Rural Development is the main pillar of nation’s progress. The thrust of programmes is on all-round economic and social transformation in rural areas, through a multi-pronged strategy, aiming in the process, to reach out to the most disadvantaged sections of the society. In order to catalyse development in rural areas, during the last four years, top priority has been accorded to Rural Development, not only in terms of allocation of additional funds and resources, but also through introduction of new programmes and restructuring the existing ones.

The Ministry has been mandated to make provision of safe drinking water to all rural habitations by 2004. A separate Department of Drinking Water Supply was created to expedite availability of safe drinking water to people in rural areas.

A programme named "Sector Reform" based on demand responsive strategy and community participatory approach to rural drinking water sector was launched in 1999.

Encouraged by the success of Sector Reform Projects, a new initiative in rural drinking water named ‘Swajaldhara’ has been launched by the Prime Minister on December 25, 2002. Under this initiative, as against the districts under Sector Reforms, panchayats, blocks and other beneficiary groups have been empowered to formulate, implement, operate and maintain drinking water projects. Ninety per cent of funds towards the project cost are provided by the Government and the beneficiary group has to contribute 10 per cent of the cost (5 per cent in case of gram panchayat/villages where at least 50 per cent of the population is SC and ST). Under Swajaldhara, Rs 274.23 crore has been released to 322 districts of 18 States/Uts.

As per Prime Minister’s announcement during his speech on Independence Day 2002, Ministry has allocated Rs. 303.75 crore to States/UTs for providing one lakh handpumps in water scarce areas, drinking water facilities in one lakh primary schools in rural areas and for revival of one lakh traditional sources of water.

Considerable success has been achieved in meeting drinking water needs of the rural population over the years. Out of a total number of 14.22 lakh rural habitations in the country, 13.22 lakh habitations are fully covered. Nearly 80,860 habitations have been partially covered and only 8,686 habitations are not covered with rural drinking water supply.

To improve productivity of wastelands and improve the living standard of the rural poor, a new scheme called "Haryali" was launched on January 27, 2003. Its aim is to strengthen and involve Panchayati Raj Institutions for the implementation of Watershed Development Programmes viz. Integrated Wastelands Development Programme (IWDP), Drought Prone Areas Programme (DPAP) and Desert Development Programme (DDP). Under this initiative, the Gram Panchayats would execute watershed projects with technical support from the Block Panchayat/Zilla Panchayat who would act as Project Implementation Agency (PIA) for all watershed projects in a particular block.

During the last four years, under IWDP, a total of 353 new projects have been sanctioned to cover an area of 29.38 lakh ha. of wastelands with a total cost of Rs.1622.78 crore. Under DPAP, a total of 10,179 new projects have been sanctioned to cover an area of 50.89 lakh ha. of wastelands with a total cost of Rs.2,825.40 crore. Under DDP, a total of 6,120 new projects have been sanctioned to cover an area of 30.60 lakh ha. of wastelands with a total cost of Rs.2,194.10 crore.

The Ministry has formulated National Policy on Resettlement and Rehabilitation for Project Affected Families-2003 to provide Resettlement and Rehabilitation (R&R) benefit to the Project Affected Families and also to protect social, economic, cultural and other interests of the displaced tribal families.

The Prime Minister launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) on December 25, 2000, with the objective of providing road connectivity through good all-weather roads to all unconnected habitations having a population of more than 1,000 persons by the year 2003 and those with a population of more than 500 persons by the end of the Tenth Plan period (2007). For the years 2000-01 to 2003-04, project proposals have been cleared worth Rs. 9,729.56 crore. Out of this amount Rs.7,529.58 crore has been released. The expenditure upto May, 2003, is Rs.4,624.59 crore and 16,760 road works have been completed till September, 2003.

Sampoorna Grameen Rozgar Yojana (SGRY) was launched on September 25, 2001 by merging the ongoing schemes of Employment Assurance Scheme (EAS) and the Jawahar Gram Samridhi Yojana (JGSY). The objectives of the Programme is to provide additional wage employment in the rural areas as also food security, alongside the creation of durable community, social and economic infrastructure in the rural areas.

Under the Sampoorna Grameen Rozgar Yojana (SGRY), with an annual outlay of Rs.10,000 crore, fifty lakh tonnes of foodgrains, amounting to Rs 5,000 crore, are being provided every year free of cost to the State governments and Union Territories. Rs. 5,000 crore has been kept to meet the cash component of wages and material cost. The special component of the SGRY replaces Food for Work Programme (FFWP) w.e.f April 1, 2002.

Under the SGRY, during the 2002-03, an amount of Rs.3,684.64 crore, as cash component and about 45.26 lakh tonnes of foodgrains has been released to the States/UTs.

Under the Special Component of the SGRY about 63.41 lakh tonnes of foodgrains has been released to the drought affected States/Districts during 2002-03.

During 2003-04, an amount of Rs.2,661.55 crore against the Central allocation of Rs.4,120.25 crore and 32.81 lakh tonnes of foodgrains against the allocation of 45 lakh tonnes have been released under the programme.

During 2003-04, 49.14 lakh tonnes of foodgrains has been released under the Special Component.

The Swarnjayanti Gram Swarozgar Yojana (SGSY) is a new and holistic self-employment programme launched during the year 1999-2000. The SGSY aims at bringing all assisted swarozgari (beneficiary) above the poverty line by providing them income generating assets through a mix of bank credit and Government subsidy. A Self Help Group consists of 10-20 persons belonging to families below the poverty line. In self help Group, they participate fully and directly take decisions on all issues that will help them in coming above the poverty line.

Since inception, a total of 18,15,590 self-help groups have been formed. About 39,00,702 swarozgaries have been assisted with a total investment of Rs.7,960.22 crore.

The Government has recognised shelter as a basic human requirement, which needs to be met on a priority basis. ‘Housing for All’ is the goal. Efforts are being made to end the shelterlessness by the end of the Tenth Plan period. Pradhan Mantri Gramodaya Yojana – Gramin Awaas was launched during 2000-2001. The objective of Indira Awas Yojana is primarily to facilitate construction of dwelling units and upgradation of existing unserviceable kutcha houses into pucca/semi-pucca houses by members of Scheduled Castes/Scheduled Tribes, freed bonded labourers and also non SC/ST below the poverty line in rural areas. Under Indira Awaas Yojana, the flagship rural housing programme of the Ministry, about 48 lakh houses have been constructed during the last four years.

Panchayats have been recognised as the backbone for the development of Indian villages. The year 1999-2000 was observed as the ‘Year of Gram Sabha’. An All India Panchayat Adhyakshas Smmelan was held on April 5 and 6, 2002, in New Delhi with a view to getting a feedback from the Adhyakshas and revitalising and strengthening the Panchayati Raj Institutions in the country in a time bound manner.

An Empowered Sub-Committee of the National Development Council on Financial and Administrative Empowerment of PRIs is set up with the Minister of Rural Development as Chairperson with Union Minister and State Chief Ministers as Members, and Secretary, Planning Commission, as the convenor and Secretary (RD) as the Co-Convenor. First meeting the Sub-Committee was held in June 26, 2003, and second in August 7, 2003, at New Delhi. The Ministry of Rural Development has instituted Annual Awards for Best Performing Panchayats. The Award will be given to 6 District Panchayats, 12 Intermediate Panchayats and 50 Gram Panchayats.

The Restructured Central Rural Sanitation Programme (RCRSP) was launched on April 1, 1999. The restructured programme is community-led and people-centric. Rural school sanitation has been introduced as a major component of the programme as an entry point, encouraging wider acceptance of sanitation by the rural masses.

A total Sanitation campaign has been launched to suit district specific requirements. The campaign is now being implemented in 374 districts with an outlay of Rs.3,604.82 crore. Under the Total Sanitation Campaign, 44.33 lakh household latrines, 1,817 sanitary complexes for women, 47,825 toilets for schools and 5,429 ‘Balwadis’ toilets and 723 production centres/rural sanitary marts have been constructed so far.

With a view to motivating the PRIs, officials and NGO’s working for promotion of rural sanitation, the Government has launched ‘Nirmal Gram Puruskar’.

In order to ensure that the allocations made for rural development programmes are properly utilised and the poor beneficiaries receive the benefits intended for them in full measures, the Ministry has reconstituted vigilance and monitoring committee.

The Ministry has nominated Members of Lok Sabha as the Chairman/Vice Chairman of the district level vigilance & monitoring Committee in their respective constituencies. Members of the Rajya Sabha are also nominated to States level vigilance & monitoring committee.

BPL Census 2002 for the Tenth Plan has been initiated in all rural areas of the country.

For Council for Advancement of People’s Action & Rural Technology (CAPART), from the year 2000 to June, 2003, Rs.123 crore are allocated, out of this Rs. 98 crore has been released for different projects.

CAPART organises large exhibition under the banner ‘SARAS’ during the Indian International Trade Fair.