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PM Project Report
PM Project Report
SUBMITTED BY GROUP-1:
MGNREGA
The NREGA bill was ratified by the parliament in 2005 and became effective from the next
year. The Act provides for a guaranteed work for a household for at least 100 days in a
financial year. This is envisaged to majorly augment the income of the rural India. MoRD
(Ministry of Rural Development) holds the overall responsibility to implement this scheme.
MoRD ensures adequate financial and operational support to the state governments and the
Employment Guarantee Councils. The program is made available for scrutiny at all levels. This
has been majorly achieved by following a transparent process and making all relevant data
publically available using Information Technology. The list of major completed projects and
various information related to the work progress and financial allocation is made available in
the website 1.
1 http://nrega.nic.in/
Scope of MGNREGA
The development of the implementation plan for MGNREGA is dependant on its project
scope. MGNREGA focusses on augmenting the livelihood security of people in non-urban
areas by providing paid employment.
Project Objective
MGNREGA is aimed at augmenting the income of the rural unemployed by guaranteeing at
least 100 days of paid, unskilled manual work in every financial year for at least an adult in
every household who wishes to participate. This has to be met within the budget discussed
and approved by the central legislature.
During the course, it also envisages creation of capital assets which could increase the income
and sustainability of the local population.
Deliverables
• List of eligible and participating households
• 100 days of manual unskilled labour for all registered households
• Timely (weekly basis or in any case not later than fortnightly) payment of wages.
Milestones
The timeline for planning and execution is given below in Table 1,
August 15 Gram Sabha to submit plan to PO
December 1 District Annual Plan to be approved
December 31 Labour budget to be submitted to center
February 28 LB to be finalized
April 7 State to communicate opening balance and center release upfront
Whole year MGNREGA execution
Table 1 MGNREGA - major milestones
Technical Requirements
Only the works falling into the following category may be taken up,
a. Public works related to natural resource management
b. Individual assets for vulnerable sections
c. Common infrastructure for NRLM compliant self-help group
d. Rural infrastructure
Project Priorities
Traditionally, the success of project is defined as exceeding the expectations of the customer
while ensuring the cost and time constraints are breached. Nevertheless, in the case of a
social development project like MGNREGA, the cost constraints take the least precedence
owing to the nature of project. The Project Priority Matrix is given in Figure 1.
Responsibility Matrix
The sheer size of the project and the involvement of a plethora of agencies calls for well
defined roles and responsibility to be assigned to different stakeholders. The Responsibility
Matrix which summarizes the major tasks to be accomplished is given in Table 2. It also maps
the responsibility to different agencies.
R- Responsible
S- Support Role
Plan of Execution
The implementation of MNREGA is on the Gram Panchayats. From the Government point of
view, since the implementation of this scheme, the government has incurred an expenditure
of Rs 289817.04 crores towards this scheme, by employing 68,26,921 workers in 2,61,942
worksites. The minimum wages decided was Rs100 per day but it was revised later because
of state labour employment conventions. The new minimum wages are now decided by states
which is in the range of Rs 163 to Rs 500. This scheme is subject to lot of criticisms too over
the years like for encouraging corruption to increasing inequality to being called as an election
card for UPA. Leaving the fact that it is causing major financial drain of country’s resources,
actual benefits have not reached to the rural completely yet.
Stake holders
Implementation of the MNREGA involves roles and responsibilities of a large number of
stakeholders from the village to the national level. The key stakeholders are:
1. Wage seekers
2. Gram Sabha (GS)
3. Three-tier Panchayati Raj Institutions (PRIs), especially the Gram Panchayat (GP)
4. District Programme Coordinator (DPC)
5. Programme Officer at the Block level
6. State Government
7. Civil Society
8. Ministry of Rural Development (MoRD)
9. Other stakeholders ( line departments, convergence departments, Self-Help Groups etc.)
• Decentralized Planning or Gram Sabhas to recommend works for at least 50% of works by
Gram Panchayats for execution of Principal role of PRIs in planning, monitoring and
implementation
• Work site facilities: Drinking water, first aid and shade infrastructure are provided at
worksites
• Women empowerment: Women should constitute at least one third of beneficiaries.
• Transparency and Accountability is taken utmost care by Proactive disclosure through Social
Audits, Grievance Redressal Mechanism.
• Funding is mainly done by Central Government, it pays 100% of wages for unskilled manual
labor, 75% of material cost including payment of wages to skilled and semi-skilled labor. State
Government pays quarter of material including payment of wages to skilled and semi-skilled
labor cost. 100% of unemployment allowance is given by state government
As per the research done by The Hindu8 there has been revelations that the governments are
providing lesser and lesser work under the scheme and the sanctions are hard to come by.
The number of households that received the legally guaranteed 100 days of work fell from
51.73 lakhs in 2012-13 to 46.73 lakh in 2013-14 (under the UPA), and then dipped sharply to
23.24 lakh in 2014-15 (under the NDA). One explanation for this could be that funds are not
being released by the Centre. If we look the amount sanctioned we could see a steep decline
from Rs. 27, 484 crore in 2013-14 to Rs. 17,074 crores in 2014-15, which again points to the
reduction in funding to the scheme. But, government could defend itself by arguing that there
has been fall in demand for the works under the scheme.
Though MGNREGA looks to be a fine scheme there has been many opponents to the scheme
and if the government continues to decrease the funding for the scheme and keep on delaying
the payments for the scheme beneficiaries there is a concern form the media that the scheme
could wind-up one day.
Government’s view
UPA government has clearly supported the scheme and has used it as a tool to come in to
power again in 2009 elections. In many of the election rallies and speeches they constantly
kept them associated with the MGNREGA scheme which has worked pretty well for them as
it is being an anti-poverty scheme they were able to attract the majority of the vote bank, i.e,
the poor.
______________________________
7
“All you wanted to know about MGNREGA” by Muthukumar K, The BusinessLine, February 13, 2017
8 “Is the MGNREGA being set up for failure?” by G. Sampath & S. Rukhmini, The Hindu, April 3, 2016
Even the current BJP government has been more critical about the scheme as the PM Sh.
Narendra Modi himself has branded the scheme as “monument to 60 years of failure”. From
the data given in the critique of media it is quite clear that the government has been
decreasing its sanctions for the works done under the scheme though it has been allotting
record amounts of budget for the same. This implies that the governments are using this
scheme only as a tool to garner the votes of the poor by showing on the outside that they are
pro poor and doling out huge sum of money to eradicate poverty.
______________________________________
9 Zimmermann, Laura, Labor Market Impacts of a Large-Scale Public Works Program:
Evidence from the Indian Employment Guarantee Scheme. IZA Discussion Paper No. 6858.
Available at SSRN: https://ssrn.com/abstract=2158000
10 Kareemulla K, Ramasundaram P, Kumar S, RamaRao C. A. Impact of National Rural
Employment Guarantee Scheme in India on Rural Poverty and Food Security . Curr Agri
Res 2013;1(1):13-28. Available from: http://www.agriculturejournal.org/?p=388
Conclusion
With our critical analysis of the every aspect of the MGNREGA scheme we are of the opinion
that even though there has been lot achieved through the scheme in eradicating poverty by
way of providing guaranteed 100 days of work for the poor in the rural areas, there are many
things which could have been improved up on this grand scheme to make it a huge success.
Some of the suggestions to make it a successful program in alleviating the poverty in India
are,
1. As the government is planning to setup skill development centers across the country
they could link the two scheme to provide better tools and skills to the rural
population to make them more employable not only in the government schemes but
also in private jobs
2. Though some of the works done under the scheme are building assets for the villages
many of them lack quality and some lack purpose. Hence, there is a need for making
everyone accountable for the works and execute more promising and meaningful
projects which are better in quality as well.
3. With the government moving towards digitalization it makes sense to setup ATMs and
mobile banks in the rural areas to facilitate the usage of the same.
4. Government should also take steps to teach the rural population of the benefits of the
scheme to the village as well as the importance of going digital instead of daily wages.
5. By educating the rural population well government should move fully in to the digital
payment system to ensure faster processing of the payments for the workers and
reduce delays.
References
1. “Anti-poverty schemes, a success story” by Aditya Dasgupta, The BusinessLine, April 7, 2014
http://www.thehindubusinessline.com/opinion/antipoverty-schemes-a-success-
story/article5883555.ece
2. “All you wanted to know about MGNREGA” by Muthukumar K, The BusinessLine, February
13, 2017
http://www.thehindubusinessline.com/opinion/columns/slate/all-you-want-to-know-about-
mgnrega/article9539721.ece
3. “Is the MGNREGA being set up for failure?” by G. Sampath & S. Rukhmini, The Hindu, April 3,
2016
http://www.thehindu.com/sunday-anchor/is-the-mgnrega-being-set-up-for-
failure/article7265266.ece
4. Zimmermann, Laura, Labor Market Impacts of a Large-Scale Public Works Program:
Evidence from the Indian Employment Guarantee Scheme. IZA Discussion Paper No.
6858. Available at SSRN: https://ssrn.com/abstract=2158000
5. Kareemulla K, Ramasundaram P, Kumar S, RamaRao C. A. Impact of National Rural
Employment Guarantee Scheme in India on Rural Poverty and Food Security . Curr Agri
Res 2013;1(1):13-28. Available from: http://www.agriculturejournal.org/?p=388
6. http://nrega.nic.in/
7. http://www.mapsofindia.com/my-india/government/mnrega-progress-made-by-
modi-government-in-one-year
8. https://www.outlookindia.com/newswire/story/steps-taken-to-ensure-proper-
nrega-implementation-govt
9. http://www.nrega.nic.in/netnrega/home.aspx
10. http://nrega.nic.in/netnrega/Planning.aspx
11. http://nrega.nic.in/Circular_Archive/archive/Operational_guidelines_4thEdition_eng
_2013.pdf
12. http://www.mgnrega.co.in/funding.htm
13. http://planningcommission.gov.in/reports/genrep/rep_NREGA.pdf