NAVRD is another programme of rural development launched in October 1984, a modern land and agrarian reform. The aim is to increase income of small farmers by improving efficiency and productivity through economies of scale in production and utilisation of modern methods of production and management, and improve the standard of living of traditional village people by provision of infrastructure and facilities. The new move aimed to address the persistent and increasing socio-economic gap between traditional rural dwellers and the urban and modern sector. An alarming increase in idle alienated land, a continued productivity gap between traditional agriculture sectors and modern estate sectors and the limited access of traditional villages to basic modern services, were signs of the inability of the conventional approach to cope with the needs of contemporary socio-economic change.
The three main components of NAVRD were:
1. A voluntary consolidation of individually owned private land into large holdings called estates. The estates were to be owned by the participating land-owners, who were receiving shares in ratio to the land they had contributed. The new estates were to be managed as co-operatives by professional managers with the objective of profit maximization.
2. The development of agricultural and non-agricultural based industry within the project area to provide additional employment opportunities and income, and to accelerate further the process of rural transformation.
3. Resettlement of scattered villages to a centralised village with modern basic facilities such as schools, clinics, piped water, electricity and recreation.
The implementation of NAVRD would utilise the existing government set-up and machinery, without introducing new enabling legislation. The programme relied on the reallocation of existing financial and other resources from existing government organisations dealing with rural development.
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