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About Nrega

The Mahatma Gandhi National Rural Employment Guarantee Act was implemented by the government of India in the Indian Economy to create job opportunities for the rural people. The MGNREGA guarantees the “right to work” for the Indian people. The act reduces unwanted migration for job search or casual work. The implementation of the scheme in the Indian Economy has increased the number of jobs in the Indian economy over the years.

History of MGNREGA

Prime Minister P.V. Narasimha Rao proposed the MGNREGA in 1991. The MGNREGA was passed in the Parliament and was previously known as NREGA. The NREGA was known as NREGA. Initially, the act was launched with the goal of the generation of employment for agricultural labourers in the period of shortages. In the Indian Economy, the act was implemented for the development of the infrastructure and to ensure food security. The scheme in the Indian economy was associated with the act previously known as the Employment Assurance Scheme. This was merged later on with the Food for Work Programme in the 2000s and came to be known as MGNREGA.

Objectives of MGNREGA

The main objective of MGNREGA in the Indian economy is to provide a guaranteed wage for 100 days of unskilled work in rural areas. The MGNREGA also aims to decrease the migration of unemployed labourers from villages to cities in search of work. The Mahatma Gandhi National Rural Employment Guarantee Act considers proliferating the assets such as ponds, roads, wells, canals. The employment given to the labourers above 18 years within a radius of 5 km from the labourers’ home. The labourer is provided with a job of applying within 15 days and if any problem occurs during the employment, the labourer is paid an unemployment allowance under the Mahatma Gandhi National Rural Employment Guarantee Act. Implementation of Mahatma Gandhi National Rural Employment Guarantee Act The Mahatma Gandhi National Rural Employment Guarantee Act under the programs of Gram Panchayat. The MGNREGA provides economic security as the involvement of intermediaries or contractors is not allowed by the government. The MGNREGA, in the Indian economy, provides financial security to women. Equal payment is given to the people irrespective of gender or castes thus reducing social stigma. The empowerment of women is a major concern in the MGNREGA. Therefore, one-third of the employment is reserved for women members.

Eligibility Criteria

For receiving the benefits of MGNREGA Scheme, the following eligibility criteria is to be met by applicant:
  • Must be a Citizen of India
  • Be at least 18 years of age at the time of application
  • Belongs to a Rural Household
  • Willing to do unskilled work

    Key Facts

    • The Program offers guaranteed employment for 100 days to all those who are willing to work at the minimum wage as fixed by the government.
    • 14 days is the minimum period to apply for work whereas there is no upper limit for the same.
    • The applicant is entitled to receive unemployment allowance in case work is not assigned to him within 15 days.
    • The unemployment allowance is granted as 1/4th of the minimum wage for the initial 30 days and half of it for the following period.
    • The work is preferably provided within the radius of 5 km of the village.
    • In case the work is provided beyond 5 km radius, the person becomes entitled to receive a travel allowance at the rate of 10%.
    • The implementing agencies are also responsible for providing facilities like proper drinking water, safe work environment, medical facilities, ex-gratia payment etc. to the workers.
    • The frequency of payment is preferably on a weekly basis and cannot be delayed more than 15 days from the date when the work was done. If so, the worker has the right to claim delayed-payment compensation.
    • In case of grievances, the redressal is to be within 7 days of the complaint.

      MGNREGA As a Social Protection

      The scheme follows a non-discriminatory policy as it doesn’t hold any particular eligibility rules governing its access. It takes into account all the adult members who belong to rural households and are willing to take up unskilled work and thus aims to promote social inclusivity and benefit the maximum number of people. It includes provision for women, SC/ST and even other vulnerable groups who are in need of opportunities and has come out to be one of the most significant schemes in terms of providing social security by assuring a certain level of income through temporary employment.

      MGNREGA Job Card

      It is a primary document issued by the Gram Panchayat to all the applicants registered under the MGNREGA Scheme. It specifies all the necessary details like name, bank account number, employment record, details of work provided, address of the applicants etc. and acts as an identification proof.

      Application, Registration and Verification Process for Job Card

      Step 1: Filling the application form for registration in the prescribed form covering all the necessary details like –
      • Name, Age and Gender of the applicant
      • Name of the Block
      • Name of Village
      • Name of the Gram Panchayat
      • Whether the applicant is a beneficiary of SC/ST/LT/IAR or not
      • Photograph of the applicant
      • Signature/thumb impression of the applicant
      Step 2: Sending it to the Gram Panchayat/Gram Rozgar Sevak along with the documents like PAN, Voter ID Card, Aadhaar Card, Ration Card etc. and providing basic details like name, age and address of all the adult household members in the family.
      Step 3: Verification process of the details and documents provided by the applicant takes place in the Gram Panchayat.
      Step 4: The Job Card is issued within 15 days of verification if the information given is found to be authentic and in cases when correct information is not given, the application is referred to the Program Officer who conducts the investigation. Based on the investigation, the PO guides the Gram Panchayat to either reject, reprocess or register the applicant.

      Application Process under MGNREGA Scheme

      • Those who are seeking employment are supposed to make either written or oral statements to the concerned authorities in their area.
      • The applicant needs to provide particular details like Job Card Registration Number, date from which he is available and number of days for which he seeks the work.
      • The application is then processed by the Gram Panchayat and the applicants are intimated about the allotment of the work either through a letter or a public notice and SMS facility if the applicant has submitted a mobile number.

      Activities covered under MGNREGA

      As laid down by the Union Rural Development Ministry, the scheme covers an extensive number of activities as listed below-
      • Rural Drinking Water Projects
      • Agricultural and allied activities
      • Rural Sanitation Projects
      • Irrigation and Flood management works
      • Livestock related work
      • Fisheries
      • Construction of Anganwadi Centres, etc.

      Benefits of MGNREGA

      • Promotes infrastructural development by facilitating proper utilisation of otherwise unutilized or under-utilised manpower resources in the rural areas of the country.
      • Minimises wage volatility and gender pay gap in labour.
      • Contributes to economic empowerment of the rural households in the country.
      • Provides for greater level of social inclusivity to rural households which is further enhanced by bringing even women and SC/ST individuals under its scope.

      MGNREGA features and benefits :

      The MGNREGA App has been introduced in order to allow the registered users to check all the progress regarding the work availability, allotment, payment transfers etc. in their area. It keeps them aware by providing all sorts of relevant information along with state-wise list of work details, total payout made by the govt. to each local unit, the work being carried out, all the new schemes and much more.

      Mahatma Gandhi National Rural Employment Guarantee Schemes

      In the Indian economy, the Mahatma Gandhi National Rural Employment Guarantee Schemes is based on the Mahatma Gandhi National Rural Employment Guarantee Act for generating employment. The scheme provides guidelines to ensure transparency at all levels. The scheme successfully generated employment in the Indian economy. MGNREGA allows the Gram Panchayat to control and manage the works of the individuals thereby strengthening the Panchayati Raj. Gram Sabha and Panchayat accept job applications and give job seekers desired jobs and reduce exploitation of workers in the Indian Economy. The MGNREGA issues job cards to job seekers and the government has allocated more funds to employ its active workers. The GOI has also an official website.

      Role of Gram Sabha in MGNREGA

      The Gram Scheme at first identifies the potential job area for work. The work of the Gram Panchayat is monitored by the Gram Sabha. The queries of the workers are addressed by the Gram Sabha.

      Role of Gram Panchayat in MGNREGA

      The job applications under the MGNREGA are received by Gram Panchayat. Every month it holds the Rozgar Diwas at every ward. The task of making an annual report is allocated to the Panchayat in the Indian economy. In addition to that, the task allocation is done by the Gram Panchayat. The workers under MGNREGA are provided with job cards by the Gram Panchayat. The process of verification and registering the houses are done by the Gram Panchayats in the Indian Economy.

      Role of State Governments in MGNREGA

      The state government is responsible for setting up the State Employment Guarantee council and establishing the State Employment Guarantee Fund (SEGF) in the states. It is responsible for making a dedicated employment generation in the Indian Economy through Employment Guarantee Assistant (Gram Rozgar Sahayak). It ensures the smooth execution of the scheme.


      From the above discussion, it can be concluded that MGNREGA in the Indian Economy is one of the important schemes on which the lives of the rural people are dependent. Mahatma Gandhi National Rural Employment Guarantee Act has created a major impact on the lives of the villagers. The scheme creates job opportunities for the male as well as the female members. The government is putting more stress on the scheme so that the youth of the country also get maximum benefit from the Mahatma Gandhi National Rural Employment Guarantee Act.