LABOUR LAW-II PROJECT

FEATURES OF RURAL EMPLOYMENT GUARANTEE

SCHEME

Submitted by-
Submitted to-
Abhishek Barwal
Asha Verma
Reg no.- 13A004

8th
semester
1
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 Asha Verma Mam for her 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.

2
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
3
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
peoples 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

4
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.
5
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
1
volunteer to do unskilled manual work. 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
2
but failed. 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

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,

The Rural Landless Employment Guarantee Programme (RLEGP) was launched in August 1983 to focus
specially on landless households.

6
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
3
highlight the potential of the law if implemented effectively

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

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

Ministry of Rural Development 2012, p. ix

Planning Commission 2001, pp. 1227

7
Programme (NREP) of 1980. The popular FWP provided food grains to complement wages.
5
It was then revamped and renamed to NREP with almost similar objective.

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
6
people through PRIs and hence a decreasing role of bureaucracy. 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
[13]
2006.

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).

Planning Commission 2001, pp. 1215

Planning Commission 2001, pp. 16,242

8
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
7
objectives are :

Social protection for the most vulnerable people living in rural India through providing
employment opportunities;

Livelihood security for the poor through creation of durable assets, improved water security,
soil conservation and higher land productivity;

Drought-proofing and flood management in rural India;

Empowerment of the socially disadvantaged, especially women, Scheduled Castes (SCs) and
Schedules Tribes (STs), through the processes of a rights-based legislation;

Strengthening decentralized, participatory planning through convergence of various

antipoverty and livelihoods initiatives;

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

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,
8
among others."

For effective management, the legislation also mentions implementation principles and key
agencies. The principles are: collaborative partnership and public accountability; community

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

Department of Rural Development (MG NREGA-I Division)

Ministry of Rural Development 2005, pp. 12
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
9
publicity. 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,
10
worksite facilities and a weekly report on worksites is also mandated by the Act.
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

Ministry of Rural Development 2005, pp. 37

Ministry of Rural Development 2005, pp. 1219

10
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
11
the state, the public vigilance and, above all, the social audits. 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
12
Sarpanch . 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
13
implementation.

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

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

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

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

11
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 "Peoples 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
14
them. The statute mandates that at least one-third of the beneficiaries shall be women .
Moreover women representation in the employment under the Act has been reported as 48 per
cent from 200912, 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
15
exploitation. 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

(Section 4.6.9 of the NREGA Operational Guidelines)

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

12
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
16
that endowed these rural self-government institutions with authority to implement the law.

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"

13
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,
17
the scheme is being implemented in all the rural blocks of the country .

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

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

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"

14
(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.

Works should be labour intensive which results in the creation of durable productive assets.

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

development is a permitted activity.

Implementing agencies are Block Development Officers, District officers of various line
Departments, Block Samitis, Gram Panchayats and NGOs.

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

The desirous workers have to get themselves registered with village level workers or Gram
Panchayats and are issued a family card.

50% of EAS funds shall be utilised for watershed development only in DPAP and DDP
blocks.

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
18
India .

18
MGNREGA (2012) Operational Guidelines 2012, Govt. of India, Ministry of Rural Development,
Department of Rural Development (MG NREGA-I Division)

15
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
19
foundation for the MGNREGA .

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.
16
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
20
and funding of works under the MGNREGA .

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.

17
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 applicants 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.
18
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.

19
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 PRIs 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
21
additional income of 10% is due .

o Work website features such as crche, 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.

20
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
22
to be addressed in order to meet the objectives of the Act .

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

21
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
23
denied registration forms

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).

22
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
24
and a first-aid box at the work site . 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
25
Commissioners of the Supreme Court 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

Section 27, Schedule II of the NREGA

In the case of PUCL v. UOI and others

23
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

24
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
26
district the paid wage is as low as Rs 4 to Rs 7 ; 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
27
and Bela Bhatia, in their : "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)."

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

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

25
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
28
scheme .

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

26
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
29
mechanism was measured to be around 80 per cent.

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:

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.

Job card to be issued for everyone who demands job, failing which, after 15 days
employment benefits should be given.

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

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

MGNREGA should be extended to urban areas.

Gram Sabhas should be strengthened to monitor proper implementation of the scheme and
also to check corruption.

29
NewsYaps (2009). "NREGA: Effects and Implications"

27
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.
28
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.Indias

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

29
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.
30
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Dobhal, Harsh. Writings on Human Rights, Law, and Society in India: A Combat Law
Anthology : Selections from Combat Law, 20022010, 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, 20062012". "Ministry of Rural Development", HYPERLINK

"http://en.wikipedia.org/wiki/Government_of_India" 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", HYPERLINK
"http://en.wikipedia.org/wiki/Government_of_India" Government of India