1

Chanakya National Law University Patna

LABOUR LAW-II PROJECT

FEATURES OF RURAL EMPLOYMENT GUARANTEE

SCHEME

Submitted by- Submitted to-

Nandini Suman Dr. S.C Roy

Roll no.- 756

5th

semester

2

ACKNOWLEDGEMENT

First and foremost I thank almighty God for his gracious blessings upon us.

I have taken efforts in this project. However, it would not have been possible

without the kind support and help of many important people. I would like to

extend my sincere thanks to all of them.

I am highly indebted to Dr. S.C Roy for his guidance and constant supervision

as well as for providing necessary information regarding the project & also for

his support in completing the project.

I also want to express my sincere gratitude to all those authors and researchers

whose works helped me to gather various information used in this project. I also

want to thank the college library and honourable librarian for providing me the

needed books.

I would like to express my gratitude towards my parents and family members

for their kind co-operation and encouragement which helped me in the

completion of this project. I would like to express my special gratitude and

thanks to all those people who gave me such attention and time. My thanks and

appreciations also go to my friends for helping in developing the project and

people who have willingly helped me out with their abilities.

3

CONTENTS

TOPICS PAGE NO.

1. Introduction 04-05

2. History and Background of the 06-08

Rural Employment Guarantee Scheme

3. Objectives of the Rural Employment 09-13

Guarantee Scheme

4. Features of the Rural Employment 14-20

Guarantee Scheme

5. Problems in Implementation 21-28

Conclusion

4

INTRODUCTION

The Indian government has taken up various measures to overcome the problem of poverty.

Poverty alleviation programmes comprising of wage employment programmes, rural housing

schemes and a public distribution system have been initiated from time to time. Some were

partially successful in addressing the issue of poverty whereas others suffered from major

flaws in their implementation. National Rural Employment Programme (NREP) 1980-89;

Rural Landless Employment Guarantee Programme (RLEGP) 1983-89; Jawahar Rozgar

Yojana (JRY) 1989-99; Employment Assurance Scheme (EAS) 1993-99; Jawahar Gram

Samridhi Yojana (JGSY) 1999- 2002; Sampoorna Grameen Rozgar Yojana (SGRY) since

September 2001; National Food for Work Programme (NFFWP) since November 14, 2004

(SGRY and NFFWP now merged with NREGS 2005) were national level rural employment

generation schemes. However these programmes could not provide social security to the rural

poor. The Central Government launched NREGA on February 2, 2006. The Act guarantees

the right to work to by providing 100 days of guaranteed wage employment in a financial

year to every rural household whose adult members are willing to do unskilled manual work.

NREGA is the first ever law internationally, that guarantees wage employment on an

unprecedented scale. Its auxiliary objective is to strengthen natural resource management

through works that address causes of chronic poverty like drought, deforestation and soil

erosion and so encourage sustainable development. The outcomes include strengthening

grassroots processes of democracy and infusing transparency and accountability in

governance. NREGA covers the entire country with the exception of districts that have 100

percent urban population. NREGA provides a statutory guarantee of wage employment and is

demand driven which ensures that employment is provided where and when it is most

needed. The legal mandate of providing employment in a time bound manner is underpinned

by the provision of an Unemployment Allowance. The right to work brings security in

people’s lives. Today, labourers cannot count on employment being provided to them during

the lean season. An employment guarantee gives labourers more confidence in the prospect

of local employment, and discourages seasonal migration.

The Scheme aims at enhancing livelihood security of households in rural areas of the country

by providing at least one hundred days of guaranteed wage employment in a financial year to

every household whose adult members volunteer to do unskilled manual work. Mahatma

Gandhi NREGA is the first ever law internationally that guarantees wage employment at an

5

unprecedented scale. The primary objective of the Act is augmenting wage employment and

its auxiliary objective is strengthening natural resource management through works that

address causes of chronic poverty like drought, deforestation and soil erosion and so

encourage sustainable development. The process outcomes include strengthening grass-root

processes of democracy and infusing transparency and accountability in governance. Keeping

this view, the researcher has made an attempt to review the performance of MGNREGA as

the main objective of this project. It also explains the objectives, features, permissible works

under this Act and funding pattern of MGNREGA.

6

HISTORY AND BACKGROUND OF NATIONAL

RURAL EMPLOYMENT GUARANTEE SCHEME

Targeting poverty through employment generation using rural works has had a long history in

India that began in the 1960s. After the first three decades of experimentation, the

government launched major schemes like Jawahar Rozgar Yojana, Employment Assurance

Scheme, Food for Work Programme, Jawahar Gram Samridhi Yojana and Sampoorna

Grameen Rozgar Yojana that were forerunners to Mahatma Gandhi NREGA. The theme of

government approach had been to merge old schemes to introduce new ones while retaining

the basic objective of providing additional wage employment involving unskilled manual

work and also to create durable assets. The major responsibility of implementation was also

gradually transferred to the Panchayati Raj Institutions. Unlike its precursors, the Mahatma

Gandhi NREGA guaranteed employment as a legal right. However, the problem areas are

still the same as they were in the 1960s. The most significant ones are: lack of public

awareness, mismanagement and above all mass corruption.

The National Rural Employment Guarantee Act 2005 (No 42), also known as the

"Mahatma Gandhi National Rural Employment Guarantee Act", and abbreviated to

MGNREGA, is an Indian labour law and social security measure that aims to guarantee the

'right to work' and ensure livelihood security in rural areas by providing at least 100 days of

guaranteed wage employment in a financial year to every household whose adult members

volunteer to do unskilled manual work.1 The UPA Government had planned to increase the

number of working days from 100 to 150 before the 2014 Lok Sabha Elections in the country

but failed.2 The statute is hailed by the government as "the largest and most ambitious social

security and public works programme in the world". The more comprehensive survey

of Comptroller and Auditor General (CAG) of India, a ‘Supreme Audit Institution’ defined in

Article 148 of the Constitution of India, reports serious lapses in implementation of the act.

The statement of the law provides adequate safeguards to promote its effective management

and implementation. The act explicitly mentions the principles and agencies for

1 Starting from 1960, the first 30 years of experimentation with employment schemes in rural areas taught

few important lessons to the government like the ‘Rural Manpower Programme’ taught the lesson of financial management, the ‘Crash Scheme for Rural Employment’ of planning for outcomes, a ‘Pilot Intensive Rural Employment Programme’ of labour intensive works, 2 The Rural Landless Employment Guarantee Programme (RLEGP) was launched in August 1983 to focus

specially on landless households.

7

implementation, list of allowed works, financing pattern, monitoring and evaluation, and

most importantly the detailed measures to ensure transparency and accountability. Further the

provisions of the law adhere to the principles enunciated in the Constitution of India.

The comprehensive assessment of the performance of the law by the constitutional auditor

revealed serious lapses arising mainly due to lack of public awareness, mismanagement and

institutional incapacity. The CAG also suggests a list of recommendations to the government

for corrective measures. The government, however, had also released a collection of

reportedly independent researches evaluating the functioning of the act whose results

significantly differed from the CAG report. Meanwhile, the social audits in two Indian states

highlight the potential of the law if implemented effectively3

Prior to the enactment of Mahatma Gandhi NREGA, India had no programme in rural areas

that promised employment as a legal right, although employment generation through rural

works had a long history in India dating back to the 1960s. Since 1960, the government had

been merging old schemes to introduce new ones while retaining the basic objective of

providing additional wage employment involving unskilled manual work, creating ‘durable’

assets, and improving food security in rural areas through public works with special

safeguards for the weaker sections and women of the community. The problem areas had also

been almost similar like mismanagement, lack of planning and implementation. The

remuneration had been a combination of wages and foodgrains across all schemes. It took 30

years of government experimentation to launch major schemes like Jawahar Rozgar Yojana

(JRY), Employment Assurance Scheme (EAS), Food for Work Programme (FWP), Jawahar

Gram Samridhi Yojana (JGSY) and Sampoorna Grameen Rozgar Yojana (SGRY) that were

forerunners to Mahatma Gandhi NREGA. In the process, the government decentralized

implementation by providing financial and functional autonomy to the local self-government

institutions or Panchayati Raj Institutions (PRIs) in order to fight corruption.4

The government experimented with various schemes from 1960-90. The most significant

ones were Food for Work Programme (FWP) of 1977 and National Rural Employment

3 Ministry of Rural Development 2012, p. ix

4 Planning Commission 2001, pp. 12–27

8

Programme (NREP) of 1980. The popular FWP provided foodgrains to complement wages. It

was then revamped and renamed to NREP with almost similar objective.5

On 1 April 1989, to converge employment generation, infrastructure development and food

security in rural areas, the government integrated NREP and RLEGP into a new scheme

JRY. The most significant change was the decentralization of implementation by involving

local people through PRIs and hence a decreasing role of bureaucracy.6 Due to

implementation issues, JRY was restructured and renamed to JGSY in 1999.

On 2 October 1993, the EAS was initiated to provide employment during the lean agricultural

season. The role of PRIs was reinforced with the local self-government at the district level

called the ‘Zilla Parishad’ as the main implementing authority. Again due to implementation

issues, EAS was merged with SGRY in 2001

In January 2001, the government again introduced FWP similar to the one initiated in 1977.

Once again due to implementation issues, it was merged with Mahatma Gandhi NREGA in

2006.[13]

On 1 April 1999, the JRY was revamped and renamed to JGSY with a similar objective. The

role of PRIs was further reinforced with the local self-government at the village level called

the ‘Village Panchayats’ as the sole implementing authority. But again due to implementation

issues, it was merged with SGRY in 2001. Once again on 25 September 2001 to converge

employment generation, infrastructure development and food security in rural areas, the

government integrated EAS and JGSY into a new scheme SGRY. The role of PRIs was

retained with the ‘Village Panchayats’ as the sole implementing authority Yet again due to

implementation issues, it was merged with Mahatma Gandhi NREGA in 2006. In 2005, and

again to converge employment generation, infrastructure development and food security in

rural areas, the government integrated SGRY and FWP into a new scheme called Mahatma

Gandhi NREGA. The total government allocation to these precursors of Mahatma Gandhi

NREGA had been about three-quarters of 1 trillion (equivalent to over $18 billion).

5 Planning Commission 2001, pp. 12–15

6 Planning Commission 2001, pp. 16,24–2

9

OBJECTIVES AND DETAILS OF THE RURAL

EMPLOYMENT GUARANTEE SCHEME

OBJECTIVES

MGNREGA is a powerful instrument for ensuring inclusive growth in rural India through its

impact on social protection, livelihood security and democratic empowerment. Its important

objectives are7:

1. Social protection for the most vulnerable people living in rural India through providing

employment opportunities;

2. Livelihood security for the poor through creation of durable assets, improved water

security, soil conservation and higher land productivity;

3. Drought-proofing and flood management in rural India;

4. Empowerment of the socially disadvantaged, especially women, Scheduled Castes (SCs)

and Schedules Tribes (STs), through the processes of a rights-based legislation;

5. Strengthening decentralized, participatory planning through convergence of various

antipoverty and livelihoods initiatives;

6. Deepening democracy at the grass-roots by strengthening Panchayati Raj Institutions;

7. Effecting greater transparency and accountability in governance;

DETAILS OF THE LAW

The stated objective of the Act is “to enhance livelihood security in rural areas by providing

at least 100 days of guaranteed wage employment in a financial year to every household

whose adult members volunteer to do unskilled manual work. This work guarantee can also

serve other objectives: generating productive assets, protecting the environment,empowering

rural women, reducing rural-urban migration and fostering social equity, among others."8

For effective management, the legislation also mentions implementation principles and key

agencies.The principles are: collaborative partnership and public accountability; community

7 ] “MGNREGA (2012) Operational Guidelines 2012”, Govt. of India, Ministry of Rural Development,

Department of Rural Development (MG NREGA-I Division) 8 Ministry of Rural Development 2005, pp. 1–2

10

participation; panchayats as principal authorities; overall responsibility of district programme

coordinator (DPC) and programme officer (PO); coordination among agencies; and resource

support. The agencies are: Gram Sabha and Gram Panchayat at the village level; intermediate

panchayat and PO at the block level; district panchayats and DPC at the district level; state

employment guarantee council (SEGC), state government and employment guarantee

commissioner at the state level; and central employment guarantee council (CEGC)

and Ministry of Rural Development at the central level. The Act further mandates its ‘wide

publicity’.9 The statute further mandates planning through preparation of the District

Perspective Plan and the Annual Plan.

Likewise the stated registration process involves an application to the Gram Panchayat and

issue of job cards. The wage employment must be provided within 15 days of the date of

application. The work entitlement of ‘100 days per household per year’ may be shared

between different adult members of the same household.

The law too lists the permissible works: water conservation and water harvesting; drought

proofing including afforestation; irrigation works; restoration of traditional water bodies;land

development; flood control; rural connectivity; and works notified by the government. The

Act sets a minimum limit to the works executed by the Gram Panchayat as 50 per cent and to

the wage-material ratio as 60:40. The provision of accredited engineers, worksite facilities

and a weekly report on worksites is also mandated by the Act.10

Furthermore the Act sets a

minimum limit to the wages, to be paid with gender equality, either on a time-rate basis or on

a piece-ratebasis. The states are required to evolve a set of norms for the measurement of

works and schedule of rates. The unemployment allowance must be paid if the work is not

provided within the statutory limit of 15 days.

Moreover, the legislation details the financing pattern between the central and the state

government and the establishment of the ‘Employment Guarantee Funds’ at both levels.

Unlike the SGRY and NFFWP, the financing to the states is based on proposals and is not

predetermined. The law stipulates Gram Panchayats to have a single bank account for

NREGA works which shall be subjected to public scrutiny. To promote transparency and

accountability, the act mandates ‘monthly squaring of accounts’. The statute further imposes

monitoring across all five levels: the village level, the block level, the district level, the state

9 Ministry of Rural Development 2005, pp. 3–7

10 Ministry of Rural Development 2005, pp. 12–19

11

level, and the central level. Further the monitoring methods and the evaluation criteria are

also detailed in the act using which an annual ranking of districts may be drawn. For

evaluation of outcomes, the law also requires management of data and maintenance of

records, like registers related to employment, job cards, assets, muster rolls and complaints,

by the implementing agencies at the village, block and state level. The most detailed part of

the Act (chapter 10 and 11) deals with transparency and accountability that lays out role of

the state, the public vigilance and, above all, the social audits.11

The legislation specifies the

role of the state in ensuring transparency and accountability through upholding the right to

information and disclosing information proactively, preparation of annual reports by CEGC

for Parliament and SEGCs for state legislatures, undertaking mandatory financial audit by

each district along with physical audit, taking action on audit reports, developing a Citizen's

Charter, establishing vigilance and monitoring committees, and developing grievance

redressal system.

To ensure public accountability through public vigilance, the NREGA designates ‘social

audits’ as key to its implementation

The continuous process of social audit on NREGA works involves public vigilance and

verification at the stipulated 11 stages of implementation: registration of families; distribution

of job cards; receipt of work applications; selection of suitable public works; preparation of

technical estimates; work allocation; implementation and supervision; payment of wages;

payment of unemployment allowance; evaluation of outcomes; and mandatory social audit in

the Gram Sabha or Social Audit Forum. The Gram Panchayat Secretary called ‘Sarpanch’ is

designated as the authority responsible for carrying out the social audit at all stages. For some

stages, the programme officer and the junior engineer is also responsible along with

Sarpanch12

. The statute designates the Gram Sabha meetings held to conduct social audit as

the ‘Social Audit Forums’ and spells out three steps to make them effective: publicity and

preparation of documents; organizational and procedural aspects; and the mandatory agenda

involving questions verifying compliance with norms specified at each of the 11 stages of

implementation.13

The Act recommends establishment of ‘Technical Resource Support Groups’ at district, state

11

Ministry of Rural Development (2005). "Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA)" 12

Menon, Sudha (10 Jan 2008). "Right To Information Act and NREGA: Reflections on Rajasthan" 13

Ministry of Law and Justice (2008). "Constitution of India". "Ministry of Law and Justice",Government of India.

12

and central level and active use of Information Technology, like creation of a ‘Monitoring

and Information System (MIS)’ and a NREGA website, to assure quality in implementation

of NREGA through technical support. The law allows convergence of NREGA with other

programmes. As NREGA intends to create ‘additional’ employment, the convergence should

not affect employment provided by other programmes.

THE LAW AND THE CONSTITUTION OF INDIA

The Act aims to follow the Directive Principles of State Policy enunciated in Part IV of

the Constitution of India. The law guarantees the 'right to work which is consistent with

Article 41 that directs the State to secure to all citizens the right to work. Further conforming

to the Article 23 of the Universal Declaration of Human Rights that defines the right to

work as a basic human right, this law guarantees the right to work to the people of India and

hence is termed as a "People’s Act". The statute also seeks to protect the environment

through rural works which is consistent with Article 48A that directs the State to protect the

environment.

In accordance with the Article 21 of the Constitution of India that guarantees the right to life

with dignity to every citizen of India, this act imparts dignity to the rural people through an

assurance of livelihood security. The Fundamental Right enshrined in Article 16 of the

Constitution of India guarantees equality of opportunity in matters of public employment and

prevents the State from discriminating against anyone in matters of employment on the

grounds only of religion, race, caste, sex, descent, place of birth, place of residence or any of

them. The statute mandates that at least one-third of the beneficiaries shall be

women14

. Moreover women representation in the employment under the Act has been

reported as 48 per cent from 2009–12, showing that the law has been used as an instrument to

reduce gender inequality and foster women empowerment. Moreover the share of Scheduled

Castes and Scheduled Tribes has been around 30 per cent, showing that the statute has

empowered weaker sections ensuring social justice. In doing so, the legislation also follows

Article 46 that requires the State to promote the interests of and work for the economic uplift

of the scheduled castes and scheduled tribes and protect them from discrimination and

exploitation.15

Article 40 mandates the State to organise village panchayats and endow them

with such powers and authority as may be necessary to enable them to function as units of

14

(Section 4.6.9 of the NREGA Operational Guidelines) 15

Roy, Aruna; Dey, Nikhil (2012). "Much more than a survival scheme". The Hindu. The Hindu.

13

self-government. Conferring the primary responsibility of implementation on Gram

Panchayats, the Act adheres to this constitutional principle. Also the process of

decentralization initiated by 73rd Amendment to the Constitution of India that granted a

constitutional status to the Panchayats is further reinforced by the Mahatma Gandhi NREGA

that endowed these rural self-government institutions with authority to implement the law.16

CURRENT STATUS

In current financial year 2011-12, (upto December, 2011) 3.77 Crore households were

provided employment and 120.88 Crore person-days of employment were generated. The

enhanced wage earnings have led to a strengthening of the livelihood resource base of the

rural poor in India; 72 percent of funds utilized were in the form of wages paid to the

workers. Self-targeting in nature, the programme has high work participation for

marginalized groups like SC/STs (40%) and Women (49%) in 2011-12 (upto December,

2011). Total works undertaken were 62.72 lakh in the same period, of which 53 percent

relates to Water Conservation, 12 percent for the provision of Irrigation facility to lands

owned by SC/ST/BPL/S&M Farmers and IAY beneficiaries, 22 percent for Rural

Connectivity, 9 percent for Land Development, 4 percent for Any other activity approved by

MoRD and 0.37 percent for Bharat Nirman Rajiv Gandhi Seva Kendra. Women participation

in current financial year upto December, 2011 was 49% and the participation of SC & ST in

current financial year upto December, 2011 is 40%.

16

The Hindu (2012). "Manmohan directs Planning Commission to address gaps in NREGA"

14

FEATURES OF RURAL EMPLOYMENT GUARANTEE

SCHEME

FEATURES OF EMPLOYMENT ASSURANCE SCHEME

The Employment Assurance Scheme (EAS) was introduced w.e.f. 2nd October, 1993 in the

rural areas of 1778 blocks of 261 districts in which the Revamped Public Distribution System

(RPDS) was in operation.

The blocks selected were in the drought prone areas, desert areas, tribal areas and hill areas.

During 1994-95 EAS was extended to 409 blocks under DPAP/DDP and Modified Area

Development Approach (MADA) blocks having larger concentration of tribal.

In March, 1995 the scheme was further extended to 256 blocks out of which 233 blocks were

flood prone in the States of Uttar Pradesh, Bihar, Assam and 23 blocks were of Jammu &

Kashmir in view of the special conditions prevailing there.

The Intensified Jawahar Rozgar Yojana (IJRY) merged with EAS on 1.1.1996. Consequently,

722 non-EAS blocks in 120 IJRY districts were also covered under the scheme. At present,

the scheme is being implemented in all the rural blocks of the country17

.

Objective:

The primary objective of the Employment Assurance Scheme is to provide gainful

employment during lean agricultural season in manual work to all able bodied adults in rural

areas who are in need and desirous of work, but cannot find it.

The secondary objective is the creation of economic infrastructure and community assets for

sustained employment and development. Salient Features

(i) The scheme is operative in the all rural blocks of the country.

(ii) It is a demand driven scheme with no fixed earmarking of annual funds for any district or

block.

17

Ministry of Rural Development (2002). "Sampoorna Grameen Rozgar Yojana (SGRY) Guidelines"

15

(iii) Men and women over 18 years and below 60 years of age, normally residing in the

villages are covered.

(iv) A maximum of two adults per family are provided the assurance of 100 days’

employment.

(v) Works should be labour intensive which results in the creation of durable productive

assets.

(vi) As an individual beneficiary oriented scheme, on the lands of BPL families, horticulture

development is a permitted activity.

(vii) Implementing agencies are Block Development Officers, District officers of various line

Departments, Block Samitis, Gram Panchayats and NGOs.

(viii) Expenditure is shared between the Centre and the States on 80 : 20 basis.

(ix) The desirous workers have to get themselves registered with village level workers or

Gram Panchayats and are issued a family card.

(x) 50% of EAS funds shall be utilised for watershed development only in DPAP and DDP

blocks.

(xi) When about 10 workers demand work, new projects can be started by the block level

officer for providing employment.

FEATURES OF MNEREGA

The notion that public works programs can provide a strong social safety net through

redistribution of wealth and generation of meaningful employment has been integral to the

Indian policy-making agenda. The Mahatma Gandhi National Rural Employment Guarantee

Act (MGNREGA) 2005 is currently a major part of this agenda. The Act was enacted at a

point in time when more than a decade of sustained high growth in GDP experienced in the

1980s and the 1990s was perceived not to have made a sufficient dent in poverty in the rural

India18

.

18

“MGNREGA (2012) Operational Guidelines 2012”, Govt. of India, Ministry of Rural Development, Department of Rural Development (MG NREGA-I Division)

16

The Act was notified on 5 September 2005 and was implemented in rural districts in 3

phases. Each state is required to design an employment guarantee scheme based on a set of

national guidelines. Public work programmes or employment generation programmes like the

Maharashtra Employment Guarantee Scheme (MEGS), Food for Work Programme (FWP),

Sampoorna Grameen Rozgar Yojana (SGRY) and National Food for Work Programme

(NFFWP) have been used to address the issue of unemployment and generate employment

through the creation of labour- intensive productive assets and have thus provided the

foundation for the MGNREGA19

.

Rationale

A common feature of all the schemes mentioned above was that they were formulated and

executed by implementing agencies and their termination was at the will of the executive.

The theoretical rationale behind employing these programmes is fourfold: i) mitigation of

unexpected and seasonal shocks ii) mitigation of idiosyncratic shocks iii) anti- poverty

measures; and iv) provision of public goods and services.

Mandate

The Act mandates enhancing livelihood security in rural areas by providing at least 100 days

of guaranteed wage employment in a financial year to every household whose adult members

volunteer to do unskilled manual work.

19

“MGNREGA (2012), Report to the people”, Ministry of Rural Development, Department of Rural Development, Government of India, New Delhi, 2nd February, 2012.

17

Objective

The primary objective of the Act is augmenting wage employment for the poorest of the poor

while the secondary objective is to strengthen natural resource management through works

that address causes of chronic poverty, like drought, and thus encourage sustainable

development.

Rationale behind Employment Guarantee Programmes

The Act is an attempt to provide a legal guarantee of employment to anyone in rural areas

willing to do casual manual labour at a statutory minimum wage. What makes the

MGNREGA distinct from any other public employment programme is that it is

a universal and enforceable legal right concurrent with some of the provisions of Article

39 and Article 41 of the Directive Principles of State Policy in the Indian Constitution that

enshrine the ideals of the Right to Work.

Planning, Implementation and Funding

The graphic below depicts the processes and agencies involved in planning, implementation

and funding of works under the MGNREGA20

.

20

Moitri Dey (2010),“National Rural Employment Guarantee Act (NREGA) A Range of Possibilities”, International Journal of Rural Studies (IJRS), Vol. 17 No. 2 Oct, 2010, pp.1-7.

18

Design features

Key design features in the context of social security and unemployment support:

Guaranteed Employment - Any adult member of a rural household applying for work

under the Act is entitled to employment. Every rural household is entitled to not more

than 100 days of employment.

Guaranteed Wages - Wages are to be paid on a weekly basis and not beyond a

fortnight. Wages are to be paid on the basis of:

o Centre- notified, state- specific MGNREGA wage list

o Time rates and Piece rates as per state- specific Schedule of Rates (SoRs)

o In any case, the wage cannot be at a rate less than Rs. 100 per day.

Unemployment Allowance – If work is not provided within 15 days of applying, the

state is expected to pay an unemployment allowance which is one- fourth of the wage

rate.

Provision of Work – Work is to be provided within a 5km radius of the applicant’s

village, else compensation of 10 per cent extra wage is to be provided to meet

expenses of travel.

Gender Equity – Men and women are entitled to equal payment of wages. One- third

of the beneficiaries are supposed to be women. Worksite facilities like creches are to

be provided at all worksites.

19

Financial Inclusion – Since 2008, all wage payments have had to be transferred to

bank or post office accounts of beneficiaries.

Social Security Measures – In 2008, a provision was created which made it possible

to cover beneficiaries under either the Janashree Bima Yojana (JBY) or the Rashtriya

Swasthya Bima Yojana (RSBY).

Transparency and Accountability – All MGNREGA- related accounts and records

documents have to be available for public scrutiny. Contractors and use of machinery

is prohibited.

Rights- based, demand- driven approach – Estimation and planning of work is

conducted on the basis of the demand for work. Hence, beneficiaries of the scheme

are enabled to decide the point in time at which they want to work.

Adult associates of a non-urban family may implement for career if they are willing to

do inexperienced guide perform.

Such a family will have to implement for signing up to the regional Gram Panchayat,

in composing, or by mouth.

The Gram Panchayat after due confirmation will problem a Job Cards to the family as

a whole. The Job Cards will keep the picture of all mature associates of the family

willing to perform under

NREGA the Job Cards with picture is totally without any cost A Job Cards having

family may publish an itemized program for career to the gram:

Local gram Panchayat organization, revealing enough some time to length for which

performs is desired. The lowest times of career have to be 15.

The local Gram Panchayat will problem a old invoice of the published program for

career, against which the assurance of offering career within 15 times operates

Employment will be given within 15 times of program for perform by a career hunter.

If career is not offered within 15 times, everyday lack of employment allocation, in

money has to be salaried. Accountability of all transaction of need of employment

allocation is of the Declares.

At least one-third of individuals to whom perform is allocated perform have to be

females.

20

Wages are to be compensated according to lowest income as recommended under the

Minimum Wages Act 1948 for farming laborers in the Condition, unless the Center

informs a salary amount which will not be less than only Rs. 60/ per day

Disbursement of income has to be done on every week base and not beyond a couple

weeks.

Local Panchayat Raj Organizations, also known as PRI’s have a major part in

preparing and execution.

Each region has to get ready a display of tasks. The chosen performs to offer career

are to be chosen from the record of allowable performs The different groups of

allowable performs are as follows:

Main Water Conservation

Drought Prevention (including Farmville farm and forestations)

Horrible Flood Protection

Land Development

Minor Watering, farming and area growth on

The area of SC/ST/ -BPL/IAY and

land change beneficiaries

Rural connectivity Work should normally be offered within 5 km distance of the town

or else additional income of 10% is due21

.

o Work website features such as crèche, water, shelter have to be provided

o Social Review has to be done by the local Gram Sabha.

o Grievance redresser systems have to be put in position for guaranteeing a

sensitive execution procedure.

o All records and information about the Program are to be created available to

any individual wanting to of acquiring a duplicate of such information, on

need and after spending a specified fee.

21

The National Rural Employment Guarantee Act 2005 (NREGA), Annual Report April 2008-March 2009, Ministry of Rural Development, Department of Rural Development, Govt. of India, New Delhi.

21

PROBLEMS IN IMPLEMENTATION OF THE SCHEMES

The NREGA is an important step towards realisation of the right to work. It is expected to

enhance people's livelihood security on a sustained basis, by developing economic and social

infrastructure in rural areas. One of the most distinguishing features of the NREGA is its

approach towards empowering citizens to play an active role in the implementation of

employment guarantee schemes, through gram sabhas, social audit, participatory planning

and other activities.

"More than 83.05 lakh rural households have been provided work under the NREGA," said

Rural Development Minister Dr Raghuvansh Prasad at a meeting in the Lok Sabha on August

25, 2006. He went on to add that 254,73,820 job cards had been issued, of which 89,43,703

people had demanded employment.

The NREGA is being closely monitored by various stakeholders, from policymakers to

grassroots organisations. Surveys -- both rapid and extensive -- are being carried out to assess

its implementation on the ground. Reports point out where the Act is lagging behind, and

areas where efforts are visible and appreciated. This article discusses some quarters that need

to be addressed in order to meet the objectives of the Act22

.

Registration of families

Definition of a household

The operational guidelines of the NREGA detail a household as a nuclear family comprising

mother, father and their children. In addition, a household refers to a single-member family.

Despite this explanation, there is still a lot of confusion about the definition of this critical

term. For instance, reports from Madhya Pradesh (Dhar district) show that gram panchayats

treat joint families as one household, thus issuing them a single job card. Our country has

historically followed the system of joint families; such practices will put joint families in a

disadvantageous position.

22

Harsimran Singh (2012), “Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Issues and Challenges”, International Journal of Research in Commerce, Economics & Management, Vol. 2, No. 1, Jan, 2012, pp. 136-140

22

Denial of registration

Reports from the field point to incidents of denial of registration to single-woman-headed

households and physically challenged individuals. Discrimination based on caste has also

been noted in some states like Gujarat. During a survey conducted by Participatory Research

in Action (PRIA) in the state of Uttar Pradesh (Sitapur district), women were discouraged

from registering. In Gujarat (Sabarkantha district) the aged and physically challenged were

denied registration forms 23

Distribution of job cards

According to data provided on the NREGA website (www.nrega.nic.in), maintained by the

Ministry of Rural Development, the percentage of job cards issued to registered households

varies across states. For some states like Maharashtra it stands at 12%, while for others such

as Andhra Pradesh it is over 90%.

Delay in distribution of job cards

The point of concern, however, is not just the percentage of issue of job cards but the

percentage of distribution of job cards. Though job cards have been prepared across most

states, in many states they have not reached the people, thereby restricting their right to

demand work. A probable cause for this is the workload of the panchayat sevak who

undertakes the task of distribution. On average, each sevak has two or three panchayats under

him/her, thus making the task extremely difficult.

Applications for work and their receipt

Unsolicited fees being charged for work application forms

Fees for application forms are being charged in many states like Gujarat, Madhya Pradesh

and Jharkhand. The fee ranges from Rs 5 to Rs 50 in some states. Forms are also sold openly

in local markets or haats. This flouts the NREGA guidelines that state that applications may

even be submitted to the gram panchayat on a plain piece of paper.

Non-issuance of receipts

Another general problem noted in the villages is the absence of a system to issue receipts

(pauthis) to applicants. This could be because of lack of awareness on the part of the

23

(report by Participatory Research in Action (PRIA); survey undertaken from April 25-May 25 in 11 states. For

complete report visithttp://www.righttofoodindia.org/rtowork/ega_articles.html).

23

panchayat sevak and the villagers. Receipts, however, are crucial as a proof of work

demanded.

Implementation and supervision of NREGS works

Absence of worksite facilities

The NREGA provides for facilities for safe drinking water, shade for children, periods of rest

and a first-aid box at the work site24

. But a lot has to be done to ensure these facilities, the

notable absence of which is a problem that cuts across states. Some reports from the field in

Orissa (Kalahandi district) (Advisor to the Commissioners; Implementation of NREGA in

Bhawanipatna block of Kalahandi district of Orissa, June 2006), Chhattisgarh (Jashpur

district), Jharkhand (Palamau district), Madhya Pradesh (Jhabua, Khandwa and Umaria

districts) and Gujarat (Sabarkantha district) observe a complete lack of facilities at the

worksite. In Rajasthan's Dungarpur district, however, it was heartening to note that medical

kits were found at most worksites.

Small children remain unattended, in the heat. As a consequence, women are hesitant to bring

their children to the sites. It also forces them to rethink about applying for work in the first

place. Trees act as the only source of shade for the rural poor working at the sites. The

Commissioners of the Supreme Court 25

have advised the states that if need be, temporary

shelters must be built for those doing NREGA labour. The PIL focuses on the general need to

uphold the 'right to food', which follows from the fundamental 'right to life' enshrined in

Article 21 of the Indian Constitution. Though the final judgment in the case is still awaited,

significant 'interim orders' have been passed from time to time.

Presence of contractors

Like in many other rural development programmes, contractors are increasingly becoming a

threat to the NREGA. Though this may not be very apparent on the surface, private

contractors are slowly finding their way into the system. The Act clearly states (Schedule I,

Section 11), that no contractor is permitted in the implementation of these projects. Yet,

reports from Chhattisgarh and Orissa point towards this emerging problem.

Non-availability of muster rolls at the worksite

24

Section 27, Schedule II of the NREGA 25

In the case of PUCL v. UOI and others

24

It is rare indeed to find muster rolls at the worksites. Reports from across NREGA districts

show that kutchamuster rolls/attendance sheets are being maintained by people at worksites.

Rough notebooks and diaries are being used to mark attendance and make wage payments.

Shortage of staff and delay in appointments

The Act's launch was not accompanied by the appointment of additional staff for its

implementation. This has resulted in the existing staff being burdened with additional work.

At the panchayat level, the guidelines specifically advised the appointment of a 'rozgar

sevak'. Disappointingly, this has not yet been done. The lack of staff is having a negative

impact on the workings of the NREGA. A survey in Jashpur block, Chhattisgarh, found that

sub-engineers were being burdened with the task of maintaining job cards, implying that their

primary tasks suffered. Such additional appointments are a rare opportunity to provide

employment to the youth in our villages and should not be allowed to be squandered due to

administrative hurdles.

Stopping of works

Some states like Chhattisgarh have disrupted work under the NREGA on account of the

monsoons. A circular issued by the Chhattisgarh government clearly states that from June 15

to October 15, the state will not be liable to open works within 15 days, or provide an

unemployment allowance. Rumours of similar disruptions also abound in the state of Orissa.

Such declarations not only violate the Act, they also affect landless farmers. Field

organisations from Chhattisgarh report that due to such stoppages, the wage rate has

decreased to as little as Rs 15, leaving landless farmers with no negotiating powers. They are

forced to accept whatever is determined by rich landlords. Such occurrences beat the

objectives of the formulation of the NREGA.

Disruption due to imposition of election code of conduct

Elections (including by-polls and state elections) also disrupt the Act's implementation. Early

this year (in March 2006), some states like West Bengal, Kerala, Tamil Nadu and Assam

witnessed a disruption in the NREGA due to the imposition of the election code of conduct.

Lately, the NREGA process is being disrupted in the Malda and Puruliya districts of West

Bengal, on account of by-polls. Absence of confirmed employment, refusal of work to

applicants and a ban on starting new works in these areas are forcing labourers to migrate in

25

search of work. This, despite clear instructions from the Planning Commission that job

cardholders would be provided employment after the announcement of elections

Payment of wages

Delay in wage payments

Delays in wage payments have always been a matter of concern in previous employment

programmes, and this issue continues to plague the NREGA. Wage payments are delayed for

weeks, sometimes months. The time lag varies from state to state. For instance, in Jashpur

district, Chhattisgarh, month-long delays were noted. In some areas like Barwani district,

Madhya Pradesh, the delay was for a period of 15 to 30 days. Delays were also noted in

Manika and Manatu blocks in Jharkhand.

Payment of less than the minimum wage

In many states, workers do not earn minimum wages. For instance, in Gujarat's Sabarkantha

district the paid wage is as low as Rs 4 to Rs 726

; in Kalahandi district (Bhawanipatna block)

of Orissa workers earn between Rs 40-Rs 50, whereas the minimum wage is Rs 55. Women

are paid even less -- about Rs 30 per day. In some states like Jharkhand, workers are paid as

little as Rs 10.

The reasons behind payment of less than the minimum wage vary. In some states soil type is

not being considered, as a result of which payments are affected. The system of chauka in

some states like Jharkhand also leads to the lowering of wages. As elaborated by Jean Dreze

and Bela Bhatia, in their27

: "Under this system, the workers are supposed to dig a chauka (pit)

of pre-specified size (for example, 100 cubic feet in the case of soft soil) in order to earn the

minimum wage. In practice, this system raises several problems. To start with, it typically

takes more than a day for an average labourer to complete the specified task, making it hard

to earn the statutory minimum wage. This is a violation of the Act, which states that the

"schedule of rates" should be such that a labourer working for seven hours would normally

earn the minimum wage (Schedule I, Section 8)."

26

status report on implementation of the NREGA in Gujarat, prepared by Sabar Ekta Manch and Janpath, April 2006 27

article 'Employment Guarantee in Jharkhand: Ground Realities', published in the Economic and Political Weekly, July 22, 2006

26

While we have highlighted some of the implementation problems of the NREGA, it is

important to note that the Act is still in its infancy. It takes years to put in place the tools and

instruments needed to actualise the right to employment through a scheme, even in the best of

circumstances.

The NREGA addresses itself chiefly to working people and their fundamental right to live

with dignity. The success of the NREGA, however, will depend on people's realisation of the

Act as a right. Effective levels of awareness and sustained public pressure are crucial to

ensure that the implementation problems are addressed and the objectives met.

SOCIAL AUDITS

Civil society organisations (CSOs), nongovernmental organisations (NGOs), political

representatives, civil servants and workers of Rajasthan and Andhra Pradesh collectively

organise social audits to prevent mass corruption under the NREGA. As the corruption is

attributed to the secrecy in governance, the 'Jansunwai' or public hearing and the right to

information (RTI), enacted in 2005, are used to fight this secrecy. Official records obtained

using RTI are read out at the public hearing to identify and rectify irregularities. "This

process of reviewing official records and determining whether state reported expenditures

reflect the actual monies spent on the ground is referred to as a social audit." Participation of

informed citizens promotes collective responsibility and awareness about entitlements.

An application under the RTI to access relevant official documents is the first step of the

social audit. Then the management personnel of the social audit verify these official records

by conducting field visits. Finally, the 'Jansunwai' or public hearing is organised at two

levels: the Panchayat or village level and the Mandal level. The direct public debate

involving the beneficiaries, political representatives, civil servants and, above all, the

government officers responsible for implementing the NREGA works highlights corruption

like the practice of rigging muster rolls (attendance registers) and also generates public

awareness about the scheme28

.

28 World Bank (2008). "Social Audits: from ignorance to awareness. The AP experience".

27

These social audits on NREGA works in Rajasthan highlight: a significant demand for the

scheme, less that 2 per cent corruption in the form of fudging of muster rolls, building the

water harvesting infrastructure as the first priority in the drought-prone district, reduction of

out-migration, and above all the women participation of more than 80 per cent in the

employment guarantee scheme. The need for effective management of tasks, timely payment

of wages and provision of support facilities at work sites is also emphasised.

To assess the effectiveness of the mass social audits on NREGA works in Andhra Pradesh,

a World Bank study investigated the effect of the social audit on the level of public awareness

about NREGA, its effect on the NREGA implementation, and its efficacy as a grievance

redressal mechanism. The study found that the public awareness about the NREGA increased

from about 30 per cent before the social audit to about 99 per cent after the social audit.

Further, the efficacy of NREGA implementation increased from an average of about 60 per

cent to about 97 per cent. Finally, the effectiveness of the social audit as a grievance redressal

mechanism was measured to be around 80 per cent.29

Save MGNREGA

'Save MGNREGA' is a set of demands proposed during the joint meeting of the national

leadership of CITU, AIAWU, AIDWA and AIKS in New Delhi. The agenda was to discuss

the dilution of MGNREGA scheme by the new government. Following demands were

proposed:

1. Govenrment of India should increase the Central allocation for the scheme so that number

of workdays can be increased to 200 and per day wage can be increased to Rs. 300.

2. Job card to be issued for everyone who demands job, failing which, after 15 days

employment benefits should be given.

3. Minimum 100 days of work should be ensured to all card holders

4. Minimum wage act should be strictly implemented. Delay in wage payment should be

resolved.

5. MGNREGA should be extended to urban areas.

6. Gram Sabhas should be strengthened to monitor proper implementation of the scheme and

also to check corruption.

29

NewsYaps (2009). "NREGA: Effects and Implications"

28

New Amendments Proposed in 2014

Union Rural development Minister, Nitin Gadkari, has proposed to limit MGNREGA

programmes within tribal and poor areas. He also proposed to change the labour:material

ratio from 60:40 to 51:49. As per the new proposal the programme will be implemented in

2,500 backward blocks coming under Intensive Participatory Planning Exercise. These blocks

are identified as per the percentage BPL population. The BPL population in these blocks are

identified as per the Planning Commission Estimate of 2013 and a Backwardness Index

prepared by Planning Commission using 2011 census. This backwardness index consist of

following five parameters - percentage of households primarily depended on agriculture,

female literacy rates, households without access to electricity, households without access to

drinking water and sanitation within the premises and households without access to banking

facilities.

29

CONCLUSION

NREGA is among the largest social welfare schemes implemented anywhere in the world.

The Act provides for at least 100 days of wage employment to at least one adult member of a

rural household who is ready to do unskilled manual work.

In the current financial year alone, it has reached out to 35.8 million households in selected

districts, creating nearly 1.59 billion person-days of work in this financial year. NREGA

envisages that physical work leading to community assets like irrigation canals, all-weather

roads, water tanks, etc, will be created through this labour in the vicinity of villages.India’s

NREGA is the only Act which gives its rural people such a right and that too in the era of

Liberalization, Privatization and Globalization (LPG). It has a vital role to play because of its

humane approach. It serves as an effective safety net for the unemployed especially during

famine and drought. It has enabled them with sufficient purchasing power and they are able

to at least to support their basic necessity i.e. food.

The Act has confined the rural poor to their areas and stopped migration to the cities. It is not

only giving rural livelihoods but also involving them in other non-agricultural work. This has

helped in handling disguised workers. Employment in other non-agricultural work will also

improve the rural infrastructure i.e. rural asset building. It will ultimately lead to sustainable

development.

As with any government scheme, proponents hail it as one of the most direct and effective

poverty alleviation programmes, while detractors believe a lot of money is going into wrong

and undeserving hands.

There have been two or three significant and recurring criticisms about NREGA. One of them

is that the assets created by the scheme are of dubious quality. Another criticism is that funds

are being given out as dole to the not-so-deserving. Neither criticism may be entirely

unwarranted, as it is difficult to check the exact status of people or quality of assets being

created in such a massive programme.

At another level, the country's infrastructure sector is booming but the construction industry

is in dire need of skilled workforce. The paucity is not only delaying projects but also

impacting the quality of workmanship. There is hardly a channel of supply of skilled and

certified masons, bar-benders, carpenters, etc, on the scale required, so that a person serving

30

as an unskilled labour till the other day at one site may declare himself a mason at another

site, the next day.

Thus, marrying the two major plan initiatives will kill two birds with one stone: make

NREGA more effective and provide a steady supply of skilled workforce. The idea may call

for some path-breaking coordination at the national level, but that could be handled by the

Planning Commission.

31

BIBLIOGRAPHY

Dobhal, Harsh. Writings on Human Rights, Law, and Society in India: A Combat Law

Anthology : Selections from Combat Law, 2002–2010, 2011

Pasha, Dr. Bino Paul GD and S M Fahimuddin. Role of ICT in Mahatma Gandhi

National Rural Employment Guarantee Act (MGNREGA)

Ministry of Rural Development (2012). "MGNREGA Sameeksha, An Anthology of

Research Studies on the Mahatma Gandhi National Rural Employment Guarantee

Act, 2005, 2006–2012". "Ministry of Rural Development", Government of

India ,Orient BlackSwan Publications , New Delhi , 2012

WEBSITES

Novotny, J., Kubelkova, J., Joseph, V. (2013): A multi-dimensional analysis of the

impacts of the Mahatma Gandhi National Rural Employment Guarantee Scheme: a

tale from Tamil Nadu. Singapore Journal of Tropical Geography, 34, 3, 322-

341.http://onlinelibrary.wiley.com/doi/10.1111/sjtg.12037/full

Ghildiyal, Subodh (11 Jun 2006). "More women opt for rural job scheme in

Rajasthan". The Times of India

Ministry of Rural Development (2005). "The National Rural Employment Guarantee

Act 2005 (NREGA) – Operational Guidelines". "Ministry of Rural

Development", Government of India.

Ministry of Rural Development (2002). "Sampoorna Grameen Rozgar Yojana

(SGRY) Guidelines". "Ministry of Rural Development", Government of India