Monday, 11 July 2016

10 JULY 1978 MAHATMA PHULE BACKWARD CLASS CORPORATION

 
Abstract—The ancient Indian social systems divides the 
society into four broad classes. The same system was followed 
till India was invaded by the Britishers driving the British India. 
After India won freedom, the new constitution has offered equal 
opportunity for all. As a result of which the country witnessed 
some progress among the weaker section of the society. To boost 
the pace of development various efforts have been made by the 
governments in the country. After the western impact and the 
capitalist mode of production introduced in the country opened 
new areas of accommodation, adjustment and opportunities to 
the backward class in India. 
The M.P. Backward Class Development Corporation is one 
of such organizations aimed at the development of the socially 
backward class people in India. An evaluative research is made 
herein to assess the performance of the same in the light of the 
expectations of the beneficiaries as well as the Govt. 
Index Terms—Backward Class, Scheduled Caste, Scheduled 
Tribes, Socio Economic Development, Finance Corporations. 
I. INTRODUCTION
The social strata which is known as the backward class 
represents the down trodden classes of the society. BC has its 
origin in the ancient Indian social system. The ancient Indian 
social systems divides the society into four broad classes 
namely the Brahmin, the Kshatriya (warrior class) the 
Vaishya and the Shudra (serving class) in addition to this fifth 
class known as Atishudras, who were untouchable existed in 
ancient India [1]. This system is described a divine origin 
(vide Rigveda X.90,12 also Geeta.4) This system though it 
says that the classification is according the inherent aptitudes 
and activities adopted (Guna and Karma) but in practice the 
classification of the caste based upon birth thus in Indian 
society where the unwritten law still prevails the occupation 
of person is decided not by his skill and ability but by his 
birth the fourth class known as the servant class carried on 
occupations like black smith, gold smith, leather workers, 
merchant, physician, barber etc. [2]. The same system was 
followed till India was invaded by the Britishers driving the 
British India. The system received the first threatening as it 
has been rightly observed by Dr. Rajendra Prasad [3]. The 
ardent of British India concept of rule of law. Their empirical 
Manuscript received August 2, 2012; revised September 20, 2012. The 
work is based on the empirical study made by the Authors in the Nanded 
District Provence of Maharashtra State in India. 
B. R. Suryawanshi is with the SRTM University Nanded India as An 
Associate Professor in the School of Commerce and Management Sciences. 
( dr_suryawanshi@rediffmail.com) 
Nishikant C. Dhande is with the School of Commerce and Management 
Sciences, SRTM University Nanded, India.( nishikant_dhande@yahoo.com) 
 
interest and the work of Christianity missionaries brought 
into contract with a new world of ideas and thoughts. The 
constitutional responsibility of Government of Maharashtra 
established various corporations for the backward class 
development. Such as Mahatma Phule Backward Class 
Development Corporation, Lokshahir Annabhau Sathe 
Development Corporation, Vasantrao Naik Vimukta Jati and 
Nomadic Tribes Development Corporation, Leather 
Industries Development Corporation, etc. 
These corporations are playing very dominant role for the 
development of backward classes by providing finance and 
creating self-employment opportunities for the backward 
classes. 
The Indian economy was characterised by high degree of 
poverty, illiteracy, ignorance and social inequalities. To solve 
these problems five-year plans have been adopted from 1951 
onwards. 
The major objective of planning in India was acceleration 
of economic development with justice, for this process the 
State has been assigned a crucial role. Initially public sector 
was expected to control the commanding heights of the 
economy. Public sector would not only take into account 
economic goals like profit maximisation but also consider 
social aspects like providing access to deprived sections to 
participate in the development process and thereby provide 
justice. In case of socially and economically deprived section 
like Scheduled Castes and Scheduled Tribes, a variety of 
special development programmes have been launched in 
addition to general development programmes. 
The western impact and the capitalist mode of production 
introduced in the country opened new areas of 
accommodation, adjustment and opportunities. Under the 
National scheme of Liberation and Rehabilitation of 
Scavengers and their Dependants (NSLRS) co-operatives of 
scavengers called sanitary marts have started functioning in 
various states in India. Sanitary marts enable the scavengers 
to take up alternate jobs and thus help in integrating them into 
the main stream of the society. 
II. BACKWARD CLASS IN INDIA: A REVIEW
Mahatma Phule Backward Class Development 
Corporation Ltd. was set up by the Government of 
Maharashtra on 10th July 1978 to act as catalyst for the 
economic development of Scheduled Caste, Nav Buddha, 
Scheduled Tribes, Vimukta Jati and Nomadic Tribe 
communities [4]. The corporation is incorporated under the 
Companies Act, 1956. In the year 1984 the segment of VJNT 
community has taken away the part and work of their 
Socio-Economic Development among Scheduled Caste: A 
Study economic development was entrusted to Vasantrao Naik 
Vimukta Jati and Nomadic Tribes Development Corporation 
Ltd. 
 The segment of Scheduled Caste community namely 
Matang, Madgi and Mang was transferred to Lokshahir 
Annabhau Sathe Development Corporation Ltd. which was 
established in the year 1985-86. Since then the corporation is 
exclusively working for the development of scheduled Caste 
and Nav Buddha communities. At present authorized share 
capital of the corporation is Rs.100 crores and the paid up 
share capital is Rs.61.33 crores. Th share capital is met from 
the contribution of State and Central Government in the ratio 
of 51:49. 
 The corporation has three-tier administrative machinery 
for the implementation of socio-economic upliftment 
programme for the Scheduled Castes and Other Backward 
Classes in Maharashtra. The Chairman of the corporation is 
the supreme authority and the Managing Director, who is the 
head of the corporation at the State level. 
 According to the Company Act 1956 provisions, the 
corporation has applied fifteen (15) Directors, including 
Chairman of the corporation. Corporation head office is 
located at Juhu Andhreri (West) Mumbai. The corporation 
has six regional level mangers along with other ranks and six 
regional officers headed by regional managers assisted by 
other ranks at the district levels. District Manager is the head 
of the office in all the 35 districts of Maharashtra and he is 
assisted by adequate subordinate staff members. In view of 
reaching to beneficiaries residing in remote areas, the 
corporation has established offices in the office of BDO at the 
block level at the rate of one block in each district developing 
the fourth-tier administration. 
The corporation has established vocational training centre 
at Jambhul in Thane district to provide training in various 
trades, exclusively to the liberated scavengers and their 
wards. 
The corporation has established survey, monitoring, 
recovery and evaluation cell at Aurangabad. The cell is 
having six recovery officers at six regional head quarters. 
Three district managers along with five subordinate staff 
members are stationed at Aurangabad for the survey and 
monitoring work. 
Considering the needs of the Scheduled Caste to 
rehabilitate them and to provide alternative job opportunities 
and training programmes like repairing, steel binding, 
automobile mechanic, motor driving, tailoring, etc. This 
training project is being implemented by Mahatma Phule 
Backward Class Development Corporation Ltd. Special 
central assistance is received from the Government of India 
under Special Component Plan. 
During the plan period, corporation has selected 80 blocks 
one from each district. The selection of the block has been 
made on the concentration of Scheduled Castes and Other 
Backward Castes population in descending order. The project 
of the plan is to cover all the families who come under 
poverty line and income generating assets in the block for 
them [5]. 
III. OBJECTIVES OF THE STUDY
The present study makes an effort to determine how far 
Mahatma Phule Backward Class Development Corporation 
has successfully worked in achieving the formulated objects 
and for that matter to perceive the subject from all possible 
angels that are perceptible with the tools of statistics, logics 
and reason. Thus the objectives are - study the 
socio-economic background of backward class beneficiaries, 
examine the performance of backward class beneficiaries, 
Study the views and aspirations of backward class 
beneficiaries regarding the backward class development by 
Mahatma Phule Backward Class Development Corporation 
Ltd, and examine the problems and difficulties faced by the 
backward class beneficiaries. 
IV. RESEARCH METHODOLOGY 
The present researcher thinks it necessary to explain the 
economic development of the backward class defined by the 
Government of Maharashtra and according to Indian 
Constitution. The present research work is based on the 
evaluation and assessment of the primary and secondary data, 
collected from the beneficiaries of MPBC development 
Corporation through questionnaire from Nanded district. The 
data about economic development of the backward class 
people was collected by the researcher himself with the help 
of questionnaire [6]. 
V. PRIMARY AND SECONDARY DATA
While preparing the questionnaire an attempt was made to 
have as many structured questions as possible. While filling 
the questionnaire the interviews were largely conducted at 
the residence of the beneficiaries and thereby questionnaire 
was filled. At the time of interviews with beneficiaries and 
while filling the questionnaire researcher attempted to 
explain the purpose and importance of the study to the 
beneficiaries, National Scheduled Caste and Scheduled 
Tribes Finance Development Corporation, Mahatma Phule 
Backward Class Development Corporation Ltd. Statistical 
Abstracts of Maharashtra Govt, Other Government of Indian 
and Government of Maharashtra publications and journals, 
books, etc, National Backward Classes Finance Development 
Corporation, Reports of National Scheduled Caste 
Commission, New Delhi [7]. 
VI. OBSERVATIONS
TABLE I: AGE OF THE BENEFICIARIES [8]
Age (In Years) Frequency Percentage
Upto 20 10 10
20 – 30 15 15
30 – 40 48 48
40 – 50 24 24
50 – 60 03 03
Average Age = 35 Years
Total 100 100
 
In this chapter an attempt is made to present a profile of the 
backward class beneficiaries. The parameters like age, education, occupation, marital Status, Caste of the 
beneficiaries, other earning hands, monthly savings, income 
tax, monthly saving, activities selected by the beneficiaries, 
infrastructure provided, channels used to approach the 
MPBCDC, schemes selected, are taken into consideration in 
presenting the profile of the beneficiaries. 
Table explains the age of the beneficiaries (about the 
average age of the sample is 35 year‟s). 48% of the 
beneficiaries are from the age group of 30 to 40 years, and 
24% belongs to the age group of 40 to 50 years. There are 
hardly 15% and 10% of the beneficiaries in the age group of 
20 to 30 and upto 20 years respectively. Whereas just 3% 
belongs to the age group of 50 to 60 years. The average age of 
the sample comes to 35 years. 
TABLE II: EDUCATION OF THE BENEFICIARIES
Education Frequency Percentage
Illiterate 40 40
Primary 08 08
Matriculate 10 10
Higher 
Secondary
20 20
Graduate 15 15
Post-Graduate 07 07
Total 100 100
Source: Field Survey. 
Fig. 1. Educational Background 
Table gives the details about educational qualification of 
the beneficiaries. 40% of the total sample is illiterate. 20% 
beneficiaries belong to the higher secondary qualification and 
15% of the beneficiaries are graduates, there are 10% and 8%
of the beneficiaries in the education group of matriculate and 
primary level respectively. Whereas 7% in the sample of the 
beneficiaries belong to the education group of the 
Post-Graduate level.
TABLE III: OCCUPATION OF THE BENEFICIARIES
Occupation Frequency Percentage
Professional 03 03
Traders 15 15
Farmers 07 07
Agricultural 
Labour
18 18
Non-agricultural 
Labour
27 27
Unemployed 30 30
Total 100 100
Source: Field Survey. 
Fig. 2. Occupation of Beneficiaries
Table reveals the details of the occupation of the backward 
class beneficiaries. 30% beneficiaries of backward class are 
unemployed. 27% of the beneficiaries belong to the 
non-agricultural labour. 18% and 15% of the beneficiaries 
falls in the occupation group of agricultural labour and 
traders respectively. Whereas 7% and 3% in the sample of 
beneficiaries belong to the occupation group of farmers and 
professionals.
TABLE IV: MARITAL STATUS OF THE BENEFICIARIES
Marital Status Frequency Percentage
Married 84 84
Unmarried 16 16
Total 100 100
Source: Field Survey. 
It can be observed from the above table that 84% backward 
class beneficiaries are married. Only 16% beneficiaries of the 
backward class are unmarried. It can also be said that after 
getting married the backward class beneficiaries opted the 
business activities but not before marriage.
TABLE V: CASTE OF THE BENEFICIARIES
Name of the Caste Frequency Percentage
Mahar / Nav Buddha 60 60
Burud 06 06
Bhangi 10 10
Mehatar Bhangi 05 05
Walmik Bhangi 08 08
Chambhar 11 11
Total 100 100
Source: Field Survey. 
Fig. 3. Caste of the beneficieries
It can be observed from the above table that out of the total 
sample of the backward class beneficiaries only 60% belongs 
to Mahar/Buddha Scheduled Caste. 11% beneficiaries from 
Chambhar Scheduled Caste. 10% beneficiaries belong to 
Bhangi caste. 8% and 6% of the beneficiaries are in the caste of Walmik Bhangi and Burud Scheduled Caste respectively. 
Whereas 5% in the sample of beneficiaries belong to the 
Mehatar Bhangi Scheduled Caste. 
TABLE IV: OTHER EARNING HANDS OF THE BENEFICIARIES
Other Earning Hands Frequency Percentage
Wife 16 16
Father 10 10
Mother 06 06
Son 15 15
Daughter 02 02
No other earning hands 51 51
Total 100 100
Source: Field Survey. 
Table indicates the details of other earning hands of the 
beneficiaries. Accordingly 51% belong to the backward class 
beneficiaries do not have any other earning hands. 16% 
beneficiaries have wife‟s as there other earning hands while 
15%, 10%, 6% and 2% beneficiaries have son‟s, father‟s, 
mother‟s and daughter‟s as other earning hands.
TABLE VII: MONTHLY SAVING OF THE BENEFICIARIES
Monthly Savings Frequency Percentage
No Saving 42 42
Below 200 20 20
200 – 400 14 14
400 – 600 09 09
600 – 800 07 07
800 – 1,000 04 04
1,000 and above 04 04
Total 100 100
Average Monthly Saving Rs.236/-
Source: Field Survey. 
Table exhibits the details of the monthly saving policy of 
the backwards class beneficiaries is Rs.236/- but 42% 
beneficiaries do not have monthly saving. 20% of the 
beneficiaries belong to the monthly saving group of below 
Rs.200/- and 23% beneficiaries belong to the monthly saving 
group in between Rs.200 to 600/-. 7% and 4% belong to 
monthly saving group of Rs.600/- to Rs.800/- to Rs.1000/- 
respectively. Whereas just 4% beneficiaries belong to 
monthly saving group of Rs.1000/- and above. The average 
monthly saving of the beneficiaries comes to Rs.236/-. 
TABLE VIII: REMARKS ABOUT PAYMENT OF INCOME TAX BY 
BENEFICIARIES
Sr Remarks about 
Income Tax
Frequency Percentage
1. YES 04 04
2. NO 96 96
Total 100 100
It can be observed from the above table that out of the total 
sample of the backward class beneficiaries 96% beneficiaries 
are not income tax payers. Whereas only 4% beneficiaries 
were income tax payers. Therefore it can be said that 96% are 
non tax payers among the backward class beneficiaries.
TABLE IX: ACTIVITIES SELECTED BY BENEFICIARIES
Sr. Activity Frequency Percentage
1. Farming 03 03
2. Trading 49 49
3. Manufacturing 16 16
4. Service 28 28
5. Others 04 04
Total 100 100
Source: Field Survey. 
Fig. 4. Activities Selected
Table highlights all the details of activities selected by 
beneficiaries. Out of the total sample of 100. 49% 
beneficiaries have selected trading activities, whereas 16% of 
the beneficiaries have selected manufacturing activities and 
28% beneficiaries have selected service activities from the 
backward corporation. 4% and 3% beneficiaries have 
selected other activities and farming activities. Thus it can be 
said that the majority of people from backward class 
beneficiaries have selected trading activities.
TABLE X: INFRASTRUCTURE PROVIDED BY CORPORATION TO 
BENEFICIARIES
Sr. Infrastructure Frequency Percentage
1. Shed 19 19
2. Building 
Construction
-- --
3. Land -- --
4. Machinery 15 15
5. Service 21 21
6. Not Provided 45 45
Total 100 100
Source: Field Survey. 
Fig. 5. Infrastructure
International Journal of Social Science and Humanity, Vol. 2, No. 5, September 2012 435The above table shows the infrastructure provided by the 
corporation. Out of the total sample of the beneficiaries 45% 
beneficiaries are in favour of Infrastructure is not provided by 
the corporation. 21% beneficiaries are in favour of service is 
provided by the corporation for the beneficiaries. Whereas 
19% beneficiaries are in favour of the shed is provided to the 
beneficiaries for their business units and 15% beneficiaries 
are in favour of infrastructure of machinery given by the 
corporation. 
TABLE XI: CHANNEL USED BY BENEFICIARIES
Sr.No Channel Frequency Percentage
1. Personally 65 65
2. Middleman 08 08
3. Relatives 12 12
4. Friends 03 03
5. Newspapers 02 02
6. Persuasion Programme by 
Corporation
10 10
Total 100 100
Source: Field Survey. 
Fig. 6. Channels used for access
It can be seen from the above table that 65% of the 
beneficiaries have personally approached to the corporation. 
Whereas 12% have approached through relatives. 10% 
beneficiaries have used the source of persuasion programme 
by the corporation. 8% beneficiaries approached through 
middleman. 3% and 2% beneficiaries approached to the 
development corporation through, their friends and 
newspapers respectively.
Thus it can be said that majority of the backward class 
beneficiaries have approached in person to the corporation.
TABLE XII: SCHEME SELECTED BY BENEFICIARIES
Sr.No
.
Name of the Schemes Frequency Percentage
1. Loan subsidy scheme 51 51
2. Margin money scheme 14 14
3. National scavengers scheme 10 10
4. Training scheme 09 09
5. N.S.F.D.C. schemes 16 16
6. Others -- --
Total 100 100
Source: Field Survey. 
The data presented in table shows the schemes selected by 
beneficiaries. Out of the total sample of 100, 51% 
beneficiaries have selected loan subsidy schemes of the 
concerned corporation. Whereas 16% beneficiaries have 
selected national Scheduled Castes and Scheduled Tribes 
Finance Development Corporation Schemes and 14% 
beneficiaries have selected margin money scheme. 
Fig. 7. Scheme Selected by Beneficiaries
VII. CONCLUSION
In an attempt to evaluate the performance of the MPBCDC 
in Maharashtra, it is found that, the performance is not up to 
the mark of the success. The majority of the beneficiaries are 
among the age group of 30 to 40, whereas according to the 
suitable age of development point of view, the ideal age 
group should have been 20 to 30. This highlights the scope 
for the publicity of the scheme among the backward class 
people in Maharashtra. If the scheme is opted by the 
beneficiaries at the proper age, the results would go better 
towards the upliftment of the economical status of the people. 
The average age is found to be 35 which is late start. It should 
have been 25. 
On the criteria of the educational qualifications, there is 
peculiar observation as 40% among them are illiterate and as 
only 15% are graduates, it means that the illiterates are more 
aware than the Graduates. Hence, the scheme should be made 
popular among the graduates too. 
The scheme opted in handsome number by the 
unemployed and the Non agriculture labours. In a sense, the 
scheme has benefitted the weaker section of the society who 
are deprived from the financial support otherwise. It can be 
stated that the implementation is in right direction, though not 
up to the mark. 
From the caste point of view of the benefits, Mahar and the 
Nav Buddhas are in majority ( 60%) among the all. The status 
of the Mahetar Bhangi and the Walmik Bhangi is 
comparatively low. This needs to be looked in to seriously 
and new promotional ways are to be found out to cover the 
weaker section under the same umbrella of benefits. 
In response to the criteria of saving as a measure of 
economical status indicator and indicator of financial 
awareness, the data reveals that the performance is very poor 
as 42% of the people do not earn enough so that they can do 
some saving. Similarly, only 4% of the beneficiaries are able 
to save an amount in four digits. 
Among the all beneficiaries the trend indicates that 
„Trading „ is chosen by many, next to service followed by 
Manufacturing. The scenario will be better if the 
Manufacturing would take a front seat to create more 
employment among the society through the MPBCDC 
schemes. 
On the grounds of the provision of the infrastructure to the 
beneficiaries by the MPBCDC, it is found that, MPBCDC is 
not providing any infrastructure to majority of the people. 
 To the brighter side of the performance, it is found that thepeople have preferred to approach the Corporation personally 
to get the benefits of the schemes. The support of the channel 
like news paper has gathered very feeble response. 
The subsidy on the loan and the Margin Money schemes 
are found to be more popular among the beneficiaries, 
whereas, the Training schemes are not taking roots yet. 
Accordingly 51% belong to the backward class beneficiaries 
do not have any other earning hands. Average monthly 
saving is Rs. 236/-. Only 4 among the samples are income tax 
payers meaning there by 96% samples are non-income tax 
payers. Out of the total sample of 100. 49% beneficiaries 
have selected trading activities. Most of the total sample of 
the beneficiaries 45% beneficiaries are in favour of 
Infrastructure is not provided by the corporation. 21% 
beneficiaries are in favour of service is provided by the 
corporation for the beneficiaries. 
In overall the schemes are definitely benefitting the 
underprivileged and the weaker section of the society in 
Maharashtra, yet there is scope to improve the performance 
of the schemes by making creative and innovative 
modifications in the scheme so that schemes would be more 
popular to reach to major class of the people with a rapid 
pace. 
ACKNOWLEDGMENT
The authors are thankful to the various Govt. Authorities 
for the extension of their cooperation to this study. The 
authors are also thankful to the Hon‟ble Vice Chancellor of 
Swami Ramanand Teerth Marathwada University, Nanded 
Dr. S.B.Nimse for his valuable guidance and motivation 
extended time to time. In addition to that the Authors are also 
thankful to the beneficiaries who have cooperated for 
completion of the research besides the fellow colleagues and 
the research students who have supported the work directly or 
indirectly. 
REFERENCES
[1] C. Aggarwal, Caste, Religion and Power: An Indian Case Study, Shri 
Ram Centre For Industrial Relations, New Delhi, 1971. 
[2] I. J. Ahluwalia, Productivity and Growth in Indian Manufacturing, 
Oxford University Press, Delhi, 1991. 
[3] J. Aikara, Scheduled Castes and Higher Education: A Case Study of 
College Students in Bombay, Dastane Ram Chandra, Poona, 1980. 
[4] B. R. Ambedkar, Selected Speeches Compiled By Bhagwandas, vol. I 
& II, Bheem Patrika Publications, Jullundur City, 1963 & 1969. 
[5] Census of India, Series 28, Maharashtra Provisional Population Total I 
& II 2001. 
[6] Annual Credit Plan 2001-2002, Lead Bank, Nanded District, State 
Bank of India, Lead Bank Department, Local Head office, Mumbai. 
[7] Economic Survey, Government of Indian, Ministry of Finance 
Economic Divisions, 1994-95. 
[8] B. R. Suryawanshi, “Role of MPBCDC in economic development of 
backward classes in Maharashtra with special reference to Nanded 
District,” International conference on sociality and economic 
development , vol. 10, 2011. 
Dr. B. R. Suryawanshi is Associate Professor in the 
School of Commerce and Management Sciences, 
Swami Ramanand Teerth Marathwada University, 
Nanded, Maharashtra, India. He has acquired 
M.Com., MBA, M.Phil., B.Ed., Ph.D. GDC&A, NET 
qualifications to his credit. He is a approved Research 
Guide for the M.Phil and the Ph.D. in the area of 
Commerce and Management Science.
Dr. Nishikant C. Dhande is Electronics Engineer and 
Masters in Computer Science as well as in 
Management. He has acquired Ph.D. in System 
Management. Former Lecturer in Electronics 
Technology, S.B.E.S. College of Science, Aurangabad 
India. Faculty for M.C.A. and M.Sc. Computer 
Science, presently working as Assistant Professor, 
School of Management Science, S.R.T.M University, 
Nanded, Maharashtra India. Ten Books and course 
material published. Current research interests are in Systems and 
Management along with computer application. Founder member of 
Computer Society of India Aurangabad Chapter, IAENG, reviewer of IEEE 
SMC & Cybernetics. Experience of More than 24 years in teaching, 
industrial consultancy besides the R & D. He is a approved Research Guide 
for the Ph.D. & M.Phil in Management Science, Computer Science & I.T. 

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