SUMMER TRAINING REPORT FOR THE PARTIAL FULFILLMENT OF THE RERQUIREMENT FOR MASTER OF BUSINESS ADMINISTRATION On

Appraisal of Gram Panchayat Under MGNREGA of

under the Supervision of MR. AMIT SINGH MR. GYANENDRA SINGH KUSHWAH SUBMITTED BY: SHOYEB MOHAMMED 092103128

DEPARTMENT OF MANAGEMENT STUDIES

BHOPAL (DEEMED UNIVERSITY)

PREFACE

"Just as the universe is contained in the self, so is India contained in the villages". Mahatma Gandhi

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian job guarantee scheme, enacted by legislation on August 25, 2005. The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public workrelated unskilled manual work at the statutory minimum wage of Rs.100 per day. The Central government outlay for scheme is Rs. 39,100 crores ($8 billion) in FY 2009-10.
The allocation for MGNREGA has been stepped up to Rs.40,100 crores in FY 2010-2011.

This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living in rural India, whether or not they are below the poverty line. Around one-third of the stipulated work force is women. The government is planning to open a call center, which upon becoming operational can be approached on the toll-free number, 1800-345-22-44. It was initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 2 October 2009.

Acknowledgement

We take this opportunity to thank Ministry of Rural Development, Government of India, and Block Panchayat of Katangi to give us this opportunity to monitor the working of the National Rural Employment Guarantee Act in Katangi. I am thankful to Mr. Amit Singh for his help and his guidance in completing the internship report. I am also thankful to for sharing some of his valuable time in guiding me during the internship.

We also thank the following for supporting our study in many ways: Villagers who shared with us their views, concerns and problems regarding NREGS and related area. Government officials at the block and village levels. Panchayat office bearers and leaders at block and village levels.

Date MOHAMMED

SHOYEB

TABLE OF CONTENTS Description

Page No.
PART 1.

07

Executive Summary

PART 2. Introduction
09 11 Section 2: NREGS - Implementation and Statutory Institutional 23 Mechanisms Section 3: NREGS- Operational Systems 24 Section 1: Mahatma Gandhi National Rural Employment Guarantee Program Genesis And Objective

PART 3. Project
Chapter 1: Problem Identification 28 Objective Impact Assessment Implementation Process

Chapter 2: Research Methodology 31 Section 1: Sample Selection Section 2: Research Methodology & Tools Section 3: Constraints and Limitations

Chapter 3: Data Analysis 34 Section 1: Socio-Economic Profile of Respondents Section 2: NREGS Implementation Section 3: Impact of NREGS Finding Salient Observations

Chapter 4 Chapter 5 50

Chapter 6 51

Suggestions / recommendations:

Part 1

Executive Summary
1. The latest form of wage employment program is the National Rural Employment

Guarantee Scheme (NREGS) which offers 100 days of guaranteed employment to the rural unemployed poor. The unique feature which distinguishes this scheme from previous employment programs is that the NREGS is endorsed by a legal guarantee. Accordingly, NREGS is implemented under the Mahatma Gandhi National Rural

Employment Guarantee Act (MGNREGA) a law enacted by Indian Parliament in 2005. This is a major step forward in the sense that it makes 100 days of employment or payment of unemployment benefit in lieu of that, an enforceable right of citizen to demand employment. Thus, NREGS is a public works program with a difference, which moves away from being a purely supply-side intervention to one which caters to demand for wage employment at individual/family level in rural areas. 2. The National Rural Employment Guarantee Scheme aims at enhancing the livelihood security of the people in rural areas by guaranteeing hundred days of wage employment in a financial year, to a rural household whose adult members volunteer to do unskilled manual work. The objective of the scheme is to create durable assets and strengthen the livelihood resource base of the rural poor. The choice of works suggested in the Act addresses causes of chronic poverty like drought, deforestation, soil erosion etc., so that the process of employment generation is sustainable. The Act envisages that the schemes will lead to large scale creation of livelihood assets in rural areas which can have a sustainable impact on rural poverty. 3. Every program/scheme is designed with a very clear and focused objective. NREGS is also not exception in this regard. As mentioned earlier, the NREGS was launched by GOI to have a direct impact on the rural households in terms of their increased opportunity for wage employment on one hand, and in creating livelihood assets in the farm and non-farm sector, on the other. With this perspective, GOI, as a part of its developmental mandate, has invested a huge sum of money in the promotion and implementation of NREGS across all the Districts in the country. It is worthwhile to see what impact the NREGS has been able to make on the village community? Has the scheme been able to justify its existence in terms of achieving its envisaged objectives? What are the key characteristics of NREGS that may be highlighted to further market this innovative concept and expand its outreach? 4. The quick appraisal has been done in three gram panchayat.. From each GPs were covered and 40 responses from each GP were recorded.

5. For quick appraisal primary data and secondary data both have been used. The study is done through survey questionnaires, field visits, focused group discussions and interviews with / Block / Village level officials, beneficiaries and other stakeholders. 6. The wage rate applicable for unskilled manual labour in the state has been increased from Rs. 58/- per day / person/for a specified labour to Rs.100/- equally applicable for both men and women. 7. Till date NREGS has provided employment to 47.36466 Lakh households in the state and total 2624.98 lakh mandays employment has been generated. Against total wage employment generated SC & ST put together account for 18% and 45.25% (1675.5 lakh mandays for both) 8. For effective implementation of NREGS the fund made available till date amounts to Rupees 5568.45 crore. So far total amount spent is 3722.82 crore, which is 66.85% of the fund received. In all 47.14 Lakhs works have been undertaken under the scheme. 9. It is observed that in awareness Generation through gram panchayat is major source. Role of Gram Pradhan in terms of making people aware of their rights as 48.33 percent and also other got information by co worker 30.8 percent 10. Regarding application of job card 100% respondents apply to Gram Panchayat for NREGS registration. Job cards were issued to 80% respondents within 15 days. 11. Most beneficiaries 86% reported that application for work, were mostly given written. Information indicates only 57.8% respondents were always provided employment within 15 days. 12. For selecting the works to be undertaken 55% respondents said that meeting of Gram Sabha was held and 42.5% respondents reported that the selection of works was done according to priorities of Gram Sabha.

13 According to 63.3% respondents the management of work-site was improper. As far as, facilities at work site is concerned 100% beneficiaries reported that drinking water, first aid and rest shade was made available. 80.6% respondents reported the muster-roll maintenance / updation was done at work site. Payment of wages was made weekly according to 18.3% respondents and 48% respondents reported that wages were paid fortnightly. 100% respondents said that wage payments were made through bank / P.O. Details of, work done and wage paid was not updated reported 68.3% respondents. 14. According to 85% respondents there is not payment of transport allowances. 15. Merely 10% respondents reported that social audit was conducted and 91% respondents were unaware of it. 16. In Balaghat district coupon system, has been introduced for payment of wages and it has checked the malpractices in wage payment. Another initiative is that a helpline at state level has been established on which complains can be registered and information can be sought as well. This helpline has become popular among people. MGNREGA cell has been created at State level. The Commissioner, MGNREGA heads this cell he is supported by Addl. Commissioner and Asstt. Commissioner. Head of Departments are there to take care of various functions like IEC, Training, P&E, IT, Social audit, Grievance Redressal, Finance etc. 17. The Information Education and communication of NREGS should be strengthened. To inculcate habit of operating through bank and empowering women the accounts may opened in their name. Also banks should be made more cooperative. 18. For effective management the strengthening of computerized MIS at Block Level is required. Adequate full time staff for NREGS and training should be ensured. There should be no charge in any form for job cards to encourage people to apply for job cards. Written applications for work should be encouraged. Planning has to be

strengthened and made more transparent. The need for improving the facilities at worksite is also there. VMCs should be made more popular and monitoring and evaluation should be strengthened.

Part 2

Chapter 1

INTRODUCTION
Section 1: National Rural Employment Guarantee Program Genesis and Objective 1.1.1 Wage employment programs have always been one of the major interventions of the Government for rural poverty alleviation in India. Employment Guarantee Scheme (EGS) one of the most significant these programs was first initiated in Maharashtra way back in 1973. It guaranteed employment to the rural poor in Maharashtra through piece rate wage labor. In 1977, the Government expanded this scheme to the whole country as the National Rural Employment Program (NREP). In order to provide employment access to landless poor, the Rural Landless Employment Guarantee Program (RLEGP) came into force in mid-1980s. Two of area specific wage employment programs, namely Nehru Rojgar Yojana addressing wage employment

issues in urban areas, and Employment Assurance Scheme (EAS) providing wag employment in resource poor areas, were merged in the late 1980s to form the Jawahar Rojgar Yojana (JRY). In reality, till the early 2000s, JRY was essentially a Food for Work Program. 1.1.2 The latest form of wage employment program is the National Rural Employment Guarantee Scheme (NREGS) which offers 100 days of guaranteed employment to the rural unemployed poor. The unique feature which distinguishes this scheme from previous employment programs is that the NREGS is endorsed by a legal guarantee. Accordingly, NREGS is implemented under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) a law enacted by Indian Parliament in 2005. This is a major step forward in the sense that it makes 100 days of employment or payment of unemployment benefit in lieu of that, an enforceable right of citizen to demand employment. Thus, NREGS is a public works program with a difference, which moves away from being a purely supply-side intervention to one which caters to demand for wage employment at individual/family level in rural areas. 1.1.3 Resources for schemes under NREGS are provided mostly by Central Government. Previous wage employment schemes such as Sampoorna Grameen Rojgar Yojana (SGRY) and the National Food for Work Program (NFFWP) have been merged under the NREGS. The schemes are to be formulated and implemented by the State Governments through the respective Panchyati Raj Institutions (PRIs). Initially, in 2005-06, NREGS was launched in more than150 most backward districts of the country, identified by the Planning Commission in consultation with the Ministry of Rural Development and the State Governments. However, since April 1, 2008, it has been extended to all the Districts of the country.

1.1.4 The National Rural Employment Guarantee Scheme aims at enhancing the livelihood security of the people in rural areas by guaranteeing hundred days of wage employment in a financial year, to a rural household whose adult members volunteer to do unskilled manual work. The objective of the scheme is to create durable assets and

strengthen the livelihood resource base of the rural poor. The choice of works suggested in the Act addresses causes of chronic poverty like drought, deforestation, soil erosion etc., so that the process of employment generation is sustainable. The Act envisages that the schemes will lead to large scale creation of livelihood assets in rural areas which can have a sustainable impact on rural poverty. 1.1.5 Upholding the Rights perspective, the Act clearly defines the fundamental principles and the basic entitlements of the laborers and workers.

The Act is a significant legislation in many ways. Unlike earlier employment schemes, it is demand-driven. People who need jobs will demand them, which the government is legally bound to provide. In case of failure to do so, the government has to dole out unemployment allowance. For the first time, rural communities have been given not just a development program, but also a regime of rights. The Act is far-reaching in its intent and scope. It is the first nation-wide employment scheme that guarantees employment legally to Indias rural population. Naturally, it has generated intense speculation and interest.

MGNREGA GOALS

a. Strong social safety net for the vulnerable groups by providing a fall-back employment source, when other employment alternatives are scarce or inadequate. b. Growth engine for sustainable development of an agricultural economy. Through the process of providing employment on works that address causes of chronic poverty such as drought, deforestation and soil erosion, the Act seeks to strengthen the natural resource base of rural livelihood and create durable assets in rural areas. Effectively implemented, MGNREGA has the potential to transform the geography of poverty. c. Empowerment of rural poor through the processes of a rights-based Law. d. New ways of doing business, as a model of governance reform anchored on the principles of transparency and grass root democracy.

KEY ELEMENTS OF MGNREGA: 1. Panchayats are key players. 2. Productive assets legally not-negotiable. 3. Local level planning base of implementation. 4. Gram Sabha to monitor all works and applications. 5. Contractors are not allowed in any manner.

BROADER OBJECTIVES: 1. Enhance livelihood security in rural areas. 2. Creation of need based productive assets at village level. 3. Protecting environment. 4. Empowering rural women. 5. Reducing rural-urban distress migration. 6. Fostering social equity.