NREGA (National Rural Employment Gurantee act)


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NREGA (National Rural Employment Gurantee act)

  1. 1. The National Rural Employment Guarantee Act(NREGA) was notified on September, 2005. TheAct provides a legal Guarantee of 100 days of wageemployment in a financial year to every ruralhousehold whose adult members volunteer to dounskilled manual work at the minimum wage ratenotified for agricultural labour prescribed in theState or else an unemployment allowance. Theobjective of the Act is to supplement wageemployment opportunities in rural areas and in theprocess also build up durable assets.
  2. 2. A majority of the poor in rural areas of the country depend mainlyon the wages they earn through unskilled, casual, manual labour.They are often on threshold levels of subsistence, and are vulnerableto the possibility of sinking from transient to chronic poverty.Inadequate labour demand or unpredictable crises that may begeneral in nature, like natural disaster or personal like ill-health, alladversely impact their employment opportunities.In a context of poverty & unemployment, workfare programmeshave been important interventions in developed as well asdeveloping countries for many years. These programmes typicallyprovide unskilled manual workers with short-term employment onpublic works such as, irrigation infrastructure, reforestation, soilconservation and road construction.
  3. 3. The need to evolve a mechanism to supplement existing livelihood sources in ruralareas was recognized early in development planning in India. The Governmentimplemented workfare programmes that offered wage employment on public works atminimum wages. The wage employment programmes started as pilot projects in theform of Rural Manpower (RMP) [1960-61], Crash Scheme for Rural Employment(CRSE) [1971-72], Pilot Intensive Rural Employment Programme (PIREP) [1972], SmallFarmers Development Agency (SFDA), Marginal Farmers & Agricultural LabourScheme (MFAL) to The National Rural Employment Guarantee Act: Salient FeaturesDesilting at Kollafarm tank,Chittoor Dist., Andhra Pradesh2 NREGA 2005: Report ofthe Second Year benefit the poorest of the poor. These experiments were translatedinto a full-fledged wage-employment programme in 1977 in the form of Food for WorkProgramme (FWP). These wage employment programmes implemented by StateGovernments with Central assistance were self-targeting, and the objective was toprovide and enhance livelihood security, specially for those dependent on casualmanual labour. At the State level, the Govt. of Maharashtra formulated theMaharashtra Employment Guarantee Scheme and Maharashtra EmploymentGuarantee Act, 1977 to provide wage employment to those who demanded it.
  4. 4. The National Rural Employment Guarantee Act (NREGA) aims atenhancing the livelihood security of the people in rural areas byguaranteeing hundred days of wage employment in a financial year,to a rural household whose members volunteer to do unskilledmanual work.The objective of the Act is to create durable assets and strengthenthe livelihood resource base of the rural poor. The choice of workssuggested in the Act address causes of chronic poverty like drought,deforestation, soil erosion, so that the process of employmentgeneration is on a sustainable basis works suggested in the Actaddresses causes of chronic poverty like drought, deforestation andsoil erosion, so that the processof employment generation is maintained on a sustainable basis
  5. 5. Salient features of the Act are summarized below:-a) Adult members of a rural household may apply for employment if they are willing to dounskilled manual work.b) Such a household will have to apply for registration to the local Gram Panchayat, inwriting, or orally.c) The Gram Panchayat after due verification will issue a Job Card to the household as awhole. The Job Card will bear the photograph of all adult members of the householdwilling to work under NREGA. The Job Card with photograph is free of costd) A Job Card holding household may submit a written application for employment to thegram Panchayat, stating the time and duration for which work is sought. The minimumdays of employment have to be fifteen.e) The Gram Panchayat will issue a dated receipt of the written application foremployment, against which the guarantee of providing employment within 15 days operatesf) Employment will be given within 15 days of application for work by an employment
  6. 6. g) If employment is not provided within 15 days, daily unemployment allowance,in cash has to be paid. Liability of payment of unemployment allowance is of theStates.h) At least one-third of persons to whom work is allotted work have to be women.i) Wages are to be paid according to minimum wages as prescribed under theMinimum Wages Act 1948 for agricultural labourers in the State, unless the Centrenotifies a wage rate which will not be less than Rs. 60/ per dayj) Disbursement of wages has to be done on weekly basis and not beyond afortnight.k) Work should ordinarily be provided within 5 km radius of the village or elseextra wages of 10% are payable.l) Work site facilities such as crèche, drinking water, shade have to be providedm) All accounts and records relating to the Scheme are to be made available to anyperson desirous of obtaining a copy of such records, on demand and after paying aspecified fee.
  7. 7. The main objective of NREGA is to meet employment demand. The number of householdsdemanding employment stands at 2.12 crore and 2.10 crore households were providedemployment.
  8. 8. The Act stipulates that priority shall be given to women. In terms of implementation itmandates that a minimum of one-third of the beneficiaries are women who have registeredand have requested for work. Against this backdrop, figures from 27 States point out thatthis has been met in 18 states.