Page 49 - Banking Finance January 2025

ARTICLE

merged with the National Health Mission (NHM) National Solar Mission: National Solar Mission is a
in 2013, forming a unified health mission for the flagship initiative launched by the Government of
country. India in 2008 with the aim of promoting solar en-

Pradhan Mantri Krishi Sinchai Yojana - Water- ergy development in the country mainly in rural
area. The mission aims to harness India's abundant
shed Development Component (PMKSY-WDC):
solar energy potential and reduce dependence on
PMKSY-WDC is being implemented to improve the
fossil fuels.
productive potential of rainfed and degraded land.
PMKSY-WDC is being implemented in two phases. 4. Institutional Initiatives
PMKSY-WDC 1.0 was implemented from 2009-10 to Gram Sabha: This is a village assembly that empow-
2014-15. PMKSY-WDC 2.0 was launched in 2021-22 ers local communities to participate in decision-
and is expected to continue till 2025-26. WDC has making and development planning.
several components meant for improving use of de- Panchayati Raj Institutions (PRIs): These local self-
graded land. These include afforestation, horticul- governing bodies play a crucial role in rural devel-
ture and construction of water harvesting structures
opment, decentralizing power and improving gov-
in 2024-25, the scheme accounts for 94% of the
ernance.
Department's allocation. Expenditure on PMKSY-
WDC is estimated to be Rs 2,501 crore in 2024-25, These are just a few examples of the many initiatives taken
a 43% increase over the revised estimate of 2023- by the Indian government to mitigate the challenges faced
24. Since 2015-16, allocation to the scheme has by rural India. The effectiveness of these initiatives depends
grown at an annualised rate (CAGR) of 6%. At the on various factors, including adequate funding, effective
same time, fund utilisation under the scheme has implementation, and community participation. It is essen-
remained low, even below 50% for some years. tial to continuously monitor and evaluate these programs
However, in 2023-24, the revised estimate is 80% to ensure they are achieving their intended objectives and
of budget estimate, suggesting improved fund making a positive impact on rural lives.
utilisation
Learning from Other Countries
3. Environmental Initiatives
National Afforestation Programme (NAP): The Na- Several countries have successfully transformed their rural
tional Afforestation Programme (NAP) was economies, offering valuable lessons for India:
launched by the Government of India in 1992. NAP 1. China's Poverty Alleviation Programs:
is a flagship program launched by the Government Targeted Approach: China's poverty alleviation
of India to increase forest cover and protect programs have been highly effective due to their
biodiversity. The program aims to address the chal- targeted approach, focusing on specific regions and
lenges of deforestation, land degradation, and cli- vulnerable populations.
mate change. It is a long-term program with no Infrastructure Development: Significant invest-
specific target date for completion. The program ments in rural infrastructure, such as roads, bridges,
aims to increase forest cover in the country gradu- and irrigation systems, have played a crucial role
ally over time. in poverty reduction.
National Rural Drinking Water Programme Community-Based Initiatives: China has empha-
(NRDWP): NRDWP is a flagship government initia- sized community-based initiatives, empowering lo-
tive in India aimed at providing safe drinking wa- cal communities to participate in development plan-
ter to all rural households. Launched in 1996, ning and implementation.
NRDWP seeks to address the critical issue of water
2. Brazil's Bolsa Família Program:
scarcity and contamination in rural areas. As of
Conditional Cash Transfers: This social safety net
2023, the NRDWP has achieved significant progress
in providing piped water supply to rural households. program provides conditional cash transfers to poor
However, there are still gaps to be filled, especially families, incentivizing them to keep their children
in remote and marginalized regions. in school and access healthcare.

44 | 2025 | JANAURY | BANKING FINANCE