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NREGA 2005
 Operational Guidelines 2008
 - Policy and Programmatic Pointers


             Jitesh Panda
Vrutti Livelihoods Resource Centre
             11 June 2010
In Black Font:
Extracts from NREGA Operational Guidelines
2008

In Blue Font: Feedback and Suggestions
Objective of NREGA….
   To enhance livelihood security in rural areas

             by providing at least

   100 days of guaranteed wage employment
     in a financial year to every household
        whose adult members volunteer

                     to do
            unskilled manual work
Objectives of NREGA…
NREGA relates to
  Entitlement
    Demand focused but implemented in target driven
    supply mode
  Household
    Focuses on whole HH not specific to Male or Female
  Unskilled Manual Work
    Unskilled Wage Earners keen on graduating to take up
    Skill Work
    In era of mechanization, it is not logical to do hard
    unskilled Manual Work
Goals of NREGA….
 Social Safety Net – A fall back employment source
 May be working at GP/Area level
 Employment scenarios vary with HH/Individual
 NREGA is yet to be HH/Individual focused
 Influence regular source of employment source
 In many places, increase in wage rate has led to unavailability of
 labour for agriculture production

 Growth Engine for Sustainable Development of Agriculture
 Economy
 Assets developed at community level; Benefits land owners
 Most of the wage seekers have no/little agriculture land
Goals of NREGA….
 Rights based approach to Empowerment
 Demand led rights based approach requires time;
 However, orientation of implementation is on
 achieving target of wage creation, more so when
 there is no target under Act
 Institutional mechanism to facilitate expression of
 demand not in place

 Model of Governance – principles of transparency
 and grassroots democracy
 Has made a difference at GP level; Need to move
 further to Village and HH level
Salient Features of NREGA…
 Submit written application for employment
 Most wage earners are illiterate; Facilitation support
 generally not available

 Need to state time and duration for which work is
 sought
 Difficult for Wage seekers to predict when their
 regular work would resume;
 As wage rate is higher, they take risk and go for
 maximum opportunity;
 At times disturbs the regular labor market, local
 agriculture production
Salient Features of NREGA…
 Minimum days of employment to be fourteen
 In some cases, during agriculture season, it is difficult
 to think of minimum 14 days

 Work to be provided within 5 Kms of village
 Most wage seekers prefer to work in own or
 neighboring village

 Wages to be paid as per Minimum Wage Act 1948
 In most cases Minimum Wage is higher than market
 rate; and thus distort to regular livelihood activities
 Being Entitlement oriented, demand driven; the wage
 need to be lower than prevailing market rate
Salient Features of NREGA…
 Equal Wage for Men and Women
 In practice difficult to execute; when work is
 undertaken in group and paid on piece rate basis

 Weekly disbursement of Wage
 Most Wage Seekers expect wage on daily basis

 At least 1/3rd of beneficiary need to be women
 As it is 100 days per HH; Always preference for male
 to go out for work and then female goes
 Distinction may be made at HH level
Salient Features of NREGA…
 Wage on piece rate basis
 Many a times work out to be lower that minimum wage
 Issues related accurate and timely measurement

 Work recommended by Gram Sabha; Approved by Zilla
 Panchyat
 Limited scope for Individual Work
 Scope for further decentralization in decision making process

 Social Audit by Gram Sabha
 Could be done by Palli Sabha;
 Need for facilitating Agency
Key Stakeholders….
 Wage seekers
 Gram Sabha
 PRIs, specially the Gram Panchayat
 Inadequate capacity – institutional and technical

 Programme Officer at the block level
 District Programme Coordinator
 State Government
 Ministry of Rural Development

 NGOs not viewed as Key Stakeholder
 NGOs could facilitate mobilization of demand for NREGA
Communication of NREGA…
 The State Government should draw upan IEC Plan
 Focus on communication through TV, radios, films,
 print media

 Need to be decentralized
 Possibility of involvement of local NGOs could be
 explored
 Besides communication – hand holding facilitation is
 required; As most job seekers are illiterate
Development Plan for NREGA…
 Covers
     Assessment of labour demand
     Identification of works to meet the estimated labour demand
     Estimated Cost of works and wages
     Benefits expected in terms of employment generated and physical
     improvements (water conservation, land productivity)
 Focus on District Perspective Plan
 Need linkage with other District Level Plans

 Need to have Village Perspective Plan with clarity on Individual Job
 Seeker HH Plan

 Overall may relate to livelihood promotion perspective/aspiration at
 different level – Individual, HH, Village, GP, Block and district
 Thrust may be on individual/HH work and then on higher level
Permissible Works under NREGA…
 Water conservation and water harvesting
 Drought proofing, including afforestation and tree
 plantation
 Irrigation canals, including micro and minor irrigation
 works
 Provision of irrigation facility, plantation, horticulture,
 land development to land owned by households
 belonging to the SC/ST, or to land of the beneficiaries
 of land reforms, or to land of the beneficiaries under
 the Indira Awas Yojana/BPL families

 Scope related to this may be broadened to include all
 Job Seekers
Permissible Works under NREGA…
 Renovation of traditional water bodies,
 including de-silting of tanks;
 Land development;
 Flood-control and protection works, including
 drainage in waterlogged areas;
 Rural connectivity to provide all-weather
 access

 Most of works are community level works
 benefitting agriculture land owners
Monitoring…
 Gram Sabha will monitor all the works at the
 village level
 Vigilance and Monitoring Committee (VMC)
 from amongst Gram Sabha - for every Work

 Need for a Facilitating Agency – may be NGO
 Need for outsourced Concurrent Monitoring
 Agency at block level
Evaluation….
 District-wise studies to be conducted or
 commissioned by the State Employment Guarantee
 Council
 Block-wise evaluation studies should be conducted or
 commissioned by the District Programme Coordinator
 SEGC should seek the association of research
 institutions of repute with this process.
 All evaluation agencies should be approved by SEGC

 Need for Annual Evaluation Studies at GP level; As
 GP is the key planning and implementation unit
 Need for District focused Outsourced Evaluation
 agency for about 3 years
Social Audit…
 As a means of continuous public vigilance

 Social Audit viewed in broader sense from
 planning to the implementation, monitoring
 and evaluation

 In practice, it looks at post implementation
 phase

 NGOs facilitate Social Audit
Convergence…
 Convergence of the NREGA funds with funds from other
 sources for the creation of durable assets is permissible

 NREGA funds do not substitute for resources from other sectors
 or schemes

 NREGA fund share intended to create additional employment;
 this will not happen if the employment currently generated by
 other programmes is displaced by the NREGS

 There has been thrust on convergence
 In practice, NREGA funds is considered as programme fund for
 other Departments
Overall Reflection Points….
 Considering guarantee of Unskilled Manual Work in era of
 mechanization as entitlement

 Wage under NREGA being higher than market rate, when it is
 viewed from entitlement perspective; and is likely to distort the
 market (particularly long term agriculture production)

 Implementation of NREGA be target/ supply driven when the Act
 focuses on entitlement and being demand driven

 Possibility of involvement of NGOs as Facilitation Agencies;
 besides facilitating Social Audit

 Focusing on planning and implementation of works that benefit
 the “Beneficiary/Wage Seeking HHs”
Thank you

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NREGA Policy and Programmatic Pointers 110610

  • 1. NREGA 2005 Operational Guidelines 2008 - Policy and Programmatic Pointers Jitesh Panda Vrutti Livelihoods Resource Centre 11 June 2010
  • 2. In Black Font: Extracts from NREGA Operational Guidelines 2008 In Blue Font: Feedback and Suggestions
  • 3. Objective of NREGA…. To enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work
  • 4. Objectives of NREGA… NREGA relates to Entitlement Demand focused but implemented in target driven supply mode Household Focuses on whole HH not specific to Male or Female Unskilled Manual Work Unskilled Wage Earners keen on graduating to take up Skill Work In era of mechanization, it is not logical to do hard unskilled Manual Work
  • 5. Goals of NREGA…. Social Safety Net – A fall back employment source May be working at GP/Area level Employment scenarios vary with HH/Individual NREGA is yet to be HH/Individual focused Influence regular source of employment source In many places, increase in wage rate has led to unavailability of labour for agriculture production Growth Engine for Sustainable Development of Agriculture Economy Assets developed at community level; Benefits land owners Most of the wage seekers have no/little agriculture land
  • 6. Goals of NREGA…. Rights based approach to Empowerment Demand led rights based approach requires time; However, orientation of implementation is on achieving target of wage creation, more so when there is no target under Act Institutional mechanism to facilitate expression of demand not in place Model of Governance – principles of transparency and grassroots democracy Has made a difference at GP level; Need to move further to Village and HH level
  • 7. Salient Features of NREGA… Submit written application for employment Most wage earners are illiterate; Facilitation support generally not available Need to state time and duration for which work is sought Difficult for Wage seekers to predict when their regular work would resume; As wage rate is higher, they take risk and go for maximum opportunity; At times disturbs the regular labor market, local agriculture production
  • 8. Salient Features of NREGA… Minimum days of employment to be fourteen In some cases, during agriculture season, it is difficult to think of minimum 14 days Work to be provided within 5 Kms of village Most wage seekers prefer to work in own or neighboring village Wages to be paid as per Minimum Wage Act 1948 In most cases Minimum Wage is higher than market rate; and thus distort to regular livelihood activities Being Entitlement oriented, demand driven; the wage need to be lower than prevailing market rate
  • 9. Salient Features of NREGA… Equal Wage for Men and Women In practice difficult to execute; when work is undertaken in group and paid on piece rate basis Weekly disbursement of Wage Most Wage Seekers expect wage on daily basis At least 1/3rd of beneficiary need to be women As it is 100 days per HH; Always preference for male to go out for work and then female goes Distinction may be made at HH level
  • 10. Salient Features of NREGA… Wage on piece rate basis Many a times work out to be lower that minimum wage Issues related accurate and timely measurement Work recommended by Gram Sabha; Approved by Zilla Panchyat Limited scope for Individual Work Scope for further decentralization in decision making process Social Audit by Gram Sabha Could be done by Palli Sabha; Need for facilitating Agency
  • 11. Key Stakeholders…. Wage seekers Gram Sabha PRIs, specially the Gram Panchayat Inadequate capacity – institutional and technical Programme Officer at the block level District Programme Coordinator State Government Ministry of Rural Development NGOs not viewed as Key Stakeholder NGOs could facilitate mobilization of demand for NREGA
  • 12. Communication of NREGA… The State Government should draw upan IEC Plan Focus on communication through TV, radios, films, print media Need to be decentralized Possibility of involvement of local NGOs could be explored Besides communication – hand holding facilitation is required; As most job seekers are illiterate
  • 13. Development Plan for NREGA… Covers Assessment of labour demand Identification of works to meet the estimated labour demand Estimated Cost of works and wages Benefits expected in terms of employment generated and physical improvements (water conservation, land productivity) Focus on District Perspective Plan Need linkage with other District Level Plans Need to have Village Perspective Plan with clarity on Individual Job Seeker HH Plan Overall may relate to livelihood promotion perspective/aspiration at different level – Individual, HH, Village, GP, Block and district Thrust may be on individual/HH work and then on higher level
  • 14. Permissible Works under NREGA… Water conservation and water harvesting Drought proofing, including afforestation and tree plantation Irrigation canals, including micro and minor irrigation works Provision of irrigation facility, plantation, horticulture, land development to land owned by households belonging to the SC/ST, or to land of the beneficiaries of land reforms, or to land of the beneficiaries under the Indira Awas Yojana/BPL families Scope related to this may be broadened to include all Job Seekers
  • 15. Permissible Works under NREGA… Renovation of traditional water bodies, including de-silting of tanks; Land development; Flood-control and protection works, including drainage in waterlogged areas; Rural connectivity to provide all-weather access Most of works are community level works benefitting agriculture land owners
  • 16. Monitoring… Gram Sabha will monitor all the works at the village level Vigilance and Monitoring Committee (VMC) from amongst Gram Sabha - for every Work Need for a Facilitating Agency – may be NGO Need for outsourced Concurrent Monitoring Agency at block level
  • 17. Evaluation…. District-wise studies to be conducted or commissioned by the State Employment Guarantee Council Block-wise evaluation studies should be conducted or commissioned by the District Programme Coordinator SEGC should seek the association of research institutions of repute with this process. All evaluation agencies should be approved by SEGC Need for Annual Evaluation Studies at GP level; As GP is the key planning and implementation unit Need for District focused Outsourced Evaluation agency for about 3 years
  • 18. Social Audit… As a means of continuous public vigilance Social Audit viewed in broader sense from planning to the implementation, monitoring and evaluation In practice, it looks at post implementation phase NGOs facilitate Social Audit
  • 19. Convergence… Convergence of the NREGA funds with funds from other sources for the creation of durable assets is permissible NREGA funds do not substitute for resources from other sectors or schemes NREGA fund share intended to create additional employment; this will not happen if the employment currently generated by other programmes is displaced by the NREGS There has been thrust on convergence In practice, NREGA funds is considered as programme fund for other Departments
  • 20. Overall Reflection Points…. Considering guarantee of Unskilled Manual Work in era of mechanization as entitlement Wage under NREGA being higher than market rate, when it is viewed from entitlement perspective; and is likely to distort the market (particularly long term agriculture production) Implementation of NREGA be target/ supply driven when the Act focuses on entitlement and being demand driven Possibility of involvement of NGOs as Facilitation Agencies; besides facilitating Social Audit Focusing on planning and implementation of works that benefit the “Beneficiary/Wage Seeking HHs”