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Panchayat Raj and Rural Development · Chapter 12

Chapter 12: Co-operative Movement, Rural Health, Sanitation and Rural Technology

What to remember

  • A co-operative is a voluntary association of people who work together on equal terms for their common economic needs; it works on the rule "one member, one vote".
  • Rural health runs on a three-tier network of sub centre, primary health centre and community health centre, with ASHA workers as the village link; sanitation has moved from toilets to the full idea of an ODF Plus village.
  • Appropriate rural technology means low-cost, easily maintained methods that use local resources, such as biogas and solar power.

1. Co-operative movement: meaning and principles

A co-operative society is run by its members, for the benefit of its members. Capital comes from members' shares, and profit is shared fairly or used for the society. The International Co-operative Alliance (ICA) lists seven principles:

  • 1. Voluntary and open membership.
  • 2. Democratic member control (one member, one vote).
  • 3. Member economic participation.
  • 4. Autonomy and independence.
  • 5. Education, training and information.
  • 6. Co-operation among co-operatives.
  • 7. Concern for community.

2. History in India

  • The Co-operative Credit Societies Act, 1904 was the first law. It allowed only credit societies.
  • The Co-operative Societies Act, 1912 allowed non-credit societies too, and created federations.
  • Later, co-operation became a State subject. States made their own laws. Andhra Pradesh has its own Co-operative Societies Act (1964). It also has the Mutually Aided Co-operative Societies Act, 1995, which lets members form self-reliant societies free of government control and equity.
  • NABARD (National Bank for Agriculture and Rural Development) was set up in 1982 as the apex body for rural credit and refinance, including to co-operative banks.
  • The Ministry of Co-operation was created at the Union level in 2021.

3. Constitutional position

The 97th Constitution Amendment Act, 2011 gave strength to co-operatives (in 2021 the Supreme Court held Part IXB operative only for multi-State co-operative societies, since it lacked ratification by half the States):

ProvisionContent
Article 19(1)(c)Right to form co-operative societies is a Fundamental Right
Article 43BDirective Principle: the State shall promote voluntary formation, autonomous functioning, democratic control and professional management of co-operatives
Part IXB (Articles 243ZH to 243ZT)Rules on incorporation, board of directors, elections, audit and control

Under Part IXB, the number of directors of a society cannot be more than twenty-one, and the term of the board is five years. Elections are conducted by an independent authority, and there must be a reservation of seats for SC/ST and women on the board.

4. Structure of rural co-operative credit

Short-term credit has a three-tier structure.

LevelBody
VillagePrimary Agricultural Credit Society (PACS)
DistrictDistrict Central Co-operative Bank (DCCB)
StateState Co-operative Bank (apex)

Long-term credit for land and farm investment was traditionally given by land development banks. Other co-operatives cover dairy, fisheries, weavers, marketing, consumer stores and housing.

Dairy co-operatives are the best-known success. The Anand model of Amul in Gujarat, led by Verghese Kurien, formed the base of Operation Flood (launched 1970), the "White Revolution". Milk producers' societies at village level join into a district union and then a state federation. In Andhra Pradesh, milk unions and societies of the same type work in many districts.

Weavers' co-operatives are important in AP for handloom products. Fishermen's, labour contract and thrift societies also exist.

5. Problems of co-operatives

Government interference, poor professional management, overdue loans, low member awareness, and dominance by a few people are common problems. Reform focuses on computerisation of PACS, professional boards and more member education.

6. Rural health

Health is a State subject, but Union programmes give money and guidance.

National Rural Health Mission (NRHM) was launched in 2005. It was later combined with the urban mission as the National Health Mission (NHM) in 2013. Key parts are:

  • Strengthening village-level health care.
  • ASHA (Accredited Social Health Activist): a woman volunteer chosen from the village. She promotes institutional delivery, immunisation and health awareness and links families to the health system.
  • ANM (Auxiliary Nurse Midwife): works at the sub centre.
  • Village Health, Sanitation and Nutrition Committee at Gram Panchayat level.
  • Untied funds for sub centres and Panchayat-level health work.

Three-tier network (the commonly used population norms):

UnitPlain areaHilly and tribal area
Sub centreabout 5,000 peopleabout 3,000 people
Primary Health Centre (PHC)about 30,000 peopleabout 20,000 people
Community Health Centre (CHC)about 1,20,000 peopleabout 80,000 people

The sub centre is the first contact point. A PHC is run by a medical officer and works as a referral unit for sub centres. A CHC is a first referral unit with specialists.

Anganwadi centres under the Integrated Child Development Services (ICDS, 1975) give supplementary nutrition, pre-school education, immunisation and health check-ups to children below six and to pregnant and nursing mothers.

Other programmes: Janani Suraksha Yojana (cash support for institutional delivery), Rashtriya Bal Swasthya Karyakram for child health screening, Universal Immunisation Programme and Mission Indradhanush. In Andhra Pradesh, the Aarogyasri health scheme (run by the trust renamed Dr NTR Vaidya Seva Trust in 2024) gives insurance-type cover for serious illnesses. Village clinics and family doctor concepts have been introduced at village level; check the latest official release for current names.

7. Rural sanitation

Programmes have changed over time.

ProgrammeIdea
Central Rural Sanitation Programme (1986)First national effort, supply driven, subsidy for latrines
Total Sanitation Campaign (1999)Demand driven, community-led, awareness
Nirmal Bharat Abhiyan (2012)Renamed and strengthened TSC with cash incentives
Swachh Bharat Mission (Gramin), launched 2 October 2014Make rural India Open Defecation Free (ODF)
SBM-G Phase IIMove to ODF Plus: keep ODF status, plus solid and liquid waste management

Nirmal Gram Puraskar was a reward for Panchayats that reached full sanitation. ODF means no person defecates in the open, and every household uses a toilet. ODF Plus adds waste management such as composting, plastic collection, drainage and grey water treatment.

Related: Jal Jeevan Mission (2019) aims to give tap water to every rural household. GOBAR-Dhan (2018) promotes conversion of cattle dung and farm waste into biogas and compost.

Panchayats have a key role. Gram Panchayat chooses sites, arranges waste collection, maintains village drains and public toilets, and promotes behaviour change. Under the Eleventh Schedule, public health and sanitation, and drinking water, are subjects for Panchayats.

8. Appropriate rural technology

Appropriate technology is simple, low cost, easy to repair and fits local need and skill. It saves energy and uses local material.

  • Biogas plant: cattle dung produces methane gas for cooking and a nutrient-rich slurry for fields.
  • Improved chulha (smokeless stove): burns less wood and reduces smoke, so it helps women's health.
  • Solar: solar lamps, solar pumps, solar water heaters and solar dryers.
  • Rainwater harvesting and watershed structures: farm ponds, check dams.
  • Low-cost housing: use of local material, fly ash bricks and compressed earth blocks.
  • Drip and sprinkler irrigation: save water.
  • Rural agro-processing: small mills, oil extractors and dairy chilling units.
  • PURA (Providing Urban Amenities in Rural Areas): idea given by Dr A.P.J. Abdul Kalam to give rural areas road, power, knowledge and markets.

A rural technology programme succeeds when local people are trained to operate and repair it.

Exam traps

  • 1904 Act vs 1912 Act: 1904 allowed only credit societies; 1912 allowed other societies.
  • Article 43B vs Article 19(1)(c): 43B is a Directive Principle; 19(1)(c) is a Fundamental Right.
  • Part IXB vs Part IX: IXB is co-operatives; IX is Panchayats.
  • PACS vs DCCB vs State Co-operative Bank: village, district, state.
  • Sub centre vs PHC vs CHC: the sub centre is the smallest unit; the CHC is the biggest.
  • ASHA vs ANM vs Anganwadi worker: ASHA is a village volunteer; ANM is a trained nurse-midwife; Anganwadi worker works under ICDS.
  • ODF vs ODF Plus: toilet use alone vs toilet use plus waste management.
  • TSC (1999) vs Nirmal Bharat Abhiyan (2012) vs SBM-G (2014): a chain of programmes with different years.

One-liners

  • 1. The first co-operative law in India was passed in 1904.
  • 2. The 97th Amendment made the right to form co-operatives a Fundamental Right.
  • 3. Article 43B directs the State to promote co-operatives.
  • 4. A society's board under Part IXB can have at most twenty-one directors.
  • 5. The three-tier short-term credit structure ends with the State Co-operative Bank.
  • 6. NABARD is the apex bank for rural credit, set up in 1982.
  • 7. Operation Flood was the White Revolution, based on the Anand model.
  • 8. NRHM started in 2005 and became part of NHM in 2013.
  • 9. ASHA is a woman health activist chosen from her own village.
  • 10. ICDS began in 1975 and runs Anganwadi centres.
  • 11. Swachh Bharat Mission (Gramin) began on 2 October 2014.
  • 12. A biogas plant gives cooking gas and manure from cattle dung.

Practice questions

  1. The first law on co-operative societies in India was passed in

    1. 1947
    2. 1904
    3. 1861
    4. 1912
    Answer

    B. 1904

    The Co-operative Credit Societies Act, 1904.

  2. The Co-operative Societies Act of 1912 was important because it

    1. made co-operatives a State monopoly
    2. allowed non-credit societies and federations
    3. abolished co-operatives
    4. banned credit societies
    Answer

    B. allowed non-credit societies and federations

    The 1904 Act covered only credit societies.

  3. The right to form co-operative societies is given under

    1. Article 32
    2. Article 43B
    3. Article 19(1)(c)
    4. Article 21
    Answer

    C. Article 19(1)(c)

    The 97th Amendment added co-operative societies to Article 19(1)(c).

  4. Which Article directs the State to promote voluntary formation and autonomous functioning of co-operatives?

    1. Article 43B
    2. Article 40
    3. Article 48A
    4. Article 39A
    Answer

    A. Article 43B

    It is a Directive Principle added by the 97th Amendment.

  5. Rules on co-operative societies are contained in which Part of the Constitution?

    1. Part IX
    2. Part X
    3. Part IXA
    4. Part IXB
    Answer

    D. Part IXB

    Part IXB, Articles 243ZH to 243ZT.

  6. The maximum number of directors on the board of a co-operative society under Part IXB is

    1. fifteen
    2. eleven
    3. twenty-one
    4. twenty-five
    Answer

    C. twenty-one

    The limit is 21 directors.

  7. At village level, short-term rural credit is given by the

    1. District Central Co-operative Bank
    2. Primary Agricultural Credit Society
    3. NABARD
    4. State Co-operative Bank
    Answer

    B. Primary Agricultural Credit Society

    PACS is the base tier.

  8. The correct order of the short-term co-operative credit structure from bottom to top is

    1. DCCB, PACS, State Co-operative Bank
    2. State Co-operative Bank, DCCB, PACS
    3. PACS, State Co-operative Bank, DCCB
    4. PACS, DCCB, State Co-operative Bank
    Answer

    D. PACS, DCCB, State Co-operative Bank

    Village, district, state.

  9. NABARD was set up in

    1. 1982
    2. 1969
    3. 1935
    4. 1991
    Answer

    A. 1982

    NABARD is the apex bank for rural credit, set up in 1982.

  10. The voting principle of a co-operative society is

    1. one member, one vote
    2. one share, one vote
    3. one rupee, one vote
    4. one family, three votes
    Answer

    A. one member, one vote

    It reflects democratic member control.

  11. The Anand model of milk co-operatives is associated with

    1. Homi Bhabha
    2. Verghese Kurien
    3. M.S. Swaminathan
    4. Norman Borlaug
    Answer

    B. Verghese Kurien

    Kurien led Amul and Operation Flood.

  12. Operation Flood is known as the

    1. Green Revolution
    2. Blue Revolution
    3. Yellow Revolution
    4. White Revolution
    Answer

    D. White Revolution

    It expanded milk production through co-operatives.

  13. Consider the statements. 1. Co-operative societies are run by their members. 2. Capital of a co-operative comes only from the government. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Capital comes mainly from members' shares.

  14. Consider the statements. 1. Article 43B is a Fundamental Right. 2. Article 19(1)(c) gives the right to form co-operative societies. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Article 43B is a Directive Principle.

  15. The 97th Constitution Amendment Act concerns

    1. anti-defection
    2. Panchayats
    3. co-operative societies
    4. municipalities
    Answer

    C. co-operative societies

    It was passed in 2011.

  16. NRHM was launched in

    1. 2014
    2. 1975
    3. 2005
    4. 1986
    Answer

    C. 2005

    It later became part of the National Health Mission.

  17. ASHA stands for

    1. Assistant Sub Health Attendant
    2. Approved Staff for Health Aid
    3. Active Sanitation and Health Agent
    4. Accredited Social Health Activist
    Answer

    D. Accredited Social Health Activist

    ASHA is a woman volunteer in the village.

  18. In the three-tier rural health network, the first contact point with a qualified health worker is the

    1. sub centre
    2. community health centre
    3. district hospital
    4. medical college
    Answer

    A. sub centre

    The sub centre is manned by an ANM.

  19. The commonly used population norm for a sub centre in plain areas is about

    1. 1,20,000
    2. 30,000
    3. 5,000
    4. 1,000
    Answer

    C. 5,000

    Hilly and tribal norm is about 3,000.

  20. The commonly used population norm for a community health centre in plain areas is about

    1. 5,000
    2. 10,000
    3. 30,000
    4. 1,20,000
    Answer

    D. 1,20,000

    CHC is the first referral unit.

  21. A Primary Health Centre in a plain area is meant for about

    1. 1,20,000 people
    2. 30,000 people
    3. 5,000 people
    4. 3,000 people
    Answer

    B. 30,000 people

    PHC covers about 30,000 in plains and 20,000 in hilly areas.

  22. Anganwadi centres operate under the

    1. Integrated Child Development Services
    2. Mid-Day Meal Scheme
    3. Jal Jeevan Mission
    4. Janani Suraksha Yojana
    Answer

    A. Integrated Child Development Services

    ICDS began in 1975.

  23. Consider the statements. 1. ASHA is chosen from the village she serves. 2. ANM works at the sub centre. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are correct.

  24. Which programme gives cash support to encourage institutional delivery?

    1. Operation Flood
    2. PURA
    3. Nirmal Bharat Abhiyan
    4. Janani Suraksha Yojana
    Answer

    D. Janani Suraksha Yojana

    JSY promotes births in health facilities.

  25. The Swachh Bharat Mission (Gramin) was launched on

    1. 15 August 1947
    2. 2 October 2014
    3. 26 January 1950
    4. 1 April 2005
    Answer

    B. 2 October 2014

    It aimed at making rural India open defecation free.

  26. Total Sanitation Campaign was launched in

    1. 2014
    2. 1999
    3. 2012
    4. 1986
    Answer

    B. 1999

    It was a demand-driven, community-led programme.

  27. Nirmal Bharat Abhiyan in 2012 was a renaming and strengthening of the

    1. Jal Jeevan Mission
    2. Central Rural Sanitation Programme
    3. Total Sanitation Campaign
    4. Operation Flood
    Answer

    C. Total Sanitation Campaign

    NBA replaced TSC.

  28. ODF Plus means a village that

    1. only builds toilets
    2. has no waste at all
    3. has only a school
    4. stays open defecation free and manages solid and liquid waste
    Answer

    D. stays open defecation free and manages solid and liquid waste

    ODF Plus adds waste management.

  29. Jal Jeevan Mission aims to give

    1. tap water to every rural household
    2. toilets to every school
    3. loans to every farmer
    4. electricity to every town
    Answer

    A. tap water to every rural household

    It was launched in 2019.

  30. A biogas plant uses which raw material?

    1. Cattle dung
    2. Sea water
    3. Coal dust
    4. Sand
    Answer

    A. Cattle dung

    Dung gives methane gas and manure.

  31. The by-product of a biogas plant useful for farmers is

    1. petrol
    2. nutrient-rich slurry manure
    3. cement
    4. salt
    Answer

    B. nutrient-rich slurry manure

    Slurry is used as manure.

  32. A smokeless chulha is useful mainly because it

    1. needs electricity
    2. increases smoke
    3. saves fuelwood and reduces smoke
    4. burns plastic
    Answer

    C. saves fuelwood and reduces smoke

    It protects women's health.

  33. PURA, an idea for rural development, was proposed by

    1. Jawaharlal Nehru
    2. Mahatma Gandhi
    3. Dr B.R. Ambedkar
    4. Dr A.P.J. Abdul Kalam
    Answer

    D. Dr A.P.J. Abdul Kalam

    PURA means Providing Urban Amenities in Rural Areas.

  34. Which describes appropriate technology best?

    1. Very costly and imported only
    2. Low cost, easy to repair and based on local resources
    3. Needs a foreign expert always
    4. Works only in cities
    Answer

    B. Low cost, easy to repair and based on local resources

    It fits local needs and skills.

  35. Consider the statements. 1. GOBAR-Dhan promotes conversion of cattle dung and farm waste into biogas and compost. 2. GOBAR-Dhan is a scheme to build national highways. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    GOBAR-Dhan is a waste-to-energy and compost scheme.

  36. Consider the statements. 1. Public health and sanitation is a subject in the Eleventh Schedule. 2. Panchayats have no role in sanitation. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Panchayats have a key role in sanitation.

  37. The Mutually Aided Co-operative Societies Act of Andhra Pradesh was passed in

    1. 1964
    2. 1904
    3. 2011
    4. 1995
    Answer

    D. 1995

    It provides for self-reliant societies free of government equity and control.

  38. Which of the following is NOT one of the co-operative principles?

    1. Concern for community
    2. Voluntary and open membership
    3. Government ownership of all shares
    4. Democratic member control
    Answer

    C. Government ownership of all shares

    Co-operatives are autonomous and member-owned.

  39. Which of the following is a common problem of co-operatives?

    1. Too many professional managers
    2. Too much member education
    3. Lack of any members
    4. Government interference and overdue loans
    Answer

    D. Government interference and overdue loans

    These problems are often noted.

  40. Which pairing is correct?

    1. Total Sanitation Campaign - 1975
    2. Swachh Bharat Mission (Gramin) - 1999
    3. Rural Sanitation Programme 1986 - Central Rural Sanitation Programme
    4. ICDS - 2014
    Answer

    C. Rural Sanitation Programme 1986 - Central Rural Sanitation Programme

    The Central Rural Sanitation Programme began in 1986.

  41. Consider the statements. 1. NRHM was later combined with an urban mission to form the National Health Mission. 2. ICDS was launched in 2005 as part of NRHM. Which of the statements is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    ICDS began in 1975.

  42. Under SBM-G Phase II, the main shift of focus is to

    1. building only roads
    2. ODF Plus with waste management
    3. subsidy for fertiliser
    4. irrigation canals
    Answer

    B. ODF Plus with waste management

    Phase II sustains ODF and adds waste management.

  43. The Ministry of Co-operation at the Union level was created in

    1. 1982
    2. 2021
    3. 2005
    4. 1947
    Answer

    B. 2021

    It was formed in July 2021.

  44. Which scheme provides supplementary nutrition and pre-school education to children below six?

    1. Janani Suraksha Yojana
    2. Swachh Bharat Mission
    3. Jal Jeevan Mission
    4. Integrated Child Development Services
    Answer

    D. Integrated Child Development Services

    ICDS runs Anganwadi centres.

  45. Which pairing of unit and head is correct for a village health team?

    1. Sub centre - District Collector
    2. PHC - Village postman
    3. Sub centre - Auxiliary Nurse Midwife
    4. CHC - Sarpanch alone
    Answer

    C. Sub centre - Auxiliary Nurse Midwife

    ANM is the main worker at the sub centre.

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