Ever since its launch on February 2, 2006, the National Rural Employment Guarantee Act,   NREGA  has been playing the role of a catalyst in rural economy. The Act provides for  at least one hundred days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. A quick look at the achievements and consolidation of the program showcases its strength :

§   Maximizing Work Opportunities: Livelihood Security : Under NREGA ,in 2008-09 4.5 crore households were provided employment and 216.01 crore persondays were generated. In FY 2009-10 upto July, 2.53 crore households have been provided work and 87.09 crore persondays have been generated.

§   Inclusive Growth: NREGA has provided employment particularly for marginalized groups. The participation percentages were 55% (SC/ST) in 2008-09 and 53% (SC/ST) upto July, 2009. Women workforce participation has also surpassed the statutory minimum requirement of 33 per cent. In FY 08-09, women participation was 48%, which has increased to 52% upto in 2009-10 (upto July, 09).

• Augmenting household income, savings and investment: Post-NREGA, there has been a revision of minimum wages across the country in last three years, and the average daily wage rate has increased from Rs. 75 to Rs 87 in 2009-10 (upto July, 2009)
• Financial Inclusion: Over 7.33 crore NREGA bank and post office accounts have been opened so far. These accounts have helped bring the rural poor under the organized banking sector. Besides the agencies for wage payment are being separated from implementing agencies through accounts-based wage payment. This will not only infuse integrity in wage payment, but also bring the most vulnerable people in rural India into formal banking and credit system. Workers under NREGA are provided medical and health cover insurance. Innovative experiments in the form of use of smart cards and biometric signatures for wage payment to NREGA workers in remote villages are being supported.
• Regenerating Natural Resources: Under NREGA water and soil conservations, plantation and afforestation has been given priority. Works relating to drought proofing and flood protection are aimed to provide resistance to climate shocks and natural disasters. Thus, NREGA can actually be seen moving towards its objective of food and livelihood security and long term sustainable development through ecological regeneration. In 2008-09, 27.20 lakhs works were undertaken, of which 46% constituted water conservation. During the current year upto July-09, 21.76 lakhs works have been undertaken, of which 51% relate to water conservation.

• Drought mitigation: NREGA has the potential to diminish the adverse impact of drought by placing purchasing power in the hands of the peoples. Advisories were issued to all 11 drought affected states to ensure that adequate funds and shelf of project have been made available to the Districts.

• ICT as a growth trigger for rural development: NREGA has used technology effectively for inclusion. Web enabled Management Information System (MIS) (www.nrega.nic.in), one of the largest data base of rural households, makes transparency intrinsic to NREGA by placing all critical parameters such as wage payments, number of days of employment provided and works under execution online for easy public access. 2.04 crore Muster Rolls and 7.88 crore Job Cards have been uploaded so far.

           NREGA has also encouraged the transfer of local solutions and best practices through the online Knowledge Network. Currently District Program Coordinators, PRI functionaries, professional institutions are members of this network.  The network also links up with Civil Society Organizations. Initial experiments in the use of smart cards for wage payment to NREGA workers in remote villages are being supported. With these initiatives that help in formation of social and physical capital, establishing ecological synergies, strengthening democratic governance projects, enhancing livelihood opportunities, NREGA is poised to progress from a wage employment to sustainable development program.

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           AKT/ST/