Mahatma Gandhi National Rural Employment Guarantee Act

Ministry of Rural DevelopmentGovernment of India

To a people famishing and idle, the only acceptable form in which God could dare appear was 'work and promise of food as wages

Mahatma Gandhi

Presentation Overview

Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) Overview

NREGA & Agriculture Convergence Initiatives taken by the

Ministry

Mahatma Gandhi National Rural Employment Guarantee Act & Objectives

1. Providing wage employment opportunities

2. Creating sustainable rural livelihoods through rejuvenation of natural resource base i.e. augmenting productivity and supporting creation of durable assets

3. Strengthening rural governance through decentralisation and processes of transparency and accountability

An Act to provide for the enhancement of

livelihood security of the households in rural

areas of the country by providing at least one hundred days of

Guaranteed wage employment in every

financial year to every household

(FY 2008-09) 615 Districts

(FY 2009-10) (provisional) 619 Districts

Employment provided to households:  4.51 Crore 5.25 Crore

Total:   216.32 282.80SCs:  63.36 [29%] 86.69 [31%]STs:   55.02 [25%] 58.17 [20%]Women:  103.57 [48%] 137.39 [49%]Others:  97.95 [45%] 137.95 [49%]

Average personday per household 48 Days 54 days

Budget Outlay (In Rs Crore): 30000 39100Central Release (In Rs Crore): 29939.60 33506.61Total available fund [including OB]: In Rs. Crore. 37397.06 49605.91Expenditure (In Rs. Crore.) 27250.10 38473.36Average wage per day Rs. 84 Rs. 93Average cost per day Rs. 126 Rs. 136

Total works taken up (In Lakhs): 27.75 45.96Works completed:   12.14 20.82

Water conservation: 12.79 [46%] 23.30 [51%]Provision of Irrigation facility to land owned by SC/ST/ BPL/ S & MF and IAY benificiaries:

5.67 [20%] 7.74 [17%]

Rural Connectivity: 5.03 [18%] 7.63 [17%]Land Development: 3.98 [15%] 6.30 [14%]Any other activity: 0.28 [1%] 0.98 [2%]

PERSONDAYS [in Crore]

90.5 143.59

(FY 2006-07) 200 Districts

(FY 2007-08) 330 Districts

 2.10 Crore 3.39 Crore

FINANCIAL DETAIL

11300 12000

22.95 [25%] 39.36 [27%]32.98 [36%] 42.07 [29%]36.79 [41%] 61.15 [43%]34.56 [38%] 62.16 [43%]

43 Days 42 Days

WORKS DETAIL

  8.35 17.88

8640.85 12610.3912073.55 19,305.81

8823.35 15856.89Rs. 65 Rs. 75Rs. 97 Rs. 110

0.34 [4%] 0.56 [3%]

 3.87 8.224.51 [54%] 8.73 [49 %]0.81 [10%] 2.63 [15 %]

1.80 [21%] 3.08 [17 %]0.89 [11%] 2.88 [16%]

Outcomes

NREGA: Positive Trends Increase in Agriculture Minimum Wages and wage

earned per day and annual income. Bargaining power of labour has increased

Earnings per HH has increased from Rs 2795 in 2006-07 to Rs 3150 in 2007-08 to Rs 4060 in 2008-09 and about Rs 5000 in 2009-10

Financial Inclusion: 9.19 crore accounts opened Distress migration has reduced in many parts “Green Jobs” created as 70% works relate to water

conservation, water-harvesting, restoration, renovation and desilting of water bodies, drought-proofing, plantation & afforestation

Productivity effects of NREGA reported - Improvement in ground water - Improved agricultural productivity & cropping

intensity - Livelihood diversification in rural areas. 66

MGNREGA AND AGRICULTURE

Nature of MGNREGA works are such that they augment productivity

Community Lands

Water conservation Water harvesting Irrigation Drought proofing Plantation & Afforestation Renovation of water

bodies Desilting of tanks &

canals Flood control measures Rural connectivity

Private LandsPrivate Lands of SC/ST/IAY/Land Reform

beneficiaries/BPL/small and marginal farmers

Small & marginal farmers account for 80% of land- holdings & operate 40% of cultivated land

Land Development Irrigation facilities Horticulture Plantation

1%

8%

6%

9%

16%

13%

3%

16%

27%

Flood Control and Protection

Water Conservation and WaterHarvesting

Provision of Irrigation facility toLand Owned by SC/ST/BPL/ IAYBeneficiariesRural Connectivity

Land Development

Others

Drought Proofing (Afforestation& Plantation)

Micro Irrigation Works

Renovation of Traditional Waterbodies

Highest Priority to Water Conservation

Leveraging MGNREGA for Sustainable Development through Inter-sectoral

Convergence

From mere wage employment to sustainable rural livelihoods

From unskilled to skilled labour through knowledge & technology input, training & capacity building in productivity increases, water-use efficiency, backward–forward linkages

Significant productivity increases could be stimulated by NREGA on holdings of small and marginal farmers in rainfed areas

Increasing Share of works on private lands [provision of irrigation facilities to land owned by

SC/SC/IAY/BPL/Small and Marginal Farmer beneficiaries]

0

5

10

15

20

25

2006-07 2007-08 2008-09 2009-10

Improving Land and Water Productivity

through MGNREGAExpansion of private works to include Small & Marginal Farmers-Gram Panchayats to ensure that (as per permissible list) on lands of SC / ST and BPL receive first priority

“Pond or Dug-well on Every Farm in Rainfed Areas”: Provision of water source (farm pond / dug-well with recharge structure) on lands of small, marginal and tribal farmers-60% lands of small & marginal farmers and 90% lands of tribal farmers are unirrigated -Special focus will be on those who benefit under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006

12

NREGA works catalyse agricultural development through:

• Additional land under irrigation/cultivation

• Improved soil fertility and moisture conservation

• Convergence with NHM, RKVY, NFSM, Fisheries etc

• Growth in consumption of agricultural inputs through increased household earnings

So huge potential exists for NREGA convergence with agriculture and allied programmes such as;

• National Horticulture Mission

• Rashtriya Krishi Vikas Yojana

• National Food Security Mission

MGNREGS and Schemes of Ministry of Agriculture

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MGNREG Convergence with RKVY

• Developing of rain fed farming systems in and outside watershed areas, as also integrated development of watershed areas, wastelands, river valleys

•Activities relating to enhancement of horticulture production and popularization of micro irrigation systems;•Collection and processing of neem seeds as part of Integrated Pest Management

• Promote Organic farming through extensive composting and recycling of solid waste

• Seed production, packing and processing in common and community lands

• Common post harvest facilities for threshing, storage and labour intensive processing

14

MGNREGS with National Food Security Mission

National Food Security Mission (NFSM)The objective of the Mission

• Increase production of rice, wheat and pulses through area expansion and productivity enhancement in a sustainable manner in the identified districts

• Restoring soil fertility and productivity at the individual farm level

• Creation of employment opportunities; and enhancing farm level economy ( i.e. farm profits) to restore confidence amongst the farmers.

Value addition to NREGS work through NFSM

Individual land holding cultivators benefiting under NREGS should be included under NFSM on priority, for value addition through sharing of information: Critical role of ATMA 15

Convergence with Watershed ProgrammesGuidelines Issued

Project of a village to be prepared on Watershed approach

Delineation of Watershed as per Common guidelines for Watershed

Under NREGA, the size can be an area of the village matching micro watershed i.e. nearly 250 to 500 hectares.

Gap Filling through NREGAa) Areas treated under Watershed Development

programme but not saturated because of insufficient cost norms.

b) Difficult areas, being treated under the watershed Development programme, where the revised cost norms is also not sufficient to saturate the area.

c) New areas; neither yet treated nor planned under watershed programme and where works are to be planned on watershed approach under NREGA.

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Triggering Green Revolution in Rainfed Areas

Green Revolution bypassed the rainfed areas. Agriculture Development

Programmes and MGNREGS converged have potential to become a life-

support system in the rainfed areas

Most MGNREGA works contribute directly or indirectly to agricultural

development

Convergence of MGNREGA with agriculture and allied sectors is possible

across the value chain;

o Pre-production - Soil and water conservation projects form bulk of

MGNREGA works

o Production phase – Weed control in common lands, community

nurseries for planting material

o Post harvest – Common threshing floors, village roads for connectivity to

markets, composting post harvest waste

Convergence of MGNREGS with Schemes of Ministry of

Agriculture can improve soil health & water conservation17

Advisory to States

Assessment of labour & works in areas of deficient rainfall

GPs to be ready with Shelf of Projects Shelf of Projects may be revised and submitted

to Ministry for additional budgetary support Ensure adequate funds available in every GP Special attention to water conservation &

harvesting, restoration & renovation of water bodies

Convergence guidelines with Ministry of Agriculture issued. Progress should be monitored

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Water Conservation

Plantation Works