2018 ijrar september 2018, volume 5, issue 3 e -issn 2348...

© 2018 IJRAR September 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR1903816 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 283

A STUDY OF IMPACT OF VEER CHANDRA

GARHWALI TOURISM SCHEME IN

UTTARAKHAND Mrs. Sunita Sanguri, Uttarakhand Open University, Haldwani, Uttarakhand

Abstract

The Central Government and the State Government have initiated a number of welfare schemes for

economically empowering the weaker and marginalised sections of the society. Poverty eradication schemes

were started with the aim of bridging the rural-urban divide, guaranteeing wage employment and ensuring

food security. With the further objective of providing for economic upliftment of the poor by generating

self-employment, creating rural infrastructure, and providing means for dignified living, etc.

The Uttarakhand Government had also launched one such scheme with similar objectives, in June 2002,

known as “Veer Chandra Garhwali Paryatan Yojana”. This was the first self-employment scheme launched

by the Government of Uttarakhand to make tourism a major source of employment and revenue generation

and to simultaneously develop the transportation facilities in the state. This scheme has been significantly

successful in reducing the poverty of the beneficiaries by generating employment and hence has gained

popularity. This paper’s main focus is on the assessment of the impact of Veer Chandra Garhwali Tourism

scheme on its beneficiaries.

Keywords: Veer Chandra Garhwali Scheme, Veer Chandra Singh Garhwali Paryatan Yojana, Uttarakhand

Tourism, Self-employment generation.

Introduction

India is an agrarian economy. With its 135 crore population, India is the second most populated country on

Earth, after China. Around 65 % of India’s population resides in rural areas and more than 40 % of its

workforce is engaged in agriculture based activities. As per the planning Commission of India report for the

year 2015-16, poverty ratio of India is 21.9 %. According to a study conducted by the World Bank's

Brookings Institute, India’s poverty is steadily reducing and India is moving down in the global poverty

ratings. As per the World Poverty Clock, 2018, India moved down to the second position with around 5 %

of its people living in extreme poverty. These statistics show that India has been successful in shedding its

tag of ‘underdeveloped nation’ and now has joined the club of the developing nations. It would not have

been possible without the various poverty alleviation programmes initiated and implemented by the

Government of India.

In the direction of eradication of poverty, employment generation is the first and most important step.

Government of India understood this and launched many self-employment generation and wage-generation

programmes such as Integrated Rural Development Programme (IRDP), Jawahar Rojgar Yojana (JRY),

National Rural Employment Programme, Swarnajayanti Gram Swarojgar Yojana (SGSY), etc to name a

few. The State Government also launched many schemes as per the need and requirement of its populace.

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One such scheme launched by the Uttarakhand State Government is Veer Chandra Garhwali Paryatan

Yojana which has been studied here in this paper to assess its role in employment generation in

Uttarakhand.

Review of Literature

A number of self-employment and wage-employment programmes have been launched by the Government

to alleviate poverty and unemployment in rural and urban areas. These are aimed at providing employment

to the poor people and improving the income levels of the poor households by providing them with

productive assets. These employment generation and poverty alleviation programmes are in operation in the

State of Uttarakhand also. A study by Mamgain et al. (2005) has assessed the impact of these programmes

in all the hilly districts of Uttarakhand in terms of employment and income generation. The authors have

observed that there exists a large gap between the demand for self-employment programmes and the

availability of funds. The study has observed that the growth in employment generation has not been very

satisfactory and it is mainly distress-driven in the hilly regions of Uttarakhand.

Majority of the rural population in Uttarakhand is dependent on the agricultural sector for employment,

however agriculture still remains the last resort to absorb the additions in the workforce. The male

workforce is opting for employment in non-agricultural sector and is migrating to the urban regions in

search for work. For the female workers , there is hardly any change in their situation. They are still looking

after the farming and animal husbandry activities in the state forming the backbone of agriculture.

Rajendra Mamgain (2007) in his study titled : ‘Growth, Poverty and Employment in Uttarakhand’, observed

that though the growth of the state shows in double digit, the pace of employment generation has been very

slow. The benefits of this double digit growth have not reached equally to the hill areas of the state and the

population of these area still suffer with poor quality of employment. Majority of the workforce in

Uttarakhand is engaged in agriculture and their real earnings have declined resulting in rise in poverty. His

study has revealed that the policy measures have been successful in accelerating the growth, but, miserably

failed to generate gainful employment for the large section of the workforce in the hilly regions of the state.

Vishwambhar Prasad Sati studied the patterns and implications of rural-urban migration in the Uttarakhand

Himalaya. He observed that the Uttarakhand Himalaya comprises of primitive economy and around 70 % of

the population is engaged in agriculture for their livelihood. But limited cultivable land (13%), high

population growth (18.8% decadal; 2011), low output from agriculture, poverty and malnutrition (40%

people live below poverty line; 2011) forced people to out-migrate from the region. The other factors

responsible for the migration of people from the hilly regions are geographical constraints, inadequate

infrastructural facilities, industrial backwardness, high educational level and unemployment. He has also

observed that in the hilly districts where the main occupation is agriculture and due to low output from it,

outmigration is very high. He has listed the major causes of youth migrating out from Uttarakhand as –




Socio-Economic condition, lack of access to rural credit, unemployment, basic infrastructure facilities and

poverty. He has stated tourism as the major economic activity, but, its share in the local economy is not

substantial yet.

Dr. Preeti Rani and Dr M. K. Agarwal conducted a case study of New Tehri District in 2009 to study the

unemployment problem among Youths of Uttarakhand State. They stated that many problems such as

poverty, social disorder, insecurity, maintenance of law and order, etc are as a result of unemployment in the

state. They emphasised on the policies which were announced and launched by the Government to tackle

the problem of unemployment, but, failed to achieve the target of full employment. The authors found

various factors responsible for the failure of these schemes and they being, large number of old age people,

lack of employment among women, lack in mobility, extreme and difficult climatic conditions, natural

problems, geographical conditions such as rugged and difficult hilly terrain, etc. they suggested that the

Government planning and policies should be employment-oriented which will be beneficial to the people of

the state.

Geographic and Demographic Profile of Uttarakhand

Uttarakhand, the 27th state, was formed on 9th September, 2000. Earlier it was the part of northern UP. It is

located on the foothills of the Himalayan mountain ranges. The total area of Uttarakhand is 53483 Sq. Km

out of which the hilly area is 46035 Km i.e. 86 % and the plains area is just 14 %. Out of the total 13

districts of the state, only three are plains districts and rest all ten are hilly districts. This largely hilly state

has scenic beauty with snow-clad mountain peaks, glaciers, many sacred and revered Hindu temples, the

sacred rivers Ganga and Yamuna flowing through it, etc. Two hill stations, Nainital and Mussoorie are the

most preferred tourist destinations in India. The Char-dhams, the four most sacred and revered Hindu

temples of Badrinath, Kedarnath, Gangotri and Yamunotri are nestled in the mighty mountains. For the

adventure sports such as skiing, river rafting, trekking and mountaineering, Uttarakhand offers ideal

atmosphere and locale. Therefore, it has a vast potential in adventure tourism, leisure, and eco-tourism.

According to the 2011 Census, the total population of Uttarakhand was 1,00,86,292 out of which, the male

population was 51,37,773 i.e. 51 % and the female population was 49,48,519 i.e. 49 %. 70 % of the

population of Uttarakhand lives in rural area and agriculture is the main occupation of these people. Out of

the total area of Uttarakhand, the agriculture or cultivable land is only 13 %. As per the 2012 World bank

data, the labour force participation ratio of the Uttarakhand State is 54 %. As per 2002 BPL Census revised

in 2011-12, about 6,19,718 families are below the Poverty Line in Uttarakhand.

Though the large number of workforce is engaged in agriculture, factors such as low output from the land,

unemployment, poverty, etc are forcing the people mainly youth to migrate from the state in search of better

living conditions.




Veer Chandra Garhwali Paryatan Yojana(VCGPY)

To promote tourism in the state and to generate employment through it, the Uttarakhand Government

launched the scheme ‘Veer Chandra Garhwali Paryatan Yojana’ in June 2002.

The main objective of this scheme is to generate employment for the original residents of Uttarakhand. The

Uttarakhand Tourism Department implements this scheme through its regional and district offices. The main

focus of this scheme is on strengthening the transportation facilities within the state.

The salient features of this scheme are:

Assistance in the form of Bank Loan and subsidy to the unemployed youth for setting up enterprises

in activities related to the promotion of tourism such as vehicles, hotel, fast food centres, tourist

information centres, etc.

A loan amount up to a maximum of Rs. 20 lakhs is offered to the beneficiary for setting up tourism

related enterprises.

The beneficiary’s compulsory contribution is 12.5 % of the total project cost.

In addition, a subsidy of 25%, up to a maximum of Rs. 5.00 lakhs is given to the beneficiaries under

the scheme.

Objectives of the Study

This study was undertaken with following objectives:

To assess the employment generation due to the scheme.

To assess the economic impact of the scheme on its beneficiaries.

To assess the social impact of the scheme on its beneficiaries.

Methodology

1. Primary Data: A structured questionnaire and Schedule was used to collect the primary data.

Personal interviews helped in getting insights from the beneficiaries of this scheme.

2. Secondary Data: The secondary data was collected from various Government organisations such as

Uttarakhand State Tourism Department, Ministry of Rural Development, Ministry of Labour and

Employment, etc. More secondary data was further taken from related web sites, newspapers and

magazines.

The area of the study was Nainital, Almora and Udham Singh Nagar districts of Uttarakhand. Random

sampling technique was used to select the respondents from the beneficiaries of the scheme.

Data Analysis and Interpretation

The collected data was tabulated and analysed using various statistical tools such as Mean, Mode, Median,

Standard Deviation, etc. SPSS V20 software was used for the analysis. To check the normality of the data

distribution, the data was tested using descriptive statistics, Kolmogorov-Smirnov and Shapiro-Wilk tests.

From the test results it was found that data was not normally distributed. Therefore, non-parametric tests

were used to assess the economic and social impact of the scheme on the respondents. The Kendal-Tau

correlation was used to study the relation between the various factors/variables. Bar graphs and pie charts




have been used for the presentation of the various findings. The analysis has been divided into two

categories- economic impact and social impact.

1. Economic Impact Assessment

The analysis of the data revealed that after availing the scheme, the family income of 98 % of the

respondents increased. 94 % of the respondents agreed that their debt/ liability has reduced due to the

increased income after availing the scheme. This has been shown in Chart -1 and Chart - 2 respectively.

Table -1

Characteristics of the respondents Response No. of Respondents (in

%)

Family income has increased due to the Scheme Strongly agree 27.45

Agree 70.59

Neutral 1.96

Disagree 0

Strongly disagree 0

Chart - 1 Chart - 2

Table - 2

Characteristics of the respondents Response No. of Respondents (in %)

Improvement in healthcare and hygiene Strongly agree 3.92

Agree 66.67

Neutral 29.41

Disagree 0

Strongly disagree 0




Data from Table - 2 shows that approximately 70 % of the respondents agreed to improvement, in their own

and their families’ healthcare and hygiene. They can afford the healthcare facilities for themselves and their

family members after availing the scheme. This has been depicted in Chart - 3.

Table - 3


Increase in ability to meet family

expenditure

Strongly agree 11.76

Agree 86.27

Neutral 1.96

Disagree 0

Strongly disagree 0

Table - 3 reveals that there is increase in the ability of 98 % of the respondents to meet the family

expenditure. Only 2 % of the respondents found no change in their ability to meet family expenditure which

has been shown in Chart - 4.

Chart - 3 Chart - 4

55% of the respondents agreed that they can now afford higher education to their children after availing the

scheme. There is still a large percentage of the respondents i.e. 43 % who said they still can’t afford to

provide higher education to their children. This has been shown in Table - 4 and Chart – 5.

Table - 4

Characteristics of the respondents Response No. of Respondents (in

%)

Increase in ability to afford higher education

of children

Strongly agree 7.84

Agree 47.06

Neutral 43.14

Disagree 1.96




Strongly disagree 0

Chart - 5

Table - 5


Scheme helped in generating employment Strongly agree 35.29

Agree 64.71

Neutral 0

Disagree

Strongly disagree 0

Data from Table - 5 and Chart - 6 reveals that 100 % of the respondents agreed that the scheme helped in

generating employment for them. The scheme has been successful in creating a sustainable income

generating activity for the beneficiaries.

Chart - 6 Chart - 7




After availing the scheme, the minor assets such as vehicle, household appliances, home improvement, etc

have increased. It was observed that 4 % of the respondents “strongly agree” and 73 % of the “agree” that

their assets increased after availing the scheme. 23 % of the respondents reported that they had no change in

their assets after availing the scheme. This has been depicted in Table - 6 and Chart - 7.

Table - 6


Assets increased Strongly agree 3.92

Agree 72.55

Neutral 23.53

Disagree 0

Strongly disagree 0

Table - 7 : Correlations

Scheme helped

in generating

employment

Increase in

ability to meet

family

expenditure

9Kendall's tau_b

Scheme helped in

generating employment

Correlation Coefficient 1.000 .313*

Sig. (2-tailed) . .026

N 51 51

Increase in ability to meet

family expenditure

Correlation Coefficient .313* 1.000

Sig. (2-tailed) .026 .

N 51 51

*. Correlation is significant at the 0.05 level (2-tailed).

Interpretation: From the above table it can be observed that there is mild correlation between the

employment generation and increased ability to meet family expenses at 5 % level of significance. This

means that the people who got employment due to this scheme felt that their ability to meet family

expenses has increased.


Scheme helped

in generating

employment

Debt / liability

reduced due to

the scheme

Kendall's tau_b

Scheme helped in


Correlation Coefficient 1.000 .412**


N 51 51

Debt / liability reduced due to

the scheme

Correlation Coefficient .412** 1.000


N 51 51

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: From the above table it can be observed that there is moderate correlation between the

employment generation and reduction in debt/liability after availing the scheme at 1 % level of significance.




This indicates that the people who got employment due to this scheme were able to pay off debt/liability to a

large extent.


Scheme helped

in generating

employment

Increase in

ability to afford

higher

education of

children

Kendall's tau_b

Scheme helped in




N 51 51

Increase in ability to afford

higher education of children



N 51 51



employment generation and increased ability to afford higher education of their children at 5 % level of

significance which means that the people who got employment due to this scheme found increase in their

ability to afford higher education of their children.


Scheme helped

in generating

employment

Standard of

living improved

Kendall's tau_b

Scheme helped in




N 51 50

Standard of living improved



N 50 50



employment generation and improvement in the standard of living at 5 % level of significance which means

that the people, who got employment due to this scheme, have felt that their standard of living has

improved.

2. Social Impact Assessment

From the data analysis and the below charts i.e. Chart - 7, 8, 9 and 10, it was observed that the confidence

level of all the respondents has increased. Their socialising with people has increased. The respect from the

family members and from other people has increased for them. Their social status is enhanced.




Chart - 7 Chart - 8

Chart - 9 Chart - 10


Scheme helped

in generating

employment

Confidence

level improved

Kendall's tau_b

Scheme helped in




N 51 51

Confidence level improved



N 51 51






employment generation and increase in confidence level at 1 % level of significance. This implies that the

people who got employment due to this scheme felt more confident in taking financial and other decisions

in the house.


Scheme helped

in generating

employment

Decision

making power

improved

Kendall's tau_b

Scheme helped in




N 51 51

Decision making power

improved



N 51 51



employment generation and enhancement in decision making power at 1 % level of significance which

means the people, who got employment due to this scheme, were able to take decisions more effectively and

efficiently.


Scheme helped

in generating

employment

Socializing with

people has

increased

Kendall's tau_b

Scheme helped in




N 51 51

Socializing with people has

increased



N 51 51



employment generation and increase in the socialising with people at 1 % level of significance. This means

the socialising of the respondents has increased due to the employment they got after availing the scheme.


Scheme helped

in generating

employment

Social status

has improved

Kendall's tau_b

Scheme helped in




N 51 51

Social status has improved Correlation Coefficient .368** 1.000





N 51 51



employment generation and improvement in social status at 1 % level of significance. That means the social

status of the respondents increased due to the employment they got after availing this scheme.

Data Findings

It was observed that the scheme has been successful in generating employment for the respondents. By

getting continuous employment, their savings have increased, their debts and liabilities have reduced. They

are able to meet the family expenses. There is improvement in healthcare and hygiene and they are able to

afford higher education for their children. The statistical analysis revealed that the scheme helped the

respondents in getting employment which enhanced their earnings. As a result their ability to afford

healthcare, insurance etc increased and their standard of living improved. The financial status of the

respondents has improved after vailing the scheme.

There is not only a positive economic impact but also a positive social impact of the scheme on the

respondents. The empirical and statistical analysis of the collected data revealed that there has been an

increase in the decision making ability. The confidence of the respondents increased after availing the

scheme. Their socialising with people has increased. There is an increase in the respect given and shown by

the family members and other people to the respondents. Their social status has improved due to the

scheme.

Conclusion

Poverty and unemployment are directly related to each other and are two main problems every under-

developed and developing nation is struggling to resolve. Rehman (2012) has defined poverty as the state of

inability to attain a minimal standard of living in terms of low income, inadequate housing, poor health, low

work and life expectancy. Nobel Laureate and renowned economist Amartya Sen argued that the poor

people need financial assistance to bring them out of poverty.

Shastri (2009) in his article ‘Micro-finance and Poverty Reduction in India-A Comparative Study with

Asian Countries’, suggested that the self-employment is an effective remedy for unemployment and to

eradicate poverty and for that micro-finance is very necessary. Microfinance can provide income generating

activity which can elevate the financial status of the poor and thus help in reducing or eradicating poverty.

Veer Chandra Garhwali Paryatan Yojana has been instrumental and successful in providing employment to

the beneficiaries. This scheme has improved their financial status. Many beneficiaries who had availed the

scheme for opening a restaurant/hotel, employed many other people, thereby, generating more employment

and in turn helping them to come out of poverty. This study has shown that with a little aid from




Government, marginalised and poor people, those who are struggling to make both ends meet can not only

improve the economic condition of their households but also of the society and hence of the nation.

Uttarakhand Government had launched this scheme with an intention to generate employment. This scheme

has been successful in achieving the objective of the Government. Another objective of launching this

scheme was to develop the transportation facilities in the state. The rural, hilly regions lack in transportation

facilities and this poses a big challenge for the residents of those regions. Majority of the beneficiaries of

this scheme availed the scheme for purchasing transport vehicles. This has improved the connectivity

between the towns.

Bibliography:

Census of India-2011, Registrar Publication, Government of India, New Delhi.

Kharas, H., Hamel, K., & Hofer, M.,2018, ‘The start of a new poverty narrative’, Future

Development, World Bank's Brookings Institute, June 19, 2018.

Kumar, S., ‘Work Participation Among Indian Youth’, Centre for the Study of Developing Societies,

Delhi.

Mamgain, R. P., ‘Employment, Migration and Livelihoods in the Hill Economy of Uttarakhand’,

Doctoral Dissertation, Jawaharlal Nehru University, New Delhi, 2004.

Mamgain, R. P., ‘Growth, Poverty and Employment in Uttarakhand’, Working Paper , Institute for

Human Development, New Delhi, 2007

Mamgain, R. P., and Mehta, B., ‘Employment and Income in Uttaranchal: Trends and Policy

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Mamgain, R. P., Awasthi, I. C., & Mehta, B., ‘Employment Generation in Uttaranchal : Constraints

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Study Conducted in 2009 of New Tehri District)’, Journal of Commerce and Trade, Society for

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Rehman, Z. U., ‘An Evaluation of Microfinance Scheme in Andhra Pradesh’, PhD Thesis submitted

to Acharya Nagarjuna University, 2012.

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Sen, Amartya, (2000), ‘Development as Freedom’, Anchor Books, New York.

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