Planning has been one of the pillars of the Indian polity since

independence and the country’s strength is derived from the achievement of

planning. The policies and programs have been designed with the aim of

alleviation of rural poverty which has been one of the primary objectives of

planned development in India. Rural development implies both the economic

betterment of people as well as greater social transformation. On 31st March

1952, an organization known as Community Projects Administration was set up

under the Planning Commission to administer the programs relating to

community development. The community development program inaugurated on

October 2, 1952, was an important landmark in the history of the rural

development. Main objective of rural development is to alleviate rural poverty

and ensure improved quality of life for the rural population especially those

below the poverty line. These objectives are achieved through formulation,

development and implementation of programs relating to various spheres of rural

life and activities, from income generation to environmental replenishment.

Inadequate transportation service in rural areas has had serious impact on

the lives and welfare of the majority of the population in India, where two

third of the population lives in rural areas rural transportation network gives

shape to overall environment of the population living in the villages. The

absence of all whether road connectivity is widely regarded as a major

impediment in the development of rural areas. Isolation and remoteness limits

the access of rural population to secure employment and income opportunities,

health facilities, educational institutions and limit their participation in public

affair. It hinders their mobility and access to the market centers. Lack of

facilities force the farmers to sell their products to middleman or dispose at

157

throw away prices. Such disparities attempts only worsen their economic

conditions. Rural roads play a significant role in opening up backward areas and

accelerating their socio economic development.

Historical Development

Since 1940’s the Government of India and the State Governments had

drawn several policies, programs and conceived various schemes for the

development of rural roads in India. The policies framed and targets were set

under the long-term road development plans and accordingly funds were

allocated in various rural development programs/schemes under the Five Year

Plans.

Long Term Policy Issues

During the early part of the century, it was realized that in order to

achieve sustainable growth in agriculture and industrial sectors in India, the then

Government of India appointed Jaykar Committee to advise suitable road policy

for India. It was in the year 1943; a group of Engineers formulated the First

Twenty Year Road Development Plan popularly known as Nagpur Plan (1943-

1961) towards planning of the road system in India. Subsequently Bombay Plan,

the Second Twenty Year Road Development Plan (1961-81) was formulated and

recommended for implementation. In continuation, Third Twenty Year Road

Development Plan, known as Lucknow Plan (1981-2001) was conceived and

implemented. The criteria, targets and achievement for road development laid

down during these plans are presented in Table

158

Table 1

Criteria, Targets and Achievements in the Road Development Plans

Name of the Plan

Basis of fixation of targets Targets km

Achievement Km

Target density

(all roads)

Nagpur Plan (1943-61)

Length of ODRs + VRs assessed on the basis of number of villages with population 500 and less,

501-1000, 1001-2000 and 2001-5000

332,335 500,802 0.32 m per sq.km

Bombay Plan (1961-

81)

Length based on the number of villages with population less than 500, 500-1000, 1000-2000 and

2000-5000

651,780 912,684 0.46 km per sq.km.

Lucknow Plan

(1981-01)

Length assessed on the basis of number of villages

and towns.

2,189,0000 2,994,000 0.82 km per sq.km

Source: Rural Road Development Vision 2025 (Draft)

Currently, The Road Development Plan Vision-2021 has been brought

out to guide the Central and State Governments in developing the road

infrastructure of adequate standards in the country. The strategy proposed in the

vision document for planning rural roads emphasized the need for preparation of

master plans for rural road network in each district. The planning of network for

the district may cover all habitations with minimum population of 100 and above

to be served by all-weather roads. Table 1 presents the prioritized targets for the

provision of all-weather roads. It also suggested for providing connectivity to all

the habitations by the end of this decade (2010).

159

Table 2

Vision 2021- Target for Connectivity of Villages

Villages (population category) to be connected by all-weather roads

Target Year

Villages with population above 1000 2003

Villages with population below 500-1000 2007

Villages with population below 500 2010

Source: IRC (2001): Road Development Plan-Vision 2021

The Vision also gives priority by way of special attention to the coastal

regions, tribal areas, deserts and hill areas for road development in general. It has

also recommended for consideration to improve the existing fair-weather roads

to all weather standards, by providing adequate cross drainage structures

wherever they are missing and also for completion of works in progress.1

Rural Roads in Five Year Plans

Constitutionally, the development of rural roads is the responsibility of

the State Government in India. Because of this, the rural roads received very

little attention from the Central Government until 1967, when a special

Committee, under the chairmanship of H.P. Sinha was appointed. The

Committee studied the rural roads and the connectivity pattern and

recommended certain criteria for developing and for allocation of budget for

rural roads. Since Fifth Five Year Plan, funds are allocated under various rural

development program such as Minimum Needs Program (MNP), National Rural

Employment Program (NREP), Rural Landless Employment Guarantee Program

1 . http://planningcommission.nic.in/aboutus/committee/wrkgrb11/wg11_rroad.pdf assessed on 1.8.2011

160

(RLEGP), Jawahar Rozgar Yojana (JRY), etc. for the development of rural

roads.

During the Fifth Five Year Plan period (1974-1979) rural roads were

included as a part of Minimum Needs Program (MNP) of the Central

Government and received importance for development. The program envisaged

connectivity of all villages with population of 1500 and above, as per 1971

census, with an all-weather road by the end of the Fifth Five Year Plan. It also

proposed a cluster approach for connectivity in respect of hilly, coastal, tribal

and desert areas, where the villages are smaller in population size.

In the year 1978 a working group on rural roads was set up by the

Planning Commission of India to formulate connectivity criteria and make

projections of road length and estimate requirement of funds for development of

rural roads. The Committee made an assessment of existing rural road

connectivity and estimated that an amount around Rs.11,000 crore (at 1978

prices) would be required to connect all villages with all-weather road. Some of

the recommendations of the working group were taken into consideration while

formulating budget for road development in the Sixth Five Year Plan (1980-85)

and about 30% of the total road outlay was allocated for rural road sector.

Similarly, the plan outlay under the Seventh Five Year Plan (1985-90) was

Rs.1729.40 crore for providing rural connectivity.

The criteria for connectivity under MNP were periodically revised.

During the Eighth Five Year Plan (1992-1997) the criteria for linkage of villages

to a road were modified. Priorities were accorded to link all villages with a

population of 1000 and above on the basis of 1981 census and special efforts to

161

accelerate village connectivity in respect of backward regions and tribal areas.

The connectivity criteria under MNP were once again revised for the Ninth Five

Year Plan (1997-2002). The revised norms for connectivity of villages adopted

the 1991 population census as the base and the criteria were as follows:

Plain areas: (i) 100 % of all villages with population above 1000 and (ii) 75%

of all villages with population between 500-1000.

Hilly areas: (i) 100 % of all villages with population above 500 and (ii) 75% of

villages with population between 200-500

Tribal, coastal, riverine and desert areas: (i) 100% of villages with population

above 500 and (ii) 75% of villages with population between 200-500.

During Tenth Five Year Plan, PMGSY envisage providing connectivity to all

habitation of 500 and above in all States and 250 and above in hill States, tribal

and desert areas.2

Pradhan Mantri Gram Sadak Yojana (PMGSY)

Rural road connectivity is not only a key component of rural development

by promoting access to economic and social services and thereby generating

increased agricultural incomes and productive employment opportunities in

India, it is also as a result, a key ingredient in ensuring any sustainable poverty

reduction program. Notwithstanding the efforts made, over the years, at the State

and Central levels, through different programs, about 40% of the habitations in

the country are still not connected by all-weather roads. It is well known that

even where connectivity has been provided, the roads constructed area of such

2 . Ibid.

162

quality (due to poor construction or maintenance) that they cannot be

categorized as all-weather roads.

With a view to redressing the situation, Government has launched the

Pradhan Mantri Gram Sadak Yojana on 25th December, 2000. The Pradhan

Mantri Gram Sadak Yojana (PMGSY) is a 100% centrally sponsored scheme.

50% of the cess on High Speed Diesel (HSD) is earmarked for this program.3

PMGSY Objectives

The primary objective of the PMGSY is to provide connectivity, by way

of an all - weather road (with necessary culverts and cross – drainage

structures, which is operable throughout the year), to the unconnected

habitations in the rural areas, in such a way that habitations with a population

of 1000 persons and above are covered in three years (2000-2003) and all

unconnected habitation with a population 500 persons and above by the end of

the Tenth Plan Period (2007). In respect of the Hill States (North-East, Sikkim,

Himachal Pradesh, Jammu & Kashmir, Uttaranchal) and the Desert Areas (as

identified in the Desert Development Program) as well as the Tribal (Schedule

V) areas, the objective would be to connect habitations with a population of 250

persons and above.4

Salient Features of the PMGSY

The Ministry of Rural Development (MoRD) has been entrusted with the

task of organizing the program. Some of the noteworthy features of the program

are:

3 . http://www.drd.nic.in/Guide/pmgsyguide.htm assessed on 2.12.2010 4 . Ibid.

163

• Full Central funding, with 50% of the cess on High Speed Diesel being

earmarked for this program.

• Preparation of master plans and core network for rural roads for all the

districts and blocks, identifying the unconnected habitations and proposing

the most cost-effective routes for the purpose.

• Design and specifications as contained in the Rural Roads Manual (RRM,

IRC SP: 20), published by the Indian Roads Congress (IRC).

• Appointment of a dedicated State Level Agency in all States with overall

responsibility for rural road planning, program execution and management.

• Appointment of program implementing agencies, by all States, typically

Public Works Departments (PWDs) or Rural Engineering Organizations

(REOs).

• Independent State Technical Agencies (STA) commissioned by MoRD to

vet designs and estimates.

• Use of competitive tendering by the implementing agencies of all works on

the basis of a Standard Bidding Document (SBD).

• Execution of the works within a period of 9-12 months.

• A defects liability and maintenance period of 5 years specified in the

contracts for the roads constructed under the program, with funds for

maintenance being provided by the States.

• A Central on-line web-based financial and project monitoring system.

• A 3-tier quality management system.

164

• Operational management at Central level by the National Rural Roads

Development Agency (NRRDA).5

Resource Mobilization

50% of cess on diesel is made available for the development of rural roads

as per the provision of the Central Road fund Act 2000. It is expected that about

Rs. 16000 crore would be available for the road works under Bharat Nirman

from the cess on diesel.

Keeping in view the resource gap for the program, Government of India has

been taking step to arrange additional funds for the program. The Asian

Development Bank and the World Bank have agreed to fund the program.

ADB’s first loan of $ 400 million for rural roads approved in 2003 to finance

PMGSY in Chhattisgarh and Madhya Pradesh. ADB’s second lending of $ 750

million for PMGSY approved in 2005 covering Assam, Orissa and West Bengal.

The World Bank is assisting construction and up gradation of road works under

the PMGSY in Himachal Pradesh, Jharkhand, Rajasthan and Uttar Pradesh with

loan of $ 399.5 million.

In pursuance to the suggestion made by the National Rural Infrastructure

Committee in 2005, a separate window in NABARD was opened with a

provision of Rs. 4,000 crore during 2006-07 to augment the funding for rural

road projects under ‘Bharat Nirman’. During 2007-2008 this window assisted

the PMGSY with an outlay of Rs. 4500 crore. Rs. 15374 crore have been drawn

from RIDF window of NABARD till 17th February 2010.6

5 . Ministry of Rural Development, Pradhan Mantri Gram Sadak Yojana, Operations Manual, National Rural Road Development Agency NRRDA,Government of India, 2005.

6 . Ministry of Rural Development, Annual Report, 2009-10, Department of Rural Development, Government of India, p. 25.

165

National Rural Roads Development Agency

The National Rural Roads Development Agency (NRRDA), created as per

the Cabinet decision of 7th August, 2001, was registered under the Societies

Registration Act, on 14th January, 2002. The NRRDA provides support on the

following:

• Designs & Specifications and Cost Norms.

• Principal Technical Agencies (PTAs) and State Technical Agencies (STAs)

• District Rural Roads Plans and Core Network.

• Scrutiny of Project Proposals

• National Quality Monitors

• On-Line Management & Monitoring System

• Training, Workshops, R&D etc.

The NRRDA is a lean multi-disciplinary body consisting of 7 officers and 3

officials all taken on deputation. All specialized inputs are outsourced through

consultants/service providers.7

Executing Machinery

States have been asked to make the following institutional arrangements:

a. A State Rural Roads Development Agency (SRRDA) or similar body with

distinct legal status, to receive PMGSY funds and act as nodal point for

rural road sector policy and management.

b. Executional arrangements overseen at State level by officers of the SRRDA

including State Quality Coordinator (SQC), Financial Controller,

Empowered Officer, IT Nodal Officer etc.

7 . http://PMGSY.nic.in/pmgs12.asp#1 assessed on 18 January 2011.

166

c. Program Implementation Units (PIUs) at division/district Level for

managing the program, accountable to the SRRDA.

d. Arrangements for efficient management including:

• Online Management and Monitoring Systems (OMMS)

• 3 tier quality control

• Centralised works accounting system

• Transparent tendering using Standards Bidding Document

e. Separate bank accounts for ‘Program’, ‘Administrative’ and ‘Maintenance’

funds, centrally managed by the agency and operated by the PIUs.

f. State Level Standing Committee Comprising Secretaries of the program

departments (Rural Development and PWD); Secretaries of Transport,

Finance, Forests & Environment & IT; SIO, NIC; and State Technical

Agencies (STAs) to review:

1. Progress of ongoing works

2. Quality control (2nd tier at State level)

3. Capacity enhancement & training of executing agency

4. Progress in computerized online monitoring

5. Budgeting of maintenance funds as per PMGSY guidelines

6. Land width availability for roads

7. Forests and environmental clearance

8. Provision of public transport on PMGSY roads created, etc.

9. Road safety issues.8

Quality of Works

8 . http://PMGSY.nic.in/pmgs12.asp#1 assessed on 18 January 2011

167

Under the PMGSY, quality is sought to be ensured through a three tier

quality control system. The first two tiers of the quality control structure are

supervised by the State quality coordinators appointed by the State Government.

In which the executing agency is primarily responsible for maintaining the

quality at the program implementation unit. The second tier provides for quality

monitoring by the State Government through independent State Quality

Monitors (SQMs).

National Rural Roads Development Agency (NRRDA), as a third tier

engages National Quality Monitors (NQMs) to verify on a systematic

randomized basis, the quality of road works. Observations of National Quality

Monitors are shared with the PIUs thereafter Action Taken Report are prepared

and sent to the NRRDA through the State Quality Coordinators. NRRDA

Monitors the submission of ATR and States are apprised of the status of ATRs

from time to time. NRRDA has developed a quality control handbook and

quality control registers which are to be maintained for all road works.

Online Monitoring

Computerization of data has the advantage of reliable storage, easy

retrieval, immediate processing and complicated calculation ability useful in

generating the high level abstract information for use of management. The

advantage of a centralized database is that the range of comparison is not only

vertical in terms of the time period but also horizontal in terms of geographic

spread across districts and States. If this is added the facility of being able to

access the data anywhere/anytime through a web-based system, the utility and

168

transparency is multiplied manifold, enabling an extremely high level of project

management and monitoring.9

Analysis of Performance of States

The State wise statement showing physical and financial progress under

PMGSY is presented in Table 3. The physical target represents the length of

road works and numbers of road works sanctioned and completed. The financial

target are represented by the total amount released and expenditure made.

Progress of Work under PMGSY

Under the program, till 2009 December, project proposals for 103,097

road works measuring 405651 km and valued at Rs. 112435 crore have been

cleared by the Ministry of Rural Development. An amount of Rs. 60,939 crore

has been released to the States/UTs/Agencies. In all 66,093 road works

measuring 2, 50,605 kms have been completed incurring the expenditure of Rs.

59,852 crore.

Table 3 shows that on an average, about 64% of total sanctioned road

works and 62% of sanctioned road length are completed in time. Nearly 98% of

total amount released has been spent by the State agencies to complete the

physical targets. Out of all, nearly 12 States and union territory of Pondicherry

have achieved the physical target of number of road works and construction of

road length more than the national level average. These States are Andhra

Pradesh, Goa, Gujarat, Haryana, Karnataka, Maharashtra, Manipur, Meghalaya,

Nagaland, Punjab, Rajasthan and Uttar Pradesh.

9 . https://online.omms.nic.in/citizens/en/publications/user_manual/chatper1.pdf assessed on 18 January 2011.

169

Table 3

Statement showing Physical & Financial progress under PMGSY

S. No.

States Value of proposals cleared

Amount Released

(upto 28.01.2010)

No. of road

works

Length of road works

No. of road works

completed (upto

Dec’09)

Length of road works completed

(upto Dec’09)

% completed road works

(upto Dec’09)

% Length Completed

(upto Dec’09)

Exp. Upto Dec’09

% Exp. To Amount released

(upto Dec’09)

1 2 3 4 5 6 7 8 9 10 11 12

1. Andhra Pradesh 3915.35 2653.72 6196.00 20481.43 5141.00 15484.09 82.97 75.60 2673.21 100.73

2. Arunachal Pradesh 1613.28 696.71 687.00 3705.87 438.00 2313.76 63.76 62.44 656.08 94.17

3. Assam 8798.22 3574.67 4643.00 15900.62 1565.00 7324.27 33.71 46.06 3591.78 100.48

4. Bihar (RWD) 8590.99 1338.57 5788.00 18972.34 856.00 2042.45 14.79 10.77 1030.91 77.02

5. Bihar (NEA) 8354.47 2823.49 3428.00 18912.88 749.00 6083.16 21.85 32.16 21697.82 95.55

6. Chhattisgarh 6465.95 4076.91 5320.00 25508.58 3084.00 14690.40 57.97 57.59 4020.82 98.62

7. Goa 9.72 10.00 90.00 178.16 72.00 158.70 80.00 89.08 5.32 53.20

8. Gujarat 1421.86 894.10 3082.00 7908.57 2360.00 5727.70 76.57 72.42 920.42 102.94

9. Haryana 1517.96 1075.22 420.00 4589.33 316.00 3780.05 75.24 82.37 1055.80 98.19

10. Himachal Pradesh 2419.93 1264.08 2100.00 12166.15 1310.00 8210.03 62.38 67.48 1316.80 104.17

11. Jammu & Kashmir 2242.97 719.91 885.00 4772.13 254.00 1212.30 28.70 25.40 657.75 91.37

12. Jharkhand 2385.85 1096.86 1930.00 9190.88 707.00 4083.63 36.63 44.43 1023.86 93.34

13. Karnataka 3197.83 2043.96 3204.00 16138.47 2432.00 10527.80 75.91 65.23 2079.45 101.74

14. Kerala 718.74 321.05 953.00 2089.03 455.00 867.80 47.74 41.54 311.80 97.12

15. Madhya Pradesh 13280.47 7918.04 12471.00 55323.42 7318.00 32769.70 56.68 59.23 8029.01 101.40

16. Maharashtra 4667.59 2987.77 4891.00 20464.48 3699.00 13663.32 75.63 66.77 2956.01 98.94

17 Manipur 636.70 318.66 954.00 2424.21 638.00 1868.67 66.88 77.08 325.21 102.06

18 Meghalaya 313.88 158.87 409.00 1100.56 330.00 808.69 80.68 73.48 148.18 93.27

19 Mizoram 708.27 365.47 191.00 2487.16 98.00 1621.71 51.31 65.20 365.33 99.96

170

20 Nagaland 376.96 319.80 249.00 2674.87 217.00 2503.32 87.15 93.59 304,90 95.34

21 Orissa 9933.49 4838.81 7519.00 29283.83 3482.00 13378.10 46.31 45.68 4698.64 97.10

22 Punjab 1563.95 1133.99 761.00 4497.76 647.00 3569.29 85.02 79.36 1106.53 97.58

23 Rajasthan 8888.79 6824.99 11705.00 50781.13 10878.00 44110.07 92.93 86.86 6752.01 98.93

24 Sikkim 763.73 443.56 380.00 2893.97 152.00 2217.83 40.00 76.64 391.29 88.22

25 Tamil Nadu 2035.70 1088.58 4970.00 10053.99 3118.00 5975.07 62.74 59.43 1162.65 106.80

26 Tripura 1566.23 739.37 959.00 3050.98 472.00 1238.79 49.22 40.60 749.80 101.41

27 Uttar Pradesh 10058.64 7766.54 15708.00 41541.55 13501.00 33284.13 85.95 80.12 7576.15 97.55

28 Uttarakhand 1219.96 520.70 624.00 4708.45 293.00 2520.79 46.96 53.54. 557.03 106.98

29 West Bengal 4666.82 2870.28 2327.00 13580.25 1434.00 8501.08 61.62 62.60 2673.12 93.13

Grand Total 112334.40 60884.65 102844.00 405381.05 66016.00 250536.69 64.19 61.80 59837.68 98.28

Union Territories

30 A &N Islands 32.39 10.59 18.00 0.00 0.00 0.26 2.46

31 Dadra & Nagar Haveli

36.78 13.84 156.00 181.97 0.00 0.00 0.00

32. Daman & diu 10.00 10.00 0.00 0.00 0.00 4.94 49.40

33. Delhi 5.60 5.00 1.00 0.00 0.00 0.00 0.00

34. Lakshadweep 4.89 4.89 0.00 0.00 0.00 0.00 0.00

35. Pondicherry 11.58 10.00 78.00 87.92 77.00 68.53 98.72 77.95 9.30 93.00

Total (UTs) 100.64 54.32 253.00 269.89 77.00 68.53 30.43 25.39 14.50 26.69

Grand Total 112435.04 60938.97 103097.00 405650.94 66093.00 250605.22 64.11 61.78 59852.18 98.22

Source : Annual Report 2009-10, Department of Rural Development, Ministry of Rural Development

171

Outcome target under the program have been laid down in term of

habitations connected and length completed since 2005-06. Year wise target and

achievement are given in Annexure 1 and 2.

Impact Assessment

The ministry of rural development commissioned a quick independent

assessment of the socio-economic impact of the Pradhan Mantri Gram Sadak

Yojana (PMGSY) on the target group in the States of Assam, Himachal Pradesh,

Madhya Pradesh, Mizoram, Orissa, Rajasthan, Uttar Pradesh, Tamil Nadu and

West Bengal. Key findings of the study are:10

PMGSY roads has resulted in increased and easier movement of farmers and

their produce and increased agricultural profit.

1. The PMGSY roads had a positive impact on the agriculture infrastructure.

2. PMGSY has a significant impact on employment situation in terms of job

opportunities, more avenues for self-employment.

3. PMGSY led to expansion of local industries which has generated

employment opportunities.

4. Positive impact was observed with regard to increase in accessibility to

preventive and curative healthcare facilities.

5. Decrease in infant and child mortality is also reported in these States.

6. PMGSY facilitates accessibility to education and resulted in increased

school enrolment.

10 Ministry of Rural Development, Impact assessment of Pradhan Mantri Gram Sadak Yojana (PMGSY), Monitoring Division, Government of India, New Delhi, 2004 ,pp.4-8.

172

7. PMGSY also has a positive impact on girls and led to an increase in the

number of girls going to school.

8. PMGSY road connectivity facilitates the visits by Government officials.

And helps in better implementation of various Government schemes and

programs.

Impacts of rural roads on target group measured by Asian

Development Bank, key findings are;11

• Average per capita per annum income increase(2.5 times)

• Average per capita per annum expenditure increase(2 times)

• Employment rate increase (9%)

• Decrease in number of people below poverty line (3%)

• Travel time reduced by (7%)

• Increase in safe child deliveries (5%)

• Increase in immunization coverage (17%)

• Decrease in maternal/pre- natal deaths and mortality under 5 years age

(6%)

• Decrease in number of unrolled school age children and post primary

drop outs (8%)

• Increase in visits to nearby haats(20%)

• Increase in land value (30%)

• Decrease in incidence of agriculture produce being spoiled /damaged in

transit (13%)

• Increase in households possessing movable assets :

11 cleanairinitiative.org/.../ADB_Hideaki_Iwasaki_-_Rural_Roads_May2010.pdf assessed on 8 February, 2011.

173

• TV/Radio -33%, house hold furniture -54% , agriculture implements -

20% ,

• Cattle stock -80%

• Increase in house hold with connections to

• Electricity -50%, telephone 9%, drinking water supply -8%, sanitation/

toilet facilities 4%

Construction of rural roads brings all-around benefits to the hitherto

deprived rural areas and is seen as an effective poverty reduction strategy. The

economic benefits of rural roads includes increase in agricultural production,

changes in cropping pattern, better policies for agricultural produce, reduction in

transport cost, creation of new employment opportunities in farm and off farm

sectors, lower prices for essential commodities to rural consumers, better

climate for setting up cottage and agro industries, increase in production of dairy

products, etc. the impact of the new links on social life of rural population, is

reflected in the form of better medical care, more attendance in school, better

availability of public services, higher level of social interaction etc. improved

connectivity make daily communication to urban work place easier, reducing

migration, increasing rural employment and improving family life. Rural

connectivity enabled increased penetration of better quality consumer items and

durables, thus improving quality of life all this in turn, will stimulate not merely

the rural sector but the entire economy.

Major Challenges before PMGSY

Lack of adequate financial resources needed to achieve the objective of

Pradhan Mantri Gram Sadak Yojana (PMGSY). On 14 July 2010 Dr C.P. Joshi

174

then Minister of Rural Development and Panchayati Raj has highlighted the

challenges before the PMGSY scheme and said that “It is estimated that about

3.65 lakh kms of roads need to be constructed and over 3.68 lakh kms of roads

need to be upgraded to achieve the objectives of PMGSY. According to

estimates about Rs.1,24,000 crore at current prices would be required for the

new projects. An amount of Rs. 4,710 crore would be needed for service of

interest payments on the loan taken from National Bank for Agriculture and

Rural Development (NABARD) while more than Rs. 5,565 crore would be

required for quality monitoring, capacity building, etc. for the program. In all the

total outlay for PMGSY is estimated to be around Rs. 2,50,000 crore, out of

which Rs. 64,559 crore has been made available till 2009-10 for works. Hence,

an amount of Rs. 1,86,100 crore is needed for achieving the objectives of the

PMGSY by the end of the12th Five Year Plan.”12

Billions of dollars are needed to sustain these efforts. The Government

should attempt to mobilize private sector participation to bridge the resource gap

and increase operational and managerial efficiency. Though the program is

expected to improve the economic and social welfare of people, during the

planning and implementation stage of PMGSY environmental issues are also

taken in to account. Reasons for delay in implementation of PMGSY projects

include inadequate institutional capacity in some of the States and non-

availability of sufficient qualified technical personnel and limited number of

contractors. With an increase in volume of work the contractors are also required

to upgrade and enhance their capacity. This is possible by deployment of more

12 Ministry of Rural Development, Grameen Bharat, Vol.8, Issue 74, Government of India, New Delhi, August 2010, pp. 9.

175

machinery, engineering and managerial staff, as well as, training of personnel

and workmen.

Annual report of people on infrastructure has identified some reason for slow

progress of works these are:13

• Shortage of adequate number of dedicated Program Implementation

Units(PIUs) at State level

• Limited contracting capacity of State Governments

• Delay in getting forest clearance

• Non availability of private land for road construction

• Delay in award of contract and weak contract management

• Difficult terrain and inclement weather conditions

These are the major challenges faced by PMGSY, by addressing these

problems on national level; strategies can be developed to overcome the

constraints. Efforts should also be made to enhance the implementation capacity

of the program and innovative usage of technology should also be facilitated,

which is essential for successful implementation of programs.

Indira Awaas Yojana (IAY)

Introduction

Housing is one of the important aspects of social sector. This is to be

achieved through policies and programs aimed at promotion of' both equity and

excellence. Social sector planning, therefore, ensures that appropriate policies

and programs are formulated and adequate investments are provided by the State

13 Planning Commission, Annual Report to the People on Infra-structure, Government of India, New Delhi, 2009-10, pp.21

176

so that poor and vulnerable segments of the population can access essential

commodities and facilities based on their needs and not on their ability to pay.14

Although ‘food’ is the primary need of the people and ‘shelter’ secondary

nonetheless both ‘food’ and ‘shelter’ are two sides of the same coin and are

closely linked to each other. 'Poverty' is a curse in the society and leads to social

deprivation of the poor. Homelessness is expressed in social segregation. Hence,

removal of poverty and house less ness has to be tackled simultaneously. In fact,

planning for home for the poor is a part and parcel of planning for economic and

social development.15

General Assembly of United Nations Resolution 217 A (III) on December

10, 1948, Article 25 (1) States, “Everyone has the right to a standard of living

adequate for health and well-being of himself and his family including food,

clothing, housing and medical care and necessary social service, and the right to

security in the event of unemployment, sickness, disability, widowhood, old age

or other lack of livelihood in circumstances beyond his control”.16

The Planning Commission of India observes that in fulfilling the basic

needs of the population, housing ranks next only to food and clothing in

importance. A certain minimum standard of housing is essential for healthy and

civilized existence. The development of housing, therefore, must enjoy high

priority in a poor society such as ours where housing amenities are far below the

minimum standards that have been internationally accepted. Housing activity

serves to fulfill many of the fundamental objectives of the Plan such as

14 . Planning Commission, Ninth Five Year Plan (1997-2002), Vol. II, Government of India, New Delhi, p. 5.

15 . K.D. Gaur, “Housing for the Rural Poor”, Kurukshetra, Vol.44, No.3, May-June, 1996, p. 90. 16 . Human Development Report (2000), Oxford University Press Inc., New York, p. 15.

177

providing shelter and raising the quality of life particularly of the poorer sections

of the population of the country.17

National Campaign for Housing Rights (NCHR), 1986 defined housing

from the outset as being much more than a building of four walls and roof.

Housing was seen as an activity which empowered one to “live with dignity in

social, legal, and environmental security”, and with adequate access to the

essential housing resources of land, building materials, water, fuel, as well as

civic services and finance.18

The World Bank Encyclopedia (1987), while defining ‘housing’ states

that housing includes any kind of building that provides shelter for people It also

widens the scope by including the problems of city planning and community

services that provide good living conditions. According to the World Bank

Encyclopedia, dwellings, which are safe, sanitary, and comfortable, can be

classified as standard housing. It also says that housing that has proper heating

and ventilation helps people to stay in good health. Good housing provides

privacy and freedom. Standard housing includes hot and cold running water and

a well-planned sewage disposal system. It also provides electric light at night

and lets in plenty of sunlight by day. Poorly constructed, run-down, unsanitary

or overcrowded dwellings are called sub-standard housing.19

In the Third World countries, the housing problem is visible in its most

ugly and deviating form. With a burgeoning population, low-income levels, low

rate of accretion to the house stock, and inadequate maintenance of the existing

17 . Milloon Kothari, Dwelling Rights and Nature in Rural India, A Campaigns Response, Administrator, Vol. XXXIV, No. 3, July-September, 1989, p. 1.

18 . Ministry of Housing and Urban Development, National Housing Policy, Government of India, New Delhi, May 1988, p. 1.

19 . The World Bank Encyclopedia, World Bank Inc, a Scoff Betzer Co., Chicago, 1987, p. 12.

178

housing is already a problem of alarming proportions in many developing

countries.20 In the third World, where nearly two thirds of the population lives

below the poverty line, about 100 million people are estimated to be shelter

less.21

The Estimates Committee of the Lok Sabha in its 37th Report (1972-73)

was distressed to note that although 83 per cent of India’s population lived in

villages, about 73 per cent of rural population resides in unsatisfactory kutcha

structures. The problem of rural housing had not received the attention of the

Government. Following this, certain initiatives were taken by the Government

including the launching of the housing sites-cum-construction assistance scheme

which was initiated as a Central scheme in the Fourth plan which was later

transferred to the State sector with effect from April 1st, 1974 on the

recommendations of the NDC.22

Housing is a State subject, but the Union Government is responsible for

the formulation of policy with regard to program and approaches for effective

implementation of social housing schemes, particularly those pertaining to

weaker sections of the society.23 In view of various problems faced in relation to

housing in independent India, it became necessary for the Government to come

out with a comprehensive national policy, which clearly spelt out priorities for

promoting a sustained development of housing.

20 . G. Shankar, Nirmithi Movement: Answer for Low Cost Housing, Kurukshetra, Vol. 44, No 3, May-June, 1996, p. 74.

21 . Rural-Urban Divide Will Affect Development, The Economic Times, May 21, 1986, p. 8. 22 . Ministry of Rural Areas and Employment, Report on the Sub-group of Rural Housing for Ninth

Plan (1997-2002), Government of India, New Delhi, , p. 1. 23 . India Year Book, Research Reference and Training Division, Publication Division, Ministry of

Information and Broadcasting, Government of India, New Delhi, 2002 p. 164.

179

The National Housing Policy (NHP) and Habitat Policy (1988)

emphasized in its preamble that housing is not only a commodity good but also a

productive investment. It promotes economic activities as well as creates the

base for attaining several national policy goals.24

Some of the basic objectives of the policy are as follows:

(i) To motivate and help all people and in particular the homeless and the

inadequately housed, to secure for themselves affordable shelter through

access to land, materials, technology and finance.

(ii) To improve the environment of human settlements with a view to raise

the quality of life through the provision of drinking water, sanitation and

other basic services. The policy envisages priority for promoting access to

shelter for the homeless and disadvantaged groups such as Scheduled

Castes (SCs), Scheduled Tribes and freed bonded laborers, rural landless

laborers and economically weaker sections.

The policy had laid special emphasis on rural housing recognizing the

complexities and intricacies of the situation. Accordingly, the policy put forth

the following as the action plans. (1) Provision of house sites to SCs and STs,

freed bonded laborers and landless laborers including artisans. (2) Provisions of

financial assistance for house construction to them on suitable loan cum-subsidy

basis.25

24 . Ministry of Housing and Urban Development, National Housing Policy, Government of India, New Delhi, 1988, p. 1.

25 . Ibid., p. 34.

180

National Housing Policy has the following features:

1. Providing the necessary back up to support construction of new and

additional units and up gradation of the existing ones;

2. Ensuring availability of land and confer homestead rights;

3. Minimizing displacement of rural households for developmental projects;

4. Undertaking adequate rehabilitation measures for those affected by

natural calamities;

5. Promoting the use of locally available materials and construction

practices;

6. Providing basic infrastructure services including water, sanitation and

road;

7. Offering protective discrimination to the weaker sections of society and

the disadvantaged persons.26

The genesis of the Indira Awaas Yojana (IAY) can be traced to the

programs of rural employment, which began in the early 1980s. Construction of

houses was one of the major activities under the National Rural Employment

Program (NREP), which began in 1980, and the Rural Landless Employment

Guarantee Program (RLEGP), which began in 1983. There was, however, no

uniform policy for rural housing in the States. For instance some States

permitted only part of the construction cost to be borne from NREP/RLEGP

funds and the balance was to be met by beneficiaries from their savings or loans

26 . C.V. Anand Bose Blueprint to March Towards Shelter for all by 2010 AD, R.C. Choudhary and P. Durga Prasad (eds) Basic Rural Infrastructure and Services for Improved Quality of Life, Vol. II, National Institute of Rural Development, Hyderabad, July, 1999, p. 591.

181

obtained by them. On the other hand, others permitted the entire expenditure to

be borne from NREP/RLEGP funds. Further, while some States allowed

construction of only new dwellings, others permitted renovation of existing

houses of beneficiaries. As per announcement made by the Government of India

in June 1985, a part of the RLEGP fund was earmarked for the construction of

houses for SCs/STs and freed bonded laborers. As a result, Indira Awaas Yojana

(IAY) was launched during 1985-86 as a sub-scheme of RLEGP. IAY thereafter

continued as a sub-scheme of Jawahar Rozgar Yojana (JRY) since its launching

in April, 1989, 6% of the total JRY funds were allocated for implementation of

IAY. From the year 1993-94, the scope of IAY was extended to cover below the

poverty line Non Scheduled Castes/Scheduled Tribes families in the rural areas.

Simultaneously, the allocation of funds for implementing the scheme was raised

from 6% to 10% of the total resources available under JRY at the national level,

subject to the condition that the benefits to non-scheduled castes/scheduled tribes

poor should not exceed 4% of the total JRY allocation. IAY was de-linked from

JRY and made an independent scheme with effect from 1st January 1996.

Objectives of the Scheme

The objective of this scheme is primarily to help in construction/ up

gradation of dwelling units of members of schedule caste/schedule tribe, freed

bonded labor, minorities in the below poverty line category and other below

poverty line non-SC/ST rural household by providing them a lump-sum financial

assistance.27

Funding Pattern

27 . Ministry of Rural Development, Indira Awaas Guidelines, Government of India, New Delhi, 2009, p. 6.

182

Indira Awaas Yojna is a centrally sponsored scheme. The funding of IAY

is shared between the Centre and State in the ratio of 75:25 in the case of UTs,

entire fund of IAY are provided by the Centre. However in case of north-eastern

States, the funding pattern has been revised and at present is in the ratio of

90:10.

The criteria for allocation of IAY funds to the States and UTs involve

assigning 75% weightage to housing shortage and 25% to poverty ratio. The

allocation amongst districts is based on 75% weightage to housing shortage and

25% weightage to SC/ST component. Further 60% of the IAY allocation is

meant for benefitting SC/ST families, 3% for physically handicapped and 15%

for minorities. 5% of the central allocation can be utilized for meeting exigencies

arising out of natural calamities and other emergent situations like riot, arson,

fire, rehabilitations etc.28

Identification of beneficiaries

Prior to 73rd constitutional amendment the beneficiaries under the scheme

were identified through a block level Committee. The MLA, Member of

Parliament, chairman of the block development Committee, officers of the

scheduled castes and tribal welfare departments and non-official members

nominated by the Government, were members of the Committee and the block

development officer was the convener. Applications used to be invited form

eligible families after giving wide publicity and details were collected through

Village Level Workers (VLWs). The Committee used to scrutinize the

applications and forward these to the district collector. After hearing claims and

28 . Ministry of Rural Development, Annual Report ( 2009-10), Government of India, New Delhi, pp. 38-39.

183

objections, the final list of beneficiaries was decided by the District Collector in

consultation with the project officer of District Rural Development Agency

(DRDA).29

After the 73rd Amendment to the Constitution, District Rural

Development Agencies/Zila Parishad on the basis of allocations made and

targets fixed by the Government of India decided the number of houses to be

constructed in each panchayat under IAY during a particular financial year. The

same shall be intimated to the gram panchayat concerned. Thereafter, the

beneficiary restricting to this number, will be selected from the permanent IAY

lists prepared on the basis of BPL lists in order of seniority in the list. The Gram

panchayat may draw out the shelterless families. From the BPL lists strictly in

order of ranking in the list. A separate list of SC/STs families in the order of

their rank may be derived from the larger IAY list so that the process of

allotment of 60% of houses under the scheme is facilitated. Thus at many given

time, there would be two IAY wait lists for reference, one for SC/STs families

once the lists are prepared, they need to be approved by the Gram Sabha to be

attended by a Government servant who would be a nominee of the collector.30

Priority in Selection of Beneficiaries

Prioritization of beneficiaries will be as follows:

(i) Freed bonded laborers

(ii) SC/ST households

• SC/ST households who are victims of atrocity.

29 . Satish Chandra “Shelter for the Rural Poor: Indira Awaas Yojana”, in Bharati Siva Swami Sihag and Satish Chandra (eds.) op cit., p. 14-15.

30 Ministry of Rural Development, Guidelines for Indra Awaas Yojana, Government of India, New Delhi, 2009, pp. 9.

184

• SC/ST households, headed by widows and unmarried women.

• SC/ST households affected by flood, natural calamities like

earthquake, cyclone and manmade calamities like riot.

(iii) Families/widows of personnel from defense services/paramilitary forces,

killed in action.

(iv) Non-SC/ST BPL households.

(v) Physically and mentally challenged persons.

(vi) Ex-servicemen and retired members of the paramilitary forces.

(vii) Displaced persons on account of developmental projects, nomadic/semi-

nomadic, and de-notified tribal, families with physically, mentally

challenged members.

The selection of the beneficiaries will be subject to the condition that the

households of all the above categories except (iii) are Below Poverty Line

(BPL).

Full subsidy infrastructure

Initially unit cost of Indira Awaas Yojana was fixed at Rs. 6,000 for

construction of a house, with Rs. 1,200 for construction of sanitary latrine and a

smoker less chulha, Rs. 3000 for infrastructure and common facilities. The unit

cost revised from 6,000 in 1990-91 to Rs. 8,000 in 1993-94 with Rs. 1400 for

construction of sanitary latrine and smokeless chullha and with Rs. 3,300 for

improving infrastructure and common facilities from the year 1994-96, the unit

cost has been enhanced from Rs. 12,700 to Rs. 14,000 in plain areas and Rs.

15,800 in hilly/ difficult areas, and cost of construction of house was Rs. 9000,

and construction of sanitary latrine and smokeless challahs Rs. 1,500 and Rs.

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3,500 for providing infrastructure and common facilities. From the year 1996 the

unit cost of house was revised from Rs. 14,000 to Rs. 20,000 and for hilly areas

the amount is increased up to Rs. 22,300 in 2004 the unit cost further revised and

unit cost of the house was fixed on 25,000 for plain areas and 27,500 for

hilly/difficult areas, including a sanitary latrine and a smokeless chullha31 in

2008 the unit cost revised from Rs. 25000 to 35000 in plain areas and from Rs.

27500 to Rs. 38,500 in hilly and difficult areas32. The union budget for 2010-11

has raised the unit cost under IAY to Rs. 45,000 in plain areas and Rs. 48,5600

in hilly areas.33

Location of the Indira Awaas Yojana

The Indira Awaas Yojana dwelling units should normally be built on

individual plots in the main habitation of the village. The houses can also be

built in a cluster within a habitation, so as to facilitate the development of

infrastructure, such as, internal roads, drainage, drinking water supply etc. and

other common facilities. Care should always be taken to see that the houses

under the IAY are located close to the village and not far away, so as to ensure

safety and security, nearness to work place and social communication. To the

extent possible, the site should not be located in disaster prone areas for example

frequently floodable areas.

Type Design

31 . Ministry of Rural Development, Indira Awaas Guidelines, Government of India, New Delhi, 2004, pp. 7-8.

32 . Ministry of Rural Development, Annual Report (2009-2010), Government of India, New Delhi, p. 38.

33 . Planning Commission, Midterm Appraisal of the Eleventh Five Year Plan, Government of India, New Delhi, 2010, p. 275.

186

No type design should be prescribed for the IAY dwelling units, except

that the plinth area of the houses should not be less than 20 sq.mts. The layout,

size and type design of the IAY dwelling units should depend on the local

conditions and the preference of the beneficiary. The houses, should be designed

in accordance with the desire of the beneficiaries, keeping in view the climatic

conditions and the need to provide ample space, kitchen, ventilation, sanitary

facilities, smokeless chullah, etc. and the community perceptions, preferences

and cultural attitudes. The barrier free concept may be incorporated in the houses

meant for the physically challenged, with a view to facilitating their smooth and

free movement in the house. In areas frequented by natural calamities such as

fire, flood, cyclones, earthquakes, etc., incorporation of disaster resistant features

in design should be encouraged.

Appropriate Construction technologies and Local Materials

Effort should be made to utilize, to the maximum possible extent local

materials and cost effective disaster resistant and environment friendly

technologies developed by various institutions. zila Parishad/DRDA should

contact various organizations/institutions for seeking expertise information on

innovative technologies, materials, designs and methods to help beneficiaries in

the construction/up gradation of durable, cost effective houses and disaster

resistant houses. Help of building centers may also be taken to get the

information on cost effective technologies/materials and conducting training for

rural artisans. The State Governments may also arrange to make available

information on cost effective environment friendly technologies, materials,

designs etc., at district/block level. This information should only be for guidance

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and any other suitable location specific technology can be adopted by the

beneficiaries.

Involvement of beneficiaries

The beneficiaries should be involved in the construction of the house. To

this end, the beneficiaries may make their own arrangements for procurement of

construction material, engage skilled workmen and also contribute family labor.

The beneficiaries will have complete freedom as to the manner of construction

of the house. zila parishads /DRDAs can help the beneficiaries in acquiring raw

material on control rates, if they so desire or request the zila parishads/DRDAs

in this regard. This will result in economy in cost, ensure quality of construction,

lead to greater satisfaction and acceptance of the house by the beneficiary. The

responsibility for the proper construction of the house will thus be on the

beneficiaries themselves. A Committee may be formed, if so desired, to

coordinate the work. The Committee shall be sensitized to incorporate hazard-

resistant features in the design of the houses.

Ban on contractors or departmental construction

No contractor shall be involved in the construction of dwelling units

under the IAY, by the zila parishad/DRDA/Implementing Agency. If any case of

construction through contractors comes to notice, Government of India will have

the right to recover the releases made to the State for those IAY houses. The

house should also not be constructed by any Government department.

Government departments or organizations can, however, give technical

assistance or arrange for coordinated supply of raw materials such as cement,

steel or bricks if the beneficiaries so desire. The spirit of the IAY is that the

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house is not to be constructed and delivered by any external agency. On the

other hand, the house is to be constructed by the beneficiary himself/herself.

Drinking water supply

The availability of drinking water supply should be ensured by the

agencies responsible for the implementation of the Indira Awaas Yojana.

Construction of Sanitary latrines and smokeless chulhas

Sanitary latrine and smokeless chulha will be provided with each IAY

house. Latrine should be constructed separate from the IAY house on the site of

the beneficiary. Wherever possible, efforts should be made to dovetail funds

from Total Sanitation Campaign (TSC) for providing sanitary latrine so that

more money could be made available for construction of the IAY house. In case,

the beneficiary is unable to construct sanitary latrine, due to some reasons, an

amount of Rs. 600/- would be deducted from the assistance to be provided for

construction of the new IAY house or for up gradation of an unserviceable

kutcha house. Similarly, where smokeless chulha is not possible, deduction will

be Rs. 100/-

Environmental Improvements and Social Forestry

Plantation of trees in the entire habitation or around the individual house

may be taken up simultaneously. Trees may be planted near the housing clusters

so that, in due course, enough trees are available nearby, to enable the

beneficiaries to source fuel/fodder/small timber. Such plantations can be taken

up under the social forestry program. Some of the popular indigenous species

whose plantation can be undertaken include Neem (Azadirachta indica);

189

Mahuva (Madhuca indica); Amla (Emblica officianlis); Coconut (Cocos

nucifera); Deodar (Credrees deadora); Mango (Magnifera indica); Oak

(Quercus & Spp.); Rose wood (Dalbergia latifolia); Chandan (Santalum album);

Pipal (Ficus religiosa) etc. This list is merely illustrative, and not exhaustive.

Species may vary with region, location and geo/agro-c1imatic conditions.

Cultivation of fruits and vegetables at household level in the houses may also be

encouraged for improving nutritional status.

Since 1985, nearly 223 lakh houses have been constructed with an

expenditure of about Rs. 54,688 crore. In the Eleventh Plan, 26,882 crore has

been allocated for IAY. The year-wise physical and financial process is

summarized in Table 4 and Table 5

Table 4

Financial Performance of IAY during Eleventh Plan

Year TAF* (Rs. Crore) Utilisation (Rs. Crore)

Per cent Utilisation

2007-08 6,527.17 5,464.54 83.72

2008-2009 14,460.33** 8,348.34 57.73

2009-2010*** 9,094.44 4,927.23 54.18

*Total Available Funds (TAF) includes Opening Balance and Centre & State Release. **includes Rs. 3050 crore released as economic, stimulus package in February 2009 ***Till September 2009.

Table 5

Physical Performance of IAY during Eleventh Plan

190

Year Target (lakh) Houses constructed (lakh)

Per cent physical Achievement

2007-08 21.27 19.92 93.66

2008-09 21.27 21.34 100.27

2009-2010* 40.52 10.96 27.03

*Till September 2009.

Major Initiatives – 11 th Plan Period

• Unit assistance has been revised twice during the period, w.e.f. 1.4.2008

and w.e.f. 1.4.2010. In addition an IAY beneficiary can avail loan of up to

Rs. 20000 at an interest rate of 4% per annum under DRI. An additional

amount of Rs. 2200 can also be availed under Total Sanitation Campaign

(TSC) over and above the IAY funds by IAY beneficiaries who construct

a sanitary latrine from the year 2006-07 onwards, 15% of IAY funds and

physical targets are being earmarked for minorities.34

• Recommendations of Task Force on improving quality of houses have

been adopted. A proposal for providing homestead sites to the landless

BPL households has been approved by the Government in August 2009.

Convergence with other governmental schemes has been made part of

IAY guidelines. Software is being developed to monitor the program

beneficiary wise.35

Evaluation of the Indira Awaas Yojana:

34 . Ministry of Rural Development, Grameen Bharat, Vol. 8, Issue 71, Government of India, New Delhi, May 2010, p. 7.

35 Ibid. p. 7.

191

An evaluation study of the IAY for Jammu and Kashmir in 2009

provides some insight into problems that are likely to be present across the board

in all States. Key findings of the study are:

i. Involvement of local members of legislative assembly in the selection of

beneficiaries;

ii. No standard economic criterion was followed to identify the beneficiaries

leading to some above poverty line families being included as

beneficiaries while not all BPL families were covered.

iii. Community facilities such as internal roads, drainage, drinking water

supply, etc. and other common facilities were not provided to IAY

dwellings.

iv. Lack of co-ordination among various agencies involved with

implementation of sanitation, water supply, smokeless chullah schemes in

the State.

v. No clear cut directions as to which type of houses need upgradation.

Major Challenges of IAY

Evaluation and news reports36 reveal that the implementation of the

scheme has been flawed and that it has failed to reach the poorest because of

both extensive corruption and scheme design. Although “higher user satisfaction

is reported” under IAY, the quality of housing remains a problem. Lack of

technical expertise needed to build quality houses by the beneficiary.

Problems in procuring building materials, finding skilled labour for

construction and low awareness of cost saving technologies increases the cost of

36 . http://www.pib.nic.in/release/release.asp?relid=61329 assessed on 17 June, 2010.

192

construction. Though beneficiaries were originally supposed to selected by the

gram panchayat, evaluation revealed at least a quarter of the beneficiary were

not. The eleventh plan noted irregularities in the method of selection of IAY

beneficiaries. It stated that “25% to 50% of the beneficiaries are not being

selected through the gram sabhas. Allocation among panchayats has been

influenced by PRIs/MLAs the vocal and active segment of beneficiaries

influence the selection process. The poorest among BPL households are left out

and non BPL families get selected. Besides, collection of illegal gratification of

selection by PRIs is a common complaint brought out by several studies”.37

The IAY prescribes a multi-level monitoring system but mechanism at

both State and central level are inadequately implemented. IAY does not target

the rural landless who constitute nearly 50% of target group are the most

vulnerable of the rural poor.

37 . Planning Commission, Midterm Appraisal of Eleventh Five Year Plan, Government of India, New Delhi, 2010, p. 276.