CHAPTER-5

Problems, Suggestions and

Conclusion

his chapter deals with the problems, suggestions and conclusion

of both the schemes.

In the problems I have taken those problems which I have personally seen,

heard and talked about during my course of survey of both the schemes. Some

problems are also collected from the local newspaper, Television news channels when

they highlighted the malpractices, in both the schemes.

Knowing the problems first, then I have given suggestions to solve out the above

problems and lastly I have concluded my whole study.

Problem under SGSY

(i) During the survey it was found that it is difficult for an uneducated and poor

people to make a project (key activities) for which they can apply loans under this

Swarnjayanti Gram Swarozgar Yojana scheme for self-employment.

(ii) After completing all the formalities of their key activities they have to submit

it in the panchayat. These panchayat members may identify about 8 to 10 activities,

which they may rank in the order of preference. This list then is placed before

panchayat samiti (block panchayat) and they give its recommendation regarding

selected activities. These samiti forwarded by the Block Development Officer (BDO)

to the District SGSY committee for further consideration. District SGSY committee

will receive the block wise proposal and will select about 10 activities per block

according to the preference and others are disapproved and returned back. After

finalizing these key activities, they furthers forwarded to state level committee and

once these activities are finalized by state level committee they will further forwarded

to central level committee. Once these central level committee satisfied and finalized

these activities then they will forwarded to the nationalized commercial banks.

Thus, this process of the SGSY scheme is quiet long and there are many stages

through which the proposals has to pass to get approved. In short from the village

panchayat it goes to central level committee. Mean while in such a long journey the

T

proposal can also be rejected or revised in any stage and it return back to the person or

groups who has applied for the project in the scheme.

Now again individual/group has to revise his project and submit to gram

panchayat and again it goes many stages.

During the survey most of the individuals or self-help groups complained

about the long time taken in finalizing their projects. This delayed badly effects the

project costs because of inflation. The cost is not matched by the loans which

sanctioned by the Nationalised Banks that too in installments. Many beneficiaries also

told that a person who having sources or approach at higher level can approve their

projects easily.

Thus, it is a very big flaw with this scheme and the government should take

some major steps regarding this.

(iii). The corruption prevailing in the country plays the major role in finalizing the

projects and the sanctioning of the loans. Almost 30 percent of the loans sanctioned

goes as commission to the various level of officers of this scheme and banks too. The

person who has applied for the projects is badly effected. Therefore government

should take some primitive action against corrupted officers.

(iv). As stated earlier that the loan under this scheme is sanctioned in installments.

These Nationalised Commercial Banks after releasing the first installment of loans to

beneficiaries under this scheme, they want the utilization certificate from these

beneficiaries. And only after getting this utilization certificate from the beneficiaries

than the banks will release the second installment. Thus, this is again a hurdle in the

implementation of this scheme.

(v). I met certain beneficiaries of the Primary sectors during my survey. The

primary sectors includes rearing of buffaloes, cows; rearing of goats; pisciculture;

poultry farm etc. One of beneficiary who were running poultry farm and other

beneficiary who had taken loans for rearing of buffaloes. They told me because of the

lack of insurance, if the chickens, or buffaloes dies, then this will affected a lot in

their business (whole project) because they cannot repay the loans amount. Here it has

suggested that some kind of insurance should also be provided to beneficiaries of the

primary sector.

(vi). During my survey, I met some of the beneficiaries of the secondary sectors,

who were running their own business i.e. for making candles and agarbattis. They all

complained about the marketing factor. They said that because their products is not

branded the shop keeper give very little price of their product and these shop keepers

sell at a higher price. It means no market benefit has been provided to these

beneficiaries of secondary sector in this scheme.

(vii). The beneficiaries of Territary sector under which general store, garments

shops etc comes. Their complaints is some what different. These beneficiaries told me

that their project is not very successful because they do not get the prime location in

the market. Another beneficiary who had taken loans for stitching garments, told that

they do not get the best quality of sewing machine and also do not get sufficient cloth

to manufacture the final items. This type of the problems of beneficiaries in this sector

should also be looked by the government, who are monitoring this scheme.

(viii). Some of the beneficiaries complaint that the rate of interest i.e. 12% is quiet

high in this scheme.

(ix). Most of the beneficiaries told that the sanctioned loan is always less then what

they have applied for, this is again the big hurdle in the smooth functioning of the

scheme.

The above problems of the individuals and the SHGs beneficiaries to verified

their complaints I visited and talked personally to Zila Panchyat Officers and also the

bank officers and found that these officers are having a very different story to tell.

Officers of Zila Panchayat told that what ever the projects they get under this

scheme, 90% of the project are not fully completed, which are submitted either by

individuals or SHGs. So naturally they have to send back to them to complete the

formalities in a systematic manner.

Officers also told that in the format of the project, it clearly mention the

priorities for the projects. Under this scheme they give priority to those projects which

are applying for irrigation facilities and also depend upon the requirement in the

particular villages. When they scrutinize the projects, unfortunately skeleton projects

are submitted in the priority sectors that too not full completed. So they have no other

way but to return it back to individuals or SHGs.

Here it has suggested that the panchayat officers should made the consultancy

services in order to educate the people, how properly they can fill the form. They

should also demonstrate to fill the project format and other required government

formalities.

During my survey when I talk to the financial institution, they said generally

they received the project from both individuals and SHGs and they inflate their

project beyond the allotted amount under this scheme. There are also problems in

depositing the marginal money. In the same ways there are many problems related to

the recovery of the loans.

The bank officers also told that the individual misuse the loan amount. It

means if the loans is granted for the particular project under the scheme. They utilize

the sanctioned loan in some other personal social purposes. For example the loan may

be used for individual sickness or accidents or for the marriage ceremony of their

son/daughter or some other religious functions.

The bank officers straight way denies any commission or any such type of

money which is demanded by them from the beneficiaries of this scheme. It means

that these bank officers bluntly denied the charges of corruption on them.

Suggestions:

Following are the suggestions for the improvement of this scheme:

(i) The first problem in the whole scheme is to make a project and do many

formalities of Zila Panchayat and nationalized banks. To get their project approved,

the majority of the rural population is unable to complete the long formalities and

paper works for the approval of their projects. Here, it has been suggested that the

Zila Panchayat through gram panchayat should advice and help the people in making

their projects. They should also provide consultancy services to give demonstration

and other such services to a common man in the village. The gram panchayat should

also organized some workshop and asked the people to join it to complete the

formalities which are required to run this scheme successful.

(ii) The process of approval of project is a very lengthy, which is submitted by an

individuals and self help groups in the gram panchayats. These panchayat members

should approve the projects according to their preferences. This projects then is

placed before block panchayat, after their recommendation regarding selected

projects, they will further forwarded it to district SGSY committee for consideration.

After their consideration they will forwarded the projects to state level committee and

once this projects are finalized by state level committee, they will be further

forwarded to central level committee and after their consideration, they will approve

the projects and finally forwarded to the nationalized banks for sanctioning of loans.

Thus, the process of the SGSY scheme is quite lengthy, which goes to

different levels of committee. Therefore, it has been suggested that the Central

Government should deligate some powers to the state level committee and this

committee should grant few powers to district level committee (Zila Panchayat) so

that the projects under this scheme should be finalized at the district level. And these

projects should be sent to state level committee for final approval. This state level

committee should send these projects to banks for sanctioning loans. By shortening

the process of approval of these projects will help the individuals and self help groups

and more over it will save time and projects will finalized in short period.

(iii) Sometimes the projects are approved by district as well as state level

committee, may reject by central government which is also a big hurdle in the

implementation of this scheme.

Here it has been suggested again that the central government should give some

authorities for the approval of the projects to the state level committee which will

make the scheme easier for individuals and self help groups.

(iv) When the projects goes to the banks they also take long time in scrutinizing

various aspects of the projects and then sanction the loans. The central government

should request these banks to make some easy norms for the sanctioning of the loans.

(v) As already written above that most of the individuals and self help groups have

complaint about the corruption at the different level of committee that is from village

panchayat to central level committee including banks. Today corruption is

everywhere i.e. from central government to gram panchayat. Corruption is a major

problem that India is facing today, it is running the whole democratic system of India.

If this corruption is not checked immediately, the whole democratic system in the

country will collapse soon. The moral values of the society have gone down. It is

evident in almost all sphere of life in India. Thus, government should take immediate

step to check the corruption.

(vi) The banks under this scheme sanctioned the loans for projects in installments.

Most of the beneficiaries of this scheme complaint that the installment released by

banks under this scheme is not sufficient. There is another problems also that the

banks require utilization certificate of their first installment. This is again a problem

for the beneficiaries.

Here it is to suggest that the banks should sanctioned first installments of the

loans in acceptable to the beneficiaries and for getting the utilization certificate they

can give a time period for the submission of this certificate.

(vii) Another problem in this scheme is that the beneficiaries who were asking

loans in the primary sector i.e. rearing of buffaloes, cows, rearing of goats,

pisciculture etc. are not getting insurance. Because of this the people are now turning

away for getting loans for these purposes.

Here suggested that the projects which sanctioned in the primary sectors under

this scheme should get some insurance or subsidy to help the individuals or SHGs in

case of some fatality of their animals.

(viii) Another problem in this scheme is that the beneficiaries of secondary sector

i.e. making candles, agarbatti, making garam masala etc. are not getting profit in their

business, most of them are going in loss because their products are not branded and

shopkeeper take their products at cheap rate.

Here suggested that the government should provide them market facilities

through the public distribution system. Government should also organized handicraft

fare, haat (weekly market) etc. where these beneficiaries can sell their product and get

profit out of it.

(ix) The beneficiaries of territary sectors who have taken loans for general store,

tea stall, manufacturing of clothes etc. found that their business is not running in profit

because of the lack of prime location in the market and due to high competition in the

market itself.

It has been suggested that the government should provide good quality of

machines, clothes and other things (commodities) to them. Government under this

scheme should also sanction some limited amount for advertisement of their products

through TV, Radio, Magazines and News paper. In almost every block there is a

market of the nagar panchayat, to help these beneficiaries they should allot some of

the shops to them.

(x) Under this scheme, Government should decrease rate of interest little bit to

make convenient for the beneficiaries so that they can return their loan on a monthly

deposit on time.

(xi) Training should be given to all the beneficiaries of this scheme, though course

work by Zila panchayat in order to develop their skill.

(xii) The recovery of loans should be made easier.

(xiii) Government should also check timely that the beneficiaries are not misusing

the loans amount under this scheme. If they are found, government should take some

puritive action against them.

Finally, it can be concluded that though there are problems in making the

projects and sanctioning the loans under this scheme but still it has been found that

most of the beneficiaries are satisfied with this scheme.

In my opinion the success rate of this scheme is more than 50 percent in the

Sagar district.

Problems under MNREGA

(i) Labourers do not get the full employment - During survey it has been

observed that the people having a job card are getting very less employment under

this scheme. Many labourers of Banda block, informed that few days back some

works under this scheme started but suddenly the works was stopped due to some

reasons and hardly any labourers got employment more than 10 days.

(ii). Delays in Job Cards - According to MNREGA, the gram panchayat will issue

job cards to every registered household. It should be issued immediately after

verification i.e., within a fortnight of the application for registration. Unfortunately, in

Sagar district situation is entirely different. There is a delays in providing job cards

even more than a month to those people who are willing to work under this scheme.

Thus, due to this delays, people suffers and they are forced to migrate another place to

earn their living.

(iii) Delays in the payment of MNREGA wages - The Act stipulates that wages be

paid within 15 days of work being done, but the situation is entirely different in Sagar

district. There is a serious delays in the payment of MNREGA wages in all the blocks

of Sagar district which causes great hardship to labourers. When wages are delayed

they are forced to resort to lower paid or exploitative employment and even distress

migration. The delays have diminished the interest of labourers in employment under

this scheme.

(iv) Nepotism - During the survey it was found that generally sarpanch and

secretary gave employment to those villagers who are either their domestic servants or

working in their field or their relatives. Thus, due to this partiality other poor villagers

suffers a lot and they remained unemployed and they did not get the benefits by this

scheme.

(v) Banks and Post Offices were overburdened - It has been observed that there is

hardly any banks or post offices in the remote rural areas. Due to this the processing

of payments through accounts created a "jam" as banks and post offices were

overburdened with the opening and dealing thousands of accounts in each branch.

(vi) Daily wages of labourers are deposited in banks and post offices. Generally

labourers are uneducated and they have to depends upon Sarpanch or Secretary to

complete their banks/post office formalities, to withdrawal their money. Due to this,

these Sarpanch and Secretary pocket some of the wages of the labourers.

(vii) Most of the villager in Sagar district do not have bank and post office facilities

or nearby. Due to this, these labourers had to travel 4-5 kms or more than this to reach

banks or post offices. Moreover they have to wait for their chance to come, to

withdrawal their money which makes them very uneasy and inconvenient. Some

times Bank Officers or employees in post office treat these labourers very badly.

(viii) It has also been found that MNREGA staff are untrained and prepare these

formats manually (in this process, they waste their time in drawing rows and columns)

each week, this leads to error.

(ix) During the survey it was found that in many areas muster rolls are not

maintained at the work site, thus this leads to delays and corruption.

(x) In Gadar gram panchayat, Banda block, found that there is no coordination

between sarpanch and secretary, as a result villagers of Gadar do not get works and

payments on time. At last these people suffers a lot.

(xi) During the survey it has found that from year 2007-08 to 2010-2011, 11839

works were allotted in Sagar district and out of which only 113 works have been

completed.

(xii). In four blocks i.e. Banda, Bina, Jaisinagar and Shahgarh block, were no works

have been completed under this scheme though the total works allotted in these blocks

are 3661 works. The total expenditure already occurred in these 4 blocks are

Rs.13812479 out of which labour expenditure is Rs.76805057 and material

expenditure done in these 4 blocks is Rs.61319731.

(xiii). In Rahatgarh and Rehli block out of total 2440 works, only single works have

been completed in Rahatgarh as well as in Rehli block so far. The total expenditure

done in these two blocks are Rs.131757120, out of which labour expenditure done in

both blocks is Rs.58728159 and material expenditure done is Rs.73028961.

The maximum number of works completed in Sagar district from year 2007-

08 to 2010-11 is in Sagar block i.e. 79 out of 1383 works. The total expenditure done

in this block is Rs.57241510 out of which labour expenditure is Rs.29627545 and

material expenditure is Rs.27613965.

(xiv). If we look over all, we come to know that in Sagar district only 1% works

have been completed under this scheme from year 2007-08 to 2010-11. This means

that the progress of the works which have been allotted in the scheme is very slow but

the total expenditure occurred during this period is Rs.471170967, which shows the

poor implementation of the scheme in Sagar district.

(xv). It has been noticed during the survey that this scheme is for rural employment

generation, but Sarpanch, Secretary and local politicians are using JCB machines and

other building machines to complete their works in short duration and earn profit out

of this. Thus, this kind of works hampers in generating employment for rural poor

people.

(xvi). Also found during the survey that the labourers who are working under this

scheme do not get full wages.

(xvii). It has been found during the survey that some particular work which is shown

completed in the records of Panchayat, but on the spot visit found that the works has

to be done, but in actual the work has not done. It was noticed that in some cases the

incomplete work was shown as completed in the record of the gram panchayat.

(xviii). When I personally talked to the sarpanch and secretary of the rural areas, they

told me that there is a chain of commission that is given to every stage from lower to

the higher authority. If they do not completed these formalities than their allotted

budget will never reached in the gram panchayat. They also told me that half of the

budget of gram panchayat under this schemes goes as a commission to different levels

of authorities. This shows that there exists vampant corruption in the implementation

of the scheme in a district.

(xix). During survey it has also come to know a strange phenomena that the

panchayats have made fake job cards in the name of peoples like children, teachers

and even death peoples also, and these sarpanch and secretary are withdrawing money

in their names. During the survey on personally checking the MNREGA website i.e.

www.nrega.nic.in and found that the photographs does not match with the name of the

people which is written in the job cards.

Many times the local press reporters also reported such things in their news

papers, especially hindi news paper like Dainik Bhaskar, Dainik Jagran, Nai Duniya

etc.

(xx). Though Sagar is the Divisional headquarter of the Bundelkhand region of

Madhya Pradesh but the district itself is economically backward because of the poor

irrigation facilities in agriculture, and mostly the unemployed labours in the district

are uneducated. When I talked to villagers regarding this scheme, many labourers are

not aware of the MNREGA rules like how to apply for a job card, mostly labour class

had to depends upon sarpanch and secretary to fill their forms for job cards, and also

they are dependent on sarpanch and secretary to complete their formalities for

withdrawing money from banks or post offices. They also not knowing where they

should complain if they are not getting payments on time or job card etc.

Paper reports of corruptions reported in local news papers under this scheme

in Sagar district is described in fourth chapter also attached in the thesis.

Thus, in my opinion MNREGA is not working satisfactory and not generating

sufficient employment in the rural areas of Sagar district, as a result villagers are

migrating to other cities in search of their livelihood. There are many lapses and

loopholes in this scheme, due to these drawbacks, in my opinion, this scheme is more

or less a failure in Sagar district.

Suggestions :

Following the corrective measures to improve the plan for its proper

implementation so that the persons will be benefitted for whom the programmes are

planned -

(i) The procedure to make the job cards under this scheme should be made easier

so that the villagers should not wait for long time for their job cards.

(ii) To get wages on time to the labourers, administrative and bank system should

be rural oriented which catering the needs of rural labourer of Sagar district.

Moreover they should transfer amounts on time in labourers accounts and

withdrawal procedure should be made easier.

(iii) Nepotism and corruptions should be stop by the government, which is causing

havoc in the practice poor people and the scheme itself. The government

should take immediate puritive actions against those sarpanch, secretary and

the local politicians who are indulge in such malpractices.

(iv) Banks and post offices should increase their staff in rural banks/post offices

and providing stationery and computerized facilities so that they are better

equipped to deal with the work load.

(v) There should be maintenance of muster rolls at the worksite and regular

updating of job cards, so that labourers have officials evidence of the dates on

which work was done.

(vi) Strict measures must be taken to ensure greater accountability of the

implementing bodies towards labourers. There is a provision in MNREGA that

can be activated. For instance, the penalty clause (Section 25) that allows for a

fine upto Rs.1000/- when any officers fails to do his/her duty, which should be

apply automatically in cases of delays exceeding 15 days. That would go a

long way in ensuring accountability.

(vii) Government should appoint additional staff especially technical staff to ensure

timely measurement of MNREGA work.

(viii) For the convenience of labourers government should open post offices or banks

in the village or nearby it, so that labourers can withdraw their payment on

time and more over they did not have to travel long distance to collect their

payments.

(ix) The government should issue a very strict circular that the sarpanch and

secretary will employ only those villagers who are having their job cards and

should give first preference to the poorest of the poor of the scheme.

(x) Government should issue funds to the remote gram panchayats, so they are in a

position to employ maximum number of job cards holders under this scheme.

(xi) Government should keep trained staff under MNREGA who can keep and

maintain all the records in a systematic manner in order to avoid error.

(xii) It should also be ensure that no machinery equipments should be used by the

MNREGA officers, sarpanch, secretary or local politicians at work sites

because by using these machines in place of labour is a crime in my opinion as

this scheme is especially made to generate employment to the needy people

who are living in the rural areas.

(xiii) As already stated earlier that the officer of the MNREGA at higher level should

watch the M.P. Government website i.e. www.nrega.nin.in order to check the

fake job cards, made on the name of dead people. Also check whether name

and photographs on the job card belongs to same person or not. It is also in the

notice of the MNREGA officers that the government employee or the people

who are living above poverty line should not have their names in the job cards.

(xiv) Finally, it has been suggested that to improve the functioning of the scheme,

there must be an independent monitoring team to monitor the process of this

scheme. The monitoring team can be made by associating dignified personality

from the society, economists, professors from university and college, and other

such knowledgeable persons who cannot be influenced by any permanent

employees.

This team can randomly go to different panchayats of the district and check

the works which is in progress, the muster rolls, job cards, wages paid to labourers on

time or not and also to see whether any machinery equipment are being used in the

worksite and other such malpractices. They should submit their reports directly to the

head office of the scheme at Bhopal. And most importantly that the government

should take puritive actions against those persons who are found to be corrupt and

mismanaging this MNREGA in order to make this scheme really successful.

On 28th

June, 2011 Shri Shivraj Singh Chauhan, the Chief Minister of the

Madhya Pradesh in his speech at Bhopal said that "he is not happy with the

functioning of the MNREGA. He has suggested that under this scheme permanent

sustainable structure should be made which can later be verified by some other

agency".

Thus, this statement of Chief Minister of Madhya Pradesh clearly indicates

that this scheme is failed in Madhya Pradesh. And final conclusion also says the same

which has already been stated earlier that this scheme more or less failure.

Summary and Conclusion:

Rural employment programme would play a vital role in mobilizing the

growing rural labour and providing them with employment in a organised manner on

quasi-permanent basis. The long term objectives of these employment programme

have been to generate employment opportunities within the rural sector, capable of

transforming the rural unskilled labour into a dynamic input for capital formation and

social change for rural employment and poverty, there is no remedy other than a

massive programming of investment in rural development by applying science and

technology to step up farm incomes and employment which in turn will intensify the

non-agriculture fields.

Implementation of various rural development programmes in the region have

been helpful in improving the living standard of the people in the study region and

have been successfully increasing a sense of confidence among the rural people about

the development programmes and policies of the government. They have been

considered as a major break through in the process of development. Development of

rural areas has been one of the abiding concern of various government plans. The

villages to be provided with modern amenities and their standard of living was to be

raised, so as to reduce the disparities between rural and urban sectors.

The present work has been divided into five chapters. The First chapter is

introduction of planning for rural employment. In this chapter I have explain the

meaning of planning, unemployment and also given the details of various rural

employment programmes and schemes which launched during Five Year Plan i.e.

from Fifth Five year Plan to Eleventh Five Year Plan. Thus, many schemes launched

by the Government to generate employment opportunity among rural poor people.

Some of these programmes and schemes are in the following ways: Small Farmer

Development Agency (SFDA); Training Rural Youth for Self-employment

(TRYSEM); Integrated Rural Development Programme (IRDP); National Rural

Employment Programme; Development of Women and Children in Rural Areas

(DWCRA); Rural Landless Employment Guarantee Programme (RLEGP); Jawahar

Rojgar Yojana (JRY); Supply of Improved Toolkits to Rural Artisans (SITRA);

Employment Assurance Scheme (EAS); Swarnjayanti Gram Swarojgar Yojana

(SGSY); Jawahar Gram Samridhi Yojana (JGSY); Sampoorna Gramin Rozgar Yojana

(SGRY); National Food For Work Programme (NFFWP); Mahatma Gandhi National

Rural Employment Act (MNREGA) etc.

In this chapter out of these schemes discussed about other developmental

programmes which at present are not in existence and some schemes emerged with

other schemes.

Out of various developmental programmes two schemes have been selected

for study that is Swarnjayanti Gram Swarozgar Yojana (SGSY) which launched in

year 1999 in the Ninth Five Year Plan and Mahatma Gandhi National Rural

Employment Guarantee Act (MNREGA) which launched in year 2006 in the Tenth

Five Year Plan. The general introduction of both these schemes have been discussed

in this chapter which plays an important role in generating self

employment/employment in the rural areas.

The second chapter of the study is "Research Methodology". In this chapter

explained on various research methods which are used to study both the schemes

more descriptively. Moreover the motives behind selecting these two schemes as a

subject for research work are also given.

The third chapter deals with the historical, geographical, educational and

economical condition of Sagar district. This district lies between 23º10' to 24º27'

north latitude and 78º4' to 79º21' east longitudes. The district truly has a central

location in the country with 2.32 percent of the state's total area. The total area of

Sagar district is 10,252 sq.km. and the tropic of cancer passes through the southern

part of the district. The district is bound in the north by Lalitpur district of U.P., in the

south by Narsinghpur and Raisen district of M.P., in the west by Vidisha district and

in the east by Damoh district. In the north-east and north-west the district adjoins

Chhatarpur and Guna district of M.P. This district is situated in south-east of Malwa

plateau and from the sea level its normal height is 1160 to 2240 feet and an average

height is 1821.41 feet. Sagar district is covered by Vindhyanchal Mountain chains.

The highest point of the district is 'Naharmau' which lies in Rehli block and its length

is around 683.4 metres.

The dominant feature of the physiography is the five parallel valleys of

Dhasan, Bewas, Sonar, Bina and Bamner rivers. The climate of the district is

generally pleasant and solubrious. The forest of the district belong to the northern

tropical dry deciduous type consisting of teak forest and mixed forests.

Administration of the district is divided into nine tehsil and they are Sagar,

Rehli, Khurai, Banda, Deori, Garhakota, Kesli, Shahgarh and Bina. Further this

district is divided into eleven blocks i.e. Banda, Bina, Deori, Jaisinagr, Malthone,

Kesli, Khurai, Rehli, Rahatgarh, Sagar and Shahgarh. The district has 1868 villages.

According to the 2001 census, district accommodates 20,21,783 persons which is

3.35% of the total population of Madhya Pradesh. The density of Sagar district is 197

and sex ratio is 884 females per thousand males. Out of total population male

population are 10.73,032 and female population is 9,48,751. Rural population are

14,30,421 out of which 7,60,970 males population and 6,69,451 are females

population. Urban population are 5,91,362 out of which males population are

3,12,062 and 2,79,300 females population. Thus most of the Sagar population still

lives in rural areas. Literacy rate in a district is about 63.73 per cent out of which

79.41 per cent are male literacy and 54.35 percent are female literacy.

The district enjoys the direct links with different parts of the state as well as

the country. The district is accessible by rail and is traverses by National Highways

and State Highways which connect it with all important towns like Jabalpur on the

east, Jhansi-Gwalior on the north and Bhopal on the south west.

In Sagar district there is greater dependency of rural population on agriculture

which results population pressure on agriculture very high. Thus rural people are not

able to earn their livelihood from agriculture alone. Moreover, no large scale

industries are there in Sagar district except only few small scale industries like bidi,

oil refinery, agarbatti making etc. Thus government has not taken initiative steps to

introduce large and small industries in this area as a result many rural people are not

getting employment in this area. Therefore most of the rural population migrated to

other cities or engaged in traditional occupation.

Therefore, Sagar district of Madhya Pradesh are facing the problem of

unemployment and poverty, especially in rural areas. Due to this, many programmes

and schemes are started by the Madhya Pradesh Government and Central Government

for the rural development and to generate employment in the rural areas of Madhya

Pradesh including Sagar district. Out of various schemes for rural employment two

schemes have been selected for the study i.e. (i) Swarnajayanti Gram Swarozgar

Yojana (SGSY) and (ii) Mahatma Gandhi National Rural Employment Guaranteed

Act (MNREGA) which are running in the district.

The fourth chapter of the study is Swarnjayanti Gram Swarozgar Yojana and

Mahatma Gandhi National Rural Employment Guarantee Act in Sagar district. This

chapter deals with the progress of SGSY and MNREGA in Sagar district and data

which collected from various government institutions like district panchayat, gram

panchayat of different blocks of Sagar district and from Government website i.e.

www.nrega.nic.in for analysing these schemes in details. Under SGSY, the

individuals and self help groups are financed by nationalised banks. Visited different

banks of Sagar district to collect information related to this scheme. In this chapter

both the schemes i.e. SGSY, and MNREGA, have been analysed in details.

I. The first part of the study is SGSY which divided into three categories -

(a) Primary sector which includes rearing of buffaloes, cow; rearing of goats; poultry

form; pisciculture; small irrigation etc.

(b) Secondary sector which includes making candles, agarbattis; making bricks;

handicrafts work, food materials etc.

(c) Territary sector which includes general stores, bicycle/motor repairing and

binding; shop of carpenters, mason, iron smith etc.

The total number of self-help groups are formed and benefitted by SGSY are

720 and the loans distributed among them are Rs.20,61,15,246. Out of this 523 SHGs

are formed and benefitted in Primary sector; 140 SHGs are formed and benefitted in

secondary sector; and in territary sector only 57 SHGs are formed and benefitted, in

the eleven blocks of Sagar district from year 2003 to 2008.

(a) In primary sector under this scheme maximum number of SHGs are formed

and benefitted by rearing of buffaloes, cows, i.e., 228; 162 SHGs are formed and

benefitted by small irrigation; 90 SHGs are formed and benefitted by rearing of goats;

26 SHGs are formed and benefitted by other works like bullockcart, well

maintenance, fertilizer selling; agriculture products etc. 14 SHGs are formed and

benefitted by horticulture and negligible SHGs are formed and benefitted by

pisciculture and poultry farm in eleven blocks of Sagar district.

In this sector maximum number of SHGs are formed in Sagar block i.e. 98

SHGs and the loans distributed among them are Rs.2,88,21,840 and the minimum

number of SHGs are formed in Malthone block i.e. only 11 SHGs and the loans

distributed among them are Rs.64,85,000.

Therefore in primary sector total loans distributed among 523 SHGs are

Rs.171647246. In this scheme primary sector is only sector which is successful

among Self-Help Groups and maximum number of SHGs are formed and benefitted.

(b) In secondary sector 140 SHGs are formed and benefitted by various works and

the loans distributed among them are Rs.25561000. The maximum number of SHGs

are formed and benefitted by making of bricks i.e. 63 SHGs; 30 SHGs are formed and

benefitted by other works like dal/daliya production; cement production; steel-iron

furniture industry; rope manufacturing etc; 29 SHGs are formed and benefitted by

food materials; 16 SHGs are formed and benefitted by small plantation and only 2

SHGs are benefitted by handicraft work.

In secondary sector maximum number of Self Help Groups are formed in

Shahgarh block i.e. 26 SHGs and loans distributed among these groups are

Rs.55,75,000 and the minimum number of Self Help Groups i.e. 3 are formed in Bina

block and loans distributed among these 3 SHGs are Rs.7,00,000.

In this scheme, secondary sector is 50 percent successful among self-help

group in Sagar district.

(c) In territary sector total number of SHGs i.e. 57 only are formed in eleven

blocks of Sagar district, and the loans distributed among these SHGs are Rs.8907000

for various works under this scheme.

In territary sector out of 57 SHGs maximum number of SHGs i.e. 41 are

formed and benefitted by other works like garment shop, shoes shop, tent house, band

party etc.; 10 SHGs are formed and benefitted by general stores and negligible

groups are formed and benefitted by motor repairing and binding shop; shop of

carpenter, mason, iron smith etc. in the eleven blocks of Sagar district.

In this sector maximum number of SHGs are formed in Sagar block i.e., 20

SHGs and loans distributed among them are Rs.2165000 and minimum number of

SHGs are formed in Rahatgarh block i.e., only 2 SHGs and loans distributed among

these two groups are Rs.448000.

Therefore, territary sector in this scheme is not successful among self help

group. Here it has been suggested that the rural unemployed youths especially

educated, should come forward and take the opportunity of this scheme.

The total number of individuals benefitted by this scheme are 1584 and the

loans distributed among them for various work are Rs.5,74,54,206. By this scheme

maximum number of individuals are benefitted in primary sector i.e., 1448; 38

individuals are benefitted in secondary sector and 98 individuals are benefitted in

territary sector in the eleven blocks of Sagar district under this scheme.

(a) In primary sector 1448 individuals are benefitted and loans distributed among

them are Rs.5,36,17,314. The maximum number of individuals i.e., 219 individuals

are benefitted by rearing of cows, buffaloes; 94 individuals are benefitted by rearing

of goats; 69 individuals are benefitted by other works like bullock carts, maintenance

of wells, selling fertilizer, etc.; and negligible individual are benefitted by

horticulture and pisciculture.

In this sector, maximum number of individuals are benefitted in Rehli block

i.e., 345 individuals and loans distributed among them are Rs.11159174. The

minimum number of individuals are benefitted in Khurai block and loans distributed

among them are Rs.27,03,600.

Therefore, maximum number of individuals are benefitted in primary sector.

This is only sector, which is successful in Sagar district among individuals.

(b) In secondary sector only 38 individuals are benefitted by this scheme and total

loans distributed among these individuals are Rs.10,60,000. The maximum number of

individuals i.e., 30 are benefitted by bricks making; 03 individuals are benefitted by

other works like production of dal/daliya, steel-iron furniture industry, cement

production, rope manufacturing etc. and only 02 individuals are benefitted by candles

making. But no work has been allotted under food materials and small plantation

among individual in the eleven blocks of Sagar district under SGSY from year 2003

to 2008.

In this sector maximum number of individuals are benefitted in Rehli block

i.e. 28 and the minimum number of individuals are benefitted in Banda block i.e.,

only 1 under this scheme.

Thus, in this scheme secondary sector is not successful in Sagar district

because minimum number of individuals are benefitted in this sector by various work.

(c) In territary sector 98 individuals are benefitted by various work and the loans

distributed among them are Rs.27,76,892. Maximum number of individuals i.e., 54

are benefitted by general store; 30 individuals are benefitted by other works like

garments shop, shoes shop, tent house, tea stall, etc.; 11 individuals are benefitted by

carpenter, mason, iron smith shop etc. work and only 3 individuals are benefitted by

shop of motor repairing and binding etc. in Sagar district from year 2003 to 2008.

In this sector maximum number of individuals i.e., 23 are benefitted in Sagar

block and minimum individuals i.e., one is benefitted in Malthone block under this

scheme.

Therefore territary sector under this scheme is also not successful in Sagar

district among individuals also.

Under Swarnjayanti Gram Swarozgar Yojna maximum number of individuals

and self help groups are formed and benefitted by primary sector and minimum

individuals and self help groups are formed and benefitted by territary sector. The

factor behind this, is the unawareness of rural masses about the programme planned

for them. It has also been observed that there is need for proper publicity of the

developmental programmes among rural masses, so that rural people especially

youths may come up and take the opportunities to employed themselves.

II. The second part of my study is MNREGA. The plan of the study is, first I

have dealt with the total number of works and expenditure done in Sagar district

under MNREGA from year 2007-08 to 2010-11.

In Sagar district total number of works allotted under MNREGA are 11339.

Out of 11339 works, only 113 works have been completed and 11226 works are still

in progress till 04.04.11. The total expenditure done on these 11339 works are

Rs.47,11,70,967 out of which labour expenditure done Rs.24,34,18,906 and

expenditure done on materials are Rs.22,77,52,061.

In Sagar district maximum 1582 works are allotted in Rehli block, out of

which only 1 work has been completed so far and 1581 works are still in progress.

The total expenditure done in Rehli block are Rs.853.87 lakhs out of which,

expenditure done on labours are Rs.397.65 lakhs and on materials are Rs.456.21

lakhs. The minimum 600 works are allotted in Bina block. Out of 600 works in Bina

block not a single work have been completed and same number of works are still in

progress. The total expenditure done on these 600 works are Rs.285.26 lakhs, out of

which expenditure done on labours are Rs.167.86 lakhs and on materials Rs.117.39

lakhs in Bina block. In the district only 113 works have been completed till

04.04.11 in the eleven blocks under this scheme from year 2007-08 to 2010-11. The

maximum number of works completed in Sagar block i.e., 79; 14 works completed in

Malthone block; 8 works completed in Deori block; 6 and 4 works completed in

Khurai and Kesli blocks. It is point to be noted that in Rahatgarh and Rehli block

where only one work have been completed in the last 4 years. It is astonishingly to

know that there are 4 blocks i.e. Banda, Bina, Jaisinagar and Shahgarh where not a

single work have been completed in the last four years in the district under

MNREGA. There is also point to be noted that the statistical information are also not

available to know how much amount have been invested to complete 113 works in

Sagar district under this scheme.

Then I have dealt the same above things that is total number of works and

expenditures done, in blocks wise under this scheme.

Further in this chapter I have found that in Sagar district average labourers i.e.,

1667 were employed per day and average materials used by per labourers are

Rs.93.57 per day. It was shocked to know that out of 760 gram panchayat in Sagar

district only 1667 average labourers got employed per day and very little materials

was used by these labourers per day, though large investment was done by the

government in this district during the same period.

The same things which stated above that is an average employment generated

per day and an average materials expenditure per worker per day in the eleven blocks

of Sagar district are also found in this chapter.

Thus, from the above analysis it can be concluded that this scheme is not

working well in Sagar district. The reason is that in Sagar district during the last four

years 11339 works were allotted but only 113 works had completed and rest of the

works are still in progress. This mean that even less than 1 percent of the total works

allotted are completed and 99 percent of the works i.e., 11226 are still in progress,

though huge investment was done on various works in the eleven blocks of Sagar

district but there is no outcome from it. Thus, this scheme is not successful in Sagar

district.

The fourth chapter also includes the survey and analysis of primary data

collected through schedules/questionnaire of both the schemes i.e., SGSY and

MNREGA.

In Swarnjayanti Gram Swarozgar Yojna (SGSY) I have taken 10% of the total

beneficiaries, as already mentioned in my methodology, that means in self help

groups, under SGSY, out of 720 SHGs I have surveyed 72 SHGs and out of the total

1584 individual under this scheme, 158 individuals are surveyed.

In MNREGA out of 367152 job card holders, 550 labourers are randomly

surveyed who are having their job cards under this scheme in the eleven blocks of

Sagar district.

In this chapter some case studies are also given to know the ground level

realities as well as to access the factual situation of the beneficiaries/labourers of these

two scheme i.e., SGSY and MNREGA.

1. Survey and analysis of self help groups and individuals under Swarnjayanti

Gram Swarozgar Yojana.

Firstly I have dealt with self help groups in my survey. Under this 72 groups

are surveyed and these are distributed in three categories i.e.

i) Primary sector

ii) Secondary sector, and

iii) Territary sector

(i) Primary sector under SGSY includes rearing of goats, poultry farm, pisciculture

etc. In this sector 52 self help groups surveyed in this scheme in the eleven blocks of

Sagar district. Out of 52 self help groups, maximum number of groups I have surveyed

from Sagar block i.e., 10 and minimum number of SHGs that is only 2, that is from

Malthone and Khurai block. Thus, I found that the rate of success in primary sector

among SHGs is 60 percent in all the blocks of Sagar district and most of the beneficiaries

of the groups are satisfied by this scheme.

(ii) Secondary sector includes candles making; bricks making; handicraft works;

small plantation etc. In this sector, I have surveyed 14 SHGs in all the blocks of Sagar

district.

The rate of success in secondary sector is 75% in Sagar district under this

scheme.

(iii) Territary sector under SGSY includes general stores; shop of bicycle/motor

repairing and binding; shop of mason, carpenters, ironsmith etc. In this sector I have

surveyed 6 SHGs in Sagar district.

The rate of success of this sector among self-help groups are 83% in all the

blocks of Sagar district under SGSY. Therefore, Swarnjayanti Gram Swarozgar

Yojana is working successfully in all the blocks of Sagar district.

Secondly, I have dealt with individuals in my survey under this scheme 158

individuals are surveyed from eleven blocks of Sagar district. These 158 surveyed

individuals are distributed into three sectors-

(i) Primary sector;

(ii) Secondary sector; and

(iii) Territary sector

(i) Primary Sector under this scheme includes rearing of buffaloes, cows; rearing

of goats; poultry farm; pisciculture etc. In this sector, 144 individuals are surveyed in

Sagar district under this scheme. Thus, the rate of success in this sector is 75 percent

in all the blocks of Sagar district under SGSY.

(ii) Secondary sector includes candles making; bricks making; handcraft works;

small plantation etc. In this sector 4 individuals are surveyed under SGSY, in Sagar

district. Thus, I found that the rate of success in secondary sector is 50 percent in all

the eleven blocks of Sagar district.

iii) Territary sector includes General Store; Bicycle/Motor repairing and binding

shop; shop of mason, carpenter, ironsmith etc.

In territary sector 10 individuals are surveyed in a district under this scheme

and found that the rate of success in territary sector is 75% in all the blocks of Sagar

district under this scheme.

So finally it can be concluded that Swarnjayanti Gram Swarozgar Yojana among

individuals is working successfully especially in primary and territary sectors as

compared to secondary sector. In secondary sector minimum number of beneficiaries

are benefitted by various works in this sector.

II. Survey and analysis of MNREGA in Sagar district

Under MNREGA 550 labourers are surveyed, who having their job cards and

analysed the number of working days allotted to labourers in Sagar district.

In Sagar district, 550 labourers were surveyed and found that out of 550

labourers, 213 labourers i.e. 39 percent got employment in the first group i.e. 0-20

days; 173 labourers i.e. 31 percent got employment in the second group i.e. 20-40

days; 88 labourers i.e. 16 percent got employment in the third group i.e. 40-60 days;

42 labourers i.e. 8 percent got employment in the fourth group ie, 60-80 days and 34

labourers i.e. only 6 percent got employment in the fifth group i.e. 80-100 days, under

this scheme.

Thus in Sagar district under MNREGA we found that 86 percent of the total

550 labourers got employment in the first three groups i.e. 0-60 days and only 14

percent labourers got employment in the last two groups i.e. 60-100 days.

Further in this chapter I have analysed the number of working days allotted to

labourers by blockwise under this scheme in Sagar district.

Therefore, MNREGA in Sagar district is not successful. Though there are

many loopholes in this schemes and the employment generation in the rural areas is

poor. The pocketing of money by sarpanch, secretary, administrative officers and

even local politicians is clearly visible.

The fifth chapter deals with problems and suggestions of both the schemes.

Finally conclusion of the present study has been presented in this chapter only.

There is no denying the fact that SGSY and MNREGA is conceptually a very

important national programmes. Both the schemes are not free from corruption,

pilferage of funds, very low utilization of loans/budgeted provision etc. Thus, SGSY

is more or less successful in Sagar district but MNREGA has not succeeded in creating

sufficient productive assets for strengthening rural infrastructure in a district. This scheme,

therefore, failed to impact on the poor rural households in the district.

Thus, Government's Rural Development Programme is not able to uplift the

financial status of the people of these areas. Perhaps these programmes are not

properly administered to benefit the poors. Therefore, apart from planning and

making investments efforts should be made to create awareness among the villagers

that it is not the sole responsibility of the government for their upliftment. They, too

are expected to come forward and involve themselves in the process of development

in the respective areas.

If my views are included in these schemes, in my opinion both the schemes

will be more intensive and comprehensive, which will fulfill the motive of

government for launching these schemes for the rural and needy people of the nation

as well as initiate the rural backward people for mainstreaming them.

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