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National Rural Employment Guarantee Scheme

From GovernIndia

The National Rural Employment Guarantee Act (NREGA, also known as the National Rural Employment Guarantee Scheme, NREGS) is an Indian legislation enacted on August 25, 2005. The NREGA provides a legal guarantee for 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.

This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living below poverty line in rural India. It attempts to bridge the gap between the rich and poor in the country. Roughly one-third of the stipulated work force must be women.

Contents

Political background

The act was brought about by the UPA coalition government headed by Dr. Manmohan Singh. The promise of this project was one of the major factors that gained UPA victory in the Indian general election, 2004. The scheme starting from February 2, 2006 in 200 districts (out of a total of 614 in the country) will cover all districts in five years. The government announced the addition of another 130 districts in the financial year 2007-8.[1]

Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has been a major influence on this project.

The plan

Salient Features

The NREGA works are intended to create permanent assets in the rural areas for future needs. These include water conservation and water harvesting, drought proofing (including afforestation and tree plantation); irrigation canals including micro and minor irrigation works; provision of irrigation facility, horticulture plantation and land development facilities on land owned by households belonging to the Scheduled Castes and Scheduled Tribes or to Below Poverty Line Families or to beneficiaries of land reforms or to the beneficiaries under the Indira Awas Yojna of the Government; renovation of traditional water bodies including desilting of tanks; land development; flood control and protection works including drainage in water logged areas; rural connectivity to provide all-weather access; and any other work which may be notified by the Central Government in consultation with the State Governments.

Central Government shall meet the cost towards the payment of wage, 3/4 of material cost and certain percentage of administrative cost. State Government shall meet the cost towards unemployed allowance, 1/4 of material cost and administrative cost of State council.

Right Based Framework

All adult members of a rural household willing to do unskilled manual work have the right to demand employment. Such households will apply for the Job Card to the Gram Panchayat. The Gram Panchayat will verify the age and local domicile of the applicant. After verification, the Gram Panchayat will issue a Job Card to the household with photograph free of cost. The Job Card contains the details of adult member enrolled and his /her photo, and must remain in the custody of the household. Job Cardholder can apply for work to the Gram Panchayat which will issue him/her a dated receipt of the work application. Registered person can submit an application for work in writing (for at least fourteen days of continuous work) either to panchayat or to Programme Officer.

The panchayat/programme officer will accept the valid application and issue dated receipt of application, letter providing work will be sent to the applicant and also displayed at panchayat office. The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.

Unemployment Allowance

Unemployment Allowance will be provided by the States to an applicant if he/she is not provided employment within 15 days of the receipt of application seeking employment from the date on which the employment has been sought in case of an advance application, whichever is later.

Permissible Works

Water conservation; drought proofing (including plantation and afforestation); flood protection; land development; minor irrigation. An annual shelf of works to be prepared in advance of every year. A ratio of 60:40 will be maintained between wage and material. Contractors/machinery are not permitted.

Results of the NREGA

Impact on Poverty

Employment opportunities and wage rates have gone up leading to significant dent in poverty in rural areas. Minimum wages for agricultural labourers have increased after the implementation of NREGA in Maharashtra from Rs. 47 to Rs. 72, in Uttar Pradesh from Rs.58 to Rs.100, in Bihar from Rs. 68 to Rs.81, in West Bengal from Rs.64 to Rs.75, in Madhya Pradesh from Rs.58 to Rs.85, in Jammu & Kashmir from Rs.45 to Rs.70, and in Chhattisgarh from Rs.58 to Rs.72, to name a few States. At the National Level, the average wages paid under NREGA has increased from Rs.65 in 2006-07 to Rs.84 in 2008-09. In the same year over 67% of the funds have been utilized in the form of wages (Rs.18146.93 Crore).

Impact on Income and Purchasing Power

Increase in wage rate and number of workdays in rural areas has increased the income of rural households. Increase in income has resulted in increase in ability of rural households to purchase foodgrains, other essential commodities, and to access education and health care.

Impact on Natural Resources

Rise in water table in dry and arid regions as large number of water conservation and drought proofing works have been taken up under NREGA. In Financial year 2008-09, upto mid-December 2008, 20.71 lakh works have been undertaken, of which 47% relate to water conservation, provision of irrigation facility to individual beneficiaries constituted around 19%, rural connectivity 17%, land development 16% and remaining 1% of works related to other activities.

Impact on Rural Governance Structure

Panchayati Raj Institutions and Gram Sabhas have been activated.

Financial Inclusion

More than 5.77 crores savings accounts in the banks and Post Offices have been opened for the NREGA workers.

Insurance

Insurance cover under Janashree Bima Yojana and Rashtriya Swasthya Bima Yojana being extended to NREGS workers.

MIS

1.16 crores muster rolls and 5.7 crore job cards have been put on the website (nrega.nic.in).

National Helpline

A toll free number 1800110707 has been set up to enable workers and other persons to submit complaints and queries to the Government. States like Orissa, Himachal Pradesh, West Bengal, Goa and Uttar Pradesh have also set up Helplines for the workers.

Social Audit

Social audit has been conducted in 1.8 lakhs Gram Panchayats. States have been directed to conduct social audit of each and every work of NREGA within 3 months.

Latest news

Reports

References

  1. List of Districts to be covered in different phases of NREGA implementation.

Retrieved from "http://www.governindia.org/wiki/National_Rural_Employment_Guarantee_Scheme"

This page was last modified on 21 August 2009, at 08:29.


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