nrega: the scheme and its current status

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PRESENTATION FOR THE COURSE

CURRENT AFFAIRS WORKSHOP

EMPLOYMENT GUARANTEE AND THE RIGHT TO WORK

SHIVRAJ SINGH NEGI KOMMU VENKATA RAVI SHANKARS. DEEPUK

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POVERTY IN INDIA The India State Hunger Index 2008 by

the International Food Policy Research Institute. Punjab has the best nutritional situation, whereas malnutrition in Madhya Pradesh is worse than in Ethiopia or Sudan.

Percent of population living under the poverty line, which is 356.35 rupees or around $7 a month in rural areas.

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Employment Guarantee Act: The Basic Idea

The Employment Guarantee Act is a step towards the right to work, as an aspect of the fundamental right to live with dignity

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The right to work as a “fundamental right”

The “right to life” is a fundamental right of all citizens under Article 21 of the Indian Constitution.

“Right to life… includes the right to live with human dignity, it would include all these aspects which would make life meaningful, complete and living.” (Supreme Court)

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The right to work in the “Directive Principles” of the Constitution“The State shall… direct its policy

towards securing that the citizen, men and women equally, have the right to an adequate means of livelihood…” (Article 39A)

“The State shall … make effective provision for securing the right to work…” (Article 41)

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NREGA 2005 in a Nutshell

The National Rural Employment Guarantee Act 2005 is a law whereby:any adult who is willing to do unskilled manual work at the minimum wageis entitled to being employed on local public works within 15 days of applying.

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Employment Guarantee Scheme (EGS)

Each State has to launch an “employment guarantee scheme” within six months of the Act coming into force.

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EGS: Basic Implementation Principles

Block is the basic unit of implementation.

In each Block, a “Programme Officer” is to coordinate the implementation of EGS

Gram Panchayats are the main implementing agencies.

Accountability to Gram Sabhas.

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EGS: Implementing agencies Gram Panchayats (half of EGS works) Other Panchayati Raj Institutions (PRIs) Line departments (PWD, Forest Dept.) NGOs.

Note: Private contractors are banned.

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EGS: Decentralised planning

Programme Officer to maintain shelf of projects, based on proposals from the implementing agencies.

Gram Panchayats also supposed to prepare a shelf of works based on the recommendations of the Gram Sabha.

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EGS: Permissible works

Minor irrigation Water conservation, drought proofing, desilting of tanks, flood control, etc.

Land development Rural roads “Any other work which may be notified by the Central Government in consultation with the State Government”

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EGS is a “demand driven” programme

Employment to be provided on demand, within 15 days.

Programme Officer sanctions projects to ensure that all applicants get work.

Programme Officer to arrange payment of unemployment allowance to those who don’t get work.

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EGS: Applying for work

Step 1 (Registration): Gram Panchayat to “register” interested households, to facilitate advance planning.

Step 2 (Application): Adult members of registered households apply for work.

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EGS: The Registration Process

Unit of registration is the household.

Gram Panchayat to issue a “job card” to each applicant.

Special meeting of Gram Sabha to be held to invite applications.

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EGS: The Application Process

Any adult member of a registered household can apply for work at any time.

Applications should be for at least 14 days of continuous work.

Advance applications are allowed.

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EGS: Wage-material ratio

Wage-material ratio should not be less than 60:40

Wages of skilled and semi-skilled labourers to be included in material costs

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EGS: Cost sharing

Central Government to pay for: wage costs, 75% of material costs, and some administrative costs.

State governments to pay for: 25% of material costs other administrative costs, unemployment allowance.

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The National Employment Guarantee Act.,2005

Registration for Employment.

The adult member of every House hold who – Reside in rural area ; and Are willing to do unskilled

manual work may apply for registration of their household for issuance of Job Card.

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Employment in the scheme Within 15 days of receipt

of an application and within a radius of 5 kms. from their place of residence

AND If Employment is not

provided within 15 days of receipt of his application

he shall be entitled to a daily Unemployment allowance.

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Unemployment allowances Rates

For First 30 days

For the remaining period of the Financial year

Employment wage + Unemployment

allowance

One fourth of the wage rate.

Not less than one half of the wage rate

Equal to the wages for 100 days of work in a financial year

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Minimum Wage

A person working for 7 hours would normally earn a wage equal to a wage rate

Minimum wage fixed by the state Government under section 3 of the minimum wage Act,1948

Wage rate is fixed by the Central Govt.

Shall not be at a rate of less than Sixty rupees per day .

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Type of works under the scheme Water conservation and Water

harvesting Drought proofing(Aforestation

and tree plantation) Irrigation canals Provision of irrigation facility to

land owned by SC/ST/beneficiaries under Indira Aawas Yozna

Renovation of traditional water bodies

De-silting of tanks Land development

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Type of works under the scheme Flood control and

protection works including drainage in water logged areas

Rural connectivity to provide all weather access

Other works notified by the Central/State Government

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Application for work

Sarpanch/ward panch

Programme Officer

At Gram panchayat Level

At Block/Tehsil /Taluka Level (appointed specially for this scheme) GP/PO shall be bound to accept the valid

applications and to issue a dated receipt to the applicant .

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Employment Card

Gram Panchayat will issue a Job Card after registration

Job card containing the details of adult members of household such as ; Names ,age ,address and photographs.

Registration will be made for five years and may be renewed from time to time.

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Availability of employment Applicants will be

intimated by written letter and a public notice will be displayed at the office of GP and PO.

Priority shall be given to women and in such a way that at least one third of the beneficiaries shall be women.

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Availability of employment Continued………

Employment shall be provided within a radius of 5 Kms. from their residence.

If Employment is provided outside 5 Kms., it must be provided within Block with 10 % extra wage to meet additional transportation and living expenses.

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Facilities for laborers at work site

Safe drinking waterShade for children

and periods of restFirst-aid Box for

emergency treatment and minor injuries

Health hazards connected with work to be provided

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Facilities for laborers at work site

Depute one woman worker to look after five or more children below the age of six years of women laborers

Deputed woman shall be paid wage rate

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Gender-related provisions

Equal wages for women and men in all circumstances.

No gender discrimination of any kind.

Priority for women in the allocation of work: at least 33% of labourers should be women.

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Serious accidents at work site If any person employed under the scheme is or

child accompanying any person injured ; he/she shall be entitled to free of charge medical treatment

During the period of hospitalization of injured worker Accommodation, treatment and medicines Half of the wage per day to be paid to injured person

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Serious accidents at work site continued………..

If a person employed under a scheme dies or becomes permanent disabled by the

accident at site The legal heirs of the deceased or the

disabled shall be paid an ex gratia payment at the rate of Rs.25000 By the Central government.

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Wage payment of laborers

The wage under a scheme may be paid either wholly in cash or, in cash and kind But at least one fourth of the wages shall be paid in cash

only All payment of wages in cash and UA shall be

made to concerns in the presence of independent persons of the community on pre-announced dates.

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Wage payment to laborers Continued…….

The disbursement of daily wages Weekly basis or in any case not later than a fort night

specified under the scheme.

Laborers shall be entitled to receive payment of compensation as per the provisions of payment of wages Act,1936

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Selection of works,prepare project proposals and execution of works

The Gram Panchayat shall be responsible for Identification of projects in the GP area and prepare a development plan as recommended by Gram Sabha and ward Sabha

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Selection of works,prepare project proposals and execution of works

Gram Panchayat shall

Maintain a shelf of possible works to be taken up as and when demand for work arises

Execution and supervision of such works

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Sanctions and allotment of works

Programme officer (Not below the rank of BDO at block level)

GP shall forward its proposals in the order of priority to PO for approvals

PO shall allot at least 50% works in terms of cost to be implemented through GP

PO shall supply each GP MRs for the

worksA list of

employment opportunities.

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Social Audit “Hamara Paisa, Hamara Hisaab!”

All NREGA-related documents to be available for public scrutiny.

Copies of documents to be made available at nominal cost.

Muster rolls to be pro-actively displayed at Panchayat Bhawan.

Documents can also be obtained under the Right to Information Act.

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Social Audit “Hamaara Paisa, Hamara Hisaab”

The Gram Panchayat Shall make available all relevant documents;MRs,bills,vouchers,MBs, Sanction orders and other books of accounts and Paper to the Gram Sabha for the purpose of social Audit.Gram Sabhas to conduct social audits of all works

taken up within Gram Panchayat

All relevant documents to be provided to the Gram Sabha by the Gram Panchayat and other implementing agencies

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Social Audit continued….. “Hamaara Paisa, Hamara Hisaab”

The Gram Sabha Shall monitor the execution of works within the GP

Shall conduct regular social audit of all the works done by GP

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Social Audit continued….. “Hamaara Paisa, Hamara Hisaab”

All efforts should be made to ensure transparency and accountability

All accounts and records relating to work shall be made for public scrutiny

A copy of Muster Rolls of every work shall be made available in the office of PO and GP for inspection by any person after paying such fee

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Social Audit continued….. “Hamaara Paisa, Hamara Hisaab”

The DPO, PO and GP shall prepare annually report containing the facts and figures and achievements relating to scheme within its jurisdiction

All the above documents shall be made available to the public on demand and on payment of prescribed fees.

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Machines and Contractors are Banned

The Scheme shall not permit engaging any contractor for implementation the project under this scheme

Works under this schemes shall be performed by using manual labor and not by machines

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Grievance Redressal Mechanism The State Government shall makes rules

and regulations to deal with any complaint at block and the District level

If any dispute or complaint arises the scheme by GP the matter shall be referred to PO

The PO shall enter every complaint in a complaint register and shall dispose the disputes and complaints within 7 days of its receipt.

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How is NREGA doing?(200 districts, 2006-7)

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NREGA: Fundamental Principles

Employment on demand.Legal right.Universal entitlement.Participatory approach.Accountability to PRIs.Full transparency.

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NREGA: Basic Entitlements

Employment within 15 days of application. Unemployment allowance. Work within 5 kilometres. Minimum wages. Payment within 15 days. No gender discrimination. Basic worksite facilities.

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NREGA: Employment Generation, 2006-7

Total: 90 crore person-days

Per job card: 24 person-days

Per rural household: 17 person-days

Minimum “requirement”:a 200 crore person-days

a NAC estimate, 2004.

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NREGA Expenditure, 2006-7

Total: Rs. 8,813 crores

Per district: Rs. 44.06 crores

Estimated requirement for 200 districts: Rs. 20,000 crores

Budget allocation for 2007-8 (330 districts): Rs. 13,000 crores

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Number of NREGA works, 2006-7

Taken up: 8.3 lakh

Completed: 3.8 lakh

In progress: 4.5 lakh

Approximate number ofvillages in NREGA districts: 2 lakh

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NREGA Employment, 2006-7: Person-days per rural household

Rajasthan 77 Uttar Pradesh 11

Assam 70 Andhra Pradesh 10

Madhya Pradesh 56 Haryana 9

North-Easta 45 Tamil Nadu 9

Chhattisgarh 34 Bihar 8

Orissa 21 Gujarat 7

Himachal Pradesh 20 Punjab 7

Uttarakhand 20 West Bengal 6

Karnataka 17 Maharashtra 4

Jharkhand 14 Kerala 3

Jammu & Kashmir 13 INDIA 17

a Except Assam (approximate figure, based on incomplete data).

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Person-days per rural household

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Share of Disadvantaged Groups in NREGA Employment

Women: 40%

Scheduled Tribes (ST): 36%

Scheduled Castes (SC): 26%

SC/ST Combined: 62%

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Share of Women in NREGA Employment

National average: 40%

Highest shares: Tamil Nadu 81%Rajasthan 67%Kerala 66%Andhra Pradesh 55%

Lowest shares: Bihar 17% Uttar Pradesh 17% Himachal Pradesh 12% Jammu & Kashmir 4%

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Share of Women in NREGA Employment

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Average Expenditure and Labour Costs

Average Expenditure per Person-Day Rs. 98

Share of Wages in Total Expenditurea 66%

Average Wage Cost per Person-Daya Rs. 64

aUnskilled labour only.

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Average Wage Cost per Person-Day

Kerala 121 Jammu & Kashmir 69

Maharashtra 104 Assam 67

Haryana 97 Karnataka 67

Punjab 94 North-Easta 63

Andhra Pradesh 86 Chhattisgarh 63

Jharkhand 80 Madhya Pradesh 59

Tamil Nadu 80 Uttar Pradesh 56

Uttarakhand 72 Gujarat 56

Bihar 70 Orissa 53

West Bengal 70 Rajasthan 51

Himachal Pradesh 69 INDIA 64

a Except Assam (approximate figure, based on incomplete data).

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NREGA: Employment and Wages, 2006-7

0

20

40

60

80

100

120

140

0 10 20 30 40 50 60 70 80 90

Person-days of work per rural household

Wag

e ra

te (

Rs/

day

)

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CDE-IHD Survey, 2007

A field survey of NREGA was recently conducted by the Centre for Development Economics (CDE) and the Institute of Human Development (IHD), with students from Delhi University and Jawaharlal Nehru University.

Date: May-June 2007 Survey Districts: Ranchi (Jharkhand)

Surguja (Chhattisgarh) Number of Gram Panchayats:23 Number of worksites: 47

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Surguja: Positive Findings

Most families have a job card.Awareness levels have improved.Employment on a massive scale.Minimum wages are being paid.Contractors have disappeared.

Most of the works are productive.Corruption levels have gone down.

Where there is work, NREGA is a lifeline for the rural poor.

Massive progress compared with earlier years!

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Surguja: Areas of Concern

Work is not “demand-driven”. Long delays in wage payments. Shortage of staff at all levels. Poor worksite facilities (e.g. creches). Violations of the transparency

safeguards. Corruption persists.

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Survey Findings: Application Process

Were most labourers at this worksite employed in response to an application for work?

RanchiSurguja

Yes 4% 11%

No 96% 89%

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Survey Findings: Wage Payments

Proportion (%) of worksites where:Ranchi Surguja

Most labourers earned the minimum wage n/a 84

Wages were paid in front of the labourersa 54 79

Wages were paid within 15 days32 16

Labourers had complaintsabout wage payments 71 90a Excluding payments through Banks

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Survey Findings: Worksite Facilities

Proportion (%) of worksites with the following facilities:

Ranchi Surguja

Drinking water 64 100

Shade for periods of resta 68 (16)

“Medicine kit” 68 59

Crèche 4 11

a Not including natural shade.

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Survey Findings:Vigilance Committees

Proportion (%) of worksites with:

Ranchi Surguja

Vigilance committee 8984

Active vigilance committee 1121

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Survey Findings:Estimated “Leakages”

Earlier surveys:

Dungarpur, April 2006: (negligible)Garhwa, October 2006: 85%

CDE-IHD survey:

Ranchi 33%Surgujaa 5%

a Gram Panchayat works.

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The Future of NREGA: Critical Issues

Activating the work application process. Implementation of transparency safeguards Timely wage payments. Need for a wage policy. Women’s participation. Redressal systems!

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NREGA and Party Politics

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THANKS