NREGA: Challenges in implementation

The National Rural Employment Guarantee Act (NREGA) is now seven months old. It guarantees 100 days of employment in a financial year to every rural household whose adult members are willing to do unskilled manual work. The Act, launched in February 2006, has come into force in 200 districts of the country. 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 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. 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 (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). 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 distributionof 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 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 site (Section 27, Schedule II of the NREGA). 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 (in the case of PUCL vs UoI and others) 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 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 search of work. This, despite clear instructions from the Planning Commission that job cardholders would be provided employment after the announcement of elections (for complete instructions issued by the Planning Commission send an email to commissioners@vsnl.net).

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 7 (status report on implementation of the NREGA in Gujarat, prepared by Sabar Ekta Manch and Janpath, April 2006); 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 their article titled 'Employment Guarantee in Jharkhand: Ground Realities', published in the Economic and Political Weekly, July 22, 2006: "Under this system, the workers are supposed to dig a chauka (pit) of prespecified 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)." 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.

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Taking on the growing criticism of the Mahatma Gandhi National Rural Employment Guarantee scheme (MGNREGA) , National Advisory Council (NAC) member Aruna Roy has defended the governments flagship programme and blamed vested interests for creating negative perceptions about it. In a strongly-worded petition to NAC chairperson Sonia Gandhi, submitted following the NAC meeting on Friday, Roy observes: The MGNREGA continues to face hostility from a class of people who are unhappy with two significant achievement of the MGNREGA the changing power relations and enhanced wages of the rural poor and landless peasants. This class has fed into the deep suspicion of the poor in the media and the market, and been responsible for creating the impression that the MGNREGA has built no assets, is playing with mud, creating useless work, increased corruption, and is negatively affecting agriculture. These allegations have largely been made without any hard evidence or study. Roys statement comes a month after Rural Development Minister Jairam Ramesh hit headlines for dubbing MGNREGA a ditch-digging scheme. In an interview to online youth congress magazine Yuvadesh Ramesh had said: I dont agree that digging a ditch and taking soil out can be called employment. This is not the kind of employment we need. We need skilled employment. The scheme, he told Yuvadesh, would be reviewed in two years.Agencies Not sparing the media, Roy states: There is eagerness in the media to dismiss MGNREGA as pretty ineffective. More than expert commentaries in the print and electronic media, there is a need to get

feedback from its intended beneficiaries, to find out what has worked, what has not, and to ensure that its implementation is strengthened. MGNREGA is the only hope With threat of a drought staring farmers in the face, Roy has emphasised the need for urgent reforms of the MGNREGA scheme to be initiated immediately. All the more so this year as there is an additional crisis of a drought, or severely delayed monsoons. At a time like this, MGNREGA is the only hope for many to be able to survive. Roy in her note titled Issues of the MGNREGA that need critical attention points out that there is very little awareness that it is a demand driven scheme. Citing an example of a Kaam Maango Abhiyan campaign conducted in five blocks in Rajasthan that saw 40,000 people apply for work, Roy says: This shows the absurdity of the assertion that there is no demand for work from workers. The right to demand work is the first and most basic entitlement, the trigger without which the MGNREGA will fall apart. In order to address critical issues such as payment of wages on time, better planning for creation of quality assets and ensuring transparency, Roy has proposed that the NAC working group on transparency, accountability and governance hold a series of discussions in co-ordination with the Ministry of Rural Development and the State Governments to better evaluate the impact of the MGNREGA so far, monitor the implementation of MGNREGA 2.0, and suggest measures that might require support and efforts of not just the MoRD, but the Government as a whole.
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MGNREGA: The road ahead

The UPA Government's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) completed six years of its implementation this week. The flagship programme that aims at enhancing the livelihood security of people in rural areas has, time and again, attracted criticism for the lapses in its execution, undermining the success stories it has scripted. THE SIXTH anniversary of the mega scheme, thus, gives an opportunity to find out the pitfalls in it and to plan reforms. MGNREGA, lunched in February 2006, guarantees hundred days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. It seeks to achieve the doubletarget of rural development and employment. Such work carried under the scheme must be oriented towards rural development as afforestation, road construction, water conservation and harvesting, and digging of ponds, etc. A note issued by the Ministry of Rural Development in September 2011 seeking suggestions from the public on reforms in MGNREGA has maintained that the scheme has brought about four major achievements: (i) agricultural wages have increased; (ii) distress migration has shown a decline; (iii) area cultivated in some states have increased; (iv) water conservation structures have been built and, in many cases, have been revived. But at the same time, there is equally clear evidence that the original objectives of MGNREGA have yet to be achieved on a large scale and its true potential as an instrument of rural transformation is yet to be fully realised, the note observed. So what makes MGNREGA different from other rural public works schemes? It is the legal entitlement that the Act ensures for the potential workers who must get work within 15 days of applying for work, or else get unemployment allowance. This primary objective of the rural jobs scheme, however, has not been achieved in the last six years. The problem mainly lies in lack of awareness among the workers who are generally illiterate and thus, fail to know their rights. Adequate steps should be taken to spread knowledge of the different procedures involved in getting job

cards and work, among others. It would help MGNREGA become demand-driven and enable the beneficiaries to demand work when they need it, instead of getting work only when it is offered. Wage often is the only source of income of MGNREGA workers. Moreover, the social programmes main objective is to generate wage-employment. Delay in payments, however, challenges the prime objective of the scheme of creating rural jobs. Thus, ensuring timely payments to the workers should be given top priority in the list of reform initiatives. Addressing MGNREGA Sammelan 2012 on February 2, Prime Minister Manmohan Singh rightly urged the state governments to ensure that the workers were given their wages within 15 days. Numerous complaints of fraud, misuse of funds and corruption in MGNREGA works have raised fingers against the vigilance and audit systems put in place by the Rural Development Ministry. Use of fake muster rolls, practice of taking bribe to issue job cards, issuing job cards in fake names, and use of machines, etc., are rampant in MGNREGA. The government has failed to check these irregularities. Further, as per the status of all India general complaints under MGNREGA in 2011-12 says, only 798 complaints have been disposed of as against 1553 registered till 31 March 2011. This report was published on 10 November 2011. It certainly highlights the lacunas in the grievance redressal mechanism of MGNREGA. The government should do the needful to create a strong vigilance and complaint redressal platform so as to speed up the process of giving justice to the beneficiaries. Many policy experts are of the view that MGNREGA holds great promise for rural India when few of the problems are addressed that are plaguing its implementation. If the recently published report of World Economic Forum is to be believed, allegations of misappropriation of funds notwithstanding, MGNREGA has improved financial services for rural farmers and the road ahead carries scope for further agricultural and economic growth of the country. "While a programme of this scale does not come without its trials in MGNREGAs case, allegations of funds leakages and misdirected capacity, it has enhanced the financial inclusion of many Indian farmers and holds the potential to make further strides in economic and agricultural development," the report on WEF's New Vision for Agriculture Initiative prepared in collaboration with McKinsey & Co, said.

MGREGA (NREGA): Bright Future Prospects?

The UPA government revived the almost redundant NREGA in the year 2009, giving its name the support of the Mahatma of the country and it was renamed Mahatma Gandhi Rural Employment Guarantee Act. While the world wonders how merely a change of name can work wonders for an iskeem(scheme), the UPA basks in the glory of the statistical progress that the Act shows! Two years of the effective functioning of the revised Act are enough for the people to know that the MGREGA promises 100 days of employment to one adult member of rural families. The workers work as daily wage laborers and are paid Rs. 95-100 per day, in the various Indian states such as Rajasthan, Haryana, Andhra Pradesh, Madhya Pradesh etc where the scheme is in operation. Quoting a few facts and figures; Haryanas average daily wage rate has increased to Rs. 179, the accolades for which is accredited to the effective implementation of MGREGA. According to the official MGREGA website, theDanta district of Bhilwara, Rajasthan has been able to combat migration of rural men and women to cities, thanks to the NREGA which was implemented in the district. A 2010 report by Livemint.com states, Till January, 481,912 households had been given NREGA job cards in Bhilwara district and 386,734 provided employment under the scheme. Of these, 116,095 have completed 100 days of work this fiscal. The official facts about Andhra Pradesh give a very promising picture. In Andhra Pradesh, the maximum difference between average wage rates amongst various groups such as men, women, SC, ST etc is a minimal 2.66%. It is commendable how 80% of the population employed under this Act is women. This leads to contribution of supplementary income to households, over and above the incomes of the male members. Further, according to the data, of the 31,91,742 works taken up under the Act so far, 25.14 per cent pertained to water conservation and water harvesting in rural areas. Apart from the regular construction jobs available under NREGA, MGREGA is diversifying into providing various other kinds of jobs related to agriculture, water resources, land resources, forests and rural roads. However, workers in Rajasthan often complain of the wages being paid to them with a time lag of 3 4 months while the official deadline for the payment of wages is 15 days. Although payment to wage laborers is made through Post Office accounts, audits in cities of Rajasthan have revealed that a lot of money is credited to false accounts of persons who either do not exist or have no knowledge of the money being transferred to their accounts. Moreover, in states like Bihar and Chhattisgarh, the numbers of NREGA days of work per household are still a far cry from being fruitful for the households.

Essentially, the scheme is a powerful tool to combat poverty and unemployment from the rural sector, just like most other schemes that our government so often comes up with. What matters here is, how well is it implemented? Considering that the revised version of the scheme is just two years old, there is a lot of positive response towards the efficient functioning of the scheme. The enthusiastic presence of NGOs such as the Foundation for Ecological Security and others which conduct regular audits in NREGA districts and take active interest in its functioning can actually help the scheme from going haywire. Apart from that, all we can really do is wait and watch when the sudden interest of the world deviates from rural poverty to something perhaps more lucrative for the vote bank.

Dismal Experience of NREGA : Lessons for theFuture

The National Rural Employment Guarantee Act came into force on February 2, 2006 and was implemented in 200 of Indias most backward districts. The Ministry of Rural Development described it as a revolutionary measure to transform the rural economy. In 2007, it was extended to another 130 districts and with effect from April 1, 2008, the Act is to cover all districts. For its progress and the weaknesses during its implementation, two kinds of reviews are available (i) the implementation of the NREGA has been reviewed by the Comptroller and Auditor General (2007) and (ii) certain NGOs, especially the National Consortium of Civil Society Organisations (CSOs), have also undertaken several reviews. The CAG Report underlines the fact that the guidelines indicated in the NREGAhave not been followed. The Report specifically mentions lack of provision of professional staff to implement the scheme. (1) Lack of professional staff: Every State Government was required to appoint in each block, a full time Programme Officer, exclusively responsible for the implementation of the NREGA. The State Government, however, directed Block Development Officers (BDOs) to take additional charge to implement theNREGA. The CAG Report finds that 19 States had not appointed these officers in 70 per cent of the blocks surveyed. The point which needs to be highlighted is that the NREGA is not a programme that can work of on additional charge. Besides, one Employment Guarantee Assistant (ESA) was to be appointed in each gram panchayat. According to the CAG Report, 52 per ent of the 513 gram panchayats surveyed had not appointed the ESA. In addition, the State Governments were to create panels of accredited engineers at the district and block levels. They were expected to carry out costing of works to be undertaken, to make measurements of the works done to release payments to labour as stipulated in the NREGA. The CAG found that the panels were missing in 20 States it surveyed. As a consequence of shortage of staff, there were delays in execution of works and payment of wages on account of lack of measurements; two-to-three- month delays in payment of wages were noticed. Consequently, labour households preferred to undertake other jobs, even if the payments were relatively low, but prompt. All this resulted in a situation where out of 20.1 million households employed in the NREGA, only 2.2 million (that is, 10.5 per cent) received the full 100 days employment and wages as promised by the Act. The average employment per household was 43 days in 2006-07 and 35 days in 2007-08, as revealed by the Ministry of Rural Development. (2) Lack of proper project planning: The NREGA specifically mentions the creation of durable productive assets, in the form of roads, improving rural infrastructure, drought-proofing, watershed development,

water conservation etc. The survey found that the focus is on rural connectivity and wells. Other meaningful projects for rural transformation were conspicuous by their absence. (3) Bureaucratic resistance to NREGA: The CSO found that whereas the Panchayati Raj Institutions leaders are keen to implement the NREGA, Secretaries and Executive Officers of gram panchayats were seen to be working overtime to convince these leaders of the perils of getting entangled in theNREGA. On account of the detailed procedures and rules under the NREGA, an impression has been created that it is much more difficult to make money under the NREGA. Given the relatively few chances of corruption, it is better to go in for other programmes that are relatively less strict. In Rajnandgaon district, Chhattisgarh, according to NGOs reports, sarpanches fear that getting work done under NREGA is tantamount to going to jail and that the unemployment allowance will have to be given out of the sarpanchs pocket. (4) Lack of transparency and absence of social audit: Although the NREGA has provisions for transparency in the process of implementation, in actual practice, data on the work done and payments made for various kinds of jobs is kept as a closely guarded secret. As a consequence, there is a mockery of social audit. Even some of the fake NGOs are prepared to verify social audit by charging a ridiculously low fee per panchayat. As a result, the most radical provisions of the NREGA are violated with impunity. (5) Inappropriate Rates of Payment: The NREGA stipulates that projects shall not be implemented by employment of contractors, because contractors do not pay labour statutory minimum wage and get most of the work done by machines. Muster rolls are faked, labour is underpaid, bogus workers are shown as paid workers while the actual work is done by machines. The schedule of rates is not observed in practice. Studies by NGOs reveal that Employment Guarantee Assistants (EGAs) employed by panchayats themselves work as contractors. Besides, in Chattisgarh, the study of 50 per cent of the NREGA works supposed to be implemented by rural labourers and other staff are invariably found using machinery. THE CAG Report (2007) has brought out glaring deficiencies of the NREGA in the following words: The main deficiency was the lack of adequate administrative and technical manpower at the block and gram panchayat level. The lack of manpower adversely affected the preparation of plans, scrutiny, approval, monitoring and measurement of works, and maintenance of stipulated records at the block and gram panchayat level. Besides affecting the implementation of the scheme and provision of employment, this has also impacted adversely on transparency, and made it difficult to verify the provision of the legal guarantee of 100 days of employment on demand. Planning was inadequate and delayed, which resulted in poor progress of works. Systems for financial management and tracking were deficient, with numerous instances of diversion/ misutilisation, and delay in transfer of state share. Maintenance of records at the block and gram panchayat level was extremely poor, and the status of monitoring, evaluation and social audit was also not up to the mark. [CAG (2007), Draft Performance Audit of Implementation of NREGA, p. 95] Besides these deficiencies which require remedial action, the NGOs also found in their studies that wherever social mobilisation of rural workers was successful, public pressure led to improved implementation of the scheme, reduction in the use of contractors and machines, reduced corruption in bureaucracy and also resulted in better payment of minimum wages. Obviously, continuous mobilisation of the rural poor is a basic necessity for securing the intended benefits of the NREGA. A study by the Centre for Environment and Food Security (CEFS) about the progress of the programme in Orissa revealed that the government had claimed that out of a budgetary provision of Rs 890 crores for 2006-07, the State Government was able to utilize Rs 733 crores (that is, 82.4 per cent). As a result 57

days of wage employment was provided during the year. Not a single household was denied wage employment in 19 NREGS districts. The government also claimed that 1.54 lakh families in the State completed 100 days of wage employ during 2006-07. However, the research team of the CEFS revealed the hollowness of these claims. Out of Rs 733 crores spent under the NREGS, more than Rs 500 crores was unaccounted for, probably siphoned off and misappropriated by government officials. The research team also found that not a single family in the 100 sample villages was able to secure 100 days of wage employment. Very few families got 20-40 days, the rest mostly between five and 20 days, if at all. Fake job cards and fabricated muster rolls exaggerated the benefits of the scheme. The social audit was non-existent. Thus, the ground reality was highly distressing despite tall claims of the government of the success about the NREGS implementation. At the same time, it also necessary to take the following measures to strengthen the support structure of the NREGA. (i) Appointing full-time professionals for implementing the NREGA at all levels which is vitally necessary to implement the scheme. (ii) Provision of full-time employment guarantee assistants at the panchayat level to make the rural people aware of the benefits of the scheme and induce them to take advantage of the scheme. (iii) Specific efforts should be made to reduce the time gap between work done and payment received by the rural labourers in the NREGA. (iv) To use the Management Information System (MIS) and improve the system of monitoring of the scheme as also to check leakages and misappropriation of funds. (v) To undertake a massive programme of generating awareness about the scheme with the help of information technology. (vi) To revise the schedule of rates periodically so that changes in the statutory minimum rates of wages are made consistent with their revision. (vii) To prepare a shelf of projects at the district levels with the help of Programme Officers and other technical staff as well as the Panchayati Raj Institution leaders so that projects cleared at the district level can be implemented at the grassroots level. (viii) To make a study of various States with a view to learning from their experience of implementing the NREGA and thus develop a spirit of competition among the States to take advantage of the scheme. (ix) The NREGA payments should be made through post-office accounts. Andhra Pradesh Government has made use of this method. The State had six lakh accounts till 2005. By 2008, the number of accounts jumped to 70 lakhs and the authorities are being forced to strengthen the postal infrastructure so that it can handle the new responsibilities. This can also limit to a large extent fake muster rolls and corruption in the scheme. (x) The NREGA is a comprehensive employment programme. This implies that other employment generation programmes should be merged with it so that the alternative of shifting to another attractive programme from the point of view of misappropriating funds is closed. This will also help to rationalise various employment generation programmes.

The report card of the UPA Government towards the implementation of theNREGA reveals that as against the budgetary provision of Rs 10,800 crores for 2007-08, the actual utilisation was of the order of Rs 4196 crores, that is, only 39 per cent of the budgetary provision. This is really a sad commentary on the implementation of a flagship programme of the UPA Government. There is no denying the fact that the NREGA is conceptually a very important national programme initiated at the level of the Central Government, but its record of implementation reveals that there are widespread complaints of corruption and pilferage of funds and very low level of utilisation of the budgeted provision. It has not succeeded in creating sufficient productive assets for strengthening the rural infrastructure. It has, therefore, failed to impact on the poor rural households and if deterioration is not checked, the programme will lose the enthusiasm and momentum generated for it in 2006, describing it as a revolutionary project to impact on the life of the poor.

Objectives of NREGA
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> Objectives of NREGA

The objectives of NREGA were to reduce the problems of unemployment so that more people are able to find a job for themselves. Keeping in mind this need the act was launched. The impact of NREGA has been great as many people were provided with job opportunities. The NREGA news consists with the latest updates regarding the objectives of NREGA, NREGA karamchari sangh and other related issues. The NREGA karamchari sangh is also a group of people who are working to fulfil the objectives of NREGA. The impact of NREGA ahs been fine in some places whole in the other places the response has been huge. Thus it depends upon the state as to how they have managed the scheme. The NREGA news can be made available through the website. The NREGA news also includes the progress report together with the issues to be discussed by the council. There are other important forums too which come under the NREGA news. The objectives of NREGA are just to make the people believe in themselves and look for better prospects in life. The NREGA karamchari sangh is a union which employs people to work for them. The NREGA karamchari sangh comes under this scheme but its working is not the same as the employment scheme. Even the impact of NREGA is a great concern to the government as they need to judge the satisfaction of the people. The impact of NREGA gives you a review about what people think and how they react to the scheme and is benefits. The impact of NREGA has to be long lasting as there is no use of the job opportunities are only time based. The objectives of NREGA of the scheme was to guarantee long term earning but not for a short time. Thus it is essential that they government looks in to this issue or the people will not admire such kind of activities in future. Through the NREGA karamchari sangh the people of Rajasthan have taken a step forward and have come up with new things for themselves. The NREGA news will keep you updated with the latest information that will be fruitful for you.

Soon, a NREGA like scheme for urban populace

New Delhi The government has proposed to launch an urban employment guarantee scheme on the lines of NREGA and give statutory sanctions to minimum wages. The proposal, which focuses on generating employment and enhancing employability among less advantaged, is part of the shortterm strategies and targets of the Government contained in the first 'Annual Report to the People on Employment'. At present, states are under no obligation to implement revision of minimum wages by the Centre. The report, released by the Ministry of Labour and Employment on Friday, has emphasised on achieving an employment growth rate of at least 2.5 per cent per annum compatible with the 9 per cent growth in the economy. The Government has solicited comments and suggestions from the people on major issues highlighted in the report specially those relating to the employment of youth, women and disadvantaged groups.

NREGA: Breaking new ground

ARUNA ROY AND NIKHIL DEY The NREGA, the flagship programme of the UPA government, was revolutionary in its promise of inclusive growth, the right to work and the dignity of labour and a rational, participatory relationship with the State. And it has mostly delivered

Suddenly the NREGA has become a buzz word. It stands vindicated by the mandate of the people in its most basic evaluation in a democracy the general elections. Basking in the glory and security of post-electoral analysis, it is actually the b est time for those who support the basic philosophy of the NREGA to focus on what it has done and what it has not, by its own parameters. The first and the primary focus should be to examine its impact on the human resource base of rural India. Has it energised, mobilised, empowered, and delivered to Indias poorest and most marginalised rural people? Secondly, has it provided those who were not shining a measure of dignity, tangible economic benefit, and a motivation to participate in local action? This is the crux, for, something as vast and ambitious as the NREGA can only succeed in bringing about change if millions of workers become its true advocates and monitors. Let us begin with the most persistent charges of endemic corruption. Notwithstanding negative propaganda and the prominent reportage of corruption, NREGA stands apart from employment and poverty alleviation programmes in significant ways. It is the first national programme of consequence which has woven transparency and accountability into the mundane fabric of daily interaction of people with government. The cases of reported corruption have shocked the intelligentsia. The rural worker might often be the victim but will still offer critical support, not only because it has provided wage income, but also for facilitating disclosure, which helps identify and fight pilferage. In fact, in many cases, scams have been exposed by the workers themselves. NREGA gives an opportunity to break the feudally enforced silence of its victims. Through transparency and social audit measures, it allows anyone, anywhere to be part of the monitoring of the delivery system. The other programmes appear to be clean only because no one knows what goes on! The NREGA gives a further opportunity to realise the Constitutional sovereignty, the power of the people. What the political establishment would do well to understand is that the vote was not a blind endorsement, but the expression of a fragile hope of a rational participatory relationship with the government. New claims The NREGA has opened up a unique legal space for the poor, with a consequent, legally-mandated obligation on the administration to deliver. In fact, implementation rests on the simple philosophy that ordinary people will go to great lengths to procure their entitlements, given the space to do so. Apart from systemic corruption, we are all aware of the chronic inefficiency, unwillingness and incapacities of the bureaucratic system to deliver entitlements for the poor. The persistent argument was that in this context implementation would be impossible. The NREGA sought to create real opportunities and legal spaces, with the belief that people will begin to push to overcome bureaucratic and political resistance. The electoral endorsement over, it is a good time to begin to examine this aspect of bottom-up implementation. Does the rights-based approach really work? The Act has a number of trigger mechanisms designed to activate and establish peoples entitlements. One such trigger is the right to have a Job Card. The Act mandates that anyone who applies at their Panchayat for a Job Card must be given one within 15 days. Without a Job Card, people cannot even apply for work, nor corroborate the records. It is a license and pan card of the wage workers family, with a record of days of work and wages received during the year. There are many States where large numbers of people have demanded, but not received, Job Cards. In many Panchayats, the Job Cards are in the control of implementing agencies. Publicising the Job Card as a record of individual entitlements, to be updated by the authorities, and kept in possession of the workers, would ensure the NREGA is monitored by its workers. Crucial accountability The application for work and the dated receipt are crucial to trigger the demand for work. The receipt is also the basic record for claiming unemployment allowance if the work is not provided within 15 days. States like Rajasthan have fared well in providing Job Cards, and providing work within 15 days, but resistance to giving dated receipts has become a massive problem. No State has effectively activated this important mechanism. Nevertheless, it has worked when workers groups have got organised. In the 30 years of existence of its precursor, the Maharashtra Employment Guarantee Act, there is no recorded instance of payment of unemployment allowance. The NREGA has already recorded payment of unemployment allowance to large numbers of workers in chronically poorly-administered areas. The successful peoples struggles for the payment of unemployment allowance in Barwani District of Madhya Pradesh, Raichur of Karnataka, Bolangir, Navrangpur and Kalahandi of Orissa, Latehar in Jharkhand, Sitapur District of UP has been a breakthrough in accountability, and an inspiration to other workers struggling for entitlements. The payment of unemployment allowance emanates from an administrative lapse, and is eventually deducted from the pocket of erring officials. It is not a freebie doled out of the government exchequer. Like the Right to Information Act, this has created an important mechanism for enforcing the right while holding the bureaucracy accountable. The wage under NREGA has been another trigger and indicator of its success. The wage rate, the measurement system, and the timely payment of wages have all become part of the entitlement package. Thanks to NREGA, minimum wages have, for the first time, become a real factor in determining the lower limit for market wages. There are many ongoing struggles for the payment of minimum wages; and adopting a transparent measurement system for every work-site is a management challenge that has thrown up many grassroots solutions. Bottlenecks Wage payments through NREGA have initiated the biggest financial inclusion drive, with the requirement that all wage payments be made through banks and post offices. The engineers, the accountants, and the post offices have been unable to

cope, and late payments have begun to cripple the Act. Students and Academics, working together with workers organisations in Khunti District in Jharkhand, have operationalised the entitlement in the NREGA to get Rs. 2,000/- per worker paid to over 300 workers as compensation for delayed payment under the provisions of the Payment of Wages Act. The Khunti payment, made last month, has once again demonstrated that the solution to the vexatious issue of late payments lies in the entitlement framework. The uneven implementation in different States has shown that where peoples struggles have gained political and administrative respect, the NREGA has shown tangible results on a massive scale. It is that battleground of struggle that could well determine the future of the political discourse in this country. The Government of India has transferred adequate money to the States and Districts to make timely wage payments. Shri C.P. Joshi, the current Union Minister for Rural Development and Panchayati Raj, was reported to have talked about his party prospects in the polls being negatively affected because of late wage payments in Rajasthan. As Union Minister now, if he were to exercise his administrative and political will to ensure compensation is paid to those receiving delayed wage payments, the lethargic bureaucratic system will find a way to respond. Chronic delays in wage payments during the drought in Rajasthan became a political issue, and the delays were wiped out. Innovations and mechanisms respond to a bottom-up demand, but do so best when the political establishment puts pressure. The NREGA also assures an adequate, realistic provision for administrative expenses. At the current six per cent of total costs which has been allowed for administrative costs, there is no legitimacy in citing a shortage of staff or resources for bureaucratic delay. In Rajasthan, for instance, the over 7,000 crores spent on NREGA last year amounts to a massive Rs. 450 crores available for administrative expenses per year. This kind of money and resources can, in fact, help gram Panchayats become properly resourced to better carry out their overall responsibilities. It can also help ensure that there is no excuse for the failure to carry out all transparency measures and put an effective grievance redressal mechanism in place. Biggest contribution Transparency and accountability to the poorest and the weakest is in fact the biggest potential contribution of the NREGA to the entire governance system. The NREGA is an outstanding example of how the RTI Act can be woven into the fabric of the delivery system and the whole legal and governance paradigm. The entire expenditure on works and workers 94 per cent of the total amount is required to be put on the website of the NREGA, with every transaction revealed in detail. This can easily be increased to 100 per cent. Using this Management Information System (MIS), Vijaypura Gram Panchayat in Rajsamand District has begun to build a Janata Information System (JIS) painted on the walls of government buildings in the Gram Panchayat. The boards reveal the details of the number of days of work provided and payments made in the year to every Job Card holder in the Panchayat. Also painted on the walls are the list of works sanctioned, the expenditure on labour and material, and item-wise expenditure on material in each work in the Panchayat, including exactly how many bags of cement, sand and trolleys of stone were procured, and at what rate in the Gram Panchayat. This is like a web wall which reveals to every interested visitor all that they want to examine. What can be done in one Panchayat can be carried out in the 9,189 Panchayats of Rajasthan, and the hundreds of thousands of Panchayats in India. The walls in Vijaypura Panchayat provide details of 976 families given employment in 2008-09, where two thirds have completed 100 days, with an expenditure of 91 lakhs. The Sarpanch is a Dalit youth from a poor family, elected in a general seat, and the Panchayat is proof of how well an Employment Guarantee programme can be implemented, in terms of peoples entitlements, transparency measures, worksite management, and many other innovations. Larger impact If the millions of financial transactions of the NREGA can go on their web site, there can be no justification for not following the example and putting almost every financial transaction of government receipt or expenditure on the web sites of the relevant department or agency. Proactive disclosure is a requirement of the RTI Act, and is a good example of the larger potential impact of the NREGA on governance. The NREGA is Indias first law to codify development rights in a legal framework, and like the RTI, it has begun to set an example in a global context. Apart from the law, and a set of guidelines, there is a strong and immediate need to formulate rules to operationalise provisions in the Act; which includes guaranteeing grievance redressal in seven days, social audit twice a year, and mandatory transparency and proactive disclosure. Properly incorporated and enforced, a comprehensive set of operational rules could strengthen the entitlement framework, fixing responsibility at every level. Once again, it would enable bottom-up pressure for implementation, which should be matched by a strong political mandate. Today, the NREGA has millions of workers unresolved and un-addressed grievances and problems to be dealt with. A response system could not only radically improve the NREGA, but can impact and transform the whole face of rural governance. Is the NREGA an administrators nightmare or a redistribution of income and power? A social safety net or a step towards the right to work, to prevent migration, and even boost local market economies? For those who cannot think beyond the pale of the free market economy and the business model manager, it is indeed a nightmare. For years, simplistic management solutions to poverty, with the poor as an input to be managed, have failed. We cannot see ordinary people as active participants and empowered citizens. That is why there is difficulty in understanding the practice and logic of democracy and difficult, therefore, to understand the realistic detailing and complexity of an Employment Guarantee initiative.

Inclusive growth Independent India has to acknowledge the critical role the NREGA has played in providing a measure of inclusive growth. It has given people a right to work, to re-establish the dignity of labour, to ensure peoples economic and democratic rights and entitlements, to create labour intensive infrastructure and assets, and to build the human resource base of our country. For the first time, the power elite recognises the peoples right to fight endemic hunger and poverty with dignity, accepting that their labour will be the foundation for infrastructure and economic growth. The entitlements paradigm is still to be established in many States in the country. Second generation issues like the expansion of the categories of permissible works needs to be taken up with labour and the deprived continuing to be the central focus. The improvements must be to strengthen, not divert from these basic tenets. In the midst of the current economic slowdown, there is enough evidence that this kind of commitment can work to help reduce the slowdown. The political class would do well to understand that the most important solution is an assertion of its will to respond to peoples voices. The many wise, creative, and innovative initiatives emerging from theory and practice have a future only if they are owned by the people and implemented with justice. The NREGA can give people an opportunity to make the entire system truly transparent and accountable. Properly supported, peoples struggles for basic entitlements can, in turn, become the strongest political initiative to strengthen our democratic fabric.

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C P Joshi, the minister for rural development, said the government is planning to overhaul the National Rural Employment Guarantee Act, which has been responsible for the improvement in rural consumption, with a focus on productivity gains to drive long-term value. In an interview with Nirmal Jain and Arnab Mitra of IIFL, Joshi said NREGA would now allow work on private land for irrigation and water harvesting, which will enhance productivity in addition to providing more employment. Excerpts: NREGA has been the most talked-about scheme of your government and has added to rural prosperity. Do you think the programme can be sustained for long in its current form? Right now, NREGA is largely augmenting incomes and purchasing power in rural India, but not adding significantly to productivity assets. However, unless the work results in productivity gains for rural India, it will be difficult to sustain NREGA for a long time. Also, people employed under NREGA today are largely illiterate and completely unskilled. We need to gradually upgrade these people to semiskilled and then skilled workers to improve the nature of work. Also, we need to give employment to educated youth in rural areas under NREGA. Hence, we are revamping NREGA to make it sustainable for the long term. How do you propose to improve NREGA in terms of productivity gains from the work? A large part of agricultural land in rural India is rain-fed and not irrigated. This results in a high dependence on monsoons and we see a big impact on production when monsoons fail, like they did this year. Earlier, NREGA did not allow work for irrigation and water harvesting on private land. We have now allowed work on private land of small and marginal farmers. The government is thinking of taking this further and allowing irrigation and water harvesting work on private land of large farmers also under NREGA. Large farmers actually hold majority of agricultural land in India. Thus, we can see large gains in irrigation and water harvesting in rural India through NREGA. Look at a state like Bihar, which has very fertile land, good rainfall and large rivers, but lags in a big way in productivity due to poor irrigation and water harvesting infrastructure. This will significantly help in improvement of agricultural productivity in future. How big can NREGA become in five years? If you analyse the data on NREGA, while 70% rural households have job cards, only 45% have taken employment under NREGA and only 14% of the people employed under NREGA have availed of the full 100 days of employment guaranteed under NERGA. Thus, we have a long way to go. As discussed, large parts of north and east India are lagging in NREGA employment. I believe at least 45-50% of households should be able to avail the full 100 days employment under NREGA in a few years time, compared to 14% now. The execution of NREGA has not been uniform. While states like Rajasthan have seen very good execution, others like Bihar are lagging behind Yes, the execution has been very different across states. Out of the 621 districts of India, a large number employed in NREGA is predominantly in the states of Rajasthan, Madhya Pradesh and Andhra Pradesh. Almost two-thirds of the Rs 40,000 crore allocation for NREGA would be spent in four or five states. Large states like Bihar, Uttar Pradesh, West Bengal, Jharkhand and Orissa, which have the highest population of poor people in rural India, are lagging behind in NREGA. It is here that we need to really ramp up. So what steps are being taken to improve NREGA in these large states? We are working on it. I am in discussions with the state governments on this matter. We have identified specific districts where we need to first focus. I am hopeful that once we allow NRGEA on private land of all farmers, more work will be available and hence employment under NREGA will improve in these states too. How do you propose to give work to educated youth under NREGA? We are planning a Rajiv Gandhi Seva Kendra in every village panchayat. These centres will have computers and Internet connectivity. We will be able to provide employment to educated youth in these centres to do various kinds of jobs on computers. You spoke of skill upgradation of the poor in rural India. How do you plan to achieve this? We are embarking on a major skill upgradation programme in rural India, which will drive long-term productivity. Over 30% school students in rural India drop out of education before completing their 10th class exams. We are setting up institutes to train these students in specific vocational skills like electrical repairs, plumbing and carpentry. Today every village has electrical borewells, electrical white goods, motorcycles, furniture, etc, which need regular repair and maintenance. Thus, these trained youth will get employed in the rural areas itself. To begin with, each of the 621 districts is getting one such institute with central government funding. We will expand the number of institutes in future, to cater to a very large number of rural

youth. Currently, Rs23,000 crore on bank credit is made available to rural skilled manpower for starting their own work. However, this amount is mostly unutilised, as there has been no major effort to impart vocational skills to rural youth.