Guidelines for implementation of MGNR Employment Guarantee Scheme


Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is one of Government of India’s flagship programmes. It aims at providing employment to un-skilled workers while creating durable assets in rural areas. These assets are expected to have a positive impact on the rural economy and on the livelihoods of rural population. This scheme is being implemented successfully in Andhra Pradesh. Since its primary aim is to provide employment, the amount that can be spent on the material component of a project is restricted to 40%. This limit on material component has given rise to situations where the works requiring material component of more than 40% could not be taken up & thereby have not resulted in creation of durable assets. Government of India permits convergence of MGNREGS funds with funds from other sources for creation of durable assets.

In order to ensure that the assets created under the MGNREGS are durable and livelihood resource base of rural poor is permanently strengthened, it is decided to implement the “Scheme for promotion of convergence with MGNREGS for creation of durable assets and sustainable livelihood resources” during the year 2012-13. Under this scheme, the government will provide additional funds required to upgrade the work taken up earlier under MGNREGS into a durable permanent asset. The entire unskilled labour component amounting to 60% of the Project cost and material component upto 40% of the project cost will be funded from MGNREGS. The balance material component required to make the asset permanent and durable will be met from the funds provided under this scheme.

This scheme is applicable to works taken up under MGNREGS for providing all weather rural connectivity, and Minor Irrigation works. An amount of Rs.200 crore to the Panchayati Raj Engineering Department, Rs.100 crore to the R&B Department and Rs.300 crore to the Minor irrigation, I&CAD Department is provided for under the scheme for the year 2012-13. These funds can be utilized for strengthening already taken up works under MGNREGS or supplementing the 40% ceiling under material component under NREGS after exhausting the funds, if any, provided under normal state plan.

The works under the above convergence programme should be selected from the assets created under MGNREGS only. While selecting the works from among assets created by MGNREGS objective criteria should be followed, in such a way that largest public good is considered first.

The works under the scheme will be identified and sanctioned by a Committee of Officers consisting of Spl. Chief Secretary (I), I&CAD Department, Prl. Secretary, R&B Department, Prl. Secretary, P.R. Department and Prl. Secretary, R.D. Department. The Prl. Secretary, RD shall be the Convener of the Committee. The Committee shall meet on a quarterly basis.

ANNEXURE (G.O.Ms.No.303,Finance(WA.I)Deptt,.Date.29.11.2012)

Guidelines for implementation of the “Scheme for promotion of convergence with MGNREGS for creation of durable assets and sustainable livelihood resources”.

1. The scheme will be implemented by Minor Irrigation Department (I&CAD), Panchayati Raj Engineering Department and R&B Department in close coordination with the department of Rural Development.

2. This scheme applies to the above three Departments only to the extent of meeting expenditure on material component over and above the 40% already available under MGNREGS.

3. All the Departments should continue to implement their schemes in convergence with MGNREGS as is being done now for works where material requirement is
40% or less.

4. Works which are done under MGNREGS and material component upto 40% of the value of the work done is utilized under MGNREGS can be taken up under this scheme. For example in a work costing Rs.100 Labour and material components permitted under MGNREGS are Rs.60 and Rs.40 respectively. If in a work the requirement is Rs.30 for labour and Rs.70 for material, Rs.30 for labour and only Rs.20 for material should be met under MGNREGS. Only the remaining Rs.50 required for material component should be drawn under this scheme.

5. Consolidation of works taken up under MGNREGS can be taken up under this scheme. For example rural roads constructed upto gravelling or metalling can be black tapped to make it a permanent asset under this scheme.

6. Funds under the scheme should not be utilised for land acquisition.

7. Identification of works under this scheme should be done in coordination with
Rural Development Department.

8. Minor Irrigation (I&CAD), Panchayat Raj Engineering and R&B Departments should closely associate with the Rural Development Department in such a way that the works of these Departments intend to bring into the fold of this scheme are taken up under MGNREGS and also conform to quality standards resulting in creating a shelf of works for this scheme.

9. A work should be taken up under this scheme only if it can be completed in all respects as per the accepted standards of the Department.

10. Sanction and entrustment of works under this scheme should be done in accordance with the provisions of existing codes and Government Orders.

11. The Departments should complete the process of identification and sanction of works under this scheme by 31.12.2012.

12. There will be a review during the course of the year to assess the progress and utilization of funds provided under this scheme. Funds allotted to Departments will be reallocated among the Departments depending on the utilization of funds.

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