Rd First Ninth

7/29/2019 Rd First Ninth

1/185

Rural Development in First Five Year Plan

Chapter 15:

COMMUNITY DEVELOPMENT AND RURAL EXTENSION

I. Basic principles

Community Development is the method and Rural Extension the agency through which the Five YearPlan seeks to initiate a process of transformation of the social and economic life of the villages. The Planprovides Rs. 90 crores for community projects and proposes the establishment over a period of about tenyears of a network of extension workers throughout the country. The object of this chapter is to indicatebriefly the significance of the two programmes and their place in national reconstruction.

2. For some three decades rural development work has been undertaken by different branches of theadministration in the States. Until a few years ago, the expenditure on development was meagre and ruraldevelopment work was thought of largely in terms of particular items of improvement in village life and inagricultural practice, and special attention was given, for instance, to the number of wells sunk or

repaired, for the supply of irrigation or drinking water, the supply of seeds or fertilisers, or the number ofmanure pits dug. Starting of rural credit societies etc. These are essential items in any rural programme,but there was no coordinated approach to village life as a whole.

3. If one goes back to the study of the efforts made before World War II in individual Provinces and Statesand considers, the experience gained in later years in Sevagram in Madhya Pradesh, in the FirkaDevelopment scheme in Madras, in the Sarvodaya centres in Bombay, in Etawah and .Gorakhpur in UttarPradesh and other centres which are perhaps less well known, certain broad conclusions emerge. Theseare :

i. When different departments of the Government approach the villager, each from the aspect of itsown work, the effect on the villager is apt to be confusing and no permanent impression iscreated. The peasant's life is not cut into segments in the way the Government's activities are apt

to be ; the approach to the villager has, therefore, to be a coordinated one and has tocomprehend his whole life. Such an approach has to be made, not through a multiplicity ofdepartmental officials, but through an agent common at least to the principal departmentsengaged in rural work, whom it is now customary to describe as the village level worker.

ii. Programmes which have been built on the cooperation of the. people have more chances ofabiding success than those which are forced down on them.

iii. While the official machinery has to guide and assist, the principal responsibility for improving theirown condition must rest with the people themselves. Unless they feel that a programme is theirsand value it as a practical contribution to their own welfare, no substantial results will be gained.

iv. Programmes largely dependent on expenditure by the Government, in which the elements of self-help and mutual cooperation on the part of villagers are present only in a nominal degree are

shortlived. The essential idea should be the reduction of chronic unemployment which is a featureof rural lifethrough the practice of scientific agriculture and cottage and small-scale industries.

v. Advice and precept are of no avail unless they are backed by practical aidssupplies of seedand fertiliser, finance and technical guidance for solving the farmer's immediate problems.

vi. Whatever the measures of the effort which the Government wishes to make, the best results willbe gained if the programmes are pursued intensively, and practically every agriculturist family hasits own contribution to make through a village organisation.


2/185


3/185

3

areas. The intensive development of agriculture, the extension of irrigation, rural electrification and therevival of village industries, wherever possible, with the help of improved techniques, accompanied byland reform and a revitalised cooperative movement, are programmes closely related to one another, andtogether ca'culated to change the face of the rural economy.

Main lines of activity

5. The main lines of activity which wil! be undertaken in a community project, can be briefly divided intothe following Agriculture and related matters.Irrigation.Communications.Education.Health.Supplementaryemployment Housing.Training.Social Welfare.

Agriculture and related matters

6. The programme includes reclamation of available virgin and waste land ; provision of commercialfertilizers and improved seeds ; the promotion of fruit and vegetable cultivation, of improved agriculturaltechnique and land utilisation ; supply of technical information, improved agricultural implements,improved marketing and credit facilities , provision of soil surveys and prevention of soil erosion,encouragement of the use of natural and compost manures and improvement of livestock, the principalemphasis here being on the establishment of key villages for breeding pedigree stock and the provision of

veterinary aid, as well as artificial insemination centres. For attaining this objective, agricultural extensionservice will be provided at the rate of one agricultural extension worker for every 5 villages.

One of the important functions of the agricultural extension worker will be to encourage the growth of ahealthy'cooperative movement. The aim will be to see that there is at least one multi-purpose society inevery village or group of villages on which practically every agriculturist family is represented.

It is expected " that the cooperative principle, in its infinitely varying forms, will be capable of adaptationfor finding a solution to all problems of rural life." Multi-purpose societies will therefore have to be used forpractically every development activity in the community project area, including the encouragement of ruralarts and crafts.

Irrigation

7. The programme visualises provision of water for agriculture through minor irrigation works, e.g., tanks,canals, surface wells, tubewells, etc., the intention being that at least half of the agricultural land, ifpossible, be served with irrigation facilities.

Communications

8. The road system on the country side is to be so developed as to link every village within the Projectarea upto a maximum distance of half a mile from the village, the latter distance being connected byfeeder roads through voluntary labour of the villagers themselves, only the main roads being provided forand maintained by the State or other public agencies.

Education

9. It has been realised that the full development of a community cannot be achieved without a strongeducational base, alike for men and women. The community projects have been planned to provide forsocial education, expansion and improvement of primary and secondary education and its gradualconversion to basic type, provision of educational facilities for working children and promotion of youthwelfare. Vocational and technical training will be emphasised in all the stages of the educationalprogramme. Training facilities will be provided for imparting improved techniques to existing artisans and


4/185

4

technicians, both in urban and rural areas. Training centres which already exist in any area, will bestrengthened and developed, and new ones established to meet the requirements of the project area.

Health

10. The Health Organisation of the Project area will consist of 3 primary health units in the Development

Blocks and a secondary health unit equipped with a hospital and a mobile dispensary at the headquartersof the Project area and serving the area as a whole. It would aim at the improvement of environmentalhygiene, including provision and protection of water supply ; proper disposal of human and animal wastes; control of epidemic diseases such as Malaria, Cholera, Small-pox, Tuberculosis, etc. Provision ofmedical aid along with appropriate preventive measures, and education of the population in hygienic livingand in improved nutrition.

Supplementary Employment

11. The unemployed and the under-employed persons in the village community will be provided withgainful employment to such extent as is possible, by the development of cottage and small-scaleindustries, construction of brick kilns and saw mills and encouragement of employment throughparticipation in the tertiary sector of the economy.

Housing

12. Apart from the provision of housing for community projects personnel, steps will be taken, whereverpossible, to provide demonstration and training in improved techniques and designs for rural housing. Incongested villages, action in the direction of development of new sites, opening of village parks andplaygrounds and assistance in the supply of building materials, may also be necessary.

Training

13. The training of village level workers, project supervisors and other personnel for the CommunityDevelopment Programme will be carried out in 30 training centres .which have been set up with the

assistance of the Ford Foundation of America. Each training centre will have facilities for about 70trainees. Each centre will have double training staff so that the trainees can be divided into two groups.One group will be getting practical and supervisory work experience, while the other group will be utilisingthe centres' facilities for lectures, demonstrations and discussions. In view of the great demand on thetraining centres to turn out people quickly for the opening of new projects, the training period will, in thefirst instance, be limited to six months. In addition to the training of village level workers and supervisors,the agricultural extension service workers in the Project areas will take steps for the training of theagriculturists, panches and village leaders.

Social welfare

14. There will be provision for audio-visual aid for instruction and recreation, for organi-adons ofcommunity entertainment, sports activities and Melas.

Organisation

15. CentreFor the implementation of the Community Development Programme as indicated above, theCentral Organisation will consist of a Central Committee (the Planning Commission has been designatedas the Central Committee) to lay down the broad policies and provide general supervision, and an

Administrator of Community Projects under the Central Committee. The Administrator will be responsiblefor planning, directing and co-ordinating the Community Projects throughout India under the generalsupervision of the Central Committee and in consultation with appropriate authorities in the various


5/185

5

States. He will be assisted by a highly qualified executive staff to advise him on administration, finance,personnel, community planning and other matters.

16. StateAt the State level, there will be a State Development Committee or a similar body consisting ofthe Chief Minister and such other Ministers as he may consider necessary. There will also be a StateDevelopment Commissioner or a similar official who will act as the Secretary to the State Development

Committee and will .be responsible for directing community projects in the State. Where the work justifiesit, there may, in addition, be a Deputy Development Commissioner specifically in charge of communityprojects.

17. DistrictAt the District level, there will be, wherever necessory, a District Development Officerresponsible for the Community Development Prog,i cmme in the district. This officer will have the status ofan Additional Collector and will operate under the directions of the Development Commissioner. He willbe advised by a District Development Board consisting of the officers of the various departmentsconcerned with Community Development, with the Collector as Chairman and the District DevelopmentOfficer as executive Secretary.

18. ProjectAt the Project level, each individual project unit (consisting of a full project or one or moreDevelopment Blocks where there is not a full project) will be in charge of a Project Executive Officer. In

the selection of Project Executive Officers, special regard will be paid to experience, general outlook,understanding of the needs and methods of Community Development, capacity for leadership and abilityto secure both official and non-official co-operation. Each Project Executive Officer in charge of a fullproject, will have on his staff approximately 125 supervisors and village level workers, who will beresponsible for the successful operation of all activities at the Project Level.

This organisational pattern will be adapted to suit local conditions and needs as may be deemednecessary by the Administrator and the respective State Governments.

People's participationthe crux of the programme

19. While on the subject of organisation, it is necessary to stress the importance of ensuring, right fromthe start, the people's participation, not merely in the execution of the Community Development Projectbut also in its planning. This in fact is the very essence of the programme.

'20. The Community Development Programme aims at the establishment of a suitable organ to e-.sureparticipation of the villagers at the planning stage. It contains provisions for the setting up of a Project

Advisory Committee. It is intended that the Project Advisory Committee should be as representative aspossible of all the non-official elements within the project area. In securing participation of the villagers inthe execution of the programme, the Community Projects Organisation will avail of all non-official localvoluntary organisations and especially the Bharat Sevak Samaj, which is likely to be set up in the projectarea on the lines indicated in the pamphlet recently circulated by the Planning Commission.

Villager's contribution to the programme

21. The pattern of the project as drawn up includes major items of works normally implemented throughGovernment agencies. This is bound to involve higher expenditure through elaborate administrative staff,middlemen's fees and possibly in certain cases, questionable practices. If the people are to be trained tobe the builders of the future, the works have to be entrusted, even at certain risks, to the peoplethemselves through their representative agencies, the Governmental organisation furnishing the technicalassistance and the essential finance. It is intended that a qualifying scale of voluntary contribution, eitherin the form of money or of labour, should be laid down and this contribution will be a condition precedentto development schemes being undertaken under the Community Development Programme.


6/185

6

In all these cases, contributions may be In the form, either of voluntary labour or of cash. In respect ofbackward areas and areas predominantly populated by scheduled castes and scheduled tribes it may notbe possible for the villagers to make any financial contribution. In these areas, the villagers should beasked-to contribute by way of labour effort required for executing the works programme under variousheads. The agency of the Bharat Sevak Samaj is hoped to become a major avenue for the organisation ofthe voluntary effort on the part of the villagers.

Finance

22. The estimated expenditure on a basic type of a rural community project, i.e., a project without theprovision for an urban unit, is Rs. 65 lakhs over a period of 3 years. Of this amount, about 5 8-47 lakhswill be^rupee expenditure, and Rs. 6-53 lakh swill be dollar expenditure. The estimated cost of an urbanunit (which it is intended to provide in a few projects) is Rs. in lakhs. Of this amount, the estimated rupeeexpenditure is about Rs. 95-55 lakhs and the dollar expenditure is Rs. 15 -45 lakhs.

In order to enable expansion of the programme in future years, the Central Committee felt that somereduction in the estimated cost of a rural community project, basic type, should be made and, afterexamination of the question, has now decided that oil community projects should be operated on thebasis of a reduced total of Rs. 45 lakhs per project. So far as the existing projects are concerned, this

would mean that the area of operations under each project on a population basis of 2 lakhs per projectshould be so revised or adjusted as to conform to the new expenditure pattern.

The Community Development Programme imposes financial obligations on the Centre as well as on theState Governments. Broadly, the proportions which have been fixed are 75 per cent for the Centre and 25per cent for the State in respect of non-recurring expenditure, and 50 per cent each for Centre and Statesin respect of recurring expenditure. This applies to ' grants-in-aid '. Loan amount is totally found by theCentre. After the three-year period, the Community Project areas are intended to become DevelopmentBlocks on the lines recommended for adoption in Chapter VI of the Grow More Food Enquiry'Committee's Report. It is expected that in so far as the Community Project areas are concerned, theexpenses of such development blocks will be borne entirely by State Governments after the third year.The expenditure, mostly recurring, is likely to be about Rs. 3 lakhs per project.

Supporting projects

23. The Community Development Programme is related to and supported in part by most of the otherprojects under the Indo-American Technical Cooperation Programme. The fertiliser required by theCommunity Development Programmes will be acquired and distributed in accordance with theOperational Agreement No. I which deals with the " Project for Acquisition and Distribution of Fertilizer ".Similarly, the iron and steel needed for farm implements and tools will be acquired and distributed inaccordance with the " Project for the Acquisition and Distribution of Iron and Steel for Agriculturalpurposes ". The tubewells to be constructed in the project areas will be allocated from the " Project forGround Water Irrigation ". Information and services with respect to soils and fertilizer application will bemade available from the " Project for distribution of soil fertility and fertiliser use ". Assistance in Malariacontrol in the project areas will be forthcoming from the " Project for malaria control planned under theTechnical Cooperation Programme". The training, of Village Level Workers and Project Supervisors will

be carried out under the " Vmage Workers Training Programme "

Evaluation

24. A systematic evaluation of the methods and results of the Community Development Programme will,no doubt, make a significant contribution by pointing up those methods which are proving effective, andthose which are not ; and furnishing an insight into the impact of the Community DevelopmentProgramme upon the economy and culture of India. In orde"* that it may be useful to those administeringthe Community Development Projects and serve as a basis for informed public opinion regarding the


7/185

7

programme, the evaluation work is being arranged to be conducted by the Planning Commission in closecooperation with the Ford Foundation and the Technical Cooperation Administration.

IIINational Extension Service

In setting out our proposals on the subject of administration of district development programmes, we have

already attempted to analyse the organisational features of extension work in the district. The entiresubject has been carefully reviewed recently by the Grow More Food Enquiry Committee. After examiningthe results of the campaign for increased food production, which has been in progress for several years,the Committee state the problem which extension workers have to meet in the following words :

" No plan can have any chance of success unless the millions of small farmers in the country accept itsobjective, share in its making, regard it as their own, and are prepared to make the sacrifices necessaryfor implementing it. The integrated production programme has failed to arouse enthusiasm for thereasons we have given. The food problem is a much wider one than mere elimination of food imports. It isthe problem of bringing about such a large expansion of agricultural production as will assure to anincreasing population progressively rising levels of nutrition. In other words, the campaign for foodproduction should be conceived as part of a plan for the most efficient use of land resources by theapplication of modern scientific research and the evolution of a diversified economy. In its turn,

agricultural improvement is an integral part of the much wider problem of raising the level of rural life. 'The economic aspects of village life cannot be detached from the broader social aspects ; and agriculturalimprovement is inextricably linked up with a whole set of social problems. The lesson to be derived fromthe working of the G. M. F. programmes thus confirms the experience of States and private agenciesengaged in village development. It is that all aspects of rural life are interrelated and that no lasting resultscan be achieved if individual aspects of it are dealt with in isolation. This does not mean that particularproblems should not be given prominence but the plans for them should form parts of, and be integratedwith, those for achieving the wider aims. It is only by placing this idealof bringing about an appreciableimprovement in the standards of rural life and making it fuller and richerbefore the country and ensuringthat the energies of the entire administrative machinery of the States and the best nonofficial leadershipare directed to plans for its realisation that we can awaken mass enthusiasm and enlist the active interestand support of the millions of families living in the countryside in the immense task of bettering their owncondition."

2. This analysis led to the Committee to propose the establishment of a national extension organisationfor intensive rural work which could reach every farmer and assist in the coordinated development of rurallife as a whole. The detailed proposals of the Committee on the organisation of the extension network atvarious levels have been described earlier. The programme envisaged by the Committee, for which thenecessary provision has been made in the Plan, is that the Central Government should assist StateGovernments in establishing extension organisations so as to bring their entire area under extensivedevelopment within a period of about ten years. During the period of the Plan, about 120,000 villages areto be brought within the operations of the extension, that is, nearly one-fourth of the rural population. TheCentral and the various State Governments are expected in the near future to frame detailed programmesfor reorganising the existing extension services, arranging for further recruitment and preparing trainingprogrammes.

In drawing up these programmes the Central and State Governments will have to examine the necessityfor providing the basic training in agriculture and animal husbandry to the village level workers and thevarious supervisory subject matter specialists. Where existing facilities are inadequate, steps will have tobe taken to augment them with a view to ensuring an adequate supply of extension workers for eachmajor linguistic region. There is little doubt that the implementation of these proposals can give a new andpowerful momentum to all rural work and, in particular, to the programme for increaeds agriculturalproduction.


8/185

8

3. The organisation of extension services with the object of securing increased production and raising thestandard of village life is a new undertaking. Extension is a continuous process designed to make therural people aware of their problems, and indicating to them ways and means by which they can solvethem. It thus involves not only education of the rural people in determining their problems and themethods of solving them, but also inspiring them towards positive action in doing so. It is, therefore, of thehighest importance that for this task, personnel of the right type should be obtained who will take to their

work with zeal and enthusiasm. The qualities required are not only the ability to acquire knowledge butalso dedication to the task of serving the rural people and the development of a will to find solutions fortheir problems. People from village surroundings with experience of practical farming are likely to prove ofspecial value as extension workers.

4. The training of extension workers requires the closest attention and must be related to the serivces thatthey will have to perform. They have to understand rural problems, the psychology of the farmer, and onersolutions to his various difficulties. They have to try and find out the felt needs of the people, and thesolutions that they offer must be demonstrated by acting in close cooperation with the farmers. Theyshould be able to discover leadership and stimulate it to action. Their success will depend on the extent towhich they gain the confidence of the farmers. Their duties have thus to be educative and demonstrative.Their training will thus have many facets. Periods spent in gaining a thorough training will be a goodinvestment. If the period of extension training is to be shortened, so as to be able to cover a larger area

than may be otherwise possible, care should be taken to see that it is preceded by adequate opportunitiesfor basic training in all aspects of rural development. Their conditions of service should also be such asare calculated to keep up their zeal and enthusiasm and ensure the continuous maintenance of highstandards of performance. There should be considerable scope for promotion for men who start at thebottom. In order to develop the true extension approach much might be gained if all extension workers,whether graduates or field level workers, were to start at the field level and only those who proved theirworth, received promotions to higher positions. A fair proportion of these positions should also be open tovillage workers who display the necessary qualities of leadership and ability. For this purpose, coursesshould be provided at different levels to enable the promising extension workers who start at the fieldlevel to reach positions of greater responsibility

5. It is important to secure that the extension service retains its character of continued utility to the ruralareas which they serve. This factor should, therefore, be particularly borne in mind in judging the work ofofficials who man this service. Local opinion on the extent to which an extension worker has made himselfuseful should be an important criterion in assessing his ability.

6. The confidence of the villager is gained with difficulty and lost easily. It is, therefore, of the essence ofextension that the initial start is made with items whose usefulness to the cultivator in increasingagricultural production has been well established. It is only after sufficient confidence is gained thatcomparatively untried measures can be put forward, and even these should be held out as experimentsuntil the people have found the answer for themselves.

7. The -immediate effect of the first impact of an extension organisation is to increase the demands of thecultivator for credit, supplies and implements. The satisfaction of these demands is a necessaryconsequence of extension activities and they will succeed to the extent this responsibility is handledefficiently. Extension activities will be adversely affected if arrangements cannot be made for supplying

the needs which they-generate.

8. Finally, it may be pointed out that extension workers have to be supported effectively by researchworkers to whom they can bring their problems and whose results they carry to the people. Specialarrangements are, therefore, needed to ensure the closest cooperation between extension and research.


9/185


10/185

10

States which had abolished zamindari or jagirdari such as Bihar, Rajasthan and Hyderabad are takingsteps to provide the necessary administrative agencies at various levels.

5. Steps which have been taken during the past few years such as the programme of national extensionand community projects, integration of district development activities on the national extension pattern,and the development of village panchayats, point to the need for speeding up the development of

democratic institutions within the district Tn this respect, a certain hiatus has continued to exist which it isnecessary to remove. It is important that sound institutions should be built up as early as may be possibleto enable the people of each area to assume the principal responsibility for the development of theirresources and for solving their local problems as part of the wider scheme of state and national planning.

6. The implementation of the plan and of national extension and community projects have enhanced theresponsibilities of the district administration. The additional personnel located in the district by thedevelopment departments for carrying out national extension and community projects and otherprogrammes have been a sourca of strength to the district administration. On the other hand, the task ofsupervision over different branches of activity has become larger and more complex and the claims uponthe time and energy of the Collector have increased. Large-scale programmes for agriculturaldevelopment, expanding and improving the cooperative movement and promoting village and smallindustries and the development of urban areas are new responsibilities for which the Collector will have

specially to equip himself. It is obvious that administrative agencies have a much larger part to play inthese directions than ever before. The people also look to a larger share in the working of variousprogrammes. In many States, to enable the Collector and the team of officers at the district level to meetthe new demands, additional Collectors and District Development or Planning Officers have beenappointed and there has been greater delegation of authority. The Collector, the Sub-Divisional Officerand the Block Development Officer are functioning as leaders of teams of specialists whose work theyguide and knit together. In several States more sub-divisions have been created, and phasedprogrammes for establishing new sub-divisions are being followed. Action along these lines should bepursued .systematically in all States as it has been decided to extend the national extension serviceprogramme over the entire country in the next five years.

Village Planning And Village Panchayats

7. The preparation of the first five year plan in the States took place mainly at State headquarters.Subsequently, attempts were made to break up State plans into district plans. In national extension andcommunity project areas, as programmes were carried to the village to be worked in cooperation with thepeople, the significance of village planning was increasingly realised. In the programme of localdevelopment works local communities had to propose schemes which they could undertake through theirown labour with support from the Government It has been recognised that unless there is comprehensivevillage planning which takes into account the needs of the entire community, weaker sections like tenant-cultivators, landless workers and artisans may not benefit sufficiently from assistance provided by theGovernment The national extension movement aims at reaching every family in the village. This aimcannot be fullfilled unless, as was pointed out in the First Five Year Plan, there is an agency in the villagewhich represents the community as a whole and can assume responsibility and initiative for developingthe resources of the village and providing the necessary leadership. Indeed, rural progress dependsentirely on the existence of an active organisation in the village which can bring all the peopleincluding

the weaker sections mentioned aboveinto common programmes to be carried out with the assistance ofthe administration.

8. These considerations have been taken into account in the preparation of the second five year plan.Early in 1954 State Governments were requested to arrange for the preparation of plans for the secondfive-year period for individual villages and groups of villages such as tehsils, talukas, development blocks,etc. It was essential that local initiative in formulating plans and local effort and resources in carrying themout should be stimulated to the maximum extent possible. This would help to relate the plans to localneeds and conditions and also to secure public participation and voluntary effort and contribution. Villageplanning was to be concerned primarily with agricultural production and other associated activities,


11/185

11

including cooperation, village industries, communications and other local works programmes. Thesesuggestions were generally followed and in all States village plans and district plans were prepared andformed a basis of the draft plans presented by State Governments.

9. The methods adopted for preparing the second five year plan have provided valuable training both tothe rural people and to rural officials associated with development. It is realised that the pattern of district

administration envisaged in the national extension and community development programme will remainincomplete unless village institutions are placed on a sound footing and are entrusted with a great deal ofresponsibility for carrying out local programmes. The experience of setting up ad hoc bodies in villages toimplement development programmes has also reinforced this conclusion. The development of villagepanchayats on the right lines has significance for several reasons. Under the impact of newdevelopments, including the growth of population, land reform, urbanisation, spread of education,increase in production and improvements in communications, village society is in a state of rapidtransition. In emphasising the interest of the community as a whole and in particular the needs of thosesections which are at present handicapped in various ways, village panchayals along with cooperatives,can play a considerable part in bringing about a more just and integrated social structure in rural areasand in developing a new pattern of rural leadership.

10. It is the general aim to establish a statutory pan-chayat in every village, especially in areas selected

for national extension and community development projects. During the first five year plan the number ofvillage panchayats has increased from 83,087 to 117,593. According to the tentative programmes drawnup for the second five year plan, by 1960-61 the number of village panchayats will increase to 244,564.

All over India there is need to review village boundaries so that there might be evolved good, efficientworking village units with live panchyats. Thus, there are over 380,020 villages in India with populations of500 and below. More than 78 million people or 27 per cent of the rural population live in such villages.There are 104,268 villages with a population between 500 and 1000. About 73 million people live in thesevillages, constituting over 25 per cent of th'e rural population. More than half the rural population thuslives in villages with populations below 1000. A proportion of such villages is in hilly areas which aresparsely populated, and in these grouping may be difficult In other areas question of combining existingvillages into units with a population of about 1000 deserves to be examined. It is necessary to havevillages which are small enough to have a sense of solidarity and yet not so small that personnel cannotbe provided or the essential services, organised for their benefit. The second conference of local Self-Government Ministers held in 1954 recommended that where individual villages are not large enough toserve as units for panchayats, a single panchayat may serve a population of 1000 to 1500. This is usefulup to a point, but the real problem concerns the organisation of convenient village units.

11. In the First Five Year Plan it was recommended that to enable panchayats to play their part inorganising village development programmes, legislation should confer on them certain functions relatingto. village production programmes and the development of village lands and resources. Recently thisproposal has been further examined. The functions of village panchayats may be distinguished broadlybetween two groups, administrative and judicial. Administrative functions may be divided convenientlybetween (1) civic, (2) development, (3) land management and (4) land reforms. The civic functions ofpanchayats are embodied in legislation in different States in more or less similar terms. They include suchtasks as village sanitation, registration of births, deaths, etc., organisation of village watch and ward,construction, maintenance and lighting of village streets, etc.

12. The functions of village panchayats in relation to development may be set out as follows:

1. framing programmes of production in the village;2. in association with cooperatives, framing budgets of requirements for supplies and finance for

carrying out programmes;

3. acting as a channel through which an increasing proportion of government assistance reachesthe village:


12/185

12

4. developing common lands such as waste lands, forests, abadi sites, tanks, etc., includingmeasures for soil conservation;

5. construction, repair and maintenance of common village buildings, public wells, tanks, roads, etc.;

6. organisation of mutual aid and joint effort in all activities;

7. promotion of cooperative societies;

8. organising voluntary labour for community works;

9. promoting small savings; and

10.improvement of livestock.

13. The functions of panchayats in respect of management of village lands and the implementation ofland reforms are specially related to the lines along which it is proposed that the agrarian structure shouldbe reorganised and are explained in chapter IX. The main land management functions are:

1. regulation of the use of common lands such as waste lands, forests, abadi sites, tanks, etc.;

2. cultivation of lands set apart for the benefit of the village community, as in consolidation ofholdings;

3. adaptation of standards of good management and cultivation to local conditions and theirenforcement; and

4. association with the work of maintenance of land records;

The functions of. panchayats in relation to land reforms arise from legislation which may be enacted byeach State. In the main, they entail the association of the village panchayat with such activities as

1. determination of land to be allotted to owners and tenants on the exercise of rights of resumptionfor personal cultivation,2. determination of surplus lands on the application of ceilings on agricultural holdings, and

3. redistribution of surplus lands arising from the imposition of ceilings.

Village panchayats are already associated in several States in the work of consolidation of holdings.

14. The judicial functions of panchayats concern

1. the administration cf civil and criminal justice,2. enforcement of minimum wages for agricultural workers, and

3. simple disputes pertaining to land.

The common pattern in States for facilitating the exercise of these functions is to establish separatejudicial panchayats whose territorial jurisdiction extends as a .rule to a number of villages.

15. It was recognised in the First Five Year Plan that the process of election by which panchayats areconstituted might not always throw up a sufficient number of persons with qualities most needed in villagereconstruction such as good farmers, cooperative workers and social workers. Similarly, instances might


13/185

13

occur in which weaker sections of the population, especially the landless, might not be adequatelyrepresented in the panchayat. Nomination of additional members, which was suggested as a possiblecourse in the First Five Year Plan, is not free from defects. To meet deficiencies, it may be desirable toempower village panchayats to co-opt a limited number of persons, say, two or three, in the case ofsmaller panchayats and up to, say, one-fifth in the case of the larger panchayats. A representative of theprincipal cooperative society of the village could also be an ex-officio member of the village panchayat. In

the panchayat legislation of a number of States provision exists for a measure of reservation in favour ofHari-jans and backward classes. In the actual administrations of panchayat legislation it is necessary topay special attention to the representation through election of weaker sections of the village community.

16. Once it begins to function actively, an institution like the village panchayat will soon face the difficultproblem of finance. Panchayat legislation in most States provides for series of sources of revenue suchas tax on trade or profession, property tax, licence fees, fines and watch, and ward tax. In most cases,however, these do not yield any significant resources. In the main, panchayats have to rely on threesources given to them by State Governments. The first of these is the grant of a proportion of the landrevenue. The second, of which there are not many instances yet, is the right given to the panchayat tocollect land revenue and to realise the collection fees allowed to village headmen. The third source is theright to utilise income from common lands, tanks, etc. In the Punjab and in one or two other States, in thecourse of consolidation of holdings, by agreement a certain amount of land is given to the village

community, so that the income can be used for common benefit Grants to panchayats of a proportion ofthe land revenue are made in several States. They vary from 10 to 15 per cent at one end to about 30 percent. at the other. It is desirable that a proportion of the iand revenue in each village should be assignedto the panchayat for local development. This will serve as a nucleus fund to be augmented by thepanchayat from contributions in labour and money from members of the community. We suggest thatState Governments may consider making grants to village panchayats in two parts, a basic proportion,say, 15 to 20 per cent. of the land revenue, with an additional grant extending up to, say, 15 per cent ofthe land revenue on condition that the panchayat raises an equal additional amount by taxation orvoluntary contributions. Panchayats should also be assisted in developing sources of recurring income.

17. In programmes sponsored by State Governments and district authorities, the panchayat has to find aproportion of the cost through labour and through contributions in other forms. Its own direct expenditureconcerns the provision of elementary services in the village and the maintenance of minimum staff. Theresponsibilities entrusted to panchayats will continue to grow. In some cases full-time panchayatsecretaries have been appointed: in others part-time arrangements have been made. It is not necessaryto prescribe any set pattern, but different ways of providing staff assistance to village panchayats whichare being adopted in the States should be studied and, according to circumstances, those which arefound suitable can be adopted. The staff for the Panchayats should be suitably trained.

18. As the coverage of the national extension movement expands, the work of village panchayats shouldbe closely integrated with the programmes adopted in development blocks. Panchayats will have two setsof programmes, namely, those which are sponsored by the Government through extension workers andby District Boards through their agencies, and those which are undertaken by the village community of itsown volition and from its own resources in manpower, materials and money. Towards the former thevillage has to find a share of the cost mainly in the form of labour. While both sets of programmes are vitaland the village panchayat should be used wherever possible in carrying out development programmes,an important test of the success of the Panchayat as an institution is the proportion which the second setof programmes bears to the first. The true significance of the panchayat lies in its role in mobilising thecontribution of the community. It is also desirable that where village panchayats undertake activities suchas minor irrigation works, land development, soil conservation, etc., they should be given the assistancewhich is commonly made available to individuals under various schemes. In fact local communities shouidbe encouraged to undertake joint activities to the maximum extent possible.

District Plans


14/185

14

19. When planning is undertaken on a national scale a careful view has to be taken as to whichprogrammes should form part respectively of the national, state and district plans. Among the factorswhich have to be taken into account are

1. the level at which an activity can be undertaken with. the necessary technical and administrativeresources,

2. whether an activity is limited to a particular area or has significance for a wider area, so that itshould form part of a larger interconnected plan, and

3. the extent to which public participation and co-operation are called for in implementing theprogramme or augmenting its scope and influence.

On these considerations the Central Government has to undertake the main responsibility for thedevelopment of major industries, the railway network, national highways and over-all co-ordination invarious fields of development such as irrigation and power, large and small industries, etc. There areother projects which are best planned on a State basis, as for example, irrigation and power schemes ofmedium size, road transport services and surveys for drawing up minor irrigation programme. Plans fordistricts and villages merge into the State plan which, in turn, has to take cognizance, of plans preparedfrom the point of view of a country as a whole.

20. In drawing up the second five year plan it was agreed that a State plan should include to themaximum extent possible all programmes to be implemented by the State Government or by publicauthoriftes such as local bodies or by special boards set up within the State. The fact that for anyparticular programme either the whole or a part of the resources came tram the Central Government orfrom various agencies set up by it did not, in principle, affect the inclusion of a programme within the Stateplan. This course was adopted because in the second five year plan one of the most important aspectswas the preparation of plans at various levels below that of the State, that is, for individual villages, towns,talukas, tahsils or extension blocks and districts. It was recognised that both -at the district and at theState level three kinds of programmes sponsored on behalf of public authorities would be included in theplan, namely,

a. programmes intiated at the level in question, e.g. taluka, district and State.b. programmes initiated at lower levels and integrated with those in (a), and

c. programmes initiated at levels above and integrated with (a), for instance, schemes sponsored bythe Central Government but execute] through States or schemes sponsored by the StateGovernment andimplemented through machinery available in the district.

21. A State plan has to be presented in two different ways, namely, according to different sectors ofdevelopment represented in it and according to regions and districts. Programmes for different sectorsinclude those which are to be executed directly by departments at State level and others which are to beexecuted through districts but are co-ordinated at the State level. Thus, a district plan would includeprogrammes prepared on a territorial basis for villages, groups of villages, talukas, extension blocks,municipal areas, etc. and also programmes to be executed within the district which are derived fromdepartmental plans formulated at ,the State level. That part of the district plan which is prepared within thedistrict is important both for the range of activities which it embodies and for the fact of association withthe people at every level and the opportunity afforded to them to determine their needs and to contributetowards their fulfilment.

22. Just as in drawing up State plans the preparation of district plans is an important stage, so also in theimplementation of the State plan its break up into district plans is an essential step. In particular, indifferent sectors in the State plan programmes or schemes in which local participation and communityaction have a special contribution to make are to be separated out and shown as constituents in the plansof districts. Those items of work become pail of the district plan in which, in the main, the resources


15/185

15

provided by Government are in the nature of a nucleus to be augmented through popular support andparticipation. The value of district plans as a method of approach in planning is enhanced by theambitious scale on which national extension and community projects are proposed to be undertaken. Bythe end of the second five year plan this programme will serve almost the entire rural population. EachState will have its phased programme for bringing different blocks, talukas, etc. under the nationalextension and community development programme. A district plan will include programmes for all parts of

a district, whether or not, at a given date, they are provided with extension services. The district plan has,therefore, to take into account the requirements and activities of areas under the extension programme aswell as of those outside it. This makes the district plan and important influence in educating publicopinion, in bringing together various programmes in the district within a common frame and in developingcomw'unity participation, cooperative self-help and local initiative and leadership. The people of eachdistrict arc thus enabled to assess their needs and resourcesJ'udge for themselves the tasks to beundertaken with the active support of the administration, and put forth the requisite effort. Moreover, as apartnership in effort between the administration and the people a district plan will specify obligations to bemet by both.

23. The main constituents of a district plan are:

1. the community development and national extension programme,

2. social welfare extension projects,

3. agricultural production programme and allied activities in the field of rural development such asanimal husbandry, soil conservation etc.,

4. development of co-operatives,

5. village panchayats,

6. village and small industries,

7. schemes for utilising effectively resources developed through State projects for irrigation,electricity, communications, industrial development and expansion of training facilities,

8. housing and urban development,

9. the programme of small savings,

10.aiding construction projects through labour co-operatives and shramdan,

11.programmes for the welfare of backward classes,

12.programmes in rural and urban areas relating to social services, especially expansion ofeducation at primary and secondary levels, health units, health education, sanitation, malarialcontrol, family planning, etc.

13.utilising and assisting voluntary organisations engaged in constructive social work,

14.land reform,

15.prohibition work, and

16.dissemination of information about programmes of national, state, regional and localdevelopment.


16/185

16

24. These programmes are undertaken through several official and non-official agencies, and in a numberof them there has to be co-ordination between more than one agency. Thus, in addition to administrativeofficials and the officials of the various development departments, each district will generally have a rurallocal board, a large number of village panchayats, and a number of municipal bodies in rural areas. Theimportance of towns as focal points in economic growth is likely to increase, and urban and rural areashave to be viewed together in terms of planned regional development. In areas selected for intensive

work under the national extension and community development programme, there are project or blockadvisory committees which include, besides Members of Parliament and the State Legislature, a numberof non-officials appointed by the State Government The existence of a larger number of agencies whosework has to be co-ordinated through a district plan suggests certain possibilities of reorganisation ofdevelopment machinery in the districts.

District Development Machinery

25. During the first five year plan, as has been stated earlier, the national extension machinery hasbecome part of the normal district administration. In almost all States district development or planningcommittees have been set up which associate representatives of the district in the State legislature and inParliament, representatives of the district board and the principal municipal bodies and leading non-official workers with the formulation and implementation of development programmes in the district. The

functions of these committees are essentially advisory or consultative. On the whole, they have notsecured the degree of participation and cooperation from the public which is implicit in the concept ofdistrict planning. The association through these committees of the district board and of other local bodieswith the work of development does not go far enough. In the First Five Year Plan the role of local bodiesin development programmes was reviewed and it was suggested that the general direction of policyshould be to encourage them and to assist them in assuming responsibility for as large a portion ofadministration and social services within their areas as may be possible. It was pointed out that it mightbe necessary to work out suitable arrangements for linking local self-governing bodies in different fieldswith one another, for instance, village panchayats with district or sub-divisional local boards. While theprocess developed, it was suggested that State Governments should secure the close co-operation oflocal self-governing bodies in the field of development in such directions as the following:

1. Programmes undertaken by local bodies should be integrated with State programmes and should

be shown as part of district plans;2. Local bodies should be used as agencies for carrying out the social service programme of State

Governments. "It is a good general rule for any authority to try and pass the responsibility for aproject to the authority immediately below it if, with a measure of help and guidance, the latter cando the job equally or nearly as well";

3. Institutions run by local bodies and services provided by them should be inspected, supervisedand guided by the technical and administrative personnel of the State Government on exactly thesame lines and with the same vigour as may be adopted for the State Government's owninstitutions and services;

4. Members representing the district board should provide the nucleus for development committeesset up for framing and watching the execution of the district and taluka development programmes.

These committees would also include other institutions;and

5. Wherever sub-divisions exist or are created in the future, the establishment of sub-divisional localboards should be considered.

26. In practice these recommendations have not been carried out to any great extent In a number ofStates, as in Madhya Pradesh, Orissa, Bihar. Punjab, Uttar Pradesh and elsewhere, thought has beengiven recently to the future structure and functions of district boards with reference to the functions ofvillage pan-chayats and to those of various administrative agencies functioning in the district. TheTaxation Enquiry Commission expressed the view that district local boards could no longer continue in


17/185

17

their existing form and that their position in the structure of local self-government had.becomeincreasingly unstable. The need for creating a well-organised democratic structure of administration withinthe district is now being widely felt. In this "tructure village panchayats will have to be organically linkedwith popular organisations at a higher level. In some States it may be convenient to have a democraticbody at the district level, in others at the level of sub-divisions. In either case there are two essentialconditions to be aimed at In the first place, the functions of the popular body should come to include, if

necessary by stages determined in advance, the entire general administta-tion and development of thearea other than such functions as law and order, administration of and certain functions pertaining torevenue administration. The second condition is that for smaller areas within the district or the sub-division such as development blocks or talukas, sub-committees of the popular body should be assignedclear functions in the implementation of local programmes. The subject requires careful and objectivestudy in the light of conditions prevailing in different parts of the country and experience during the firstfive year plan. We therefore recommend a special investigation under the auspices of the NationalDevelopment Council. While this investigation proceeds and the results of experiments made in variousStates are studied more closely from the point of view indicated above, there is need for strengtheningand reorganising the non-official agencies which have been created in almost all States for assisting inthe implementation of development programmes, specially at the district level and in national extensionand community project areas.

27. At the district level, the primary object is to coordinate the work of various agencies concerned withdevelopment and to associate with them representatives non-official and others who may be in a specialposition to assist. At the development block or taluka level the main aim is to secure the largest measureof participation, especially from cooperative organisations, village panchayals and voluntary agencies. Areview of the manner in which district development committees and project advisory committees havefunctioned suggests that as an immediate step in reorganisation it will be useful for State Government toset up district development councils and development committees for are.as such as development blocksor talukas.

A district development council might include

1. representatives of the district in the State legislature and in Parliament,2. representatives of municipal committees and rural local bodies,

3. representatives of the cooperative movement,

4. representatives of village panchayats,

5. co-opted members from leading social service agencies, from educational institutions and fromamongst constructive social workers, and

6. the Collector along with sub-divisional officers and district officers in charge of variousdevelopment departments.

28. The functions of a district development council way bs described as

1. advising on the formulation of each year's plan of development within the general framework ofthe 'State five year plan;

2. reviewing progress in the implementation of approved programmes of development;

3. recommending measures for the effective and speedy fulfilment of schemes of economic andsocial development and, more especially, of national extension anri community projects,agricultural production programmes, local development works, social services and village smallindustries;


18/185

18

4. promoting public participation and cooperation in development programmes and expanding localcommunity effort both in urban and rural areas;

5. assisting the development of cooperatives and village panchayats;

6. promoting the small savings movements;

7. general supervision over the work of village panchayats in respect of land reform, landmanagement and' rural development generally;

8. enlisting the active association and cooperation of teachers, students and others in the study anddevelopment of local resources;

9. providing opportunities for general education through fairs, exhibitions, seminars etc;

10.training of members of panchayats and cooperatives.

The functions of development committees constituted for development blocks or talukas will be similar tothose of district development councils. Their membership might comprise:

1. representatives of village panchayats,2. representatives of urban local bodies and of the rural local board,

3. representatives of the cooperative movement,

4. representatives of the area in the State legislature and in Parliament (to the extent their othercommitments permit them to participate),

5. co-opted members from leading social service agencies, from educational institutions and fromamongst constructive social workers,

6. officials in charge of development departments.

29. Although the functions of district development councils and block or taluka development Committeeswill be advisory, they should be given a considerable amount of initiative in suggesting the details ofvarious programmes and the distribution of resources within the general scheme approved for the districtby the State Government. Their work should be suitably planned, they should be consulted beforeprogrammes are finalised and their reviews of work done in the field should take place at regular intervals.Their special responsibility will be to ensure that the maximum amount of public cooperation andparticipation are secured, that the various programmes operate so as to be complementary to oneanother, and that disadvan-taged sections of the community benefit adequately.Development councils fordistricts and development committees for blocks or talukas constituted broadly on the lines mentionedabove will take the place of exiting development committees and project advisory committees. It isenvisaged that in the beginning these bodies may be non-statutory. Their effective functioning will markan important stage in the reorganisation of district administration and the experience gained will indicate

the lines along-which the structure of district administration may be modified and strengthened to meetthe basic needs of democratic development. Moreover, progress along these lines will emphasise twospecially valuable features of district and area planning. Local programmes represent an area of commonaction significant for the welfare of the mass of the people in which differences in view and affiliation areof relatively small consequence. Secondly, working with one another and with the people and theirrepresentatives will go a long way to bring the outlook and attitudes of local officials in line with therequirements of the socialist pattern of society and to break down barriers between different grades whichare themselves and impediment to success in the common effort. Institutions and practices such as


19/185

19

seminars, sharing of experience and for consultation in formulating and reviewing programmes of workhave already proved useful in this direction.

Coordination And Supervision

30. Coordination and supervision of development programmes have to be organised at various levelsin

the taluka or the development block, in the district or the sub-division, for a group of districts constituting aregion and at the State level. At each stage two problems arise. The first is that the work of differenttechincal departments has to be knit together so as to make a single, coordinated programme. Thesecond problem concerns guidance and inspection, and evaluation and reporting. The need forcoordination arises, on the one hand, in relation to policy and allocation of resources and, on the other, interms of the requirements of a common extension agency. The strength of a coordinated programme ofdevelopment lies in the quality of the specialised services which are brought together. Coordinationshould therefore be so organised as to bring out the best in the specialist. This involves a clearappreciation of the responsibilities of technical departments at each level in the scheme of operations,and a proper recognition of their contribution to the common programme. As pointed out earlier, at theState level coordination of programmes is undertaken by the Development Commissioner under thedirection of a Cabinet committee on development. In the district or the sub-division these responsibilitiesdevolve on the Collector and the sub-divisional officer. Development programmes in the second five year

plan are much larger in scope than those in the first five year plan. It is not now possible for theDevelopment Commissioner, with the other responsibilities he bears at the State level, to tour sufficientlyand keep in close touch with the working of the State plan in the districts. This difficulty will be speciallyfelt in the larger States. In the circumstances of the second five year plan the need for setting upmachinery for effective regional coordination and for supervision of district work cannot therefore'be toogreatly stressed.

31. District administration is an agency of change towards a new social order. It has to respond to theneeds and aspirations of the people. It will be judged both by the practical results it produces and by themethods and institutions of popular association and cooperation which it integrates into its basic structure.


20/185

20

3rd Five Year Plan

Chapter 33:HOUSING AND URBAN AND RURAL PLANNING

The housing programme which had its beginning in the First Five Year Plan was directed mainly towardshousing for industrial workers ynd low income groups. The programme was considerably expandedduring the Second Five Year Plan with the introduction of schemes of slum clearance and slumimprovement, plantation labour housing, village housing and land acquisition and development. The Tablebelow shows the anticipated expenditure in the Second Plan:

Table 1 Anticipated expenditure in the Second Plan(Rs. crores)

scheme anticipated expenditure

subsidised industrial housing 24-2

slum clearance 9.9

low income group housing 37-8

village housing 3-7

plantation labour housing 0-1

middle income-group housing in Union Territories 0.3

state housing schemes 1-2

land acquisition and development 2-0

town planning 1-1

total 81-3

2. Besides (he housing schemes mentioned above, a few other specific schemes designed to benefitsections of the community like scheduled castes, scheduled tribes and backward classes in rural areas,handloom weavers, displaced persons etc., were undertaken. The housing programme for workers in thecoal and mica industries was implemented with resources provided by the labour welfare funds for theseindustries. During the Second Plan the Life Insurance Corporation began to provide funds for housebuilding to middle income groups and to State Governments for undertaking rental housing for their lowpaid employees. Housing on a considerable scale was also undertaken by the Central GovernmentDepartments and public enterprises for their employees. The total outlay on public housing during theSecond Plan was of the order of Rs. 250 crores and about 500,000 houses were constructed.

3. Although efforts on an increasing scale have been made in housing during the First and Second Plans,the problem of catching up with the arrears of housing and with the growth of population will continue to

present serious difficulty for many years to come. Between 1951 and 1961 there was an increase inpopulation of nearly 40 per cent in towns with a population of 20,000 or more. It was reckoned in theSecond Plan that the shortage of houses in urban areas might increase by 1961 to about 5 million ascomaared to 2.5 million houses in 1951.

4. The growth of population and, in particular, of the urban population suggest:, at Ieast three genera],considerations in relation to the directions in which housing programmes should be developed during theThird and subsequent Five Year Plans. Firstly, housing policies need to be set in the larger context ofeconomic development and industrialisation, both large-scale and the problems likely to emerge over the


21/185


22/185


23/185

23

10. Availability of building sites in sufficient numbers and at reasonable rates is essential for thesuccessful implementation of the housing programme. During the Third Plan, therefore, a fair share of theresources available for housing is being devoted to land acquisition and development. A scheme wasintroduced in 1959 for giving financial assistance to Start Governments in the shape of loans repayableover a period of 10 years for acquiring and developing lands in selected places. The land acquired is tobe utilised for house building under different schemes and for the provision of related community facilities

like parks, playgrounds, schools, hospitals, shops, post offices etc. In the Third Plan a programmeentailing an outlay of Rs. 26 crores (inclusive of the contributions to be made by the Life InsuranceCorporation) is envisaged for land acquisition and development. The resources made available under thisprogramme could serve as nuclei for 'revolving funds' in the States and be utilised for bulk acquisition anddevelopment of land.

Housing of Industrial Workers

11. Under the subsidised industrial housing scheme which was formulated in 1952 for providing housingto industrial workers employed in factories and mines, mainly in the private lector, the CentralGovernment provides to State Governments, State Housing Boards and municipal bodies 50 per cent ofthe cost as loan and 50 per cent as subsidy. Industrial employers and cooperative societies of industrialworkers are given financial assistance to the extent of 75 per cent and 90 per cent respectively, the extent

of subsidy in both qases being 25 per cent. To enable industrial workers to provide the remaining 10 percent of the cost, they have been allowed to draw non-refundable loans from their provident fund accounts.By the end of the Second Plan, the construction of about 140,000 tenements costing Rs. 45 crores hadbeen approved. About 100,000 tenements had been completed and the rest were under different stagesof construction.

12. The scheme should have made greater progress if even the subsidised rate of rent had not proved acomparatively high charge for workers, with the result that in some areas the tenements which have beenconstructed have not been occupied by industrial workers. The question of bringing down the rent so that

jt should be within the paying capacity of workers needs further study. Along with it, arrangements shouldbe made to provide cheap transport for taking workers to their places of work. Certain aspects of thescheme have been revised already. Workers have a larger measure of choice as between different typesof accommodation. Open developed and demarcated plots of land along with some building and roofing

materials can be taken up by workers, so that they may build huts of the prescribed pattern themselves.For those who do not wish to go in for 'self-built' huts on open developed plots, 'skeletal' housing with thenecessary foundation, plinth and roof to form a stable structure is provided. The rent for open developedplots is about Rs. 2 to Rs. 3 per month, whereas for skeletal housing it is about Rs. 8 per month. For non-family workers hostel or dormitory accommodation is built. A few other modifications such as extension inthe period of repayment of loan, increase in the ceilings of standard costs to fit in with the rise in prices ofbuilding materials and labour, liberalisation of allotment rules and provision of developed sites toemployers and cooperatives have been introduced. Recently employers have been granted a concessionin income-tax in the shape of an initial depreciation allowance of 20 per cent on the cost of construction ofnew houses for their low-paid employees, in addition to exemption. for three years from payment ofincome tax on the rental value of small houses.

13. Despite the steps which have been taken to make the industrial housing scheme more attractive to

employers, much progress cannot be achieved without the employers generally accepting the housing ofa substantial portion of workers as an essential obligation. It is necessary to remember that housingconditions for industrial workers have continued to deteriorate and that without improvements in thisdirection efforts to increase industrial efficiency and productivity will also be affected. The problem is,therefore, one of working out arrangements for new industries as well as for the established industrieswhich might be feasible from the financial and other aspects and would also result in an effectivecontribution towards the solution of the housing problem. For instance, new establishments with aprescribed limit of paid-up capital (say, Rs. 20 lakhs or more) could be placed under the obligation ofconstructing one-half of the housing required by their labour over a period of perhaps 10 years. In thecase of the older establishments, in any specific scheme that is worked out the contribution already made


24/185

24

by an employer to provide housing for their workers should be taken into account. In these industries also,over a period, the aim might be to ensure that about 50 per cent of the housing required is made availabledirectly by the industries and the rest as part of the general scheme of housing development. To theextent the employers are unable to construct directly the Government or the Housing Boards may take upconstruction. In such cases, the employers could contribute towards the cost of construction. These andother suggestions should be considered jointly in consultation with representatives of employers and

workers with a view to evolving a satisfactory scheme.

Housing of Dock Workers

14. A provision of Rs. 2 crores has been made in the Third Plan for giving loan assistance to Dock LabourBoards at Bombay, Calcutta and Madras to enable them to build houses for workers registered with them.

A suitable approach might be for Government to grant loans to the extent of 80 per cent of the cost ofconstruction. With the provision made in the Plan, it should be possible to build about 5000 houses. Inrecent years port development has been undertaken on a large scale, and in cooperation with the portauthorities a coordinated view of the housing problems in the ports should now be taken.

Holding For Low Income Groups

15. The low income group housing scheme provides for grant of loan assistance upto 80 per cent of thecost of the dwelling, subject to a maximum of Rs. 8000, to persons whose income does not exceed Rs.6000 per annum. Assistance on this scale is also given to local bodies, public institutions run on no-profit-no-lo&s basis, recognised hem'.h, ctK;:Lab-c and educational in-ti-tutions and cooperative societies.

16. Since the scheme began in 1954, loans for about 85,000 houses have been sanctioned, and by theend of the Second Plan about 53,000 houses were completed. There is considerable demand for loansunder this scheme. Progress has been gr:uter in towns where developed sites are available. It is felt thatin the Third Plan special steps should be . taken to enable those sections of the community which areeconomically weak to obtain clue benefits from the scheme, such as those with an annual income of Rs.1800 or less. Persons in this category are in a position to pay rent in the range of Rs. 10 to 12 or, at themost, Rs. 15 per mensem. The principal methods for providing housing for diem would appear to beeither through construction of rental housing mainly by Housing Boards and local bodies or through

housing cooperatives. As a basis for further consideration, it might be possible to provide local bodieswith loans at a concessional rate of interest repayable over a long period. Apart from pucca houses, thequestion of providing open developed plots or skeletal housing on the lines of the industrial housing andslum clearance schemes could be considered. Housing cooperatives comprising economically weakerpersons could also be given similar assistance. Roughly about a third of the provision under the lowincome group housing scheme could be earmarked for economically weak persons. Exemptions fromState and local taxes would also need to be considered. As more institutional finance for the housing oflow income groups generally becomes available, larger proportion of the funds provided byGovernment could be utilised for housing schemes for the economically weaker sections.

Plantation Labour Housing

17. The Plantation Labour Act, 1951, requires very employer of plantation labour to prov-de and maintainfor all workers and their families residing in plantations, necessary housing accommodation, at the rate ofat least 8 per cent of tho workers every year, until all such workers hav been provided for. A number ofplanters, particularly the smaller ones, found it difficult to discharge this obligation due to inadequacy offinancial resuorces. Accordingly the plantation labour housing scheme was introduced in 1956 forassisting such planters as needed financial help Under this scheme, loans are given to the extent of 80per cent of the cost of construction of the dwelling, excluding the cost ot land and its development, subjectto a maximum f Rs 2400 per house in North India and Rs.1920 per house in South India. The plantersare required to contribute the balance of 20 per cent from their own resources.


25/185

25

18. By the end of the Second Plan only 700 houses costing Rs. 14 lakhs had been sanctioned and 300houses completed. The main difficulty in the way of the scheme has been the inability of the planters tofurnish adequate security for the loan. The scheme requires the planters to mortgage to the StateGovernments land and houses built on it as security for the loan. The planters are not in a position tocomply because their land and other properties are usually mortgaged with banks as security for theloans advanced to them for the normal working expenses of the plantations.

19. To make it easier for planters to avail of the loans, some State Governments have relaxed the securityconditions. A 'Pool Guarantee Fund" Is also proposed to be set up with an additional -z per cent interestcharged on loans to the planters and the interest earned thereon' from year to year. This Fund will serveas collateral security for the grant of loans and the losses, if any, in excess of the assets in the Fund willbe shared equally by the Central Government, the State Government and the Commodity Boardconcerned.

Middle Income Group Housing

20. A scheme for providing loans to middle income groups was introduced in February, 1959, with fundsprovided by the Life Insurance Corporation and is meant for persons whose income is between Rs. 6000to Rs. 12,000 per annum. Loans to the extent or 80 per cent of the cost of the house subject to a

maximum of Rs. 16,000 (Rs. 20,000 in the case of those who do not already possess a plot of land) areprovided under the scheme. The loans are advanced to individual borrowers through the StateGovernments at the rate of 5i per cent per annum. By the end of the Second Plan a sum of Rs. 10.5crores was disbursed to State Governments and Union Territories. Loans were sanctioned t 3600applicants and about 500 houses were constructed. Progress was comparatively small in the initial stagesas this was a new scheme for which rules for the grant of loans had to b drawn up and otherarrangements made. Th Third Plan allocations do not provide finance for this scheme except in theUnion Territories, but it is likely that from funds provided by the Lift Insurance Corporation about Rs. 20crores might become available for the middle income group housing scheme and for the rental housingscheme for State Government employees mentioned below.

Rental Housing For State Government Employees

21. The object of the rental housing schcnr for State Government employees is to assist StateGovernments in providing housing accommodation to their low paid employees. Under the scheme, whichwas introduced in February1959 the Life Insurance Corporation grants loans carrying* an interest of 5 percent per annum to State Governments, and the loans are repayable over a period of 20 years. A sum ofabout Rs. 7 crores was given to State Governments under the scheme during the Second Five Year Plan,and 2500 houses were sanctioned and 735 were comoieted.

Slum Clearance And Improvement

22. The Third Plan provides for a programme of about Rs. 29 crores for slum clearance and improvement.A scheme for giving financial assistance to State Governments and local bodies to enable them to clearsome of the worst slums in big cities was initiated during the Second Plan. By the end of the Second Plan208 projects costing about Rs. 19 crores and involving re-housing of 58,200 families living in slum

conditions v/ere taken up in different towns and cities. About 18,000 units have been already completed.For such of the families as cannot afford to pay even the subsidised rent of a pucca tenement, thesqheme provides for skeletal housing and open developed plots with a separate washing platform andlatrine for each family, leaving it to the slum dwellers to build huts of a prescribed pattern themselves on aself-help basis in accordance with the technical directions of the State Government.

23. Some of the difficulties which came in the way of implementation of the slum clearance andimprovement programme were the lengthy and time-consuming procedures of acquisition of slum areas,non-availability and high costs of alternative sites near existing places of work, inability of the slum


26/185

26

dwellers to pay even the subsidised rent and their reluctance to move from the areas selected forclearance. Some States like Mysore, Madras, Madhya Pradesh, Assam, Punjab, West Bengal and Delhi

Administration have enacted legislation for speedier acquisition of slum areas and for scaling down therate of compensation. Similar legislation is also needed elsewhere. The scheme was reviewed by the

Advisory Committee on Slum Clearance and by a Study Team set up by the Committee on Plan Projects.These Committees recommended that while long-term plans were required, it was even more essential to

think of short-term measures to relieve acute distress in the slum areas and, as an immediate measure,minimum amenities like sanitary latrines, proper drainage, uncontamina-tcd water supply, moderatelygood approach roads, paved streets, and proper lighting should be provided. Following consideration ofthe reports of these two committees the scope of the slum clearance programme was extended to includeslum imporvement. Larger resources were also provided as a matter of immediate priority for dealing withslum problems in six major cities, namely, Calcutta, Bombay, Madras, Delhi. Kanpur and Ahmedabad. Inthese cities, the total subsidy for slum clearance was raised from 50 per cent to 62i per cent and theCentral Government'* share in it from 25 per cent to 37 percent.

24. The maximum effort under this scheme should continue to be concentrated on the six citiesmentioned above. However, it is proposed that in the Third Plan, in principle, slum clearance andimprovement work could be taken up wherever State Governments consider that the slum problem existsin acute form. In view of limitations of resources, it is considered that ordinarily towns and cities with apopulation of 100,000 or more should receive priority. It is -suggested that State Governments mayarrange for surveys of slum areas, classifying them in two categoriesareas which may have to becleared and re-developed completely, and those which can be made habitable through the improvementof environmental conditions. If the owners of slum properties falling within the second category fail tocarry out the improvements, these should be carried out through local bodies and the cost recovered fromthe owners; where necessary, the properties could be acquired or requisitioned. Wherever improvementsare carried out by local-bodies in slum areas on public lands or requisitioned lands, it may be necesary togive them grants for providing essential services. The cooperation of voluntary organisations and socialworkers should be fully enlisted in carrying out the programme of slum clearance.

25. While steps are being taken to clear or improve the existing slums, it is equally important that new-slums should not be allowed to grow up. This is by no means an easy object to achieve. Besidespreparing and strictly implementing master plans for all growing towns and cities, it will be essential toenforce municipal bye-laws and building regulations, and at the same time, to expand housing facilities for

low income groups and for economically weaker sections. As transitional measures, night shelters anddormitory accommodation for pavement dwellers and non-family workers have considerable urgency.Similarly, the housing of sweepers and scavengers must receive special attention. In selecting slum areasfor clearance and improvement high priority should be given to areas predominantly inhabited bysweepers and scavengers.

Urban Planning and Land Policy

26. Urbanisation s an important aspect of the process of economic and social development and is closelyconnected with many other problems such as migration from villages to towns, levels of living in rural andurban areas, relative costs of providing economic and social services in towns of varying size, provision ofhousing for different sections of the population, provision of facilities like water supply, sanitation,transport and power, pattern of economic development, location and dispersal of industries, civicadministration, fiscal policies, and the planning of land use. These aspects are of special importance inurban areas which are developing rapidly. The number of cities with a population of 100,000 or more hasincreased from 75 in 1951 to 115 in 1961, and their population now forms about

43 per 'cent of the total urban population. Of the aspects mentioned above, in the long run, the mostdecisive are the pattern of economic development and the general approach to industrial location. Thebroad objective must be to secure balanced development between large, medium-sized and smallindustries, and between rural and urban areas. While this is by no means easy to realise, the mainingredients of developmental policy are the following:


27/185

27

i. As far as possible, new industries should be established away from large and congested cities.ii. In the planning of large industries, the concept of region should be adopted. In each case,

planning should extend beyond the immediate environs to a larger area for whose developmentthe new industry would serve as a major focal point.

iii. In community development projects or other areas within a district the rural and urbancomponents of development should be knit into a composite plan based in each case onschemes for strengthening economic inter-depen-dence between towns and the surrounding ruralareas.

iv. Within each rural area the effort should be to secure a diversified occupational pattern in place ofthe present extreme dependence on agri

Rd First Ninth

Documents