Business Environment

Section E - Group 3 Amey Ratnaparkhi Harish Subramanian Nitisha Rathi Prashant Garg Rajat Mehta Souvik Ghosh

 NREGA is designed as a safety net to reduce migration by rural poor households in the lean period through A hundred days of guaranteed unskilled manual labour provided when demanded at minimum wage on works focused on water conservation, land development & drought proofing
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 Enhancing the livelihood security Guaranteeing hundred days of wage/employment Enacted by legislation on August 25, 2005 Minimum Wage of Rs. 100. Aim of improving the purchasing power of the rural people One-third of the stipulated work force is women Initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 2 October 2009

a. Strong social safety net for the vulnerable groups by providing a fall-back employment source, when other employment alternatives are scare or inadequate b. Growth engine for sustainable development of an agricultural economy c. Empowerment of Rural poor through the processes of a rightsbased Law.

NREGA GOALS

 Provisions under NREGA Adult members Registration in writing or orally to the local Gram Panchayat Issue of Job Card within 15 days of application. Written application for employment to the Gram Panchayat Employment within 15 days Work within 5 km radius of the village Equal wages to both men and women At least one-third beneficiaries shall be women Work site facilities such as drinking water, shade The Central Govt. bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi skilled workers Social Audit has to be done by the Gram Sabha Grievance redressal mechanisms All accounts and records relating to the Scheme should be available for public scrutiny

NREGA Central Fund rules in process of finalization. Fund to be maintained in the form of nonlapsable public account and budget to be transferred to this account as desired by ministry. Incremental fund release on demand by States and districts on 60% utilisation. On the basis of performance report on physical and financial parameters.

Key Stakeholders are:

I. II. III. Wage seekers Gram Sabha PRIs, specially the gram panchayat IV. Programme Officer at the block level V. District Programme Coordinator VI. State Government VII. Ministry of Rural Development

STAKEHOLDERS

 NIC developed generalised software being used by States with appropriate modification. Andhra Pradesh: IT solution being used to register households and generate formats for implementation of works at mandal level. Problem areas are: Connectivity Last mile IT outreach at the cutting edge level of the village Non familiarity of the beneficiary workforce with IT usages. Committee set up to suggest hardware alternatives at the village level: Handheld devices utility is being assessed. A group set up for accreditation of IT software that private IT experts may wish to develop for NREGA that can then be recommended to States for their consideration.

 Particulars of the village It is a cantonment area. Situated 40km from Ghaziabad Railway Station. 46km away from IMTGhaziabad campus.
Demography of the village (Census 2001) Population = 5938 Males : 53%, females: 47% Avg. literacy rate: 64% Male literacy rate : 61% Female literacy rate: 39%

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Processing Applications for job cards To ensure that such families are identified To verify against local records etc. for duplicity and redundancy errors. Issue of job cards Ensuring job card verification on the spot by the Government officials in consultation with the Registrar for Births and deaths. Reducing time between job card application and job card issue. Contains the efficacy of the card holder.

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Govt. of India Ministry of Rural Development Department of Rural Development The Mahatma Gandhi National Rural Employment Guarantee Act Monday, March 19, 2012

S.No 1 2 3 4 5 6 7 8 9

Job card No. UP-16-008-011-001/1 UP-16-008-011-001/10 UP-16-008-011-001/109 UP-16-008-011-001/11 UP-16-008-011-001/12 UP-16-008-011-001/121 UP-16-008-011-001/124 UP-16-008-011-001/125

Name

UP-16-008-011-001/105-B Ravi Ajay Imrat Kour Manoj Kumar Billu Suman durjan Imrat Kour Omwati Devi

10 UP-16-008-011-001/13 11 UP-16-008-011-001/14 12 UP-16-008-011-001/2 13 UP-16-008-011-001/3 14 UP-16-008-011-001/4 15 UP-16-008-011-001/5 16 UP-16-008-011-001/6 17 UP-16-008-011-001/7 18 UP-16-008-011-001/8 19 UP-16-008-011-001/9 Report Completed

Green: Job Card With Photograph And Employment availed Gray:Job Card With Photograph and no Employment availed SunFlower:Job Card Without Photograph and Employment availed Red:Job Card Without Photograph and no Employment availed

5. Selection and execution of work Prerogative of the gram sabha. Contractor based works and concocted work records. 6. Regular measurement of work Done by the Gram Panchayat. Incorporation of contractor lead work in the muster rolls.

7. Supervision of work Lack of proper monitoring agencies. In-capacitance of the Gram Panchayat.
8. Payment of wages Delayed payments to workers because of nonavailability of proper payment methods. Less emphasis on record keeping. Introduction of payment through post offices, eSampark and e-Suvidha kendras.

9. Social Audits Results of the Social audit report 2011-2012 is given.

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Govt. of India Ministry of Rural Development Department of Rural Development The Mahatma Gandhi National Rural Employment Guarantee Act Monday, March 19, 2012 60:40 Ratio wise Expenditure Home Analysis oF NREGA IMPLEMENTATION IN Financial Year 2011-2012 : : GHAZIABAD : HAPUR

1 1 Babugarh

. . (%) (%) 2 3 4 5 2.55 2 0.55 -78.29 (21.71 %)

(Rs in lacs)

 Job card registration details (2011-2012)

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Whether it is the creation of long term assets at the village level, the development of land belonging to Scheduled Tribes or Scheduled Castes or the increased demand for work, the first phase of NREGA has been successful and our work now is to strengthen these outcomes in the second phase
Sh. Raghuvansh Prasad Singh, Indias Rural Development Minister 2008

 Average no. of days worked per person has fallen to 46.79 (2010-2011). States did not entertain demands - non payment of unemployment allowance. State obliged to pay unemployment allowance for failure to provide work in 15 days. Dependence of the scheme on employment from agriculture. Only 50-60% of the money spent from the money allocated for the scheme (as per Sh. Pranab Mukherjee).

 Change of leadership: Jairam Ramesh Jairam Rameshs plan of action: Aided by consortium of NGOs led by planning commission member Mihir Singh. Improve relations with the state governments implementing MNREGA. Use of embedded data on job cards and voice mails that show evidence of demand. Addressing grass root issues delays in wage payments and convergence issues. Considering Union Budget allocation constraints.

 Consideration of the effect of wages in Nrega. Would contribute to the second Green Revolution. India has 150 million Hectares of crop area (100 million hectares is rain-fed + 50 million hectares is irrigated). Nrega involves work of developing water resources, land leveling, compost making and other farm related activities in the 50 million hectares for irrigation. 60% of the Nrega work last year was related to water resources, which helps agriculture.

 Inclusion of agriculture activities sowing, harvesting, irrigation, livestock etc. Introduction of NREGA in 2000 most backward blocks of the country. Pilot project in Nalgonda district of Andhra Pradesh. Creation of a labor bank(mutual agreement between labor and the farmers). NREGA should be linked to agriculture to reduce the crisis of labor and increase productivity. NREGA can be used effectively when collaborated with Adhaar.

 Ensure that implementation of NREGA does not lead to labor shortage during agriculture season. Proposition of an off-period for NREGA. Extending NREGA to urban areas and building of permanent assets under the programme. Non-satisfactory utilization of resources (only 60% of the 40,000 Cr, acc to budget 201112, is spent). Creation of awareness among people considering low average employment under NREGA, of 47 days per person per household.

 As per our Finance Minister, Sh. Pranab Mukherjee:

Control of expenditure in the form of welfare concessions NREGA. Subsidy for food security and none for NREGA. 17% reduction in the budgetary outlay for NREGA in 2012-13. 40000 Cr in 2011-12 and 33000 Cr in 2012-13. Acc. To Mr. Jairam Ramesh: Opening balance (lying with the states) = Rs 6000 Cr Budgetary allocation (2012-2013) = Rs.33000 Cr State Govt. contribution for 2012-13 = Rs.3000 Cr Total Outlay: Rs.42000 Cr > Rs.40000 Cr in 2012-12.

 Recent court rulingPayments made under NREGA can not be lower than those prescribed by the Minimum Wages Act, 1948. The Minimum Wages Act, 1948 empowers the States to fix wages for workers for area under its jurisdiction. A new section (in the Minimum Wages Act, 1948) for a separate mechanism for wage rate under NREGA a necessary amendment.