act was replaced by the Himachal Pradesh Panchayat Samitis and 12 Zila Parishads with 24623, 1658
Panchayati Raj Act 1968, incorporating the major and 251 members respectively (Tables 13.8 & 13.9).
TABLE 13.9
Panchayati Raj Institutions in Himachal Pradesh - A Glance
Particulars Male Female Total Male

General Schedule Backward Tribal Total General Schedule Backward Tribal Total & Female
Castes Castes Castes Castes Castes Castes Castes Castes
Ward Members of
Gram Panchayat 8207 2904 - 617 11728 4452 1992 - 377 6821 18549
Panchayat Samiti Members 663 282 76 72 1098 330 155 42 35 560 1658
Zila Parishad Members 98 41 11 14 164 48 24 8 7 87 251
Pardhans of Panchayat 1233 501 147 130 2011 615 270 77 64 1026 3037
Chairpersons Panchayat Samitis 29 12 3 4 48 15 7 2 3 27 75
Zila Parishad Chairpersons 5 2 - 1 8 1 1 1 1 4 12
Source: Panchayati Raj Department, Himachal Pradesh, Shimla.
The 73rd Constitution Amendment Act, 1992, has Horticulture, Industries, Irrigation and Public Health,
enabled the PRIs to assume the role of self-governing Public Works, Revenue, Rural Development and Social
institutions at the micro level of the administration for and Women’s Welfare, to the PRIs on 31 July 1996.
decentralised planning and management. It provides an These powers relate mainly to planning and execution
arrangement for the association of rural voters, both and monitoring of schemes.
men and women, in governance by managing the local
The government has empowered the Gram Panchayats
affairs in a more meaningful manner that conforms to
to enquire and give reports on grassroot level
local wishes and aspirations. This constitutional status
government functionaries, such as peon, bailiff,
of PRIs has also empowered women, the Scheduled
constable, head constable, chowkidar, patrol of the
Castes and the Scheduled Tribes in the position of
irrigation department, forest guard, patwari, vaccinator,
chairpersons by providing reservation.
canal overseer, gram sewak, gram watcher and panchayat
The Himachal Pradesh Panchayati Raj Act, 1994 gives secretary. The panchayats are also empowered to hear
greater importance to the Gram Sabha. A minimum of and decide cases relating to minor offences under the
four general meetings on the first Sundays of January, Indian Penal Code (IPC). In reality, the Gram Panchayats
April, July and October have been made mandatory and have been delegated powers only to report on the
the family has been made the unit for determining the physical attendance of grassroots level functionaries
quorum of Gram Sabha meetings. For every ward, an such as patwaris, forest guards, school teachers, water
Upgram Sabha has also been constituted, which must carriers, water guards and panchayat secretaries in their
meet twice in a year to discuss local issues and to assigned areas of work.
suggest viable solutions. It will also nominate 15 per
The other important delegated functions are:
cent of the families for the general Gram Sabha meeting,
and one-third of the participants shall be women. The • Gram Panchayats are empowered to hear and decide
Gram Panchayats and Panchayat Samitis shall prepare cases relating to minor offences under the IPC.
development plans for their areas, which will be • Gram Sabhas have been empowered to consider
consolidated at the Zila Parishad level and submitted to and make recommendations and suggestions to
the District Planning Committee (DPC). For efficient gram panchayats in respect of the annual statement
functioning of the PRIs, rules have been framed for of accounts, and other related issues.
setting up standing committees at all the three levels.
Besides this, administrative and judicial powers have • Constitution of vigilance committees of the Gram
also been delegated to the panchayats. Sabha to supervise the works, schemes and other
activities of the Gram Panchayat.
Delegation of Powers and Functions • Delegation of powers to the Gram Panchayats to
The state government devolved powers, functions execute works up to the value of Rs. 50,000
and responsibilities relating to 15 departments, namely without any external sanction and development
Agriculture, Animal Husbandry, Ayurveda, Education, works costing up to Rs. 5 lakh to be executed by
Food and Supply, Forest, Health and Family Welfare, the Gram Panchayat.
TABLE 13.10
Recommendation of First State Finance Commission
(1996-97 to 2000-01)
Devolved Functions Grants Taxes
I. Delegated functions of: = 3750.00 1. Honorarium 1) Raise resources through taxes

(1) Agri Deptt (a) GPs representatives = 788.95  and levies
(2) Animal Husbandry (b) PSs representatives = 19.45  808.40

(3) Agurveda & Homeopaths 2) Fix minimum and maximum cash
(4) Education 2. Office Expenses tax to be levied in the rural
(5) Fishery (a) GPs = 606.53  areas.
 650.48
(6) Forest (b) PSs = 43.95 
(7) Health & Family Welfare
(8) Horticulture 3. Construction of Zila Parishad Buildings
(9) Industry 300.00
(10) Irrigation & Public Health
(11) Public Works
(12) Rural Development
(13) Social & Women Welfare
II. Rural Infrastructure Maintenance
Corpus = 1280.00
(1 per cent of the capital cost of assets)
Total = 5030.00 = 1758.88
• The Panchayat Samitis are supervising the allowed the Gram Panchayats to levy taxes, fees and
implementation of Indira Awaas Yojana. duties in their areas subject to the maximum rates of
such taxes specified by the government. The Second
• The Zila Parishads will evaluate all poverty
Finance Commission was constituted on 25 May 1999.
alleviation programmes and coverage of women,
According to the recommendations of the First State
SC, ST and BPL families under these programmes.
Finance Commission and the Tenth Finance
• Gram Panchayats shall prepare micro-plans Commission, Rs 8.05 crore is being released to the
proposing development intervention which will be PRIs annually to discharge the delegated functions. The
approved by the Gram Sabha. Eleventh Finance Commission has awarded Rs 1313.38
lakh annually for the period 2000 to 2005. The state
• Formation of seven standing committees, namely
government has earmarked an amount of Rs. 57.00 lakh
Public Works Committee, Health and Welfare
for the construction of Zila Parishad Bhawans, Rs. 193.34
Advisory Committee, Village Education
lakh to meet the office expenses of all the three tiers of
Committee, Forest Committee, Agriculture
PRIs and Rs. 689.65 lakh for honorarium to be paid to
Production Committee, Irrigation and Public
the elected representatives of PRIs. In addition, the
Health Committee and Food, Civil Supply and
state government is also providing a grant of Rs. 561.17
Consumers Committee.
lakh on account of honorariums to panchayat chowkidars,
Financial Devolution panchayat sahayaks , tailoring mistresses and junior
engineers of the Panchayats.
The District Planning Committees (DPCs) have been
constituted by the state government in all districts and Himachal Pradesh is one of the states of India, which
ministers of the state government have been designated give a monthly honorarium to the elected representatives
as chairpersons of the DPCs. For empowering the PRIs of PRIs. It gives an honorarium of Rs. 2700, Rs. 1250
and to make them financially sound, the state and Rs. 750 to the chairpersons of Zila Parishads,
government has accepted most of the recommendations Panchayat Samitis and Gram Panchayats respectively. For
of the First Finance Commission. The Commission the vice-chairpersons of all the three tiers, the
recommended the devolution of functions involving an monthly honorarium is Rs. 1800, Rs. 1000 and Rs. 650
expenditure of Rs. 5030 lakh for a period of five years respectively. Members of Zila Parishads and Panchayati
from 1996-97 to 2000-01 (See Table 13.10). In its Samitis are given Rs. 1250 and Rs. 750 each as monthly
recommendations, the commission has suggested that honorarium. Members of Panchayats receive an
the state government should consider fixing the honorarium of Rs 100 per meeting up to two meetings
maximum rates for each tax. The state government has in a month.
TABLE 13.11
Revenue and Expenditure of Gram Panchayats: Comparison
Particulars Himachal Pradesh Punjab
No. of Gram Panchayats 3037 12369

Rural Population per Panchayat 1800 1320
Average No. of Panchayat Members (including Pardhan & Up-Pardhan) 8 7
Revenue
i) Revenue of (2001-02) (in lakh) 7958 18732*
ii) Revenue per Panchayat (in lakh) 2.62 1.51
iii) Per capita Revenue (in Rs.) 145.00 115.00
iv) Percentage of Revenue Collection
(a) Taxes 2.19 0.73
(b) Non Taxes 7.57 38.16
(c) Grants-in-aid 9024 61.11
Total 100.00 100.00
Expenditure
(i) Expenditure (in lakh) 6564 14078
(ii) Expenditure per Panchayat (in lakh) 2.13 1.14
(iii) Per Capita Expenditure (in Rs.) 120.00 87.00
(iv) Percentage of Expenditure on
(a) Office Expenditure 3.50 2.92
(b) Developmental & Other Activities 96.50 97.00
Total 100.00 100.00
Source: Annual Administrative Report (2001-02) Panchayati Raj Department, HP, Shimla.
Report of the Second Punjab State Finance Commission, Feb 2002, Government of Punjab, Chandigarh.
The financial resources of the PRIs are grants-in-aid beginning, the Panchayats have been treated as
from the government, house tax, tax on extraction and executing agencies. Even if powers are given to
export of sand, stone, bajri and slates, excise cess, land the PRIs, these cannot be brought into effect
revenue, water charges, one per cent contingency, without a political will.
interest money, Teh-Bazari from shopkeepers, service fees
• Since the officials deputed to PRIs are not put
and income from own assets. Data show that only 2.09
under the direct administrative control of the
per cent of the funds are generated by the PRIs through
panchayats, the officials working in a bureaucratic
taxes and almost 90 per cent of the revenue comes from
network take it for granted that there is no need
grants-in-aid from the centre or the state government
to share power with the elected representatives of
and only eight per cent from other sources (Table 13.11).
the PRIs.
The first State Finance Commission has done little
• Devolution of administrative responsibility to the
to review the fiscal relations and to suggest a way to
PRIs without a commensurate devolution of
provide finances to the local bodies. The result has
resources may result in limited reforms. Though,
been apathy to implementing the recommendations and
the State Finance Commission puts greater
that has made the Panchayats dependent on resource
emphasis on internal revenue mobilisation, an
transfers from the state. That is the reason why:
effective and appropriate mechanism has not been
• Administrative support to the District Planning suggested. However, rapid devolution of financial
Committees is not forthcoming from the responsibility may create problems of accountability
bureaucratic network. Political support too is not and resort to corrupt practices. Thus, a gradual
very enthusiastic. Untied funds should be given approach for financial devolution in phases
to the panchayats on a large scale so that through proper institutional arrangements is
development works could be started according to appropriate to ensure proper accountability.
the needs of the people.
• Expenditure assignments need to be more
• Only certain functions, not powers, are being decentralised than revenue collection. Further,
devolved to the Panchayats. Thus from the very greater local accountability and direct visibility of
benefits at the local level encourage greater government has decided to impart training to all newly
resource mobilisation. Often, effective elected office-bearers of the PRIs from the first year of
decentralisation also fails to mobilise adequate their tenure. Accordingly, office-bearers of Zila
local resources. Therefore, more than resource Parishads and Panchayat Samitis are imparted training
mobilisation, strengthening of the Gram Sabha to at the Himachal Institute of Public Administration
prevent misappropriation at the grassroot level is (HIPA), and members of Panchayat Samitis and
crucial. chairpersons and vice-chairpersons of Gram Panchayats
at the district level and at the Panchayati Raj Training
• There are growing apprehensions among the
Institutes at Baijnath and Mashobra. Training to the
leadership of different political parties about the
members of Gram Panchayats is provided at the block
participation as well as development related role
level. The state government has imparted training to
of the elected representatives of the PRIs at the
one-fourth of the PRIs representatives since the
lower level, as the leaders may lose their political
election of these bodies in 2000. Of the 26,532
authority in rural development programmes.
representatives, 61 per cent of the Zila Parishads
Therefore, the test of democratic decentralisation
members, 96 per cent of the Panchayat Samiti members,
lies in the extent to which members of the Gram
26 per cent of the Pardhans and Up-Pardhans and 89 per
Sabha will participate in the political process and
cent of the Panchayat members are still without
self-governance.
training.
Moreover, the objectives of the Panchayati Raj System
could be revitalised by transferring more funds, Approaches to Training and
functions and functionaries as provided in the 73rd Development for Capacity Building
Constitutional Amendment Act-1992 and Himachal The Panchayati Raj System in Himachal Pradesh is
Pradesh Panchayati Raj Act, 1994. In the changed working under the guidelines set by the State
situation, the PRIs will have to be viewed as Panchayati Raj Act. It is imperative to increase and
institutions of local self-government, not as upgrade the knowledge, administrative and technical
implementing agencies for central and state government skills, leadership qualities and governance capabilities of
programmes, but as institutions that prepare and members of PRIs through education, research and
implement micro-plans. Active participation of women, training for planning and implementing programmes
the Scheduled Castes and Scheduled Tribes has to be concerning the 29 subjects mentioned in the Eleventh
ensured in decision-making so as to build, promote and Schedule. These subjects could further be clubbed into
empower a new leadership of these sections. For this, five clusters, viz., agriculture and allied activities, rural
the PRIs will have to be strengthened with clarity industrialisation, infrastructure development, human
about their role, the system of governance, development and social welfare; and gender development
accountability, transparency and interlinkages. (Annexure 1). Once these elected representatives are
Therefore, to strengthen the Panchayati Raj system and converted into more effective human resources, they
its institutions, the state must ensure effective transfer will become the trainers for members of the Gram
of functions, finances and functionaries to the PRIs, Sabhas (co-ruler in rural governance). This will convert
empowerment of the Gram Sabhas, and strengthening every rural adult into a valuable human resource capable
the District Planning Committees. There is also need to of accelerating the rural development process and its
integrate the development funds allotted to members of sustainability.
Parliament with the funds of Zila Parishads, and to
Though, the state government is making efforts to
ensure training of all newly elected representatives
impart training to the representatives of the PRIs, it
within a year of their election and to organise refresher
has not yet developed an integrated or holistic model
courses periodically. All this will add up to building the
for rural development. For this there is need for setting
capacity of the PRIs and their members without which
up or developing the existing centres for conducting
rural development will be slow and remain incomplete.
research on issues and problems of the rural society
and suggest viable solutions. These centres could
Capacity Building
impart training and education to representatives of local
Training governance (PRIs), co-operatives (dairy, fishery, forest,
In order to make the representatives aware of their floriculture, tourism and processing), Mahila Mandals,
functions, powers and responsibilities, the state Parivar Kalyan Salahkar Samitis, Youth Clubs and other
TABLE 13.12
Action Plan for Education, Training and Empowerment of the Elected Representation of PRIs
Particulars No. of PRIs Total No. of Elected Proposed No. of Expenditure Per Participant Total Expenditure Required
Representatives Workshops (in Rs.) (in Rs.)
Gram Panchayats 3037 24623 492 1500 3,69,34,500

Panchayats Samiti 75 1658 75 2000 33,16,000
Zila Parishads 12 251 12 2500 6,27,500
Total 3124 26532 579 - 4,08,78,000
Note: Based on CRRID’s Training Programme.
stakeholders if any, about their role and responsibilities • Panchayati Raj concept, historical perspective,
and also promote appropriate rural technologies and main features of the 73rd Constitutional
skills for human development. At present, Himachal Amendment and the Himachal Pradesh Panchayati
Pradesh needs a long-term policy for the development of Raj Act.
human resources, through education, training and
• Gram Sabha and its role.
empowerment of grassroot level institutions, especially
PRIs, and creation of a congenial socio-economic, • Gram Panchayat : powers, functions and
institutional and political environment. Himachal responsibilities.
Pradesh has two training institutes, at Baijnath and at • Power and responsibilities of Pardhans, Up-pardhans
Mashobra, which cater mainly to the training needs of and members of panchayats.
development functionaries of Panchayats and the office-
• Gram Panchayat meetings, quorum, agenda
bearers of Zila Parishads , Panchayats Samitis and
preparation and its circulation, rules and
Panchayats. These are grossly inadequate to meet the
regulations for maintaining discipline and taking
training requirements of the elected representatives of
decisions.
Gram Panchayats. This conclusion is derived from the
experience of CRRID in conducting the training and • Statutary committees and sub-committees.
education workshops for representatives of PRIs in • Duties and responsibilities of the panchayat
Punjab. secretary.
At present, Himachal Pradesh has 24,623, 1658 and • Rural development, central and state sponsored
251 members of Gram Panchayats, Panchayats Samitis and programmes and schemes.
Zila Parishads respectively. An estimated sum of Rs. 4
• Maintenance of records: cashbooks, receipt books
crore will be needed for a one-time training programme
and assets created.
(Table 13.12). It is also necessary to build a
reorientation-training programme, for which a separate • Concern for environmental degradation, especially
budget should be worked out every year. deforestation.
• Planning, its need and relevance, multilevel
Course Contents of PRI Training
decentralised planning process of the village plan,
The Panchayati Raj system is meant not only for its formulation and implementation.
decentralisation of power and the people’s participation
• Preparation of budget, its approval and execution
but also for accelerating rural development and
and resource mobilisation.
strengthening the planning process at the micro level.
The PRIs have been made responsible for promoting • Rules, regulations and procedures for purchases,
development and social activities, which are listed in maintenance of accounts and audit of accounts.
the 11th Schedule of the 73rd constitutional amendment. • People’s participation in the development process.
This is an integrated model of economic development
• Gender issues.
with social justice, based on a decentralised planning
system. Therefore, for rural development and decentralised • Rural leadership: emerging patterns in rural
planning, proper training of the representatives is leadership, importance of democratic values and
necessary. This should include: ethics in grassroot level leadership.
• Good governance; role of panchayat and village gainful employment utilisation of local resources,
functionaries. introduction of modern-technology industries and micro
• Computer application in local governance. planning under the Panchayati Raj setup with
decentralisation of finances and delegation of powers.
• Social and other problems: their management by
the panchayat. To explore employment opportunities in the rural
areas, there is need for a study of the potential of rural
• Co-ordination with Non-Government Organisations industrialisation in the context of the 73rd amendment.
and other bodies. The demand for encouraging the setting up of rural
• Social mobilisation, human resource development industrial enterprises is going to be generated with the
through skill formation, promotion of education mandate to plan and implement the work plan on
and health infrastructure/facilities and protection subjects transferred to the PRIs. A close look at the 29
of the interests of those in the grip of grinding subjects in the Eleventh Schedule provides a clear
poverty and indebtedness. picture of the potential of setting up all types of
industries in the rural areas. Now is the time for the
Some Other Socio-economic Factors state government to consider it seriously. The state
government should also hold dialogue with
The social factors that dominate the style of living
international organisations like the International Labour
and the working of the state, when compared with
Organisation (ILO) and the corporate sector or big
Indian standards, are better in some respects but there
industrial houses to work out operational plans for
is need for restructuring the following areas, according
capacity building and clearly designed operational
to the spirit of decentralisation, and for overall rural
strategies for promoting enterprises for the manufacture
development of the state.
of products, demand for which is going to be generated
Indigenisation of Rural Education by decentralised activities. The operational strategy is
sure to get the support of the central government in
In the light of the 73rd Constitutional Amendment view of its plan to have a National Programme for Rural
time has come when rural development programmes Industrialisation (NPRI) and to set up 100 rural
must take the lead. The National Council of Rural clusters every year to give a boost to rural
Institutes (NCRI) has started considering introduction industrialisation in the context of a rural-urban
of rural higher education programmes, primarily based integrated economic complex. Besides the promotion of
on the New Education (Nai Talim) concept in accordance cottage industries and handicrafts, a good network of
with local needs. The people have not so for been engineering and foundry industries, agro-based and
made part of the mainstream higher education, livestock based industries can be created in Una,
covering research, teaching, extension and networking. Hamirpur, Kangra, Bilaspur, Sirmaur and Solan
With the introduction of such rural education districts. The districts of Kullu, Shimla, Chamba,
programmes, the Panchayai Raj system will get the Mandi, Bilaspur and Solan are suitable for horticulture
required strength for understanding and resolving local and forest-based industries. The tribal areas of Kinnaur,
problems. Rural problems of Himachal Pradesh, are Lahaul-Spiti and Chamba, besides Kullu and Shimla, are
different from those of other states. In the context of suitable for handicraft units.
rural development, indigenisation of concepts and
theories is essential for understanding and resolving The slow growth of the rural non-farm sector can be
the issues that confront the state government, the PRIs attributed to the low CD ratio (24.4 in 2000) in rural
and the stakeholders. This calls for social science Himachal Pradesh (Table 13.13). This sector has the
research in Indian experience and reality, particularly potential of generating more employment. There is need
relating to the rural areas. Such an approach in social for providing credit to village-based cottage and small-
science research is likely to bring rural transformation scale industries, agro-processing units, transport and
at a faster pace. other services.
In the absence of an institutionalised banking
Rural Industrialisation system, the rural people especially the marginal farmers
In the present situation, rural development requires and the underprivileged sections, such as the Schedule
a positive change in the rural areas both qualitatively Castes and Scheduled Tribes approach moneylenders
and quantitatively. This is possible only by providing and traders for their credit needs. It has been seen that
TABLE 13.13
Number of Branches, Deposits and Credit Deposit Ratio in All Commercial Banks for the Year 1990 and 2000
(Rs. in lakh)
Name of the State/India Nature of No. of Branches Deposits Credits Credit-Deposits Ratio (%)
Bank Branches 1990 2000 1990 2000 1990 2000 1990 2000
Himachal Pradesh Rural 626 657 83916 394326 29512 96285 35.2 24.40
(88.3) (84.5) (69.4) (63.9) (67.4) (68.1)
Total 709 778 120970 617464 43810 141372
Haryana Rural 736 697 85505 344318 58109 143535 67.95 41.68
(57.8) (46.7) (24.9) (20.2) (28.0) (20.3)
Total 1273 1491 343324 1705250 207801 706137
Maharastra Rural 2491 2309 148237 602134 111083 351640 74.93 58.40
(43.7) (37.1) (4.5) (3.9) (4.9) (2.7)
Total 5689 6216 3281284 15299611 2276369 12820100
All-India Rural 34184 32719 2623364 12044675 1606785 4739602 61.25 39.35
(56.50) (50.00) (15.3) (14.6) (15.4) (10.1)
Total 60515 65521 1719439 82213276 10431193 46903171
Source: Banking Statistics, Basic Statistical Returns Volume 19 March 1990. Banking Statistics, Quarterly Handout – March 2000.
Note: Figures in parentheses represent the share in rural region to the total of all the regions.
such credit does not help in capital formation and is rural environment and other socio-economic indicators;
used for consumption and meeting the daily needs of It has become necessary that information technology is
the rural people, which has not helped the growth of made a part of the training of the rural youth.
the non-farm sector.
Rural Poverty Alleviation Programme
At this stage, micro-credit may become a successful
programme to realise the social agenda of the banking The basic objectives of the poverty alleviation
sector. Here, the role of the PRIs, co-operatives and programme are to provide income-yielding assets and
NGOs can be acknowledged as a catalyst. These bodies skills, to ensure employment opportunities; and to
can stand for guarantee for the loans advanced to ‘Self improve the quality of rural life. To achieve these
Help Groups’. This will ensure timely repayment and objectives, several poverty alleviation schemes have been
reduce the cost through participatory approach. started from time to time. The emphasis in rural
development has progressively shifted from growth to
Rural Informatics welfare and then from responsive to an integrated
approach.
Information technology is an integral part of the
future development process, especially for rural Poverty alleviation has always been the main agenda
development and so are the new concepts and contents of the policy planning of successive governments in
of ‘Governance Information Technology’. The Seventh Himachal Pradesh. Various programmes of the central
Five Year Plan Document (1985-90) has recognised that and state governments have been implemented. Due to
information technology has a facilitative role to play in these efforts, the poverty figure in the state, according
providing information about the Intensive Rural to Planning Commission estimates, has been decreasing.
Development Programme, development problems and In 1977-78, the percentage of the states population
possibilities. All components of rural development, viz., below the poverty line was 32.45, which came down to
agricultural growth, infrastructure development, human 16.39 in 1983, 15.46 in 1987-88 and 7.63 in 1999-2000
resource development, rural industrialisation and (Table 13.14). On the basis of a BPL survey, conducted
grassroot level rural governance can directly or indirectly by the state government in 1998-99, the percentage of
benefit from information technology by focusing families living below the poverty line has decreased
attention on improvement of production, consumption from 42 in 1981 to 26.69 in 1998-99. The survey shows
and social services. Computerised information can be that of the 2,86,447 identified poor families, 1,06,468
used in decision making at the village, block, and (41.13%) belonged to the Scheduled Castes, 10,801
district levels, for maintaining land records, forestation, (4.17%) to the Scheduled Tribes and the remaining
beneficiary details, development schemes, rural banking, 1,41,590 (54.70%) were from other categories. The
results indicate that poverty still persists in the state lakh and Rs. 966.67 lakh as subsidy and credit
and its prevalence is more among the unprivileged respectively. Besides this, 2707 groups were formed
sections of society consisting mainly of marginal and since the inception of the programme, of which 563
small farmers, agricultural labourers, rural artisans, the groups consisting of 5503 BPL members have been given
Scheduled Castes, the Scheduled Tribes, physically Rs. 377.221 lakh and Rs. 1074.39 lakh as subsidy and
handicapped persons and women. Hence, more serious credit respectively.
efforts are required for poverty alleviation and
The physical progress of this scheme is shown in
employment generation in the rural areas. The Tenth
Table 13.15. The total number of swarosgaris assisted
Five Year Plan of Himachal Pradesh envisages efforts to
till to December 2002 was 33393 and the scheme
reduce poverty and provide rural employment to the
particularly focuses on vulnerable groups among the
poor. For this, the involvement of the PRIs in
rural poor. Accordingly, 38 per cent of the beneficiaries
implementation, supervision, monitoring and evaluation
belong to the SCs, about 11 per cent to the STs and
shall be ensured. The PRIs and NGOs shall be closely
almost one half are women. The SGSY is being
associated in planning and execution of rural
implemented by the DRDA through the Panchayat
development programmes.
Samitis.
TABLE 13.14
TABLE 13.15
Poverty Ratio in Himachal Pradesh and India
Financial and Physical Achievement under SGSY
Year 1999-2000 Poverty (Total) Rural Urban
1999-00 to 2002-03 Per cent
(Rs. in lakh) to Total
Himachal Pradesh
1999-00 7.63 7.94 4.63 Total Funds Available 3364.54 —
1993-94 28.44 30.34 9.18 Total Expenditure 2446.152 72.59
1987-88 15.46 16.28 6.8 Total Beneficiaries/
1983-87 16.39 17.00 9.25 Swarogaries Assisted (No.) 33393 —
1977-78 32.45 33.49 19.47 SCs 12715 38.07
India STs 3802 11.38
1999-00 26.10 27.09 23.62 Women 16732 50.11
1993-94 35.97 37.27 32.36 Handicapped 129 0.38
No. of Groups Formed 4613 —
1987-88 39.34 39.06 40.12
No. of Women SHGs Formed 390 —
1983-87 44.76 45.61 42.15
No. of SHGs taken up Economic Activities 1479 —
1977-78 51.81 53.07 47.40
No. of Women SHGs taken
Source: Report of the Expert Group on Estimation and No. of Poor, Perspective up Economic Activities 158 —
Planning Division, Planning Commission, Government of India,
New Delhi, July 1993. Planning Commission, Government of
India.
A total of 4613 Self Help Groups have been formed,
of which 390 are women’s groups. The performance of
The financial and physical achievements of some utilisation of central allocation is satisfactory. The
major centrally and state sponsored schemes during the projects/schemes, being taken up by the groups or
plan periods are briefly discussed below: individual swarosgaris have been selected keeping in
view the backward and forward linkages.
Swaranjayanti Gram Swarozgar Yojana (SGSY)
The scheme aims at covering 30 per cent of the BPL Sampoorn Grameen Rozgar Yojana (SGRY)
families in each block during 1999-2000 to 2003-2004 The objectives of the SGRY are to provide additional
and envisages that the monthly income of an assisted wage employment and food security, in the rural areas
family will increase by at least Rs. 2,000. SGSY adopts along with the creation of durable community, social
a project approach for key activities. The selection of and economic assets and infrastructure. The programme
key activities is based on the cluster approach and is self-targeting and will be available to all the rural
resources, occupational skills and availability of poor (BPL/APL) who are in need of wage employment
markets. and are willing to engage in it. Preference will be
For 2001-2002, a target of credit mobilisation of given to the poorest among the poor, women, SCs/STs
Rs. 20 crore was earmarked. Till March, 2002, 3588 and parents of child labour withdrawn from hazardous
individual swarosgaris were assisted and given Rs. 220.89 occupations.
Under the scheme, 5 kg of foodgrains (in kind) is to Reasons for Slow Progress of the Scheme*
be distributed as part of the wage per manday. The
• In this hilly state some areas are far-flung and
remaining part of the wages is to be paid in cash to
snow bound. Therefore, the working season is
ensure the notified minimum wage.
very limited.
SGRY is Executed in Two Streams • Foodgrains allocated under the scheme have often
been received two three months after the issue of
The first stream is being implemented at the district
sanction letter by the Ministry of Rural
and intermediate Panchayat level; 50 per cent of the
Development, Government of India.
funds are to be earmarked (out of the total funds
available under the SGSY) for distribution between the • The scheme could not pick up in the introductory
Zila Parishads and intermediate-level Panchayats year of the scheme. Implementing agencies (PRIs)
(Panchayat Samitis) in the ratio of 40:60. (Of the 50 per have taken a long time for approval of shelf of
cent funds under the first stream, 20 per cent are to be work.
utilised by the Zila Parishads and 30 per cent by the
• The lifting of foodgrains is slow due to late
intermediate-level Panchayats)
release by the Food Corporation of India. Hence,
The second stream is being implemented at the the Ministry of Food and Consumer Affairs,
Village Panchayat level; 50 per cent of the funds Government of India, should ensure quick release
available under the SGSY are earmarked for the Village of foodgrains so that these are lifted on time.
Panchayats and for distribution among Gram Panchayats
• Under the directions of the Government of India,
through the Zila Parishads or DRDAs. The funds are so
5 kg. of foodgrains per manday are being
allocated as to ensure that each Panchayat receives a
distributed as part of the wages. The targeted
minimum of Rs. 50,000/-.
persons in the state are also getting foodgrains
Physical progress under the two streams is shown under other schemes. Therefore, it is suggested
in Table 13.16. Table 13.17 shows details of food-grains that the state may be permitted to distribute 3 kg.
made available and their utilisation. of foodgrains per manday under this scheme.
• The Government of India releases funds under the
TABLE 13.16 two streams in two equal instalments. As the
Physical Progress (Stream I & II) of SGRY funds are not sufficient to start a durable
infrastructure, it is suggested that these should
Category Steam I Steam II
be released in one instalment.
Lakh Manday Percentage Lakh Mandays Percentage
Generated Generated • The labourers should be given the option to get
SC 3.08 41 2.52 42 foodgrains or wages in cash. If they are forced to
ST 0.73 10 0.87 14 accept foodgrains, they may sell these, which will
Other 3.66 49 2.60 44 defeat the purpose of the scheme.
Total 7.47 - 5.99 -
Women 0.37 5 0.35 6 Jawahar Gram Samridhi Yojana (JGSY)
Landless - - - - JGSY is the restructured, streamlined and
Source: Department of Rural Development, Himachal Pradesh. comprehensive version of the erstwhile Jawahar Rozgar
Yojana (JRY). Designed to improve the quality of life of
TABLE 13.17 the poor, JGSY was launched on 1 April 1999.
Foodgrain Availability and Utilisation under The primary objective of JGSY was to create a
SGRY (Stream I & II) during 2002-03 demand-driven community village infrastructure,
(Foodgrains in tonnes) including durable assets at the village level and, to
increase opportunities for sustained employment for the
Stream Total Availability of Foodgrains Foodgrains % age
Based on Lifting Utilised rural poor. The secondary objective was the generation
I 7828.65 3809.77 49
of supplementary employment for the unemployed poor
II 5446.77 3059.40 56
in the rural areas.
Source: Department of Rural Development, Himachal Pradesh.

* As envisaged by Department of Rural Development, Himachal Pradesh.
TABLE 13.18
District-wise Physical and Financial Progress under
SGSY Special Projects Component “Installation of Hydrams”
District Target Sites Selected/ Hydrams Expnd. Installed Installed Total Under Installation/ Expnd.
Fixed Approved Procured (Rs. in lakh) in Year in 2001-02/ Hydrams Work in Progress (Rs. in lakh)
2000-01 2002 -03 Installed
Bilaspur 30 10 17 16.32 1 9 10 8.142

Chamba 30 5 5 4.80 1 4 5 0.462
Hamirpur 20
Kangra 30 26 15 14.40 7 7 Nil
Kinnaur 10
Kullu 50 60 28 26.88
Lahaul & Spiti 10
Mandi 80 30 57 54.72 27 27 8.80
Shimla 60 45 45 43.20
Sirmaur 30 2 5 4.80 1 1 0.23
Solan 30 39 9 8.64 6 6 2.20
Una 20 9 7 6.72 2 2 1.96
H.P. 400 226 181 180.48 2 56 58 21.794
Source: Department of Rural Development, HP.
This programme is being implemented by village beneficiary share. Till March, 2002, 226 sites had been
Panchayats and executed with the approval of the Gram selected and approved. Only 58 hydrams have been
Sabha of the village concerned. installed and Rs. 202.27 lakh spent on them. The
district-wise physical and financial progress of this
The Government of India had fixed a target of
project is shown in Table 13.18.
generating 11.74 lakh mandays in 2001-02, against
which 13.899 lakh mandays were generated and Apart from this, there was a programme to install
Rs. 1219.06 lakh was spent on the yojana. hydrams to develop waste and marginal lands through
the application of appropriate technology, extension and
Prime Minister’s Gramodaya Yojana (PMGY) training in the districts of Kullu and Shimla, under
this programme. A target of 200 hydrams was fixed; 170
PMGY was launched in 2000-01 with the objective
of achieving sustainable human development at the sites were selected/approved and 100 hydrams were
village level. Additional central assistance is being procured in 2001-02. Only 72 hydrams were installed at
an expense of Rs. 88.46 during this period.
received and earmarked for various components of this
yojana. PMGY aims at consolidating the gains of the Gold mines project: The Government of India
earlier BMS programme and further improving and approved in 2000-01 a project on gold mines in Bilaspur
strengthening rural infrastructure facilities. Rs. 70 district as an SGSY special project. Three activities,
crore has been approved and earmarked for this yojana floriculture, sericulture and mushroom cultivation, are
during the 2002-03 annual plan. The state has been being taken up under this project at a total expense of
allocated Rs. 60 crore for 2002-03 under PMGY, Rs. 840.35 lakh. The project was to run for two years
exclusively for rural roads. Besides this, PMGY funds and had a target of 900 beneficiaries. Till December,
are used for the development of primary health 2002, Rs. 152.243 lakh was spent on the development
(18.57%), primary education (8.71%), rural drinking of these activities. The progress made till December,
water supply (56.14%), nutrition (15%) and rural 2002, is shown in Table 13.19.
electrification (1.57%).
Marketing of rural goods: The Central Government
approved in 2001-02 another project as SGSY special
SGSY Special Projects
project component with a total project cost of Rs. 914.52
Installation of HYDRAMS: The Government of lakh. Under this project 50 Himachal Gramin Bhandars
India had approved a project for installation of 400 and one Central Gramin Bhandar are being constructed
hydrams in 1999-2000 with a total project cost of in the state. Till March, 2002, 29 sites of these
Rs. 1047.20 lakh, which includes a subsidy of Rs. 770.48 Bhandars were selected and construction on 21 sites was
lakh, Rs. 161.40 lakh as loan and Rs. 115.32 lakh as completed. Construction on 12 sites was awarded to
contractors. An expenditure of Rs. 20 lakh has been The main activities under this diversification project
incurred till March, 2002. It is suggested that are:
construction activity under this project should be given
• Cultivation of medicinal and aromatic plants,
to PRIs instead of private contractors.
flowers and orchards
Milch livestock improvement: To promote dairy
• Sericulture
farming activities, the Government of India has
approved a project on milch livestock improvement in • Innovative practices in animal husbandry
Solan district, the total cost of which is Rs. 886.95 The physical and financial progress of this
lakh. The project will run for five years and is targeted programme is shown in Table 13.21.
to benefit 10,000 families. The progress made till
December, 2002, is shown in Table 13.20. Other special component projects under SGSY are
Green Gold in Chamba district, Self-reliance through
Sericulture and Dairy Development in Hamirpur district,
TABLE 13.19 and Intensive Dairy Development Project in Kangra
Gold Mines Project : Progress Made up to December 2002 district.
Sericulture Targets of Cases Subsidy Loan Issues Relating to SGSY Special Project Component
Production Farmers to be Sanctioned (Rs. in (Rs. in
Assisted lakhs) lakhs) • Hundred per cent subsidy is given under
Gladiolus Farming 100 18 3.346 5.544
wasteland development project, whereas under
Carnation Farming 100 16 4.50 7.05
SGSY Special Projects, a loan component is also
Mushroom Cultivation 200 34 8.50 32.54
involved. The Government of India has asked the
Sericulture Production 500 282 53.523 127.59 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
TABLE 13.20 provide 100 per cent subsidy for this project also.
Milch Livestock Improvement Project : • Special projects augment the resources and to get
Progress Made upto December 2002
the maximum benefit, a period should not be
Name of the Expenditure Physical Progress imposed. Rather the quality of the output should
Component Incurred be the criterion to judge the success of the
(Rs. in lakh)
projects.
Extension & Training 12.00 6385 cattles treated in 92 field
level camps. 448 breeder
imparted training. 45 Vet Watershed Development Projects
Officials trained
Breeding Efficiency The objective of these projects is to promote
Improvement 4.34 Equipments economic development of the village community and to
Genetic Improvement 7.13 Do check the adverse effects of drought by restoring the
Young Stock Rearing 9.75 —
ecological balance and generating employment for the
Improvement of
Fodder Production 1.21 Procurement of seeds people of watershed area.
Milch Livestock
Management 17.64 Mineral mixtures, medicines etc. Under the Integrated Wastelands Development
Marketing 03.65 Equipment Project, funds worth 33.32 per cent of the total cost
Monitoring 16.04 Advts., tenders, honorarium, have been released. Of the released funds, 71.11 per
Vehicles
cent have been utilised for the improvement of 21.36
Total 71.76
per cent of the area targeted under the Desert
Source: Department of Rural Development, Himachal Pradesh. Development Programme; 36.78 per cent of the total
cost of the project has been released and of the released
Rural development through diversification of funds, 79.47 per cent have been utilised for treating
agriculture in Mandi district: The project, started in 25.91 per cent of the total targeted area. Under the
November, 2001, was to run for four years and its total Drought Prone Area Programme, 36.52 per cent of the
cost was Rs. 1385.32 lakh. It will benefit 36,365 total cost of the project has been released. Of released
individuals. An expenditure of Rs. 148.06 lakh has been funds, 65.25 per cent have been utilised for treating
incurred till March, 2002. 44.55 per cent of the total targeted area.
TABLE 13.21
Physical and Financial Progress
Activity Physical Achievement Financial Achievements

(Rs. in lakh)
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 eight 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 construction for training SHGs in tissue culture.
5. A district level society, namely, “The Mandi District Herbs and Flower Promotion
Society”, has been set up.
Total 32.21
Sericulture 1. Establishment of three technical service stations has been undertaken by the 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
TABLE 13.22
Physical and Financial Achievements (till September 2002)
Programme Project Cost No. of Targeted Total Funds Total Total Area
(in lakh) Watersheds Area (in Hec.) Released (in lakh) Expenditure (in lakh) Treated (in Hec.)
Integrate Wasteland Dev. Project 13971.79 422 261666 4656.04 3310.58 55890.27
(33.32)* (71.11)** (21.36)***
Desert Dev. Programme 10496.00 371 117098 3860.629 3068.05 30339.97
(36.78)* (79.47)** (25.91)***
Drought Prone Area Programme 6430.00 238 79866 2348.11 1532.217 35579.04
(36.52)* (65.25)** (44.55)***
Source: Department of Rural Development and Panchayat, Himachal Pradesh.

Note: * % taken with total project cost.
** % taken with total funds released.
*** % taken with total targeted area.
Details of physical and financial achievements under private, community or government, because it is a
these three programmes are given in Table 13.22. geo-hydrological unit.
• The cost norms should be revised because of hard
Issues and peculiar geographical conditions, particularly
• The Central government while sanctioning a under the DDP, being executed in the tribal
project, insists that forest land should not be districts of Lahaul & Spiti and Kinnaur. It is also
more than 25 per cent and private land not more suggested that per hectare cost under IWDP and
than 50 per cent. It is suggested that watershed, DPAP should also be increased, considering the
should cover all types of land, whether forest, geographical conditions of the state.
• Besides other activities relating to water harvesting

member from each household of the watershed area; all
structures, irrigation schemes should also be watershed committees have been formed by watershed
allowed to be taken up under the watershed associations unanimously and these committees have
development project, because nothing can be appointed watershed chairmen for all watershed
grown in hilly areas without assured irrigation. committees. Watershed associations have further organised
user groups, which are the actual implementing agencies.
• Instead of creating a parallel body i.e. Watershed The community organisers of the project have formed 60
Association or Watershed Committee, a single SHGs, which are functioning ideally. These groups hold
Panchayat should be given jurisdiction to execute their monthly meetings regularly. Thrift and credit norms
are being followed regularly. 45 groups have been given
the projects through user groups, SHGs and the
revolving funds after proper gradation by watershed
village community. development team members. This success is due to the
• For the sustainability of the project, the gram seven day training, which was imparted to WDT
members, watershed chairmen and secretaries. The Desert
panchayats and other local level institutions, such
Development Project (DDP) now is working on the
as Mahila Mandals, Yuvak Mandals, SHGs should be modalities of taking up some income-generating activities
involved in post-project maintenance. by exploiting the existing potential of the area. The
identified activities are traditional handloom cottage
• For capacity building, the DRDA should ensure
industry, potato chips, chulli oil, horticulture-based cottage
that relevant time-bound training programmes are industry and medicinal herbs.
organised for all functionaries.
The community has now understood the concept of a
• Desilting should be a continuing activity, as the holistic development approach. After the awareness
problem of silting is a perennial problem. campaign, exposure visits to other successful watershed
areas and training of the community as a whole, the
Problems are faced by watershed projects in winter community has felt that watershed means not water or
because much of the area remains under snow for three installation of tanks as kuhls only, it is more than this.
to four months. 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
Desert Development Project, Pooh, District Kinnaur
cultivation during winter for vegetables production. It is
A Journey towards success
hoped that within the project period the entire watershed
The watershed guidelines impress upon the area can be covered under a modern drip/sprinkler
implementation of all watershed-based programmes with irrigation system.
active participation of the community. However, till I — CAPT . J . M . PAT H A N I A
joined the project in May 2000, community participation Project Director
was nil. Rather, the community was not even aware of the DDP, Pooh
full form of DDP, as a result the community gave several
sarcastic names to the project, depending upon the results
Indira Awaas Yojana (IAY)
on the ground, such as Dat Ke Dakaro Paisa, Dat ke Daru
Piyo, etc. No community participation was possible Under this centrally sponsored scheme an assistance
without awareness of the community, organisation of the of Rs. 22000 is given to a below- poverty line (BPL)
community into watershed associations/committees, user
family to construct a house. Earlier, the financial
groups and SHGs, training of the functionaries at all
levels. When I joined the project, there were four assistance was provided only for construction of a new
functionaries at the PIA level, only two Junior Engineers house but, since 1999-2000, an assistance of Rs. 10,000
to implement 32 watershed projects, no watershed is also provided for conversion/upgradation of a kutcha
committees. house in to a semi-pucca/pucca house. The financial and
One year and 10 months after I took over the project in physical performance of the scheme in the state is given
March 2002, 102 micro watershed projects were in hand in Tables 13.23 and 13.24
with an allocation of Rs. 2900 lakh. (Once the project was
streamlined and the desired level of expenditure was • The selection of the beneficiaries is done strictly
achieved, 70 new watershed projects were sanctioned for by the Gram Sabha.
Pooh) Now, there are 12 official functionaries at the PIA
level, three watershed development teams (civil engineer • The beneficiaries are motivated to complete the
team 12 members), Agri/Horticulture/Forestry team six houses on time.
experts, community organisation team, five community
organisers, 35 watershed associations have been organised • The findings of the Concurrent Evaluation of IAY
after generating detailed awareness in the community. The have been circulated to all DRDAs for strict
watershed associations have one male and one female compliance.
• Sanitary latrines are constructed in every house schools and women complexes and 38 individual
under IAY. latrines were constructed in 2001-02 at a total
expenditure of Rs. 55.73 lakh. Under the sanitation
TABLE 13.23 campaign in Sirmaur district, 77 sanitary complexes for
Financial Performance (Rs in lakh) women and school sanitation and 13 individual latrines
were constructed at an expenditure of Rs. 34.27 lakh.
Total Available Expenditure
Funds The other important centrally sponsored schemes
SC ST SC+ST Other Total implemented in the state are:
553-788 161.13 20.02 181.15 181.986 363.136 (82%) • National Social Assistance Programme; National
Source: Department of Rural Development, HP. Old-Age Pension Scheme, and National Family
Benefit Scheme.
TABLE 13.24 • NORAD aided project titled Environmental
Physical Achievements Conservation through Mahila Mandals in the
districts of Hamirpur, Kullu and Solan.
Target Houses Completed Houses
Upgradated • Rural building centres for DRDA, Hamirpur,
SC ST SC+ST Other Total Kangra, Bilaspur and Mandi.
3901 559 74 633 482 1115 2834
State Plan Schemes
Besides the Centrally sponsored schemes, the
government of Himachal Pradesh has been
It is suggested that the present limit of Rs. 22,000
implementing various welfare schemes for poor families.
should be raised to Rs. 40,000 due to the specific
These are:
geographical conditions of the state.
• Chief Ministers Gratuity Scheme
Credit-cum Subsidy Housing Scheme
• Rural Housing
This scheme was launched on 1 April 1999, and it
• Rural Sanitation
aims financing the construction of houses for the SCs/
STs and the freed bonded labourers. The scheme is • Social Audit Scheme and
being implemented in rural areas five km away from the • Mahila Mandal Protsahan Yojana
towns. The target groups under the scheme are rural
households having an annual income up to Rs. 32,000. Monitoring and Evaluation
However, BPL households are given preference. In 2001-
Progress under different rural development
2002, 158 houses were constructed against a target of
programmes is reviewed at various meetings by the
155 houses for which Rs. 67.69 lakh was given as
Ministry of Rural Development at the Chief Secretary
credit and Rs. 19.88 lakh as subsidy.
and Secretary levels. The state government has started a
Other housing schemes implemented in the state process to hold district level review meetings under the
are: chairmanship of the Chief Secretary, where the progress
• Innovative Rural Housing Scheme in Sirmaur of different rural development programmes is reviewed.
district. An evaluation study on IRDP was assigned to
• Innovative Rural Housing Project in Kullu evaluation division of the Planning Department in the
district. year 2000 for assessment of the implement of this
programme in the Eighth Five Year Plan period (1992-
• Innovative Housing Project at Solan. 97). The main findings were as under;
• SAMAGRA Awas Yojana in Sirmaur district. • The names of the majority of the beneficiaries
(99.42%) were approved by Gram Sabha which
Restructured Central Rural Sanitation Programme
shows that selection of beneficiaries has been
The Government of India restructured the Central done according to the guidelines as poorest of the
Rural Sanitation Programme in April 1999, and reduced poor families were given priority in providing
the subsidy from Rs. 2000 to Rs. 500. A total of 353 assistance.
• Out of the total assisted beneficiaries, 51.66 per extension of the decentralised planning process. The
cent covered under primary sector activities, 7.44 main objective is to ensure the speedy, equitable and
per cent under secondary sector activities and rational development of all areas.
remaining 40.90 per cent under tertiary sector
activities. The more coverage under primary sector Special Component Plan for Scheduled Castes
was due to the reason that in rural areas people The Scheduled Castes in Himachal Pradesh account
concentrate on dairy farming and other allied for almost one-fourth of the state’s population and they
agricultural activities. are concentrated mostly in the districts of Bilaspur,
• Majority of the beneficiaries (98.43%) face no Kullu, Mandi, Solan, Shimla and Sirmaur. These six
difficulties in obtaining loan. districts have more than 60 per cent of the Scheduled
Caste population of the state. Most of the Scheduled
• Majority of the beneficiaries (93.15%) reported
Caste families depend on agricultural pursuits and
that no training with regard to operational skill/
other low-income activities, such as sweeping, shoe-
maintenance of assets was imparted to them.
making, basket-making, weaving, blacksmithy, poultry
• Majority of the beneficiaries (72.21%) has fully and some similar occupations. A special component
repaid their loan. Hence recovery position is plan for the Scheduled Castes was initiated in 1979-80
quite satisfactory. for improving their living conditions and promoting
their skills. Rs. 4.61 crore was earmarked for their
• Marketing facilities were available in the village
development. During the Sixth Plan (1980-85) a thrust
for majority of the beneficiaries (84.31%)
was given to this activity by providing 11 per cent of
• Majority of the beneficiaries (73.19%) were not the total state plan outlay for the special component
able to derive annual income of Rs. 11,000 from plan. The Tenth Five Year Plan (2002-07) approach
the assets. paper clearly defines the goals and the strategy for
• It was found that none of the family members of improving the quality of life of the Scheduled Castes in
the sample beneficiaries were employed under any the state. Literacy among the SCs is below the state
other poverty alleviation programme. average. It was 10 per cent less than the state average
(only 53.20% in 1990-91). Among the women it was
The observations regarding implementation of still lower (41.02%) as against the state average of
various poverty alleviation programmes made during 52.17 per cent. The sex ratio was also low at 967
another CRRID project implemented in 88 panchayats of against the state average of 976 in 1990-91. Since the
two blocks namely Nagrota Bagwan and Punchrukhi of implementation of the plan, there has been a marked
Kangra district are as under: improvement in the infant mortality rate, health
• Failure to reach the right beneficiaries, pilferages services, literacy and skills among the Scheduled Caste
and leakages, procedural difficulties, inadequate families. Much remains to be done to improve their
assistance, the beneficiaries using the money for economic and social conditions by conserving their
other unproductive purposes, the problem of assets, providing them with land for tilling, upgrading
marketing the products, bank loan formalities, their skills for improving productivity, ensuring the
lack of proper information about the schemes, minimum agricultural wage, provision of minimum
lack of training and human resource development. literacy and imparting of technical and entrepreneurial
skills, and promoting their capacities in the areas of
• For proper identification of BPL families, the role
industrial and service sectors through self-
of NGOs, Panchayats and the community must be
empowerment programmes. Further, there is need for
ensured. Transparency can be ensured by the
modernising their existing traditional occupations like
people’s participation and proper training of the
shoe-making, leather processing, basket-making,
surveyors.
carpentry and blacksmithy. On the social side, much
more shall have to be done to liberate this section from
Sub-plans for the Development of
untouchability, social discrimination and exploitation.
Scheduled Castes, Scheduled Tribes
There is need for basic amenities, such as safe drinking
and Backward Areas
water, education and health, approachable roads and a
Formation of a special component plan for the SCs better public distribution system in their habitations.
and Sub-plans for the tribal and backward areas is an There are almost 2613 villages (one-sixth of the total
number of villages in the state) where more than 65 per economic development and infrastructure backwardness.
cent of the population consists of the Scheduled Castes. The state government framed a comprehensive policy for
the backward areas in 1995-96, and accorded special
The outlay for the Scheduled Castes component plan
weightage to remoteness and inaccessibility (25 points),
for 2002-03 has worked out to Rs. 187 crore, which is
demographic indicators (35 points), infrastructure
11 per cent of the total state plan. For the Tenth Five
indicators (36 points) and agricultural indicators (4
Year Plan, the outlay is Rs. 1046.65 crore.
points). The policy clearly elaborates the concept of
Sub-Plan for Tribal Areas backward areas, area-based plans, beneficiary-based plans,
separate budgetary arrangements, administration of plans
Kinnaur and Lahaul and Spiti districts, besides the and categorisation of areas (three categories i.e. backward
Pangi and Bharmaur tehsils of Chamba district, have blocks (8), contiguous pockets (15) and dispersed
been declared tribal areas. These tribal areas fall in the panchayats (109). Of the 3037 Gram Panchayats in the
High Hill Zone having cold and dry weather conditions. State, 489 have been declared backward. More than four-
More than 40 per cent of the geographical area of the fifths of the backward panchayats (84%) fall in the
state falls in the tribal belt which has a population of districts of Chamba, Kullu, Mandi and Shimla.
less than two lakh. During the last Plan period, almost Successful efforts have been made to develop rural
one-eleventh of the state’s plan outlay was allocated for infrastructure such as roads, power, irrigation, drinking
the development of the tribal areas under the “Tribal water and credit facilities in these areas.
Plan”. The Tenth Five-Year Plan (2002-07) has
envisaged in its approach paper the basic problems of Fifteen per cent of sectoral outlay has been
the tribal people and implementation of protective and earmarked under this sub-plan for the development of
anti-exploitative measures for safeguarding their rights. agriculture, social conservation, horticulture, minor
The government has accorded the highest priority to irrigation, food and civil supplies, animal husbandry,
education, health, promotion of social and cultural social forestry, rural electrification, education, general
values of the local communities, sustainability of education, rural health, ayurveda and rural water supply.
environment, creation of direct and indirect employment These sub-plans are playing an effective role in
opportunities, involvement of PRIs in development modernising the rural economy of Himachal Pradesh
activities, implementation of watershed development and can be treated as an integral part of the
programmes for irrigation and the revival of handicrafts. development planning. Lastly, it can be said that rural
Yet, much remains to be done for protection of their development is a joint venture of the public, private,
land rights (when their land is acquired for major hydel co-operative and corporate sectors. Any single sector
projects, a feeling of alienation arises among them), cannot effectively tackle all the problems of rural
promotion of credit facilities (due to non-institutional development. Panchayati Raj Institutions, co-operatives,
indebtedness, they pay heavy interest to money non-government organisations, private companies and
lenders), protection of forests (deforestation is creating corporations can jointly play an important role in the
economic, environmental and social problems in this process of development by complementing and
tribal border zone) and rehabilitation of the displaced supplementing the functions and activities of the
people. (A substantial number of the people shall have government.
to be displaced from the catchment areas of major hydel
projects). To improve the quality of their life, there is Summary and Recommendations
also need for poverty alleviation schemes implemented Himachal Pradesh is a state where 90 per cent of the
through tribal panchayats. population lives in rural areas and almost 70 per cent
The outlays for tribal sub-plan for 2002-03 is Rs. 153 depends on agriculture which contributes only 23 per
crore which is nine per cent of the total state plan. For cent to the Gross State Domestic Product at factor cost
the Tenth Plan, the outlay is Rs. 856.35 crore. at constant prices (1993-94). No development can be
successful if it is not built on the foundation of the
Sub-Plan for Backward Areas rural sector. In view of this, there is urgent need for
giving high priority to rural development, taking into
This sub-plan was introduced by the state
account the following recommendations.
government during the Fifth Five Year Plan. The basic
criterion for the identification of backward areas was • Ensure effective dissemination of information,
remoteness and inaccessibility, besides the level of socio- education and impart training to the elected
representatives of the PRIs for good governance • For better implementation of poverty alleviation
and management for overall rural development. programmes, there is need for effective co-
ordination between the officials of various
• Besides the elected representatives, government
departments and the PRIs.
officials working with the PRIs too need to be
trained. Though the government, non-government • Gram Panchayats should be encouraged to involve
organisations and civil society groups are themselves actively in planning, implementing,
imparting such training, yet there is need for monitoring and evaluating the poverty alleviation
joint training so that the impact is more effective programmes for better results.
and transparent.
• All poverty alleviation programmes at the village
• Ensure co-ordination between Panchayats , level should be put at the disposal of the gram
government and NGOs to upgrade the skills of panchayat and implemented with the help and co-
the rural people and improve the quality of their operation of the local-level bureaucracy. Further,
life by establishing rural enterprises catering to the Gram Panchayats should be selective in this
their skills and needs. regard and take into account the needs of the
people and the scope of real employment
• Maintain and upgrade the existing rural
generation, before taking up the programmes for
infrastructure and promote facilities such as cold
implementation.
chains, marketing intelligence network to
facilitate the agro-processing industries. • For proper identification of the BPL families, the
role of the NGOs, panchayats and the community
• The Government of India in certain cases provides
must be ensured.
funds for the development of rural areas through
the agency of NGOs, whereas the PRIs, being the • An appropriate institutional and organisational
real representative bodies of the people, are not structure is a prerequisite for the success of a
treated as NGOs. The Government of India rural development programme. Appropriate
should abandon this approach and provide funds technology skills, equitable access to production
from all agencies, including international inputs, services and credit are other prerequisites
funding, to the PRIs. for the success of a production-oriented
programme: A producer-owned and -controlled
• The state government is in the process of adopting
integrated system of production, procurement,
the central pattern of devolution of functions,
processing and marketing is necessary to derive
functionaries and funds in respect of 29 items. The
full benefits from the backward and forward
Government of India is also required to devolve to
linkages of these activities.
the PRIs similar functions in respect of schemes
implemented by various ministries of the • Although, the government has been and will
Government of India in the rural areas. continue to be the most important actor in rural
development, it alone cannot effectively tackle all
• To discourage over dependence on funds from
problems. The PRIs, co-operatives, voluntary
outside, the PRIs should be encouraged and
agencies and the private sector can play an
empowered to mobilise their own physical and
important role in the process of development by
human resources.
complementing and supplementing the functions
• Special efforts should be made to promote and and activities of the government.
facilitate a network of elected women
Himachal Pradesh has a large deprived population,
representatives. Intra-state and inter-state
consisting of marginal and small farmers, Scheduled
exposure visits of women representatives of PRIs
Castes, Scheduled Tribes and backward classes. This
need to be encouraged.
segment of the population has to be brought into focus
• Agricultural reforms are a key element for for their uplift with special emphasis on their skill
improving the economic condition of the small upgradation, removal of unemployment and poverty and
and marginal farmers. The involvement of PRIs vertical growth, to acquire productive assets for better
in this process has a great scope. living on a sustainable basis.
References NCAER, Indian Human Development Report, 1999.

Riddell, Rogar and Mark C and Robinson, 1995, Non Government Organizations and
Altekar, State and Government in Ancient India, Motital Banarsidas, Banaras, 1955. Rural Poverty Alleviation, Clarendon Press, Oxford.
An Evaluation Study on IRDP in Himachal Pradesh (1992-97), Planning Department, Sarkar, K. Gautam, 1995, Agriculture and Rural Transformation in India, Oxford
Government of Himachal Pradesh, Shimla, 2002. University Press, Delhi.
Annual Administrative Report, Department of Rural Development Himachal Pradesh, Satyaketu, Vidyalankar, Maurya Samrajya Ka Itihas Indian Press, Allahabad, 1928.
Shimla, 2002.
Singh, Katar, 1999, Rural Development: Principles Policies and Management, S a g e
Annual Plan (2003-2007) Himachal Pradesh, 2003. Publication, New Delhi.
India: Human Development Report, National Council for Applied Economic Research, State Development Report Punjab, Planning Commission, Government of India, 2003.
Oxford University Press, New Delhi, 1999.
Status Note Regarding the Devolution of Powers, Functions and Responsibilities of Panchayati
India Panchayati Raj Report-2001 Volume I & II, National Institute of Rural Raj Institutions, Department of Rural Development, Himachal Pradesh,
Development, Hyderabad, January 2002. Shimla 2002.
Jagmohan, Balokhra, 2002, The Wonder Land, Himachal Pradesh: An Encyclopedia, H.G. Statistical Abstract India, 2000, CSO, Ministry of Statistics and Programme
Publication, New Dehli. Implementation, Government of India.
Jain, S.P. (edit), Emerging Institutions for Decentralised Rural Development, Vol. I & II, Statistical Abstracts of HP, various issues, Government of Himachal Pradesh.
National Institute of Rural Development, Hyderabad, November 2001.
Tenth Five-Year Plan, Himachal Pradesh, 2003.
National Human Development Report, 2001, Planning Commission, Government of
India, March 2002.

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HAL P RA

and to be developed where these are non-existent. There

Source: Five Year Plans and Annual Plans.

Source: Statistical Abstract of Himachal Pradesh, various issues.

electrification, public distribution system and

Source: Census of India, Himachal Pradesh, 2001.

Districts % of % of % of % age of % of % of % of % of Agri % of % of % of % of % age of % of

Source: Various Statistical Abstract of Himachal Pradesh.

Rank States Having Better Ranks

Source: India Human Development Report, 1999, NCAER.

Districts Male Female Grand Total

Bilaspur 454 115 12 - 581 230 139 12 - 381 962

Source: Panchayati Raj Department, Himachal Pradesh, Shimla.

Particulars Male Female Total Male

Source: Panchayati Raj Department, Himachal Pradesh, Shimla.

Devolved Functions Grants Taxes

I. Delegated functions of: = 3750.00 1. Honorarium 1) Raise resources through taxes

Particulars Himachal Pradesh Punjab

No. of Gram Panchayats 3037 12369

Gram Panchayats 3037 24623 492 1500 3,69,34,500

Note: Based on CRRID’s Training Programme.

Source: Department of Rural Development, Himachal Pradesh.

Bilaspur 30 10 17 16.32 1 9 10 8.142

Source: Department of Rural Development, HP.

Activity Physical Achievement Financial Achievements

Source: Department of Rural Development, HP.

Source: Department of Rural Development and Panchayat, Himachal Pradesh.

• Besides other activities relating to water harvesting

References NCAER, Indian Human Development Report, 1999.

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