PROJECT REPORT

On
Poverty alleviation schemes

Submitted To: Submitted By:

Ms. DIPPENDER MAM PAYAL VERMA

1165

CLASS: B.COM (H)

SECTION-B, II YEAR

JANKI DEVI MEMORIAL COLLEGE, DELHI UNIVERSITY

 ACKNOWLEDGEMENT

One must not limit challenges but rather challenges the limits. I would like to thank
all those persons whose cooperation helped me to complete my project
successfully.

I am heartily thankful to Ms. Dippender mam for giving me her cooperation,

guidance, valuable time, inspiration, encouragement and help whenever I required
without which my project would not have been possible.

I m greatly indebted to Ms.Dippender mam my Project Guide for devoting her

valuable time and efforts towards my project. I thank her for being a constant
source of knowledge, inspiration and help during this period of making project.

Last but certainly not the least I would like to thank my family members, without
their support it was impossible to go for the project.
 WHAT IS POVERTY
Poverty in India has been defined as that situation in which an individual
fails to earn income sufficient to buy minimum means of subsistence like:

A reasonable satisfactory level of nutritional diet.

Minimum required clothing, housing, and furniture.

Minimum level of health facilities, clean water, and education.

Poverty is general scarcity or death, or the state of one who lacks a certain amount
of material possessions or money. It is a multifaceted concept, which includes
social, economic political elements. Poverty seems to be chronic or temporary, and
most of the time it is closely related to inequality. As a dynamic concept, poverty is
changing and adapting according to consumption patterns, social dynamics and
technological change. Absolute poverty or destitution refers to the deprivation of
basic human needs which commonly includes food, water, sanitation, clothing,
shelter and health care. Relative poverty is defined contextually as economic
inequality in the location or society in which people live

Economic aspects of poverty focus on material needs, typically including the

necessities of daily living, such as food, clothing, shelter, or safe drinking water.
Poverty in this sense may be understood as a condition in which a person or
community is lacking in the basic needs for a minimum standard of well-being and
life, particularly as a result of a persistent lack of income
In India, the Planning Commission is the premier agency for conducting research
and analysis on the poverty data and statistics and presenting these to the public. It
is a fact that this is a controversial issue with many government ministries keen to
manipulate this data to exaggerate the success of their poverty
eradication schemes.

The Planning Commission of India periodically estimates poverty lines and

poverty ratios for each year for which Large Sample Surveys on Household
Consumer Expenditure have been conducted by the National Sample Survey
Office (NSSO) of the Ministry of Statistics and Programme Implementation.

Normally these surveys are conducted on quin quinine basis (Every 5 years).
However the last survey in this series was conducted in 2009-10 (NSS 66th round),
since 2009-10 was not a normal year because of a severe drought in India, the
NSSO repeated the large scale survey in 2011-12 (NSS 68th round).

According to the release from the Planning Commission, 25.7% of people in rural
areas were below the so-called poverty line and 13.7% in urban areas. This is
comparable with 33.8% and 20.9%, respectively, in 2009-10, and 42% and 25.5%,
respectively, in 2004-05. The poverty numbers are estimated on the basis of
consumption expenditure captured in the five- year surveys undertaken by the
National Sample Survey Office (NSSO). The decline in poverty numbers was first
reported by The Hindu on 16 July. The press release sought to show that the
number of poor has declined faster in the period during which the Congress-led
United Progressive Alliance was in power and that, in the same period, the
monthly expenditure per person had increased more equitably, especially in rural
areas. Nearly 20 million people were pulled out of poverty every year, the data
showed. While experts welcomed the decline in poverty, they flagged concerns
such as the comparability of the numbers. The rich is dominating the poor people
in the world. So we want to say that don't see poor people as your slaves.
India suffers from a lot of poverty, which means that many people do not have
enough money. In 2012, According to latest report by the Planning Commission of
India (Tendulkar Committee) reported that 21.9% of all people in India fall below
the international poverty line of US$ 1.25 per day. Over the last decade, poverty
has witnessed a consistent decline with the levels dropping from 37.2% in 2004-05
to 29.8% in 2009-10. The number of poor is now estimated at 250 million, of
which 200 million reside in rural India.

Facts of poverty in India

Who comes in the category of the poorest class in India? Tribal people, dalits
and labour class including farm workers in villages and casual workers in cities are
still very poor and make the poorest class in India.

Where do the majority of poor live in India? 60% of the poor still reside in the
states of Bihar, Jharkhand, Orissa, Madhya Pradesh, Chhattisgarh, Uttar Pradesh
and Uttarakhand. The reason for these states to be in the category of the poorest
state is because 85% of tribal people live there. Also, most of these regions are
either flood-prone or suffer from drought-like conditions. These conditions hamper
agriculture to a great extent, on which the household income of these people
depends.

According to the Global Hunger Index Report 2012 by the International Food
Research Institute, India ranks 65 in Global Hunger Index. Though there is no
shortage of food production in India, our nation still has the highest percentage of
underweight children under five. India is working hard to become a superpower in
2020, but what about these poor in India as our nation still lags behind in
improving GHI.

India at present has a greater share of the poor around the world. Thirty years ago,
India was home to one-fifth of worlds poor but now it is a home to one-third of
poor people. This means we now have more poor in India as compared to thirty
years ago.

International poverty line stands at $ 1.25 per day and in 2010, 32.7% of the total
population in India was below this line. According to 2011 poverty Development
Goals Report, poverty in India is expected to drop by 22% in 2015.
 Causes of poverty
The causes of poverty in India are nothing short of complex but a lot of progress
has been made to tackle them. So, this article will focus more specifically whats
been done to alleviate poverty so far and what is still holding things back.

The economic reforms of 1991, despite spurring a huge growth of the economy,
have left the country with terrible inequalities, within cities as well as between
urban and rural areas. They were the best opportunity to seriously tackle the causes
of poverty in India and more specifically rural poverty. With two thirds of the
population living in rural areas and some 500 million poor (or more), even urban
poverty stems from the rural migrations to the city.

1. Rapidly Rising Population:

The population during the last 45 years has increased at the rate of 2.2% per
annum. On average 17 million people are added every year to its population which
raises the demand for consumption goods considerably.

2. Low Productivity in Agriculture:

The level of productivity in agriculture is low due to subdivided and fragmented

holdings, lack of capital, use of traditional methods of cultivation, illiteracy etc.
This is the main cause of poverty in the country.

3. Under Utilized Resources:

The existence of under employment and disguised unemployment of human

resources and under utilization of resources has resulted in low production in
agricultural sector. This brought a down fall in their standard of living.

4. Low Rate of Economic Development:

The rate of economic development in India has been below the required level.
Therefore, there persists a gap between level of availability and requirements of
goods and services. The net result is poverty.
6. Price Rise:

The continuous and steep price rise has added to the miseries of poor. It has
benefited a few people in the society and the persons in lower income group find it
difficult to get their minimum needs.

7. Unemployment:

The continuously expanding army of unemployed is another cause of poverty. The

job seeker is increasing in number at a higher rate than the expansion in
employment opportunities.

8. Shortage of Capital and Able Entrepreneurship:

Capital and able entrepreneurship have important role in accelerating the growth.
But these are in short supply making it difficult to increase production
significantly.

9. Social Factors:

The social set up is still backward and is not conducive to faster development.
Laws of inheritance, caste system, traditions and customs are putting hindrances in
the way of faster development and have aggravate" the problem of poverty.

10. Political Factors:

The Britishers started lopsided development in India and reduced Indian economy
to a colonial state. They exploited the natural resources to suit their interests and
weaken the industrial base of Indian economy.

In independent India, the development plans have been guided by political

interests. Hence, the planning a failure to tackle the problems of poverty and
unemployment.
 MEASURES TO REDUCE POVERTY
I. General Measures
1) Employment opportunities
Poverty can be eliminated if the poor people are given the jobs according to their needs and
talents. Self employment can also be provided to them. Government can set up institutions which
trains them in some practices and skills.

2) Establishment of Small Scale Industries

Government should develop cottage, handicrafts and other small scale industries to in the
backward regions of our country. Moreover this will transfer resources from the areas of surplus
to the deficit solving the problem of urbanization.

3) Education
Government should take steps to spread awareness for education so that the people do not have
to depend on others for their income. They can also protect themselves from exploitation by the
greedy traders.

4) Reduce Inflation
Inflation tends to make poor poorer and rich richer. There should be stability in the price level of
the country. Government should also reduce the burden of tax on the poor and charge more on
the richer class .Rationing should be promoted so that the poor people get the basic necessities if
life at lower price level.

5) Check Population growth

much of the problem of poverty can be solved if the population of the country can be reduced to
a average level. This will make developmental plans successful and the poor people will have a
greater share in the funds of the government.

6) Proper Utilization of Resources

Resources of the country should be utilized properly so that we can have the benefits of those
free gifts of nature.

7) Uplift of Agriculture
Agriculture is the backbone of our country. It provides income to vast number of people. Hence
the government should also concentrate on it and not only on the industries.
 II. Special Measures for poverty alleviation &
employment generation in:
A) Rural Areas

SHIKSHA SAHAYOG YOJANA

The scheme was launched on 31 December 2001, with the object to lessen the
burden of parents in meeting the educational expenses of their children. It provides
scholarships to students of parents living below or marginally above poverty line
and who are covered under Janashree Bima Yojana and are studying in 9th to 12 th
standard (including ITI courses) A scholarship amount of Rs 300 per quarter per
child is paid for a maximum period of four years and for maximum two children of
a member covered under Janashree Bima Yojana. No premium is charged for this
benefit. As on 31 March 2006, scholarship were disbursed to 3,20,253
beneficiaries.

SAMPOORNA GRAMEEN ROJGAR YOJANA

Sampoorna Grameen Rozgar Yojana (SGRY) was started on September 25, 2001
by amalgamation of the on-going program of EAS & the JGSY. It is done with the
aim of offering extra earnings employment & food safety, besides making of
sturdy community possessions in rural regions. The program is self-aiming in
character with provisions for particular stress on women, scheduled tribes,
scheduled castes, & parents of kids inhibited from dangerous professions. While
inclination is provided to families BPL for giving wage employment in SGRY,
deprived families over the poverty line may as well be given employment every
time NREGA has been started.

The yearly expend for the scheme is Rs.10, 000 crore and it comprises investment
on food grains as of 50 lakh tones. The money part is mutual among the Centre &
the States.
KRISHI SHRAMIK SAMAJIK SURAKSHA YOJANA

The multi-benefit scheme for the agricultural workers, commenced on 1 July 2001,
provides life insurance protection, periodical lump sum survival benefit and
pension to those who were between the age of 18-50 years. Minimum membership
of the group at commencement should be 20. Gram Panchayat was to act as nodal
agency and with the help of NGO/SHG or any other agency, would identify the
agricultural workers. As on 31 March 2006, 29,074 agricultural workers have been
covered. Sale of new policies discontinued from December 2003. No new lives are
to be added even under existing schemes at the time of renewal.

INDIRA AWAAS YOJANA

Indira Awaas Yojana, which used to be a component of Jawahar Rozgar Yojana

became an independent Scheme from 1997-1998 onwards. Its objective is
construction of free houses to members of the Scheduled Castes/ Scheduled Tribes,
Freed Bonded Labourers in Rural areas and also to non SC/ST rural poor living
below poverty line. The beneficiaries are selected from the Below Poverty Line
(BPL) list approved by the Grama Sabha. At least 60% of the total IAY allocation
during a financial year should be utilized for construction/ up gradation of dwelling
units for SC/ST BPL rural households. A maximum 40% of allocation is for non-
SC/ST BPL rural households. 3% of the above categories should be allocated for
physically and mentally challenged persons. Government of India has also asked
the States to earmark 15% of the beneficiaries from amongst minorities. It is
funded by the Centre and State in the ratio of 75:25.

ANTYODAYA ANNA YOJANA

The Antyodaya Anna Yojana, an important milestone in providing food grains to

the poor was launched on December 25, 2000. It contemplated providing 25 kg. Of
food grains per month at highly subsidized rates of Rs. 2 per kg. For wheat and Rs.
3 per kg. For rice to each Antyodaya family. The total number of families to be
covered under this scheme was placed at one crore.
 Antyodaya Anna Yojana has started in six States - Himachal Pradesh, Rajasthan,
Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Uttar Pradesh and the UT of
Dadra & Nagar Haveli.

About 36 lakh families in these States have been identified and are being given
distinctive Antyodaya ration cards.

It is expected that by April end this year the Antyodaya Anna Yojana would start
in most of the States.

The annual requirement of food grains for Antyodaya families would be 30 lakh
tones.

The total subsidy on Antyodaya Anna Yojana for a full year will be Rs. 2315
crore.

NATIONAL FOOD FOR WORK PROGRAMME

National Food for Work Programme was launched in November, 2004 in 150
most backward districts of the country, identified by the Planning Commission in
consultation with the Ministry of Rural Development and the State governments.

The objective of the programme was to provide additional resources apart from the
resources available under the Sampoorna Grameen Rozgar Yojana (SGRY) to 150
most backward districts of the country so that generation of supplementary wage
employment and providing of food-security through creation of need based
economic, social and community assets in these districts are further intensified.
The scheme was 100 per cent centrally sponsored. The programme has since been
subsumed in National Rural Employment Guarantee Act which has come in force
in 200 identified districts of the country including 150 NFFWP districts. The Act
provides 100 days of work guarantee to every rural household whose members
volunteer to do unskilled manual work.

The new Food for Work Programme is also a move towards wage employment
guarantee. It is an experiment, which if successfully carried out, will give the
government the necessary confidence to take responsibility for providing wage
employment guarantee, initially in these 150 identified districts and later,
gradually in the remaining districts of the country.
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT
GUARANTEE SCHEME

VISION

Mahatma Gandhi NREGA seeks to enhance the livelihood security of the

households in rural areas of the country by providing at least 100 days of
guaranteed wage employment in every financial year to every household whose
adult members volunteer to do unskilled manual work.

MISSION

To augment wage employment opportunities by providing employment on demand

and thereby extend a security net to the people and simultaneously create durable
assets to alleviate some aspects of poverty and address the issue of development in
the rural areas.

Brief History

Mahatma Gandhi NREGA was launched in 200 select districts on 2.2.2006 and
was extended to 130 additional districts during 2007-08. All the remaining rural
areas in the country have been covered under the Act w.e.f. 1.4.2008. Presently,
Mahatma Gandhi NREGA is being implemented in all the notified rural areas of
the country.

The Ministry of Rural Development is the nodal Ministry for the implementation
of Mahatma Gandhi NREGA. It is responsible for ensuring timely and adequate
resource support to the States and to the Central Council. It has to undertake
regular review, monitoring and evaluation of processes and outcomes. It is
responsible for maintaining and operating the MIS to capture and track data on
critical aspects of implementation, and assess the utilization of resources through a
set of performance indicators. MORD will support innovations that help in
improving processes towards the achievement of the objectives of the Act. It will
support the use of Information Technology (IT) to increase the efficiency and
transparency of the processes as well as improve interface with the public. It will
also ensure that the implementation of Mahatma Gandhi NREGA at all levels is
sought to be made transparent and accountable to the public.
BHARAT NIRMAN

The renowned business plan Bharat Nirman has been designed for augmenting and
creating fundamental rural infrastructure. This scheme comprises various pro0jets
on roads, irrigation, Sadak Yojana, housing or Indira Awaas yojana, national rural
water schemes for water supply, Rajiv Gandhi Grameen vidyutikaran yojana or
electrification and telecommunication.

Bharat Nirman is a branded programme. Accepting the Policy a step towards

villages
Union Government launched a new scheme named Bharat Nirman Yojana on
December 16 2005. It is now 8 years old, taking huge strides into rural
development. Bharat Nirman
Programme is the mixture of old and new schemes and flagship programme based
on the philosophies of Gandhi, Swami Vivekananda, Ambedkar, Rajiv Gandhi and
other leaders.
This scheme aims at developing rural infrastructure. In recognition of the role
played by infrastructure in poverty removal, the Government launched a time
bound programme of construction of rural infrastructure under the name Bharat
Nirman for implementation during the four year period 2005-09.
B) Urban Areas

Prime Ministers Rozgar Yojana (P.M.R.Y) For Educated Unemployed Youth

Prime Minister Rozgar Yojana for providing self-Employment to Educated

Unemployed Youth was announced by the Prime Minister on 15th August, 1993 to
provide self-employed opportunities to one million educated unemployed youth in
the country. The Scheme has been formally launched on 2nd October, 1993.

1. Objectives: The PMRY has been designed to provide employment to more

than a million People by setting up of 7 lakhs micro enterprises by the educated
unemployed youth. It relates to the setting up of the self-employment ventures
through industry, service and business routes. The scheme also seeks to associate
reputed non-governmental organisations in implementation PMRY scheme
especially in the selection, training of entrepreneurs and preparation of project
profiles.

2. Coverage: The scheme intends to cover urban areas only during 1993-94 and
whole of the country from 1994-95 onwards. From 1994-95 onwards, the existing
self-employment Scheme for the Educated Unemployed Youth (SEEUY) will be
subsumed in PMRY.

3. Eligibility: Any unemployed educated person living in any part of the country
rural or urban fulfilling the following conditions will be eligible for
assistance. However, during 1993-94, the scheme would be operated only in
urban areas.

a. Age: Between 18 to 40 years (SC/ST - 45 years).

b. Qualification: Metrics (Passed or Failed) or ITI passed or having undergone
Govt. sponsored technical course for a minimum duration of 6 months.
c. Residency: Permanent resident of the area for at least 3 years Document like
Ration Card would constitute enough proof for this purpose. In its absence
any other document to the satisfaction of the Task Force should be produced.
d. Family Income: Up to Rs.40, 000/- per annum. Family for this purpose
would mean spouse and parents of the beneficiary and family income would
include income from all sources, whether, wages, salary, pension,
agriculture, business, rent etc.

4. Reservation: Preference should be given to weaker section including women.

The scheme envisages 22.5% reservation for SC/ST and 27% for other
Backward Classes (OBCs)
Swarna Jayanti Shahari Rozgar Yojana

Introduction

The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched on

01.12.1997 after subsuming the earlier three schemes for urban poverty
alleviation, namely Nehru Rozgar Yojana (NRY), Urban Basic Services for
the Poor (UBSP), and Prime Ministers Integrated Urban Poverty
Eradication Programme (PMIUPEP). The key objective of the Scheme was
to provide gainful employment to the urban unemployed or underemployed
through the setting up of self-employment ventures or provision of wage
employment.
To overcome the difficulties faced by the States/UTs and address certain
drawbacks in the implementation of SJSRY, the Guidelines of the Scheme
have been revised. It is presumed that the revised guidelines will assist in the
effective implementation of SJSRY and make a dent on the urban poverty
scenario in the country. The Revised Guidelines will come into effect from
1.4.2009

Objectives

The objectives of the revised Swarna Jayanti Shahari Rozgar Yojana (SJSRY) are:

Addressing urban poverty alleviation through gainful employment to the

urban unemployed or underemployed poor by encouraging them to set up
self-employment ventures (individual or group), with support for their
sustainability; or undertake wage employment;
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 Neighborhood Groups
(NHGs), Neighborhood Committees (NHC), Community Development
Society (CDS), etc.

The delivery of inputs under the Scheme shall be through the medium of urban
local bodies and community structures. Thus, Swarna Jayanti Shahari Rozgar
Yojana seeks to strengthen these local bodies and community organizations to
enable them address the issues of employment and income generation facing the
urban poor.
Valmiki Ambedkar Awaas Yojana

The VAMBAY was started in 2001, December to improve the circumstances of the
slum inhabitants in urban areas living under the poverty row lacking sufficient
refuge.

The plan has the main aim of assist the building & up-gradation of house for slum
residents & offering healthy & enabling urban surroundings by society toilets in
the Nirmal Bharat Abhiyan, a constituent of the proposal.

The Central Government gives a subsidy of fifty percent, the remaining fifty
percent being approved by the Government of State.

There are agreed upper limit on expenses both for house units & society toilets.
During the year of 2003-04, Central financial support to the amount of 239 crore
Rs. has been given. Since beginning up to 2004, May 522 crore Rs. has been given
as Government of India financial support for the building/up gradation of dwelling
units 2, 46,035 in number & toilet seats of 29,263 numbers in the plan.

The scheme has the primary objective of facilitating the construction and up-
gradation of dwelling units for slum dwellers and providing 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.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

JNNURM is a massive city-modernization scheme launched by the Government of

India under Ministry of Urban Development. It envisages a total investment of
over $20 billion over seven years. Named after Jawaharlal Nehru, the first Prime
Minister of India, the scheme was officially inaugurated by Prime Minister
Manmohan Singh on 3 December 2005 as a programme meant to improve the
quality of life and infrastructure in the cities. It was launched in 2005 for a seven-
year period (up to March 2012) to encourage cities to initiate steps for bringing
phased improvements in their civic service levels. The government had extended
the tenure of the mission for two years, i.e., from April 2012 to March 31 2014.

JNNURM is a huge mission which relates primarily to development in the context

of urban conglomerates focusing to the Indian cities. JNNURM aims at creating
economically productive, efficient, equitable and responsive Cities by a strategy
of upgrading the social and economic infrastructure in cities, provision of Basic
Services to Urban Poor (BSUP) and wide-ranging urban sector reforms to
strengthen municipal governance in accordance with the 74th Constitutional
Amendment Act, 1992.

FLAWS OF THE ANTI-POVERTY PROGRAMMES

Wrong choice of beneficiaries

Inadequate funding

Poor asset Quality

Lack of accountability

Lack of involvement of local community

Poor targeting