Impact of SGSY scheme on Rural Development in Uttara Kannada district of Karnataka state- A study

Transcription

1 Impact of SGSY scheme on Rural Development in Uttara Kannada district of Karnataka state- A study MR. B.K. Kemparaju 1 Associate Professor and Research Scholar Department of U.G. Studies in Economics Government First Grade College Sirsi (UK) , Karnataka state, India Dr. R.Y. Khan 2 Associate Professor and Research Guide Department of U.G. Studies in Economics Government First Grade College, Sirsi (UK) , Karnataka state, India CONTENTS 1. Introduction 2. Statement of the problems 3. Methodology 3.1. Objectives of the study 3.2. Sample size and sampling methods Nature and sources of Data Tools used Selection of blocks Selection of beneficiaries Period of the study 3.3. Study area 3.4. Hypothesis of the study 4. Rural development: concepts and measures 5. SGSY: The New and Innovative Approach 6. Impact of SGSY on rural development in study area 7. Observation and Conclusion 8. References 63

2 Outline of the research paper The present research paper is made an attempt to analyse the Impact of SGSY scheme on Rural Development in Uttara Kannada district of Karnataka state- A study. India is a developing country, which is basically rural in nature and the 72 per cent of the total population live in rural areas (as per 2001 Census). Along with this, 25 percent of the world s poor live in India. They have very limited access to education, health, communication and other amenities of life. But a nation cannot achieve all round development unless its villages are developed. In this connection, the main aim of the government is development of rural area by providing basic necessaries. The concept of rural development is a long term strategy. As a result, Government of India is launched many programmes and policies for rural development and poverty alleviation and acceleration of social development since independence. As such, the Ministry of Rural Development was adopted SGSY to generate employment and income for rural poor. The main aims of SGSY is at bringing the assisted poor families above the poverty line in three years by providing them income-generating assets through a way of bank credit and government subsidy, ensuring at least Rs.2,000 net income to the assisted families. Therefore, the SGSY is one of the useful and powerful instruments for selfemployment and rural development in India. the main objectives of the study is know the concept of rural development and find out the performance of SGSY for rural development in Uttara Kannada district of Karnataka state by the using primary data and various secondary sources like Taluk panchayat records, Economic Survey of Karnataka, concerned website, research papers, articles etc., KEY WORDS: Rural Development, SGSY, Uttara Kannada and Karnataka ********* 1. Introduction: The present research paper is made an attempt to analyse the Impact of SGSY scheme on Rural Development in Uttara Kannada district of Karnataka state- A study. Indian economy is rural economy more than 60 percent of people lives in rural area. Rural peoples suffering from many problems such as problems of hunger, illiteracy, unemployment and lack of basic infrastructure like schools, colleges, hospitals, sanitation etc. this has led to youth moving out of villages to work in cities. Our villages need to grow as per with cities and standard of life has to improve, therefore inclusive growth to happen through rural development. The concept of rural development is a long term strategy. Government of India implemented many programmes and policies for rural development since independence. Generation of self-employment is one of the important components of anti-poverty and rural development strategy for the poor in rural areas. As such the Ministry of Rural Development in India was adopted SGSY to generate employment and income for rural poor. The main aims of SGSY is at bringing the assisted poor families above the poverty line in three years by providing them income-generating assets through a way of bank credit and government subsidy, ensuring at least Rs.2,000 net income to the assisted families. The sample respondents have been selected on the basis of simple random sampling technique. The study has been found that Out of 179 respondents, nearly 150 respondent swarozgaris accounting for 83 percent have asserted that they have been fully employed after availing of the SGSY Loan. The Hashim Committee recommended integration of all rural wage employment programs into a single scheme and rechristened it as Jawahar Gram Samridhi Yojna (JGSY) and that of all rural selfemployment programs into a single scheme called Swarnajayanti Gram Swarozgar Yojna (SGSY). 64

3 2. Statement of the problems: India is a developing economy, which is basically rural in nature, more than 65 per cent of people s lives in villages; it needs many requirements to grow. Village should be empowered with the help of self-employment in rural area. The central government is implemented many programmes along with state government for rural development. Among them SGSY is a holistic programme for rural development. In this background study choose to know the role of SGSY to empower the villagers to achieve the rural development and also analysed the economic conditions of assisted families (beneficiaries) of individuals and whether it has really helped in bringing every assisted family above the poverty line. 3. Methodology: The study has been conducted with the help of both primary and secondary data. Good methodology follows the standards of well-known principles for the present paper; a number of requisite points of the research methodology are as follows Objectives of the study: The study is based on following objectives to assess and ascertain rural development in Uttara Kannada district with the help of SGSY scheme. To know the concepts and measures of rural development To study the impact of SGSY on rural development in study area To offer suggestions based on findings of the study 3.2. Sample size and sampling methods: The study is applied following criteria to select the samples. Nature and sources of Data: To achieve the aforesaid objectives data is gathered from primary sources and various secondary sources like Taluk panchayat records, Economic Survey of Karnataka, concerned website, research papers, articles etc., Tools used: The statistical tools used in the study are average, ratio and percentage. Selection of blocks: Sirsi taluk of Uttara Kannada district was selected for the study and confined to Rural Development of Sirsi taluk of Uttara Kannada district In this study only selected SGSY programme is made analyses to achieve the aforesaid objectives. Selection of beneficiaries: The sample beneficiaries were selected from Sirsi taluk that were supported with credit linkage with bank upto 31 March Out of total 179 Individual swarozgaris who are benefited under the scheme since inception of the program, 30% of swarozgaris (52) were randomly selected for the study. Period of the study: The study is considered from 1999 to The sample selected for study upto March 2006 is expected to furnish results and therefore end point of study is considered as March 2009 to get evident result Study area: The study is conducted in Sirsi taluk of Uttara Kannada district. The taluk consist 27 Grama Panchayati come under the four revenue circle. There are 179 beneficiaries avail benefits under SGSY scheme during five year periods. In which, researcher were selected 52 beneficiaries of SGSY from the 15 Grama Panchayati randomly. The list of SGSY beneficiaries was prepared with the support of taluk Panchati office of Sirsi taluk. In order to analyse the rural development through SGSY scheme in study area. Therefore researcher is decided to consider is as reference year. The study is conducted for the period of intensively to provide minimum three years gap. 65

4 3.4. Hypothesis of the study: The study seeks to test the following hypothesis SGSY is a holistic programme and innovative strategy for rural development through the creating widespread income generating activities in rural area. 4. Rural development: concepts and measures The term rural development connotes overall development of rural areas to improve the quality of life of rural people. In this sense, it is a comprehensive and multidimensional concept, and encompasses the development of agriculture and allied activities, village and cottage industries and crafts, socio-economic infrastructure, community services and facilities and, above all, human resources in rural areas. Rural development is the process of improving the quality of life and economic wellbeing of people of rural people. The need for rural peoples to approach development from a wider perspective has created more focus on a broad range of development goals rather than merely creating incentive for agricultural or resource based businesses. Education, entrepreneurship, physical infrastructure, and social infrastructure all play an important role in developing rural regions. There are no universally accepted approaches to rural development. It is a choice influenced by time, space and culture. The Ministry of Rural Development places importance now on health, education, drinking water, housing and road so that the quality of life in rural areas improves and the fruit of economic reform are shared by all sections of the society. Central Government as well as State Government has launched many Rural Development Schemes for the overall development of rural area. Thus, in order to determine the effectiveness of SGSY programs, it is important to examine the impact and performance of this program in the rural areas, so that effective rural development programs may be designed for the betterment of the rural community. The objective of the program was to work for all around development of the rural communities. The emphasis was laid down on removing the rural poverty. The present study is an attempt to highlight the significant aspects of SGSY scheme in rural development. It is helpful for scientific and systematic planning and proper implementation of different rural development programs/schemes in the rural area. 5. SGSY: The New and Innovative Approach: The Swarnajayanti Gram Swarozgar Yojna (SGSY) a new and innovative approach, it has been launched as an integrated programme for self-employment of the rural poor on April 1, SGSY is formed by merging IRDP, DWCRA, TRYSEM, SITRA, GKY and MWS. The objective of SGSY is to bring the assisted poor families above poverty line by organizing them into Self-Help Groups (SHGs) through the process of social mobilization, their training and capacity building and provision of income generating activities through a mix of bank credit and government subsidy. The scheme emphasizes on process approach and building the capacity of the rural poor. The scheme provides involvement of NGOs/Individuals/Banks as facilitators/self-help promoting institutions in nurturing and development of SHGs including skill development. The SGSY guideline requires that the beneficiaries should be drawn out from the BPL list approved by the gram sabha. The SGSY beneficiaries broadly goes through three stages of evaluation such as SHG group formation, capital formation through revolving fund and the skill development and finally taking up of the economic activity for income generation. The scheme is financed on 75:25 cost-sharing bases between the Centre and the State. 66

5 6. Impact of SGSY on rural development in study area: The SGSY emphasizes on Cluster Approach, i.e., each block should concentrate on 4-5 selected key activities and attend all aspects of these activities, the swarozgaries can draw sustainable income from their investment. Selection of key activities would be made with the approval of the Panchayat Samiti at the taluk level and the DRDA/ZP at the District level. The major share of the SGSY assistance would be on activity clusters. Women and weaker sections are to be the focus areas of poverty-alleviation effort under SGSY. 50% of the benefits under the program would accrue to the SC/STs, 40% to women and 3% to handicapped persons. The proposed study intends to evaluate the effectiveness of SGSY in uplift of BPL beneficiaries. The study will concentrate on evaluating the scheme by the using following data in Sirsi taluk Panchayti of Uttara Kannada district in Karnataka state. Table 1. Distribution of respondents based on their age group. Sl. No. Age Group Frequency Percentage to to and above The table 1 deals with the age composition of respondents per cent of respondents were in the age group of years and per cent of respondents were comes in the age group of years. It is revealed that majority of respondents are in the working age group, they are engage in gainful activities. Table 2. Distribution of respondents based on their educational status. Sl. No. education Frequency Percentage 1. Illiterate Primary Secondary College Table 2 deals with the education level of respondents. Out of 179 respondents, 133 beneficiaries (74.3%) are considered as literates. It is the higher than the state literacy of 60 per cent and improving gradually. 67

6 Table 3. Distribution of respondents based on their occupation. Sl. No. occupation Frequency Percentage 1. Agriculture Agriculture daily wage labour Animal husbandry Non- agricultural labour Small business Business The table 3 reveals the occupational structure of the SGSY beneficiaries. The majorities (31.30%) of the person are engaged in agriculture. Followed by non- agricultural labours (11.73%) and remaining are employed in various activities like agricultural labour, animal husbandry, small business and business. It is clearly stated in the collected information that agriculture is main stay of significant portion of the population as agriculture is a dominant sector in the study area. Therefore people of agriculturists and agricultural labourers should get much of the facilities. Table 4. Distribution of beneficiaries based on their Caste and community Sl. No. Caste Frequency Percentage 1. SC/ST OBC Others Table 4 shows the caste composition of respondents. The majority (75.42%) of the beneficiaries belong to the OBC; the fruitful of SGSY is not properly reached to the SC/ST community per cent of the beneficiaries belong to the SC/ST and only 6.14 per cent of the respondents belong to the other group. The study finds out the fact that majority of the population by the data collected from study area is comprised of OBC community. Among the OBC community benefits have been unevenly distributed. Say for example the Naik s community which has taken a loin share of these benefits and other backward caste like lingayats, shety s, Badigar community are lagging behind the Naik s community. Table 5. Distribution of respondents based on their family size. Sl. No. Family size Frequency Percentage 1. Small (0-6) Medium(6-8) Large ( above 8) Table 5 shows that family size of respondents is vary in the study area. Large number (46.93%) of the respondents are comes under the medium size of family. A few percentages belong 68

7 to large size of the family. It is clearly stated that Micro industry is very suitable in this area. So, SGSY is generous scheme for encourage the small business. Small business may start with the help of small number of labours. Table 6. Distribution of beneficiaries based on their level of knowledge about SGSY Schemes Sl. No. level Frequency Percentage 1. Low medium High Table 6 reveals that majority of respondent (73.73%) are aware about SGSY scheme through the members of taluk Panchayti and Grama Panchayati. It is clearly indicated that large number of rural people aware about the SGSY Scheme. Table 7: Response of the SGSY beneficiaries on income level Sl. No. Response of the respondents frequency Percentage 1. Increase in income has taken place after the loan 2. No increase in the income Total Table 7 reveals support the view that has been as increase in income level after the use of SGSY scheme is asserted by 44 respondents beneficiaries accounting for per cent of the total. However same view is not accepted by 08 respondents beneficiaries accounting for per cent of the total. They say that there has not been any increase in their income due to the use of the SGSY loan. It is clearly indicated that SGSY scheme is helps to increase the level of income by using this benefit properly. Table 8: monthly income created asset of SGSY beneficiaries Sl. No. Amount of No. of percentage Average income income respondents (in Rs.) Total Table 8 support the view that has been as increase in income after the use of loan. Out of total 52 respondents the majority (38.46%) of the beneficiaries are earning the amount less than Rs. 2000/- and only few (28.84%) beneficiaries able to earn income between the range of Rs It indicates that most of the people are in progressive stage and income earned from created assets is not only the main source of income to elevate their income level to standard of living. 69

8 7. Suggestions and Conclusion In order to know the general observation about information was collected. It was observed that majority of respondent were quite with the programme as it had helped them to improve their economic condition at least marginally and some extent employment. Uttara Kannada district has achieved a commendable level of success to bring large number of BPL family under SGSY scheme in rural areas. It must be admitted that SGSY is a real programme to help the involved in selfemployment and generation of income among the rural poor. Most of the respondents are from rural areas but micro financing schemes have achieved wonders in improving the economic conditions of the rural poor living in inaccessible villages and protecting them from the clutches of the village money lenders. To overcome the problems awareness and training among the beneficiaries, regular monitoring, minimization of the interest rate and motivation is utmost need to achieve the goal of such schemes. Recently the scheme is not popular and BPL family may not interested to get this benefit due to meagre amount is sanctioned by using invalid procedure. There should be increase the loan amount and provide the financial assistant without any difficult. The hypothesis that SGSY scheme is a strategy for removal of poverty through the creating widespread income generating activities in elevating the position of the rural people stands confirmed. Thus, rural developments possible through SGSY scheme in selected area have proved more employment opportunities for the BPL family of rural area. 8. References: 1. District at glance: Uttara Kannada, Karnataka 2. Clark, David A. (2005), "The capability Approach: Its Development, Critiques and Recent Advances", Global Poverty Research Group, p.3.downloaded on June 19, 2007,link: working papers/ pdfs/ gprg-wps-032.pdf Field, Andy (2005), Discovering Statistics Using SPSS, Sage Publication, London, p Rajneesh (2014) Impact of various rural development schemes: an evaluation, ISSN X Vol. 3, No. 2, 4. Mosley, Paul and Hulme, David (1998), "Micro enterprise Finance: Is There a Conflict between Growth and Poverty Alleviation?" World Development, Vol. 26, No. 5, pp , Nayyar, Gaurav (2005), "Growth and Poverty in Rural India: An Analysis of Inter-State Differences", Economic and Political Weekly, April 16, 2005, pp Ray, Debraj (2002). Development Economics, India: Oxford University Press, Fifth Impression. ******* 70