CHAPTER I

INTRODUCTION

The National Rural Employment Guarantee Act (NREGA) was enacted in

the year 2005. NREGA is based on a legal framework and it advocates a rights-

based approach, which enables employment for those who are in dire need of it by

creating a paradigm shift in comparison with the earlier programmes. The scheme

has the objective of livelihood enhancement and security through provision of a

minimum of 100 days guaranteed wage to every rural poor family with adult

members willing to do the unskilled manual labour in any given financial year.

Around 200 districts were covered in the first phase which was implemented on

2nd February 2006, and it was spread to an additional 130 districts in 2007-08

time-frame. All the other districts were brought under the effect from 1st April

2008. The original National Rural Employment Guarantee Amendment Act of

2009 was rechristened as MGNREGA or MGNREGS. Currently, MGNREGS was

brought into force on February 2006 in around 200 most backward districts of the

nation. In 2007, the scheme was extended to an additional 130 districts and the

remaining districts were notified about the same under the MGNREGS from 1st

April 2008. Hence MGNREGS was brought into force into the entire nation with

the only exception of districts that comprised of 100 percent urban population. The

scheme was created with the objective of creating labour work for the rural poor

masses during the off season of farming through the public sector programmes

which are available on demand as guaranteed by the Amendment. Along with the

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provision of a platform for income generation, it was also hoped that it will act as a

check on the distress migration enabling village asset creation leading to a process

of sustainable development initiation. The MGNREGA legally ensures the right to

employment for 100 days, it is demand-driven which has country wide coverage

and inbuilt accountability mechanisms. It is a scheme that embraces a gender

sensitive design.

Being a right-based scheme, MGNREGA, it is unlike other schemes. The

rights of workers of the MGNREGA forum consists of employment on demand,

guaranteed minimum wages, wages in par with gender, payment of wages within

15 working days along with the provision of basic on-site work facilities along

with the other benefits. The scheme guarantees a minimum of 100 days of

employment to every registered household in any given financial year. The

government is under legal obligation to provide employment within 15 days of job

application by the job seeker. In case of delay or default to provide employment

there is a provision for an unemployment allowance. The individual seeking

employment under this scheme has to register with the Gram Panchayat or the

Village Administration Council, which after due verification will provide the

family with a job card. MGNREGA acts as a powerful tool instrumental for

ensuring the inclusive progress as well as growth in rural areas of our country

through its Impact on social security, livelihood safety and also democratic

empowerment. We need to achieve some goals and there will be aims for each

goal. Mahatma Gandhi National Rural Employment Guarantee Scheme was also

brought into force with some objective and aims just as each revision scheme has

aims and targets when it is brought into effect.

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 These goals of the scheme are:

(i) improved livelihood security for the poor to deliver through the

creation of durable asset protection

(ii) safety for water efficiency, soil conservation and higher

productivity

(iii) Providing social support to vulnerable rural Indian people by

giving them job opportunities

(iv) Empowering people, especially women, disadvantaged social group,

all the planned tribes (SCs) and program (STS) through the rights-

based processes and rules.

(v) reinforcing participatory planning through different convergences of

poverty reduction and decentralized revenue projects

1.1 Implementation of Scheme

In all three areas where MGNREGS has been advocated viz., Kerala, Tamil

Nadu and Odisha, the vast majority of participants were aware and knowledgeable

about the program. In Kerala, 46 percent of participants had worked for focus

group MGNERGS and the average number of days worked through was 57.

Women and men used MGNREGA as the ultimate resort for their employment

needs. In Tamil Nadu, 72 percent of poll participants utilized MGNREGS and the

average number of working days being 68. Since men generally migrate to the

State of Kerala or Karnataka for higher-paid jobs, in Tamil Nadu MGNREGS

mainly used women as labourers.

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 In Odisha, while 61 percent of participants were working for MGNREGS,

fewer working days only were available to work through the program; the average

number of days was 36. Program designed MGNREGS as the last resort. In all

three alternative sites showed that participants participated in the prevailing wages

for local farmers as an alternative for MGNREGS for the private agricultural

market rates. In Kerala, most participants being men and women opted for private

agricultural work due to higher wages and also the provision of the meals which

was highly preferred. At the same time, however, some of the participants are

women in Kerala who preferred MGNREGS because they were treated better and

had better work hours that suited with their responsibility of child rearing.

In Tamil Nadu MGNREGS was used mainly by women. Men in Tamil

Nadu migrated to Kerala or Karnataka to high-paying employment in agriculture

during the off season. On this site the women revealed that though the centre had a

childcare unit that worked for them, they were not happy with the treatment meted

out and hence they plan to use that only as a last resort. The implementation

concerns may have had an impact on women due to the experiences they had as a

result. In Odisha, unlike our other two sites, MGNREGS wages were equal to that

paid in the private markets.

Many of the participants are men and women, showed that they preferred to

work for MGNREGS and not as agricultural workers in the private market because

of better working conditions. However, in the state of Odisha though enough

workers were available to work, there was less number of days available and

participants who get illegal labour using others’ job cards, and others who bribed

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the officials to get the highest number of days worked for a higher number of days

according to the program report. Tamil Nadu-policy makers stated about how

farmers and workers on the job could not agree to the terms and conditions of

MGNREGS since it came into force. If they were building a farm pond for the

farm workers can only do it in a private land in Tamil Nadu through MGNREGS.

Its owners could hire themselves and labourers on private land for MGNREGS as

construction employment workers. There was no indication from the focus group

participants that MGNREGS wages acted as a floor to impact private wages in

Tamil Nadu.

1.2 Salient Feature and Importance of the Scheme

The 100 days of wage employment scheme ensures minimum wage

guaranteed with a legal guarantee with "right to employment" provided for the

unskilled work of the rural masses. All adult members of the rural household who

are willing to do unskilled manual work possess the right to demand jobs. A family

must apply for registration to the Panchayat which is mandatory. After verification,

the job work card with the photo of the Panchayat leader will be issued to all the

adult members of the family who are willing to work under the program. The

holder of the job card is eligible to apply for work to the Gram Panchayat and he

will get a job application receipt number. Offer of employment by a Gram

Panchayat (local governing body) will be honoured within 15 working days and in

the case of failure to give employment, an unemployment allowance will be given

which is guaranteed by the programme. The weekly payment of wages is to be

done within 15 days and should not go beyond two weeks. Wage rates are paid to

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bank accounts of earning members through its post office or bank accounts. An

annual set of work to be done should be prepared in advance for each year. No

contractors or labour displacement machinery should be used in the

implementation of the works. The main role of Panchayati Raj institutions should

be planning, monitoring and implementation; at least one-third of the workers must

be women. The internal disincentive structure to the State Government for

guaranteeing employment. Payment of wages to be made in every week and in any

case not later than a fortnight.

.1.3 Significance of the scheme

The MGNREGS has given birth to the largest employment program in the

history of mankind and is different from any other employment plan in its size,

architecture and thrust. Its bottom-up, people-centered, demand-driven, even

choices, and rights-based design are obvious and unprecedented. The MGNREGS

offers a legal guarantee of paid employment. It is a demand-driven programme in

which employment services are triggered by workers ' demand for work. There are

legal provisions for compensation and compensation in the case of lack of work

and delays in the payment of wages.

The MGNREGS overcomes the problems of targeting through its

mechanism of self-targeting of the receiving Committee, i.e. a large percentage of

the poorest of the poor and the marginalized seek employment under the regime.

The scheme encourages States to provide employment, as 100 percent of unskilled

labour costs and 75 percent of the program's material costs are borne by the Centre.

Unlike previous employment programmes, which were based on the allocation,

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MGNREGS and transfers of resources from the Centre to the States are based on

the application for employment in each state. This allows Member States another

incentive to use the regime to meet the employment

It is also a deterrent not to give work on time, as states support the cost of

unemployment benefits. Gram Panchayats (GPs) is to implement at least 50

percent of the work in terms of cost. This order of delegation of financial resources

to the GPs is unprecedented. Plans and decisions concerning the nature and choice

of work to be carried out, the order in which each work is to be triggered, the

choice of plants, etc. Are all to be done in the open assemblies by Gram Sabha

(GS) and ratified by the Gram Panchayat. Work at the intermediate Panchayat (IP)

and District Panchayat (DP) level must be approved and assigned a priority by

Gram Sabha before administrative approval can be given.

1.4 Employment generation

The scheme has provided employment to 10.6 million households in the

year 2007-08, which scaled up to over 53,470,000 in year 2010-11 and slightly

dropped to around 50 million households in year 2011-12. This is a staggering

figure considering that overall rural households in India which are around 138

million, accounting for about 36 percent coverage. Women achieved 46.5 percent

of wage employment during 2010-11 shows greater equality in rural areas.

Women gained increased employment opportunities in states such as Tamil Nadu

(77%) and Rajasthan (68%). This indicates that the scheme has strengthened

women by creating more employment opportunities.

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 But even after almost five years of its implementation of 2010-11, only 7.5

percent of households received the 100 days of promised employment. Throughout

the states, Andhra Pradesh and Odisha were able to provide employment for 100

days at a relatively higher proportion of households. On average, the annual

employment worked at eleven personal days for the families covered by the plan.

This is probably due to a poor demand for work, in addition to less enthusiasm for

a sustained commitment and a low preference for the types of works offered under

the scheme.

1.5 Beneficiaries

The women beneficiaries that they constituted the terrestrial in all districts

except Cuddalore. This indicates that the regime was particularly useful for poor

women who could have been unemployed or underemployed. Among the farmers

category, marginal farmers and smallholders used the diet to increase their sources

of income. However, in rural areas such as Cuddalore and Villupuram, even

farmers with larger holdings (> 2 ha) in rainy conditions also participated in the

NREGS as employees.

1.6 Migration Status

Emergency migration between marginal farmers and agricultural work in

the rainy and drought-prone areas of urban and project areas is a serious concern.

Schemes such as MGNREGS by providing local opportunities through manual

work can reduce migration. Post MGNREGS, the level of migration has declined

dramatically in the sampling districts, the highest is in Cuddalore. Consequently,

migration income also decreased during the NREGS period compared with the

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period prior to NREGS, and the values were statistically significant (at 0.05 alpha

level). In addition, it has resulted in qualitative changes by avoiding higher

reallocations and living costs and increasing the enrolment rate of children in schools.

1.7 Employment for Rural households

The number of working days for employees was highest in Cuddalore with

623 person-days per household. The proportion of MGNREGS employment was

also the highest (30%) in the Cuddalore district followed by Villupuram.

Employment in the MGNREGS per household was also highest in the Cuddalore

district compared to the other three districts. However, most of the work

opportunities were available through agriculture, allied and self-employment.

Employment in the MGNREGS was crucial because it was available during the

Lean season, where other employment opportunities were scarcely available.

Women have more or less attained employment in the MGNREGS at the level of

their male counterparts. Similarly, the possibilities for them in other rural areas

were at the men's level, except in Villupuram.

In fact, women's access to paid employment has increased significantly

after the MGNREGS, but the number of days of employment is not significantly

different from that of their male counterparts, at best they were at the level.

Women are generally hired as agricultural workers for specific activities, however,

under the MGNREGS, men and women may also participate. Many unemployed

and underemployed of small and medium size, who did not choose to work as

agricultural workers on the territory of other farmers due to social constraints, also

participated actively in the MGNREGS and have Benefited from paid employment

for a better security livelihood.

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1.8 Wage Payment system

The method of payment for the work of the MGNREGS varied both

between and within the sites, and the method of payment seemed to affect the

extent to which corruption was. In some cases, the payment was made directly in

cash, and in other situations the payment went directly to a bank account. Since

payments were made directly to a bank account, there was no option for "service

charge” or "skimming", thus reducing corruption. In addition, some project sites

paid workers on a daily rate, while others based on paying on the amount of work

performed. In Kerala and Odisha the method of payment for the work of the

MGNREGS varied both between and within the sites, and the method of payment

seemed to affect the extent to which corruption was. In some cases the payment

was made directly in cash, and in other situations the payment went directly to a

bank account. Since payments were made directly to a bank account, there was no

option for “service charge” or “skimming", thus reducing corruption. In addition,

some project sites paid workers on a daily rate, while others based on paying on

the amount of work performed.

1.9 Wage discrepancies

According to the reported salaries of the study participants, there was a

variation of wages paid to MGNREGS workers, despite the assertion in most

groups that there was a standard wage for all workers. There were wage gaps in

MGNREGS between sites and between men and women, and in some cases, wages

were below the minimum wage. When asked about wage gaps, participants

indicated that women could not get the amount of hard work done in a day that was

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expected of those working with the MGNREGS, so they could be paid less than the

stipulated wages in this program. The landless women of our Tamil Nadu site

indicated that they only received ` 148 if they were able to complete the work and

dig the whole area. They had to clear and dig three square metres of land about 30

centimeters deep. The women stated that they could not achieve this in one day,

nor could most men do it. Hence, they would not get the full day wages. In the

private market, the prime reason stated for differing wages was ‘different pay for

different work’. When this reason was cited, it was crystal clear that there was a

gendered element involved to the pay roll. Policy implementers in Tamil Nadu

indicated that male labourers in the private market were paid ` 350 a day, on an

average, and women were paid ` 200 a day, on an average.

Table 1.1 MGNREGA and private wages for Men and Women

Project MGNREGA Private State minimum Type of work done by

Group
site wage wage wage MGNREGA workers
Rs 350 Farm pond development;
Men Rs 180 Rs 150
– 550 road construction
Kerala Rs 180;
Rs 125 for Rs 125 Roadway cleaning;
Women
landless – 225 clearing fields
women
Rs 100 (men, 6 hours);
Men Rs 100 – 148 Rs 350 Rs 85 (women, 5 Digging
Tamil hours)
Nadu Cleaning brush and shrubs
Rs 150
Women Rs 70 – 120 along roadways; pond
– 120
construction
Road construction and
Rs 150 repair; pond excavation;
Men Rs 150 – 240 Rs 90
– 90 housing and community
infrastructure
Odisha Pond excavation;
construction of latrines in
Women Rs 150 - 240 Rs 110 primary schools; housing
construction; road
construction

Source: Ministry of MGNREGA

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 In Kerala, participants in the Earthless women's group reported that they

were paid ` 125 for work under the MGNREGS (` 55 less than men), but made no

mention of gender inequality and socio-economic groups according to the

Program. Instead, when asked to pay for women and men, all the participants

indicated that the wages were equal between the sexes. A possible explanation for

the non-recognition by participants of the wage gap may be that private salaries in

Kerala were highly variable and depended on the type of work performed, the

location and gender of the worker. Wages in the private market ranged from ` 350

– 550 for men and ` 125 – 225 for women. It is also possible that gender pay

inequality is so widespread that it is perceived as equitable. In Tamil Nadu,

political entrepreneurs reported that private market wages in their state were ` 350

for men and ` 200 for women.

However, participants in the women's focus groups indicated that private

wages in the agricultural sector were significantly lower for women at 120 ` 150.

Participants, especially men, said they preferred to work in the private market

because of relatively higher wages. At Odisha, MGNREGA's salaries were raised

if work on a particular project was difficult. The chief engineer had the ability to

increase the salary up to ` 420 per day for harder work in difficult soil. Odisha

participants showed that women and men earned the same salary under the

MGNREGA (` 150) and that the private wage for agricultural work was higher for

men (` 150) than for females (` 100).

1.10 Influence on the Agricultural Wage Rates

Agricultural labour supply in India raised significantly from 56 million

over 1981 to 107 million during 2008. At the same time, the ratio of operational

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land holdings under small and marginal farmers (< 2 ha) grew from 70 percent in

1971 to 82 percent in 2001. These small farms in majority of the country do not

prove to be viable production units. Therefore, the political response to a poverty

situation or inequality has focused on inclusive growth. The inclusive growth

architecture is defined by prioritizing key performance areas through larger

programmes aiming at time-definite delivery of results, namely infrastructure

(rural roads, housing, electricity and water purification), development of Human

resources through basic education, health and livelihoods through the development

of qualifications, income-generating and, in particular, employment programmes

for employees (UNDP, 2011).

A massive employment opportunity in rural areas by MGNREGS is obliged

to have an impact on demand and labour supply, as well as on their salaries. The

prevailing agricultural salaries, which existed before and after the launch of the

MGNREGS, were therefore achieved through focus group discussions and directly

by farmers through personal interviews. Salaries have generally risen both at the

top and in the bad seasons with slightly higher growth rates in the peak season.

Among test districts, Cuddalore saw the highest annual increase, ranging from 33

to 39 percent a year. The pre-MGNREGS benchmark rate in Bella was relatively

higher. The increase in the agricultural wage rate during the MGNREGS period

was higher for the female workforce (up to 31%) in the Cuddalore district

compared to their male opposite rates. The impact of MGNREGS by way of

rationalization of salaries across gender arena was significant.

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 The annual average wage increase was in the 24-29 percent range in the

Villupuram district, mainly due to the MGNREGS implementation. It should be

noted that, according to MGNREGS, the salary is paid to a minimum, which is set

at an annual interval, and wages are calculated on the basis of ground work or

other manual labour proven by the engaged persons. The correlation between

MGNREGS salaries and market wages was also found to be positive. Workers

have benefited from the significant increase in rural salaries. At the same time,

higher production costs have a negative impact on farmers ' economies due to

higher labour costs.

That is why, in many cases, farmers opt for less labour-intensive crops or

other businesses. The increasing content combined with the timely unavailability

of labour also leads to the mechanization of some farms. Another drop from the

program was that many support groups (SHGs) formed earlier to promote group-

based rural businesses, especially in the Udaipur district, have begun to

disintegrate, as highlighted in focus group discussions. As people have been given

lighter employment opportunities in the form of MGNREGS, it seems they do not

want to make an effort to build SHGs and other community organizations to look

after themselves and collective employment activities where more efforts are being

made and risk is associated with it.

In fact, a job card holder can get a maximum of 100 to 150 days of work

during MGNREGS, which still leaves 215 to 265 days to work elsewhere. Even

though we take 50 days to recover, a person still has 165 to 215 days to work for

activities other than MGNREGS. As a mandate in the scheme, Gram Sabha, have

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to plan the nature and timing of work in MGNREGS and may also plan

MGNREGS work on 100-150 days in a year, so that no MGNREGS work other

than emergencies will be picked up under the peak agricultural season. But in

practice, Gramm Sabha is rarely called upon to opt for MGNREGS activities. In

many villages, Sarpanches/Pradhans (elected governors of the municipal council)

are consulted on the grounds of admissibility, and the times and activities carried

out under the MGNREGS are determined by the Technical Assistant and

block/Mandal Officer.

The problem of labour shortages can be solved more by improving the

operation of MGNREGS by keeping the window of MGNREGS employment in

such a way that it does not conflict with peak agricultural activities. But there will

still be a shortage of workers for the farm during the Post MGNREGS scenario. It

is therefore necessary to improve the operation and broaden the scope of

MGNREGS in order to alleviate the labour shortage in agriculture.

1.11 Impact of the scheme

Mahatma Gandhi's National Rural Employment Guarantee Programme

(MGNREGS) has brought in a positive impact on women's empowerment and

employment behaviour in recent years. It aims to increase the safety of life by

providing all rural households, particularly women, with at least 100 days of

guaranteed employment in a financial year. Women's participation has increased

significantly and is perceived as a sense of independence and security. The country

must be warned with the right training, and they too should be familiar with all

kinds of work according to their physical abilities. "Women need a part of the

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world. They play an important role in the growth of society and the country. The

definition of women is actually different for different individuals, but there is an

essential basis that cannot be changed regardless of nationality, caste, color,

occupation, etc., if women support themselves then it aids in bringing the entire

community together and the families are healthier.

The MGNREGS has improved the financial security with 100 days of

guaranteed work. Linkages of MGNREGS funds with rural household bank

accounts has facilitated financial inclusion. With certain disposable income in

hand, purchasing power of rural households has increased multifold which has

generated collective rural demand of an unprecedented extent. This collective rural

demand played a major role in sustaining the country growth rate of 7-9 percent.

led to creation of rural infrastructure & productive community assets mitigated the

economic uncertainty & its alias adverse repercussions on family & individual

well-being amidst agricultural distress & lack of adequate livelihood alternatives

significant proportion of MGNREGS beneficiaries have been rural women.

This has enabled women to empower in the truest sense of the word by

reducing their economic dependence on men. With certain disposable incomes in

hand, women have been better able to spend their money on education and basic

health care for their children, while it has so far been used to get expenses for

drinking, their husband's gambling provision of Social audit has improved social

capital among rural communities. In addition, tasks awarded under MGNREGS

have helped to improve the culture of community ownership of assets that are

being created and cooperation with bread with each other to ensure the

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accessibility of employment for the previously inaccessible to o create an excluded

social community. That is why it is very important to empower women. The

empowerment of women refers to the influence of one's own decision-making. The

word "empowerment has become synonymous with the word women."

MGNREGS is the most significant act in the history of Indian politics in many

ways, such as grassroots participation at the base of every citizen and beneficiary

through democratic process, a multifaceted social audit and a transparency

mechanism Through the participation of civil society, comprehensive planning at

the village level towards sustainable and equitable development, etc.

An important feature of the scheme is improving the quality of life of rural

residents who are vulnerable to emigration in search of daily wage work by

channeling the wage workforce into development at the village level itself. The

program was originally underway in the first phase of 200 districts during its

cognitive phase has sparked much enthusiasm among social scientists and NGOs

and led them to initiate multiple surveys on their own. The surveys, as in the cases

of another system, focus on the final results, such as the target of all beneficiaries

in need, and the implementation of the scheme in letters and spirit. The system is

gigantic in nature and in the implementation process and in achieving the desired

performance. There are many issues spanning the implementation agencies from

district to Gram Panchayat. The MGNREGS includes the participatory planning

and implementation of the system through the proactive role of Gram Sabha, strict

and continuous monitoring through social audits and the involvement of ordinary

people at the grassroots level.

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 The MGNREGS program would have a positive impact on increasing

quantum and employment levels. Agricultural incomes have increased nationwide,

with the impact of MGNREGS considerable. The female farm wage was

significantly higher than the male wage. MGNREGS provides jobs equivalent to

18.1 percent of total household work. The study highlighted the employment gap

in underdeveloped and developed areas. The MGNREGS is a program that gives

people the opportunity to improve their economic condition. Just providing

unskilled manual labor over the scheme doesn't seem like a strong idea for the

future.

The care of skilled workers and professionals should be translated into the

scheme. The study has shown that family welfare for male and female workers is

increasing, how they spend more on family, child-rearing and allowing these

savings in the bank and post office after work under MGNREGS. The programme

improves the employment knitting rate under MGNREGS, and agricultural work

such as agricultural work needs to be introduced. In addition, the work for skilled

workers must be identified in order to benefit from the system. Reducing the

irregularities in the implementation of the system must support vigilance and

compliance with the measures. The MGNREGS is implemented all over the

country. The care of skilled workers and professionals should be translated into the

scheme. The study has shown that family welfare for male and female workers is

increasing, how they spend more on family, child-rearing and allowing these

savings in the bank and post office after work under MGNREGS. The programme

improves the employment knitting rate under MGNREGS, and agricultural work

such as agricultural work needs to be introduced. In addition, the work for skilled

18
workers must be identified in order to benefit from the system. Reducing the

irregularities in the implementation of the system must support vigilance and

compliance with the measures. The MGNREGS is implemented all over the

country.

1.12 Rises in the Household Income

The MGNREGS result contributed significantly to household income.

Annual household income from all sources was the highest (62,357) for wage

seekers in the Cuddalore district, while it was the lowest (25,893) in the

Villupuram district. Agricultural wages were the main source of livelihood in three

of the four district districts, with one exception in Cuddalore, where MGNREGS

wages accounted for the largest share (33%) of family income, by the way, the

district has accounted for much of its area under Dry land. This suggests that the

need for MGNREGS work in predominantly governed neighborhoods is higher.

MGNREGS wages accounted for 12 percent to 18 percent in the other three states.

1.13 Women’s Participation

Since women's involvement is one of the MGNREGA's most targeted

goals, it is important to see the extent of women's participation in the program.

There are various factors that encourage the participation of women workers in this

programme are the type of work that no skilled worker needs, the limited working

hours, the availability of work on the ground, the reduction of the migration of

male Members, a significant leap into salary ratio, etc. Women's participation

varies widely across the country. The participation of women under MGNREGA is

measured by the person.

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 The operational guidelines for the MGNREGS aim to promote the effective

participation of women as both workers and managers in the scheme by reserving

33 percent of all working days in a financial year to a budget. The scheme looks at

the reservation of 33 percent of all working days for female workers in a financial

year. It also has the provision of manufacturing goods, protecting the environment,

empowering rural women, reducing migration from rural areas to urban

emergencies and promoting social justice. Water protection, dry protection

(including plantation and afforestation), flood protection, land development, minor

irrigation are among the permitted works to be carried out under the scheme. There

is also a clear instruction in Scheme for equal pay of wages for men and women.

Creche, drinking water, first aid and shade are to be provided on the construction

sites. If there are more than five children under the age of 6 and this payment to the

creche in the work places. The scheme also stipulates that the wage capital ratio in

public works programs must be at least 60:40. The other important feature of the

scheme is that 100 percent wage costs are borne by Central Govt. 25 percent of the

costs of material are borne by the state government unemployment benefit from

Government State.

India is an agricultural country and one in four people live in rural India

below the poverty line. By implementing the system from 2006 onwards, it has

changed the nature of the labour market by allowing rural households to earn a

minimum income by obtaining job cards under this scheme. There are 12 crore job

cards issued as of today. In addition, the program is inclusive of with a higher

participation of women and SC and ST people. Today, almost one in two jobs

created under the scheme is for the SC and ST women and it is about 40 percent of

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the people. This system is an opportunity for women to earn and an opportunity for

their economic empowerment. Interestingly, the system has indirectly allowed

households to free themselves from the clutches of local funders, and their

payment is also made by direct money transfer to recipient accounts. This system

has made people open 10 new bank and post accounts. The newly opened accounts

have encouraged access to bank loans and helped improve education for children

in MGNREGS households.

1.14 Employment for women

Even within the MGNREGS, women were still disadvantaged workers. As

well as lower wages, women reported not always being treated very well by their

building regulators and were often given work that was too difficult for them. On

top of that, their unpaid caring responsibilities for children and home meant they

often couldn't work the equivalent men's long hours, and they were sometimes

docked for it. In Kerala, landless women stated that they sometimes used childcare

facilities or took their babies to the fields more often. In Tamil Nadu, women were

more likely to put their children in Anganwadi centres, which are childcare centres,

to be able to work in the fields. Interestingly, despite the challenges these women

face as MGNREGS workers, they generally viewed the program as positive,

perhaps because it gave them the opportunity to earn their own pay.

Although some of the women preferred to work for MGNREGS because

they had more flexible working hours and the ability to get their children to the

site, others also mentioned that they were not treated very well by their superiors

and that the work was too difficult. Landless women in Tamil Nadu were

21
particularly articulate about their challenges with MGNREGS. While participants

confirmed that the official cap on the top pay cap was ` 148, the work required to

earn that wage was based on what a man can complete in a day, even though the

majority of MGNREGS workers were women. Because work was paid after what

was achieved, women tended to be paid less because they didn't get so much done.

There were two reasons for this. At first, they found the work difficult, especially

in the cases where they dug, and were unable to do the required burial work.

Second, the women indicated they needed to work around their children's

schedules, and so women with children tended to work a shorter day. The women

said the wages they received from the MGNREGS scheme ranged from ` 70-90 to

a maximum of ` 120.

1.15 Livelihood Opportunities

The program has the potential to affect the lives of millions of women and

children in many ways: First, increasing women's labor supply is likely to improve

their incomes and thus their bargaining power in the home. This also has an impact

on their children. Increasing maternal employment will have a positive impact on

children's health and education in human capital if the income substitution effects

of mother labour force participation exceed the substitution effect. Improving

women's bargaining power can further increase both the quantity and quality of

children's human capital. Secondly, improvements in MGNREGS can lead to good

public care (example access to roads, flood control, land development and

maintenance of irrigation systems and canals), which also has the benefits of

women and children. Be able to improve directly. Conversely, participation in the

22
MGNREGS can also have a perverse impact on women and children. For example,

the increase in labour force participation and the negotiations of women can also

lead to more conflicts in the budget. An increase in manual labour can also worsen

women's health. It can also increase the demand for child labour for both

agricultural and non-farm work and reduce its human capital. This leaves the net

effect of access and participation in the MGNREGS for women and children

theoretically unknown.

1.16 Performance of MGNREGS

There have been some significant successes that have benefited

MGNREGS. Since its inception in 2005, MGNREGS's performance has fluctuated

showing variations. In some countries, and in some indicators, it has moved

beyond potential, while on others it is perceived as inadequate. Overall, the

performance cannot be considered faultless. There were some revisions indeed, as

need of the hour, but even so, there were many areas where the act was deemed

deficient. However, as the studies show over the years, the experiences of

MGNREGS vary from country to state and within a given state. In rural women's

bond, there is extensive female involvement in MGNREGS, which has led to

women coming out of their homes, not only to work but also to visit banks and

offices in Panchayat, which they may not have done before. Women's employment

by MGNREGS is currently being implemented in all states of the country. The

MGNREGS has led to a major financial inclusion where accounts have been

opened in the bank and post office for the families getting employment. Ministry

has advised all states to ensure payment of wages in full through the accounts. The

23
survey, conducted in different states, shows impressive female participation in

employment generated by MGNREGS.

The highest employment status for women in terms of person's days is seen

in Kerala (92.75%), followed by Puducherry (80.36%) Goa (75.64%) Tamilnadu

(73.82%) and Rajasthan (69.29%). Uttar Pradesh represents the lowest proportion

of women employed at 26.97 percent. It is commendable that most states and UTs

have employed more than a third of women as workers, leading to women's

employment. MGNREGS is a law aimed at boosting women's employment by

enforcing that about 33 percent of the total workforce should be women and that

there will be equal wages for men and women. It plays an essential role in creating

jobs for women there by leading to greater independence and self-esteem for

women. Female workers feel very satisfied with the MGNREGA employment, as

they can now receive wages equal to the male workers and they too can participate

in the increase of their family by becoming a working member of the family, so

MGNREGS has Economic independence brought to women, that was the main

goal of MGNREGS.

1.17 National level since (2018-19)

The National Level Department and associated state rural development

departments are responsible for implementing MGNREGS across the country. This

ministry updates the progress of implementing MGNREGS on its website twice a

year based on the data provided by the states.

24
 Table 1.2 Job Cards Details of MGNREGA among India and Tamilnadu
(2018-19)

Sl.
Particulars India
No
1 Total No. of Districts 691
2 Total No. of Blocks 6, 918
3 Total No. of Gram Panchayats 2, 62, 436
4 Total No. of Job Cards issued (In Cr %) 12.86
5 Total No. of Active Job Cards (In Cr %) 7.48
6 Total No. of Workers (In Cr %) 25.16
7 Total No. of Active Workers (In Cr %) 11.58
8 Total No. Person Days Generated (In Cr %) 159.89
9 Women Person Days out of Total (%) 53.38
10 Total No. of Households Benefited (In Cr %) 4.22
11 Average days of employment provided per Household (%) 37.93
12 Average Wage rate per day per person (`) 179.14
13 (i) SC worker against active workers (%) 19.91
14 (ii) ST worker against active workers (%) 16.26

Source: Ministry of MGNREGA

The national level performance of MGNREGA was seen with the table 1.2.

Table 1.2 shows that the districts covered under and other indicators of the

MGNREGA. MGNREGA has 691 district, 6, 918 blocks and 2.62, 436 Gram

Panchayats., 12.86 Core Job Cards issued (7.48 Core Active Cards), 25.16 Crore

Workers are involved in the work (11.58 Crore Active Workers), 159.89 Crore

Person Days are generated, Personnel Days of a total of 53.38 Crore, 4.22 Crore

households are favoured, 37.93 crore average days of employment per household,

wage ratio per day provided per person 79.14, 19.91 percent SC and 16.26 percent

ST workers were benefited under the scheme.

25
1.18 State level since (2018-19)

Table 1.3 Job Cards Details of MGNREGA among India and Tamilnadu
(2018-19)

Sl.
Particulars Tamilnadu
No
1 Total No. of Districts 31
2 Total No. of Blocks 385
3 Total No. of Gram Panchayats 12, 524
4 Total No. of Job Cards issued (In Lakhs %) 81.42
5 Total No. of Active Job Cards (In Lakhs %) 69.61
6 Total No. of Workers (In Lakhs %) 118.64
7 Total No. of Active Workers (In Lakhs %) 86.92
8 Total No. Person Days Generated (In Lakhs %) 1282.37
9 Women Person Days out of Total (%) 84.79
10 Total No. of Households Benefited (In Lakhs %) 47.02
11 Average days of employment provided per Household (%) 27.27
12 Average Wage rate per day per person (`) 170.55
13 (i) SC worker against active workers (%) 28.04
14 (ii) ST worker against active workers (%) 1.39

Source: Ministry of MGNREGA

The performance of the state level of MGNREGA is covered in the Table

1.3 showing that the state is under and other indicators of the MGNREGA.

MGNREGA has covered 31 districts, 385 blocks and 12, 524 Gram Panchayats.,

81.42 Lakhs job cards were issued (69.61 Lakh's active job cards), 118.64 Lakhs

workers involved in the work (86.92 Lakhs active workers), 1282.37 Lakhs Person

Days are generated, Women's person days out of a total of 84.79 lakhs, 47.02

Lakhs households are welcome, 27.27 Lakhs average day employment per

household, average wage provided per day per person 170.55, 28.4 percent SC and

1.39 percent ST workers were under the Program benefits.

26
1.19 District level since (2018-19)

Table 1.4 Job Cards Details of MGNREGA among India and Tamilnadu

(2018-19)

Sl. Particulars Cuddalore

No
1 Total No. of Districts 13
2 Total No. of Gram Panchayats 683
3 Total No. of Job Cards issued (In Lakhs %) 4.47
4 Total No. of Active Job Cards (In Lakhs %) 4.03
5 Total No. of Workers (In Lakhs %) 7.76
6 Total No. of Active Workers (In Lakhs %) 6.01
7 Total No. Person Days Generated (In Lakhs %) 71.34
8 Women Person Days out of Total (%) 75.4
9 Total No. of Households Benefited (In Lakhs %) 3.14
10 Average days of employment provided per Household (%) 22.73
11 Average Wage rate per day per person (`) 157.03
12 (i) SC worker against active workers (%) 34.59
13 (ii) ST worker against active workers (%) 0.4

Source: Ministry of MGNREGA

The district level performance of MGNREGA is covered with Table 1.4

showing the district other indicators of the MGNREGA. MGNREGA has 13

blocks and 683 Gram Panchayats, 4.47 Lakh's Job cards were issued (4.03 Lakh's

active Job cards), 7.76 Lakhs employees involved in the work (6.01 Lakh's active

workers), 71.34 Lakhs Personality Days are generated, women's days from the

total 75.4 Lakhs, 3.14 Lakhs households are benefiting, 22.73 lakhs average days

of employment per household, average wage per day per person provided 157.03,

34.59 percent SC and 0.4 percent ST workers were benefited under the program.

27
1.20 Block level since (2018-19)

Table 1.5 Job Cards Details of MGNREGA among India and Tamilnadu
(2018-19)

Sl. Particulars Annagramam

No
1 Total No. of Gram Panchayats 42
2 Total No. of Job Cards issued (In Lakhs %) 29, 170
3 Total No. of Active Job Cards (In Lakhs %) 27, 501
4 Total No. of Workers (In Lakhs %) 53, 070
5 Total No. of Active Workers (In Lakhs %) 41, 752
6 Total No. Person Days Generated (In Lakhs %) 4,39,995
7 Women Person Days out of Total (%) 82.37
8 Total No. of Households Benefited (In Lakhs %) 20,082
9 Average days of employment provided per Household (%) 21.91
10 Average Wage rate per day per person (`) 138.8
11 (i) SC worker against active workers (%) 35.53
12 (ii) ST worker against active workers (%) 0.34

Source: Ministry of MGNREGA

The Block level performance of MGNREGA has been seen with the Table

1.5 which shows the Blocks covered under and other indicators of the

MGNREGA. MGNREGA has 42 Gram Panchayats, 29, 170 job cards have been

issued (27, 501 active Job cards), 53, 070 workers involved in the work (41, 752

active workers), 4,39,995 person days are generated, women's days out a total of

82.37 lakhs, 20.082 households are Benefited, 291 percent average days of

employment provided per household, average wage provided per day per person

138.8, 35.53 percent SC and 0.34 percent ST workers were benefited under the

scheme.

28
 There are two conclusions to be drawn from this analysis. First, the promise

of 100 day employment to members of every household seeking employment is

largely unfulfilled. Second, there are several in built-in bias in the execution of

MGNREGS. The poor, are inadequately represented in those selected for

participation, the duration of employment for poor households is systematically

lower. At the same time, the non-poor are disproportionately represented,

suggesting a certain amount of capture. Third, while few participants admit to

paying bribes, several reported that personal acquaintance was necessary to secure

employment under MGNREGS. Many participants indicated that they wanted to

continue working on MGNREGS. This is less an indicator of the effectiveness of

the MGNREGS than of the fragility of their livelihoods.

1.21 Assessing the Impact of the works under the scheme

The Mahatma Gandhi National Rural Employment Guarantee Scheme

(MGNREGS) has a history of poverty reduction in India. It offers unskilled poor

work to tackle the worst form of poverty in rural India. It provides a legal

guarantee for 100 days of wage employment in a financial year for any rural

household whose adult members volunteer for unskilled manual labor at the

minimum wage for agricultural work in the state or an unemployment allowance to

be provided to handle the increasing design of wage labour plans to combat

poverty more effectively. Since India's independence, one of the biggest challenges

facing successive governments has been to provide adequately paid jobs for the

vast majority of farm workers who were unemployed or mostly underemployed

under unwelcome circumstances, employment and livelihoods

29
 This study aims at exploring whether the intended beneficiaries actually

value these MGNREGS projects and, if so, in what way and how much. The

valuation of infrastructure and public works projects involves calculating net

benefits or social returns on these assets by measuring the difference in economic

benefit to beneficiaries relative to the costs incurred in the creation and

maintenance of this property. These are a number of assumptions as to which

prices are suitable to assess them, the life of an asset, etc. Instead of using this

approach, this research work was conceived as a comprehensive assessment;

drawing on objective perceptions usefulness of assets created under the scheme

besides documenting the use of these MGNREGS works the local community and

their own truthfulness. Although the evaluation of MGNREGS work is a technical

issue, beneficiaries can still make considered judgments on quality and benefits.

The central premise of documenting the subjective perceptions of potential users of

these works is that it is possible to give an overview of the quality and usefulness of

the works created under the MGNREGS. The perception of benefits and costs or

quality is necessarily subjective in nature and therefore has a specific interpretive

value. They are best seen as indicators that complement the benefit-cost studies and

take into account an important dimension of this work from the point of view of users.

The serious problem of unemployment is not limited to a particular class,

segment or society, as massive unemployment prevails among even the educated,

well-educated and qualified people, as well as among semi-skilled and semi-skilled

people, and Unskilled workers, landless, predominant, small and marginal farmers,

etc. Unemployment or underemployment is a very complex problem, especially in

rural areas, compared to urban areas, which is where planners, economists,

politicians, Industrial educators face major challenges.

30