ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

NREGASubscribe to NREGA

The MGNREGA Crisis

A decade after coming into force, the Mahatma Gandhi National Rural Employment Guarantee Act is suffering from a decline in employment, budget caps, delays in wage payments and rampant violations of workers' entitlements. An examination of the case of Jharkhand points to reasons for this crisis, including the absence of a strong grievance redressal system, weak financial institutions, acute shortage of functionaries and indiscriminate use of technology. However, some initiatives taken by the state government and civil society in the recent past open up new possibilities for improving the programme.

Well Worth the Effort

More than 1,00,000 wells were sanctioned for construction under the Mahatma Gandhi National Rural Employment Guarantee Act in Jharkhand during the last few years. This study evaluates the outcome of this well-construction drive through a survey of nearly 1,000 wells in 24 randomly selected gram panchayats. A majority of sanctioned wells (60% with parapet and 70% without) were completed at the time of the survey. Nearly 95% of completed wells are being utilised for irrigation, leading to a near tripling of agricultural income of those in the command area. The real rate of return from these wells in Jharkhand is estimated to be close to 6%, a respectable figure for any economic investment. However, well construction involves some out-of-pocket expenses and this investment is risky: nearly 12% of the wells were abandoned midway.
Back to Top