MNREGA or NREGA: Meaning, Benefits, Eligibility

byDilip PrasadLast Updated: November 7, 2024

The MGNREGA scheme, also known as the Mahatma Gandhi National Rural Employment Guarantee Act, was launched by the Indian Government in 2005 to address unemployment and economic insecurity in rural areas. It guarantees 100 days of paid work annually for rural households, aiming to reduce poverty, wage instability, and gender pay gaps. Under this scheme, a job card is issued to eligible households, enabling them to apply for work. The scheme includes various employment activities like water conservation and rural connectivity, and features that ensure community participation and local decision-making.

Understanding NREGA: A Comprehensive Guide

NREGA or MGNREGA?

  • NREGA stands for the National Rural Employment Guarantee Act, which was initially introduced in 2005 to provide job security and alleviate rural unemployment.
  • In 2006, it was renamed MGNREGA, or the Mahatma Gandhi National Rural Employment Guarantee Act, in honor of Mahatma Gandhi.

The two terms are often used interchangeably, but MGNREGA is the current official name.

Unemployment could be a major cause of stress and anxiety, especially in the youth. Keeping in mind the increasing rate of unemployed population, the Indian Government launched many schemes to aid job seekers in the rural area. 

NREGA (National Rural Employment Guarantee Act) was one of these introduced programs. This scheme came into being in the year 2005. It was launched as MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) in 2006. Read further to know more about the NREGA scheme.

What is MGNREGA?

NREGA was renamed to MGNREGA by Manmohan Singh (then Prime Minister). The full form of MGNREGA is Mahatma Gandhi National Rural Employment Guarantee Act. This scheme was officially launched in September 2005, and on 2nd February 2006. The Act was notified in 200 districts in the first phase, later, several other districts were added. 

This scheme’s responsibility is shared among the centre and the state. The central government covers the wages of unskilled manual labourers and 75 per cent of the material costs. It even included the pay of semi-skilled and skilled labourers. The implementation of the scheme was done in three phases: Phase I, Phase II, and Phase III.

Objectives of the NREGA Scheme 

Apart from giving employment, there are other key objectives of NREGA. Here are a few of them listed:

  • Employment Guarantee: Provides a legal guarantee for wage employment, ensuring work for wage-seekers.
  • Compensation Provisions: Includes legal provisions for allowances and compensation in case of unmet work demands or delays in wage payments.
  • Self-Targeting Mechanism: Utilises a self-targeting approach that encourages the poorest and marginalised groups to seek employment under the scheme.
  • Incentives for States: Incentivizes states to provide employment by covering 100% of unskilled labour costs and 75% of material costs by the central government.
  • Decentralised Implementation: Mandates that at least 50% of projects be implemented by Gram Panchayats, ensuring local decision-making.
  • Community Participation: Empowers Gram Sabhas to make decisions on project selection and prioritisation in open assemblies.
  • Annual Reporting: Requires annual reports on MGNREGA outcomes to be presented to Parliament and State Legislatures for oversight.
  • Integrated Resource Management: Shifts focus from relief to integrated natural resource management and livelihood generation.

NREGA Eligibility Criteria

Here is a list of the eligibility requirements for the NREGA scheme:

  • The applicant should be an Indian citizen;
  • The applicant’s age must be 18 years or above;
  • He or she must be ready to engage in unskilled work;
  • Must be from a rural household.

Features of the NREGA Scheme

NREGA scheme’s prime feature is to provide every rural household with 100 days of paid employment each year. The other features of this employment plan are as follows:

  • Every rural home is eligible to get registered under the NREGA scheme.
  • Both men and women get equivalent wages.
  • Mahatma Gandhi job card is disseminated to every home alongside NREGA registration.
  • The job card is provided within 15 days of receiving the application for job card registration.
  • Those with valid job cards can submit job applications individually or in groups.
  • A minimum of 10 job seekers must apply for a new job for the job to be approved under the scheme.
  • The proposed occupations of the village community cannot be changed by anyone unless they adhere to MGNREGA regulations.
  • Providing amenities such as drinking water, shade, and a crèche at the workplace is also necessary.
  • The salary is paid every two weeks.
  • There is no contractor or equipment allowed.
  • The job seekers will receive an extra 10 percent of the minimum payment if the workplace is far away than 5 kilometres. 

Application Process for MGNREGA Job Card

An MGNREGA job card is a key document issued by the Gram Panchayat to every registered applicant. This document states every essential information such as name, address, employment record, account number, etc. The job card is nothing but identity proof of the applicant. Below we have mentioned the steps to apply for an NREGA card.

Step 1: Fill out the application form, which covers the basic information:

  • The applicant’s name, gender, and age
  • Name of the block
  • Village name
  • Gram Panchayat’s name
  • Applicant’s photo
  • Applicant’s thumb impression and signature
  • Whether the applicant is an SC/ST/LT/IAR beneficiary

Step 2: Send the application to the Gram Panchayat or Gram Rozgar Sevak, along with relevant ID documents – PAN card, Aadhaar card, ration card, or voter ID. The applicant also needs to provide basic information such as the name, age, and address of the adult family members.

Step 3: Next, the documents and details given by the applicant are verified by the Gram Panchayat.

Step 4: If the job card details provided are valid, the card is granted within 15 days following the verification. 

Note: If the details are found to be incorrect, the application is transferred to the Program Officer who carries out the investigation. Based on the investigation, the officer advises the Gram Panchayat whether to reprocess, reject, or register the application.

MGNREGA Scheme Benefits

The benefits of the MGNREGA scheme are plenty. Here we have listed a few of those:

  • Helps in lessening the wage instability and gender pay gap in work. 
  • Contributes to the economic empowerment of rural areas across the nation. 
  • Fosters infrastructure development by properly utilising unused or underused manpower resources within rural regions.
  • Gives increased social inclusivity to rural households that are later improved by including women and SC/STs under its umbrella. 

Activities Covered Under NREGA 

As per the Union Rural Development Ministry, a wide range of activities are covered under the NREGA scheme. These are as follows:

  • Water conservation
  • Rural sanitation
  • Rural drinking water
  • Drought proofing
  • Coastal area work
  • Irrigation canals
  • Fisheries work
  • Agricultural works
  • livestock work
  • Renovation water bodies
  • Construction of bharat nirman 
  • Flood control
  • Rural connectivity

MGNREGA Helpline Number

For any information or to dodge a complaint against MGNREGA scheme, you can visit the official website of MGNREGA 2005 Act Contact list .

NREGA has aided many rural households to get employment and earn a living. The employment initiative played a vital part in reducing poverty and raising rural income. With its implementation, the nation can see a great impact on rural development and employment.

Disclaimer: The purpose of this blog is to simplify complex processes for readers’ understanding. Please note that some information and screenshots provided may become outdated or change over time. However, we strive to keep our blogs updated and relevant to provide accurate and helpful information.

FAQs

What is the concept of NREGA?

The National Rural Employment Guarantee Act (NREGA), now known as MGNREGA, is a landmark legislation in India that guarantees 100 days of wage employment per year to every rural household. It aims to enhance livelihood security, improve rural infrastructure, and empower local communities through a demand-driven, rights-based approach.

What is the difference between MGNREGA and NREGA?

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is the updated name for NREGA (National Rural Employment Guarantee Act), reflecting a focus on rural employment. Both aim to guarantee wage employment, but MGNREGA includes enhanced provisions and accountability measures introduced since its enactment in 2005.

What is the NREGA scheme for?

The NREGA scheme, now MGNREGA, guarantees 100 days of unskilled wage employment per year to every rural household. It aims to enhance livelihood security and reduce rural poverty.

Who launched NREGA?

The National Rural Employment Guarantee Act (NREGA) was launched by the Government of India in 2005.

Who can apply for NREGA?

Any rural household can apply for NREGA, as long as they fulfil the criteria of being a registered household in rural areas. Eligible applicants must request work and can include adult members of the household seeking employment.

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