Schemes for Capacity Building and Employment in Rural Areas



Rashtriya Gram Swaraj Yojana (RGSY)

The Rashtriya Gram Swaraj Yojana is a Centrally Sponsored Scheme being implemented by the Ministry ofPanchayati Raj with the objective of assisting efforts of the State Governments for training and capacity building of elected representatives of Panchayati Raj Institutions.  Funding of the scheme is applicable only for the non-BRGF districts.  The scheme focuses primarily on providing financial assistance to the States/UTs for Training & Capacity Building of elected representatives (ERs) and functionaries of Panchayati Raj Institutions (PRIs). Assistance is provided for Distance Learning infrastructure for the ERs and Functionaries of the PRIs including Satellite based training infrastructure. In respect of Hill States and States in the North Eastern Region, assistance is also given for capital expenditure on establishment ofPanchayat Resource Centres/ Panchayat Bhawans at Block/Gram Panchayat levels. The scheme has a small component of Infrastructure Development under which the construction and renovation of Panchayat Ghars in all the States is funded. The scheme is demand driven in nature and provides for funding on 75:25 sharing basis between the Central and State Governments concerned. Assistance under the Training component is also given to Non-Governmental Organizations (NGOs), where the central assistance may be 100% and such proposals are required to be forwarded with the recommendations of the State Government concerned.

Rural Business Hub (RBH)

Rural Business Hub is aimed to eradicate rural poverty and create employment opportunity in rural India. This initiative would give a fillip to village enterprises that add value to economic activities in rural areas.

There is a steady influx of rural people to urban areas in search of employment and economic opportunity.  Also, there is a wide gap between rural and urban areas in terms of public services like health and education, in the quality of life and levels of income.  This gap is perceived to be widening.  The 73rd Constitutional Amendment, 1992, has mandatedPanchayats as Institutions of Self Government, to plan and implement programmes of economic development and social justice.  Government of India has recognized that Panchayati Raj is the medium to transform rural India 700 million opportunities.  There is also a felt need to ensure that the benefits of rapid economic growth, unleashed through the reforms of the last two decades, need to flow to all sections of society, particularly to rural India.

The Ministry of Panchayati Raj has adopted the goal of “Haat to Hypermarket” as the overarching objective of the Rural Business Hubs (RBH), initiative aimed at moving from more livelihood support to promoting rural prosperity, increasing rural non-farm incomes and augmenting rural employment.  RBHs set up in association with Panchayati Raj Institutions (PRIs) could thus constitute the fulcrum of “inclusive growth” – the theme of the 11th Plan.

Panchayat Mahila Evam Yuva Shakti Abhiyan (PMEYSA)

In order to address the empowerment of EWRs and EYRs in a systematic, programmatic manner, the Ministry ofPanchayati Raj, Govt. of India, has launched a new scheme with the approval of the competent authority in the 11th Five Year Plan.  The objective of PMEYSA is to knit the EWRs in a network and through group action, empower themselves, so that both their participation and representation on local governance issues, improves.  PMEYSA aims at a sustained campaign to build the confidence and capacity of EWRs, so that they get over the institutional, societal and political constraints that prevent them from active participation in rural local self governments.

It is a Central Sector Scheme.  The entire amount is funded by the Ministry of Panchayati Raj for organizing the various activities under this scheme.  Fund is released to the State Panchayati Raj Department in two equal installments in the ratio of 50:50.  The balance amount (second installment of 50%) is released only on furnishing of (1) Utilization certificate in respect of funds released and (2) Audited Statement of account on the expenditure (item-wise) incurred by the State Government/SSC.

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