Poverty and Employment

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Poverty Alleviation and

Employment Generation and
Government schemes
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Poverty Alleviation and Employment Generation in India
Poverty is difficult to define and measure. The concept about poverty differs from society
to society. In simple terms, poverty means the inability to meet basic needs. Poverty has
high relationship with inequality and vulnerability
Poverty is closely related to two other concepts- inequality and
vulnerability. Inequality focuses on the distribution of income or consumption, across
the whole population. In the context of poverty analysis, inequality is very important
when we consider relative poverty.
Vulnerability is defined as the risk of falling into poverty in the future, even if the
person is not necessarily poor now. Vulnerability is often associated with the adverse
effects from calamities, income fall, financial crisis etc.
The World Bank defines poverty as “the inability to attain a minimal standard of living”.
The World Bank website on ‘Poverty Reduction and Equity’ defines poverty in
comprehensive manner, saying, “Poverty is hunger. Poverty is lack of shelter. Poverty is
being sick and not being able to see a doctor. Poverty is not having access to school and
not knowing how to read. Poverty is not having a job, is fear for the future, living one day
at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is
powerlessness, lack of representation and freedom.”
Poverty’s many dimensions
Poverty is multidimensional- exhuming economic, social and psychological effects on the
deprived. This means that just lack of income is not enough to explain poverty.
Sometimes social backwardness causes difficult living conditions. Deep surveys indicate
that poor people connect ill-being to poor health, malnutrition, inadequate sanitation
and clean water, insufficient education, social exclusion, bad housing conditions,
violence, shame etc.
Amartya Sen’s approach
Amartya Sen considers many non-economic factors like the right to live without shame,
accessibility to opportunities etc. while measuring poverty. In recent years, poverty is
looked from this multidimensional angle and not just form one dimension like income.
Multidimensional Poverty Index
UNDP’s multidimensional poverty index considers several indicators to measure poverty;
thus, departing from the traditional measurements like an absolute poverty line. The
multidimensional poverty index is now acting as an advanced index for a fair
measurement of poverty. It has three dimensions – health, education and standard of
living and ten indicators
Absolute poverty and Relative poverty:
Absolute Poverty: It is the extreme kind of poverty involving the chronic lack of basic
food, clean water, health and housing. People in absolute poverty tend to struggle to live
and experience a lot of child deaths from preventable diseases like malaria, cholera and
water-contamination related diseases. This type is usually long-term in nature, and
often handed to them by generations before them. This kind of poverty is usually not
common in the developed world.

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In India, the Rangarajan Committee (2014) has set the absolute poverty line as a
monthly per capita expenditure of Rs 972 for an individual in rural areas as the absolute
poverty line. Absolute poverty line is thus expressed as an income necessary to meet the
minimum consumption.
Absolute poverty is measured by counting the number of persons or heads living below
the specified poverty line in terms of minimum consumption expenditure or income per
capita. Since this approach to measure absolute poverty is concerned with counting the
number of persons or heads, this is generally referred to as Head-Count Ratio approach
to measure absolute poverty. If N stands for the number of population, H for the number
of persons having consumption expenditure or income below that, then head-count ratio
of absolute poverty can be written as:
Head-Count Ratio (HCR) = H/N
The proportion of population below the poverty line is called the poverty ratio or
headcount ratio (HCR).
Relative Poverty: This kind is usually in relation to other members and families in the
society. For example, a family can be considered poor if it cannot afford vacations, or
cannot buy presents for children at Christmas, or cannot send its young to the
university. Even though they have access to government support for food, water,
medicine and free housing, they are considered poor because the rest of the community
have access to superior services and amenities.
Relative poverty reflects income inequalities in a country and like absolute poverty
negatively affects social welfare. Income inequalities in a society are generally measured
through estimating the value of Gini coefficient. Social welfare function can be written as
W = (Y, I, F)
where W = Social welfare
Y = Per capita income
I = Inequality index
P = Absolute poverty
Situational or Transitory poverty is generally caused by a sudden crisis or loss and is

often temporary. Events causing situational poverty include environmental disasters,
divorce, or severe health problems.
Generational or Chronic Poverty poverty occurs in families where at least two

generations have been born into poverty. Families living in this type of poverty are not
equipped with the tools to move out of their situations.
Poverty line: Poverty line is the level of income needed to meet the minimum living
conditions.
Poverty line is the amount of money needed for a person to meet his basic needs. It is
defined as the money value of the goods and services needed to provide basic welfare to
an individual.
Poverty line: The conventional approach to measuring poverty is to specify a minimum
expenditure (or income) required to purchase a basket of goods and services necessary
to satisfy basic human needs. This minimum expenditure is called the poverty line.
The basket of goods and services necessary to satisfy basic human needs is the
poverty line basket or PLB.
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Poverty line differs from one country to another, depending upon the idea of
poverty
Poverty line changes from one country to another. In developed countries, where there is
advanced standard of living and welfare concepts, poverty line is high as basic standard
to live include higher consumption requirements and accessibility to many goods and
services.
On the other hand, in many less developed countries, the basic requirements will be low
and contains mostly essential consumption items needed to sustain life. This means that
poverty line is set by the welfare standard in a particular economy.
Poverty line in India: India is having a well-designed poverty measurement mechanism

under the erstwhile Planning Commission. The Planning Commission was the nodal
agency for estimation of poverty. For setting poverty line and methodology of
constructing it, the Planning Commission appointed Expert Groups from time to
time for example, the Rangarajan Committee is the latest among those Expert groups.
Traditionally, the planning commission estimates the number of people below poverty
line in states as well as the rural and urban areas based upon the prevailing poverty
estimation methodology submitted by the expert groups. In India, poverty line is defined
as the income needed to obtain the set minimum standard of living. Poverty here is
absolute poverty.
For measuring poverty, a poverty line is set. The poverty line is the level of income
needed to meet the minimum standard of living. People who have an income less
than this is considered as below poverty line.
The concept about minimum consumption standards and consumption levels were
changed based upon recommendations of the various expert groups/task force. These
expert groups use the NSS (National Sample Survey) estimate the consumption pattern
of households from time to time. The NSS’s periodically makes extensive household
surveys on expenditure. Here, from the consumption basket of the people, the expert
groups pick up the most essential commodities. These commodities are placed under a
poverty line basket (PLB).
Minimum standard of living is thus expressed as the basket of goods and services
commonly used by the people. Based on this consumption pattern, the Expert Groups
estimate the minimum consumption levels (and the income needed to buy these) and the
income needed to obtain these goods and services in both rural and urban areas. This
income level acts as the poverty line.
Extending from the first attempt to set a poverty line – the Working Group of 1962 to the
Rangarajan Task Force (2014), poverty estimation methodology has undergone an
evolution in India.
National Sample Survey is being done by The National Sample Survey Office (NSSO)
under Ministry of Statistics and Programme Implementation.
The poverty rate is the ratio of the number of people (in a given age group) whose
income falls below the poverty line; taken as half the median household income of the
total population. It is also available by broad age group: child poverty (0-17 years old),
working-age poverty and elderly poverty (66 year-olds or more).

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The poverty gap is the ratio by which the mean income of the poor falls below the
poverty line. The poverty line is defined as half the median household income of the total
population. The poverty gap helps refine the poverty rate by providing an indication of
the poverty level in a country. This indicator is measured for the total population, as well
as for people aged 18-65 years and people over 65.
According to the World Bank, poverty gap is the mean shortfall from the poverty line
(counting the non-poor as having zero shortfall), expressed as a percentage of the
poverty line. Poverty gap measures the intensity of poverty. It shows the extent to which
individuals on average fall below the poverty line
Global Poverty Indicators:
Poverty headcount ratio at $1.90 a day % of population= 9.9% till 2015
Number of poor at $1.90 a day (2011 PPP) = 736 million till 2015
International Poverty Line has a value of US$1.90 PPP
Lower Middle Income Class Poverty Line has a value of US$3.20 PPP (Purchasing power
parity)
Upper Middle Income Class Poverty Line has a value of US$5.50 PPP
World Bank report on Poverty: In the 25 years from 1990 to 2015, the extreme poverty
rate dropped an average of a percentage point per year – from nearly 36% to 10%.
World Bank’s has a target to reduce extreme poverty to less than 3 percent of the world’s
population by 2030.
Back in 1990, 36 percent of the world’s people lived in poverty, defined by the IPL as an
income of less than US$1.90 a day in 2011 purchasing power parity (PPP). By 2015, that
share had plunged to 10 percent, down from 11.2 percent in 2013. The number of
people living in extreme poverty stood at 736 million in 2015, down from nearly 2 billion
in 1990.
Despite the more sluggish global growth of recent years, the total count of people in
poverty declined by more than 68 million people between 2013 and 2015.
Sub-Saharan Africa now accounts for most of the world’s poor, and—unlike most of the
rest of the world—the total number of poor there is increasing. The number of people
living in poverty in the region has grown from an estimated 278 million in 1990 to 413
million in 2015.
Estimates for 2015 indicate that India, with 176 million poor people, continued to have
the highest number of people in poverty and accounted for nearly a quarter of the global
poor. India’s Poverty rate is 13.4% and poverty gap is 2.4%.
The causes of poverty in Indian economy are:

1. High growth rate of population
2. Landless labour
3. Low productivity
4. Low food production
5. Illiteracy
6. Political system and corruption
7. Lack of job opportunity
8. Inequalities of income
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9. Migration
10. Regional Disparities
11. Excessive population pressure on Agriculture.
12. Lack of capital
13. Lack of Vocational Education and Training.
Measurement of poverty in India: Extending from the first attempt to set a poverty line
– the Working Group of 1962 to the Rangarajan Task Force (2014), poverty estimation
methodology has undergone an evolution in India.
For the construction of the PLB, various expert groups appointed by the Planning
Commission were depending upon the Household Consumption Expenditure data
compiled by the NSSO. It should be noted that ‘determination of poverty line’ and
‘identifications of poor/beneficiary’ are almost different things. Poverty line is (was)
determined by Planning Commission on the basis of data provided by ‘National Sample
Statistical Organization’ (NSSO). NSSO conducts a survey at 5 year interval of a mere
sample to capture consumption patterns of various sections of society.
One of the earliest estimations of poverty was done by Dadabhai Naoroji in his
book, ‘Poverty and the Un-British Rule in India’. He formulated a poverty
line ranging from Rs 16 to Rs 35 per capita per year, based on 1867-68 prices. The
poverty line proposed by him was based on the cost of a ‘subsistence diet’ consisting of
‘rice or flour, dhal, mutton, vegetables, ghee, vegetable oil and salt’.
Next, in 1938, the National Planning Committee (NPC) estimated a poverty line ranging
from Rs 15 to Rs 20 per capita per month. Like the earlier method, the NPC also
formulated its poverty line based on ‘a minimum standard of living perspective in which
nutritional requirements are implicit’. In 1944, the authors of the ‘Bombay Plan’
suggested a poverty line of Rs 75 per capita per year.
The Working Group of 1962: The earliest poverty line figuring in the discussions on
poverty in post independence India was Rs. 20 (rural) and Rs.25 (urban) per capita per
month at 1960-61 prices. This was first crated by planning commission to determine
desirable minimum level of expenditure required to make a living.
· Recommended ‘national minimum consumption expenditure’ for a household of 5

Rural – Rs 100/ month (Rs 20/ Person)
Urban – Rs 125/ month (Rs 25/ Person)
· It excluded Health and educational expenditure on assuming that it is provided by
state.
· Used recommendation on ‘Balanced diet’ by Indian council of Medical Research.
YK Alagh Task Force of 1979: Poverty line of 1962 was used during 1960’s and 1970’s
at both National and state level. But it attracted intense debate for its low figures. In
response taskforce under Dr. Y.K. Algah was created to revisit poverty line.
A founding work for poverty estimation in the country occurred with the
recommendations of the YK Alagh Task Force appointed by the Planning Commission in
July 1977 and made recommendations in 1979. The Task Force named as “Projections
of Minimum Needs and Effective Consumption Demand” provided a quantitative
measure of poverty by estimating a calorie based consumption basket. For this the Task
Force has used NSSO 28th Round data.
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Average calorie requirements were estimated, separately for the all -India rural and
urban areas on the recommendation of Nutrition Expert Group. This resulted in different
‘Poverty line basket’ for urban and rural areas. Rs.49.09 per capita per month was
associated with a calorie intake of 2400 per capita per day in rural areas and Rs.56.64
per capita per month with a calorie intake of 2100 per day in urban areas at 1973-74
prices. This ‘Monthly Per Capita Expenditure’ was termed as poverty line.
This poverty line was updated by the Planning Commission till 1993 until the setting up
of a new expert group for devising a new methodology for poverty estimation.
Expert group 1993 (Lakdawala): In its report, submitted in 1993, this committee
retained the separate rural and urban poverty lines recommended by the Alagh
Committee at the national level and made the following suggestions:
(i) consumption expenditure should be calculated based on calorie consumption as
earlier;
(ii) state specific poverty lines should be constructed and these should be updated using
the Consumer Price Index of Industrial Workers (CPI-IW) in urban areas and Consumer
Price Index of Agricultural Labour (CPI-AL) in rural areas; and
(iii) discontinuation of ‘scaling’ of poverty estimates based on National Accounts

Statistics. This assumes that the basket of goods and services used to calculate CPI-IW
and CPI-AL reflect the consumption patterns of the poor.
The Lakdawala methodology and poverty lines formed the basis of poverty estimates
nationally and across states until 2004-05.
Expert Group 2005 (Tendulkar): In 2005, another expert group to review methodology
for poverty estimation, chaired by Suresh Tendulkar, was constituted by the Planning
Commission to address the following three shortcomings of the previous methods:
(i) consumption patterns were linked to the 1973-74 poverty line baskets (PLBs) of goods
and services, whereas there were significant changes in the consumption patterns of the
poor since that time, which were not reflected in the poverty estimates;
(ii) there were issues with the adjustment of prices for inflation, both spatially (across
regions) and temporally (across time); and
(iii) earlier poverty lines assumed that health and education would be provided by the
State and formulated poverty lines accordingly.
It recommended four major changes:
(i) a shift away from calorie consumption based poverty estimation;
(ii) a uniform poverty line basket (PLB) across rural and urban India;
(iii) a change in the price adjustment procedure to correct spatial and temporal issues
with price adjustment; and
(iv) incorporation of private expenditure on health and education while estimating
poverty. The Committee recommended using Mixed Reference Period (MRP) based
estimates, as opposed to Uniform Reference Period (URP) based estimates that were used
in earlier methods for estimating poverty

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During previous methodologies, a ‘uniform reference period’ was used that included 30
days just before the survey for all food and nonfood items. But Tendulkar group changed
‘reference period’ to past one year for 5 nonfood items viz., clothing, footwear, durable
goods, education and institutional medical expenses. For other items 30 days reference
period was retained. This is called ‘Mixed reference period’.
The Committee computed new poverty lines for rural and urban areas of each state. It
concluded that the all India poverty line was Rs 446.68 per capita per month in rural
areas and Rs 578.80 per capita per month in urban areas in 2004-05.
National poverty lines (in Rs per capita per month) for the years 2004-05, 2009-10
and 2011-12:
Year Rural (Rs. per capita Urban (Rs. per capita
per month) per month)
2004-05 446.7 578.8
2009-10 672.8 859.6
2011-12 816.0 1000.0
It is often considered that Tendulkar Poverty line is equivalent to World Bank’s poverty
line in PPP terms. This purely incidental and poverty line calculated by Tendulkar had
nothing to do with World Bank methodologies. But government often defended poverty
line claiming that it is as per global standards.
Expert group, 2012 (Rangarajan): Expert group submitted its report in 2014 giving ‘per
capita monthly expenditure’ as Rs. 972 in rural areas and Rs. 1407 in urban areas as
poverty line. It preferred to use ‘Monthly expenditure of Household of five’ for the poverty
line purpose which came out to be Rs 4860 in rural areas and Rs. 7035 in urban areas.
It argued that considering expenditure of household is more appropriate than that of
individuals. Living together brings down expenditure and as expenses such as house
rent, electricity etc. gets divided into 5 members.
Other major recommendations were –

It reverted to old system of separate poverty line baskets for Rural and urban areas,
which was unified by Tendulkar group. Instead of ‘Mixed reference Period’ it
recommended ‘Modified Mixed reference period’ in which reference periods for different
items were taken as –
365-days for clothing, footwear, education, institutional medical care, and durable
goods.
7-days for edible oil, egg, fish and meat, vegetables, fruits, spices, beverages,
refreshments, processed food, pan, tobacco and intoxicants, and 30-days for the
remaining food items, fuel and light, miscellaneous goods and services including non-
institutional medical; rents and taxes.

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For normative levels of adequate nutrition – average requirements of calories, proteins
and fats based on ICMR norms, differentiated by age, gender and activity for all-India
rural and urban regions is considered.
1. Calories requirement – 2090 kcal in urban areas and 2155 Kcal in rural areas
2. Proteins – for rural areas 48 gms/day and for urban areas 50 gms/day
3. Fat – for urban areas 28 gms/day and for rural areas 26 gms/day
Poverty line by the group is also based on Independent survey conducted by ‘Center for
monitoring Indian Economy’ (CMIE).
The results under this survey are remarkably close to those we get through NSSO
survey. Confirming adequacy of NSSO data and group’s methodologies, CMIE considers
maximum income required to meet consumption expenses of a household.
If Income is above consumption expenses then household is above poverty line otherwise
(if not able to save anything) it is below poverty line. CMIE conducted survey on 150000
households.
Table: MPCE and its component proposed by the Rangarajan Expert Group -2011-12
Urban
Items Rural (Rs)
(Rs)
Food 554 656
Four essential non-
141 407
food items
Other non-food
277 344
items
Total MPCE 933 1181
MPCE Poverty
972 1407
Line
This translates to a monthly per household expenditure of Rs 4860 / in Rural India and
of Rs 7035/ for urban India—assuming a family of 5-members in each case.”
As per these estimates the 30.9% of the rural population and 26.4% of the urban
population was below the poverty line in 2011-12. The all-India ratio was 29.5%.
In rural India, 260.5 million individuals were below poverty and in urban India 102.5
million were under poverty. Totally, 363 million were below poverty in 2011-12 which is
approximately 93 mn higher than the Tendulkar estimate of 270 mn.

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Committees Tendulkar C Rangarajana
Planning Planning
Set Up By
Commission Commission
Set Up In 2005 2012
Submitted Report 2009 2014
Per capita Monthly

Poverty Estimation Method Expenditure Expenditure of
Monthly family of five.
Urban Poverty Line Per Day

33 47
per Person
Urban Poverty Line Per Month

1000 1407
per Person
Urban Poverty Line Per Month,

5000 7035
Family of Five Members
Rural poverty line Per Day Per

27 32
Person
Rural poverty line (Rs) per

816 972
Month Per Person
Rural poverty line (Rs) Per

month Family Of Five 4080 4860
Members
BPL ( Below Poverty Line ) In

27 crore 37 crore
crore
only calorific value Calorie +Protein +

Calorie Expenditure
in Expenditure fat
Calories In Rural Areas 2400 2155
Calories In Urban areas 2100 2090
1-food
Only counts 2- non-food items
Expenditure on food, such as education,
Main Focus Areas
health, education, 3-healthcare,
clothing. 4-clothing,
5-transport 6.Rent

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Unemployment in Rural India: According to the 68th round of the Employment and
Unemployment Situation by NSSO. In India the unemployment rate in urban areas has
declined even though it remains higher than in rural areas. The biennial survey is
conducted by the MOSPI.
About 69 per cent of the households in India belonged to rural areas and accounted for
about 71 per cent of total population.
The average household size in India was about 4.3. It was about 4.5 in rural India and
about 4.0 in urban India.
Access to Jobs
The report states that the unemployment rate is 1.7 per cent in rural and 3.4 per cent in
urban areas. The unemployment rate (UR) in usual status was about 2 per cent for both
males and females in rural areas, 3 per cent for urban males and 5 per cent for urban
females.
Labour Force: About 55 per cent of the rural males, 25 per cent of the rural females, 56
per cent of the urban males and 16 per cent of the urban females were in the labour
force in usual status.
The Labour Force Participation (LFP) in rural India is 406 per 1000 individuals and 367
in urban areas.
Labour force, or the “economically active”, refers to the population that supplies or
seeks to supply labour for production of goods and services and therefore, includes both
the “employed” and the “unemployed.
The worker population ratio (WPR) in usual status was about 39 per cent at the all-
India level. It was about 40 per cent in rural areas and 36 per cent in urban areas. The
WPR in usual status (ps+ss) was 54 per cent for rural males, 25 per cent for rural
females, 55 per cent for urban males and 15 per cent for urban females.
Among workers in the usual status in rural India, about 59 per cent of the males
and 75 per cent of the females were engaged in the agriculture sector.
About 38 per cent of the rural households in India had MGNREG job card.
Labour force participation rate (LFPR): LFPR is defined as the number of persons/
person-days in the labour force per 1000 persons /person-days.
Worker Population Ratio (WPR): WPR is defined as the number of persons/person-days

employed per 1000 persons/person-days.
Proportion Unemployed (PU): It is defined as the number of persons/person-days

unemployed per 1000 persons/person-days.
Unemployment Rate (UR): UR is defined as the number of persons/person-days

unemployed per 1000 persons/person-days in the labour force (which includes both the
employed and unemployed).

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Types of Unemployment:
Structural Unemployment: Structural Unemployment occurs when rate of capital

formation falls down i.e. skills, experience, and education of workers do not match the
available opportunities of job. It generally happens due to change in economic structure
of the country.
Frictional unemployment: Frictional unemployment, also called search unemployment,

occurs when workers lose their current job and are in the process of finding another
one. There may be little that can be done to reduce this type of unemployment, other
than provide better information to reduce the search time. This suggests that full
employment is impossible at any one time because some workers will always be in the
process of changing jobs.
Regional unemployment: When structural unemployment affects local areas of an

economy, it is called ‘regional’ unemployment. For example, unemployed coal miners in
South Wales and ship workers in the North East add to regional unemployment in these
areas.
Classical unemployment: Classical unemployment is caused when wages are ‘too’ high.
This explanation of unemployment dominated economic theory before the 1930s, when
workers themselves were blamed for not accepting lower wages, or for asking for too high
wages. Classical unemployment is also called real wage unemployment.
Seasonal unemployment: Seasonal unemployment exists because certain industries

only produce or distribute their products at certain times of the year. Industries where
seasonal unemployment is common include farming, tourism, and construction.
Under-Employment: Under-employment refers to the situation when people in

workforce are employed at less than their efficiency and capability. The efficiency of
workers is underutilised and country fails to exploit the potential of their labourers.
Disguised Unemployment: Disguised unemployment is a kind of unemployment where

people seems to working and employed but are actually not contributing anything to the
production process. If such labour force is removed from work there will not be any
affect on productivity. The agriculture sector in India is experiencing such kind of
unemployment.
Voluntary unemployment: Voluntary unemployment is defined as a situation when

workers choose not to work at the current equilibrium wage rate. For one reason or
another, workers may elect not to participate in the labour market. There are several
reasons for the existence of voluntary unemployment including excessively generous
welfare benefits and high rates of income tax. Voluntary unemployment is likely to occur
when the equilibrium wage rate is below the wage necessary to encourage individuals to
supply their labour.
The Phillips curve: The Phillips curve shows the relationship between unemployment
and inflation in an economy. Since its ‘discovery’ by British economist AW Phillips in
1958, it has become an essential tool to analyse macro-economic policy.

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The theory states that the higher the rate of inflation, the lower the unemployment and
vice-versa. Thus, high levels of employment can be achieved only at high levels of
inflation. The policies to induce growth in an economy, increase in employment and
sustained development are heavily dependent on the findings of the Phillips curve.
However, the implications of Phillips curve have been found to be true only in the short
term. Phillips curve fails to justify the situations of stagflation, when both inflation and
unemployment are alarmingly high.
Poverty eradication measures in India: In terms of mission objectives, functioning and

targeting, the poverty eradication programmes can be divided into three categories.
Dedicated Poverty Eradication Programmes: These Programmes have the dedicated

purpose of alleviating poverty. The main dedicated poverty eradication programmes are:
Food Security Programme, TPDS, Antyodaya Anna Yojana, ICDS, Mid-Day Meals
Programme, National Nutrition Mission etc.
Employment Generation Programmes: Here, several self-employment and wage

employment programmes are undertaken by the government to enhance livelihood of the
poor people. The main programmes are: MGNREGS, National Livelihood Mission, Rural
Employment Generation Programme, Prime Minister’s Rozgar Yojana, MUDRA Yojana
etc.
Social welfare and support programmes: National Social Assistance Programme,

Pradhan Mantri Awas Yojana, Rashtriya Makhila Khosh, SHG-Bank linkage programme,
Mission for the Empowerment and Protection of Women, National AYUSH Mission,
National Rural Health Mission, National Rural Drinking Water Mission etc.
Major poverty alleviation, employment generation and basic services programmes

National Food for Work Programme:
Training of Rural Youth for Self-Employment (TRYSEM): The Scheme of Training of

Rural Youth for Self-Employment (TRYSEM) was initiated in 1979 with the objective of
tackling unemployment problem among the rural youth. It aimed at training about 2
lakh rural youths every year to enable them to become self-employed. Under this
scheme, 40 youths were to be selected from each block and for being eligible for
selection, the person should belong to a rural family having an income less than
Rs.3,500 per year. In making selection, members of scheduled castes and scheduled
tribes were to be given preference. Under the scheme, a minimum of one third of the
rural youths 94 trained were to be women. The TRYSEM was merged into Swarnajayanti
Gram Swarozgar Yojana in April 1999.
SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY): The single self-employment

programme of Swarnjayanti Gram Swarozgar Yojana (SGSY), launched with effect from
1.4.1999, has been conceived keeping in view the strengths and weaknesses of the
earlier schemes of Integrated Rural Development Programme (IRDP) and Allied
Programmes along with Million Wells Scheme (MWS). The objective of restructuring was
to make the programme more effective in providing sustainable incomes through micro
enterprises.
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SGSY is conceived as a holistic programme of micro enterprises covering all aspects of

self employment viz. organisation of the rural poor into self help groups (SHGs) and their
capacity building, planning of activity clusters, infrastructure build up, technology,
credit and marketing. Micro enterprises in the rural areas are sought to be established
by building on the potential of the rural poor. The objective of the programme is to bring
the existing poor families above the poverty line.
Under the SGSY, the focus is on vulnerable sections among the rural poor with SCs/STs
accounting for 50 per cent, women 40 per cent and the disabled 3 per cent of the
beneficiaries. The list of BPL households, identified through BPL census, duly approved
by the Gram Sabha forms the basis for assistance to families under SGSY. The
beneficiaries (also called Swarozgaris) could be individuals or groups.
The SGSY is a credit-cum-subsidy programme, with credit as the critical component and
subsidy as a minor and enabling element. Accordingly, the SGSY envisages greater
involvement of banks and promotion of multiple credit rather than a one-time credit
injection. Subsidy under SGSY is provided at 30 per cent of the project cost, subject to a
maximum of Rs.7500. In respect of SCs/STs, it is 50 per cent subject to a maximum of
Rs.10000. For groups, the subsidy is 50 per cent subject to a ceiling of Rs.1.25 lakh. It
is a Centrally Sponsored Scheme and funding is shared by the Central and State
Governments in the ratio of 75:25 respectively.
The SGSY is implemented by the District Rural Development Agencies (DRDAs) through
the Panchayat Samitis. The Swarna Jayanti Swarozgar Yojna (SGSY) has been renamed
as National Rural Livelihood Mission (NRLM).
National Rural Employment Programme (NREP): The programme was expected to

generate additional gainful employment in the rural areas, to the extent of 300-400
million mandays per annum, create durable community assets, and improve nutritional
status and living standards of the poor. The entitlement of each State to the Central
fund was based on the incidence of poverty and the population of agricultural labourers,
marginal farmers and marginal workers with 50 per cent weightage to each. However,
the Centre and State shared the expenditure equally on a 50:50 basis.
Rural Landless Employment Guarantee Programme (RLEGP): The Rural Landless

Employment Guarantee Programme (RLEGP) was launched on the 15th August, 1983
with the objective of generation gainful employment, creating productive assets in rural
areas and improving the overall quality of rural life. The programme was funded by the
Central government on 100% basis While most of the objectives and stipulations under
this were similar to those of NREP, it was to be limited only to the landless, with
guaranteed employment of 100 days.
Jawahar Rozgar Yojana/ Jawahar Gram Samriddhi Yojana: The National Rural
Employment Programme and Rural Landless Employment Guarantee Programme were
merged in April 1989 under the Jawahar Rozgar Yojana (JRY). The JRY was meant to
generate meaningful employment opportunities for the unemployed and underemployed
in rural areas through the creation of economic infrastructure and community and
social assets. A major proportion of JRY funds were spent on roads and buildings.

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The JRY was revamped from 1 April 1999 as the Jawahar Gram Samriddhi Yojana
(JGSY). It became a programme for the creation of rural economic infrastructure with
employment generation as a secondary objective. The 60:40 wage labour/material ratio
in the JRY was relaxed. The programme was implemented by village panchayats and
provides for specific benefits to SC/STs, the disabled and provides for the maintenance
of community assets created in the past. The wage employment under the programme
was given to Below Poverty Lines (BPL) families. The JGSY was implemented as a CSS
with funding in the ratio of 75:25 between the Centre and the States.
EMPLOYMENT ASSURANCE SCHEME (EAS): The Employment Assurance Scheme

(EAS) was launched on 2nd October, 1993 in 1772 identified backward blocks of 257
districts situated in drought prone, desert, tribal and hill areas where the Revamped
Public Distribution System (RPDS) was in operation. The primary objective of the EAS
was creation of additional wage employment opportunities during the period of acute
shortage of wage employment through manual work for the rural poor living below the
poverty line. The secondary objective is the creation of durable community, social and
economic assets for sustained employment and development. EAS is open to all the
needy rural poor living below the poverty line. A maximum of two adults per family are
provided wage employment. While providing employment, preference is given to SCs/STs
and parents of child labour withdrawn from hazardous occupations who are below the
poverty line. The programme is implemented through the Zilla Parishads (DRDAs in
those States where Zilla Parishads do not exist)
Sampoorna Grameen Rozgar Yojana (SGRY) SGRY, launched in 2001, aims at

providing additional wage employment in all rural areas and thereby food security and
improve nutritional levels. The SGRY is open to all rural poor who are in need of wage
employment and desire to do manual and unskilled work around the village/habitat.
The programme is implemented through the Panchayati Raj Institutions (PRIs). The
Sampoorna Grameen Rozgar Yojana is an actually a combination of the provisions under
the Employment Assurance Scheme (EAS) and Jawahar Gram Samridhi Yojana (JGSY).
The programme was implemented by the District Panchayats, Intermediate Panchayats
and Gram Panchayats.
This scheme was subsumed in NREGP which has been initiated since 2 Feb,2006.
INDIRA AWAAS YOJANA (IAY): It was in June, 1985 that Indira Awaas Yojana was
launched as a sub-scheme of RLEGP by earmarking a part of the fund for construction
of houses for SCs/STs and freed bonded labourers. When Jawahar Rozgar Yojana (JRY)
was launched in April, 1985, 6% of the funds was allocated for housing for the SCs/STs
and freed bonded labourers. In 1993-94, the coverage was extended to Non-SC/ST
families by increasing the earmarked fund for housing under JRY to 10% and allowing
the use of the additional 4% for this category of beneficiaries. Indira Awaas Yojana was
made an independent scheme with effect from 1 st January, 1996. It is now a flagship
programme of the Ministry of Rural Development as part of the larger strategy of rural
poverty eradication, in order to reduce the rigours of poverty and to provide the dignity of
an address to the poor households to enable them to access different rural development
programmes.
The scheme is designed to enable Below Poverty Line (BPL) households identified by the
community through Gram Sabhas following criteria suggested for such identification
from time to time, to build their houses or get house sites with financial and technical
assistance from the Government.

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Latest amendment: The beneficiary were facilitated to avail loan of up to Rs.70000 for
plain area and Rs. 75000 for hilly areas construction of the house.
Upgradation of dilapidated kutcha house Rs. 15000 and House sites for eligible landless
Rs. 20000. A new house‘ would mean a house constructed with a minimum built up
area of at least 20 sq. mts. excluding the toilet.
The cost of the scheme except the component for provision of house sites were shared
between Government of India and State Governments in the ratio 75:25. In the case of
North Eastern States the ratio is 90:10. The cost of providing house sites were shared
50:50 between Government of India and State Governments. Government of India would
provide the full cost in respect of Union Territories (UTs).
At the national level, 60% of the funds were earmarked for SCs and STs with the
proportion between SCs and STs being decided from time to time by the Ministry of
Rural Development and reflected in the targets. Further, 15% of the funds would be set
apart for beneficiaries from among the minorities. The State should ensure that atleast
3% of beneficiaries are from among persons with disabilities.
The Ministry of Rural Development (MORD) provided equity support to the Housing and
Urban Development Corporation (HUDCO) for this purpose.
Pradhan Mantri Awas Yojana - Gramin :

·It replaces Indira Awas Yojana (IAY), which was launched as a sub-scheme of Jawahar
Rozgar Yojana in 1985.
· It will be implemented in rural areas across the country except Delhi and Chandigarh.
· Government to construct 1 crore pucca (permanent) houses for the rural poor in the
next three years 2016-17 to 2018- 19. The project will be implemented in a span of
three years and expected to boost job creation in rural areas. This scheme also aims at
Housing for All by 2022 GOI target.
· Beneficiaries of the rural houses would be chosen according to data taken from the
Socio-Economic Caste Census of 2011.
· An allowance of Rs. 120,000 in plain areas and Rs. 130,000 in hilly areas will be
provided for construction of homes.
· The unit size will be enhanced from the existing 20 sq.mt. to up to 25 sq.mt. including
a dedicated area for hygienic cooking.
· Funds will be transferred electronically directly to the account of the beneficiary.
· The beneficiary would be facilitated to avail loan of up to Rs.70000 for plain area and
Rs. 75000 for hilly areas construction of the house which is optional.
· The cost will be shared between central and state govt. in the ratio 60:40 for plain
areas and 90:10 for north eastern and hilly areas.
· Provision of assistance for toilets (Rs. 12000) for construction of toilets though
convergence with Swacch Bharat Mission-Gramin, MGNREGS or any other dedicated the

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source of funding. Beneficiary is entitled to 90/95 person day of unskilled labour
from MGNREGS.
· 5% beneficiary shall be from Persons with benchmark disabilities with priority to

women with disabilities.
· As on date 92.64 lakhs houses have been completed.
· Monitored by Ministry of Rural Development.
Pradhan Mantri Gramodaya Yojana (PMGY) PMGY launched in 2000-01 envisages

allocation of Additional Central Assistance (ACA) to the States and UTs for selected basic
services such as primary health, primary education, rural shelter, rural drinking water,
nutrition and rural electrification. The PMGY has two components: Programmes for rural
connectivity with 50 per cent allocation, and other programmes of primary health,
primary education, rural shelter, rural drinking water and nutrition with the remaining
50 per cent allocation.
Prime Minister's Rozgar Yojana(PMRY): This scheme has been launched by the Govt.
of India in 1993 to provide self employment opportunities to the unemployed youth and
women. Under the Prime Minister Rozgar Yojna, loans upto Rs. 1.00 lac for business and
Rs. 2.00 lac for Industrial & Agricultural activities are advanced by the Banks to those
unemployed Youth and Women who are 18 to 35 and 18 to 45 years of age respectively
and whose income (including the income of the parents / spouse) does not exceed Rs. 40
thousand per annum and he should be permanent resident of the area or at least three
years but in case of married women the residency criteria applies to her husband or in-
laws. The educational qualifications for eligibility under the scheme is 8th passed.
Rural Employment Generation Programme (REGP): REGP, launched in 1995 with the
objective of creating self-employment opportunities in the rural areas and small towns,
is being implemented by the Khadi and Village Industries Commission (KVIC). Under
REGP, entrepreneurs can establish village industries by availing of margin money
assistance from the KVIC and bank loans, for projects with a maximum cost of Rs.25
lakh. The borrower is required to invest his own contribution of 10 per cent of the
project cost. In case of SC/ST and other weaker section borrowers, the beneficiary’s con-
tribution is 5 per cent of the project cost. REGP is implemented in the rural areas and
small towns (population up to 20,000) for setting up village industries without any cap
on income, educational qualification or age of the beneficiary.
Prime Minister’s Employment Generation Programme (PMEGP) : The Prime Minister

Rozgar Yojana (PMRY) was discontinued in 2007-08 and in 2008-09 a new scheme
namely Prime Minister’s Employment Generation Programme (PMEGP) has been
introduced by merging the two schemes i.e. Prime Minister Rozgar Yojana (PMRY) and
Rural Employment Generation Programme (REGP).
Any individual above 18 years of age is eligible to apply under PMEGP. For setting up of
projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in
the business /service sector, the beneficiaries should possess at least VIII standard pass
educational qualification. General category beneficiaries can avail of margin money
subsidy of 25 % of the project cost in rural areas and 15% in urban areas, personal
contribution is 10% in rural areas and 5% in urban areas.

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For beneficiaries belonging to special categories such as scheduled caste/scheduled
tribe/OBC/minorities/women, ex-serviceman, physically handicapped, North Eastern
Region (NER), Hill and Border areas etc. the margin money subsidy is 35% in rural areas
and 25% in urban areas, personal contribution is 5%. Assistance under the Scheme is
available only for new projects.
The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10
lakh in the service sector.
The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a
statutory organization under the administrative control of the Ministry of MSME as the
single nodal agency at the National level.
In States, State Directorates of KVIC, Khadi and Village Industry Boards (KVIBs) and
District Industries Centres(DICs) implement the Scheme. In urban areas, only the DICs
are the nodal agencies.
District Level Task Force Committees (DLTFCs) headed by the District

Collectors/Magistrates scrutinize the applications and recommend the same to the
Banks, which take their own credit decision on the basis of viability of each project and
sanction the loans.
Pradhan Mantri Gram Sadak Yojana (PMGSY)

· The PMGSY, launched in December 2000 as a 100 per cent Centrally Sponsored
Scheme, aims at providing all-weather roads connectivity to unconnected
habitations with population of above 500 in the plain areas and above 250 in the
hilly areas, the Desert Areas (as identified in the Desert Development Programme),
the Tribal (Schedule V) areas and Selected Tribal and Backward Districts (as
identified by the Ministry of Home Affairs and Planning Commission).
· An Unconnected Habitation is one with a population of designated size (refer

above) located at a distance of at least 500 metre or more (1.5 km of path distance
in case of Hills) from an All-weather road or a connected Habitation.
· It is a 100% Centrally Sponsored Scheme and 0.75/ liter out of the Cess on High
Speed Diesel (HSD) is earmarked for this Programme.
· According to latest figures made available by the State Governments under a

survey to identify Core Network as part of the PMGSY programme, about 1.67 lakh
Unconnected Habitations are eligible for coverage under the programme. This
involves construction of about 3.71 lakh km. of roads for New Connectivity and
3.68 lakh km. under upgradation.
· The PMGSY is managed by the National Rural Infrastructure Development Agency.

The average speed of road construction under the PMGSY rose to 134 km per day
in FY2017-18.
· PMGSY-II aims to cover upgradation of existing selected rural roads based on a

criterion to make the road network vibrant.
· Monitored by Ministry of Rural Development

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· *National Rural Infrastructure Development Agency (NRIDA) was formerly known
as National Rural Roads Development Agency (NRRDA)
Swarna Jayanti Sahari Rozgar Yojna (SJSRY): The Urban Self Employment
Programme and the Urban Wage Employment Programme are the two special
components of the SJSRY, which, in December 1997, substituted for various extant
programmes implemented for urban poverty alleviation. SJSRY is funded on a 75:25
basis between the Centre and the States.
The scheme has been comprehensively revamped with effect from 2009-2010. The
scheme strives to provide gainful employment to the urban unemployed and under
employed poor, through encouraging the setting up of self employment ventures by the
urban poor living below the poverty line, skills training and also through providing wage
employment by utilizing their labour for construction of socially and economically useful
public assets. The thrust areas of the revised scheme are:
Supporting skill development and training programmes to enable the urban poor have
access to employment opportunities opened up by the market or undertake self-
employment; and
Empowering the community to tackle the issues of urban poverty through suitable self-
managed community structures like Neighbourhood Groups
(NHGs), Neighbourhood Committees (NHC), Community Development Society (CDS), etc.
The major changes that have been effected in the new scheme compared to the old
are:
For special category States (8 NER States and 3 other hilly States i.e. Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu &
Kashmir, Himachal Pradesh and Uttarakhand), the funding pattern for the Scheme
between Centre and the States, has been revised from 75 :25 to 90:10.
For the beneficiary under the Urban Self Employment Programme (USEP) component of
the Scheme, the education limit criteria of “not educated beyond 9th standard” has been
removed and now no minimum or maximum educational qualification level has been
prescribed for the purpose of eligibility of assistance.
.For the self-employment (individual category), the project cost ceiling has been
enhanced to Rs. 2.00 Lakhs from the existing Rs. 50000/- and the subsidy has also
been enhanced to 25% of the project cost (subject to a maximum of Rs. 50000/-), from
the existing 15% of the project cost (subject to a maximum of Rs. 7500/-).
For the group enterprises set up by urban poor women, the subsidy has been made as
35% of the project cost or Rs. 300,000/- or Rs. 60,000/- per member of the Group,
whichever is less. The minimum number required to form a women group has been
reduced from 10 to 5. The revolving fund entitlement per member has also been
enhanced from the existing Rs. 1000/- to Rs. 2000/-.
Under the Urban Wage Employment Programme (UWEP) component, which is

applicable to the towns having population less than 5 Lakhs as per 1991 census, the
60:40 Material labour ratio for the works under UWEP, flexibility of 10% (either side) is
now accorded to the States/UTs.
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The Skill Training of the Urban poor component has been restructured and quality skill
training will be provided to the urban poor linking it with certification, imparted
preferably on Public-Private Partnership (PPP) mode, with the involvement of reputed
institutions like IITs, NITs, Poly-techniques, ITIs, other reputed agencies etc. The average
expenditure ceiling per trainee has been enhanced from the Rs. 2600/- to Rs. 10000/-.
3% of the total Scheme allocation will be retained at the Central level for special
/innovative projects to be undertaken to implement a time-bound targeting to bring a
specific number of BPL families above the poverty line through self-employment or skill
development.
The revised scheme has the following components:

(i) Urban Self Employment Programme(USEP)
(ii) Urban Women Self-help Programme(UWSP)
(ii) Skill Training for Employment Promotion amongst Urban Poor(STEP-UP)
(iv) Urban Wage Employment Programme (UWEP)
(v) Urban Community Development Network (UCDN)
Valmiki Ambedkar Awas Yojana (VAMBAY): The VAMBAY launched in December 2001
facilitates the construction and up-gradation of dwelling units for the slum dwellers and
provides a healthy and enabling urban environment through community toilets under
Nirmal Bharat Abhiyan, a component of the scheme. The Central Government provides a
subsidy of 50 per cent, the balance 50 per cent being arranged by the State Government.
National Social Assistance Programme (NSAP): The National Social Assistance

Programme (NSAP) which came into effect from 15th August, 1995 represents a
significant step towards the fulfillment of the Directive Principles in Article 41 of the
Constitution. The programme introduced a National Policy for Social Assistance for the
poor and aims at ensuring minimum national standard for social assistance in addition
to the benefits that states are currently providing or might provide in future. The NSAP
initially had the following three components:- a) National Old Age Pension
Schemes (NOAPS) b) National Family Benefit Scheme (NFBS) c) National Maternity
Benefit Scheme (NMBS).
NSAP at present, comprises of Indira Gandhi National Old Age Pension Scheme
(IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), Indira Gandhi
National Disability Pension Scheme (IGNDPS), National Family Benefit Scheme
(NFBS) and Annapurna.
The assistance under the sub-schemes of NSAP are applicable for persons belonging to
Below Poverty Line (BPL) category. The other eligibility criteria and the scale of
assistance under the sub-schemes of NSAP are as follows:
· Indira Gandhi National Old Age Pension Scheme (IGNOAPS):The eligible age for
IGNOAPS is 60 years. The pension is Rs.200 p.m. for persons between 60 years
and 79 years. For persons who are 80 years and above the pension is Rs.500/ -
per month.

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· Indira Gandhi National Widow Pension Scheme (IGNWPS) : The eligible age is
40 years and the pension is Rs.300 per month. After attaining the age of 80 years,
the beneficiary will get Rs.500/ - per month.
· Indira Gandhi National Disability Pension Scheme (IGNDPS) : The eligible age
for the pension er is 18 years and above and the disability level has to be 80%. The
amount is Rs.300 per month and after attaining the age of 80 years, the
beneficiary will get Rs 500/ - per month . Dwarfs will also be a n eligible category
for this pension.
· National Family Benefit Scheme (NFBS) : Rs. 20000/ - will be given as a

lumpsum assistance to the bereaved household in the event of death of the bread -
winner. The death of such a breadwinner should have occurred whilst he/she is
more than 18 years of age and less than 60 years of age. The assistance would be
given to every case of death of breadwinner in a family.
· Annapurna Scheme: 10 kgs of food grains (wheat or rice) is given per month per
beneficiary. The scheme aims at providing food security to meet the requirements
of those eligible old aged persons who have remained uncovered under the
IGNOAPS.
District Rural Development Agency (DRDA): The objective of the scheme of DRDA
(District Rural Development Agency) Administration was to strengthen the DRDAs and to
make them more professional and effective. Under the scheme, DRDA is visualised as
specialised agency capable of managing anti-poverty programmes of the Ministry on the
one hand and effectively relate these to the overall efforts of poverty eradication in the
district on the other.
“DRDA Administration” Scheme was introduced from 1st April, 1999 under which the
salary and administrative expenses of DRDAs are funded on a 75:25 basis between
Centre and State Governments. However, from 2008-09 the funding pattern for N.E. 90 :
10. In the case of UTs, the Centre provides entire (100%) funds under the Scheme.
DROUGHT PRONE AREA PROGRAMME (DPAP), DESERT DEVELOPMENT

PROGRAMME (DDP) AND INTEGRATED WASTELANDS DEVELOPMENT
PROGRAMME (IWDP): The Drought Prone Area Programme (DPAP), Desert Development
Programme (DDP) and Integrated Wastelands Development Programme (IWDP) are being
implemented with effect from 1.4.1995 on a watershed basis, as per the
recommendations of the Technical Committee on DPAP and DDP headed by Dr. C.H.
Hanumantha Rao.
The main features of this strategy are:
• Area development programmes to be implemented exclusively on watershed basis.
• Programmes and activities to be confined to the identified watershed of about 500
hectares and are to be executed on a project basis spanning over a period of four to five
years.
• Watershed project to cover a village, as far as possible.
• Elaborate institutional mechanism at various levels clearly defined for effective
participation of the local people and the PRIs in all stages of project management.

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• DRDA/ZP to be the nodal Government agency at the district level to act as a facilitator
and provider of finances and technical assistance to the people’s orgasnisations
executing the watershed projects.
Drought Prone Area Programme (DPAP): DPAP aims at to minimise the adverse effects
of drought on production of crops and livestock and productivity of land, water and
human resources ultimately leading to the drought proofing of the affected areas. It also
aims at promoting overall economic development and improving the socio-economic
conditions of the resource poor and disadvantaged sections inhabiting the programme
areas.
Desert Development Programme (DDP): DDP has been envisaged as an essentially

land based activity and conceived as a long term measure for restoration of ecological
balance by conserving, developing and harnessing land, water, livestock and human
resources. The main objectives of this programme are: (i) combating drought and
desertification; (ii) encouraging restoration of ecological balance; (iii) mitigating the
adverse effects of drought and adverse edaphoclimatic conditions on crops and livestock
and productivity of land, water and human resources; (iv) promoting economic
development of village community; and (v) improving socio economic conditions of the
resource poor and disadvantaged sections of village community viz; assetless and
women.
Integrated Wastelands Development Programme (IWDP): IWDP has been under

implementation since 1989-90 wherein wastelands are being developed with the active
participation of stakeholders i.e. user groups, self help groups and PRIs. Here, the
projects are sanctioned in favour of DRDAs/ZPs for the period of five years. The projects
are implemented through the Project Implementing Agencies (PIAs) which can be a Line
Department or a reputed NGO having sufficient experience in the field of watershed
development. The programme is implemented all over the country. IWDP is a 100 per
cent Central Sector scheme. The cost norm is Rs.4000 per hectare. The basic objective of
this scheme is to take up integrated wastelands development based on village/micro
watershed plans.
The major activities taken up under the scheme are: (i) soil and moisture conservation
measures like terracing, bunding, trenching, vegetative barriers etc; (ii) planting and
sowing of multi-purpose trees, shrubs, grasses, legumes and pasture land development;
(iii) encouraging natural regeneration; (iv) promotion of agro-forestry and horticulture; (v)
wood substitution and fuel wood conservation measures; (vi) measures needed to
disseminate technology; training, extension and creation of greater degree of awareness
among the participants; and (vii) encouraging people’s participation.
Antyodaya Anna Yojana: Antyodaya Anna Yojana a scheme launched by the Central
Government on 25th December 2000 for the interests of the poor and first implemented
in the Indian state of Rajasthan.. This scheme will provide wheat and rice to the BPL
families of the country at subsidized prices. Under this, every family is given 35 kg of
rice and wheat per month at a price of Rs 3 & 2 per kg respectively. At present, more
than two crore households are benefitting from this scheme, including BPL, widows’
families or sick person/ handicap/ persons of 60 years and above who have no surety
equipment for subsistence or social assistance.
Monitored by the Ministry of State for Consumer Affairs, Food & Public
Distribution.

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Aajeevika Grameen Express Yojana (AGEY): The Government of India has decided to
launch a new sub-scheme named “Aajeevika Grameen Express Yojana (AGEY)” as part of
the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). The
Self Help Groups under DAY-NRLM will operate road transport service in backward
areas. This will help to provide safe, affordable and community monitored rural
transport services to connect remote villages with key services and amenities (such as
access to markets, education and health) for the overall economic development of
backward rural areas. This will also provide an additional avenue of livelihood for SHGs.
Key Facts
AGEY will help to provide safe, affordable and community monitored rural transport
services to connect remote villages with key services and amenities such as access to
markets, education and health for the overall economic development of backward rural
areas.
The transport services will be provided by e-rickshaws, 3 and 4 wheeler motorised
transport vehicles to connect remote villages with the help of Self Help Groups (SHGs)
under DAY-NRLM. This will provide an additional avenue of livelihood for SHGs.
The scheme will be implemented initially in 250 blocks in the country on a pilot basis for
a period of 3 years (2017-20) with each block provided upto six vehicles to operate
transport services. The Community Investment Fund (CIF) provided to Community
Based Organization (CBOs) under DAY-NRLM will be utilized to provide interest free loan
to SHG member for purchase of transport vehicles.
The members of the CBO and the beneficiary SHG member shall also be provided
adequate training in the Rural Self Employment Training Institutes (RSETIs) and other
partner organizations. Monitored by Ministry of Rural Development
It provides two options for implementation.

Option I:
· Vehicle will be financed by the Community Based Organizations (CBOs) out of its
CIF corpus. The vehicle will be purchased and owned by CBO and leased to SHG
member.
· The beneficiary SHG member will operate the vehicle on selected route and will
pay a monthly lease rental to the CBO.
· The decision regarding the ownership of the vehicle after the cost of vehicle is fully
paid up through lease rental will be taken by the CBO.
Option II:
· CBO will provide an interest free loan from its CIF corpus to SHG member for
purchase of the vehicle.
· SHG member will repay the loan over a maximum period of 6 years and bear all
the costs connected with the operation of the vehicle, including annual cost of

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insurance, road tax, permit cost, maintenance cost and all other running costs of
the vehicle (i.e., fuel, oil, etc.).
After repayment of the loan, the ownership of the vehicle will be transferred to the SHG
member
About Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-

NRLM):
The Swarn jayanti Gram Swarozgar Yojana (SGSY) was a flagship programme of the
Ministry of Rural Development. It was started in 1999 and was restructured in FY 2010-
11 for implementation as the National Rural Livelihoods Mission. The SGSY aimed at
providing sustainable income to rural BPL households through income generating
assets/economic activities in order to bring them out of poverty.
Aajeevika - National Rural Livelihoods Mission (NRLM) was launched by the Ministry of
Rural Development (MoRD), Government of India in June 2011.
Aided in part through investment support by the World Bank, the Mission aims at
creating efficient and effective institutional platforms of the rural poor, enabling them to
increase household income through sustainable livelihood enhancements and improved
access to financial services.
NRLM set out with an agenda to cover 7 Crore rural poor households, across 600
districts, 6000 blocks, 2.5 lakh Gram Panchayats and 6 lakh villages in the country
through self-managed Self Help Groups (SHGs) and federated institutions and support
them for livelihoods collectives in a period of 8-10 years.
In addition, the poor would be facilitated to achieve increased access to rights,
entitlements and public services, diversified risk and better social indicators of
empowerment. DAY-NRLM believes in harnessing the innate capabilities of the poor and
complements them with capacities (information, knowledge, skills, tools, finance and
collectivization) to participate in the growing economy of the country.
In November 2015, the program was renamed Deendayal Antayodaya Yojana (DAY-
NRLM).
The aim of Mission is to mobilize 10-12 crore rural households into self-help groups in a
time bound manner by 2024-25.
Monitored by Ministry of Rural Development
Key Features:
Universal Social Mobilisation - At least one woman member from each identified rural
poor household, is to be brought under the Self Help Group (SHG) network in a time
bound manner. Special emphasis is particularly on vulnerable communities such as
manual scavengers, victims of human trafficking, Particularly Vulnerable Tribal Groups
(PVTGs), Persons with Disabilities (PwDs) and bonded labour. NRLM has devised special
strategies to reach out to these communities and help them graduate out of poverty.
Participatory Identification of Poor (PIP) - The inclusion of the target group under
NRLM is determined by a well-defined, transparent and equitable process of
participatory identification of poor, at the level of the community. All households
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identified as poor through the PIP process is the NRLM Target Group and is eligible for
all the benefits under the programme. Target Group is identified through the
Participatory Identification of Poor (PIP) method. The PIP is a community-driven process
where the Community Based Organisations (CBOs) themselves dentify the poor in the
village using participatory tools. The list of poor identified by the CBO is vetted by the
Gram Sabha.
Community Funds as Resources in Perpetuity - NRLM provides Revolving Fund (RF)

and Community Investment Fund (CIF) as resources in perpetuity to the institutions of
the poor, to strengthen their institutional and financial management capacity and build
their track record to attract mainstream bank finance.
Financial Inclusion - NRLM works on both demand and supply sides of financial
inclusion. On the demand side, it promotes financial literacy among the poor and
provides catalytic capital to the SHGs and their federations. On the supply side, the
Mission coordinates with the financial sector and encourages use of Information,
Communication & Technology (ICT) based financial technologies, business
correspondents and community facilitators like ‘Bank Mitras’.
Livelihoods - NRLM focuses on stabilizing and promoting existing livelihood portfolio of

the poor through its three pillars – ‘vulnerability reduction’ and ‘livelihoods
enhancement’ through deepening/enhancing and expanding existing livelihoods options
and tapping new opportunities in farm and non-farm sectors; ‘employment’ - building
skills for the job market outside; and ‘enterprises’ - nurturing self-employed and
entrepreneurs (for micro-enterprises).
Financial Assistance provided to CBOs under NRLM:

Financial assistance in form of Revolving Fund, Vulnerability Reduction Fund, and
Community Investment Fund is provided to the CBOs. NRLM does not provide direct
financial support to individual members.
· Revolving Fund (RF): NRLM provides a Revolving Fund (RF) support to SHGs in
existence for a minimum period of 3/6 months and follow the ‘Panchasutra’ –
regular meetings, regular savings, regular internal lending, regular recoveries and
maintenance of proper books of accounts. Minimum of Rs. 10,000 and up to a
maximum of Rs. 15,000 per SHG.
· Vulnerability Reduction Fund (VRF): VRF, to the tune of Rs.1500 per member, is
provided to the SHG Federations at the village level in the intensive blocks. VRF
will be used for addressing the vulnerabilities of the members like food security,
health security etc., and for meeting the needs of the vulnerable persons in the
village.
· Community Investment support Fund (CIF): CIF, to the tune of Rs.3000 per
SHG member, is provided to the CLFs in the intensive blocks, to be maintained as
resource in perpetuity by the CLF. The CIF is used, by the Federations, to advance
loans to the SHGs and/or to undertake the common/collective socio-economic
activities.
· Interest subvention: NRLM has a provision for interest subvention, to cover the
difference between the Lending Rate of the banks and 7%, on all credit from the
banks/financial institutions availed by women SHGs, for a maximum of Rs 3,
00,000 per SHG.
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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): National

Rural Employment Guarantee Act 2005 (NREGA), Notification dated September 7, 2005
and it came into force on February 2, 2006 in 200 backward districts. Monitored by
Ministry of Rural Development.
On 2nd October 2009 an amendment was made in the National Rural Employment
Guarantee Act 2005, to change the nomenclature of the Act from NREGA to MGNREGA.
Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA).
· To enhance livelihood security in rural areas by providing at least 100 days of

guaranteed demand based wage employment in a financial year to every household
whose adult members volunteer to do unskilled manual work.
· Such a household will have to apply for registration to the local Gram Panchayat, in
writing, or orally.
· The Gram Panchayat after due verification will issue a Job Card to the household as a
whole. The Job Card will bear the photograph of all adult members of the household
willing to work under NREGA. The Job Card with photograph is free of cost.
· A Job Card holding household may submit a written application for employment to the
gram Panchayat, stating the time and duration for which work is sought. The minimum
days of employment have to be fifteen.
· Beneficiaries are willing rural population, unskilled manual labourers and seasonally
unemployed.
· A 60:40 wage and material ratio has to be maintained.
· No contractors and machinery is allowed.
· Wages are to be paid according to minimum wages as prescribed under the Minimum
Wages Act 1948 for agricultural labourers in the State. Wages are linked to Consumer
Price Index (Agriculture labour).
· If work is not provided within 15 days of applying, applicants are entitled to an
unemployment allowance.
· MGNREGA is to be implemented mainly by gram panchayats.
· At least one-third beneficiaries shall be women.
· Social audit has to be done by the gram sabha atleast once in every 6 months.
· Focuses on creation of durable assets as per local needs.
· Disbursement of wages has to be done on weekly basis and not beyond a fortnight.
· Work should ordinarily be provided within 5 km radius of the village or else extra
wages of 10% are payable.
·Work site facilities such as crèche, drinking water, shade have to be provided.
The different categories of permissible works are as follows:

· Water Conservation and water harvesting
· Drought Proofing (including plantation and afforestation)
· Flood Protection
· Land Development
· Minor Irrigation, horticulture and land development on the land of SC/ST/ -
BPL/IAY and land reform beneficiaries
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· Rural connectivity
Funding:
Central Government -100% of wages for unskilled manual work, 75% of material cost of
the schemes including payment of wages to skilled and semi-skilled workers.
State Government- 25% of material including payment of wages to skilled and semi-
skilled workers cost. 100% of unemployment allowance by state government
Highlights:
Total No. of districts covered = 691
Total No. of Blocks= 6921
Total No. of Gram Panchayats =262630
Total No. of Job Cards issued[In Cr] =13.13
Total No. of Workers[In Cr] =25.78
Total No. of Active Workers[In Cr] =11.51
(i)SC worker against active workers[%] =19.5
(ii)ST worker against active workers[%] =16.31
Women Person days out of Total (%) in 2018-19 =57.02 (54.55% in 2017-18)
Average days of employment provided per Household = 17.58
Average Wage rate per day per person(Rs.) = 175.07
House hold benefited- 1.92 crs
Total asset generated till date- 4.9 crs
e-Saksham: Electronic-Saksham is a Massive Open Online Course developed primarily

for building the capacities of MGNREGS technical functionaries (Gram Rozgar Sevak,
Barefoot Technician, Technical Assistant, Engineer etc.) nationwide on the GIS based
planning process.
Janmanrega’ – a Citizen-centric Mobile Application (CCMA): The Ministry of Rural

Development (MoRD) launched ‘Janmanrega’ – a Citizen-centric Mobile Application
(CCMA). This was launched by Hon’ble Minister of Rural Development on 19th of June
2017. Janmanrega has been developed with collaboration between the MoRD, National
Informatics Centre (NIC) and National Remote Sensing Centre (NRSC, Hyderabad).
Current Features of the App:-

· Background
· About MGNREGA
· Objectives
· Stakeholders
· Ten Entitlements
· Works
· Referring to Friends
· Setting of Preference, for switching between English & Hindi versions
User Registration & Logging-in

· Searching for Assets
· Searching for Nearby Assets, based on User’s Current Location
· Providing Feedback on Asset

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‘GeoMGNREGA’: The Mahatma Gandhi NREGA GIS Solution, named ‘GeoMGNREGA’
intends to provide a single and integrated view of asset information system across the
rural India.
GeoMGNREGA has been launched on 1st September, 2016. This involves photo
geotagging of Mahatma Gandhi NREGA completed assets by the use of mobile
application.
The Ministry has signed MoU with National Remote Sensing Centre, Indian Space
Research Organisation to provide technology support. NRSC has developed mobile
application and the web portal for displaying Mahatma Gandhi NREGA assets.
GeoMGNREGA Bhuvan portal (e-Governance) acts as a gateway to facilitate and
coordinate the sharing of geospatial data between stakeholders from various
jurisdictional levels in the spatial data community.
This facilitates search, locate and publish geospatial data wherein the end users can
access, share and publish (with appropriate log-in authenticity) in response to the needs
of diverse user groups. The GIS enabled portal will maintain process, store, distribute
and improve the utilization of geospatial data for planners, decision makers and public.
GeoMGNREGA leverages ‘Bhuvan’, the software platform developed by National Remote

Sensing Centre (NRSC) of ISRO for this purpose.
National Food Security Act, 2013:

· It aims to provide subsidized food grains to approximately two thirds of India's
population i.e 75% in rural areas and 50% in urban areas.
· It converts the various existing food security schemes into legal entitlements (i.e.) from
welfare based approach to rights based approach.
· It includes the Midday Meal Scheme, ICDS scheme and the Public Distribution System.
It also recognizes maternity entitlements.
· Under NFSA, each beneficiaries is entitled to 5 kilograms of food grains per month at
Rs3 ,Rs. 2 , Rs. 1 per kg for rice, wheat and coarse grains respectively.
· However, the beneficiaries under Antyodaya Anna Yojana will keep receiving the 35 Kg
per household per month at same rates.
· It guarantees age appropriate meal, free of charge through local anganwadi for children
up to 6 months and one free meal for children in age group 6-14 years in schools.
· Every pregnant and lactating mother is entitled to a free meal (during pregnancy and
six months after child birth)at the local anganwadi as well as maternity benefits of Rs
6,000, in installments. Maternal benefits not extended to Government employees.
· The identification of eligible households is left to state government.
· NFSA-2013 provides for a two-tier grievance redressal structure, involving the District
Grievance Redressal Officer (DGRO) and State Food Commission.

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· The act provides for the creation of State Food Commissions. Each Commission shall
consist of a chairperson, five other members and a member-secretary (including at least
two women and one member each from Scheduled Castes and Scheduled Tribes).
· The eldest woman who is not less than 18 years of age, in every eligible household, shall be head of the
household for the purpose of issue of ration.
· Where a household at any time does not have a woman or a woman of eighteen years
of age or above, but has a female member below the age of 18 years, then, the eldest
male member of the household shall be the head of the household for the purpose of
issue of ration card and the female member, on attaining the age of 18 years, shall
become the head of the household for such ration cards in place of such male member.
· Monitored by the Ministry of State for Consumer Affairs, Food & Public
Distribution.
Mid-day Meal Scheme (MDMS): MDMS was launched as a Centrally Sponsored Scheme
in 1995 with the objective of improving the nutritional status of school children,
eliminating classroom hunger and enhancing school enrolment, retention and
attendance. From 2008-09, the programme has been extended to upper primary level.
The government envisages expansion of MDMS in a progressive manner including to
children in private schools (since they now have a 25% quota for Economically Weaker
Sections), particularly in SC/ST and Minority concentrated areas.
In 2001 MDMS became a cooked Mid Day Meal Scheme under which every child
studying in classes I – V in every Government and Government aided primary school was
to be served a prepared Mid Day Meal with a minimum content of 300 calories of energy
and 8-12 gram protein per day for a minimum of 200 days.
In September 2004 the scheme was revised to provide cooked mid day meal with 300
calories and 8-12 grams of protein to all children studying in classes I – V in
Government and aided schools and Education Guarantee Scheme (EGS) and Alternative
& Innovative Education (AIE) centres.
In October 2007, the scheme has been further revised to cover children in upper primary
(classes VI to VIII) initially in 3479 Educationally Backwards Blocks (EBBs). The calorific
value of a mid-day meal at upper primary stage has been fixed at a minimum of 700
calories and 20 grams of protein by providing 150 grams of food grains (rice/wheat) per
child/school day.
The Scheme was further extended in 2002 to cover not only children studying in
Government, Government aided and local body schools, but also children studying in.
· MDMS Monitored by the Ministry of Human Resource Development.
Integrated Child Development Services (ICDS) Scheme was launched with the
objectives (i) to improve the nutritional and health status of children in the age-group 0-
6 years;(ii) to lay the foundation for proper psychological, physical and social
development of the child; (iii) to reduce the incidence of mortality, morbidity,
malnutrition and school dropout; (iv) to achieve effective co-ordination of policy and
implementation amongst the various departments to promote child development; and (v)
to enhance the capability of the mother to look after the normal health and nutritional
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needs of the child through proper nutrition and health education. In order to achieve
these objectives, a package of six services namely (i) supplementary nutrition (SNP),
(ii) immunization, (iii) health check-up, (iv) referral services, (v) pre-school non-formal
education and vi) nutrition & health education are provided. Three of the six services
namely Immunization, Health Check-up and Referral Services are delivered through
Public Health Infrastructure under the Ministry of Health & Family Welfare.
Task Force on Elimination of Poverty in India: A Task Force on Elimination of Poverty

in India was constituted under the Chairmanship of the Vice Chairman (Arvind
Panagariya) of NITI Aayog. NITI Aayog's task force on elimination of poverty has
submitted its report to Prime Minister Narendra Modi.
The current poverty estimates are based on the methodology recommended by the expert
group under the chairmanship of Suresh D Tendulkar in 2009. As per the numbers,
only 22 per cent of the people can be classified as poor in the country.
All other latest schemes related to poverty eradication and employment generation
will be covered in Government Schemes under relevant Ministry Chapter.

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Poverty and Employment

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Poverty Alleviation and

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Situational or Transitory poverty is generally caused by a sudden crisis or loss and is

Generational or Chronic Poverty poverty occurs in families where at least two

Poverty line in India: India is having a well-designed poverty measurement mechanism

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The causes of poverty in Indian economy are:

· Recommended ‘national minimum consumption expenditure’ for a household of 5

(iii) discontinuation of ‘scaling’ of poverty estimates based on National Accounts

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2004-05 446.7 578.8

2009-10 672.8 859.6

2011-12 816.0 1000.0

Other major recommendations were –

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Committees Tendulkar C Rangarajana

Set Up In 2005 2012

Submitted Report 2009 2014

Per capita Monthly

Urban Poverty Line Per Day

Urban Poverty Line Per Month

Urban Poverty Line Per Month,

Rural poverty line Per Day Per

Rural poverty line (Rs) per

Rural poverty line (Rs) Per

BPL ( Below Poverty Line ) In

only calorific value Calorie +Protein +

Calories In Rural Areas 2400 2155

Calories In Urban areas 2100 2090

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Worker Population Ratio (WPR): WPR is defined as the number of persons/person-days

Proportion Unemployed (PU): It is defined as the number of persons/person-days

Unemployment Rate (UR): UR is defined as the number of persons/person-days

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Structural Unemployment: Structural Unemployment occurs when rate of capital

Frictional unemployment: Frictional unemployment, also called search unemployment,

Regional unemployment: When structural unemployment affects local areas of an

Seasonal unemployment: Seasonal unemployment exists because certain industries

Under-Employment: Under-employment refers to the situation when people in

Disguised Unemployment: Disguised unemployment is a kind of unemployment where

Voluntary unemployment: Voluntary unemployment is defined as a situation when

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Poverty eradication measures in India: In terms of mission objectives, functioning and

Dedicated Poverty Eradication Programmes: These Programmes have the dedicated

Employment Generation Programmes: Here, several self-employment and wage

Social welfare and support programmes: National Social Assistance Programme,

Major poverty alleviation, employment generation and basic services programmes

Training of Rural Youth for Self-Employment (TRYSEM): The Scheme of Training of

SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY): The single self-employment

SGSY is conceived as a holistic programme of micro enterprises covering all aspects of

National Rural Employment Programme (NREP): The programme was expected to

Rural Landless Employment Guarantee Programme (RLEGP): The Rural Landless

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EMPLOYMENT ASSURANCE SCHEME (EAS): The Employment Assurance Scheme

Sampoorna Grameen Rozgar Yojana (SGRY) SGRY, launched in 2001, aims at

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Pradhan Mantri Awas Yojana - Gramin :

· Funds will be transferred electronically directly to the account of the beneficiary.

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· 5% beneficiary shall be from Persons with benchmark disabilities with priority to