The National Rural Employment Guarantee Act was enacted in September 2005. The National Rural Employment Guarantee Scheme was launched on 02.02.2006 and was initially implemented in six districts, viz., Cuddalore, Dindigul, Nagapattinam, Sivagangai, Tiruvannamalai and Villupuram from 02.02.2006 onwards and in four more districts viz. Thanjavur, Tiruvarur, Tirunelveli and Karur from 01.04.2007 onwards. From 01.04.2008 onwards, the scheme was extended to the remaining twenty districts of the State which are; 1. Ariyalur, 2. Dharmapuri, 3. Perambalur, 4. Pudukottai, 5. Ramanathapuram, 6. Namakkal, 7. Vellore, 8. Thoothu kudi, 9. Virudhunar 10. Salem, 11.Erode, 12. Tiruchirapalli, 13. Kancheepuram 14. Theni, 15. Tiruvallur, 16. Madurai, 17. Nilgiris, 18. Kanniyakumari, 19. Coimbatore and 20. Krishnagiri and 21. Tiruppur.


2.3.1 Objectives of the Scheme

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) guarantees 100 days of employment in a financial year to any rural household whose adult members are willing to do unskilled manual work. This Act is an important step towards the realization of the right to work. It is also expected to enhance people’s livelihoods on a sustained basis, by developing the economic and social infrastructure in rural areas. The Village Panchayat will issue job cards to every registered individual. Payment of the statutory minimum wage and equal wages for men and women are the notable features of the scheme.
Mahatma Gandhi National Rural Employment Guarantee Scheme - TN under Mahatma Gandhi National Rural Employment Guarantee Act was formulated in G.O M.S No. 89, RD & PR (CGS1) dt 2.8.2006 and published in Tamil Nadu Governement Gazette Extraordinary No.181 dt 2.8.2006.

2.3.2 Funding Pattern

The cost of the scheme is shared between the Centre and the State in the ratio of 90:10. The Central Government will bear the following costs:

a) The entire cost of wages for unskilled manual workers.

b)75 percent of the cost of material and wages for skilled and semi-skilled workers.

c) Administrative expenses, which will include, inter alia, the salary and allowances of Programme Officers and their support staff and work site facilities.

d) Administrative expenses of the Central Employment guarantee Council.

The State Government will bear the following costs:

a) 25 percent of the cost of material and wages for skilled and semi-skilled workers.

b) Unemployment allowance payable in case the State Government cannot provide wage employment within 15 days of application.

c) Administrative expenses of the State Employment Guarantee Council.

2.3.3 Priority of works

Taking into account the field conditions in Tamil Nadu, the works are being taken up in Tamil Nadu in the following priority:
a) Formation of new ponds.
b) Renovation of existing Ponds, Kuttais, Kulams, Ooranies, Temple tanks etc.
c) Desilting of channels.
d) Desilting and strengthening of bunds of irrigation tanks.
e) Formation of new roads.
f) Other water conservation/soil conservation measures/flood protection measures.

2.3.4 Special steps taken to ensure successful implementation of NREGS

On assumption of office in the month of May 2006, this Government noticed that the scheme had not taken off properly. This was evident from the fact that the expenditure made up to 31.03.2006 was only Rs. 3 crores and that works had been taken up only in 924 Village Panchayats out of a total of 3,830 Village Panchayats in the six Districts.

This Government was quick to identify the issues and bottlenecks that were responsible for the poor progress in the implementation of the programme and came out with a series of initiatives to address those issues and to remove the implementation bottlenecks.

As a result of the concerted efforts taken by this Government, a sum of Rs.5,241.21 crores has been utilized and over 69.250 crores man days of employment have been generated up to 31.01.2011. About 82% of the work force comprises women and 56% are Scheduled Castes. A notable feature of the scheme is that it has had a buoyant effect on rural wages.

District-wise progress from the inception  of  02.02.2006 to 31.01.2011 is as follows:

Table 2.3.1
Mahatma Gandhi National Rural Employment Guarantee Scheme – Tamil Nadu
Financial & Physical Progress (upto 31.03.2011)

Sl. No.	District	Cumulative Expenditure (Rs. in crores)	Mandays Generated (in crores)	No.of works Completed
PHASE I
1	Cuddaore	435.180	5.000	6825
2	Villupuram	689.280	10.000	9674
3	Tiruvannamalai	439.250	5.700	9591
4	Nagapattinam	278.830	3.700	3556
5	Sivagangai	263.650	3.600	2604
6	Dindigul	295.550	3.300	6288
PHASE II
7	Thanjavur	111.230	1.100	2316
8	Tirunelveli	197.690	2.500	3355
9	Tiruvarur	148.380	17.200	1708
10	Karur	67.570	0.900	929
PHASE III
11	Kancheepuram	236.280	3.200	3322
12	Thiruvallur	194.810	2.100	2098
13	Vellore	242.010	3.100	2760
14	Salem	212.510	2.700	1630
15	Namakkal	86.130	1.000	675
16	Dharmapuri	92.170	1.100	1222
17	Krishnagiri	125.850	1.600	904
18	Erode	88.200	0.900	1749
19	Coimbatore	113.610	105.500	1132
20	The Nilgiris	8.220	0.100	147
21	Tiruchy	165.230	2.200	2352
22	Perambalur	48.920	0.600	855
23	Ariyalur	90.990	1.900	1994
24	Pudukottai	197.210	2.800	4029
25	Madurai	167.310	2.400	1391
26	Theni	44.550	0.600	782
27	Ramnad	146.360	2.000	1499
28	Virudhunagar	136.450	1.700	2698
29	Thoothukudi	93.090	1.300	1607
30	Kanniyakumari	33.820	0.300	398
31	Tiruppur	102.670	1.000	2310
Total		5553.000	191.100	82400

The following special steps were initiated to streamline and expedite the implementation of the scheme:

1. 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.

2. 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.

3. 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.

4. Since  the scheme requires intensive touring, the Government have 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.

5. Makkal Nala Paniyalars (MNPs) have also been made responsible for the implementation of the scheme at the field level.

6. Additional ministerial, technical and computer staff have 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.

7. 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.
8. 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 minimised.

9. 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.

10. 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.

11. 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.

12. 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,  2nd 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.

13. A Toll free helpline “1299” has been established in all DRDAs to redress the grievances of NREGS workers.