RESEARCH EXPLORER -2 ISSUE

Vol . I : Issue. 2

ISSN:2250 - 1940
Research Explorer
ISSN : 2250 - 1940
Vol I : Issue. 2
July - December 2012

DUAL MODE SERIES RESONANT DC-DC CONVERTER FOR WIDE LOAD
VARIATIONS
Harine Kanagaraj
Institute of System Science
National University of Singapore, Singapore

ABSTRACT
In order to satisfy demands like higher conversion efficiency and power density, many topologies and
control methods are proposed. Among them, dc to dc series resonant converters with zero voltage switching
features are getting more attention. This paper presents the design of a dual mode full-bridge series resonant
converter (FB-SRC). It is operated in series resonant mode at normal loads or higher loads. The switching
frequency is varied to regulate the output voltage. The fixed frequency phase shifted pulse width modulation,
on the other hand, is used to adjust the effective duty cycle and regulate the output voltage at light loads . The
proposed converter exhibits high conversion efficiency for wide range load conditions.
Keywords : Conversion efficiency, phase-shifted full-bridge converter, series resonant converter (SRC),
Zero volatge switching (ZVS), pulse width modulation (PWM)

Introduction

of ZVT soft-switching power converters is the
installation of resonant components that reduce
conduction losses [6].

The switching devices in converters with a pulse
width modulation (PWM) control can be gated to
synthesize the desired shape of the output voltage
or current. However, the devices are turned on and
off at the load current with a high di/dt value. The
switches are subjected to a high voltage stress and
the switching power losses increases [2]. The turn
on and turn off losses could be a significant portion
of the total power loss. The electromagnetic
interference is also produced due to the high di/dt
and dv/dt in the converter waveforms. The
disadvantages of the pwm control can be eliminated
if the switching devices are turned on and turned
off when the voltage and current are forced to pass
through zero crossing by creating an LC-resonant
circuit , thereby called a resonant pulse converter
[4].

The main benefit of the converter is the extension
of resonant time using two clamp diodes. The
improvement in the voltage and current stress over
th ose obtai ne d usin g tradi ti onal re so nant
components implies in reduction of switching losses
and the elimination of parasitic effect.
Due to its high current gain, series resonant
converters are mainly used for applications like arc
welding, electronic ballast, induction heating and
fluorescent lighting involving wide range load
variations.

Series Resonant Converter Principle of
operation
The series resonant converter shown in fig.1
converts dc voltage into ac through full bridge
inverter and then converts ac voltage again to dc.
It works on the basis of resonant current oscillation.
The resonating components and switching devices
are placed in series with the load to form an
underdamped circuit. The size of resonating
components is small due to the high switching
frequency. The operating frequency is generally

The primary design feature of ZVS PWM power
converters is the addition of an auxiliary switch in
the quasi-resonant circuit. Resonance is dominated
by the auxiliary switch, which generates resonance
and temporarily stops a period that can be
regulated, there by overcoming the disadvantages
of fixed conduction or cutoff time in a quasiresonant power converter. The main design feature
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Vol . I : Issue. 2

ISSN:2250 - 1940
snubber capacitors and subsequent turn on of the
reverse diode for conduction

close to the resonant frequency of the tank.
Operation with switching frequency lesser than
resonant frequency is called sub reson ant
frequency operation. The input voltage sees a net
capacitive tank circuit and facilitates ZCS. When
switching frequency is greater than resonant
frequency, the operation is termed as super
resonant frequency and the tank presents a net
inductive circuit which facilitates ZVS.

The delay time has to be small enough to prevent
the tank current from reversing before the switch
turns on.

The Resonance Concept
From a circuit standpoint, a dc-to-dc resonant
converter can be described by three major circuit
blocks as shown in the figure 2

Dual mode condition

The dc-to-ac input inversion circuit, the resonant
energy buffer tank circuit, and the ac-to-dc output
rectifying circuit

For a series resonant converter, the output
voltage is regulated by changing the switching
frequency. However, it is impractical to raise the
switching frequency at lighter loads due to the
limitation of semiconductor switch device. Several
schemes are proposed to solve this problem such
as burst mo de con trol [7] , turn off ti me
modulation,etc. The penalty is that the ZVS feature
is no longer kept. In this paper, the phase-shifted
duty cycle control with ZVS at a fixed highest
switching frequency is proposed to regulate the
output voltage at light loads. Although the phaseshifted modulation features the constant switching
frequency and ZVS function over wide input voltage
and output load ranges, its efficiency at heavy load
is lower than that of an SRC due to the high duty
cycle loss. Therefore, the proposed control scheme
adopts the frequency modulation with heavy-load
efficiency and the phase-shifted modulation [5] with
a better output voltage regulation and ZVS function
at light loads. Through this dual mode operation
higher conversion efficiency is fulfilled for widerange load variations.

The resonant tank serves as an energy buffer
between the input and the output is normally
synthesized by using a lossless frequency selective
network
Th e ac-to-dc co nversi on is ach ie ve d by
incorporating rectifier circuits at the output section
of the converter

Proposed Circuit and Its Operation
It consists of a full bridge inverter consisting of
four MOSFETS fed by a dc source. The next section
is the resonant tank section formed by a resonant
inductor and capacitor connected in series. Finally
a diode rectifier along with filter and load circuit is
used. Here Dc to Ac and again to Dc conversion is
carried out. Figure 3 shows the circuit diagram of
the proposed series resonant converter.

Zero voltage switching
When the PM-SRC is operated such that
its switching frequency is greater than the resonant
frequency of the tank, zero-voltage turn-on of the
inverter devices is possible because the effective
impedance offered by the resonant tank is
inductive. Tank current lags the input voltage. ZVS
ensures the inherent output capacitance in the
switching devices is discharged prior to switch turnon, thus prevent turn-on losses and generated EMI.

Fig 1 Proposed series resonant converter
The proposed FB-SRC has 4 MOSFET
switches Q A ~ Q D with the output parasitic
capacitors Coss, A ~ Coss, B. Lr and Cr forms the
series resonant circuit. A centre tapped transformer
of turn ratio n: 1:1 is used. Two rectifying diodes
D1 and D2 are employed. The filter capacitor is Co.
RL is the load resistance. The control signals of
QA/QD and QB/QC are complementary. Dead
times preventing the simultaneous conduction of
switches are inserted to delay the turn-ons of the

Basic requirements of ZVS
·
The device should turn off with a positive
current flowing through it
·
The delay time and turn off current have to
be large enough to completely charge/discharge the
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Vol . I : Issue. 2
switches. When QA/QD or QB/QC conducts, the
input power is transferred to the output load. Zero
voltage switchings are achieved by the resonance
of Lr and the equivalent capacitor formed by the
parallel connection of Cr and the output parasitic
capacitors of the switches during dead times.

ISSN:2250 - 1940

The gate pulses applied to the above converter
is shown in fig 3. The leading leg switches are given
by S1 and S1’ and lagging leg switches are given
by S2 and S2’. The tank current i(t) is rectified by a
diode bridge rectifier and filtered by a capacitive
filter to get required output voltage. The magnitude
and wave shape of the resonant current depends
on fs, D and the load factor (Q) of the converter. Q
is defin ed as the ratio o f reson an t tank
characteristic impedance and the resistive load as
seen from the resonant tank.

Fig 3 The gate pulses for switching frequency
modulation mode
This mode of operation can be explained under
3 states.
They are:



First energy transfer state (t0 d” t d” t1)



First resonance state (t1 d” t d” t2)



First commutation state (t2 d” t d” t3)



For phase modulation full bridge inverter
with fully controlled devices is required as shown
in fig 3 each device is switched at 50% duty ratio
with the switching of the devices on the same leg
being complementary. As shown in fig 4, conduction
of switches on the same leg of the inverter (S1 and
S1’) is phase shifted with respect to the conduction
of switches on the lagging leg (S2 and S2’) , resulting
in the quasi-square input voltage.

First Energy Transfer State (t0 d” t d” t1) :

In this state, QB and QC are turned on, and QA
and QD are turned off. D1 conducts and energy is
tran sferre d to th e se co ndary throu gh the
transformer.



First Resonance State (t1 d” t d” t2)

All the switches are turned off during this
state. Since the inductor current iLr must be
continuous, it discharges Coss, A and Coss, D to
zero voltage, and charges Coss, B and Coss, C to
VI. Then zero- voltage turn-ons of QA and QD can
be achieved. As long as iLr is larger than the
reflected secondary load current, D1 is still
conducting. The load power is supplied by Lr.
Fig 2 Gate waveforms of series resonant
converter



In this state, QA and QD are turned on, and
QB and QC are turned off. iLr flows through body
diodes DA and DD initially. Since the energy at the
primary side is insufficient, the load power is
supplied by C0.

Modes of Operation
There are two modes of operation in the
proposed FB-SRC.
They are:



B. Phase shift modulation mode

Frequency Modulation keeping duty ratio
constant



The gate signals for phase shift modulation
scheme are presented in fig 4. For the PS PWM, it
can be observed that dead times. During which ZVS
is accomplished, are inserted before turning on
switches . It can also be noticed that before ZVS
takes place, there are two resonance states (t1 ~ t2
and t3 ~ t4) .

Phase Shift Modulation keeping switching
frequency constant

A.

Switching frequency modulation mode

The gate signals for switching frequency
modulation mode is shown in fig 3.
Research Explorer

First Commutation State (t2 d” t d” t3) :

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Vol . I : Issue. 2

ISSN:2250 - 1940
the required energy. The transformer is in freewheeling state. A short circuit appears at the
transformer secondary . To achieve ZVS, the energy
stored in the equivalent resonant inductor must
be larger than that in the equivalent resonant
capacitor.



Commutation State (t4 d” t d” t5) :

During this state, the transformer primary is
short-circuited. A voltage of -VI is across the Lr –
Cr combination. Therefore, iLr decreases linearly
until its magnitude is larger than the reflected load
current. Then, the transformer starts to transfer
energy and the other half switching cycle begins.
D1 is turned off, and D2 conducts. Co is also
charged.

Fig 4 The gate signals for phase shift modulation
scheme
Here there are 5 operating states
They are :



Energy transfer state ( t0 d” t d” t1)

Defining Terms and Assumptions



First resonance state (t1 d” t d” t2)



Linear Discharge state (t2 d” t d” t3)

The resonant tank has a natural frequency
determined by
the resonant capacitor and
resonant inductor.



Second resonance state (t3 d” t d” t4)

fs = switching frequency



Commutation state (t4 d” t d” t5)

fr = resonant frequency



Energy Transfer State ( t0 d” t d” t1) :

Pin = Input power
Pout = Output power

In this state, QB and QC are turned on, and D1
conducts. The input energy is transferred to the
secondary through the transformer, and C0 is
charged.



D = Duty ratio
= Efficiency

First resonance state (t1 d” t d” t2) :

At t1, QC turns off. iLr stops increasing , then
charges Coss, C to VI and discharges Coss, D to
zero voltage. DD conducts at t = t2 . The equivalent
resonant inductor (Lr) and the equivalent resonant
capacitor ( Cr + Coss) starts resonanting. Since the
primary current is larger than the reflected load
current , D1 still conducts and D2 carries no
current.



where Lr and Cr are resonant tank elements
D = Ton / Ts/2
Where Ts = switching period
VI = Input voltage
Vo = Output voltage short-circuited. A voltage
of

Linear Discharge state (t2 d” t d” t3) :

M = gain = Vo/ VI

DD conducts at the end of the last state.
Therefore QD can be turned on at zero voltage .
The primary voltage is zero. The energy stored in
Lr is transferred through the transformer to the
secondary.



The parameter Zc called the characteristic
impedance of the tank is defined as
Capacitor Cr can be found by the following
relation

Second resonance state (t3 d” t d” t4) :

Cr = 1/ùrZc

This state starts when QB is turned off. iLr
charges Coss, B to VI and discharges Coss, A to
zero voltage. Then DA conducts and the resonance
stops. During this state, Lr is not capable to supply
Research Explorer

Inductor Lr can be given by
Lr = ùr/Zc
Current is given by
i = VI / Zc
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Vol . I : Issue. 2

ISSN:2250 - 1940

Conclusion

S.B.Zheng and D.Czarkowski, “ Modelling and
digital control of a phase-controlled series-parallel
resonant converter” , IEEE Trans. Ind. Electron .,
vol. 54, no.2, pp. 707-715. Apr. 2007.

To avoid poor output voltage regulation and
low conversion efficiency at light loads, a dual-mode
control strategy is presented in this paper. The FB
SRC is operated under switching frequency
modulation for most of the load range to achieve
ZVS and low switching noises. For the lighter loads,
the FB SRC is operated under phase-shifted duty
cycle modulation to regulate the output voltage and
maintain the ZVS feature. The proposed two-mode
control scheme for a FB SRC is especially suitable
for applications with wide input voltage and load
variations.

Z.M.Ye, P.K.Jain, and P.C.Sen, “ A full-bridge
resonant inverter with modified phase-shift
modulation for high frequency ac power distribution
systems”, IEEE Trans. Ind. Electron., vol. 54, no.
5, pp. 2831-2845, Oct. 2007
G.B.Koo, G.W.Moon and M.J.Youn, “New zerovoltage-switching phase-shift full-bridge converter
with low conduction losses”, IEEE Trans. Ind.
Electron ., vol.52, no1, pp 228-235 , Feb 2005.

References

Y.K..Lo, S.C.Sen and C.Y.Lin , “ A high efficiency
ac-to dc adaptor with a low
standby power
consumption”, IEEE Trans. Ind. Electron., vol.55,
no.2, pp. 963-965, Feb 2008.

M.K.Kazimierczuk , “S ynthe sis o f phase
modulated resonant Dc/Ac inverters and Dc/Dc
converters”, Proc. Inst.elect. Eng. B – Elect. Power
Appl. . vol. 139, no.4, pp. 387-394, Jul 1992.

B.R.Lin, K.Huang, and D.Wang, “ Analysis and
implementation of full-bridge converter with current
doubler rectifier “, Proc. Inst. Elect. Eng. – Elect.
Power Appl., vol 152, no.5, pp.1193-1202, Sep.
2005.

M.K.Kazimierczuk and D.Czarkowski, Resonant
Power Converters, New York : Wiley- Interscience, 1995
X.Ruan and Y.Yan,” An improved phase shifted
zero-voltage and zero-current switching PWM
co nverte r”, in Pro c. IEEE. Appl . Po we r.
Electron.conf.1998, pp 811-815.

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Vol . I : Issue. 2

ISSN:2250 - 1940
Research Explorer
ISSN : 2250 - 1940
Vol I : Issue. 2

TOBACCO USE AMONG STUDENTS IN A RURAL COLLEGE IN ANDAMAN
AND NICOBAR ISLANDS
Dr. B. Prabhuram
Associate Professor and Head,
Department of Cooperative Management, Mahatma Gandhi Government College,
Mayabunder-744 204, Andaman and Nicobar Islands

ABSTRACT
The present study was conducted in order to find out the use of tobacco among the students in a rural
college of North and Middle Andaman District. From the total 556 students, 283 were boys (51 per cent) and
273 girls (49 percent). Majority of them hailed from rural areas and stayed in hostel. About 180 (32.4 per
cent) were using tobacco in both smoking as well as smokeless form (boys 53.7 per cent and girls 10.3 per
cent); 72 (12.9 per cent) were past tobacco users and remaining were non-users. Smokeless form of tobacco
use was more popular among boys and girls and girls did not smoke. Use of tobacco was high among the
students hailing from rural areas and among the students staying in hostels.
Key Words : Tobacco use, college, Students, Andaman and Nicobar Islands

Introduction
Tobacco is the second major cause of mortality
leading to the death of one in ten adults worldwide,
accounting for about 5.4 million deaths every year
constituting approximately 12 per cent of global
deaths. The death toll from tobacco is expected to
increase to eight million a year by 2030; and if the
current trend continues unchecked, there will be
up to one billion tobacco-related deaths during 21st
century, many of which will be from developing
countries. The state of the epidemic of tobacco
use in India was comprehensively described in the
recently completed Global Adult Tobacco Survey
(GATS). Over 35 per cent of adults in India use
tobacco, primarily smokeless (about 164 million),
but there are 42 million users of both smokeless
and smoked products, and an additional 69 million
who only smoke. India is the second largest
consumer of tobacco in the world; second only to
China where tobacco is popular both in smokeless
as well smoked forms. With the growing evidence
of harmful and hazardous effects of tobacco, the
Government of India enacted various legislation and
comprehensive tobacco control measures. The
Government of India enacted comprehensive
legislation, the “Cigarettes and Other Tobacco
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Products (prohibition of Advertisement and
Regulation of Trade and Commerce, Production,
Supply and Distribution) Act” (COTPA) as a multimeasure law in May 2003. This Act sought to curb
tobacco use through a variety of measures,
including requiring smoke free public places,
banning advertising of tobacco products and sale
of tobacco products to minors, mandating pictorial
depiction of health warnings on tobacco packets,
and prohibiting tobacco sponsorship of sports and
cultural events. Rules were framed to implement
this law, most recent was “The Cigarettes and Other
Tobacco Products (Packing and Labeling) Rules,
2006” on July 5, 2006. India has played a strong
leadership role in the global fight against tobacco
and in the development of the WHO Framework
Convention on Tobacco Control (FCTC).

Materials and Methods
In the Union Territory of Andaman and Nicobar
Islands, there are four colleges established by the
Government – three situated in Port Blair the capital
of the UT (each one in Arts and Science; Education
and Engineering) and the fourth one in a rural area
of North and Middle Andaman district. The study
was carried out in Mahatma Gandhi Government

Vol . I : Issue. 2
College, Mayabunder in North and Middle Andaman
district(offers three year degree course in six
disciplines in arts and science) being the only college
in rural area; covering total students of 556. A
se lf-admin iste re d, an on ymou s pre-te sted
questionnaire for tobacco use survey of college
students consisting of questions related with the
identification data and tobacco use by students was
used. The self-administered questionnaire was
administered in the class room. Students were
explained about how to fill up the questionnaire
and motivated to provide authentic information.
They were assured that all information would be
kept confidential. The survey was carried out in
February and March 2012. There were 556 (86.5
per cent) responses out of 643 students on roll; 87
students (13.5 per cent) were absent. From a total
of 556 students 283 were boys (85.6 per cent to
total boys of the college) and 273 were girls (87.2
per cent to total girls).

ISSN:2250 - 1940
Students used tobacco because it made them
feel alert, quieted their nerves or helped them
control their appetites – or just because smoking
or chewing tobacco felt good and not smoking or
not chewing tobacco doesn’t. The arguments for
not consuming tobacco are logical and persuasive.
Hence the reasons for not continuing the tobacco
use by past users i.e., 72 students were recorded.
Among 72, two-third of the students has tasted
tobacco just for fun because of peer group influence.
About one-fourth informed that they did not find
the taste in food after having consumed tobacco.
Use of tobacco among rural and urban students:
The table 2 depicts that out of total 441 rural
students more than one-third of them (i.e. 35.1 per
cent) used tobacco in this college, as compared to
22 per cent of the urban students 115. Not a single
urban girl was using tobacco during the survey
period in this college. The inter-area (rural vs.
urban) differences in use of tobacco among the
college students are significant statistically as the
calculated c2 value is higher than table value at
the 5 per cent level.

Result
A total of 556 (51 per cent boys and 49 per cent
girls) students (17-25 years old) were studied.
Among these, 70 per cent of students (almost an
equal number of boys and girls) were residing in
hostels. Of the 556, 441 students i.e. 79 per cent
came from rural area and the remaining 115 (21
per cent) from urban area. Of the total students,
about 39 per cent had studied in first year degree
course; 32 per cent in second year and 29 per cent
were in third year. Table 1 depicts that among 556
students of the college, 180 of them i.e. 32.4 per
cent were current tobacco users in this college. The
boys had high rate of current tobacco use (53.7
per cent) as compared to the girls (10.3 per cent).
Three hundred four students i.e., 54.7 per cent
(Boys 29.3 per cent and Girls 80.9 per cent) had
never used tobacco at any point of time in their
past life. Seventy-two students forming 12.9 per
cent had not used or tasted tobacco just before 30
days of the survey.

Table 2: Rural-Urban Classification of
Students using tobacco

Boys n (%) Girls n (%)
Rural

28(10.3)

48(17.0)

24(8.8)

83(29.3)

221(80.9)

283(100)

273(100)

152 (53.2)

28 (10.3)

180 (32.4)

Boys n (% )
Hosteller

111 (56.9)

Day Student 41(47.1)
Total

152 (53.2)

Girls n (% ) Total n (% )
20 (10.4)

131(33.6)

8 (10.1)

49 (29.5)

28 (10.3)

180(32.4)

Hostellers=390 Students (Boys=195; Girls=193)
Day Students =166 (Boys=87; Girls=79)
c2 = 0.348 Table value: 3.84

Table value: 7.81

Research Explorer

25(21.7)

Table-3: Classification of Tobacco Users
as Hostellers and Day Students

556(100)

2 = 155.84

0

Consumption of Tobacco by Hostellers and Day
students:

304(54.7)

Total

25(47.1)

c2 = 5.37 Table value: 3.84

72(12.9)

Not Consuming

155(35.1)

Rural =441 Students (Boys=232; Girls=209)
Urban=115 Students (Boys=51; Girls=64)

180(32.4)

Past users of tobacco

28 (13.4)

Total

Boys n (%) Girls n (%) Total n (%)

Current tobacco users 152 (53.7)

127(54.7)

Urban

Table-1: Distribution of Tobacco Users
Tobacco Use

Total n (%)

7

Among the hostellers, 33.6 per cent used tobacco
while it was 29.5 per cent in day students (Table
3). Even though there was higher per cent of
tobacco users in boys hostel than the day students

Vol . I : Issue. 2
(56.9 per cent vs. 47.1 per cent), there was no much
difference between the hostellers and days students
of the girls in use of tobacco. The c2 statistics show
that there is no significant difference in use of
tobacco between hostel students and day students.

ISSN:2250 - 1940
Figures in parentheses indicate percentage
(Yule Co-efficient of association Total: 0.43;
Boys: 0.30 & Girls: 1)
The college was established in 1994 at
Mayabunder. Till then the college did not have play
ground and the existing indoor games facility would
accommodate less than 10 per cent of the students.
Further, no co-curricular and extra-curricular
activities were conducted in this college since
November 2009. The teaching work starts in this
college at 9.00 am and ends at 2.40 pm. The college
could not engage the students especially the hostel
inmates in productive way after college hours.
He nce it may be i nferre d that th e po or
infrastructure might be the reasons for additional
tobacco users year after year. The structural
weakness in implementing the ban on tobacco use
on campus was another reason for more tobacco
users. More than half of the tobacco users used
tobacco during the college hours that formed 17
per cent to the total students surveyed. There was
no comprehensive tobacco control effort in this
college which is substantiated that two-third of the
employees, especially the teachers were also tobacco
users. The use of tobacco products by the teachers
and other staff in front of the students sends a
dangerous message about the social acceptability
of tobacco use on the campus. Hence it may be
said that tobacco use by parents, teachers and
friends are associated with students’ tobacco habits
in the present study.

Factors Associated with tobacco use: An attempt
was made to assess the factors associated with
tobacco use among the college students. The
factors were assessed in two phases: at the student
level and at the college level. As student level factors
it was observed that among the current tobacco
users, 50 per cent of them entered the college with
the habit of tobacco use who formed 16.2 per cent
to the total students of the college. The prevalence
and intensity of tobacco use progressively increased
with the number of years in this college. For
instance, the use of tobacco increased from 16.2
per cent in the beginning of the first year to 27.2
per cent in beginning of second year; to 31 per
cent in the beginning of third year and ultimately
to 32.4 per cent at the end of third year. Thus it
may be said that these 16.2 per cent of the students
influenced their friends which became 32.4 of the
tobacco users in this college. It was observed that
178 out of 180 current tobacco users and all the
past tobacco users i.e. 72 students in this college
said that their friends were the first source to uptake
tobacco use. Thus peer pressure is an important
direct factor that influenced the tobacco use of
young people. However, the parental influence
cannot be ignored in tobacco use among the college
students. It is noted that out of the total tobacco
users in this college 91 per cent of them belonged
to the family in which at least any one family
member, parents or siblings consumed tobacco
while only 9 per cent belonged to non-consuming
family (Table-4). When 89 per cent of the tobacco
using boys belonged to tobacco consuming family,
the entire tobacco using girls belonged to the
tobacco consuming family.

Discussion
This is the first study in Andaman and Nicobar
Islands to assess the prevalence of tobacco habit
among college students. The study had two
limitations, first: it was based on tobacco users’
self report; second: the tobacco use among staff of
the college was based on personal identification or
personal count, which might have been prone to
recall bias. This study has showed that nearly half
(45.3 per cent) of respondents had used a tobacco
in the past month and one-third (32.4 per cent)
currently used tobacco and similar results were
obtained in a survey conducted among U.S. college
students in 1999 which reported 45.7 per cent of
students had used a tobacco in the past year and
32.9 per cent consumed tobacco the tobacco
cu rren tl y. Whil e ci gare tte smo ki ng w as
predominant among health care students in Jaipur,
this study pointed out that the smokeless tobacco

Table-4: Distribution of tobacco users
according to the tobacco consuming family
and none consuming family -wise:

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use was predominant practice among this college
boys and girls, reflecting the cultural practices of
the community. According to GATS (Global Adult
Tobacco Survey) 2009-10 report, 34.6 per cent of
adults currently used tobacco in India (47.9 per
cent of males and 20.3 per cent of females). This
study indicated that the prevalence of tobacco use
among college students was less than the national
average especially among girls – 10.3 per cent but
the use of tobacco among the boys was above the
national average i.e.., 53.7 per cent. This study
reported some good news; there was no smoking
habit among college girls. The social and cultural
taboo attached to smoking by young girls was
reflected in the present survey. In this college,
tobacco use was more popular in smokeless form.
The simple reason was that the students found
convenient to use tobacco anywhere at any time.
Some students saw it as being less harmful than
smoking. The smokeless tobacco needs as much
attention in control efforts because of high
prevalence of spitting leading to an unhygienic
environment.

have simply followed in the first step of their
parents; if mother and father used tobacco, chances
were good that the children would also.

Conclusion:
The decision to use tobacco is a lifestyle choice
that impacts health, longevity and the quality of
life. College appears to be a time when many
students are trying a range of tobacco products
an d are in dang er o f de ve lopin g ni co ti ne
dependence.
Many studies have shown that
tobacco free workplace policy was found to have a
si gn ifican t associati on w ith l ow er tobacco
prevalence. College offers a potential site for
interventions to discourage tobacco use. One key
component is to make college buildings including
hostels tobacco free. Hence tobacco cessation
programme should be initiated on the campus.
There is need of community based tobacco
cessation facilities. Much more survey needs to
be carried out in urban colleges of these islands in
order to build comprehensive data base for future
policy decisions on tobacco control and cessation
programmes.

All the students including the tobacco users were
aware that tobacco was harmful; however, they
were unsure about the type of damage it causes.
All of them were only aware that tobacco causes
cancer. While all were aware of the relationship
between tobacco and cancer, they did not realize
that an even stronger link existed between cigarette
smoking and coronary heart disease. This is proved
from the reasons for not continuing the tobacco
habit recorded in this study: only insignificant
po rtio n of the past u se rs said that th ey
discontinued due to health problems. Despite all
the students including the tobacco users said that
tobacco is injurious to health, they have continued
to use tobacco. It is not ignorance that moves the
students to use tobacco. By the time they were in
school most know that use of tobacco is dangerous.
Then the reason for starting tobacco might be that
they did not identify with illness and death, viewed
as old people problems. The students might have
thought that life would go forever. Another reason
was peer pressure. No teenagers wanted to appear
different or strange; the group mentality might have
been very strong during these years. For many of
the students, tobacco use might be a means of
becoming an accepted part of the group. That’s
why the majority of the past users replied that they
used tobacco just for fun. Some students might
Research Explorer

References
1.

Editorial, World No Tobacco Day 2011: India’s
progress in implementing the Framework
Convention on Tobacco Control, Indian Journal
of Medical Research, May 2011: 455-457.

2. Editorial, It is time to make smoke free
environments work in India, Indian Journal of
Medical Research, May, 2007: 599-603.
3. El-Amin, Salma El-Tayeb., et al., The role of
parents, friends and teachers in adolescents’
cigarette smoking and tombak dipping in
Sudan, Tob Control 2011; 20:94-99.
4. Gao, Jia Ning, et al., Workplace Smoking
Policies and their Association with Male
Employees’ Smoking Behaviours: A crosssectional survey in one company in China, Tob
Control, 2011; 20: 131-136.
5. Government of India, Ministry of Health and
Family Welfare, Global Adult Tobacco Survey:
Fact S he et I ndia 2009-10, M umbai:
International Institute for Population Science.
6. Gupta, P.C. and C.S. Ray, Tobacco, education
& health, Indian Journal of Medical Research,
October 2007; 126: 289-299.
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7. Gupta, Prakash C. et al., Smokeless Tobacco:
A Major Public Health Problem in the SEA
Region: A review, Indian Journal of Public
Health, 2011; 55(3): 199-209.

ISSN:2250 - 1940
14. Mishra, Gauravi A. et al., Workplace tobacco
cessation program in India: A success story,
Indian J ournal of Occupational and
Environmental Medicine, 2009; 13(3): 146-153.

8. HRID AY ( He alth Re late d I nformati on
Dissemination Amongst Youth), Tobacco
Control Laws and Initiatives in India: Issue
Based Factsheets, New Delhi, n.d.

15. Narain, Raj, et al., Age at Initiation and
prevalence of tobacco use among school
children in Noida, India: A cross-sectional
questionnaire based survey, Indian Journal of
Medical Research, March 2011; 133: 300-307.

9. Jiloha, R.C. Tobacco Smoking: How far do the
legislative control measures address the
problem? Indian Journal of Psychiatry, 2012;
54(1): 64-68.

16. Satyanarayana G. et al., A Smoking Survey of
College Students in India: Implications for
Designing Antismoking Policy, Japan Journal
of Cancer Research, 1991; 82: 142-145.

10. Kaur, Jagdish and D.C. Jain, Tobacco Control
Po li ci es i n In di a: Impl emen tati on and
Challenges, Indian Journal of Public Health,
2011; 55(3): 220-227.

17. Singh, Iqbal., et al., Prevalence of Tobacco
Habits Among Health Care Students in Jaipur,
JK Science, 2010; 12(3): 116-119.

11. Kishore, Surekha, et al., Tobacco Addiction
Amongst Adolescents in Rural Areas of District
Wardha, JK Science, 2007; 9(2): 79-82

18. Sinha, D.N. et al., Tobacco Use among Youth
and Adults in Member Countries of South-East
Asia Region: Review of Findings from Surveys
under the Global Tobacco Surveillance System,
Indian Journal of Public Health, 2011; 55(3):
169-176.

12. Man-kit Leung, C. et al., Fighting Tobacco
Smoking – a Difficult but Not Impossible Battle,
International Journal of Environmental Research
and Public Health, 2009; 6(1): 69-83.

19. Rigotti, Nancy A., et al., US College Students’
Use of Tobacco Products, JAMA, 2000; 284(6):
699-705

13. Mathur, Prashant and Bela Shah, Evidence
Building for Policy: Tobacco Surveillance/
Surveys and Research in India, Indian Journal
of Public Health, 2011; 55(3): 177-183.

20. Toghianifar, Nafiseh, et al., Smoking Cessation
Support Availability, Sources & predictors,
Indian Journal of Medical Research, June 2011;
133: 627-632.

SELP ACADEMY
SELP academy is a unit of SELP trust which established mainly for
providing in-depth coaching to the competitive examinations and
specialized in TRB, TET, NET, SET. Classes are conducted by eminent
professors and subject experts with intensive teaching and model
examinations. Success rate will be predetermined with restrictive
strength in each section of classes
Reader gracious study material with full coverage of syllabus will
be supplied to the candidates in the first class itself and reviewing the
performance in regular intervals.
Research Explorer

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Vol . I : Issue. 2

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Research Explorer
ISSN : 2250 - 1940
Vol I : Issue. 2

INEQUALITY AND GROWTH: CHALLENGES FOR INDIAN ECONOMY
Dr. Anurodh Godha
Assistant Professor,
Department of Commerce,
Vardhaman Mahaveer Open University, Kota (Rajasthan) India

ABSTRACT
India is the largest democracy in the world, something to be very proud of, but, does this democracy really
offer average Indian the choice that it ought to? Rapid economic growth over the past decade in India was the
main driver of poverty reduction, but, rising income and non income inequalities (e.g. inequalities in health,
education, and economic assets such as land) could be an inherent by-product of the growth process. Inclusive
growth focuses on creating opportunities rapidly and making them accessible to everyone but in India the
growth is not uniform across various sectors; and large cross sections of the population remain outside its
purview. Several economic, political and social factors need to be tackled for sustaining a rapid rate of growth,
as well as to make the growth inclusive.
Key Words: Inequality, Inclusive growth.

Introduction

gradation and it obviously gives us pride to see
highest Billionaires in Asia are from India. India is
roaring but I bet they need to save face to know
that India houses highest numbers of BPL (below
poverty line) people in world. Our malnutrition data
are worst. According to a recently conducted survey
by the NSSO, around one- fifth of rural India
survives on Rs 12 a day.

“The benefits of growth seems to have bypassed
the overwhelming majority of India’s population,
the Indian economy’s rapid expansion has actually
widened inequality, shrunken job opportunities and
reduced w ages” - National Commi ssion for
Enterprises in the Unorganized Sector (NCEUS).
The pain of hunger is the worst thing to happen
in someone’s life. We can never feel how it feels,
when there is nothing to eat, and it is impossible
for those people who take pills to increase their
appetite. We are living in a society where one person
is dieing of over eating and the other without food.

Looking at the darker side the growth is lopsided.
There are people in this country still who can’t
afford two square meals a day. We still find so many
people begging, picking rags and plastics from
garbage. The government instead of doing the
balancing act is playing facilitator to big industries.

Th e grow th of i ncome in equ al ity is a
phenomenon that is being witnessed in all
countries, both developed and developing, but in a
democracy like India, these inequalities are likely
to lead to social unrest because greater degree of
income inequality put lower impact of growth on
poverty reduction. As rising income inequalities and
the persistence of unacceptably high levels of non
income inequalities pose a clear and present danger
to India’s progress, so the paper advocates some
strategies to make that growth inclusive.

Likewise in the realm of health and education
and other human development indicators, India’s
performance has been far from satisfactory. The
rich-poor divide has increased and poverty
reduction figures of India are now lower than those
of Bangladesh. There are disparities among regions,
states, sectors, and communities. Among the states,
the north-eastern and the central regions, which
have large tribal populations, are lagging behind.
Among sectors, agriculture has fallen behind
industry and the service sector. Although some of
the poorest states are rich in natural and forest
resources, the predominantly tribal population is
unable to take advantage of this.

Since independence the Indian economy has
striven hard for improving its pace of development.
Notably in the past few years the cities in India
have undergone tremendous infrastructure up
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All countries: rich or poor, all administrators:
politicians or bureaucrats, all governments:
democratic or totalitarian, all systems: capitalist
or socialist have claimed to be working for “inclusive
growth”. They have all perhaps done their bit in
finding ways for such a growth. There are theories
and philosophies propounded for the purpose; there
are programmes and schemes announced with that
intent. There are measures and machineries put in
place. Governments have won and lost elections
on this issue. However, the issue remains there
today, as it was before centuries and decades.

ISSN:2250 - 1940

Challenges and Prescriptions: collective
efforts for inclusive growth
“If inclusive growth is the objective, we need to
shift focus from formal to informal sector given its
size,” - K.P. Kannan (a former commission member
of National Commission for Enterprises in the
Unorganized Sector)
The main problems in India are poverty &
corruption. The later one that is corruption is the
main cause for the underdeveloped condition of our
country even after 60 yrs. There is a race amongst
bureaucrats, politicians and entrepreneurs to
enrich themselves at any cost: corruption being a
central tool in this game of enrichment. Corruption
is definitely one of the ills that prevent inclusive
growth, rather, enabling the rich to get richer and
keeping the poor poorer. In India you have to work
hard to get something correctly and in legal way
but if you offer bribe to somebody in the middle
then your work would be over in minutes. Rajiv
Gandhi had once remarked that hardly ten percent
of the money earmarked for rural projects in India
reached the actual beneficiaries. Unfortunately, the
situation hasn’t changed much at all since.

What is Inclusive Growth?
Each one of us will have a different definition of
the term “inclusive growth”, different approaches
for analyzing the issue and different strategies for
arriving at solutions. However, the term, in common
parlance, would mean “growth by which everyone
benefits”. There cannot be any dispute with either
the letter or spirit of this definition. It is an ideal,
which must be achieved.
Growth is inclusive when it allows all members
of a society to participate in, and contribute to the
growth process on an equal footing regardless of
their individual circumstances. Inclusive growth by
its very definition implies an equitable allocation of
resources with benefits accruing to every section
of socie ty . The re are some attri bu te s of
inclusiveness and these are:

The most disquieting aspect of the widespread
corruption in India is the fact that it is not anymore
confined to politicians or the government machinery
alone. It is prevalent amongst almost every section
of the society at every level. It does not shock
Indians anymore to know that not only the
politicians, ministers and IAS & IPS officers are
corrupt but even the judges, professors, doctors
and NGO organisations are.

Opportunity: Is the economy generating more
and varied ways for people to earn a living and
increase their incomes over time?
Capability: Is the economy providing the means
for people to create or enhance their capabilities in
order to exploit available opportunities?

The study of world phenomenon on corruption
has repeatedly branded India as one of the most
corrupt countries in the world. Unfortunately, this
view has not disturbed most of the Indians at all
and they do not seem to care as to what others
think of them.

Access: Is the economy providing the means to
bring opportunities and capabilities together?
Security: Is the economy providing the means
for people to protect themselves against a temporary
or permanent loss of livelihood?

The ‘educated’ Indian is well aware of the
condition of the poor, the apathy of the corrupt
politician and the flawed system, but is too self
centred, busy in making the most of the ever
ballooning stock market, they are not at all bothered
about the system, everyone want to be a part of
the ‘dirty game’ that is politics, movies like Rang
De Basanti are rare to make and if produced than
these type of movies put impact on Indian youth
only in theatres.

In India growth is far from inclusive. We all know
it, we see the beggars on the streets, about the
biggest slums in the world, we know of the cleaning
lady who cannot afford treatment for her ailing
husband, we read about the farmer suicides in
Punjab and Maharashtra but who went to India
Gate with candles??? Who talked hours together
in Main TV channels??? Who came voluntarily to
fight their case...??? We all understand their plight;
we even sympathize and empathize with them, for
the ten minutes after reading an article in a
newspaper or seeing an amputated beggar on the
street.
Research Explorer

Now, what can be the future of the Indian society
in such conditions? Corruption exists in all societies
at all levels, especially developing ones. The point
is how serious we are about tolerating it. It is sad
that those who are in charge of the nation today do
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Vol . I : Issue. 2
not appear to realise this and still are merrily going
ahead with their dealings unconcerned about the
harm that it would inevitably do to the larger
national cause.
Th e strate gy to tackl e corru ptio n mu st
necessarily be multi-pronged – at the legal level,
the enforcement level, as well as at the educational
and social levels. Efforts at inclusiveness of society
are predestined to failure unless more than just a
semblance of attention is brought about on the
corruption front. The system would be changed only
when there is a perfect legislation that the hands
that give bribe and take them should be cut and
when it is implemented the scenario would change.
One of the tools to deal with the corruption issue
is to bring about greater transparency, both in the
policy making and in the delivery systems. The
Right to Information Act was a step in this direction.
Though in its infancy still, its implementation does
appear tardy. Governments have been defensive in
their thinking.
No growth can be inclusive unless it takes
adequate care of women and children. In India
exploitation of labour is widely prevalent. Despite
the promulgation of minimum wages, the feudal
system in the rural areas and industry in the urban
conglomerates continue to fleece labour, paying
them wages far below than prescribed.
Child labour has been banned by law in India
and there are stringent provisions to deter this
inhuman practice. But millions of young children
continue to work in roadside eateries, glass
factories, carpet looms or sweeping and cooking in
homes which is a violation of the Child Labour
(Prohibition and Regulation) Act.
To stop this there is a need to tackle poverty
which is the main reason driving parents into
pushing their young children to work instead of
sending them to schools. This mammoth problem
is one of the main challenges to resolve in
addressing inclusive growth. We need to attract
children from poverty stricken families to schools.
Mid-day meal schemes of Governments have met
with partial success. Again, however, lack of
transparency has ensured that funds and rations
are misappropriated and misused.
Ri gh ts o f wo me n, ch il dren , mi no ri ty
communities and the other marginalised sections
of society must be constantly watched and
protected if we wish to reach our goal of a truly
developed society.
In recent years, India has become a country
of demonstrations, agitations and ‘bandhs’
(forcible closure of shops, offices & transport). For
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ISSN:2250 - 1940
the slightest pretext, trains are stopped, buses and
private vehicles burnt and offices and business
establishments forcibly closed. This leads to
unimaginable loss of man hours and economic
output, besides loss of confidence of the outside
world for making investments. A peaceful and
stable environment is a must for sustained foreign
and domestic investments.
In this regard, one has to look at initiating proper
reforms in the criminal justice system, especially
in the police. The Supreme Court has time and
again reminded the Government of the need to
reform the police force. The outdated Police Act of
1861 needs to be replaced with a modern Act. The
Police force needs to be made more responsive and
accountable. It should no longer be a tool in the
hands of corrupt politicians but responsible to the
law of the land. Only then would it be able to provide
a secure atmosphere for economic activity to
prosper and remove age old impediments towards
inclusiveness.
While on the subject of economic growth and
its impediments, we must also refer to the impact
and consequences of increasing world fuel prices
and the associated threat that looms large over
India’s future economic growth as oil prices go
through the roof, India’s situation is becoming
difficult. Within the last one year, the fuel prices
have more than doubled from 65 dollars to nearly
150 dollars a barrel of crude oil, upsetting the entire
economic applecart. We need to do some serious
reflection on how to tackle this. We have to pay
much more attention towards alternative sources
of energy.
“An overall growth of nine per cent will further
increase income disparity between agriculture and
non-agriculture households, unless around 10
million people currently employed in agriculture
find remunerative non-agricultural employment,”
- RBI Governor Y V Reddy.
Every major industrialised economy in the world
has followed a path which began with agriculture
being the main source of income for the majority of
the population and ended with agricultural
employment being a very small fraction of the total
labour force. In India more than 60 per cent of the
population depended on agriculture while it
contributes only 20 per cent to the GDP.
Agriculture is extremely important for inclusive
growth, since a large majority of the Indian
population is dependent on farming. Improved
agricultural productivity would bring in its wake
increased family incomes for this vast majority. It
is possible that growing urbanization, improved

Vol . I : Issue. 2

ISSN:2250 - 1940
include elements of technology training and
introduction to new practices, to improve farm
efficiencies and productivity. It is also equally
important to invest in value addition, in
marketing chains and food processing.

standards of living and consumption, would see a
build up of pricing pressures on cereals, pulses
and oilseeds in India. As an opportunity, this gives
scope to revitalizing investments and returns in
agriculture.
The centre of focus for the business has shifted
somewhere else but not the villages and agrarian
economy. To achieve high pay-offs in terms of
growth and inclusiveness we have to pay special
emphasis on development of rural infrastructure
such as rural roads and housing, primary and
secondary education, health and sanitation SMEs
and labour-intensive export-oriented industries
and social sector expenditure like MGNREGA.

•

•

There should be a policy of distribution of
cooking fuels like kerosene and domestic gas
at subsidized prices, as well a food grains at
below market prices to urban poor.

•

Increased public spending on education and
health care, including strengthening the midday
meal programme and offering scholarships to
the needy

•

Empowering the scheduled castes, scheduled
tribes, other backward classes, minorities,
women and children, socially, economically and
educationally.

•

True inclusive development would mean that
even the poorest Indians get a chance to move into
the modern, high-productivity sectors. For that,
we will need greater liberalization. Three reforms
will be especially important. One, we have to
create a entrepreneurial spirit, Two, new labour
laws that will give companies a reason to use less
expensive capital and more permanent labour,
Three, The national rural employment guarantee
scheme needs to be extended to urban areas where
most of the affected workers are likely to be found.
We believe some of the following reforms will also
ensure truly inclusive growth. These include:

Increased rural employment, including the
provision of a unique social safety net in the
shape of the Mahatma Gandhi National Rural
Employment Guarantee Programme.

•

Such contra-cyclical small-ticket targeted
government expenditure (eg. MGNREGA) attempts
to address the issue of a equitable distribution of
income and balanced growth. They are very basic
social security schemes at best and lodestones of
corruption at worst. But Inclusive growth doesn’t
mean farm loan waiver and the National Rural
Employment Guarantee Scheme only.

Increased credit availability, particularly to
farmers an d othe rs, and o fferin g th em
remunerative prices for their crops.

Ensuring that, through public investment, the
growth process spreads to backward regions
and districts of our country. Local selfgovernment, as elaborated in our Constitution,
provides the essential means of reconciling
‘accelerated growth’ with ‘inclusive growth.

•

The quantity and quality of public investment
(in electricity, irrigation, rural roads, and
storage and transport of food grains) in
agriculture and rural infrastructure needs to
be substantially increased.

•

R&D for innovation in agriculture needs to be
encouraged. The Green Revolution that
substantially increased food grain output and
productivity were as a result of better seeds
and technology. India needs to continue to
leverage global technologies to increase yields.

India has the third largest pool of scientists,
engineers and doctors in the world, but it has yet
to reach anywhere near its full potential with a
majority of its vast population still illiterate or semiliterate. There are around 550 million youths in
the country, almost half of the total population.
However, due to poverty and social inequalities and
caste system, more than a hundred million youths
are illiterate or uneducated. In rural India, drop
out rates of children attending school are very high.
There are many institutions in rural areas, but their
prospects are dim, because of lack of good
governan ce, lack of far-sighted poli cies on
education, etc.

•

Abolishing controlled prices, eliminating taxes
on inter-state movement of goods, allowing
farmers to sell directly to organised retail, and
removing restrictions on land holdings (which
are currently circumscribed by land ceiling
acts), leading to fragmented land holdings,
would increase productivity. It is important to

In fact, the challenges are mighty and it may
take long years to achieve the goal. Nevertheless,
we need to work towards the betterment of our
country through cooperation and collaboration.
We need to go to the base; we need to explore our
villages, not the forests and mineral resources only,
but their inner talents of the people. Being about

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Vol . I : Issue. 2
70% of our population are in rural India; the
development of the country depends totally on the
development of rural communities. And that
development will be achieved only when the people
are educated for what education is one of the most
powerful instruments to reduce poverty, inequality
an d so un d go vernance. The me an in g of a
democratic country will be clearer and clearer only
when its people are educated.
Literacy levels have to rise to provide the
skilled workforce required for higher growth. We
should give emphasis on building an intellectual
environment in our villages and rural areas. This
implies that the government should increase its
spending on educational sector far and wide across
the country.
Better governance is the need of the hour,
because the government in India still has a majority
stake in almost all essential sectors e.g. the crucial
sectors of health, sanitation, water arms, railways
etc. A well-functioning democracy should allow
citizens to have more voice in evaluating the quality
of services they receive, for governments and service
providers to be accountable, and for citizens to pay
directly for services received.
Without better governance, delivery systems and
effective implementation, India will find it difficult
to educate its citizens, build its infrastructure,
increase agricultural productivity and ensure that
the fruits of economic growth are well established.
To resolve these issues, there has been greater
accountability of politicians to the citizen, greater
ability of citizens to hold service providers to
account for the services they deliver. The elements
of reform, in our view, should comprise:
Encou rage
greater
private-sector
participation; the regulatory constraints need to
be removed. The private sector should take more
social responsibility and contribute towards making
growth more inclusive. There also ought to be
greater accountability for politicians and civil
servants. Allowing the private sector to provide
public services in most essential sectors such as
health, primary education, building infrastructure,
water supply and inner-city transport would solve
several important problems. It would enable the
government to fulfil its obligations to supply core
services, which are badly served. Citizens would
exercise choice over providers, and it would clearly
separate the role of provider and regulator, with
the government becoming the latter (regulator). By
decentralising provision of public services, the
government can unbundle responsibilities across
tiers of government to create checks and balances.
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This can only happen if the Government and
the private sectors become equal and willing
partners. All impediments in the path of publicprivate partnership should be removed. The
Government needs to come out with transparent
procedures for schemes like Special Economic
Zones (SEZ), and also make willing partners and
shareholders in the process to the people/farmers,
whose lands are acquired for this purpose.
Inflation, which is a major obstacle today to
make the growth inclusive, worst affect the poor
man. To reduce the impact of price hike on poor
people the government should subsidise only the
lowest income people and not special groups of
people, provide help to people in investing their own
skills and future incomes, playing the role in
economy as light as possible (to the regulatory
extent), making tax rates low and broad based, try
to keep the ratio of public debt to GDP under control
by limiting liabilities and finally applying rigorous
social cost benefit tests to all spending and
regulation decisions.
The main instrument for a sustainable and
inclusive growth is assumed to be productive
employment. Employment growth generates new
jobs and income for the individual (from wages in
all types of firms, or from self employment, usually
in micro firms), while productivity growth has the
potential to lift the wages of those employed and
the returns to the self-employed. After all, in many
lo w-in co me cou ntri es th e proble m is n ot
unemployment, but rather underemployment.
He nce, i ncl usive growth is n ot on ly abo ut
employment growth, but also about productivity
growth. Moreover, it is not only about wageemployment but also about self-employment which
means that returns to capital, land and other assets
matter to the income potential of the focus group
as shown in the identity above.

Conclusion
India has been endowed with some of the world’s
most essential minerals, beautiful places, cultural
diversities and capable & talented people. It is the
time to make the most of what other countries can
never even dream to have. There is much to be done,
but if done and done correctly and then nothing
can stop us from reaching the pinnacle of the world.

References:
www.ecomomictimes.indiatimes.com,
www.google.com, www.rbi.org.in,
www.economicshelp.org, www.economywatch.com,
www.financialexpress.com, www.indiamart.com

Vol . I : Issue. 2

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Research Explorer
ISSN : 2250 - 1940
Vol I : Issue. 2

MICRO FINANCE BY BANKS IN INDIA
Dr. C. Paramasivan, Ph. D.,
Assistant Professor & Research Supervisor

R. Anandaraman
Ph. D Full Time Research Scholars
PG & Research Department of Commerce, Periyar EVR College, Trichy – 23

ABSTRACT
Micro finance is the basic concepts helping to self-employment people, low income groups, poor entrepreneurs
in rural areas. It provides thrift, credit, savings and other financial services and products of small amount to
poor in rural, semi urban or urban areas. Micro finance is the target raising their income, improve standard
living, increasing economic growth, and reduce poverty. Micro finance is another aspect given empowers to
poor women especially for handicapped women, divorce women, widow women. This paper focus on the role
of banks in micro finance in India
Key words: Entrepreneurship, Eradication of Poverty, Social Capital, Bank Finance

Introduction

marketing, money transfer, life cycle product, fund
transfer etc. Microfinance means provide small
loans to poor families helping them to engage in
productive activities of small business namely petty
shop ,flower shop, idly shop, candle making,
vegetables, vending, wire basket, weaving etc.

The term Micro finance refers to extending
the whole range of financial services from savings
to credit to micro insurance to micro enterprises
and a lot more for the poorer sections of society
whose scale of operations are so small and hence
are generally excluded from the purview of the
existing service providers. The effectiveness of
microfinance is better realized by the deprived
sections when their capacities are also enhanced
along with access to financial services. In the Indian
context, the search for supplementary delivery
mechanism to provide microfinance started with
internal introspection regarding the innovations,
which the poor had been traditionally making, to
meet their financial service needs.

Review of literature
Amutha. J and Ramakrishnan (2011) suggest
th at the G overnmen t o f In di a en co urag es
entrepreneurship among micro entrepreneurs
through EDP. Cooperative banks linkage to retail
credit outlets of the formal banking sector
comprising 12,000 branches of district-level
cooperative banks, over 14,000 branches of
Regional Rural banks and over 30,000 rural and
semi-urban branches of commercial banks; in
addition to 1,12,000 cooperative credit societies at
village level.

Micro Finance
The concept of micro finance was introduced
Grammen bank of Bangladesh by Mohammed
yunus severing over 7.34 million people with
recovery rate of 98.35 percent. Micro finance refers
to the provision of financial service to low income
groups and self employment people. Micro finance
has come to include a broader range of services
li ke savin g, cre di t, in su rance, remittance,
Research Explorer

Kayar Kami (2011) concluded that the Self Help
Group really helps the women folk to participate in
organized activities apart from helping members
to mobilize funds. The present study concludes that
the respondents are economically and social
empowered by becoming members of SHGs in
Tuticorin District.
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Saravanan. S (2008) said that micro finance
Programmes have proved that is an effective
instrument for eradication of poverty. The spread
of micro finance and the mobilization of women
serve the twin purposes for enabling the state to
withdraw from economic activities and diffusing
any form of resistance against the state in the
present economic conditions.

banks and saving amounted to Rs. 701630.28
Lakhs off which 6098034 SHG exclusively belongs
to women SHG and their savings amounted to Rs.
529864.47 Lakhs.

Table – 2 Bank Loans Disbursed to SHGs
Agency-wise
(Rs. in Lakhs)

Narbada Ghimire (2011) concluded that even
though microfinance collateralizes social capital
and makes credit accessible to the poor more than
traditional banking institutions, some of the
poorest women remain excluded, particularly those
who might represent high risk in the eyes of other
group members who evaluate the appropriateness
of loan.
Narayanan. B (2008) pointed that micro credit
Programme has become an important tool to
eradicate po verty in In di a. It is gathe ri ng
momentum to become a major force in India. The
Self-help groups (SHG) model with bank lending
to groups of poor women without collateral has
become an accepted part of rural finance.

Source: NABAR Report 2011
Table no 2 reveals that the loan disbursed
to SHG with bank position as on 31 st March
2011.commercial bank disbursed loans to 667941
SHG which amounted to Rs. 972455.27 Lakhs of
which Rs. 879829.07 Lakhs disbursed exclusively
to women SHG during the period. Co- operative
bank disbursed loans to 229620 SHG which
amounted to Rs. 162556.33 Lakhs off which Rs.
95956.54 Lakhs disbursed exclusively to women
SHG during period 2011. Regional rural bank
disbursed loans to 296773 SHG which amounted
to Rs. 319761.59 Lakhs off which Rs. 286447.78
Lakhs disbursed exclusively to women SHG during
the perid-2011. As on whole Rs. 145477.19 Lakhs
disbursed to 1196134 SHG which includes Rs.
1262233.39 Lakhs exclusively to 1017218 women
SHG

Table – 1 Savings of SHGs with Banks
Agency –Wise
(Rs. in Lakhs)

Table – 3 Bank Loans Outstanding Against
SHGs Agency - Wise
Soruce: NABARD Report 2011

(Rs. in Lakhs)

Table no 1 indicates that the savings of SHG
with bank wise position as on 31st March 2011.
There are 4323473 Lakhs SHG opened account
with commercial bank, of wise 3655322 Lakhs SHG
exclusively belongs to women. Savings of the SHG
with commercial banks amounted to Rs. 42300.42
Lakhs off which Rs. 332560.07 Lakhs by women
SHG. Savings of the SHG with Co-operative banks
amounted to Rs. 135084.19 Lakhs of which Rs.
78059.57 Lakhs by women SHG. Savings of the
Regional bank Rs. 143539.67 Lakhs off which Rs.
119244.83 Lakhs by women SHG. As on whole,
there are 7461946 SHG were opened account with
Research Explorer

Source: NABARD Report 2011
Table 3 reveals that the bank loans outstanding
against SHGs wish position as on 31st March 2011.
Rs. 2188325.67 Lakhs loan outstanding in
commercial banks including of Rs. 1848765.4
Lakhs exclusively from women SHG Rs. 190785.65
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Vol . I : Issue. 2
Lakhs outstanding. In co-operative banks including
of Rs. 114678.62 Lakhs exclusively from women
SHG Rs. 743005.23 Lakhs loan outstanding. In
regional rural bank including of Rs. 648931.55
Lakhs exclusively from women SHG. The table
concludes that the total loan outstanding amounted
to Rs. 3122116.55 Lakhs which includes Rs.
2612375.57 Lakhs exclusively women SHG.

Table – 4 Non Performing Assets of Bank
against SHGs Loans Outstanding
(Rs. in Lakhs)

ISSN:2250 - 1940
As on total there are 469 MFIs were disbursed loans
to the SHG which amounted to Rs. 760518.02
Lakhs.

Suggestions
Banks are playing a key role in the field of socio
economic development of the country trough
providing micro finance to the rural women SHG
in the country. With the help of SHG, mobilisations
of micro savings in the banks have been increased
in a remarkable position. Hence, bank and micro
finance is the interdependent mechanism which
promotes the smooth running of the banking
services as well as SHG.
SHGs in the India is one of the largest
segment in the world which consists of 43, 23,473
groups with the savings of Rs.423006.42 Lakhs in
th e ye ar 2011.Thi s is o ne of the n otable
achievement of the SHG with help of bank and
micro finance institution. Hence, the

It i s se en fro m abo ve table n o 4 th at
nonperforming assets of banks against SHGs loans
outstanding bank wise position as on 31st March
2011. NPAs against SHG were highly recorded in
co-operative banks (7.04% ) followed by commercial
banks (4.88% ) and regional rural bank (3.67% )
average NPAs against SHG as march 31st 2011 is
4.72 percent. Commercial bank placed first in
amount wise NPAs (Rs. 106698.92 Lakhs) followed
by regional rural bank (27281.73 Lakhs) and cooperative bank (Rs. 13430.15 Lakhs).

Table - 5 Bank Loans provided to MFIs
during 2010-2011 and Loans outstanding
(Rs. in Lakhs)

Banks the banks should encourage the SHG to
increase the savings habits also deal more micro
finance Bank financial assistance to SHG is not in
appreciable manner due to adverse mantality of
the banking personnel. Hence, the banking
personnel should change their attitude towards the
SHG
Loan distributed to SHG by banks during the
year 2011 is also progressive trends as compare to
the previous years. Commercial banks are the
largest loan distributors to the SHG. But it compare
to the saving of SHG, the amount of loan will be
nominal. Hence, the commercial banks should
come forward to liberalise the loans to the SHG
Loan outstanding is one of the indicators which
reflect the repayment of the loan wider in a time.
Most of the banks are unable to recover their loans
to weaker section and poor people due to personal
and political reason. In the situation bank should
develop a voluntary mechanism to reduce the loan
outstanding in due course.
NPA against SHG loans is also quit common,
which can not eliminate completely. The banks
should aware about the utilization of the loans
amount by the beneficiary

It is seen from the above table no 5 that the
loans provided to MFIs during 2010-2011 and loan
outstanding as on 31st March 2011. Commercial
banks provided loans to SHG through 460 MFIs
amounted to Rs. 760102.33 Lakhs regional rural
bank provided loans to SHG through 9 MFIs
provided loans to SHG through has not applicable.
Research Explorer

Conclusion
Micro finance is an important tool of poverty
alleviation programmee in India which helps to
re duce the poverty i n rural are as. Overall
performance of micro finance, commercial bank has
good performance in India. Co-operative bank has
very poor performance of microfinance through self
help groups. Regional rural bank must improve the
overall progress of MF. Especially the banker
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5. Narayanan. B (2008). Micro credit in India-an
Overview, Micro Credit and Rural Development,
pp 21-26.

provided credit to MFI has poor performance in
India. Banks are responsible to actively involved
in the field of Micro finance wide social development
of the country. Cooperative banks must meet the
rural people to promote the Micro credit and provide
liberal micro finance to needed people and make
them as a self sustainable person in the society.

6. Narbada Ghimire. (2011). Micro finance as a
Policy Tool for Women Empowerment, Oregon
State University, pp 1-33.
7. Neeta Tapan. (2010). Micro Credit Self Help
Groups and Women Empowerment, New
Century Publication, New Delhi.

Reference
1. Amutha. J and Ramakrishnan. (2011). Role of
women Self Help Groups in Co-operative Bank
Linkage-with Reference to Nagapattinam
District, Tamil Nadu Journal of Co-operation.

8. Paramasivan.C. (2012). Women Empowerment
Issue and Challenges, Regal Publications, New
Delhi.
9. Prasenjit Bujar Baruch. (2009). Self Help
Groups and Asset Creation: A Case Study of
Deharkuchi Gaon Panchayat of Nalbari District
Assam, Journal of the Centre for Micro Finance
Research, Volume. 1, No. 1, pp 183-194.

2. Aranganathan. T Sundar. K and Sathees
kumar. L (2008). Micro Credit and Rural
Development, Sabanayagam Publication,
Chidambaram.
3. Jamie Morgan and Wendy Olsen. (2011).
Aspiration Problems for the Indian rural Poor:
Research on SHGs and MF, Institute for
De ve lo pmen t Pol icy an d M an ag emen t,
University of Manchester, pp 1-22.

10. Saravanan. S (2008). Micro Finance and Rural
Development in Tamil Nadu, kissan world,
Volume.35,No.8, pp 9
11. Sudhansu kumar Das and Sanjay kavi Das.
(2011). Micro finance and India’s, Rural
Economy, New Century Publications, New
Delhi.

4. Kayarkani. (2011). SHG Based Micro finance
on Women Development-an Empirical Study,
Self Journal of Social Science Volume. 2, No.
7.

SELP AWARD
Scientist and academicians with outstanding contribution in their
academic and social service fields are honoured by the trust by confirming
them awards on the recommendation of the experts. Resume should be
submitted to the president of the trust in the concerned application forms.
SELP- Young Social Scientist Award
Academician and researchers in the field of social sciences below the
age of 40 are motivated in their field.
SELP - Best Faculty Award
To motivate the college teachers belong to the social sciences subject
with the age of below 35 years are eligible to apply.
Ambethkar Social Service Award
Those who are contributing outstanding performance in the field of
upliftment of weaker sections are eligible to apply.
Periyar Social Reformer Award
Those who are contributing outstanding performance in the field of inter
caste marriage, abolition of caste and religions are eligible to apply.

Research Explorer

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Research Explorer
ISSN : 2250 - 1940
Vol I : Issue. 2

INDIAN BANKING INDUSTRY: A FOCUS STUDY ON HOUSING FINANCE
Dr. Kastoori Srinivas
Sr. Lecturer & Project Director
Department of Commerce, Vivek Vardhini (AN) College of Arts & Commerce,
Jambagh, Hyderabad- 95.

ABSTRACT
Shelter is a basic human need. To a modern man no other problem is as intriguing and mind boggling
as the housing problem. The capital cost of a house is very high multitude of the average income of the person.
Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for housing has
grown explosively. Having identified housing as a priority area in the present five year plan, the National
Housing Policy has envisaged an investment target of Rs. 2500 billion (App) for this sector. In order to achieve
this investment target, the Government needs to make low cost funds easily available and enforce legal and
regulatory reforms. The present paper analyzes the extent of role for public sector and private banks related
to housing finance.
Keywords: Banking, Housing banking, Housing Finance, ICICI, Commercial banks.

Introduction
attempting to reduce the scale of national housing
problems through public expenditure. Conversely,
improving housing conditions can have a major
in fl ue nce on po ve rty al le viati on throu gh
improvements in the living standards of low-income
families, and on poverty reduction via increased
employment opportunities. Furthermore, the
problems of poor housing and poor environmental
conditions are closely interrelated in many cities.

The scale of housing problems in Latin
America is vast, and the dimensions of the problem
varied and broad. Currently most Latin American
economies do not supply fully serviced dwellings
for all the population. The formal mechanisms of
housing production and financing do not reach all
segments of the population, while informal
mechanisms produce solutions that are either
substandard r expensive. Lack of sanitation
se rvices, overcrow din g an d in su fficie nt
environmental protection are the most pervasive
problems, while extended travel time to employment
and urban services centers worsens the problem
for most urban households. Poor housing affects
mostly low-income households in urban areas.
Rural housing problems are also serious yet attract
less attention.

Housing problems are not only complex and
severe, but vary in character from place to place.
Interventions in one housing sub market often have
spillover effects in others. The physical housing unit
superstructure is only one dimension of the
problem. Indeed the critical issue of poor housing
may have little to do with the condition of the
physical superstructure. Infrastructure (water,
sewerage, electricity, telephones, transport) and
access to employment are often as or more
important problems. Moreover, when it comes to
providing solutions, families and communities have
some capacity to build their own houses, but have
difficulty solving these o ther no n-divisible
problems.

One set of factors deserves emphasis.
Poverty is both cause and effect of poor housing
conditions. Lack of effective demand resulting from
the low income of households is the underlying
cause that prevents the private provision of houses
through normal channels for most of the population
an d pre sen ts a ch all eng e for g ove rnmen ts
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Bank activity in the Housing Sector: LowIncome Focus:

leaves to do documentation for housing loans.
Interest rates were also made by the institution a
major issue to think before deciding on housing
loans.

Bank experience with housing projects
shows the difficulties of establishing efficient and
sustainable mechanisms to reach the poor. Many
attempts have proven unsustainable and others
lacked the capacity to reach the target population.
Success often came with a high financial and
institutional price tag for governments. However,
IDB-8 mandates commit the Bank to emphasize
lending for poverty alleviation projects, and lending
for housing can be very effective in solving povertyrelated problems of households. Shelter and
sanitation services provided by housing projects
rank high in the priorities of households and
governments. Cautious adaptation of successful
cases will enable the Bank to effectively collaborate
with governments in establishing low-income
housing support mechanisms that respond to
ho useh ol d ne eds an d pri oritie s, and are
institutionally and financi ally sustai nable.
Management of the Bank will ensure that, as part
of the process of project identification, the relative
merits of different types of programs will be duly
considered. This consideration should include an
estimate of how the benefits of different programs
might be distributed over different income groups.

ICICI Opens New Era in Housing Finance
It is life time achievement for a person to
purchase a sweet home for him and his family. The
accommodation in Mumbai is affordable by and
large with the help of housing finance. One has to
keep in mind so many options available in the
market.
ICICI, a premier financial institution in the
country is offering best financial product with value
added services. It is not just finance but it is love
and affection, which is been transacted. Most
personalized service at your door step offered by
the ICICI for housing finance seekers. Like a family
member and good friend ICICI fulfills your need to
have your sweet home. When you want someone
to guarantee on your behalf to some financial
institution, it is quite embarrassing. As if you are
beggar, begging for your own money. ICICI is giving
loans only on your credentials. There is no need to
give any guarantor to ICICI.
If you are lucky enough and had won a lottery
or your father has given a large sum in his will or
you have got casual income in lumsum and you
are in a position to repay entire loan at one go,
then you have to pay penalties. But ICICI is
welcoming such steps and imposing no penalties
on prepayment of loans. Most competitive interest
rates and services at your door step, so that you
do not bunk office hours, is been offered by ICICI.
People working in ICICI are real assets since most
professionalism and polite in manner gives ICICI
true sense of belonging in the industry. With hitech technology ICICI also offer on-line processing
of your loan application.

Housing Finance:
Housing finance is becoming major issue
and major area of operation for corporate in India.
Besides private sector, semi government and
nationalized banks are in the race. With various
schemes to suit your requirement and with
attractive interest rates, these housing finance
companies are offering most attractive finance
options for home seekers.
Recently entered ICICI and IDBI bank have
changed total equations in the housing finance
market. With personalized housing finance loans
to suit every need are offered by ICICI. IDBI Bank
has first experimented with in-house customers,
and now in big leap with other corporate in the
league. It is learnt, that more then 100 crore
disbursement by ICICI, has started ball rolling in
the market. With most professional team, the
institution has achieved and created new horizon
in the housing finance market. The retail outlays
of the institutions are giving services, which home
seekers often do not get with traditional housing
finance companies. One has to take countless
Research Explorer

Commercial banks and housing finance:
The commercial banking sector, consisting
mainly of the nationalized banks, makes a small
contribution to house financing efforts. An overall
quantum equivalent to about 0.5 per cent of total
bank credit is earmarked every year for housing
finance for various category for borrowers,
excluding housing loans to banks own employees.
The major portion is to be provided by way of
subscriptions to the guaranteed bonds and
debentures of HUDCO and various state housing
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boards as well as by way of direct finance to
individuals / groups of borrowers belonging to
scheduled castes / tribes and economically weaker
sections of the community. The balance amount is
to be provide directly to HDFC. Commercial Banks
could also finance housing cooperative societies,
depending upon the feasibility of such housing
projects. In case any housing project requires big
investment, a consortium may have to be arranged
comprising commercial banks, HUDCO, LIC,
housing boards and other bodies, depending upon
the type of scheme.

areas for low /middle income groups. (v) Education,
health, social, cultural and other institutions /
centers which are part of housing projects and
considered essential for the development of markets
or townships. (vi) Shopping centers / markets
catering to the daily needs of residents of housing
colonies.

NHB’s as an apex in housing finance:
Th e Nati on al H ou si ng Ban k (NHB),
established by an Act of Parliament (1987) as an
Apex H ousing Fin ance I nsti tution , started
functioning from July 9, 1988. NHB is responsible,
inter alia, for the development of housing finance
system on sound lines. The Act empowers NHB to
make loans and advances, among others to
scheduled commercial banks in respect of their
lending for housing. Accordingly, a refinance
scheme has been formulated for scheduled
commercial banks in respect of certain categories
of housing loans extended by them. The refinance
scheme will be effective from January 1, 1989 and
specified housing loans granted by the scheduled
commercial banks as from that date will be eligible
for being covered under the scheme. Scheduled
commercial banks desirous of availing refinance
facilities from the NHB will have to execute an
agreement in the prescribed form and have an
appropriate resolution passed by their respective
Boards of Directors. The agreement will need to be
stamped in accordance with the laws in force in a
particular state where the agreement is executed.
After execution of the agreement, the bank
concerned will become eligible for refinance facility
from NHB in respect of housing loans sanctioned
on or after January 1, 1989.

The RBI’s Working Group on Housing (1978)
in its report on “Finance for Housing Schemes”
estimated that the total annual advances of banking
sector averaged at Rs. 75 Crore till 1980 and Rs.
100 Crore in 1991. Commercial banks do not lend
money for more than 10 years for any housing
scheme, because long-term housing loans have
problems like (i) problems of liquidity arising out
of the high statutory reserve ratio imposed by the
RBI, (ii) lack of technical and financial expertise
for appraising housing finance proposals and (iii)
the feeling that housing is basically a speculative
activity in nature. Another problem for banks is
that of security, against which they have to lend
for housing. Though house property has some book
value, it has negligible marketable value and further
legal problems make it difficult for banks to realize
the value of security in the event of default.
In view of these risks and peculiar nature
of h ousing finance, the commercial ban ks
cautiously refrained from this field. But, however,
of late, there has been a tremendous change in their
outlook.
Banks now have been directed to treat
housing as a priority sector for the purpose of
lending. Under the 20-Point Economic Programme,
the banks are required to extend direct loans up to
Rs. 5,000 to scheduled castes and scheduled tribes
and other weaker sections of the society. They also
finance Government agencies for constructing
houses exclusively for the benefit of scheduled
castes / tribes and low income groups where the
amount of loan does not exceed Rs. 5,000 per unit.

The objective of this refinance scheme is to
encourage construction of new houses / flats as
also extension and up gradation (including major
repairs) of the existing stock by persons belonging
to low income category, i.e., the small man first.
Refinance will be provided only in respect
of direct lending to individuals / groups of
borrowers (formal or informal, including cooperative
societies). Housing finance routed through Regional
Rural Banks by Sponsor banks will be treated as
direct lending of the latter. Refinance will be
restricted to housing loans – (i) up to Rs. 50,000
per individual for acquisition or construction of a
new housing unit not exceeding 40 sq.mtrs., of
built-up area, and (ii) up to Rs. 30,000.

Bank l oans can be avail ed for : ( i)
Construction of houses and hostels for scheduled
castes / tribes. (ii) Houses under the slum clearance
schemes. (iii) Family planning clinics and health
centers covered under the public health programs.
(iv) Housing schemes in urban and semi-urban
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The HFCs are now eligible to basic refinance
limit from NHB up to 5 times their Net Owned Funds
(NOF is paid up capital plus reserves). Additionally
a separate refinance limit is given to HFCs up to
Rs. 10 crore of NOF, additional refinance up to 3
times the amount of their deposits is allowed. For
HFCs above Rs. 10 crore of NOF, additional
refinance up to 2 times the amount of deposits is
allowed. Special consideration is given by NHB for
finance provided to rural areas by the concerned
HFCs. Taking all these factors into account, an
overall ceiling is kept at 15 times the NOF for all
types of refinance by NHB to HFCs.

requiring separate house), and replacement/ upgradation of kutcha/ unserviceable kutcha houses
and obsolescence/ replacement of old houses, etc.
had grown over the decades. Indian public sector
banks to lead and initiate to improve the housing
situations in india.

References
1. Basu D.N. and Mehta V.K., 1993. Housing
Finance System in India, Urban India, XIII (1),
January – June; 36 – 50.
2. Chitharanjan, K.V. 1986. Finance for Housing,
Economic Trends, 15, (17), September, 5 – 9.

The Extent Problem

3. Das Samantak, 1996. Housing Finance – Some
Relevant Issues. The Management Accountant,
December, 888 – 893.

The Working Group on Rural Housing for the
Eleventh Five Year Plan (2007- 12), has estimated
the total housing shortage in rural areas at 47.43
million units at the end of 2012. As per Government
estimates, the total housing shortage in the urban
areas, at the beginning of the 11th Plan period was
around 24.71 million units and is likely to go up to
26.53 million units by 2012. The urban situation
is equally appalling with 99 per cent of the housing
shortage pertaining to the Economically Weaker
Section (EWS) and Low Income Group (LIG)
categories. It is also of major concern that 90 per
cent of the rural housing shortage (approximately,
42.69 million units) are in respect of Below the
Poverty Line (BPL) categories.

4. Lal, V.D., 1987. Budget and Housing Sector.
Economic and Political Weekl, 22, (15), April
11 : 671 – 675.
5. Munjee, Nasser, 1985 – 86. Conceptualizing a
viable housing finance system. Capital (Annual
Number), PP : 47 – 50.
6. Nambirajan, R., 2001. Home loans and Tax
Benefits, Indian Infrastructure, May, PP 42 –
43.
7. Nathan Narendra, 2002. Cheap and Best.
Intelligent Investor, October 31, New Delhi, PP
50 – 56.

According to a report of ICRA†, housing loans as
a percentage of GDP have remained at around 7
per cent, significantly lower than the levels achieved
in most of the developed countries. It indicates the
extent of opportunity for deeper penetration of such
marke t. With impro vin g demo graphics and
economies of scale, the mortgage to GDP ratio is
likely to increase. The stakeholders, however, need
to reckon with problems and impediments in the
process which may arise from changes in the
economic cycle, uncertainties surrounding land
acquisiti on poli cies, chang es in the poli cy
framework and systemic risk that could arise out
of rapid credit expansion with lax due diligence
standards.

8. Various Annual Reports of NHB, New Delhi.
9. Various Trends and Progress of Housing in
India, NHB, New Delhi.
10. Annual Reports of HDFC, PNBHF, LICHF, SBOP
and Housefed 1990 – 91 onwards.
11. Narasimham N.V., 2005. The Indian Journal of
Commerce, Vol. 58, NO. 2, PP 71 – 78, April –
June, 2005.
12. Vasant D asai, 2006 – 07. Ban ks and
Institutional Management in India, Himalaya
Publishing House, Hyderabad, Housing Finance
(23), PP 372 – 389.

Conclusion

13. Annual Reports, ICFAI Publications in Banking
Sector, Journals and Other Response Books.

Housing shortage has always been a major
problem over the years in our country since
independence. Such shortage estimated as excess
households over houses including houseless
households, congestion (number of married couples

14. Jasmaindeep Kaur Brar and J.S. Paricha, 2005.
Article on Housing Loans – A Comparative Study
of Institutions published in the Indian Journal
of Commerce, Vol. 58, No. 2, April – June, 2005.

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Research Explorer
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Vol I : Issue. 2

E-GOVERNANCE IN INDIA: SOME ISSUES
Devendra N. Vyas
Asst. Professor, Department of Commerce,
G. S. Science Arts and Commerce College Khamgaon, Dist. Buldhana 444 303 (MS)

ABSTRACT
E-Governance means giving the citizens the choice of when & where the access to the government information
and services so that openness, accountability, effectiveness and efficiency may be achieved. E-Governance
would also cater to automated applications for the government sector, which helps in achieving SMART
governance which some define as - Simple, Moral, Accountable, Responsive and Transparent Governance. Egovernance is not just about government web site and e-mail. In this paper objective, challenges, opportunities
in terms of different models and issues for successful implementation of e-governance are discussed. For
successful implementation of e-governance Standards, Infrastructure, Legislations, Strategy all needs to be in
place. It requires a Global Vision and local implementation.
Key Words : E-Governance, accountability , back office automation, knit infrastructure

Introduction
E-governance is the application of electronic
means in (1) the interaction between government
and citizens and (2) in internal government
operations to simplify and improve democratic,
government and business aspects of Governance.
In simpler terms E-Governance means giving the
citizens the choice of when & where the access to
the government information and services so that
openness, accountability, effectiveness and
efficiency may be achieved. There are three aspects
of E-governance:

culture of self-service wherein citizens can help
themselves wherever and whenever required.
2) Government can become more integrated into
the community itself. Also government can
focus its resources where they are needed the
most.

The specific objectives are:

a) IT enabling the government functions something
similar to back office automation
b) Web enabling the government functions so that
citizens will have direct access and

1. To develop the high-level awareness and
co mmitme nt that wil l carry fo rw ard eGovernance for development.
2. To develop the capacities necessary to address
e-governance strategically.
3. To develop the human and data infrastructure
necessary for e-governance.
4. To implement pilot projects.

c) Improving government process.

Challenges:

Objectives of E-Governance:
The strategic objective of e-governance is to
support and simplify the process and activities for
government and citizens. For a government to
operate effectively government-community-citizens
infrastructure should be in place. A closed knit
infrastructure would yield to fold benefits, which
would save time and money for all concerned1) Citizens can enjoy faster, effective and timely
government services. This would also evolve a
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The fundamental strategic challenge faced by egovernance is e-readiness. This is a multi fold
challenge posing basic questions such as:
i)
ii)
iii)
iv)

Are the Data Systems infrastructure Ready?
Is the institutional infrastructure Ready?
What about the Legal infrastructure?
Can we cou nt o n the techn ol og ical
infrastructure?
v) Is the human infrastructure ready?

Vol . I : Issue. 2

ISSN:2250 - 1940

Phase III: Transaction

vi) Are we equipped with the leadership and
strategic thinking?

Wi th phase thre e th e co mpl ex ity of the
technology is increasing, but customer (G2C and
G2B) val ue w ill also be h igh er. Co mple te
transactions can be done without going to an office.
Examples of online services are filing income tax,
filing property tax, extending/renewal of licenses,
visa and passports and online voting. Phase three
is mainly complex because of security and
personalization issues – e.g., digital (electronic)
signatures are necessary to enable legal transfer of
services.

Opportunities for e-governance:
There is no dearth of opportunities for egovernance; government may follow some of the
popular models implemented world across, which
is bound to create varied opportunities.

Government-Citizen conjoined model:
With the advent of information technology, there
is a probabili ty of adoption of gove rnme nt
community conjoined model, which will inherit its
traits from the culture of each government and
society.

Phase IV: Transformation
The fourth phase is the transformation phase
in which all information systems are integrated and
the public can get G2C and G2B services at one
(virtual) counter. One single point of contact for all
services is the ultimate goal.

Service delivery model:
In the service delivery model, citizens will also
participate in decision making processes, replacing
the top-down process that characterizes too many
governments. The ultimate focus will be on effective
and efficient delivery of government services.

Issues for E-Governance:
The fundamental issues that need to be stressed
to meet good governance goals in India are

Gartner’s Model
This is an innovative model suggest by Gartner
(An E-business Research consulting Firm). As per
this model, the e-governance is a FOUR-phase
activity.

Funding:
Since there will be more focus on the long term
capitalisation of the investments made in this area,
though the e-governance could have very laudable
objectives and ambitious work plans, they have to
be weighed in terms of available resources both in
the plan sector and outside it. Funding is the
foremost issue in e-Governance initiatives.

Phase I: Information
In the first phase e-governance means being
present on the web, providing the external public
(G2C and G2B) with relevant information. The
format of the first government websites is similar
to that of a brochure or leaflet. The value to the
public is that government information is publicly
accessible; processes are described and thus
be come mo re tran sparent, w hich improves
democracy and service. Internally (G2G) the
government can also disseminate information with
static electronic means, such as the Internet.

Management of Change:
Most often, when the E-governance initiatives
are implemented, it would lead to mandatory
changes which do affect both people and levels of
the Delivery chain through which services are
delivered. The delivery of Government services
through the electronic media including Internet and
other IT based technologies would necessitate
procedural and legal changes in the decision and
delivery making processes.

Phase II : Interaction
In the second phase the interaction between
government and the public (G2C and G2B) is
stimulated with various applications. People can
ask questions via e-mail, use search engines for
information and are able to download all sorts of
forms and documents. These functionalities save
time. In fact the complete intake of (simple)
applications can be done online 24/7. Normally this
would have only been possible at a counter during
opening hours.
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Privacy:
The privacy of the citizen also needs to be
ensured while addressing the issues. Whenever a
citizen gets into any transaction with a Government
agency, he shells out lot of personal information,
which can be misused by the private sector. Thus,
the citizen should be ensured that the information
flow would pass through reliable channels and
seamless network.
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