MGNREGS in Tamil Nadu

5.1. MGNREG Scheme in Tamil Nadu Chapter V MGNREGS in Tamil Nadu Mahatma Gandhi national Rural Employment Guarantee Scheme in Tamilnadu under MGNREGA was formulated in G.O. M.S No.89.RD&PR(CGS1) dated 2.8.2006 and published in the Tamil Nadu Government Gazette Extraordinary No.181 dated 2.8.2006. The Phase I of NREG scheme was introduced in 6 districts in Tamil Nadu viz., Cuddalore, Villupuram, Thiruvannamalai, Nagappattinam, Dindigul and Sivagangai. It was extended to 4 more districts: Thanjavur, Tiruvarur, Karur and Tirunelveli in Phase II (2007) and from April 2008, it was extended to cover remaining districts in Phase III (Table 5.1). Table 5.1: Districts Covered under NREGS in Different Phases in Tamil Nadu Phase I Districts Districts added in Districts added in Phase III Phase II 1. Cuddalore 2. Dindigul 3. Nagapattinam 4. Sivagangai 5. Thiruvannamalai 6. Villupuram 1. Karur 2. Thanjavur 3. Thirunelveli 4. Thiruvarur 1. Ariyalur 2. Perembalur 3. Coimbatore 4. Tharmapuri 5. Erode 6. Kanchipuram 7. Kanniyakumari 8. Krishnagiri 9. Madurai 10. The Nilgiris 11. Namakkal 12. Pudukkottai 13. Ramanathapuram 14. Selam 15. Theni 16. Thiruvallur 17. Tuticorin 18. Thiruchirapalli 19. Vellore 20. Virudhunagar Source: Government of Tamil Nadu (2009), Policy Note, 2009-10, Rural Development and Panchayat Raj Department. 112

Although the Rural Development and Panchayat Raj Department is the overall in charge of the scheme, Village Panchayats are exclusively implementing the scheme. They issue job cards to the registered individuals. Makkal Nala Paniyalarkals (MNPs) are responsible for implementing the scheme at the field level. A State NREGA cell ensures the quality, the efficiency and the transparency in implementing the scheme. A 25-member Tamil Nadu State Employment Guarantee Council monitors and reviews the implementation of the scheme. Each block officer gets 3 computers and a printer. Web based monitoring software is used to monitor the day-to-day functioning of the scheme in all districts. The centre and the state share the cost at the ratio of 9:1. Specifically, the centre bears: (i) wage costs for unskilled manual workers, (ii) 75 percent of the material costs and wages for skilled and semi-skilled workers; and (iii) administrative expenses including the salary and allowances of Programme Officers and their support staff, work site facilities and the State NREGA Cell and Central Employment Guarantee Council. The State Government bears (i) 25 percent of the material costs and wages for skilled and semi-skilled workers; (ii) unemployment allowances, payable if employment is not provided within 15 days of application; and (iii) administrative expenses of the State Employment Guarantee Council. The state gives priority to the following works: (i) formation of new ponds, (ii) renovation of existing ponds, kuttais, kulams, ooranies, temple tanks etc., (iii) desilting of channels, (iv) desilting and strengthening of bunds of irrigation tanks, (v) formation of new roads, and (vi) other water conservation/soil conservation measures/flood protection measures. To prevent the entry of contractors and ensure sustainable employment to large number of workers, it takes up only labor intensive jobs with value not less than Rs. 3 lakh. 113

This scheme pays the statutory minimum wage (of Rs. 100) to both men and women. Payments to the workers are made on a weekly basis on designated days. To ensure greater transparency, wages are disbursed in the presence of at least 4 members of the committee, consisting of president of village panchayat, vice-president of village panchayat, and ward members. Savings bank accounts have been opened for all NREGS workers so that wages are directly deposited in to their accounts if they are unavailable at the time of payment. 5.2. Salient Features of the MGNREG Scheme 94 a) Provision of 100 days of guaranteed wage employment for all registered households of the Village Panchayat. b) The Central Government bears 100% wage cost of unskilled manual labour and 75% of the material cost including wages of skilled and semi-skilled workers. c) No contractors or machineries are allowed. d) The wage and material component ratio has to be maintained at 60:40. In Tamil Nadu, 100% labour intensive works alone are taken up under MGNREGS. e) As per the guidelines, the shelf of projects for a Village should be recommended by the Grama Sabha and 50% of the works should be allotted to Village Panchayats for execution. In case of Tamil Nadu, only the Village Panchayats execute the works. f) Adult members of rural households willing to do unskilled manual work may register in writing or orally, with the Village Panchayat. g) The Village Panchayat will issue a job card, bearing the photo and register number, free of cost. h) Job card is issued within 15 days of application / oral request. 94 Berman, Peter and Rajeev Ahuja (2008), Government Health Spending in India, Economic & Political Weekly, Vol. 43, No. 26 and 27, pp. 209-216. 114

i) Job card holders may apply for employment in writing. In such cases, the Village Panchayat will issue a dated receipt which will stand as a guarantee to provide employment within 15 days. j) The worksite is ordinarily within a radius of 5 kms of the Village Panchayat and if the distance exceeds 5 kms, additional wage of 10% of existing wage rate is payable to meet the additional transportation and living expenses. k) The wages are paid according to the Minimum Wages Act 1948, for agricultural labourers in the State. l) Wages are equal to both men and women. m) Disbursement of wages is normally done on weekly basis and should be paid within 15 days. n) One third of the beneficiaries should be women. o) The wage notified by GoI for per person to a day is Rs.119/- till 2011-12. GOI has increased and notified the wage as Rs.132/- for the year 2012-13. The notified wage rate for 2013-14 is Rs.148/-. p) Work site facilities such as drinking water, first aid kit, shade, etc., are provided. q) Grama Sabha conducts the social audit in respect of MGNREGS through Village Social Auditors. r) Grievance redressal mechanism is in place to ensure quick response and a Toll free Help line (1299) has also been provided. s) All accounts and records of the Scheme are available for public scrutiny. 115

t) Under Section 12 of the MGNREG Act, Government of Tamil Nadu has constituted State Employment Guarantee Council to advise, evaluate and monitor the implementation of the scheme. 5.3. Financial Performance of NREG Scheme in Tamil Nadu In 2005-06, the actual expenditure incurred for the scheme (Rs. 3 crore) was only about 4 percent of the total fund released for the scheme (Rs. 65.72 crore by the centre and Rs. 7.31 crore by the state). The main reason for low realization of the fund was that the daily wages paid to unskilled workers (as per the Public Works Department norms) was about Rs. 40-50 and therefore the response was low 95. Then, the Government issued an order for a separate rural schedule of rate so as to enable the workers to get the statutory minimum wages. As a result, from next year onwards the expenditure has been rising continuously. In 2009-10, the expenditure increased to Rs. 1,676 crore (Table 5.2). Table 5.2: Funds Released and Expenditures Incurred for NREGS in Tamil Nadu (Rs. crore) Sl. No Years Fund from Centre Fund from State Govt Total Fund Released Actual Expenditures Incurred 1 2005-06 65.72 7.31 73.03 3.00 2 2006-07 170.89 18.08 188.97 151.65 3 2007-08 516.29 57.29 573.58 517.84 4 2008-09 1401.26 191.98 1593.24 1005.50 5 2009-10 1371.20 231.28 1602.47 1676.37 6 2010-11 775.09 187.50 962.59 1526.96 Source: Rural Development and Panchayati Raj Department (2010), Achievements of Rural Development and Panchayati Raj Department, Government of Tamilnadu (May 2006- September 2010). 95 CAG (2009-10), Union Audit Reports, Union Government (Civil), Performance Audit-Report No. 8 of 2009-10, Comptroller and Auditor General of India, Government of India, (http://www.cag.gov.in/html/reports/civil/2009_8_pa/contents.htm). 116

Table 5.3 shows the district wise cumulative expenditures incurred up to March 2011. Over 191 crore man days of employment have been generated up to March 2011. Table 5.3: NREGS in Tamil Nadu: District Wise Financial and Physical Progress Sl. No Districts Cumulative Expenditure (Rs. Crore) Man Days Generated (Crore) No. of Works Completed PHASE - I 1 Cuddalore 435.18 5.0 9825 2 Villupuram 689.28 10.0 9674 3 Thiruvannamalai 439.25 5.7 9591 4 Nagapattinam 278.83 3.7 3556 5 Sivagangai 263.65 3.6 2604 6 Dindigul 295.55 3.3 9288 PHASE - II 7 Thanjavur 111.23 1.1 2316 8 Thirunelveli 197.69 2.5 3355 9 Thiruvarur 148.38 17.2 1708 10 Karur 65.57 0.9 929 PHASE - III 11 Kancheepuram 236.28 3.2 3322 12 Thiruvallur 194.81 2.1 2098 13 Vellore 242.01 3.1 2760 14 Salem 212.51 2.7 1630 15 Namakkal 86.13 1.0 675 16 Dharmapuri 92.17 1.1 1222 17 Krishnagiri 125.85 1.6 904 18 Erode 88.2 0.9 1749 19 Coimbatore 113.61 105.5 1132 20 The Nilgiris 8.22 0.1 147 21 Tiruchy 165.23 202 2352 22 Perambalur 48.92 0.6 855 23 Ariyalur 90.99 1.9 1994 24 Pudukottai 197.21 2.8 4029 25 Madurai 167.31 2.4 1391 26 Theni 44.55 0.6 782 27 Ramanathapuram 146.36 2.0 1499 28 Virudhunagar 136.45 1.7 2698 29 Thoothukudi 93.9 1.3 1607 30 Kanyakumari 33.82 0.3 398 31 Tiruppur 102.67 1.0 2310 Tamil Nadu 5551.81 390.9 88400 Source: http://www.tnrd.gov.in/schemes/nrega.html. 117

Tamil Nadu excelled in the performance of MGNREGS at National level as the first in the country in Projected Expenditure with an expenditure of Rs.3661 crore, as on 13.03.2013. It stands on the first place in the country with 33% Work Completion Rate during 2012-13. The state of Tamil Nadu occupies the second place in the country in women participation rate (74%). It is one among three states in India to exceed the projected mandays target. The state has exceeded the projected man-days target of 38.91 crore with the achievement of 38.99 crore man-days as on 13.03.2013. Tamil Nadu is one among four States in India to exceed the National Average in provision of employment per family. The average number of man-days provided with employment per family is 49 as against the National Average of 39. 96 5.4. Physical Performance In 2010-11, job cards were issued to 7.83 million households (Table 5.4). Top five districts in terms of the number of households receiving job cards are: Villupuram (7.2 lakh), Tiruvannamalai (4.6 lakh), Cuddalore (4.3 lakh), Vellore (4.2 lakh) and Tiruvallur (3.3 lakh). The bottom five districts are: Nilgiris (0.4 lakh), Kanyakumari (0.96 lakh), Perambalur (1lakh), Theni (1.2 lakh) and Karur (1.5 lakh). 96 CAG (2008), Audit Report (Commercial), Tamil Nadu for the Year 2007-2008, Comptroller and Auditor General of India. (http://www.cag.gov.in/html/cag_reports/tn/rep_2008/com_cont.htm). 118

Table 5.4: HHs Issued Job Cards in Tamil Nadu Districts: 2008-09 to 2010-11 Sl. No Districts 2008-09 2009-10 2010-11 1 Cuddalore 396084 408257 425991 2 Villupuram 633418 668358 724440 3 Thiruvannamalai 334659 386942 455091 4 Nagapattinam 231727 235047 272833 5 Sivagangai 209850 211593 225844 6 Dindigul 240263 241114 255710 7 Thanjavur 258161 264450 279726 8 Thirunelveli 274453 276330 291016 9 Thiruvarur 194067 194478 196143 10 Karur 134485 135708 144960 11 Kancheepuram 262244 269418 319547 12 Thiruvallur 260142 290327 326873 13 Vellore 331140 342556 416960 14 Salem 277904 283636 321891 15 Namakkal 138076 139976 156765 16 Dharmapuri 179424 195102 236904 17 Krishnagiri 212884 232865 223253 18 Erode 147273 150485 165638 19 Coimbatore 127020 140708 159742 20 The Nilgiris 37138 37998 40724 21 Tiruchy 249433 250346 265243 22 Perambalur 89054 89477 103867 23 Ariyalur 153627 157322 172759 24 Pudukottai 237821 242961 259849 25 Madurai 246412 250944 285375 26 Theni 96336 97809 117625 27 Ramanathapuram 203927 207320 224831 28 Virudhunagar 208389 215855 248450 29 Thoothukudi 174939 178211 207409 30 Kanyakumari 91404 91954 95690 31 Tiruppur 158420 170587 208211 Tamil Nadu 6790174 7058134 7829360 Source:http://164.100.12.7/netnrega/writereaddata/state_out/Empstatusall29_0809.htm and http://164.100.12.7/netnrega/excelview.aspx?lflag=eng&fn=c:\nrega\netnrega\writeread data/citizen_out/demregister_29_1011.html Of 3.35 million rural households demanded for jobs, 3.35 million were provided employment in Tamil Nadu in 2008-09. In 2009-10, 4.37 million households were provided jobs as against the jobs demanded by 4.37 million households. In 2010-11, 5.98 million rural 119

households demanded employment and 5.96 million households were provided employment (Table 2.8). It is noted that in 2010-11 the average person days generated per household declined to 43.8 from 54.7 in 2009-10 (Table 5.5). Table 5.5: Employment Generated under NREG Scheme in Tamil Nadu and India: 2008-09 to 2010-11 No Year No. of HH demanded Job No. of HH provided work Person Days Generated (Lakh) % SC participation % ST participation % women participation Avg. Person-days Per HH HHs availed 100 days generation % TAMIL NADU 1 2008-3345648 3345648 1203.59 60.27 1.74 79.67 35.97 508122 15.19 2009 2 2009-4373257 4373257 2390.75 59.07 2.5 82.91 54.67 760689 17.39 2010 3 2010-5983759 5955792 2623.28 29.15 1.25 76.90 43.84 437396 7.34 2011 INDIA 4 2008-45518907 45115358 21632.86 29.29 25.43 47.88 47.95 6521268 14.45 2009 5 2009-52920154 52585999 28359.59 30.48 20.71 48.10 53.93 7083663 13.47 2010 6 2010-2011 51595314 51424544 21361.77 22.04 17.40 47.20 41.44 3443922 6.68 Source: http://164.100.12.7/netnrega/writereaddata/state_out/empstatusall_1011_.html The top five districts, which provided employment to rural households under NREG Scheme in Tamil Nadu in 2010-11 are: Villupuram (6.1 lakh), Thiruvannamalai (4 lakh), Cuddalore (3.6 lakh), Vellore (2.1 lakh) and Kanchipuram (2.7 lakh). Interestingly Villupuram ranked first in terms of the person days generated (2.44 crore), followed by Thiruvannamalai (1.95 crore) and Vellore (1.69 crore) in 2010-11. 97 Coimbatore ranked first in terms of the low cost per person day generated in 2008-09 (with Rs. 75.56), followed by Nagappattinam (Rs. 79.67) and Thiruvannamalai (Rs. 81.72). In 2009-10, Perambalur ranked first in low cost of generating person days (Rs. 58.96), 97 Das Gupta, Monica (2005), Public Health in India: An Overview, World Bank Research Working Paper 787. (http://wwwwds.worldbank.org/servlet/wdscontentserver/wdsp/ib/2005/12/02/000016406_20051202162921/rendered/pdf/wps3787.pdf). 120

followed by Dharmapuri (Rs. 60.55) and Vellore (Rs. 61.71). However, in 2010-11, Madurai, Thiruvannamalai and Vellore were the top three districts. In 2008-09, 7,659 works were completed and 12,151 were completed in 2009-10. But in 2010-11 (up to December 2010), only 714 works were completed. An inter-state comparison reveals that in terms of fund utilization, Tamil Nadu compares well with all major states (in 2010-11). But in 2009-10, it compared poorly with other major states except Maharashtra, Madhya Pradesh, Rajasthan and Punjab. It is noticed from Table 5.6 that in 2008-09 and 2009-10, fund utilization ratio in Tamil Nadu was lower than the all India average figure. Sl. No Table.5.6. Types of Works Undertaken under MGNREGS 2008-09 to 2010-11 Type of Details 2008-09 2009-10 2010-11 Works Nos. Expenditure Nos. Expenditure Nos. Expnt Nos. Expnt Nos. Expnt Completed 1525 4452 2878 9980 187 450 Ongoing 4103 7857 6684 17893 24315 32945 Completed 46 138 7 30 16 40 Ongoing 121 184 103 942 557 1177 1 Rural Connectivity 2 Flood Control and Protection 3 Water Conservation and Water Harvesting 4 Micro Irrigation Works 5 Renovation of Traditional Water bodies 6 Land Development and Others Completed 1267 2711 1393 5402 128 404 Ongoing 2751 8192 4030 14987 17864 35898 Completed 1430 4454 2242 7155 56 256 Ongoing 4326 1790 4413 12377 12424 21506 Completed 3387 9892 5627 19090 319 944 Ongoing 10336 22143 14602 40551 39911 85945 Completed 4 14 4 12 8 31 Ongoing 9 6 22 33 226 230 TOTAL Completed 7659 21661 12151 41668 714 2126 Ongoing 21646 50172 29854 86784 95297 177702 Source: http://nrega.nic.in/netnrega/mpr_ht/mprphyrep.aspx?state_code=29&fin=2009-2010. 121

The average cost per person day generated under NREG scheme in Tamil Nadu was Rs. 73.67 (the corresponding all India figure was Rs. 133.66) in 2009-10. But it increased to Rs. 83.63 (against the all India figure of Rs. 151.72) in 2010-11. From Table 2.10, it is observed that the average cost per man day generated exceeded the state average cost in 18 districts in 2008-09, in 13 districts in 2009-10 and in 18 districts in 2010-11. It is interesting to note that Tamil Nadu ranks first among the major states in terms of the low cost per man day generated in all three years (Table 5.6). Thus, evidences indicate that Tamil Nadu is one of the leading states in the country in implementing NREG scheme and three districts: Cuddalore, Dindigul and Sivagangai received the national awards for excellence under NREGS in February 2009. Villupuram and Nagapattinam also won the national awards in February 2010. The Supreme Court also commented on how the scheme has been implemented in Tamil Nadu and exhorted other states to follow the Tamil Nadu model (Government of Tamil Nadu, 2009). Increasing livelihood opportunities in rural areas is an important target in the Plan is to provide employment to 30 percent of household registered under the Rural Employment Guarantee Scheme. The thesis analysis on the functioning of MGNREGS, a flagship programmes in Madurai district as well as Tamil Nadu suggests that Tamil Nadu is well on track in meeting most of the 11 th Plan targets relating to rural development. Under NREG scheme, jobs are provided to 76 percent of households having job cards against the target of covering 30 percent of registered households. An interstate comparison reveals that in terms of fund utilization Tamil Nadu compares well with all major states (in 2010-11). Still more than 300 habitations with population above 500 are unconnected with link roads. But in 2009-10, it compared poorly 122

with other major states except Maharashtra, Madhya Pradesh, Punjab and Rajasthan. In both 2008-09 and 2009-10, the fund utilization ratio in Tamil Nadu was lower than the all India average. 5.5. Recent performances of MGNREGS in Tamil Nadu Tamil Nadu is one of the leading states in the country in implementing this scheme. Cuddalore, Dindigul and Sivagangai districts received the national awards for excellence under National Rural Employment Guarantee scheme in 2009. Villupuram and Nagapattinam districts too won the awards in 2010. So far the centre released Rs. 4,300 crore to the state of Tamil Nadu under this scheme. Tamil Nadu incurred the expenditure (cumulative) of Rs.5,553. crore. An inter-state comparison reveals that in terms of fund utilization Tamil Nadu compares well with all major states in 2010-11. But in 2008-09 and 2009-10, the fund utilization ratio in Tamil Nadu was lower than the all India average. Despite the fact that Tamil Nadu ranks first in terms of the low cost per man day generated in last three years, the average cost per man day generated exceeded the state average cost in 18 districts in 2008-09, in 13 districts in 2009-10 and in 18 districts in 2010-11. Further efforts may reduce the cost in those districts. As on May 2011, although job cards were issued to 78.3 lakh households in the state, 59.56 lakh were given jobs under the scheme. That is, jobs were provided to 76 percent of the household having the job cards (against the target of 30 percent). Till December 2011, although 1.673 lakh works were under taken in Tamil Nadu under the NREG scheme, only 20,524 were completed (i.e. 12.3 percent of them were completed). Of the completed works, the works relating to renovation of traditional water bodies accounted for 45.5 percent and jobs relating to rural connectivity account for 22.4 percent. One of the objectives is to develop the economic and social 123

infrastructure in rural areas. Interestingly, Tamil Nadu undertakes works with value not less than Rs. 3 lakh. However, the data on creation of infrastructure under this scheme is not available. 5.6. Initiation to streamline and expedite the implementation of the MGNREG Scheme in Tamil Nadu The minimum wage under NREGS has been raised from Rs.80/- to Rs.100/- vide G.O.No.146, Rural Development and Panchayat Raj (CGS-1) Department, with effect from 01.01.2010. Every year a separate Rural Schedule of Rates is approved exclusively for this scheme to remove the major hurdle in getting the statutory minimum wage for eight hours of prescribed work. For 2009-10, the RSR have been issued by allowing 100% increase to the works other than single clearance and 150% increase to the single clearance works order and above the PWD Schedule of Rates. A minimum of 30% registrations has been insisted upon in each Village Panchayat. The average percentage of registration in the Phase-I & II districts is over 70%. In the Phase-III districts, the average registration has crossed 75%, which indicates that there is widespread awareness about the scheme. The existing formats of Job Cards and Nominal Muster Rolls have been revised to make these documents more transparent informative and difficult to manipulate in the process of scheme implementation. Since the scheme requires intensive touring, the Government has sanctioned additional fuel of 50 litres per month for each of the vehicles in the Panchayat Unions. The Government have also sanctioned additional fuel of 75 litres for the vehicles of the Assistant Executive Engineers (RD) vide G.O.Ms.No.27 RD&PR (CGS-I) Department, dated 20.02.2008. 124

Makkal Nala Paniyalars (MNPs) have also been made responsible for the implementation of the scheme at the field level. Additional ministerial, technical and computer staff has been sanctioned at District, Division, Block and Village levels in order to ensure proper implementation and close supervision of the scheme. Due to the extension of this scheme to the remaining 20 districts of Tamil Nadu with effect from 1.4.2008, the Government has sanctioned additional administrative staff, additional fuel for block vehicles for 20 Phase - III National Rural Employment Guarantee Scheme districts vide G.O. Ms. No. 27, RD & PR (CGS-1) Department, dated 20.2.2008,G.O.Ms.No.84, RD & PR (CGS-1) Department, dated 4.8.2009, G.O.Ms.No.69, RD & PR (CGS-1) Department, dated 4.6.2010. Additional fuel of Assistant Executive Engineers 75 litres, Both Block Development Officers 50 litres each has been sanctioned vide G.O.(D)No.26, RD & PR (CGS.1) Department, dt.19.1.2010. Only 100% labour intensive works have been taken up in order to prevent the entry of contractors who are strictly banned as per the NREG Act. 98 Only bigger works not less than Rs. 3 lakhs in value have been taken up in order to ensure that i) adequate numbers of workers get sustained employment at a work site for at least 30 days, ii) the assets created are visible, durable and genuinely beneficial to the community, iii) resources are not wasted by being spread too thinly, iv) the works are monitored closely and leakages are minimized. 98 Ghosh, Buddhadeb and Prabir De (2000), Linkage between Infrastructure and Income among Indian States: A Tale of Rising Disparity since Independence, Indian Journal of Agricultural of Applied Economics, Vol. 8, part IV, pp. 391-431. 125

In order to ensure greater transparency and fair play, it has been ordered to disburse the wages to the workers in the presence of at least four members of the following committee: a. President of the Village Panchayat. b. Vice President of the Village Panchayat c. Ward Member of the area where the work is executed d. An SC/ST Ward Member, if none of the persons in Sl. Nos. 1, 2 and 3 belongs to SC/ST Community. e. Two animators of graded Self Help Groups. f. A representative of the Panchayat Level federation. A 25-member Tamil Nadu State Employment Guarantee council has been constituted vide the G.O Ms No. 117, RD & PR (CGS-I) Department, dated 14.09.2006 to monitor and review the implementation of the scheme. Subsequently, the non-official members of the council have been changed as and when necessary. A G.O. vide the G.O.Ms No.51, RD&PR (CGS-I) Department, dated 18.06.2009 has been issued communicating the members of the present State Employment Guarantee Scheme. The first, second, third, fourth, fifth and sixth meetings of this council were held on 25.11.2006, 11.06.2007, 03.03.2008, 08.08.2008 16.9.2009, and 09.04.2010 respectively. In order to ensure efficient monitoring of the scheme through Management Information System (MIS), three computers and a printer have been sanctioned to each of the 385 block offices of Phase-I, II and III NREGS districts. In 2008-09, computers, printers and computer room facilities have also been provided for the block offices of all districts, besides an exclusive telephone and a fax machine. 126

In order to ensure a total transparency in the implementation of the Scheme, the Government ordered for the conduct of Social Audit of the Scheme by the Social Audit team exclusively established including 6 MGNREGS workers representing various sections of the society in all Village Panchayats of NREGS districts along with the conduct of Grama Sabha meeting on 15th August, 1st May, 2 nd October and 26th January in 2011-12. Likewise, the conduct of Social Audit of the scheme will be conducted along with Grama Sabha meetings in the year 2008-09 also. 5.7. Awards for MGNREGS Government of India has selected 7 Districts in the country for Best Performing District Award under MGNREGS during 2011-12. Out of the 7 districts, 2 Districts from Tamil Nadu, viz., Thanjavur and Tiruchirappalli have bagged the Awards. Likewise, 10 Village Panchayats from all over the country have been selected for Best Village Panchayat Award under MGNREGS. Kadambadi Village Panchayat, Sulur Panchayat Union from Coimbatore District was one among them. 5.8. Permission to take up more than one work in a Village Panchayat Prior to 15.5.2011, only one worksite was permitted in each Village Panchayat at any given time. This has led to the huge assemblage of workers at a single worksite, difficulties in supervising the workers, preventing the workers coming from far off habitations to the worksite and practice of the Rotation of Habitations system which has resulted in the family availing only less number of days of employment on an average as against an entitlement of 100 days. 99 99 Government of India (2011), Guidelines: Central Rural Sanitation Programme Total Sanitation Campaign, Department of Drinking Water Supply, Ministry of Rural Development (http://ddws.gov.in/popups/tsc%20guideline%2010oct11.pdf). 127

In order to provide more employment opportunities to MGNREGS workers, this Government has committed to take up more number of works in a Village Panchayat based on the number of habitations and number of workers regularly attending the MGNREGS works. Hence, the habitations in a Village Panchayat are grouped into clusters in such a way that whenever the work is being executed in a habitation of a particular cluster, all the workers can come to the worksite from the habitations of that particular cluster. Thus, the number of allowed works in a Village Panchayat is equal to the number of clusters. This system was effected from October, 2011 and resulted in drawing more number of workers to the MGNREGS worksite as the worksite is nearer to their habitations, in comparison with the 26.86 crore man-days generated in 2010-11, it has been increased to 33 crore in 2011-12. Likewise mandays generation during 2012-13 is 38.99 crore (upto 13.3.2013). Expenditure per week on payment of wages to the workers has increased from Rs.50 crore to Rs.75 crore during 2011-12 and to Rs.100 crore per week during 2012-13. Travel Distance of the workers to the worksite has been reduced from 5-6 km to 500 metre to 1km and increased in number of families provided with employment over the years. 100 5.9. Special works for Differently Abled In order to implement the Provisions of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 in MGNREGS, the Government of Tamilnadu has ordered for special provisions for the disabled vide G.O.(Ms).No.52 RD&PR (CGS-1) Department dated 25.6.2012. 101 As per the Government Order, the special activities for disabled persons under MGNREGS are: 100 Government of India, (NP-NSPE) Annual Work Plan and Budgets: Data sheets 2008-09. 101 Government of Tamil Nadu (2009), Policy Note: Rural Development and Panchayat Raj Department (2009-10) (http://www.tn.gov.in/policynotes/default.htm). 128

a. Waterman/water woman at the worksite, who can distribute water to the workers. b. Caretaker to look after the children. c. Assisting the caretaker for every 5 children, one additional assistant can be employed. d. Assisting the worksite facilitator in pre-marking if the number of workers is above 100, then 1 disabled person shall be permitted to assist the worksite facilitator. e. Clearing uprooted jungle from the site (only scrubs, light jungle). f. Watering (wetting) the area to be desilted (especially in summers). g. Compacting the earth deposited on bund by using spade, solid rods and earth breaking rods. h. Benching and leveling the bund. i. Sectioning and sloping the bund. 5.10. Social Audit As per rule 4(1) of MGNREGS Audit of Scheme Rules 2011, the State Government shall identify or establish under the Act, an independent organization for the conduct of Social Audit. 20 State Level Resource Persons have undergone Social Audit training at NIRD, Hyderabad from 2.1.2012 to 6.1.2012. Kaniyambadi Block in Vellore District and Koliyanur Block in Villupuram District have been selected as pilot Blocks for conducting Social Audit. 120 Village Level Resource Persons from Vellore and 220 Village Level Resource Persons from Villupuram have been given training from 16.2.2012 to 19.2.2012 for conducting the Social Audit. 102 102 Government of Tamil Nadu (2010), Policy Note: Rural Development and Panchayat Raj Department (2010-11) (http://www.tn.gov.in/policynotes/default.htm). 129

The Social Audit schedule in pilot Blocks have been drawn and Social Audit was conducted in 24 Village Panchayats of Kaniyambadi Block and 44 Village Panchayats of Koliyanur Block from 7.3.2012 to 20.03.2012. The details of findings have been uploaded in the GoI website. 5.10.1. Social Audit Society of Tamil Nadu (SASTA) An independent organization SASTA(Social Audit Society of Tamil Nadu) has been registered under the Tamil Nadu Societies Registration Act. As ordered vide G.O.(Ms).No.64 RD&PR (CGS-1) Department Dt.27.7.2012, the structural pattern of SASTA is given in the table as follows in the table 5.7. Table: 5.7 SASTA Organizational Structure Sl. No Designation No. of Posts 1 Director of Social Audit 1 2 Joint Director 2 3 Social Audit Specialists 1 4 State Team Monitors 4 5 District Resource Persons 44 6 Block Resource Persons 1,235 7 Village Panchayat Resource Persons 62,620 Source: http://www.tnrd.gov.in/schemes/cen_nrega_13.html Director, Joint Director and Assistant Director have been placed. Recruitment of Social Audit Specialist, State Team Monitors, District Resource Persons and Block Resource Persons will be conducted before May 2013. Social Audit Manual preparation is going on. Drafting of Village Panchayat Resource Persons will also be completed by May 2013. The commencement of Social Audit will take place from 2013-14 onwards. 130

5.10.2. Payment of Wages through Banks It has been decided by this Government to dispense with the policy of the practice of disbursing the wages to the workers in cash. Accordingly, the wages to the beneficiaries will be disbursed through the Banks in a phased manner with the following objectives: i. to curtail any scope for malpractices, and ii. to separate the wage disbursement agency from implementing agency. iii. In this regard, following steps have been taken: Bank accounts have been opened for 82 lakh workers under the scheme. Payment of wages to the workers in 385 Village Panchayats at the rate of one Village Panchayat per Panchayat Union started on pilot basis. In Kancheepuram, Thiruvallur, Erode, Tiruppur and Kanniyakumari Districts payment is being made through Banks in all 1744 Village Panchayats covering 6.24 lakh workers. It is planned to implement payment of wages through Banks in the remaining 10,780 Village Panchayats of Tamil Nadu from 01.04.2013. This will cover nearly 31 lakh active workers initially. 5.10.3. Payment of wages through e-fms e-fms is a tool through which the wages will be credited to the individual workers account from a Central/Nodal point, payment of wages have been rolled out in Erode District in 2012-13. During 2013-14, e-fms will be operationalised in all Districts in a phased manner. 131

5.10.4. Appointment of Banking Correspondents Payment of wages is successfully done through Banks only with the systemic arrangement for disbursal of wages by the Banks to the individual beneficiaries/workers. Based on the request of Hon ble Chief Minister, the State Level Bankers Committee (SLBC) has resolved to appoint Banking Correspondents in all 12524 Village Panchayats before 31.03.2013. To have a better disbursal mechanism, SHG members and PLF representatives will be selected and appointed as Banking Correspondents. 5.11. Steps Taken to mitigate Drought Situation Tamil Nadu has been declared as Drought affected vide Tamil Nadu Government Gazette Notification No.45, Revenue Dept., Dated 20.02.2013 to be read with G.O.(Ms).No.48, Revenue(DM-3.1) Dept., dated 13.02.2013. Accordingly, in all the 31 districts which have been drought affected the present entitlement of 100 days under Mahatma Gandhi National Rural Employment Guarantee Scheme has been enhanced to 150 days from 21.2.2013 for the financial year 2012-13. Under the Scheme, 15,000 Farm Ponds at an estimated cost of Rs.181 crore have been taken up in the eight Delta Districts of Thanjavur, Pudukottai, Tiruchirapalli, Karur, Ariyalur, Nagapattinam, Cuddalore and Tiruvarur. Apart from this, works at a cost of Rs.1336 crores to benefit agricultural labourers of the delta regions are taken up. Thus, the aim has been to provide additional employment to 20.24 lakh households of agricultural labourers in the Delta Districts and 3.34 lakh households of 26 other Districts who have completed 100 days. 103 103 Government of Tamil Nadu (2010), Statistical Hand Book of Tamil Nadu 2010, Department of Economics and Statistics (for various other years), (http://www.tn.gov.in/deptst/). 132

For the provision of Employment to the projected households who have completed 100 days and to those households who have not yet completed 100 days, additional works have been commenced in all the Districts. As on 20.03.2013, nearly 9,66,428 workers from 8,50,984 households who have completed 100 days of work have participated in MGNREGS works. As on 20.03.2013, nearly 14,010 farm ponds have been sanctioned and 1,100 no. of works commenced on the field in the eight Delta Districts. After declaration of Drought as on 20.03.2013, nearly 1,575 works have been commenced and completed with an expenditure of Rs.86 Crores. 26,518 works to the tune of Rs.648.64 Crores are ongoing in the field. Thus, totally 28,093 works to the tune of Rs.734.65 Crores have been taken up to mitigate the drought in the Eight Delta Districts. 5.12. Proposed New initiatives The MGNREG Scheme is being implanted with the target for generating 42.85 crore mandays with an approved Labour Budget of Rs.6341.80 crore. The following new initiatives will be done during the implementation in future. Exclusive staff strength for both implementing and monitoring MGNREGS works will be increased at all levels. As a measure to improve the quality of assets, separate State Quality Monitors (SQM) will be placed for ensuring third party quality monitoring. Out of the total state share allocated, Rs.100 crore will be earmarked for stabilization of assets created under MGNREGS. To make Green Cover in rural areas, afforestation activities both in Panchayat/Revenue poramboke lands will be taken up in all Village Panchayats. Special efforts will be taken up for provision of afforestation activities by planting salt tolerant 133

plants in the Village Panchayats along the coastline. Electronic Fund Management System (e-fms) will be rolled out in all 31 Districts of the State in a phased manner. Unemployment Allowance Rules will be notified as per Section 7 of MGNREGA Act. As envisaged in operative guidelines of GOI detailed instructions will be issued with regard to the functioning of worksite supervisor (mate). 5.13. The Organization and Working of MNREGA in study area Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) is an Indian job guarantee scheme to provide employment. It was implemented on February 2, 2006 in 200 backward districts of India. The Act aims at eradication of extreme poverty and at making villages self-sustaining through productive assets creation (such as water tanks and soil conservation works). This is meant to regenerate the rural natural resource base, which in turn would result in sustainable livelihoods for residents were detailed given in the table 5.8. 134

Sl. No Table 5.8. Block-wise Beneficiaries of MGNREGS in Madurai district Name of the Block 2008-09 2009-10 2010-11 No. of Beneficiers Expenditure (Rs. in lakhs) No. of Beneficiers Expenditure (Rs. in lakhs) No. of Beneficiers Expenditure (Rs. in lakhs) 1. Madurai East 113658 69.189 418967 277.828 658734 477.688 2. Madurai West 90323 51.869 484039 302.958 607052 389.629 3. Thirupparankundram 366786 242.599 810552 565.480 884169 649.992 4. Melur 134752 69.637 622267 339.221 711242 488.345 5. Kottampatti 313340 187.484 623742 363.359 793303 525.052 6. Vadipatti 236152 142.347 468688 281.479 485800 320.702 7. Alanganallur 182824 127.363 625821 401.521 738549 468.499 8. Usilampatti 460672 285.217 605829 355.556 884848 633.411 9. Chellampatti 386608 248.636 978033 591.781 1354991 916.855 10. Sedapatti 406634 224.279 887789 542.408 1025873 713.834 11. Thirumangalam 502283 319.676 1022280 697.577 1101495 829.218 12. T.Kallupatti 762925 448.248 1078342 668.524 1024046 701.047 13. Kalligudi 303182 193.430 819064 522.090 831781 631.033 Total 4260139 2609.974 9445413 5909.782 11101883 7745.305 The MGNREG Scheme being the largest employment programme not only in Tamil Nadu state as well as in the country as whole, which has been able to provide livelihood security millions of families across the state since its inception. Never have in such a short period so many lakhs of poor people benefited from the government policy through its institutional mechanism at the state and district level. In the present chapter there is an attempt to trance the genesis of the policy and the institutionalization of the MGNREG scheme to unveil the reasons for its effectiveness in Tamil Nadu and Madurai District as well. The Act puts Panchayati Raj Institutions (the third tier of government in India i.e. the village level) at the helm of affairs - beginning with identifying the eligible households in planning the works to be undertaken. This programme is governed by Operational 135

Guidelines issued by the Ministry of Rural Development, Government of India. These Guidelines emphasize on aspects of planning of works and mechanisms of social audit. Madurai is one of the districts to launch this programme in third phase In Tamil Nadu, it was launched in three phases. In 1 st phase which was launched on February 2, 2006 were covered six districts. In 2 nd phase also which was started during the year 2007-08, four districts were selected and finally in 3 rd phase which was started during the financial year 2008-09 remaining districts were selected. The researcher has analysed the institutional and the way of implementation mechanism of MGNREG programme in TamilNadu state. 136