E-Notes of the course – AEX 201 (1+1) Fundamentals of extension education

and rural development

Degree: B.Sc.(Agri)
Class : II year
Semester: II
Course no.: AEX 201

Course title: Fundamentals of extension education and rural development

Credit hours: 1+1

Course teachers:
Dr.N.Narasimha,Prof.Agril. Extension
Dr.N.S.Shivalinge Gowda, Prof.Agril. Extension
Dr.M.T.Laxminarayana, Asst.Prof. Agril. Extension

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 Contents
Particulars Page no.
1 Education – Meaning, Definition, Types (Formal, Informal and Non- 3
formal education) and their characteristics
2 Extension Education and Agricultural Education – Meaning, Definition, 4
Concepts, Objectives and Principles
3 Rural Development- Meaning, Definition, Concepts, Objectives, Importance 7
and Problems in Rural Development

4 Development programmes of Pre-Independence Era – Sriniketan, 10

Marathandam, Gurgaon Experiment and Gandhian Constructive Programmes

5 Development programmes of Post-Independence Era – Firka Development, 13

Etawah Pilot Project and Nilokeri Experiment

6 Community Development Programme – Meaning, Definition, Concepts, 16

Philosophy, Principles, Objectives, Difference between Community
Development and Extension Education, and National Extension Service
7 Panchayat Raj System (PRS) – Meaning of Democratic decentralization and 21
Panchayat Raj, Three Tiers of PRS , Powers, Functions and Organizational
set-up

8 Agricultural Development Programmes 26

9 Social justice and Poverty alleviation programmes 39
10 New Trends in Extension 44

11 Reorganized Extension System 48

12 Entrepreneurship Development 56

13 Overview of Indian social, political and economic systems and their 59

implications for decision making by individual entrepreneurs

14 Importance of Planning, Monitoring, Evaluation Follow up and Managing 61

Competition
15 Entrepreneurship Development Programmes (EDPs) , SWOT Analysis & 65
Generation, Incubation and Commercialization of Business Ideas and
Innovations
16 Government schemes and incentives for promotion of Entrepreneurship and 70
Government policy on Small and Medium Enterprises

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 Unit 1 : Education – Meaning, Definition, Types (Formal, Informal and Non-
formal education) and their characteristics

Education is the production of desirable changes in knowledge (things known), attitude

(things felt) and skills (things done), either in all (or) one or more of human behavior. In
education, emphasis is usually placed on changes in knowledge and skills, more or less
neglecting the aspect of changing attitudes. Education is an integral part of extension. The basic
concept of extension is that it is education.

Types of Education: According to Coombs and Ahmed (1974) there are 3 types of education:

1. Formal Education – Is highly institutionalized, chronologically graded and hierarchically

structured, education starting from primary school and reaching upto university education.
2. Informal Education – Is the life long process by which every person acquires knowledge,
skills, attitudes and insights from daily experiences and exposure to the environment at
home, at work, at play etc.
3. Non-formal Education – Is an organized, systematic educational activity carried on outside
the frame work of the formal system to provide selected types of learning to particular
sub-groups in the population, including adults and children. E.g.: Adult education, vocational
education, functional literacy, continuing education, extension education etc.

The following are the differences between Formal and Extension/Non formal Education

Sl. Formal Education Extension Education/ Non- formal

N education
o
1. Teaching is largely confined to the It is largely outside the four walls of the
premises of the institution institution.
2. Learners are homogeneous with Learners are heterogeneous and have
common goals diverse goals.
3. There is a fixed curriculum, students No fixed curriculum, it is flexible
are examined and degrees are depending on the needs of the
awarded. learners. No examinations are

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 conducted and no degrees are
awarded.
4. Knowledge flows from teacher to the The extension worker also learns from
learners (Vertical). The teacher those who he teaches (Horizontal). He
only instructs the students teaches through local leaders.
5. Approach is from theory to Approach is from practical’s to theory.
practical’s
6. Strict adherence to institutional Freedom and choice of subject matter left
norms and no free choice for to the learners.
learners

Unit 2 : Extension Education and Agricultural Education – Meaning,

Definition, Concepts, Objectives and Principles

Extension – Meaning :
The word ‘extension’ is derived from the Latin roots, ‘ex’ – meaning ‘out’ and ‘tensio’ meaning
‘stretching’. Stretching out is the meaning of extension. The actual use of the term of extension
originated in 1866 with a system of University extension, which was taken up first by Cambridge
and Oxford Universities and later by other educational Universities in England and other
countries.

The term extension education was first used in 1873 by Cambridge University to describe
this particular education innovation. The objective of University extension was to take the
educational advantage of Universities to ordinary people where they live and worked. A branch
of university for student who cannot attend the university proper . Extension signifies an out
–of-system of education.

According to Ensminger (1957), extension is education and that its purpose is to change
attitudes and practices of the people with whom the work is done.

Need of Extension: The need for extension arises out of the fact that the condition of the rural
people in general, and the farm people in particular, has got to be improved. There is a gap
between what is – the actual situation and what ought to be- the desirable situation. This gap has

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to be narrowed down mainly by the application of science and technology in their enterprises and
bringing appropriate changes in their behavior.

Extension Education : :According to Paul leagens “ Extension education is an applied social

science consisting of contents derived from research and accumulated field experiences and
relevant principles drawn from the behavioral sciences synthesized with useful technology into a
body of philosophy, principles, content and methods focused on the problems of out of school
education.

Agricultural Extension: Agricultural extension is an educational process in agriculture and

home economics. This education is practical and aimed at improving farm and home practices.

Objectives/Functions of Extension: The major objectives of extension are - (1) to assist people
to discover and analyze their problems, their felt and unfelt needs, (2) to develop leadership
among people and help them in organizing groups to solve their problems, (3) to disseminate
information based on research and /or practical experience, in such a manner that the people
would accept it and put it into actual practice, (4) to keep the research workers informed of the
peoples' problems from time to time, so that they may offer solutions based on necessary
research and (5) to assist people in mobilizing and utilizing the resources which they have and
which they need from outside.

Principles of Extension: Principles are guidelines which form the basis for decision and action
in a consistent way. The universal truth in extension which have been observed and found to
hold good under varying conditions and circumstances are presented.
1. Principle of cultural difference : There is cultural difference between the extension agents
and the farmers. Differences also exist between groups of farmers. The differences may be
in their habits, customs, values, attitudes and way of life. Extension work to be successful
must be carried out in harmony with the cultural pattern of the people.
2. Grass roots principle: Extension programmes should start with local groups, local situations
and local problems. It must fit to the local conditions. Extension work should start with
where people are and what they have. Change should start from the existing situations.
3. Principle of indigenous knowledge: People everywhere have indigenous knowledge
systems. which they have developed through generations of work experience and problem
solving in their own specific situations. The indigenous knowledge systems encompass all
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 aspects of life and people consider it essential for their survival. Instead of ignoring the
indigenous knowledge systems as outdated, the extension agent should try to understand
them and their ramifications in the life of the people, before proceeding to recommend
something new to them.
4. Principle of interests and needs: People’s needs are the starting points of extension work.
To identify the real needs and interests of the people are challenging tasks. The extension
agents should not pass on their own needs and interests as those of the people. Extension
work shall be successful only when it is based on the interests and needs of the people them.
5. Principle of learning by doing : Learning remains far from perfect, unless people get
involved in actually doing the work. Learning by doing is most effective in changing
people’s behavior. This develops confidence as it involves maximum number of sensory
organs. People should learn what to do, why to do, how to do, and with what result.
6. Principle of participation : The village community should willingly cooperate and
participate in identifying the problems, planning of projects for solving the problems and
implementing the projects in getting the desired results. It has been the experience of many
countries that people become dynamic if they take decisions concerning their own affairs,
exercise responsibility for, and are helped to carry out projects in their own areas. The
participation of the people is of fundamental importance for the success of an extension
programme. People must share in developing and implementing the programme and feel that
it is their own programme.
7. Family principle: Family is the primary unit of society. The target for extension work
should, therefore, be the family. That is, developing the family as a whole, economically and
socially. Not only the farmers, the farm women and farm youth are also to be involved in
extension programmes.
8. Principle of leadership: Identifying different types of leaders and working through them is
essential in extension. Local leaders are the custodians of local thought and action the
involvement of local leaders and legitimization by them are essential for the success of a
programme. The leaders may be trained and developed to act as carries of change in the
villages.
9. Principle of adaptability: Extension work and extension teaching methods must be flexible
and adapted to suit the local conditions. This is necessary because the people, their situation,
their resources and constraints vary from place to place and time to time.

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10. Principle of satisfaction: The end product of extension work should produce satisfying
results for the people. Satisfying results reinforce learning and motivate people to seek
further improvement.
11. Principle of evaluation: There should be a continuous built-in method of finding out the
extent to which the results obtained are in agreement with the objectives fixed earlier.
Evaluation should indicate the gaps and steps to be taken for further improvement.

Unit 3 : Rural Development- Meaning, Definition, Concepts, Objectives,

Importance and Problems in Rural Development

Rural : Is an area, where the people are engaged in primary industry in the sense that they
produce things directly in cooperation with nature as stated by Srivastava (1961). According to
the United States Census, rural includes all the people living outside the urban area and who live
on farm. Rural is differentiated from urban in terms of geographical location, spatial distribution
of households based on kingship, family ties and close interaction between individuals and
families. The occupation centers around agriculture.

Development : It denotes growth or maturation. It implies a gradual consequence of change.

Mac Ivers uses the word ‘Development’ to signify an upward course in a process that is of
increasing differentiation. In other words, development is improvement over the existing
condition.

Rural Development – Meaning/Definition: According to Agarwal, Rural development is a

strategy designed to improve the social and economic life of people in rural settlements. It
focuses on rural poor, comprising of small farmers, marginal farmers, tenants and landless.

According to Lakshmanan, Narayanan and Kiran – Rural development involves the

development of both natural and human resources and this has to be within a defined area and
that is village based area.

Rural development is viewed as a process of raising the capacity of the rural people to
control over their environment. Environment does not mean only agriculture or economic
development. It includes aspects of rural life – social, economic, cultural and political. It is a
process continuously raises the capacity of the rural people to influence their total environment,
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enabling them to become initiators and controllers of change in their environment rather than
being merely the passive objectives of external manipulation and control. It must results in a
wider distribution of benefits accruing from technical developments and the participation of
weaker sections of the rural population in the process of development.

Scope and Importance of Rural Development :

Rural development is a national necessity and has considerable importance in India because
of the following reasons.

1. About three-fourth of India's population live in rural areas,

2. Nearly half of the country's national income is derived from agriculture,
3. Around seventy per cent of Indian population get employment through agriculture,
4. Bulk of raw materials for industries come from agriculture and rural sector,
5. Growing disparity between the urban elite and the rural poor can lead to political instability.

Objectives of Rural development :

The objectives of rural development, according to the World Bank are not restricted to
any single department but spread over several, and the resultant mix serves to raise agricultural
output, create new employment, improve health and education, expand communications, provide
housing etc. The overall objective of rural development includes :

1. To increase the availability and improve the distribution of life sustaining goods, such as
food, clothes, shelter, health and security
2. To raise per capita purchasing power and improve its distribution by providing better
education, productive and remunerative jobs and cultural amenities.
3. To achieve enhanced production and productivity of agriculture and allied crops.
4. To develop broad based community participation in the process of development.
5. To bring about a greater socio-economic equity

Problems of Rural development

The major rural development problems are detailed below :

1. Centralized planning of rural development programmes without understanding local
conditions, resources, needs, capabilities and socio-cultural milieu of the rural people

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 2. Inefficiency and delay in implementation of varied programmes led to wastages of scare
resources.
3. Non-involvement and lack of awareness among rural people regarding rural development
programmes
4. Inability of poor farmers and agricultural laborers to contact individually many agencies
(crop insurance agency, input dealers, banks, hiring of farm equipments, marketing etc.)
for different requirements Inadequately trained grass root field extension functionaries
5. Overemphasis on material physical development (road, school building, community hall,
toilets etc) and less emphasis on educating and motivating rural people in facilitating
technical and managerial skill to increase production.
6. Lack of family welfare programmes and involvement of women in the rural development
programmes
7. Non-adoption of improved technologies resulting in low productivity in agriculture and
allied sectors.
8. New agricultural technologies have helped rich and big farmers only
9. Subdivision and fragmentation of agricultural holding
10. Lack of coordination among different departments in implementation of rural
development rural development projects
11. Poor follow up of rural development programmes/projects.
12. Unrealistic target of the rural development programmes/projects.

Unit 4 : Development programmes of Pre-Independence Era – Sriniketan,

Marathandam, Gurgaon Experiment and Gandhian Constructive
Programmes
Long before the introduction of the Government managed extension system at the national
level in 1952, there had been sporadic attempts in developing the rural life. Knowledge of the
early extension efforts shall serve as a useful background in understanding the development of
extension systems in India. When these experiments were conducted there existed certain
conditions like, agriculture was the primary occupation to a large percentage of population,
extremely low purchasing power, lack of application of science and technologies, lack of
understanding about the natural resources, especially the flora and fauna of the region and their
commercial usage, lack of socio-economic organizations, etc. These realities are to be
remembered before understanding the past rural development works. When these experiment
were conducted, colonial rule was existing. These programmes and experiments were conducted at
different points of time, in different regions, and under different politico-socio-economic conditions.

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They varied in area, population coverage, financial and other resources. They were designed according
to the policy makers perception of problems and needs of people. Therefore, common evaluation is not
possible and each experiment / programme/extension effort is to be studied independently for its
approach, performance, effectiveness against the stated objectives, etc.

1. Sriniketan Project (1914) :

Shri Rabindra Nath Tagore wanted to develop a centre to extend his ideas on education in
a rural setting. During 1914, he established a rural reconstruction institute at Sriniketan involving
youth from a group of 8 villages. It maintained a demonstration farm, a dairy and poultry unit,
an outdoor clinic, a department of cottage industries and a village school. These agencies were
to treat the villages as their laboratory to identify problems and test their ideas. The villages
were expected to approach these agencies through the village workers to obtain solution of their
more pressing problems. The social workers lived and worked in the villages.

At Sriniketan centre, agriculture, dairy and poultry were the foremost activities. Scheme
of land development and tree plantation were given due importance. Experiment on paddy,
sugarcane and cotton were undertaken. Improved seeds, vegetable seedlings, fruit grafts and
saplings were distributed. New breeds of cattle were introduced. Local artisans were trained in
cottage industries. Other activities in this project included were : village scout movement,
village developmental council, health, cooperatives, circulating library and village fairs.

Drawbacks
• This institute could not get Government help and support.
• It could not do research work and hence the programmes remained limited to those
8 villages only.

2. Gurgaon Project (1920) :

Towards the end of 1920 F.L.Brayne, an Englishman, was posted as Deputy

Commissioner of Gurgaon district. After his assumption of the charge, he studied the area by
touring and observed that the people were extremely poor, dirty and unhealthy, with no
conscious desire for any better because they had no idea that anything better was possible. After

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seven years of study he developed a scheme called "The Gurgaon scheme" with the following
objectives:

• To jerk the villagers out of their old groove and convince them that improvement is
possible;
• To bring economic development and discourage unhealthy customs and teach better
ways of living and farming.

He took the whole district as the field of operation and approached the area with every
form of propaganda and publicity. Under this programme village guides were posted in each
village, who acted as the channel to pass on the information to villagers. The programme
introduced distribution of improved seeds and implements, and dissemination of improved
methods of cultivation.

The activities introduced by F.L.Brayne were:

• A school of rural economy to train the village guides

• A domestic school of economy to train groups of women under women and children
welfare work
• Health association, which ran five health centres in the district.
• A women's Institute at Gurgaon to manage the ladies' garden in Gurgaon.

Drawback of Gurgaon Project :

As the village guides were not technical sound very little could be achieved from this
project.

3. Marthandam Project (1921) :

Marthandam project was started at Travancore in Kerala during 1921 by Dr. Spencer
Hatch, an American agricultural expert specialized in sociology. The fundamental aim of this
programme was to bring about a complete upward development towards a more abundant life for
rural people, spiritually, mentally, physically, economically and socially.

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 It was set up under the auspices of YMCA (Young Men’s Christian Association).From
the demonstration centre at Marthandam, about 100 villages were covered through YMCA centre
in villages. It had demonstration farm for improving grain and vegetable seeds, promotion of bee
keeping and developed equipment for honey industry, developed better livestock and conducted
literacy classes. Some local industries like weaving, poultry and bee keeping were started on
co-operative and self help basis.

Marthandam claims its principal gains in the field of changing the outlook of the rural
people ie., enthusing them , inculcating in them a design to improve and creating in them a spirit
of cooperation and self-respect.

4. Gandhian Constructive programme :

Gandhi’s dream of an independent India included an emancipated village life ‘self
contained’ and ‘self sufficient’. People know Gandhiji not only as Mahatma, or a political
agitator, but also as a social and economic reformer. He mentioned that “If village perishes India
will perish too”. He emphasized that, the ‘Salvation of India lies in Cottage Industries’. The key
words of his economy are (1) Decentralized production and equal distribution of wealth , (2) self
sufficiency of Indian villages, and (3) service to the underprivileged.
He wanted to eradicate the class of middlemen exploiters so that the farmers could get the
full price for his produce and he wanted that the tiller/farmer should be able to consume his own
products like fruits, milk, vegetables etc.
For the emancipation of villages, he formulated 18 point programme, which included the
promotion of village industries, basic and adult education, rural sanitation, upliftment of
backward tribes, uplift of women, education in public and hygiene, propagation of national
language, love for the mother tongue, economic equality, organization of Kissans, labour and
students etc.,
The important institutions which were organized to foster his ideas, were: All India
Spinners Associations, All-India Village Industries Associations, Khadi Vidhyalaya at
Sewagram etc. The Gandhian constructive programme was a movement of the people, by the
people and for the people.
Sevagram experiment was started by Mahatma Gandhi in 1933. The major activities
included: organization of training centres for cottage industries, preaching and practicing
communal harmony, prohibition, and removal of untouchability and stressed on women’s
education.
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 Unit 5 :Development programmes of Post-Independence Era – Firka
Development, Etawah Pilot Project and Nilokeri Experiment

1. Firka Development (1946 - 1950) :

The Chief Minister Sri.T.Prakasam initiated the Firka development scheme in Madras
State in 1946 in 34 Firkas throughout the State. On 1st April 1950, it was extended to another 50
additional Firkas. It was a scheme of rural reconstruction and derived its inspiration from the
ideals of Mahatma Gandhi.
The short term objective of the scheme was to develop basic amenities and institutional
framework, particularly carrying out of communication, water supply and sanitation projects and
formation of Panchayats and Co-operatives. The long term objective was to attain
self-sufficiency in matters of basic needs like food, clothing, shelter etc., through the
development of agriculture, animal husbandry, khadi and cottage industries.

2. Etawah Pilot Project (1948) :

This project was started in 1948 by Mr. Albert Mayer of USA who came to India as a
warrior at a village called Mahewa in Uttar Pradesh. A pilot project for development of Etawah
district in UP was formulated by him with the following objectives.

1. To know the degree of productive and social improvements, through self confidence and
cooperatives;
2. To find how quickly these results could be attained;
3. To know whether the results remain permanent even after the special pressure is
withdrawn; and
4. To assess how far the results were reproductive in other places.

In the project, development officers at various levels were posted. At village level, there
was a ‘multi-purpose' village level worker (VLW) with four or five villages under him. The
entire project was sponsored and funded by the Government of Uttar Pradesh.

This programme works were, by and large, similar to earlier projects; which includes:
introduction of improved variety seeds, chemical fertilizers, improved implements and plant
protection measures, improved cultural practices, horticultural development, soil conservation,
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animal husbandry, cooperation, credit provision, marketing and supply, improvements of roads,
water supply and drainage. Programme on adult literacy , tour for farmers, village leader
training camps, mass contact programs, etc. were also included in the projects

The project total expenditure was 1.54 million rupees. Of this total expenditure, only 1.3
per cent was on grants-in-aid and subsidy. It also did not distribute materials of any kind at free
of cost to the people. The emphasis was self-help. Technical advice alone was free.

Initially the work was started in 64 villages. After one year, the number of villages
covered by the project went up to 97. In 1951, another 125 villages were included. Finally this
project was merged with the National Extension Service (NES) block.

The most convincing achievement of this project was in agriculture, particularly in wheat
production due to adoption of improved production technologies. This project solved the
problem of unemployment and under-employments. There was 53.3 per cent expenditure on
capital works, which resulted in making available of good roads, and other infrastructures.
Success gained in Etawah could not be maintained after Mayer's departure in 1957.

3. Nilokheri Project (1948) :

It started during 1948 under the leadership of S.K.Dey. Nilokheri was another pioneering
attempt which drew country wide attention and influenced the community development directly. Its
primary purpose was to develop a new township to rehabilitate displaced persons from West Pakistan.
The project was built in swampy barren land by refugees utilizing government fund through self help.
It is located around the vocational training centre on the highway of Delhi and Ambala.

Nilokheri township was designed to rehabilitate about 7000 displaced persons from Pakistan
after partition. The scheme was called 'Mazdoor Manzil' because it was based on the principle of
‘he who would not work, neither shall he eat’. The objective was to attain self sufficiency in the
essential requirements for the township and the surrounding villages. A dairy, poultry, piggery,
printing press, engineering workshop, tannery, bone meal factory, all run on cooperative line. To
man these cooperative enterprises, people were trained in the vocation of their choice.

Weakness/Demerits of Pre and Post Independence era Rural Development programmes :

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 The projects had one or the other shortcomings which may be summed up as follows:

1. Most of the efforts were based on individual initiative inspired by humanitarian grounds
2. All attempts were isolated, uneven and discontinuous and lacked government support
3. Staff were mostly inexperienced and untrained.
4. Plans and programmes were ill-defined, unbalanced and local people were not involved
in planning and implementation of the programmes.
5. Need for proper methods and skills for approach was not realized.
6. No evaluation was carried out, hence the results were not known.
7. Association and coordination between different development departments were very
limited

Unit 6 :Community Development Programme – Meaning, Definition,

Concepts, Philosophy, Principles, Objectives, Difference between Community
Development and Extension Education, and National Extension Service

Community: is a group of people who live in a geographical area and have an interest in each
other for the purpose of making a living.

Development: connotes growth or maturation. It implies gradual and sequential phases of

change. It refers to the upward or increasing differentiation. In other words, development is
improvement over the existing condition.

Community Development: It is a movement designed to promote better living for the

community with the active participation and/or the initiative at the community.

Community development is a method by which people of villages are involved in helping

to improve their economic and social conditions and thereby they become more effective groups
in programmes of their national development.

Community development is a process of change by which people's efforts are united with
those of group authorities to improve their economic, social and cultural conditions of
communities, into the life of the nation and to enable them to contribute fully to national
programmes.

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Genesis of Community Development Programme (CDP - 1952) :

Based on the experiences within the country and abroad, the recommendations of the
Fiscal Commission (1949) and the Grow More Food Enquiry Committee (1952) - the CDP was
launched on October 2, 1952 (the birth-day of Mahatma Gandhi) with 55 Community
Development Projects (CDPs). Each project had an operational area of about 400-500 square
miles, comprising 300 villages and a population of about 2 lakhs. The project area was divided
into 3 development blocks, each consisting of about 100 villages and a population of 60,000 to
70,000. The project was headed by a Project Officer, and ably supported by a number of subject
matter extension officers in the discipline of agriculture, animal husbandry, industries,
cooperation, education, rural engineering etc. Each project had about 60 multipurpose Village
level workers (VLWs). One VLW was looking after 5 to 10 villages.

Philosophy of Community Development Programme (CDP):

The basic philosophy of Community Development Programme are :

1. Community development
2. Development of family
3. Individual development
4. Awareness of the responsilibilities and self motivation among the people
5. Development of cooperativeness among the people
6. To create confidence towards science and technology
7. Development of rural leadership
8. Development of rural institutions
9. Development of other resources for community development (Health, water supply,
power etc.)

Principles of Community Development Programme :

The major principles of Community Development are :

1. Activities undertaken must correspond to the basic needs of the community. Projects
should be initiated to response to the expressed needs of the people
2. Local improvements may be achieved through unrelated efforts in each substantive field,
however, full and balanced community development requires concerted action and the
establishment of multipurpose organizations

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 3. Changed attitudes of people are as important as the material achievements of community
projects during the initial stages of development
4. Community development aims at increased and better participation of the people in
community affairs, revitalization of existing forms of local government and transition
towards effective local administration where it is not yet functioning
5. The identification, encouragement and training of local leadership should be a basic
objective of the programme
6. Greater reliance on the participation of women and youth in community projects
7. To be fully effective, self-help projects for communities requires both intensive and
extensive assistances by the Government
8. Implementation of community development programme on a national scale requires
adoption of consistent policies, specific administrative arrangements, recruitment and
training of personnel, mobilization of local and national resources and organisation of
research, experimentation and evaluation.
9. The resources of Non-Government Organizations (NGOs) should be fully utilized in
Community development programmes at the local, national and international level
10. Economic and social progress at the local level necessitates parallel development on a
wider national scale.

Objectives of Community Development Programme :

The Fundamental objective of Community Development in India is the development of

people to "Destination Man".

Specific objectives of the Community Development Programme are:

1. To increase the agricultural production

2. To bring community and integrated development
3. The extension of new scientific knowledge
4. Development of small and medium irrigation projects
5. Development of cooperative organizations (Panchayats, banks, schools etc.)
6. Construction of roads
7. Development and construction of primary health care centre and public health service
8. To inspire youth for the development

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 9. Increased importance for primary and adult education
10. Facility for entertainment and improving housing facilities

The response of the villagers to the CDP was tremendous, hence Government of India
decided to expand the coverage of the programme to other parts of the country. Limited
resources, however, did not permit a rapid expansion of the Community Development Projects,
with somewhat less intensive approach than CD project, a programme named as National
Extension Service (NES) was started on October 2nd, 1953.

National Extension Service (NES)- 1953 :

National Extension Service was implemented from October 2nd, 1953. This was
implemented in the areas which were not covered by Community Development (CD)
Programme, so that entire country would get the benefit of development. When compared to
Community development programme, the NES was less intensive in character. Since
Community development programme and NES had the same basic ideas, they were integrated
both at the Centre and State with effect from April 1958. There was no distinction between CD
blocks and NES. Both CDP and NES are complementary, interwoven and run concurrently. Each
NES block covers 100 villages with 65,000 population. Each block is headed by Block
Development Officer (BDO) who is in turn assisted by Extension officer and 10 Multipurpose
Village Extension Workers. The complete coverage of NES blocks was achieved by October
1963. NES covered almost all the villages in the country.

Objectives of NES :

1. To change the outlook of village people

2. To make people participate effectively in development programmes
3. To develop village leaders accepted by all, and
4. To increase the employment and production in agriculture and other sectors

Drawbacks /Demerits of Community Development Programme /National Extension

Service:
1. Inadequate emphasis on development of agriculture, cottage and small scale industries
2. Lack of understanding of the objectives of Community development programme

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 3. The community development workers at all levels felt unhappy, their morale was not
very high
4. Lack of proper and adequate supervision and guidance, both administrative and technical
at various levels.
5. The programme was largely a government administered programme without people’s
participation, and could not become a people’s programme
6. There was too much emphasis on end-results and less emphasis on following the correct
methods and processes to bring about changes in attitude of the people.

Similarities and Differences between Community Development and Extension Education :

Community development is regarded as a programme for all round development of rural

people. Extension education is regarded as the means to achieve this objective.

Similarities between Community development and Extension Education :

Both the Community Development Programme and Extension Education are :
1. Basically an educational process
2. Designed to extend knowledge to rural people
3. Aimed at brining about changes
4. To improve socio-economic development
5. Tackling the problem at people’s level
6. Recognizes that people need help if they are to help themselves
Differences between Community development and Extension education :

Sl. No. Extension Education Community Development

1. Emphasis on ‘individual’ Emphasis on ‘cooperation’

2. Education aimed at ‘individual’ to Education aimed at ‘groups of

obtain socio-economic improvement individuals ‘to work collectively to
obtain socio-economic improvement
3. Has its main theme ‘individual needs’ Has its main theme the ‘community
needs’
4. Emphasis on ‘decision making for Emphasis on ‘decision making for
change ‘by individual and family change’ by groups and representatives
of groups

Unit 7 : Panchayat Raj System (PRS) – Meaning of Democratic

decentralization and Panchayat Raj, Three Tiers of PRS , Powers, Functions
and Organizational set-up

19
 The realization that peoples' participation is crucial for successful implementation of
programmes like Community Development and National Extension Service, was brought to
sharp focus through the report of the team for the study of Community Projects and National
Extension Service by Balvantray G.Mehta (1957). The Committee observed that one of the least
successful aspects of Community development and National Extension Service works is its
attempt to evoke popular initiative and recommended DEMOCRATIC DECENTRALISATION.

Democratic Decentralization
The word 'democracy' is derived from the Greek word 'demos' means 'the people'; 'cratos'
means 'rule /authority'. It is the 'rule /authority of the people'. It is governance of the people, by
the people and for the people. The rule by majority is an important feature of this programme.

Decentralization means ‘devolution of central authority among local units close to the
areas served’. Where authority devolves by this process on people's institution, it is 'democratic
decentralization'. This is popularly called as ‘Panchayat Raj’ in India.

On the broad suggestions of the team of Balvantray G.Mehta, the State of Rajasthan was
the first to launch Panchayat Raj in the country on 2nd October 1959, followed by Andhra
Pradesh during November 1959 and Maharastra on 1st May 1962. Subsequently most of the
country was covered with Panchayat Raj Institutions.

Meaning - Panchayat Raj

The word Panchayat is apparently derived from the word ‘Panchayat’, meaning five.
Thus, Panchayat implies a council of five. In traditional system, Panchayat refers to ‘an
assembly of elders who used to settle the disputes and problems according to local custom, in a
village or within a caste’. In was static and traditional, where nobody thought of questioning
their authority.

The concept 'democratic decentralization' was not easily understood by the people.
Therefore, as decided by the then Prime Minister the three-tier administration set up was
introduced in the name of "Panchayat Raj System’ in India.

Panchayati Raj in the present form is a constitutional body, democratically elected and
decentralized unit of rural self-government. Based on the 73 rd Amendment of Constitution,

20
Panchayati Raj was established to enable participation of people, particularly weaker section of
the society in the decision making process and it is a local self-management. It is a people’s
institution and generally has a three-tier structure at the district {District Development Council
(Zilla Parishad)}, block/taluk {Panchayat Samithi /Taluk Panchayat/ Panchayat Union)} and
village (Gram/Village Panchayat) levels. Panchayat Raj Institutions ensures greater participation
of people and more effective implementation of rural development programmes.

At present, there are about 3 million elected representatives at all levels of the panchayat
These members represent more than 2.4 lakh Gram Panchayats, about 6,000 intermediate level
tiers (taluk panchayat) and more than 500 district parishads spread over the length and breadth of
the country. The panchayats cover about 96 per cent of India's (more than 6.12 lakh villages) and
nearly 99.6 per cent of rural population. This is the largest experiment in decentralisation of
governance in the history of humanity

Three tiers of Panchayat Raj

1. The Gram/Village Panchayat :

The first formal democratic institution under the directive principle in the Indian
constitution is the Gram/village Panchayat. This is the first tier of Panchayat Raj system and is
the primary unit of local self-government. Grama/ VillagePanchayat is a cabinet of the village
elders, directly elected by the adult citizens of the village. It is a elected body serving a village
or a group of villages.

Gram Panchayats are constituted considering their income, population and area. The
income of gram panchayat varies from mere Rs.500/- per annum to more than Rs.2.00 lakhs per
annum. The population varies from 500 to 25,000. The panchayat membership varies from 5 to
25. Each elected members represents 400 villagers. There is provision for reservation of seats for
women (33.33%), SC (15%) and STs (3%). The panchayat has a tenure of five years and is
directly elected from wards, while the Sarpanch is elected by the members.. There is Gram Sabha
(it is a village assembly to address and solve the village problems and all the registered voters of
the village are members for grama sabha) for each Panchayat and the Sarpanch is required to
convene gram sabha meeting at least once in 6 months. It has income through taxes to perform
its functions. The main functions of gram/village panchayats are:

21
 • Representative function, where the main role is to voice and represent the opinion;

• Regulatory and administrative functions, which consists of regulating the conduct of

individuals and institutions and also collection of taxes;

• Service or developmental function, such as promotion of agriculture, horticulture,

sericulture, animal husbandry, dairy, poultry, social forestry, rural housing, public
health and family welfare, women and child development, poverty alleviation
programmes and khadi village and cottage industries, and developing rural
infrastructure (roads, drains, school buildings, bridges and culverts ) etc.,

2. The Panchayat Samithi/ Panchayat Union/Taluk Panchayat (TP) :

This is the second tier of the administration at Block/taluk level. TP is expected to play a
coordinating role among Gram/village panchayats in its jurisdiction and the Zilla Parishad in
planning and administration. It is an elected body which includes MLAs/MLCs/MPs of the taluk
and also 1/3 rd of the chairmen of Gram Panchayat in the taluk as associate members on rotation
for a period of one year. Each elected member represents 10,000 population of part thereof. The
chairperson of the TP is elected by and from among the elected members. Reservation are given
for women, SCs and STs and persons with experience in administration and public life. The TP
is responsible for development of villages within its jurisdiction.

Block Development Officer is appointed by the Government. He functions as the leader

of the Block assisted by extension officers. The main functions of Panchayat Samithi /Taluk
Panchayat/ Panchayat Union are:

• to instill among people within its jurisdiction a spirit of self-help and to initiate work for
raising the standard of living;

• to support in the execution/implementation of development programmes;

• it has the welfare and development activities in the fields of agriculture, animal
husbandry, health, sanitation, elementary education, cottage industries etc.

• utilizes the village housing project funds and loans for developmental purposes

22
 • looks after the administration of Taluk panchayats

• it approving the budget of Village panchayats

3. District Development Council (Zila Parishad) :

The Zilla parishad (ZP) is the third tier of Panchayati Raj and its functions is at district
level and has the responsibility to promote development of villages in the district. The ZP is an
elected body and each elected member represents 30000 to 40,000 population The ZP includes
MLAs/MPs/MLCs of the district and also the chairmen of the Taluk Panchayats in the district as
its associate members. The SC, ST and women are given reservation in the ZP. District
Collector leads the work with the help of District Development Officers.

The major functions of District Development Council/Zilla Parishad includes:

• It works as advisory body for blocks/taluks.

• It approves the plan and budget of blocks/taluk panchayats

• It allots funds to the blocks/panchayats

• Secondary education is the responsibility of this council.

• It will advise Government in all matters relating to rural development in the district.

• It reviews the results achieved under various items in all the blocks.

Sources of Income for Panchayat Raj Institutions

The sources of income for Panchayat Raj Institutions is from (a) Government grants,
(b) local taxes on property and profession or trade, (c) surcharges or cesses on land revenue,
water rates, etc. (d) income from fees for local services, and rent or income from owned land
and property. On the whole most of the Institutions have meager incomes from taxes and other
local resources. They are mostly depending upon the Government grants

Salient Features of Panchayat Raj

Achievements -

23
 1. Panchayat raj system gave significant progress in the fields of primary and secondary
education, communication, agricultural extension, cooperation, health, etc.

2. People could get drinking water. In some places people had protected water supply.

3. Village streets, electric light provision, village sanitation, etc., had enough resources.

4. Rural awakening was brought up among rural people, as a result villagers became
conscious of their rights and improved their standard of living.

Shortcomings and failure of Panchayat Raj System -

1. Panchayat raj representative had a feeling that there is a dilution of their authorities and
responsibilities in actual functioning.

2. There were cases which utilized directly the services of block level technical staff
without involving the non-official.

3. Frequent transfer of staff gave poor image to the bodies.

4. Failure to mobilize resources to the extent necessary.

The Central Government under the Chairmanship of Sri Ashok Mehta in 1978 appointed
a review to rectify weakness of Panchayat system. The committee presented a report and
recommended to implement the Mandal system and suggested to make small administrative unit
instead of larger unit in Taluka (consists of 100 villages). After the 1960 experiment with
democratic decentralization across the country, Karnataka became the first State to adopt
two-tier system - Zilla Parishads and Mandal Panchayats (small administrative unit of 100
villages) during the year 1987 . Based on the 73rd Amendment of Constitution and Karnataka
Panchayat Raj Act, 1993, a 3 tier Panchayat system was again reintroduced in Karnataka with
elected bodies at all levels to make our PRI institution effective as units of local self
Government.

Unit 8 : Agricultural Development Programmes

A) Intensive Agricultural District Programme (IADP) (1960)

24
 In order to stop the import of food grains and to make the country self-sufficient, IADP
was adopted for higher agricultural production and for creating marketable surplus. The
Intensive Agricultural District Programme (IADP) was launched in the country during 1960.

This programme was popularly known as a "package programme". This name was given
because of the collective and simultaneous application or adoption of all technologies/practices
such as: improved seeds, irrigation, fertilizer, plant protection, use of improved farm implements
etc.

This programme was started during July 1960 in seven selected districts during the first
phase in various states. The districts covered were : (i) West Godavari in Andhra Pradesh, (ii)
Sahabad in Bihar, (iii) Thanjavur in Tamil Nadu, (iv) Raipur in Madhya Pradesh, (v) Ludhiana in
Punjab; (vi) Pali in Rajasthan; and (vii) Aligarh in Uttar Pradesh. IADP was implemented in 21
districts during the second phase. The criteria for selection of districts for the programme were :

a) Districts with high potentiality for increasing the yield at short time ie., with assured
irrigation facilities and minimum natural hazards
b) Districts with well developed Panchayats and Co-operatives

Special features of IADP -

a) to provide factors of production simultaneously, timely and adequately
b) essential inputs like seeds, fertilizers, plant protection chemicals, etc. to be made
available at adequate quantity and on time
c) credit to be provided to any farmer who joins the programme and has the potential to
get increased yield
d) more agricultural and cooperative staff to be posted
e) periodical training to staff
f) analysis and evaluation of the programme

Objectives of IADP

a) to achieve rapid increase in the level of agriculture production through a concentration of

financial, technical, extension and administrative resources;

25
 b) to achieve a self-generating breakthrough in productivity and to raise the production
potential by stimulating the human and physical process of change; and

c) to demonstrate the most effective ways of increasing production and thus, to provide
lessons for extending such intensified agricultural production programmes to other areas.

Achievements of IADP

a) IADP created a new dynamism in the farming community, greatly enhanced the use of
technical inputs and also contributed to the growth of marketing and storage facilities as
well as supporting services.
b) Technical assistance was given to farmers in preparing production plans
c) The cultivators were provided simultaneously with all supplies and services at right time
and in adequate quantities through cooperatives
d) Credit was given to all who had their production plans and participated in the
programme
e) Marketing and storage facilities were developed with in bullock cart distance
f) Covered all the important cash crops grown in the districts and emphasis was laid on the
increase in food production.

Short comings of IADP

a) Educational approach to reach farmers was lacking.

b) Poor training to staff

c) Staff were not clear about the methods to reach the cultivators

d) Posting of staff was not adequate and timely

e) Seed testing, soil testing and workshops were not functioning to the required level

f) Transport and land development programmes were not satisfactory

B) High Yielding Varieties Programmes (HYVP) (1966)

The severe drought in 1965-66 resulted in steep decline in production of food grains. The
Government of India (GOI) had to resort to import of cereals in much larger quantities than usual
during the last several years. Fortunately, agricultural scientists in the world had been successful
in evolving new varieties of seeds of some cereals, particularly in wheat, rice and maize.
Through Dr. Norman Borloug, the country imported a number of high yielding wheat varieties
26
from Mexico for experimentation. While, high yielding rice varieties were made available from
International Rice Research Institute, The Philippines and Indian agricultural scientists evolved
high yielding strains of maize, millets and sorghum.

HYVP was launched in 1965-66 with an objective/promote increasing cultivation of high

yielding varieties (HYVs) which helped the country in attaining self-sufficiency in food
recorded higher yields. The technological development did not remain confined to the
introduction of high yielding crop varieties alone. These were combined with the application of
balanced fertilizers, irrigation, plant protection, farm implements etc. which made a ‘green
revolution’ possible in the country . The pervasive influence of high yielding technology spread
to other areas of farm production such as animal production, fishery, sericulture, social forestry
etc.

Punjab, Haryana and Western parts of Uttar Pradesh were initially selected for the phased
launching of this strategy. The cultivation of High yield variety since 1966-67 had resulted in a
substantial increase in food grains production. Wheat production was doubled. Rice production
also had a substantial increase, though not as much as in the case of wheat. The target of
coverage of 2.5 crore hectares of area under High yielding varieties of cereals and millets under
fourth five year plan was exceeded. The coverage was more than four crore hectares.

However, the success were confined to irrigated areas and better off farmers. The
regional imbalance and disparity were glaring.

C) Institutional Village Linkage Programme (IVLP) for Technology Assessment and

Refinement (TAR)
The IVLP was initiated on a pilot basis in 1995. It was implemented in 42 centres of
selected Indian Council of Agricultural Research (ICAR) institutes and State Agricultural
Universities.
The salient feature of IVLP programme is that it is an innovative program developed by
the Indian Council of Agricultural Research (ICAR) to help scientists to have direct interaction
with the farming community so that appropriate technologies are developed for farmers. Here
research, extension and farmers establish firm links by carrying together the assessment and
refinement functions in the technology development and dissemination process. This helps the
research system to generate a cafeteria of technologies, which are more productive in small
27
production system, more profitable in commercial production system and gender sensitive for
removal of drudgery of farmwomen. Research and Extension are the integral part of Technology
Development (IVLP).

Farmers Need assessment and Research and

problem identification Research findings

Refined Technology assessment and

Technology
technologies refinement

The major objectives of IVLP as per ICAR guidelines are as follows:

1. To introduce technological intervention with emphasis on stability and sustainability
along with productivity of small production systems.
2. To introduce and integrate the appropriate technologies to sustain technological
interventions and their integration to maintain productivity and profitability taking
environmental issues into consideration in a comparatively well defined production
system.
3. To introduce and integrate the appropriate technologies to increase the agricultural
productivity with marketable surplus in commercial on and off-farm production systems.
4. To facilitate adoption of appropriate post-harvest technologies for conservation and on
farm value addition to agricultural products, by-products and waste for greater economic
dividend and national priorities.
5. To facilitate adoption of appropriate technologies for removal of drudgery, increase
efficiency and higher income of farm women.
6. To monitor socio-economic impact of the technological intervention for different farm
production system.

D) Watershed Development Programme (WDP)

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 Watershed is defined as the drainage basin or catchment area of a particular
stream or river. A watershed is a geo-hydrological unit which drains into a common point by a
system of streams. The watershed approach is a project based ‘ridge and valley approach’ for
insitu soil and water conservation. It is a land area that captures and conveys the over flow and
runoff to an outlet in the main flow channel. The size of the watershed may vary from a few
square meters to thousands of square kilometers. However, the sphere of ‘one watershed project’
is considered to be 500 ha land area.
The components of the watershed development programmes includes: (1) Human resource
development (2) Soil and land management, (3) water management, (4) afforestation, (5) pasture
development, (6) agriculture development, (7) live stock management, and (8) rural energy
management.

Objectives of Watershed development programme :

• Developing wastelands /degraded lands, drought prone and desert areas on watershed basis
keeping in view the land capability, site conditions and local needs.
• Promoting overall economic development and improvement of the socio-economic
conditions of the resource poor sections inhabiting watershed areas.
• Mitigating the adverse effects of extreme climatic conditions such as drought and
desertification on crops, human and livestock population for their overall improvement.
• Resorting ecological balance by harnessing, conserving and developing natural resources ie.,
land, water and vegetation cover.
• Encouraging village community for; (a) sustained community action for the operation and
maintenance of assets created, (b) simple, easy and affordable technological solutions, and (c)
employment and development of human and other economic resources of the villages.

The Department of Land Resources in the Ministry of Rural Development is

administering three area-based watershed programmes for development of wastelands/degraded
lands namely, Drought Prone Areas Programmes (DPAP), Desert Development Programme
(DDP) and Integrated Wastelands Development Programme (IWDP) to check the diminishing
productivity of wasteland and loss of natural resources.

The DPAP was launched in 1973-74 to tackle the special problems faced by those areas
that are constantly affected by drought conditions. Presently, 972 blocks of 195 districts in 16
29
States are covered under the Programme. DDP was launched in 1977-78 to mitigate the adverse
effects of desertification. Presently, 235 blocks of 40 districts in 7 States are covered under the
Programme. IWDP has been under implementation since 1989-90. The projects under the IWDP
are generally sanctioned in areas that are not covered under DDP or DPAP.

Watershed projects are implemented by District Rural Development Agencies/Zilla

Parishads (DRDAs/ZPs) through Project Implementing Agencies (PIAs). PIAs could be a Line
Department (of the State Government), Panchayati Raj Institutions or a reputed NGO. One
Project Implementation Agency (Could be Line department of the State Government) handles
10-12 watershed projects covering an area of about 5000-6000 hectares. The PIA is required to
maintain a technical team of 4 experts called Watershed Development Team (WDT) . Individual
projects (500 hectares) are planned and executed by the local people living in the watershed area
called the Watershed Association (WA) through an elected body called Watershed Committee
(WC).

The Department of Land Resources has brought out a new initiative called ‘Hariyali’
with an objective of empowering PRIs both financially and administratively in implementation
of Watershed Development Programmes. Under the Haiyali, all ongoing area development
programmes namely, Integrated Wastelands Development Programme (IWDP), Drought Prone
Areas Programme (DPAP) and Desert Development Programme (DDP) are to be implemented
through the PRIs. New projects under the aforesaid area development programmes are being
implemented in accordance with the guidelines for Hariyali from 1 April 2003. Projects
sanctioned prior to this date shall continue to be implemented as per the Watershed Development
Guidelines of 2001.

In the new arrangement (Hariyali), Gram Panchayats shall implement projects under
overall supervision and guidance of Project Implementation Agencies (PIAs). In case, these
Panchayats are not adequately empowered, then the Zilla Panchayat can either act as PIA itself
or may appoint a suitable Line Department like Agriculture, Forestry /Social Forestry, Soil
Conservation, etc., or an Agency of the State Government/ University/Institute as PIA. Failing
these options, the ZP/DRDA may consider appointing a reputed Non-Government Organization
(NGO) in the district with adequate experience and expertise in the implementation of watershed
30
projects or related area development works as the PIA after thoroughly examining their
credentials.

The Project Implementing Agency (PIA) will provide necessary technical guidance to the
Gram Panchayat for preparation of development plans for the watershed through Participatory
Rural Appraisal (PRA) exercise, undertake community organisation and training for the village
communities, supervise watershed development activities, inspect and authenticate project
accounts.

Other major programmes now being implemented through this approach are the National
Watershed Development Project in Rainfed Areas (NWDPRA) and the Watershed Development
in Shifting Cultivation Area (WDSCA) of the Ministry of Agriculture.

E) National Agricultural Technology Project (NATP)

The National Agricultural Technology Project (NATP) is a dynamic instrument of

introducing major changes in the Agricultural Research and Extension systems of the country,
besides developing their capabilities to meet future challenges. The project was initiated by
Ministry of Agriculture, Govt. of India with the financial assistance of World Bank and would be
implemented with the assistance of National Institute of Agriculture Extension Management
(MANAGE) in 28 districts covering 7 states, viz. Andhra Pradesh, Bihar, Jharkhand, Himachal
Pradesh, Maharashtra, Orissa and Punjab over a period of 5 years (1998-2003).

The World Bank assisted National Agricultural Technology Project (NATP) aims at
improving Research and Extension services.

The Research component of NATP is being implemented by the Indian Council of

Agricultural Research (ICAR) and the Extension component by the Department of Agriculture
and Co-operation. The different Project Implementing Agencies (PIAs) involved in
implementation of the Innovations in Technology Dissemination (ITD) component of NATP
are: (1) Directorate of Extension of SAUs, (2) National Institute of Agricultural Extension
Management (MANAGE), (2) NATP cell at State Headquarters, (3) State Agricultural

31
Management Extension Training Institute (SAMETI), and (4) Agricultural Technology
Management Agency (ATMA) at District level.

The Extension component termed as "Innovations in Technology Dissemination

(ITD)” envisages an integrated extension delivery at district level and is being pilot tested in
seven participating states, viz. Andhra Pradesh, Bihar, Jharkhand, Himachal Pradesh,
Maharashtra, Orissa and Punjab. The ITD component has been planned, which aims at
developing a transfer of technology (TOT) system that is demand driven, well integrated with
research and financially sustainable and accountable to stake holders of agricultural
development.

The purpose of the ITD component is to test new approaches to : (a) technology transfer,
(b) new organizational arrangements, and (c) operational procedures. One of the goal is to
decentralize decision making to the district level through the creation of Agricultural Technology
Management Agency (ATMA) as a registered society.

Objectives of NATP:

• Increase the quality and type of technologies disseminated through

- Location specific technology development

- Diversification and intensification of farming systems

- Use of sustainability enhancing technologies

• Enable research and extension systems to become demand driven and responsible for
solving problems of farmers

• Strengthen Research-Extension-Farmers (R-E-F) linkages

• Increase financial accountability of the system

32
 • Shared ownership of Agricultural Technology System (ATS) by key stake holders ie.,
farmers especially poor, women and disadvantaged, public sector research and extension
agencies like ICAR, SAUs, Department of Agriculture etc.

To operationalise NATP, it proposes the following interventions: (1) Agriculture

Technology Management Agency (ATMA), Agriculture Technology Information Centre
(ATIC), Remandating selected Zonal Research Stations and Strengthening Zonal Co-ordination
Units (ZCUs) and Directorate of Extension (DoEs) of State Agricultural Universities.

F) Agriculture Technology Management Agency (ATMA)

A Centrally Sponsored Scheme to provide support to State Extension Reforms was

launched by ICAR during 1999. Under the Innovation Technology Dissemination (ITD)
component of NATP, ATMA was implemented in the country. Initially, ATMA was
implemented on a pilot basis in four districts of each of the states of Andhra Pradesh, Bihar,
Himachal Pradesh, Jharkhand, Maharashtra, Orissa and Punjab. ATMA was launched under the
guidance of National Institute of Agriculture Extension Management (MANAGE), Hyderabad.
On the basis of the evaluation report of Indian Institute of Management, Lucknow revealed that
ATMA’s extension approaches have been proving to be promising in execution of the reforms
and thus extended to other states of the country.

ATMA programme was launched in Karnataka during 2005-05 in districts namely, Bidar,
Gulabarga, Koppal, Bijapur, Hassan, Shimoga, Chamarajanagar and Kolar (undivided). During
the year 2006-2007 ATMA programme was spread to Belgaum, Chitradurga, Chickamagalur and
Kodagu districts. After 2007-2008, the remaining districts have been included under ATMA in
the state.

ATMA is a registered society of key stakeholders (farmers, line/development

departments, non government organizations, input dealers, mass media, agri-business companies,
farmers organizations, etc.) involved in agriculture activities for sustainable agricultural
development in the district. It provides flexible working environment and establishes effective
integration of all the stakeholders at the district level.

33
Cafeteria of activities under ATMA includes;

a. Farmers oriented activities : {(a)Developing Strategic and Extension Plan, (b) Organizing
trainings, demonstrations and exposure visits etc.)}
b. Farm information dissemination : {(a) Organizing exhibitions, campaigns etc., (b)
Information dissemination through printed leaflets/folders/bulletins etc, (c) Local
advertisements etc)}

c. Research-Extension-Farmers linkage :{(a) Farmers scientists interaction, (b) Organising

kissan gostis and field days, (c) Assessment, refinement and validation of front line
technologies through Research centres/Krishi vignana kendras etc.,)}

d. Innovative activities :{(a) Conducting farm schools, (b) Post graduate Diploma in
Agriculture Extension Management, (c) Setting up of community radio station etc.)}

e. Administrative expenses.

Objectives of ATMA

a. To strengthen Research-Extension-Farmers linkages

b. To provide an effective mechanism for co-ordination and management of activities of
different agencies involved in technology adoption/validation and dissemination at district
level

c. To increase the quality and type of technologies being disseminated

d. To move towards shared ownership of the agricultural technology system by key

stakeholders

e. To develop new partnership with the private institutions including non-government

organizations.

f. Technology dissemination through farmers groups

34
g. Increase agricultural production, productivity and income of farmers through intensification
and diversification of agriculture production.

Specific features of ATMA are :

• Demand driven farmer-based activities

• Public private partnership for extension services

• Development of village level institutions like farmers associations, farmer’s interest

groups or commodity interest groups.

• Creation of rural infrastructure and marketing

• Decentralized decision-making and bottom up approach

• Integrated farming system approach

• Market led addition

• Formation and strengthening of farmers’ interest group

• In-service training to increase staff competence.

35
Strategic Research and Extension Plan (SREP)
Strategic planning in brief is ‘what is intended to be achieved in future’ and ‘how to get
there’. Every district has to prepare the SREP for implementing ATMA in respective districts.
The SREP is prepared through participatory methodologies such as Participatory Appraisal
Techniques involving all the stake holders and farmers. The SREP contains detailed analysis of
all the information on existing farming systems in the district and research-extension gaps
required to be filled up. It also prioritizes the research-extension strategies within the district. It
becomes the basis for development work plans at block/district level.

State Extension Working Plan

It is an annual plan based on Strategic Research and Extension Plan. It contains general
and specific information about ATMA. It identifies the Extension and Research gaps and
develops strategies to fulfill the Research and Extension gaps. It contains cafeteria of activities to
be implemented each year.

Advantages of ATMA:

36
 • ATMA is more effective in technology dissemination as it encourages location-specific
solutions keeping all the resources of the farmers in mind
• ATMA seeks greater linkage with research and extension. ZRS must be more active in
generating location specific and users friendly technologies.
• Involvement of women in both ATMA Governing body and Management Committee
would bring about women empowerment.
• Non –government organizations can a play a major role in educating farmers and also
helps in formation of farmers organizations
• ATMA has a effective feedback mechanism which help in better policy planning of the
extension activities
• The project director of ATMA could play a vita role in the coordination of the activities
of sister departments in the district. He/she is the key person to ensure an integrated
approach of technology generation, dissemination and utilization.
G) Agriculture Technology Information Centre (ATIC)

ATIC has been conceived and put into practice since 1998-1999 under National
Agricultural Technology Project (NATP) sponsored by World Bank and implemented through
40 ICAR institutes and State Agricultural Universities (SAUs) located in various parts of the
country.

The rationale behind establishment of ATIC has been :

a) Providing diagnostic services for soil testing, plant and livestock health
b) Supplying research products such as seeds and other planting material, poultry
strains, livestock breed, fish seed and processed products etc., emerging from the
institution for testing and adaptation by various clientele
c) Disseminating information through published literature and communication material
as well as audio visual aids, and
d) Providing an opportunity to the institutes/SAUs to have resource generation through
the sale of their technologies.

Objectives of ATIC:

37
 a) To provide a single window delivery system for the products and species available
from an institution to the farmers and other interested groups as a process of
innovativeness in technology dissemination at the institute level.
b) To facilitate delivery access to the farmers to the institutional resource available in
terms of technology, advice, products etc., for reducing dissemination losses
c) To provide mechanism for feedback from the users to the institute.
d) To offer consultancy services to the different stake holders

It is expected that if ATIC works with its full vigor and mandated objective there will be
no doubt that farmers of India will be able to accomplish their covered goal and produce more
with quality and with reduced cost and will be competitive partner in the agriculture market in
the context of World Trade Organization and Globalization of agriculture. Not only ATIC will
help farmers to use modern technology for demand driven agriculture but also helps in
developing viable, responsible and sustainable agriculture with linkages among research,
extension and farmers’ system.

Unit 9 : Social justice and Poverty alleviation programmes

A) Integrated Tribal Development Agency (ITDA)

Tribals are considered as children of nature as their lifestyle is conditioned by their

surrounding ecosystem. Currently there are 31 scheduled tribes with a population of 6 million
in the country. Many tribal groups are facing a threat of extinction. The government of India has
initiated Integrated Tribal Development Agency during 1971-71 with 6 pilot development
projects. ITDA has the overall responsibility of bringing about the development of the tribals of
the area by utilizing its own funds, funds from the external agencies, and funds available with
other departments of the Government.

The main objectives of ITDA are: (a) to improve socio-economic development of tribal
communities through income generating schemes coupled with Infrastructure development
programmes, and (b) protection of tribal communities against exploitation.

Special features of ITDA includes : (a) small lift irrigation scheme for 5-10 tribal
farmers (electric pumps/diesel pumps and PVC pipes are provided), (b) deepening of old wells,

38
(c) construction of houses, (d) training in tailoring and brick preparation, (e) training on
preparation of vermicompost and mushroom, (f) training on scientific extraction and marketing
of medicinal plants to women, (g) distribution of cross bred cows, sheep and goats, (h) supply of
tailoring machines, (e) educational literacy programmes, and (f) financial support (subsidy to an
extent of 70%). So far, 194 ITDAs have been delineated in the country. The ITDAs are headed
by Project Officers designated as Project Administrators or Project Directors.

B) Integrated Rural Development Programme (IRDP)

Many development programmes were introduced for the benefit of rural people before
and after independence viz., IADP (Intensive Agriculture Development Programme), HYVP
(High Yielding Variety Programme), SFDA (Small Farmers’ Development Agency), MFALA
(Marginal Farmers and Agricultural Laborer Agency) , TRYSEM (Training of Rural Youth for
Self-Employment), CDP (Community Development Programme) etc.. But these programmes had
many lacunae like : (a) restriction to small and same areas, (b) same target groups were
benefitted, (c) no single programme for entire country, (d) unsatisfactory administration, (e)
population explosion etc. besides these problems, it was felt that in order to deal with rural
poverty in India, a far more ambitious programme was required . Consequently, a programme
known as Integrated Rural Development Programme (IRDP) came into existence in 2,300 blocks
of the country during 1978-79 and it was extended to all the blocks of the country from 2 nd
October 1980.

The District Rural Development Agency (DRDA) was set up at the district level to
implement IRDP in the country. It is headed by the District Collector or Chief Executive Officer
of Zilla Parishad. The main functions of DRDA are : (1) to oversee the implementation of
different anti poverty programmes implemented in the district, (2) create awareness among the
rural people about the different anti poverty programmes implemented in the district, (3) submit
periodic report in prescribed format for keeping inform about the progress of implementation of
different projects to Zilla Parishad and State and Central Governments, (4) to strive hard to
promote transparency in the implementation of different anti poverty programmes, (5) to
co-ordinate and oversee the conduct of BPL census, and (6) to carry out action
research/evaluation studies initiated by State and Central Governments.
39
Objectives of the IRDP :

• To provide necessary help to the poor families in the villages to raise them from the
poverty line
• To create substantial additional opportunities of employment in the rural sector

The funds are drawn from Central government (50%) and State Government ( 50%).
Each block gets financial assistance of Rs. 5 lakhs covering 3000 families in every block within
5 years. In every block, 600 families are selected per year. In this programme the needy families
are selected carefully. Among the total selected families, 50% should be SC and ST families,
40% women, 7% general poor families and 3% disabled . The target group under IRDP consists
of small farmers, marginal farmers, agricultural laborers and rural artisans.
The IRDP beneficiaries are assisted through viable projects which are financed partly by
subsidy and partly by bank loans. The capital loss of the assets is subsidized to the extent of 25%
to small farmers, 33.33% to marginal farmers, agricultural labourers, non-agricultural laborers
and rural artisans, and 50% to tribals, SCs and STs.

Short comings/Bottlenecks of IRDP : The demerits of the IRDP includes :

• Increase in income was observed with respect to few families who crossed poverty line
• resources provided were inadequate in majority of the cases
• Large number of over dues due to one reason or the other
• Poor quality of assets provided to the beneficiaries in many cases
• Follow up of the beneficiaries was inadequate
• Lack of training facilities to farmers
• Delay in releasing subsidy
• Bribes taken by various functionaries concerned
• Inadequate supporting facilities or services
• Non-availability of loans for making capital
• Lack of guidance about insurance, and
• Selection of ‘very poor beneficiaries’ were overlooked.
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 C) Swarnjayanti Gram Swarozgar Yojana (SGSY)

In 1997, Prof. S.R.Hashim Committee reviewed the rural development and poverty
alleviation programmes. This committee suggested for making efforts towards from individual
beneficiaries approach to group approach in implementation of self-generation programme and
preference to be given to group activities and cluster approach. As a result, SGSY was launched
in India on 1st April 1999 through incorporating IRDP, TRYSEM, Development of Women and
Children in Rural Areas (DWCRA), Supply of Improved Toolkits to Rural Artisans (SITRA),
Ganga Kalyan Yojana (GKY) and Million Well Scheme (MWS). The beneficiaries of SGSY are
called/known as ‘Swarojgaris’.

SGSY is an extensive programme which includes all the aspects of self employment ie.,

• organization of self help groups (SHGs),

• imparting training and providing technical assistance,
• arranging for loan and marketing facilities.

This project will be financially aided in the ratio of 75:25 by Central and State
Governments. It is a credit and group oriented holistic anti poverty programme. The main
objective of SGSY is to raise poor people from below the poverty line within three years by
providing income generating property with cooperation of government aid and bank loan.

Objectives:

• To assist rural people especially women and youth in self employment by organizing
them into self help groups
• To establish large number of micro enterprises like vermicompost, poultry, mushroom
etc.
• Capacity building (training) and planning of activities
• To provide credit, technical and market supports for the newly formed Self help groups

41
Constraints in implementing SGSY:

• Banks were not enthusiastically participating in the programme due to mounting over
dues from self help groups
• Non participation of stakeholders wholeheartedly in the programme
• Integration of government subsidy programme with bank credit had detrimental effect on
regular banking

D) Prime Minister Employment Yojana (PMEY)

PMEY was implemented in the country on October 2, 1993 and initially it was in
operation in urban areas. From April 1994, it was implemented through out the country. The
objective of PMEY is to provide employment by setting micro enterprises for the educated
unemployed youths.

PMEY was proposed to establish 7,00,000 units in industry, service and trade areas and
to create about 10,00,000 employment opportunity during eighth plan period. During the IX plan
period, the scheme has been confined in the revised form by the government. Under this scheme
every selected educated unemployed youth (18-35 years) and having family income of Rs.
40,000/ is provided loan up to Rs. 1,00,000/ for opening known enterprises. Project involving
more than two partners may be given loan up to Rs. 10,00,000/ under this scheme. About 15% of
the total project cost is given to beneficiary as subsidy, 5% of equity to be invested by
beneficiary and the remaining cost of the project is financed by the banks (80%). The
entrepreneurs of these tiny units are provided adequate training and also given the assistance of
raw materials and marketing. This scheme is being administered by Union Industry Ministry.
SC/ST and other backward classes have been given reservation of 22.5% and 27%, respectively.

Unit 10 : New Trends in Extension

A) Privatization :

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 Privatization of agriculture extension service may be defined as the service rendered in
the area of agriculture and allied sectors by extension personnel working in the private agencies
or organizations for which farmers are expected to pay a fee and it can be viewed as
supplementary and complementary to public extension services. Privatization as a system of
agriculture extension is gradually being adopted in the Indian agriculture because of the
following reasons :

• Declining trend in government expenditure in public extension due to heavy financial

burden
• Disappointing performance of public extension system unable to meet the current needs
of the farmers ie., lack of farmer focus and feedback
• Multiplicity of technology transfer systems
• Demand for specialized knowledge information and assistance from farmers

Characteristics of Private extension:

1. Objectives : Private extension mainly are concerned with getting maximum profit from
the clients through advisory services, so they try to become more efficient and effective
in providing services. Their remuneration is obviously linked with increased income of
the farmers.
2. Target group: Private extension mostly concentrates on big/large farmers, farmers
producing commercially and in favorable environments. They will not be interested in
investing on small , marginal and resource poor farmers as these farmers cannot pay for
private extension fees/charges.
3. Clients: In private extension the clients are more committed and careful about extension
services, because they are paying for the services. Client make best use of the private
extension workers’ time.
4. Offerings: Profit oriented services include not only technology transfer but also supply of
critical inputs. Offerings are based on seasonal needs and convenience of the farmers.
5. Organizations : Private extension personnel become more professionally sound and their
organization will put constant effort to upgrade their knowledge and technical know-how.

43
 6. Funding: Private extension services get more funds from farmers’ contribution and
developmental agencies.
7. Extension service: Private extension serve as Advisory service. Hence extension becomes
purchased input and it generates new income to farmers.
8. Methods: Private consultants mostly adopts personal contact methods , as group approach
will reduce their chances of getting consultancy fees.

Merits of Privatization of Extension:

• Extension generates new income thus extension become economic input.

• Provides demand driven service
• Extension service become more cost effective with efficient and quality service
• Privatization complements and supplements the efforts of public extension
• Private extension increases staff professionalism
• Private extension covers not only provide food crops but also promotes crop
diversification

Problems of Privatization of Extension:

• The consequence of privatization in user’s fee ie., the collection of cost from the farmers.
The feasibility of charging fee for extension service raises a question on the paying
capacity of the farmer.
• In case the message do not yield the desired result ie., projected profit, the service will be
rejected for future
• Privatization does not care for sustainability, instead advocate the exploitation of natural
resources to the maximum extent
• Private extension prefers only the big/large farmers and areas having favorable
environment.
• Private extension is less education oriented but more commercial in nature
• Private extension restricts the flow of information among the fellow farmers
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 • The human resources development role of organizing, motivating and guiding farmers for
empowerment will be sidelined by the private extension service.

B) Women Development Programmes

1. Development of Women and Children in Rural Areas (DWCRA) (1982)

One of the women development programmes implemented in the country is the

Development of Women and Children in Rural Areas ( DWCRA) programme launched during
September 1982. This programme is partly supported by United Nations International Children
Emergency Funds (UNICEF) and is jointly financed by Union and State Governments. It
operates in conjunction with IRDP (Integrated Rural Development Project) and TRYSEM
(Training for Rural Youth in Self Employment).

DWCRA aims (objective) at ‘motivating and assisting women to engage themselves in a

productive activity for earning a substantial income as well as to improve the quality of their own
and children’s life’. Thus, though the economic activity is the priority, the social betterment of
the women and their children is also aimed at.

Main features of this programme -

a. Women of identified poor families are organized into groups of 15-20 each for taking up
income generating activities suited to their skills and aptitude.

b. Group members are given training usually under TRYSEM

c. One time grant of Rs.15, 000 is provided for each group as ‘revolving fund’ for purchase
of raw materials, marketing, child care etc. This amount is shared equally by Union and
State Governments and UNICEF.

d. Each group selects one of its members as group organizer who is to help women in the
selection of economic activities suited to their skills and aptitude, procurement of raw
materials etc.

e. Besides engaging in economic activity, each group is expected to be recipient of benefits

of other development and welfare programmes.

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 f. Multi-purpose centre are being set up to serve as the central place for the working of
women groups.

The list of income-generating activities undertaken under the scheme are: tailoring,
embroidery, ready-made garments, pickle making, papad making, bakery products, candle
making, soap making, chalk making, envelop making, match box making, knitting, weaving,
basket making, agarbathi making, poultry, dairy, piggery, goat rearing, bee keeping, mushroom
production, fruit and vegetables processing, etc.

2. Stree Shakti Yojana / SHG (2000-2001)

The Stree Shakti Yojana was launched by Government of India during 2000-2001. This
programme is meant for rural women below poverty line covering landless women, women who
are divorced, SC/ST families and women having disabled members/drug addicts in the family.

The Chief Minister is the Chairman and the Minister for Women and Child Welfare is
the Deputy Chairman for the Stree Shakti Yojana. At district level, Commissioner is the
Chairman and the Assistant Director of Women and Child Welfare, and District Officers are the
members of the committee.

At taluk level, taluk panchayat president is the Chairman and officers of the concerned
Department are the members of the committee. Anganawadi worker will extend co-operation for
the first 6 months to work and manage, and after 6 months the Anganawadi workers only
supervise the work

Major aims/objectives of the programmes includes :

• Strengthening the process of creating suitable atmosphere which could achieve financial
progress and social status of women
• Forming 1,00,000 Stree Shakti groups throughout the state during 2000-2001 and
stimulating confidence and self dependence on them and making them able to have
control over the financial resource
46
 • Increasing the income of poor women by engaging them in income generation activities
and creating financial stability among them and thereby achieving eradication of poverty
• Channelizing various departments in one direction to provide opportunities to get the
benefits of development works of various departments to the members of women group
and taking measures for availing loans.

Unit 11 : Reorganized Extension System

A. Training and Visit System (1974)

A method of agricultural extension known as ‘Training and Visit system’ was evolved
on the basis of experiences gained in the pilot project set up with World Bank assistance
in Canal areas and Chambal Command areas in Rajasthan and Madhya Pradesh States
during Kharif 1974. Since this methodology yielded encouraging results, reorganized
agricultural extension system based on this approach was introduced in other States of
the country with the World Bank assistance during 1984. Sri Daniel Benor, the World
Bank expert, developed the Training and Visit (T and V) system for extension services
to a wide range of agricultural and administrative environments in developing countries.
Transfer of technology know-how from Subject Matter Specialists (SMSs) of State
Department of Agriculture to the farmers was ensured in two stages through :

• Training: Transfer of technical know-how from subject matter specialists to field level
extension worker

• Visits: Transfer of technical know-how obtained at the training from field level extension
worker to the farmers via contact farmers

Objective of T & V System :

• Co-ordinate research, training and extension activities effectively

• To make research more effective by catering to local needs and situation

47
 • To evolve an intensive training programme on a systematic basis for extension workers
and farmers and to ensure effective supervision and technical support to Village
Extension Workers.

Salient Features of T &V System :

1. Professionalism : Each extension agent is fully and continuously trained to handle one’s
particular responsibilities in a professional manner.

2. Single line of command: The extension service must be under a single line of technical and
administrative command within the Ministry/Department of Agriculture.

3. Concentration of efforts : The extension staff should work only on agricultural extension.
They are not responsible for any other activity. In training sessions, attention is concentrated
on important points.

4. Time bound work : Messages and skills must be taught to farmers in a regular and timely
fashion, so that farmers will make best use of the resources at their command. The village
extension worker (VEW) must visit the farmers regularly on fixed day, usually once each
fortnight. All other extension staff must make timely and regular visits to the field.
Recommendations for a specific area and for particular farming conditions for each
two-fortnight periods are discussed and learned by Subject Matter Specialists (SMSs) at
regular monthly workshops; the recommendations are then presented to VEWs and
Agricultural Extension Officers (AEOs) at the next two fortnightly training sessions.

5. Field and Farmer orientation: The contact with the farmers must be on a regular basis, on a
schedule known to farmers and with a large number of farmers representing all major
farming and socio-economic types.

6. Regular and continuous training : Regular and continuous training of extension staff is
required both to teach and discuss with them, and to prepare specific production
recommendations required by farmers for the coming fortnights and to upgrade and update
their professional skills.

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 Fortnightly training and monthly workshops, are the key means of bringing actual
farmer’s problems to the attention of researchers, of identifying research findings of
immediate relevance to farmers, and of developing production recommendations that fit
specific local conditions.

7. Linkages with research: Problems faced by farmers that cannot be resolved by extension
agents are passed on to research for either an immediate solution or investigation. Seasonal
and monthly workshops, joint field visits, training of extension staff and formulation of
production recommendations are some of the means by which linkages with research are
maintained.

Organization of Training and Visit / Linkage :

The T&V system has a hierarchical organization with one extension agent/village
extension workers (VEWs) for about 800-1000 farmers. The farmers are divided into 8 groups of
about equal size. Ten farmers in each group are selected as ‘Contact farmers’. Extension message
is to percolate to other farmers through these contact farmers. Eight VEWs are supervised by an
Agricultural Extension Officer (AEO), and 8 AEOs are supervised by a Sub-Divisional /District
Extension Officer (SDEO/DEO), who are assisted by 3-5 Subject matter specialists (SMSs)of the
Department of Agriculture. Higher level supervision are provided by Zone Extension Officer
(ZEO) and Director of Extension/Director of Agriculture of the State, with the assistance of
Subject matter specialists of Department of Agriculture.

The contact farmers are visited by the VEW every 2 weeks on a fixed day, preferably in
their fields where other farmers can attend and join the discussion or demonstration of improved
practices. The supervisors are required to spend half of their time in the field to check to work
progress and to identify problems to be solved by management. Paperwork is kept a minimum.

Every two weeks, the Village Extension Workers/extension agents (VEWs) receive one
day training (Fortnightly meetings) by the Subject matter specialists. This training should be
based on analysis of the VEWs experience in the past two weeks. Every month Subject matter
specialists of the Department of Agriculture meet (Monthly workshops/trainings) with
researchers to discuss agricultural production problems for the next month. These meeting also

49
serve as training for the SMSs. There are regular short courses on production technology and
extension methodology for the extension agents/VEWs/Assistant Agricultural Officers.

Fortnightly Meetings of T & V System :

All Village Extension Workers/ Assistant Agriculture Officers (VEWs or AAOs) and
Agricultural Officers (AOs) participate in one-full day training for each fortnight. This is the
chief means of continuously upgrading the professional skills of extension workers and of
infusing them with confidence to meet farmers. With an effective training, the extension
workers learn the specific recommendation that will be discussed with farmers over the coming
fortnight. Without these recommendations, their visits are likely to be generalized and
undirected and, therefore, of little use to farmers.

Objectives of fortnightly meetings :

• Present specific recommended practices for the coming fortnight to the AO s and AAOs.

• To act as a link between field level extension staff and research via SMS. This session is
also used for regulating the input supplies.

Monthly Workshops (Training ) of T & V System :

The monthly workshops are held for formulating the recommendations for the next
month. At district level known as monthly training where Subject matter specialists (SMSs)of the
Department of Agriculture will be trained by the master trainers of the Agricultural Universities.
At the taluk level, Agricultural Assistants (AAs)/Village Extension Workers (VEWs) are trained
by the SMSs of the Agriculture Department. The monthly workshops is held for two days to
build the technical skills of SMSs.

Objective of monthly workshops is to cover six basic activities:

• To review the rate of adoption of recommended practices by farmers and also to review
the problems in adoption of recommended practices
• To note the difficulties faced by SMSs in presenting and explaining recommendations

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 • To formulate and discuss recommended practices for major crops for the ensuing two
fortnights
• To review the climatic, input and marketing situations of the area that may affect the
adoption of recommended practices
• Training SMSs in the practical and field sessions to carry out recommended practices
themselves; and to discuss the progress and results of the farm trials

Merits of T & V System : (1) Increased in cultivated area under high yielding varieties, (2)
Increase in cropping intensity, (3) Increase in employment of family labour, (4)Raise in marginal
value of productivity of all agricultural input, and (5) Accelerating in the adoption of
recommended practices.

Demerits of T & V System :

• The approach was too staff-intensive, some states faced difficulty to provide such a large
number of staff members.

• The emphasis was only on the development of agriculture, thus, neglecting other
enterprises and aspects of family and rural development. In States having separate
Directorates of Horticulture, Social Conservation etc., flow of information to the farmers
relating to these disciplines was scanty

• The approach is mainly confined to the farmers. The youth and farm women were almost
neglected.

• There was a problem of coordination with the research institutions and supply agencies.

• Information for the farmers in many cases were of routine type, which made sustenance
of their interest in the programme difficult.

• Emphasis was on personal contact of the extension worker with a few selected farmers
and almost all other extension methods and aids were not used by the extension
personnel.

• The existing village leadership and village institutions were neglected.

51
 • Inadequate linkage with first-line extension programmes of the ICAR and Agricultural
Universities.

B. Broad Based Extension System ( BBE )

BBE was introduced under Tamil Nadu Agricultural Development Project (TNADP).
This system was introduced in Tamil Nadu State on 1.4.1991. The Government of Tamil Nadu
entered into an agreement with World Bank through Government of India for implementing this
project for seven years from 1991 to 1997.

Need for Broad Based System

The Training and Visit system recognized the ‘farm family approach’ rather than ‘crop
approach and area approach’. In irrigated areas, the village extension workers have full time
job because the agricultural crops occupy 9-10 months in a year. In dry land, the village
extension workers do not have full time opportunities since the crops occupy 4-6 months. The
messages delivered to the farmers were ‘crop oriented’ and less importance was given to ‘allied
activities’.

Broad based extension system aims at rectifying the defects of T & V system. In the
BBE : (a) the role of subject matter specialists is amplified and they are invited to formulate
messages suitable to their land based activities (agriculture, sericulture, animal husbandry,
horticulture, Human resource development, creating agriculture infrastructure etc.), (b) village
extension workers will have full time job by offering messages during lean season also, and (c)
the concept of broad based education lies in formulating and delivering composite messages to
the farmers to meet the needs of their full agricultural environment.

Principles of broad based extension

• Adoption of an integrated farming systems approach for the generation of relevant

composite messages.

• Broadening the range of subjects from agricultural crops to all allied subjects (Animal
husbandry, sericulture, horticulture etc.)

• Improvement of the effective communication of the farming community.

52
 • Introduction of resource based planning down to sub-division level.

• Encourages participation of non-governmental organizations in all agricultural extension

activities.

Objectives of the broad-based extension: (1) To increase the farm income, (2) To solve
problems of the farming community, (3) To make extension system more cost
effective, (4) To upgrade the quality of the extension workers,a nd (5) To popularize
integrated farming system approach.

The following areas were covered in Broad Based Agricultural Extension (1)

• Land, Water and Crop management

• Horticulture and Animal husbandry

• Fodder crops, fodder management and agro-forestry

• Credit and agriculture inputs supply

• Promotion of women specific technologies like drudgery reducing technologies and post
harvest technologies

• Agricultural infrastructure – village roads, go-downs, market yard, electricity etc.

• Human resource development – Training to farmers to extension personnel.

Broad Based extension has to be consistent with the required farm based activities to
meet the needs of the farmers.

C. Raitha Samparka Kendra (RSK)

The Raitha Samparka Kendra(RSK) was launched under Raitha Mitra Yojana. The RSK
replaced T & V system. Since T & V system was not able to give the expected results, the
Department of Agriculture recommended a need for revitalization of agriculture extension
service. Keeping this is in view, Raitha Samparka Kendra was started during the year 2000 to

53
sustain productivity. The Government of Karnataka decided to open 745 RSKs at Hobli level in
co-operation with Zilla Panchayat.

Objectives of RSKs : (1) Providing updating information on crop production and marketing
information, (2) Facilitate on the spot provision of agricultural inputs, (3) Facilitate on the spot
provision of testing the agricultural materials, and (4) Provide a forum of interface with public
and private technologies and inputs

Staffing pattern for RSKs: Each RSK will have 2 Agricultural Officers (AO) and 5
Agricultural Assistants (AAs). One AO and one AA remains at RSK and other 1 AO and 4 AAs
will go on to the farmers’ fields in the respective jurisdiction as and when demanded by the
farmers.

Functions of RSKs : (1)Providing information about improved agricultural production

technology and implements, (2)Organize programmes for popularizing agricultural crop, (3)
Select beneficiaries for different schemes for Government and help them to take benefits for
increasing the production, (4)Demonstration of public and private sectors in improved
technology on payment basis, and (5) Collaboration with Karnataka Agro Industry and
Karnataka Seed Corporation in RSK work.

Unit 12 : Entrepreneurship Development

Concept of Entrepreneur and Entrepreneurship

The word entrepreneur is derived from the French word ‘entreprendre’, which means to
‘do something’. According to Oxford dictionary, an Entrepreneur ‘is one who organizes,
operates and assumes the risk in a business venture in an expectation of making a profit’ Joseph
Schumpeter regarded the entrepreneur ‘as an innovator with potentialities of doing things in a
new way’.

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Entrepreneurial and Managerial Characteristics

The entrepreneurs are known for their special characteristics which make them
entrepreneur. An entrepreneur may not possess all the entrepreneurial and managerial
characteristics mentioned here, but may possess his/her own set of characteristics.

1. Achievement motivation: Entrepreneurs have high achievement motivation. ie., urge for
excellence and desire for success in competing with standards set by others as well as one
sets for oneself.

2. Personal drive and energy: High personal drive and energy is one the important
characteristics of entrepreneur. They can work for longer days with minimum basic
amenities.

3. Self confidence: The entrepreneurs believe that they are capable of doing things and have
the ability to control the actions and activities of other people.

4. Risk taking: An entrepreneur prefers to take calculate risks in dealing with a challenging
situation.

5. Taking initiative: An entrepreneur is prone to take initiative and explore all possibilities
to reach the goal.

6. Long term involvement: Entrepreneurs are found to set goals that demand long term
involvement and require perseverance.

7. Goal setting: An entrepreneur sets goals for himself/herself both in terms of what he/she
wants to and when. An entrepreneur realizes that time is valuable resource and wants to
utilize it fully to reach goad in time.

8. Systematic planning: An entrepreneur believes in planning and takes logical steps to

achieve the goals.

9. Dealing with failure: Failure does not deter an entrepreneur, rather he/she analyses the
failure as a feedback information, and take appropriate corrective steps. Entrepreneurs are
oriented towards problem solving’

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 10. Money as a measure: Entrepreneurs see money (profit) as a measure of their success, as
against the general stigma attached to money making.

11. Information seeking: An entrepreneur possess information seeking behavior and is

always on the lookout for relevant current information related to the product, process,
market etc. to take sound decisions.

12. Leadership: An entrepreneur follows a style of persuasive leadership which motivate the
team members to put in their maximum efforts.

13. Use of resources: Procurement and judicious utilization of resources are other important
characteristic of a successful entrepreneur.

14. Networking: Developing a good network of relationship with the persons, agencies,
organizations connected with the enterprise is an important characteristic for a successful
entrepreneur.

Managing an Enterprise

The basics of management of an enterprise is as follows:

1. Planning the enterprises involves selecting objectives and strategies, policies,

programmes and procedures for achieving them. Planning also includes decision making
on production, pricing and marketing of products. Market survey is essential to get an
idea of the market. Market survey may be conducted with reference to the availability of
the raw materials, equipments, marketing and distributing, and consumer behavior etc.

2. Organising involves establishing an intentional structure of roles through determination

of activities required to achieve the goals, grouping of activities, delegation of authority
and co-ordination etc.

3. Staffing demand defining the workforce, utilization of manpower, appointment,

promotion and remuneration including downsizing and organizational unity.

4. Leading the entrepreneurial unit in terms of addressing the desire, attitude and behavior
of individual and group amidst challenges towards opportunities.

56
 5. Controlling is measuring and correcting the activities of staff to assure that events
conform to plan. It measures the performance against goals.

6. Finance is most crucial that warrants the personal influence and rapport with the
financial institutions to get it materialized. The entrepreneur has to show the required
faith and credibility, and strength of the enterprise to get the required credit.

7. Quality control determines the future of one’s aspirational climb up. Quality products
create wide market, thus making the entrepreneur’s task of intervention easy amidst stiff
challenges.

8. Marketing linkage should be diligently built up by making the products cost

competitive, unique and indispensable before the consumers.

9. Alternate opportunity refers to the next option that could be explored or employed on
the face of parallel enterprises and challenge to one’s entrepreneurship venture.

Motivation and Entrepreneurship Development:

Motivation means movement or motion, an inner state that energizes, activates or moves
and directs human behavior towards goals. It is a need satisfying and goal seeking behavior.
McClelland identified several motivating needs which are basic to entrepreneurship
development. These are:

• Need for Achievement: The need to excel, know as achievement, is a critical factor in
the personality of an entrepreneur. People with high need for achievement have desire for
success in competition with others, or with a self-imposed standard of excellence. They
try to accomplish challenging tasks. Entrepreneurs, by and large, have been found to the
people with a high drive, high activity level and goal orientation.

• Need for independence: Studies conducted on entrepreneurs indicate that their needs for
independence is the prime characteristics that have driven them to start their own
business. These entrepreneurs do not conform to routine jobs and practices. They set
their own challenging goals and make efforts to achieve these goals.. They are masters of
their own activities and take full responsibility for achieving their life goals.
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 • Need for Power: Once an entrepreneur start an enterprise and wants to manage it
successfully, he/she also need to influence people. A drive which sells them his/her ideas
and leads them in the process of establishing and expanding the organization. Such drive
to influence people and to lead them to implement his/her may be called as need for
power. It implies controlling the actions and activities of other people. The entrepreneurs,
especially in the initial stages, reflect moderate need for power. This helps them to
become successful enterprise builders. However, they do not develop emotional bonds
with people they work with; and their need for affiliation is low.

Unit 13 : Overview of Indian social, political and economic systems and their implications
for decision making by individual entrepreneurs
A. Economic environment/System:

The survival and success of each and every business enterprise depend fully on its
economic environment. The main factors that affect the economic environment/system are:

(a) Economic conditions: The economic conditions of a nation refer to a set of economic factors
that have great influence on business organisations and their operations. These include gross
domestic product, per capita income, markets for goods and services, availability of capital,
foreign exchange reserve, growth of foreign trade, strength of capital market etc. All these help
in improving the pace of economic growth.

(b) Economic Policies: All business activities and operations are directly influenced by the
economic policies framed by the government from time to time. These policies include
Industrial, fiscal, monetary, foreign investment policy and import and export policies.

(c) Economic System: The world economy is primarily governed by three types of economic
systems, viz., (i) Capitalist economy; (ii) Socialist economy; and (iii) Mixed economy. India has
adopted the mixed economy system which implies co-existence of public sector and private
sector.

B. Non –Economic Environment/ System: The various elements of non-economic

environment are as follow:

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(1) Social Environment/System : The social environment of business includes social factors
like customs, traditions, values, beliefs, poverty, literacy, life expectancy rate etc. The social
structure and the values that a society cherishes have a considerable influence on the functioning
of business firms. Due to increase in literacy rate the consumers are becoming more conscious of
the quality of the products. Due to change in family composition, more nuclear families with
single child concepts have come up. This increases the demand for the different types of
household goods. It may be noted that the consumption patterns, the dressing and living styles of
people belonging to different social structures and culture vary significantly.

Sri Mukesh Ambhani, RIL Chairman and Managing Director, has indentified several
factors that will strengthen the India’s economic growth. These include:

• Demographic advantage : India has a predominantly young population. Forty four per
cent of India’s population were less than 19 years of age. In the next 20 years, India will
have more than 450 million under the age of 35 years and in a decade from now, only
10% of Indians will be above 60 years of age.

• Aspiring youth: This young generation that is growing up, is aspiring that produces and
consumes at the same time, creating internal markets.

• Culture of innovation and knowledge: Relative to most other countries, India has
embraced technology better. India has a mindset and a gene pool, where the young people
can do very well in technology.

• Growth momentum: The country has got an underlying growth momentum, and the
country has the ability to reinvent its growth model.

In this context the authors believe, entrepreneurship development will have an important
role in sustaining ever increasing economic growth of the country..

(2) Political Environment/System : This includes, the government policies and attitude
towards the business community and the unionism. All these aspects have a bearing on the
strategies adopted by the business firms. The stability of the government also influences business
and related activities to a great extent. It sends a signal of strength, confidence to various interest

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groups and investors. Further, ideology of the political party also influences the business
organization and its operations. Again the trade union activities also influence the operation of
business enterprises. Most of the labour unions in India are affiliated to various political parties.
Strikes, lockouts and labour disputes etc. also adversely affect the business operations.
However, with the competitive business environment, trade unions are now showing great
maturity and started contributing positively to the success of the business organization and its
operations through workers participation in management.

Unit 14 : Importance of Planning, Monitoring, Evaluation Follow up

and Managing Competition
A. Planning

Planning is a process for accomplishing purposes. It is a blue print of business growth

and a road map of development. Effective planning requires : (1) clearly defined objectives and
strategies, (2) identification of the limiting or critical factors, (3) anticipation of future
requirements and problems, (4) rigidity with flexibility, (5) built-in method of monitoring and
evaluation, so that needed changes could be made to reach the desired goal.

Elements in Planning : Planning in an extension organizations is not done for its own sake, but
for the purpose of improving rural life. Planning results from the interaction of the two systems-
the change agent system (extension personnel) and the client system (farmers). There are 5 basic
elements viz., objectives, resources, facilities, constraints and time factor through the interaction
and contribution of which a good plan may be developed.

Contingency planning is planning for possible future environments which are not
expected to occur but which may occur, if this possible future is widely different from that
premised, alternative premises and plans are required. In agriculture, uncertainties may arise
from situations like drought, flood, cyclone, pests and diseases etc. In critical situations these
may cause the basic premises for planning to change. The need for contingency planning arises
in such situations.

B. Monitoring

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 The word monitoring is derived from latin word, which means ‘to warn’. Monitoring is
seen as a managing technique in which extension agents collect data in which the extension
programme is implemented and the problem it faces in trying to stay on the right track. The
monitoring of extension activities consists of gathering and analyzing of data on the organization
of the extension service and its performance, as well as on farmers’ acceptance of extension
advice. Monitoring reveals whether the components of the extension service is operating as
intended.

Monitoring indicators are of 2 types, namely (1) Qualitative and , and (2) Quantitative
indicators. Qualitative indicators use proxy indicators . Ex For measuring leadership, 2-3
questions are asked indirectly to asses it like how many women can take decision, how many can
lead a group on her own and how many women can handle crises situation. The qualitative
indicators assess changes in knowledge, attitude, behavior and practices at individual, family and
community levels. The quantitative indicators deal with numerical values. They are easy to
measure. How many of you support your panchayat chairman as the group leader for the All
India tour.

C. Evaluation

Evaluation is a very necessary step for extension activities. About those extension
programmes which have been drawn up and introduced, it is necessary to know how much
effective they have been or how much effective they have been or how many new things of
agriculture the farmers have learnt from them. If they did not get any advantage, then what were
the cause ? What are the reasons for farmers not taking interested in the programme/technology ?
The study of these points is the evaluation in extension.

Evaluation is a process of judging the performance of programme to what extent the

objectives of the programme has been achieved and Extension evaluation is the process of
determining how well the desired behavior changes have taken place or taking place because of
extension education efforts.

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Importance of evaluation: 1) It helps to determine the degree to which the objectives are
attained, (2) helps to establish a bench mark, (3) gives direction for continuous improvement of
work, (4) helps to serve to furnish data regarding the rural situation to extension programme
planning, (5) provide evidence of the value of the programme and a basis for adjusting a
programme, (6) gives satisfaction to leaders and extension personnel through an understanding
of what is accomplished , (7) helps to understand strong or weak points in any programme or
plan, (8) to understand the result of organization and administrative procedure of the programme,
and (9) helps in providing the information with whom we work ( impact of various political
parties, local leaders, women, youths etc. ).

Methods of Evaluation: There are four common methods of evaluation :

1. Formative evaluation : This attempts to identify and remedy the short comings during the
developmental state of a programme.

2. Summative evaluation: It assess the worth of the final version when it is offered as an
alternative to other programme.

3. On-going evaluation : It is action-oriented analyzing of project effects and impacts,

compared to anticipations, to be carried out during implementation.

4. Ex-post evaluation: It would resume this effect several years after completion of the
investment, to review comprehensively the experience and impact of a project as a basis
for future policy formulation and project design.

Monitoring and evaluation are done through survey, baseline, meetings, discussion,
reporting, structured interviews, questionnaire, surveys etc.

The main difference between monitoring and evaluation are:

Sr. No. Monitoring Evaluation

1. Continuous, it starts and ends with One short operation usually after completion
project or mid-way of the project implementation

2 Required for immediate use for mid Used for future planning earning process
course correction

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 3 Done by implementing personnel Usually done by outside agency

4 Symptomatic ,early warning system Diagnostic

D. Follow up / Exit strategy

Follow up is the process of reviewing the effectiveness of the programme/project after

it has been terminated in a particular region/area or to know the rate of adoption of a technology
after its dissemination in a social system. It is also called as Exit strategy. An exit strategy for a
programme is a specific plan describing how the program will withdraw from a region or
population while assuring that the achievements of development goals is not jeopardized and that
further progress towards these goals will continue after the end of the programme. A MOU will
be signed between the government agency and rural institution (panchayat etc) for delegating the
authority to maintain the assets and sharing the benefits of the programme.

Example of the Exit strategy in the agriculture sectors include :

• Capacity: Knowledge taught by extension functionaries would be self sustaining and
Farmers association would have technical and management skills to continue.
• Resources : Agriculture inputs would be purchased by the farmers from profits derived
by adopting recommended cultivation practices.
• Linkages : Buyer / supplier linkages would continue to strengthen sales and Government
agricultural extension workers would provide technical support.
• Motivation : Profits would be a continued motivator and benefits derived during project
would incentivize continuation ( boosted yields, improved post harvest technologies and
marketing)

E. Managing Competitions :The rivalry between organizations having similar interest is a

common phenomenon. For the business to survive in the face of stiff challenge and to ensure its
sustained growth in that environment, the entrepreneur has to adopt certain principles of

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managing competition. Some of them include : (1) Spot early opportunities, (2) develop a deeper
understanding of the customer – national and international, (3) keep track of the competitors, and
(4) identify current trends which would shape the future.

Unit 15 : Entrepreneurship Development Programmes (EDPs) , SWOT

Analysis & Generation, Incubation and Commercialization of Business Ideas
and Innovations

I. Entrepreneurship Development Programmes (EDPs)

The Entrepreneurship Development Programmes (EDPs) were started by Gujarat

Industrial Investment Corporation (GIIC) and other agencies had organized a three-month
entrepreneurship development programme in late sixties. The programme was conducted for a
selective group of energetic and potential entrepreneurs who had the willingness and desire to
achieve the goal set by them. The objectives laid down for the above programmes were : (1) to
set up small scale ventures, (2) to manage the small scale ventures effectively, (3) to earn
adequate profit from these ventures, and (4) to undertake personal responsibility of the business.

It has been found out that ‘Achievement motivation’ (n Ach) factor developed by David
McClelland (the renewed behavioral scientist) , is the most important quality for entrepreneurial
development. In order to prove that the need for achievement could be induced, he conducted an
experiment in collaboration with the erstwhile Small Industries Extension and Training Institute
(SIET) of Hyderabad at Kakinada, Andhra Pradesh. Till today, as many as 686 odd
organizations, including the state level organizations like Institute for Entrepreneurial
Development (IEDs)/Centre for Entrepreneurial Development (CED), are organizing EDPs in
the country.

Objectives of EDPs: The important objectives of Entrepreneurship Development Programmes

(EDPs) can be stated as follows:

a) Accelerating industrial development by enlarging the supply of entrepreneurs

b) Developing entrepreneurial qualities and motivating the prospective entrepreneurs to

achieve the goal

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 c) Enhancing the growth of small-and medium-scale enterprise sectors which offer better
potential for employment generation and dispersal of industrial unit

d) Providing productive self-employment avenues to a large number of educated and low

educated young men and women coming out of schools and colleges

e) Improving performance of small-and medium-scale industries by the supply of

carefully-selected and trained entrepreneurs and diversifying sources of entrepreneurship

f) Enterprise development in rural and no-industry areas where local entrepreneurship is

not really available and entrepreneurs from nearby towns are not easily lured

Indian Entrepreneurial Development Programme Model

The Entrepreneurial Development Programmes are based upon well-designed and

integrated modular packages based on the needs of the budding entrepreneurs. The training level
follow more or less the same principle in organizing Entrepreneurial Development Programmes.
In the present context, EDPs are usually conducted for four to six weeks and the curriculum
adopted by the above institutes for imparting training is also apparently uniform.

Phases of EDPs : Pre-training, training and post training or follow up phases are the three
phases of Envrepreneurial Development Programme.

II. SWOT Analysis

SWOT analysis is a management tool which is extremely useful for understanding and
decision making for all different situations and business as well as organizations. SWOT as an
acronym stands for strength, weakness, opportunities and threats of an organization. These four
attributes are also called SWOT parameters.

1. Strength is the basic asset of the organization that would provide competitive advantage for
its growth and development. Some of the strengths of the organization are: (a) availability of
necessary infrastructure, (b) adequate production capacity, (c) skilled manpower, (d) good
manufacturing practices, quality assurance and quality control, (e) low cost of production, (f)
good location, (g) low cost of manufacture, (h) wide distribution network, (i) motivated staff,
(j) efficient management etc.
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2. Weakness is the liability or limitation that can create at a state of time and situation specific
disadvantage for its growth and development. Some of the weakness of the organization are :
(a) rising cost of operations, (b) low level of motivation of staff, (c) non-availability of raw
materials, (d) scarcity of capital, (e) inadequate infrastructure, (f) shortage of trained
technicians, (g) lack of effective coordination, (h) outdated technology etc.

3. Opportunity is the ability of the organization to grow and achieve its specific objectives in a
given situation. Some of the opportunity of an organization are : (a) favorable government
policy, (b) availability of appropriate technology, (c) staff training for increasing their
technical efficiency etc.

4. Threat is a situation that blocks the abilities of the organization to grow and develop for
meeting its ultimate goal. Some of the threats of an organization are : (a) shortage of power,
water, fuel etc. (b) rejection by the market, (c) tough competition, (d) fiscal policy resulting
in increased taxes, duties, imports reservations, licensing etc. (e) resource crunch etc.

III. Generation, Incubation and Commercialization of Business Ideas and Innovations

The process of establishing a business and further sustenance is a complex process and it
involves several activities and techniques to be adopted for running the business. Primarily the
process starts with idea generation followed by idea incubation and finally leading to
commercialization of business ideas. All these three steps are interlinked and the entrepreneurs
need to be cautious in handling all these steps.

A) Idea / Innovation Generation

Entrepreneurs need ideas to start and to grow their entrepreneurial ventures. Generating
ideas is an innovative creative process.

Potential Sources of Entrepreneurial Ideas

• Personal interests or hobbies

• Entrepreneur’s knowledge, work experiences, skills and abilities

• Products and services currently available.

• External environmental opportunities in these sectors: (Technological, societal,

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 cultural, demographic, economic, legal, political ideas etc)

Ways to generate ideas and innovations.

(1) Environmental scanning : One technique that entrepreneurs can use to generate ideas is
environmental scanning ie screening of large amounts of information to detect the emerging
trends. Here are some “ideas” to stimulate one’s idea creation by scanning the world around us :
(a) reading local and other major metropolitan newspapers, consumer magazines, trade
publications, government publications etc (b) reviewing the fiction and nonfiction best-seller
lists; (c) paying attention to commercials; watching and reviewing top prime- time television
shows; (d) browse through the magazine section of a bookstore; (e) walk through a local
shopping mall to see what’s there; and so forth.

(2) Creativity and creative problem solving: Creativity is defined as the ability to combine
ideas in a unique way or to make unusual associations between ideas. A creative thinking
means linking new concepts in unusual ways. A number of specific creativity approaches can be
used. For instance, an entrepreneur develops a new idea by looking at the positive and negative
attributes of a product or service; and so on. Using the creative problem-solving approaches one
can help to unlock one’s creativity and generate potential entrepreneurial ideas.

(3) Brainstorming : The purpose of brainstorming is to collect ideas from a group of people . In
a brainstorming session, a group of people get together in a room. A group leader states the issue
or problem to be addressed and ensures that all participants understand it. Then members
contribute as many ideas as they can in a given time by describing them verbally. No criticism of
ideas is allowed during the brainstorming session. Instead, all ideas, no matter how illogical or
crazy, are recorded for later discussion and analysis.

(4) Focus groups: These groups of individuals provide information about proposed products or
services in a structured setting. In a typical focus group, a moderator focuses the group
discussion on whatever issues are being examined. For instance, a focus group might look at a
proposed product and answer specific questions asked by the moderator. In other instances, the
focus group might be given a moral general issue to discuss and the moderator simply leads the
discussion based on comments made by the group. Either way, a focus group can provide an
excellent way to generate new ideas and to screen proposed ideas and concepts.

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 B ) Idea/Innovation Incubation

Idea incubation is a process for bringing ideas into reality. It starts on a very fundamental
level, often with a single individual who comes up with a concept he or she thinks should be
further explored. This individual brings others in on the idea incubation process, making the idea
stronger and more viable. Ultimately, the idea may be turned into a product, assuming that
funding can be secured and that the idea is commercially viable. Many companies foster idea
incubation by clustering workers together in collaborative environments. Cooperative groups
work best for idea incubation because other members of the group can identify strengths and
weaknesses of the idea, resulting in a stronger finished product. Some companies offer their
services as professional idea incubators. The amount of time a company spends in an incubation
program can vary widely depending on a number of factors, including the type of business and
the entrepreneur's level of business expertise.

C) Commercialization of Ideas/innovations

It is the process or cycle of introducing a new product into the market. The actual launch
of a new product is the final stage of new product development, and the one where the most
money will have to be spent for advertising, sales promotion, and other marketing efforts.

The Commercialization Process: Commercialization of a product will only take place, if the
following three questions can be answered:

1) When the company has to decide on the introduction timing

2) Where the company has to decide to launch its products.

3) To whom the primary target consumer group will have been identified earlier by research
and test marketing.

Unit 16 : Government schemes and incentives for promotion of

Entrepreneurship and Government policy on Small and Medium Enterprises

A) Government schemes and incentives for promotion of Entrepreneurship

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 Recognizing the importance of micro, small and medium enterprises as important
segments of Indian economy in terms of their contribution to country’s industrial production,
exports, employment and creation of entrepreneurial base, the Central and State Governments
have been implementing several schemes and programmes for promotion and development of
these enterprises. The following programmes/schemes have been initiated by the Government
for the providing incentives for the promotion of entrepreneurship in the country:

1. Prime Minister’s Employment Generation Programme (PMEGP)

2. Market Development Assistance Scheme For Micro/ Small Manufacturing
Enterprises/ Small and Micro Exporters
3. Scheme for Assistance to Training Institutions
4. Rajiv Gandhi Udyami Mitra Yojana
5. Credit Link Capital Subsidy Scheme for Technology Up gradation
6. Micro and Small Enterprises – Cluster Development Programme (MSE-CDP)
7. Credit Guarantee Fund Scheme For Micro and Small Enterprises (CGMSE)
8. National Award Scheme (NAS) :
9. Scheme to Support Selected Universities / Colleges to Run 1200 Entrepreneurship
Clubs.
10. Schemes for Women Entrepreneurs ( Mahila Udyami Yojana (MUY), SBI Stree
Sakthi Package and Priya darshini yojana)

B) Government policy on Small and Medium Enterprises (SMEs/SSEs)

The Industrial Policy Resolution (IPR) has resulted in various government policies on
small and medium enterprise during the past 5 decades.

a). IPR 1948 –aimed at Post independent national reconstruction through industrialization.
Envisaged the importance of cottage & small enterprises for employment creation and utilization
of local resources and skills. The main thrust in small scale sector was centered round Protection
of small and medium enterprises.

b.) IPR 1956 – Provided a clear emphatic policy and incentive support to small scale & cottage
industries. It aimed at Protection plus Development of small industrial sector.

c). IPR 1977 – Establishment of District Industries Centre (DICs) focusing on regional growth
of industries & utilization of local resources and skill. Industrial Development Bank of India
(IDBI) & Khadi And Village Industries Boards (KVIB) are established & small scale sector was

69
given priority. This policy focused on promotion. Thus Protection, Development plus promotion
became its focus.

d). IPR 1980- Thrust areas were Industrial infrastructure, higher productivity promotion of agro
based industries, consumer protection & quality control. For generation of wage employment &
development of entrepreneurial spirit among people small scale sector was again treated most
important.

e. IPR1990- Policy of economic liberalization & Introduce simple procedures, formalities, rules
& regulations. More emphasis to women & youth was given under entrepreneurship.

New Small Enterprise Policy (NESP) : NESP was made to provide adequate support to tiny
and micro enterprises. Thrust areas include :

1. Inclusion of industry- Business & service related enterprises irrespective their location as
small scale industries
2. Widen scope of National Equity Fund, enlarge Single window scheme and associate
commercial banks with provision of composite loan scheme
3. Financial support to entrepreneurs by allowing equity participation up to 24% of share
4. Setting up of technology development cell in Small Industry Development Organisation
(SIDO)
5. Setting up of Export development centre in SIDO
6. Liberalization by limited partnership act
7. Integrated infrastructure development system
8. Technology development and equitable distribution of local & imported raw material on
a priority to small & tiny sector
9. Improvement in incentive delivery system.
10. Marketing, market promotion and export support modernization.
11. Quality up gradation and procedural simplification.
12. Increase in investment limit from 2 to 5 lakhs for plant & machineries and tiny industrial
units.

C ) Social Responsibilities of Business

Every business operates within a society. It uses the resources (land, power, water, roads
etc. ) of the society and depends on the society for its functioning. This creates an obligation on
the part of business to look after the welfare of society. People engage in business to earn profit.
However, profit making is not the sole function of business. It performs a number of social
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functions, as it is a part of the society. It takes care of those who are instrumental in securing its
existence and survival like- the owners, investors, employees, consumers and government in
particular and the society and

Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps to
satisfy the expectation of the different interest groups. The interest groups may be owners,
investors, employees, consumers, government and society or community. But the question arises,
why should the business/ businessman come forward and be responsible towards these interest
groups. Following are the reasons for why the business / businessman be socially responsible :
1) Public Image - The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon the public image
of its activities. People prefer to buy products of a company that engages itself in various
social welfare programmes ie., good public image attracts honest and competent employees
to work with such employers.
2) Government Regulation - To avoid government regulations, businessmen should discharge
their duties voluntarily. For example, if any business firm pollutes the environment it will
naturally come under strict government regulation, which may ultimately force the firm to
close down its business. Instead, the business firm should engage itself in maintaining a
pollution free environment.
3) Survival and Growth -Every business requires the support of the society for its survival.
Business utilizes the available resources like power, water, land, roads, etc. of the society. So
it should be the responsibility of every business to spend a part of its profit for the welfare of
the society.
4) Employee satisfaction - Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation, transportation, education
and training. The employers should try to fulfill all the expectation of the employees because
employee satisfaction is directly related to productivity and it is also required for the
long-term prosperity of the organization. For example, if business spends money on training
of the employees, it will have more efficient people to work and thus, earn more profit.

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5) Consumer Awareness - Now-a-days consumers have become very conscious about their
rights. They protest against the supply of inferior and harmful products by forming different
groups. This has made it obligatory for the business to protect the interest of the consumers
by providing quality products at the most competitive price.

Various social responsibilities of business / businessman towards the different interest

groups/ stake holders includes : (1) To provide assistance in the field of education, medical ,
science and technology etc, (2) To help weaker and backward sections of the society, (3) To
generate employment, create better opportunity for better career prospects, (4) Proper working
conditions and better living conditions like housing, transport, canteen, crèches etc. to the
employees, (5) Protection of environment and conserve natural resources and wildlife, (6)
Promotion of sports and culture, (7) Payment of fees, duties and taxes regularly on time as well
as honestly and not to indulge in corruption through bribing and other unlawful activities, (8)
Regular supply of goods and services, (9) Goods and services should be provided at reasonable
and affordable price., (10) Not to defame competitors through false or ambiguous
advertisements, (11) Unfair means like under weighing the product, adulteration, etc. must be
avoided, (12) Consumer’s grievances must be addressed and there must be prompt after sales
services etc.
**********************

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