A. What is NREGA?
- NREGA is designed as a safety net to reduce migration by rural poor households in the lean period through A hundred days of guaranteed unskilled manual labour provided when demanded at minimum wage on works focused on water conservation, land development & drought proofing.
- Notification of the National Rural Employment Guarantee Act came in September 2005. It was launched on February 2, 2006.
- NREGA is the flagship programme of the UPA Government that directly touches lives of the poor and promotes inclusive growth.
- The Act aims at enhancing livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
- The ongoing programmes of Sampoorn Grameen Rozgar Yojna & National Food for Work Programme were subsumed within this programme in the 200 of the most backward districts of the country, in which it was introduced in phase -1 .
- In phase-2 it was introduced in 130 additional districts.
- The scheme was extended to 274 rural districts from April 1, 2008 in phase-3.
- NREGA is the first ever law internationally, that guarantees wage employment at an unprecedented scale.
- Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has been a major influence on this project.
What are Objectives of NREGA?
- Augmenting wage employment.
- Strengthening natural resource management through works that address causes of chronic poverty like drought, deforestation and soil erosion and so encourage sustainable development.
- Strengthening grassroots processes of democracy
- Infusing transparency and accountability in governance.
- Strengthening decentralization and deepening processes of democracy by giving a pivotal role to the Panchayati Raj Institutions in planning, monitoring and implementation.
What are the Unique Features of NREGA?
- Time bound employment guarantee and wage payment within 15 days
- Incentive-disincentive structure to the State Governments for providing employment as 90 per cent of the cost for employment provided is borne by the Centre or payment of unemployment allowance at their own cost and emphasis on labor intensive works prohibiting the use of contractors and machinery.
- The Act mandates 33 percent participation for women.
How NREGA is implemented? The following image shows the key processes in the implementation of NREGA.

- Cost sharing : Central Government 3/4th , State Government 1/4th
- Adult members of rural households submit their name, age and address with photo to the Gram Panchayat.
- The Gram panchayat registers households after making enquiry and issues a job card. The job card contains the details of adult member enrolled and his /her photo.
- Registered person can submit an application for work in writing (for at least fourteen days of continuous work) either to panchayat or to Programme Officer.
- The panchayat/programme officer will accept the valid application and issue dated receipt of application, letter providing work will be sent to the applicant and also displayed at panchayat office.
- The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
- If employment under the scheme is not provided within fifteen days of receipt of the application daily unemployment allowance will be paid to the applicant.
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