Nabard opposes merging MNREGA with others

Much against the calls within the government to converge the flagship Mahatma Gandhi National Rural Employment Guarantee Scheme with other schemes, a report on the implementation of the Rs 7,600-crore Bundelk-hand special package has noted that such a policy move may be a “hindrance.” It has advocated a course correction to achieve desired results.

NABARD, which carried out an extensive study on implementation of the Bundelkhand special package announced in 2009 for the drought-affected regions in Uttar Pradesh and Madhya Pradesh, has found faults with the government pushing for convergence of the MGNREGA with other programmes.

NABARD in its report has noted that the MGNREGA engages unskilled labour force which caused hindrance to execute projects undertaken as part of the special package. The Rs 7,600 crore package for Bundelkh-and drew from various schemes, which included BRGF (Backward Region Grand Fund, MGNREGA and Rashtriya Krishi Vikas Yojna), besides hosts of other centrally-sponsored schemes.

“While no difficulty has been faced by the implementing authorities in sourcing funds from other sources, funds availability from MNREGA has been a source of concern and projects involving partial funding from it had invariably experienced delays. This is pronounced in dug well projects and revival of water bodies,” the NABARD report stated.

Besides, MGNREGA funds can be utilised for unskilled work while most of the projects (under Bundelkhand special package) required skilled labour for execution, the report said, arguing “in this context, it is suggested that convergence of funds from MGNREGA for the same activity may be avoided”. It may be noted that the NDA government has been vigorously pursuing the policy of convergence of MGNREGA with other programmes in a bid to achieve the objective of creating durable assets in rural areas.

It also stated that MGNREGA funds in UP were to be used in activities like earth works under lining of canal projects, renovation of dug wells and tanks and watershed management activities in forest areas.

“The slow release of funds from MGNREGA to some extent has affected the progress of the activities. In MP the involvement of MGNREGA funds in Forests and Environment sector has affected the progress,” the report said, stressing that “MNREGA funds need not be dovetailed with other programmes of the Central government”.