Date:14/12/2007 URL: http://www.thehindu.com/2007/12/14/stories/2007121457900100.htm

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New guidelines on rural employment guarantee programme raise concern

R.K. Radhakrishnan

Officials fear the directive to revise wages will affect the scheme

Centre wants PWD rates implemented
“Centre going back on earlier instructions”

CHENNAI: The Union Rural Development Department wants the States to revise wages paid under the widely successful rural employment guarantee programme, triggering fears among experts and officials of State governments that the scheme would collapse.

According to the officials, the new directive was prompted by “unreasonably high wages” offered in some States. But in most States, including Tamil Nadu, where a rural schedule of rates for paying wages was introduced, unskilled labourers were being paid a reasonable Rs.80 a day for putting in seven hours of work.

The National Rural Employment Guarantee Act (NREGA) is being implemented in 330 districts and will be extended to the remaining districts from April 1, 2008. A November 21 letter from the Union Rural Development Department to the Secretaries of Rural Development department of State governments states that “with the universalisation of the NREGA in the country, issues pertaining to wage rates become critical…Some States have formulated SoRs [Schedule of Rates] exclusively for the NREGA. The formulation of SoRs exclusive to the NREGA in certain States constitutes an anomaly that needs to be removed…Based on the discussions and decisions taken at the meetings, it is clarified that the SoRs of various executing agencies for similar nature of activities and outputs in the same area must be same. Since SoRs would have horizontal application across departments/agencies, they should be notified by the competent authority of the State.” In effect, the Centre has directed that States to adopt the PWD schedule of rates for NREGA works too.

The officials say that the NREGA operating guidelines prescribe that SoRs needs to be fixed exclusively for the scheme. “In fact the Act says that ‘when wages are directly linked with the quantity of work, the wages shall be paid according to the schedule of rates fixed by the State Government for different types of works every year in consultation with the State council.’ It appears now that the Centre is going back on its earlier instructions,” an official said.

Also, officials point out that NREGS works and PWD works cannot be compared because in the latter machinery is used and emphasis is on creating infrastructure using skilled persons. Under the NREGS, creation of a community asset is only as important as providing employment to a villager. After having paid Rs.80 as daily wages, it would not be possible now to pay less for the same work in the same village.