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1 Training Programme on FINANCING UNDER MGNREGS (18 th – 22 nd August, 2014) READING MATERIAL Programme Director Dr. V. Suresh Babu NATIONAL INSTITUTE OF RURAL DEVELOPMENTAND PANCHAYATI RAJ (Ministry of Rural Development, Govt. of India) Rajendranagar, Hyderabad – 500 030

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1

Training Programme on

FINANCING UNDER MGNREGS (18th – 22nd August, 2014)

READING MATERIAL

Programme Director

Dr. V. Suresh Babu

NATIONAL INSTITUTE OF RURAL DEVELOPMENTAND PANCHAYA TI RAJ (Ministry of Rural Development, Govt. of India)

Rajendranagar, Hyderabad – 500 030

2

CONTENTS

Sl. No. Particulars Page Nos.

1 Fund Flow Management in Karnataka Dr. V. Suresh Babu

3 – 5

2 Financial inclusion through MGNREGS – An Executive Summary of NIRD study in two states (Andhra Pradesh & Rajasthan)

6-16

3 MGNREGS : Process Analysis of Wage Payment – A study in Maharashtra and Rajasthan

17-23

4 NREGAsoft : Strengthening National Rural Employment Guarantee Scheme (NREGS) (http://nrega.nic.in) implementation

24-32

5 Instructions for e-FMS Activity

33-47

6 Frequent Asked Questions (FAQ) on e-FMS under MGNREGA 48-64

7 State Convergence Plan of Karnataka 65-88

8 Latest MoRD circulars on Planning and Labour budget preparation 89-93

3

1.Fund Flow Management in Karnataka

Dr. V. Suresh Babu1 EXECUTIVE SUMMARY

The MGNREGA, by providing legal guarantee to work, marks a paradigm shift from all

earlier and existing wage employment programs because it is an Act and not just a

scheme. MGNREGA is a demand driven scheme and not a supply driven like the earlier

wage employment schemes. The Preamble to the Act provides: “The Act aims to provide

the enhancement of livelihood security of the households in rural areas of the country by

providing at least one hundred days of guaranteed wage employment in every financial

year to every household whose adult members volunteer to do unskilled manual work.”

Intensive Information Education Communication (IEC) material is used to educate the

people of their rights under the Act. If employment is not given within 15 days, daily

unemployment allowance in cash will be paid by the State Govt. The performance of

MGNREGA depends upon a host of factors including funds management. The timely

flow of funds is critical issue in the overall management of MGNREGS.

The arrangements made for allocation of funds is that the Central Government has step up

a National Employment Guarantee Fund from which funds would be provided to State

Governments and Districts. As far as the funding of the programme, the Government of

India bears the total cost of wages and 75 percent of the material cost and it is the state

government, who should bear the rest 25 percent of the material cost. Considering the fact

that most of the expenditure incurred for payment of wages to unskilled workers, the

Central and State Governments share the finance in the ratio of 90:10. The payment of

unemployment is the responsibility of the state government. The GoI releases the funds to

state / districts and then funds will be further transferred to Blocks and GPs. Financial

indicators such as funds available, timeliness and adequacy, timely execution of works (on

demand), timely payment of wages, funds utilized towards wages, materials and

administrative expenses can be used to assess the effectiveness and efficiency of the fund

1 Associate Professor, Centre for Wage Employment & Poverty Alleviation, NIRD, Hyderabad - 500030

4

management. However, in Gram Panchayats / Blocks the works may not be initiated or

employment cannot be provided as per the demand due to lack of sufficient funds.

During the last four years, funds management under MGNREGS has come under severe

criticism as it resulted in several problems which include: under utilization of available

funds at various levels; undue delay in release of state funds; districts with unmet demand

for funds, States having surplus funds; the district fund position on a few occasions at

variance with the block aggregates, delayed wage payments and settlement of material

bills, the failure to post the fund position on the MIS also led to undue delay in release of

funds from the GoI, non- submission of all the necessary documents along with the

utilization certificate while claiming the next installment of funds etc. To overcome these

problems, new initiatives, experiments have been launched.

Different states have adopted different mechanisms for the transfer of funds to various

implementing agencies under MGNREGS in order to meet the employment demand

effectively. The state initiatives should ensure the transparency, accountability and

traceability in fund transfer system. Karnataka has evolved mechanism under which the

funds are transferred directly from the State to Gram Panchayats. Due to this initiative, the

state government can directly assess the fund requirement of each GP in the states and

reduce the time taken for transfer of funds.

In this context, MoRD has suggested to take up a study to assess the new fund flow

management systems adopted in the State of Karnataka. From the study it was revealed

that the system of fund transfer directly to the GP has both its pros and cons. The new

system saves a lot of time in the implementation process but changes are yet to be seen in

the wage payment system. Moreover it was seen that along with direct transfer to GP,

fund was also transferred sometimes directly to block or sometimes from one GP to

another GP. Hence, a uniform system of fund transfer throughout the state was missing.

It was also observed that the new system of fund transfer made the reconciliation of data

very easy but however it was very technical and the GP officials were yet to become fully

5

familiar with the technical aspects of the system. They had become totally dependent on

the data entry operator.

As per the observations in the field, it can be recommended that the state should follow

only one system of fund release. Many officials recommended that it should be directly to

the GP, instead of going for fund release through the ZP or TP. Again, while following the

method of transferring money directly to GP, only one process or criteria should be

adopted. Money should be released only when there is a request from the DPC that the GP

has exhausted 60 per cent of its funds.

Special trainings on IT applications and MIS should be conducted for the GP officials in

order to build their capacities and not make them totally dependent on the data entry

operator.

Release of funds should also not be uniformly done to all the GPs. The size of the GPs

should be taken into account while releasing funds, otherwise parking of funds might take

place. So, funds should be released based on the size of the GP, number of works being

executed and the number of job card holders within that GP.

The changed system of funds flow has altered the roles and responsibilities of the

functionaries involved in the implementation of Mahatma Gandhi MGNREGA. The

workload at state level has increased. To discharge the responsibilities effectively, state

government is appointing personnel at the state level. Whereas, the personnel requirement

has decreased at the District level. Roles and responsibilities have assumed a different

course at Block level. The task of data entry and verification/authentication has to be done

at the Block level. The role of Panchayat has become very vital. Panchayat would be in

direct dealing with the state headquarters.

Though the system of fund transfer directly to the GP is not yet stable and has a few flaws,

the state administration are trying their best to solve these problems at an early stage.

6

2. Financial inclusion through MGNREGS – An Executive Summary of NIRD study in two states – Andhra Pradesh & Rajasthan

EXECUTIVE SUMMARY – Andhra Pradesh

As per National Sample Survey data, a sizeable proportion of the rural households do not have

access to any source of credit. And out of those with access, the main source of credit is informal

agencies such as moneylender. MGNREGA is another intervention by the government to

facilitate financial inclusion of the poor. Accordingly, the states have entered into agreements

with Banks and Post Offices to ensure timely and full payment of wages to MGNREGA workers.

The State of Andhra Pradesh has been one of the pioneering states in initiating institutionalised

interventions. In the sphere of financial inclusion envisaged under MGNREGA, A.P has taken the

lead and entered into MoU with the Department of Posts. The study is undertaken to assess the

effectiveness of the process of financial inclusion and its impact on the selected districts of the

State of Andhra Pradesh. The aspects examined include: institutional arrangements, awareness of

the worker community, problems encountered in the financial inclusion, perception of the

stakeholders, delays in wage payment and impact of the financial inclusion using a variety of data

collection tools. The study was carried out in one developed (Nizamabad) and one backward

(Anantapur) districts (Phase-I) of Andhra Pradesh with good number of NREGS savings bank

accounts. In all, four Mandals, eight Gram Panchayats and 256 sample workers of 2008-09

constitute the sample units.

The Memorandum of Understanding (MoU) between Rural Development Department,

Government of AP and AP circle of Department of Posts (DoP) was reviewed in the light of field

observations. A number of lacunae such as inadequacies in institutional arrangements, absence of

penalty system for delayed payments, problems with money deposited with DoP while submission

of UCs to MoRD and non-acceptance of deposits from workers were documented which need the

attention of the partner institutions. It also reviewed the working of incentive systems and

suggested that one per cent of assured service charge would meet all the costs of DoP besides

providing needed incentives for the staff.

All the MGNREGS workers in AP have individual accounts and out of the 1.22 crore accounts in

2008-09, the share of post office was about 92 per cent. An amount Rs. 2243 crore was disbursed

7

through banks and post offices. On the average, about Rs.1,467 were paid per account through

post offices in 2008-09. An amount of Rs.18.8 crore was kept under suspension at state level

since wages were not paid to some workers who could not open SB account . Each branch post

office was handling about 2140 worker wage accounts (ranging from 300 to 6000 accounts) and

disbursed about Rs.53.3 lakh on an average (ranging from 7.0 lakh to 170 lakh).

Most of the sample workers belonged to OBC & Minorities (54 per cent) followed by SCs & STs

(37 per cent) in the study area. Female participation was high in all the sample GPs. ‘Agriculture

labour’ is the main source of income for most of the sample worker households followed by

‘cultivation’. More than half of the sample households were marginal farmers and ‘landlessness’

was also found among 23 per cent of the worker households.

During 2008-09, on an average, a worker household earned wages amounting to Rs.6148 from

MGNREGS. The wage earnings per household were more in backward Mandals confirming the

responsiveness of the scheme to the needs of backward areas. Due to MGNREGS, about 23 per

cent of households could move out of poverty and the intensity of poverty was also declined.

The Commissionerate of RD at State level and District Water Management Agency (DWMA) at

district level coordinate the meetings with the DoP officials regularly and resolve the problems to

ensure timely payment of wages to workers. However, despite these concerted efforts, delays in

wage disbursements took. The State evolved a payment cycle and accordingly it should take

seven days for wage disbursement from the date of closure of muster roll. However, in Anantapur

it took 23 days, on an average, for payment of wages i.e. a delay of eight days. Maximum delay

was reported in Jukkal Mandal of Nizamabad (31.6 days). The delay took place mainly due to

muster roll verification by village level officer, distant location of branch post office from the

sample villages and delay in handing over of the pay orders along with cheques to sub-post office.

The awareness levels about the procedures for financial inclusion varied considerably and most of

them knew the pre-requisites for opening an account. In fact, the opening of savings bank account

was done in a mission mode. SHGs played a significant role in the dissemination of information

on opening of SB Account and also in mobilisation of workers for opening of accounts. About 43

per cent of workers opened the SB Account at the worksites / villages. Over three-fourths of the

workers had taken assistance of other members of the family or outsiders (GRS or Field Asst.)

8

during SB Account opening process. Half of the workers received the passbooks after 8 to 21

days as against the stipulated time period of three days; largely on account of shortage of

manpower. The average number of accounts per worker household was 2.23; more number of

accounts per household in backward mandals. Six per cent of workers informed that the POSB

passbook was with others i.e. either with BPM or Mate or Field Assistant. Even after opening of

account, a good proportion of the workers were not fully aware of the process. The socio-

economic status and social capital of workers and development of the region had considerable

influence on their awareness levels about the procedures for opening and operating savings bank

accounts.

The SHG members were more aware of account opening procedures due to their frequent

interactions with financial institutions. The wage slip is the basis for workers to know about the

wage amount deposited in their accounts. This instrument should be viewed as the entitlement of

the worker and all states should issue wage slips to the workers without fail.

Significant proportion of workers (68 per cent) are well aware about the requirements for

withdrawal of wages from post offices. Field Assistants usually helped the workers in filling the

withdrawal form. About 89 per cent of workers could operate the account on their own regularly

but most of them sought the help of others for filling up withdrawal form. Significant proportion

of workers (22.7 per cent) were not comfortable with post offices due distant location.

The average number of transactions per worker was 7.1 during 2008-09. Nearly fifty per cent of

workers travelled about 5.2 kms to get the wages. On an average, a worker had to spend about

Rs.11.98 towards travel expenditure and Rs. 12.97 towards living expenses.

Three per cent of sample workers paid small amounts to BPM / FA / Mate for opening of account

in the post offices. This issue was also discussed during social audit process and coordination

meetings.

Focused Group Discussions on less payment by the BPM disclosed that about half of the workers

were aware about the deductions made mostly towards Recurring Deposit (RD) instalment, Rural

Postal Life Insurance (RPLI) instalment. A few workers opined that technology intervention for

payment of wages would reduce the travel time and cost (9.4 per cent).

9

Only 18 per cent of the sample workers were confident enough that they can operate the SB

account on their own. At aggregate level, 69 per cent of workers expressed that they can never

operate SB account on their own as they cannot fill up the withdrawal form; and most of these

workers belonged to SC/ST and OBC & Minorities. This confirms the disadvantages of these

vulnerable sections to make effective use of such (pro-poor) development interventions. Keeping

in view of this, the State government converted the wage slip into withdrawal form to benefit the

disadvantaged section.

Getting duplicate passbook was a cumbersome process and hence many workers (those who lost

the savings passbook) preferred to open new account. Hence, the procedure for getting duplicate

passbook should be simplified by the DoP.

About 49 per cent of sample households had SB accounts either in banks or post offices prior to

MGNREGA. It can be concluded that about 51 per cent of sample households had been linked

with formal financial institutions after implementation of MGNREGS in the sample mandal which

is a major achievement of the programme.

About 60 per cent of sample households who had membership in SHGs have accessed the loan

either from the bank or from the SHG. The savings of each member enhanced from Rs.30 to Rs.50

after MGNREGS implementation.

After MGNREGA implementation, about 23 per cent of sample households initiated Rural Postal

Life Insurance (RPLI) and another 16 per cent of sample households opted for Recurring Deposit

(RD) in the Post Office. For a significant proportion of the sample households (39 per cent), there

was enhancement in the amount of savings after the implementation of MGNREGA.

The dependency on big farmers was reduced and most of the households preferred to take loans

from SHG & MFIs in the post-MGNREGA period. The banks also increased their share of

loans to the sample households. About 66 per cent of the sample households were of the view that

the financial institutions were yet to help them in meeting their credit needs fully.

10

MGNREGA made a significant impact on 9 per cent of sample households as they were no more

dependent on informal financial institutions while about 72 per cent of the sample households

reported reduced dependency.

The regular social audit process reduced the number of identified cases against the postal staff as

well as quantum of wage amount misappropriated came down in Nizamabad.

Index of Financial Inclusion data revealed that there was less discrimination in financial inclusion

across castes. However, variations were found between the developed and backward regions,

cultivators and landless labourers and SHG and non-SHG members. The overall IFI score in the

study villages was 57 per cent. Our field observations and FGDs indicated that the Financial

Institutions should be more proactive in serving the rural poor. The incentive mechanism and also

money deposited with the postal department should be an added advantage offered by MGNREGA

to make rural branch post offices viable. There is need to re-examine the financial incentive

system for senior officials associated with MGNREGS wage payment as well. The financial

institutions should view MGNREGA as an opportunity to sell their products. Their participation in

MGNREGA could not be viewed as social obligation but as a business proposition.

The Nizamabad model of biometric payment of wages should be encouraged in all post offices to

make payment to the right workers.

Finally, all MGNREGA relevant information available with the Dept. of Posts should be

transparent and available to all citizens of India.

EXECUTIVE SUMMARY- Rajasthan

Financial Inclusion which flashed on the horizon of banking industry in the wake of inclusive

growth policies after crossing the crucial tides of time (by 2008), , has come to stay to some extent

in a comparatively less developed State of Rajasthan. The state has been on the front line in

searching for an alternate credit delivery mechanism through Self Help Groups. Financial

inclusion is not an end in itself as most of the people having a bank account or an insurance

coverage, ipso facto, does not mean an enhancement in their economic position, but it should help,

in some way, the process of economic development in the distribution of existing income pattern.

11

For this, the Financial Institutions play an assured role in leading the way to supply financial

services and facilitate their distribution. Financial Institutions and local administration have to

perform distinctly, but mutually reinforcing roles in achieving social transformation through

financial inclusion. MGNREGS paved the way for financial inclusion of rural poor in Rajasthan.

After amendment to the Act, the state government has initiated a dialogue with various financial

institutions viz., RRBs, Cooperative Banks and Post Offices via SLBC, DLBC, BLBC meetings

on priority basis with regard to payment of MGNREGS wages through SB Accounts of workers.

The state of Rajasthan has been one of the better performing states in terms of employment per

household and institutionalised interventions. In the sphere of financial inclusion envisaged under

MGNREGA, the state has launched the Financial Inclusion Task Force under the guidance of the

Secretary, Rural Development. The bankers have agreed to open no-frill accounts in their banks.

Further, the Principal Secretary involved the RRBs and Cooperative banks in the financial

inclusion process under MGNRGES due to their vast network and also entered into an agreement

with Dept. of Posts.

The study is undertaken to assess the effectiveness of the process of financial inclusion and its

impact in selected districts of Rajasthan state. The aspects examined include: institutional

arrangements, awareness of the worker community, problems encountered in the financial

inclusion process, perception of the stakeholders, delays in wage payment and impact of the

financial inclusion by using a variety of data collection tools. The study was carried out in one

developed (Alwar –Phase-III MGNREGS) and one backward (Dungarpur – Phase-I MGNREGS)

districts of Rajasthan with good number of NREGS savings bank accounts and wage amount paid.

In all, four Blocks, 8 Gram Panchayats and 250 sample workers of 2008-09 constitute the sample

units.

The institutional arrangements for making wage payment by Cooperative Banks, Rural Banks and

Post Offices have been reviewed in the light of field observations and discussion with various

functionaries.

Few lacunae such as inadequacies in institutional arrangements specially in RRBs, long delays in

wage payment, absence of penalty system for delayed payments, lack of initial deposit in

Cooperative Banks, and non-acceptance of deposits from workers in Post Offices have been

12

documented which need the attention of the partner institutions. It also reviewed the working of

incentive systems and suggested that one per cent of assured service charge would meet all the

costs of Cooperative Banks, RRBs and DoP and payment of incentives to the staff.

In Rajasthan the workers opened both individual (89 percent) and joint SB Accounts (11 Percent)

for the purpose of MGNREGS wage. In Alwar district all are individual Accounts where as in

Dungarpur initially they opened individual accounts and later joint accounts were opened due to

large number of workers.The number of accounts opened during 2008-09 are 67.84 lakhs and it

went up to 87.66 lakhs by December 2009. The share of post office was about 44 percent during

2008-09 went up to 46 percent by December 2009. An amount of Rs.8626 crore was disbursed

through banks and post offices during 2008-09. However, 24 percent of wage amount was paid as

cash to workers as some of the workers did not open the SB account. On an average, the amount

disbursed through each SB account varied from Rs.4517 in Umrain block to Rs.11603 in

Bhitchwara block. The number of SB Accounts per worker household was less than one in sample

blocks but it increased during 2009-10.

Each branch post office has been on an average handling about 600 worker wage accounts

(ranging from 160 to 2300 accounts) and has disbursed about Rs.160 lakhs on an average (ranging

from Rs.32.0 lakh to Rs.414 lakh).

Most of the sample workers were to STs and SCs (85 percent) followed by OBCs and Minorities

(13 percent) in the study area. In our sample, the female workers participation was only 32

percent in at aggregate level. The low participation was observed Umrain block. ‘Agriculture

labour’ was the main source of income for most of the sample worker households followed by

‘non-agriculture activities’. More than half of the sample households are marginal farmers and

‘landlessness’ was also found among 36 percent of the worker households. About 68 percent of

sample workers were illiterates. The average wage earnings of female workers was higher than

that of male workers because of the large number of women workers’ presence in the activity.

During 2008-09, on an average, a worker household earned wages amounting to Rs.4494/- from

MGNREGS. The wage earnings per household were more in backward blocks among the sample

confirming the responsiveness of the scheme to the needs of backward areas. Due to MGNREGS,

13

about 19.2 per cent of households could move out of poverty and the intensity of poverty also

declined.

The Principal Secretary of RD and Commissioner, MGNREGS at the state level and the District

Collectors at the district level coordinate the meetings with the officials Financial Institutions

regularly and resolve the problems to ensure timely payment of wages to workers. However,

despite these concerted efforts, delays in wage disbursements have taken place. In normal cycle of

payment, a minimum delay was 10-15 days. In Dungarpur district it took 41.4 days, on an average,

for payment of wages whereas it took 44 days in case of Alwar District. In all sample GPs of

Alwar the maximum delay was observed. The delay in taking measurement by Junior Technical

Assistant and preparation of wage lists by the block administration caused delay in wage payment

too.

The awareness levels about the procedures for financial inclusion varied considerably and most of

them knew the pre-requisites for opening an account. The awareness regarding the Financial

Inclusion process was found to be significant with regard to account opening (81.8 percent) and its

operation (91.2 percent). The awareness scores depend on the socio-economic status, social

capital, literacy level, development of the area, occupation and the social group of sample workers.

Ironically, the non-SHG members fared better than the SHG members as most of the non-SHG

members are males. Gender-wise differences in levels awareness were also not visible. The

awareness levels on different parameters were slightly higher in Umrain block and the reason

being the agriculture development of the block. The workers’ participation in Bitchuwada block

was considerably well. They carried out more number of transactions with the bank. So, a greater

awareness was demonstrated by them. In fact the Gram RozgarSahayaks, the GP Secretaries and

the Mates played a major role in mobilisation of workers and opening of SB Accounts.

About 40 per cent of workers opened the SB Account at the worksites or villages; applications

were carried by GRS and handed over to FI. However, more than half of the workers went to

banks / Post Offices for opening of SB Accounts. About three –fourth of workers took help from

either GRS/ Mate or GP Secretary. Most of these dependents are illiterates and belong to SC/ST

communities. For about half of the workers, the SB Account was opened after 21 days on

submission of application against the stipulated time of three days; largely due to shortage of

manpower in FIs. The average number of accounts per household was 1.0; highest number of

14

accounts in Umrain (1.6) block was observed. About 61 percent of workers were aware of the

procedure for getting a duplicate passbook.

The mate and the GRS informed the workers regarding wages deposited and also filled up the

withdrawal form to about 61 percent of sample workers. About 9.6 percent of sample workers

filled the withdrawal form on their own. About 52 percent of sample workers have been operating

SB account on their own. In the case of joint-accounts, about 17 per cent of them have been

operated by the other members of family. About 58 percent of self operating workers operate the

SB account regularly. About 89 percent of workers could operate the account on their own

regularly but most of them sought the help of others for filling the withdrawal form. Significant

proportion of workers (22.7%) were not comfortable with Post offices due distant location.

The average number of transactions per worker was 3 and per household was 5 during 2008-09.

Nearly forty percent of workers travel about 2.49 kms to get the wages. On an average, a worker

had to spend about Rs.26.0 towards travel expenditure (reported by 30 percent of workers). In case

of 23 percent of sample workers the BPMs paid wages at the GP office (where BPMs staying in

other villages). On an average a worker had to wait for 6 hr 15 min to get wage from FI due to

huge crowd.

Some of the problems encountered by the workers while opening SB Account are distant location

of FI, working hours of FI and filling up of application form. A worker, on average spent Rs.72

for opening the SB Account towards getting photographs (58 percent)or initial deposit (22 percent)

or paid to banker / BPM/GRS (19 percent).

Half of the workers provided with prior information regarding deduction in wage amount. No

worker reported any the payment of bribe to FI while withdrawing the wage amount.

About 60 percent of sample workers are comfortable with the Financial Institutions as they are

getting full wage amount where as few workers (12 percent) felt uncomfortable due to their distant

location.

15

Very few workers opined that technology intervention for payment of wages would reduce the

travel time and cost (6%).

Only 12 percent of the sample workers were confident enough that they could operate the SB

account on their own. About, 10 percent of sample workers expressed that they could never

operate SB account on their own as they could not fill up the withdrawal form; many of these

workers belong to SCs/STs and OBCs and Minorities. This confirms the disadvantages of these

vulnerable sections to make effective use of such (pro-poor) development interventions.

Only 8 percent of sample households have SB accounts either in banks or post offices prior to

MGNREGA. It can be concluded that about 92 percent of sample households have been linked

with formal financial institutions after implementation of MGNREGS in the sample blocks. It is a

major achievement of the programme.

Only 21 percent of sample households had savings in one of the formal or informal Financial

Institution. Their savings rose to 36 percent after MGNREGS implementation. The savings

through SHG membership rose from 8 percent to 22 percent. However, there was no change in the

amount of savings. Much change was not observed in availing loans from FIs by the sample

workers. About 15 percent of workers asserted that there was enhancement in their savings.

The dependency on big farmers reduced and most of the households preferred to take loans from

SHG, Cooperative Societies and Banks in the post-MGNREGA period. The banks also increased

their share of loans to the sample households. About 67 percent of the sample households opined

that the financial institutions were yet to help them in meeting their credit needs fully.

MGNREGA made a significant impact on 2 percent of sample households as they were no more

dependent on informal financial institutions while about 68 percent of the sample households

reported reduced dependency. Due to effective transparency mechanism and high level awareness

on process of lodging a complaint, the number of complaints grew gradually.

Index of Financial Inclusion data reveals that there is discrimination in financial inclusion across

caste groups between developed and backward regions and also between male and female. No bias

has been found among the cultivators and landless labourers and SHG and non-SHG members.

16

The overall IFI score in the study villages was 48.7 percent. Our field observations and FGDs

indicate that the Financial Institutions should be more proactive in serving the rural poor. The

incentive mechanism and also money deposited with the postal department should be an added

advantage offered by MGNREGA to make rural branch post offices viable. There is a need to re-

examine the financial incentive system to the staff of Cooperative Banks and RRBs associated

with MGNREGS wage payment. The financial institutions should view MGNREGA as an

opportunity to sell their products. Their participation in MGNREGA could not be viewed as a

social obligation but as a business proposition.

The technology interventions like e-Muster Rolls and Biometric Payments will curtail the fudging

of muster rolls to a great extent. Finally, all MGNREGA relevant information available with Dept.

of Posts and Cooperative Banks should be transparent and available to all citizens of India.

17

3. MGNREGS : Process Analysis of Wage Payment – A study in Maharashtra and Rajasthan

Dr. V. Suresh Babu and H.K. Solanki

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is the major

flagship programme of Ministry of Rural Development (MoRD) for poverty alleviation

through security net and creating durable and quality assets through management of

natural resources. MGNREG Act emphasised in Section 3 (3) that the wages to the

MGNREGA workers will be paid not later than a fortnight of work done. Para 30 of

Schedule II of the Act provides for payment of compensation to MGNREGA workers in

accordance with the Payment of Wages Act, 1936 in case of delay in payment of wages.

MoRD instructed to all the state governments during May 2008that wage payments, under

the MGNREGA, would be made through banks / postal saving accounts, as a fool proof,

cost-effective solution to reduce leakages and to promote greater transparency, the

transition was rushed and several complications are becoming apparent.

Despite such clear provisions delays have been reported in payment of wages

acrossnation. By April 25, 2010, there was delay in delivering wages amounting to Rs

1,355 crores (www.nrega.nic.in), of which, about Rs 136 crores were paid after 90 days of

delay, Rs 156 crores in between 60-90 days, Rs 466 crores between 30-60 days, and Rs

596 crores between 15-30 days of delay. During 2011 – 12, around 1218.55 Lakh

households have been registered under MGNREGA covering around 2671.06 Lakh wage

seekers. Nearly 301.35 accounts have been opened (with 50.5 percent postal accounts) and

about 10199.63 crores have been disbursed through these accounts up to 23.02.2012

(nrega.nic.in). States have not achieved the basic requirement of the wage seekers to

obtain their wages within 7 days or maximum in 15 days, even after almost 6 years of its

implementation, barring few exceptional GPs or blocks or districts. Delay in wage

disbursement is one of the most serious problems with the system of bank / postal

payment that is dwindling interest in MGNREGS employment across several states

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(AninditaAdhikari, 2011). The programme has not evolved into a demand-driven and

rights based programme. In this context, the present study is designed to analyse and

document the process of wage disbursement in two States viz., Maharashtra and

Rajasthan.

The specific objectives identified for the study are:

1. To study the Administrative and Institutional arrangements

2. To record the time taken in disbursement of wages and reasons for delay

3. To document the process for timely and full wage disbursement.

4. To suggest measures for ensuring timely payment of wages.

Socio – economic conditions of the study States

Maharashtra is the third largest State in India both in area (3.07 lakh sq. km) and

population (1123.72 Lakh).Rain water is the most precious natural resource of the state,

greatly in the demand, and most unevenly distributed.A large number of villages lack

drinking water, especially during the summer months, even in the wet Konkan. Barely 11

per cent of the net sown area is irrigated.64.14 per cent of the people are employed in

agriculture and allied activities. The rural population of the state is around 58 per cent.

The major crops cultivated in Maharashtra state are Cotton, Sugarcane, Maize, Bajra,

Onions, vegetables, etc. the landless agricultural labourers are engaged only for the period

of 3- 4 months in a year. They usually migrate to the neighbouring towns and cities as

construction labourer or brick Kline’s.

The Rajasthan’s economy is primarily agricultural and pastoral, which contributes 22 per

cent to its economy. The total cultivated area is about 20 million hectares, of which only

20 per cent of the land is irrigated. Wheat and barley are cultivated over large areas.

Pulses, sugarcane and oilseeds are cultivated in irrigated areas. The major sources of

irrigation are wells and tanks.The landless agricultural labourers basically depend on

tourism and handicrafts unless there is normal monsoon season. 14 per cent of Rajasthanis

are falling under below poverty line. 67 per cent of households migrate, as they usually

receive normal monsoons once in four years. The men usually migrate to Gujarat,

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Haryana and Himachal Pradesh for higher and assured employment. Women are being

engaged in agriculture and MGNREGS.

Methodology

The information required relating to administrative arrangements have been collected

from the Director MGNREGS of the concerned State. The issues / constraints relating to

wage disbursement has been collected from the Director (MGNREGS), Director

(Finance), DPC, PO, GP officials and PRI representatives including wage seekers.Focused

Group Discussion (FGD) at Gram Panchayat has been used to capture the process of

measurements, delay in measurements, time taken to disbursement of wages etc.

Sampling Design

Maharashtra and Rajasthan states were selected which have been experiencing undue

delays in timely payment of wages. Two districts from each state preferably with

maximum number of muster rolls disbursed wages in less than 30 days and similarly

maximum muster rolls disbursed wages in more than 90 days districts as on 04.10.2011.

Similarly, from each district two GPs are selected (one in the vicinity of the block and

another at distant place and preferably one tribal GP) for the purpose of study. In

Maharashtra two districts are selected viz., Nanded(Biloli and Mahur blocks) and

Nandurbar districts ( Akkalkuwa and Navapur blocks) and in Rajasthan State, Sri

Ganganagar (Jayal and Kuchakaman blocks) and Naguar districts (Suratgarh and Sri

Ganaganagar blocks) were selected

Progress and Status of MGNREGS in the state

Mr. V. C. Page – the Chair of the Maharashtra State Legislative Council, and a social

activist – launched the Employment Guarantee Scheme (EGS) experimentally in

1965.This culminated in the EGS Act and its implementation in Maharashtra in 1979.

From a modest beginning, the EGS expanded rapidly into the most important poverty

20

alleviation programme in Maharashtra. The average mandays generated per household is

not more than 52 days. The expenditure across the years is very consistent (33 - 36

thousand lakhs). Hardly 50 per cent of the shelf of projects is completed. There is huge

unmet demand in the state. It is reported that landless agricultural labourer are still

migrating for earning higher wages. As usual, women participation is comparatively

higher (85 – 90 %) than the men. Participation level of SC, ST and women has drastically

reduced during 2010 -11compared to that of 2008 – 09, this is mainly attributed to the

delay in wage disbursement.

The scenario in Rajasthan is not different compared to that of Maharashtra. The number of

job cards issued is almost 100 per cent during 2011 – 12. However, the mandays

generated has sharply declined compared to the figures of 2008 – 09. The reasons are

multifaceted, viz, higher market wages, timely payment including perks like food and tea,

advance payment for needy wage seekers and credit facilities. The works completed

during 2011 – 12 has increased by four folds as compared to 2009 – 10 and seven folds

compared to 2010 – 11, respectively. The participation levels are low during 2010 – 11 as

compared to the previous years because of good monsoon season. The works executed

under MGNREGS were very beneficial to harvest potential rain water. The SC and ST

who do not have irrigation facilities were able to take-up cultivation on their piece of land

due to water storage structures (Tanka, formation of new tanks and desilting of tanks in

Common Property Resources (CPR)) executed under MGNREGS. Hence, turnout for

wage employment was low during 2010-11.

Major study findings:

Objective 1: To study the Administrative and Institutional arrangements

In Maharashtra, the major delays in wage disbursement was due to a) 15 days muster roll

b) delay in submission of muster i) by the GRS to the JE ii) by the JE to GRS c)

unavailability of funds at GP d) transfer of funds through cheque system and e) procedural

delay in postal / banking system. These delays are reduced by replacing 15 days muster

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with 6 days muster roll, as directly reduced the delays at source by 7 days. The funds are

transferred by Real Time Gross Transfer System up to the Block Panchayat. The funds

related to the wages are deposited in advance at the Postal and Banking system has

reduced the delay in transfer of funds. To reduce the procedural delays a messenger has

been deployed at the Block level; to carry the muster roll approved by the BDO to the

District post for verification and handover the same to the Branch Post Master for timely

disbursement of wages.

In Rajasthan, the scenario is almost similar to that of Maharashtra. In addition to adoption

of 6 days muster roll, JTAs have been introduced on contract basis in place of junior

engineer to hasten the measurement process (or to reduce the measurement delays).

However, in both the study districts of Rajasthan, it is noticed that there is still shortage of

JTAs. On an average, each JTA has to take care of 9 GPs in place of prescribed 5 GPs.

Further a committee of five member including the President, Ward Panch, GRS, Secretary

and JTA is formed at the GP to approve the wage and material bill. On approval by the

committee, the wages and material bills are disbursed by intimation to the BDO office.

However, unless the approved muster roll is uploaded on the website, wage bills are not

approved by the district post and deposited in their accounts. The RTGS system has been

adopted to transfer the funds up to the Block level. The State has developed a 13 day

timeline for disbursement of the wages and the timeline need to be appended along with

the closed muster roll. However, it is noticed that the GPs have not adopted the timeline

calendar except in Kuchaman block, Naguar district.

Objective 2: To record the time taken in disbursement of wages and reasons for

delay

In spite of the necessary amendments in administrative and institutional arrangements, the

district administration is not able to make the payment within the specified calendar days

ie., 9 days. In most of the GPs, the implementers are not following the prescribed calendar

for disbursement of wages. In few GPs, the implementers are not aware of the specified

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calendar system developed hence; they are not following the timeline specified.The

reasons for delay in disbursement of wages in the 17 study GPs are presented in the

tabular form.

Objective 3: To document the process for timely and full wage disbursement.

It is revealed from the study that the wage disbursement is delay by 17 – 33 days in

Maharashtra and by 17 –22 days in Rajasthan after closure of muster roll. The wage paid

in Rajasthan state is beyond the minimum wages and in Maharashtra the wages paid is

less than the minimum wage.

Lessons learnt:

i. The central funds are timely released however; the state matching grants are

released based on funds availability in the treasury and demand of the district, in

spite of having State Wage Employment Fund.

ii. The major delays in wage disbursement was due to a) 15 days muster roll b)

delay in submission of muster i) by the GRS to the JE ii) by the JE to GRS c)

unavailability of funds at GP d) transfer of funds through cheque system and e)

procedural delay in postal / banking system.

iii. Up-loading of approved muster roll on MIS is not considered compulsion for

disbursements of wages in both the study States. In case of Rajasthan, wages are

disbursed on approval of muster roll by the GP committee. Later, muster is

uploaded.

iv. Delay in wage disbursement is due to shortage of manpower (especially the GRS

and Junior Engineers) in both the states. As most of the appointments under

MGNREGS are under contract system, the employee after gaining experience opts

for better opportunity with higher wages.

v. In both the study states, it is found that the wages are determined based on the

average work done per week. On paper, it is noticed that the wages are determined

based on the work done by particular group of wage seekers.

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vi. The State administration has developed a timeline for timely release of wages; it is

9 days after closer of muster roll in Maharashtra and 13 days in Rajasthan. The

timeline is not strictly adhered.

vii. The disbursement of wages by the postal and banking system has been resolved

due to opening of accounts in the Nationalised banks and adoption of RTGS fund

transfer system.

viii. In Maharashtra full wages are paid (Rs. 155 is paid in Nanded and Rs. 145 in

Nandurbar district while in Rajasthan the minimum wage paid ranges from Rs.81in

Sri Ganaganagar to Rs. 97 in Naguar districts.

ix. It is surprising to notice that the delay in release of material component is very

minimal.

x. It is necessary to expand the permissible works for the benefit of more

employment opportunity under MGNREGS.

Future strategies for timely payment of wages:

� There is an immediate need to revise the Schedule of Rates of all the States for payment of

full wages. Gender based SORs need to be developed. It is found that the working conditions

are very difficult in few extreme districts where the nutritional security has not achieved,

women are finding difficult to achieve the general prescribed target.

� Gender friendly equipment should be provided to generate the desired output and earn the full

wages.

� It is found that there is immense delay in submission of closed muster to Junior Engineer and

delay in recording measurements are mainly due to shortage of manpower. In Maharashtra,

mate system does not exist. Hence, the GRS is under work pressure. There is one GRS per

GP. It could be better to introduce mate system in Maharashtra. In Rajasthan, in absence of

JTA, GRS is recording the measurements. It is necessary to have technical manpower to

record measurements. GRS and JTA has become the hurdle for the State government, as they

are demanding for regularization.

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4. NREGAsoft : Strengthening National Rural Employment Guarantee Scheme (NREGS) (http://nrega.nic.in) implementation

Introduction

Government of India through National Rural Employment guarantee Act 2005 aims to

provide for enhancement of livelihood security of the households in rural areas of the

country by providing at least one hundred days of guaranteed wage employment in every

financial year to every household whose adult member volunteer to do unskilled

manual work.

With afore stated governance business scope, initially in 200 districts which got subsequently

extended to 330 and finally to all rural districts across the country, NIC, along with Ministry of

Rural Development and other stakeholders, conceptualized web enabled management information

system (i.e. NREGASoft) to address the planning &monitoring needs of scheme. Long

association & experience of NIC with rural development processes and engagement with

computerization of RD schemes at various levels proved to be valuable factor in designing

NREGASoft. The first version of NREGASoft was launched along with the launch of the scheme.

NREGAsoftis a local language enabled work flow based e-Governance system and is

available in offline as well as online mode to capture all the activities under NREGA at

Center/State/District/Block and Panchayat level. NREGAsoft has been prepared and

deployed athttp://www.nrega.nic.in., by NIC in collaboration with Ministry of Rural

Development. Each stakeholder can access revelant information through the portal. Highly

customized interface is provided to each stakeholders of NREGA e.g an illiterate worker is

provided with sound based, icon based, touch screen kiosk model to enter/access information on

the portal to enforce the right based framework of law, the State ,Districts and Gram

panchayats have local language interface while the Ministry works in English language

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1. Citizen

2. Gram Panchayats, Block Panchayats Zilla Panchayats

3. Workers

4. Programme officers

5. District Programme Coordinators

6. Engineers

7. Bank/post offices

8. Implementing agencies other then PRIs

9. State RD Departments

10. Ministry of Rural development and administrators in Government of India

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Vision and Objective of the Project

•••• NREGAsoftenvisions facilitating e-Governance by enabling IT based

implantation of NREG Scheme across State, District and three tiers of PanchayatiRaj Institutions

•••• It envisages empowering the common man using the information technology as a

facilitator.

•••• NREGAsoft provides information to citizen in compliance with the right to

information Act (RTI Act). It makes available all the documents like Muster

Rolls, registration application register, job card/employment register/muster roll

issue register, muster roll receipt register which are inaccessible to public

otherwise.

•••• Facilitate faster information exchange between the various stakeholders through

the network.

Project Description

Taking forward the onus of crafting an efficient implementation of the NREGS, the

NREGAsoftcaptures the information right from the registration of the worker. It provides

linkages with the household survey known as BPL survey 2002 which captured

information about each person and family in the rural area.

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Various modules of the software are:

1. Worker Management Moduleof

the software provide backbone for

the services provided to the

worker right from the registration

and issuance of job card to the

payment of wages through

different financial institutions.

Job Card and Muster roll

Technical approval

Fin. and admn approval

Work completed and assets created

Shelf of work

Works proposed

Expenditure on material

Works Beneficiary Fund Transfer Work Flow Of NREGA

Work provided, muster roll filled and wage paid

Demand for work

Work allocation

Gram Panchayat

Job card Issued No Reasons

Registration

issue

Blank muster roll forms having unique no.

P.O.

Transfer fund pay

Other Impl. Agency

Fund transfer from Center

Fund transfer from States

Unemploy. allowance

D.P.C.

Admn.Exp.

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2. Fund Management Module Tracks the transfer of fund from the Ministry of Rural

Development to the pocket of the person.

3. Works Management Module

Captures the complete life cycle

of the works undertaken under

NREGA

Works in progress under

4. Grievance Redressal System allows all stakeholders including illiterate

worker/Citizen to lodge complaint and trace the subsequent response.

5. Staffing Position module strengthens communication and co-ordination among

various stakeholders

6. Cost Estimation Module makes detailed estimation for the works taken up under

NREGA e.g. construction of Tank, Well, Sluice Gate, Earthen road, kharanja etc.

7. Knowledge network/ Solution exchange provides a common platform to all

stakeholders to exchange their views, pose queries to other stakeholder/Experts and

get responses, exhibit their best practices.

8. Social audit module: This modules captures the details of the social audit done in

various Gram panchayats.

9. Bank/Post office modules allows the financial institutions to get information

about wages to be paid to the workers and enter the details of amount credited in

their accounts.

10. Labour budget module helps the Gram panchayats in planning for the next

financial year and help Ministry to decide on the amount to be released depending

upon their future projections of labour demand and works to be taken up.

29

Technology to meet the challenges

NREGAsoft is getting implemented in 614 Districts, 6000 blocks and around 2.3 lakhs

Gram Panchayats with different languages, poor Infrastructure and poor

Connectivity. Thus necessitated software which was cost effective and could overcome

the language, connectivity and platform barrier.

•••• NREGAsoft is available in online as well as in offline mode overcoming the barrier

of connectivity.

•••• It is Unicode enabled and supports all local language thus addressing the language

barrier.

•••• Software is available in Microsoft technologies as well as open source technologies.

• Services provided

•••• G2G

All transaction between all NREGA stakeholders are captured in the system. So

all G2G services are IT enabled.

•••• G2B

Data from NREGA is shared with bank/post offices, E-Lekha, GRS ,RSBY, BPL Census

2002 etc.

•••• G2C

•••• Issue of job card

•••• Acknowledgement of dated receipt of demand

•••• Work site allocation slip

•••• Pay slip

•••• Redressal of grievances

•••• C2G

A local language enabled sound and icon based Kiosk model has been developed for

workers to use the system and exercise their rights by their own.

•••• Demand for job

•••• Lodge grievance

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Benefits accrued

•••• E-Governance for Masses

•••• Enforcement of right based framework of law

•••• Creation of directory of assets created under NREGA

•••• Bringing all documents e.g. 4.7 crore Muster rolls, 11 crore job cards and 24 crore

worker’s information in public domain

•••• Strengthening the record keeping and financial accounting

•••• Assists Gram Panchayats in NREG Scheme Implementation

•••• Assisting the officers, Administrators, Programme Managers

Data Management at Grass root level:

NREGASoft was first of its kind eGovernance solution attempt which took data

management practices below block level in online mode across the country in absence of

eGovernance infrastructure availability at Gram Panchayat level where actually majority of

events related to NREGS implementation takes place. The data management of

NREGS, in majority of states is being done at block level. The majority of states started

managing data using offline and a few with online. As connectivity scenario is improving

further, some of the states are switching over to use online system. The states have

adopted various kinds of models ( in house using its own staff, using contract data entry

operator, outsourcing data entry, arranging entire ICT infrastructure at block level through

private parties etc ) to address the need of content management.

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Capacity Building Measures:

The team at NIC Headquarter has been engaged in preparation of NREGASoft package and

in deployment (training on domain issues, offline/online package and handholding) of the

application, in active collaboration with NIC-State/ District Units across the country.

Training methodology included face-to-face training at state and district level and

utilization of VC and e-learning technologies.

Recognition

It is unavoidable to share some of the moments when collective work done by the

Ministry,NIC and other stakeholders were recognized on various platforms and won

appreciation. The package has been demonstrated to Hon’ble Prime Minister and senior

functionaries of Government, Planning Commission officials , State RD secretaries. The

package has also won several awards :

•••• Microsoft e-governance award 2006

•••• Skoch Challenger Award 2007-National Significance Category

•••• Dataquest e-Gov Champions award 2008

•••• e- Asia award 2009

•••• National award for e-governance2009-2010 for Best government website

Also, it is satisfying to note that package has demonstrated that the data

management could be done effectively from Blocks online now. Which has inspired

&encouraged the design of many other e-governance projects that are in pipeline.

10 Current status of the implementation The

project is getting implemented in :

• No. of States : 32

• No. of Districts : 596

• No. of Blocks : 6388

• No. of Panchayats : 240233

• No. of job card issued : 11.29 crore

•••• No. of persons Registered : 24.88 crore

•••• No. of Muster rolls filled : 4.7 crore ( from 2006-2007 till date)

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Road Ahead

The collective efforts have achieved something and lot more need to be done in days to

come. There are technology options under active consideration whose intervention

could possibly make NREGS implementation better for Job seekers,, common man and

society at large. These areas include use of smart Card and biometric devices for

Authentication of job seekers/wage earners, e-Muster roll by using mobile devices to

capture daily attendance of worker, e-Payment by using smart card, biometric devices ,

ATM etc. Online & Offline Multimedia based training packages in local languages could

be adopted for regular training programmes to enhance awareness of functionaries of

local governments on NREGS in general and NREGASoft in particular. Rural

Informatics has come to stay and prosper further to facilitate Rural Development in India.

Madhuri Sharma

Technical Director (NIC)

33

5. Instructions for e-FMS Activity Steps for e-FMS :

a) Verification of accounts of workers :

a. Data Entry agencies of NREGASoftar e entering account details of each worker demanding for work under MGNREGA.

b. These entered details can be downloaded from link ” Download Panchayat Wise MGNREGA Bank Account Detail for verification” available at state DBA,

Programme officer, Gram panchayat.

c. Take hard copy and correct/collect the information for account_no, IFSC code, Name as per bank,Business correspondence(if any) details etc.

b) Updation of Worker Account:

Update worker account through the link “Update Applicant's Bank details as per downloaded format” available at Programme officer and gram panchayat data entry page. The records shown in this form will exactly follow the sequence of the downloaded report

c) Freeze Worker Account :

Programme officer, DPC or State DBA Login has been provide with the option “freeze workers account” in their data entry page to freeze the accounts. This exercise with add a hash to the record and then no one can change anything in that record. onlyfreezed accounts can participate in eFMS

d) Generate the Wagelist:

a. Enter muster roll in Nregasoft

b. Muster roll without payment date can participate in generation of wage list

c. Generate the wage list

d. Separate Wage list will be generated for

i. One for each bank branch

ii. One for each sub post office

e) Generation of FTO By Accountant:

a. Login from “Generation of FTO By Accountant“ login available under “district/block administrator” button on http://mgnrega.nic.in . aftersuccessful

34

login system will check automatically for the digital signature certificate(DSC) enrollment. if digital signatures are enrolled earlier it will proceed to data entry

page otherwise you have to enroll it by the process mentioned below

b. Enrollment of Digital Signatures

i. System will check java JRE on your machine. If it is not there it will show link “download java JRE and install”. Download and install java JRE on your machine.

ii. To enroll new DSC on Your Machine Connect the digital signature USB token to the USB port of your machine.

iii. System will show all available DSC no your Machine Including the One in USB token if USB token is connected to your Machine.

iv. Select the DSC to be used for NREGA eFMS

v. System will check for expiry date of DSC. If expired you have to get it renewed from issuing authority(NIC)

vi. If DSC if valid it will prompt for PIN Number. Enter PIN number. If PIN number is correct you are enrolled in NREGASoft.

c. System will check for availability of Account to be debited for this signatory. if account information is not there state DBA has to enter the Details of Account to debited for this signatory through eFMS. eFMS will not work unless this information is entered by state DBA

d. View and select the wage list records to be included in FTO and generate the FTO (Fund Transfer Order)..

e. Add digital signature to the generated FTO.

f. signed FTO by accountant(Fist Signatory) will be available to PO/BDO(second Signatory) through the link “ approve and send FTO to bank by PO/BDO”

f) Approve and send FTO to bank by PO/BDO:

a. Login from” Approve and send FTO to bank by PO/BDO” login available under

“district/block administrator” button on http://mgnrega.nic.in . after successful login system will check automatically for the digital signature certificate(DSC) enrollment. if

digital signatures are enrolled earlier it will proceed to data entry page otherwise you

have to enroll it by the process mentioned above.

b. FTO signed by Accountant and not yet signed by the PO/BDO will be available.

c. Approve the FTO. PO/BDO can approve the Complete FTO or will reject the Complete

FTO with reason.

d. FTO will be digitally signed and sent to the SFTP server as soon as PO/BDO will press the approve button.

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Detailed Process :

1) Updation of Worker Account:

For e-Fms worker Bank account should be updated with the following details

a) Bank Name

b) Bank Code

c) Branch Name

d) Branch Code

e) IFSC Code

f) Worker name as per Bank

To update the account detail follow the below steps:

i) Download the Panchayat wise account information

The account detail can be downloaded from site nrega.nic.in from location

nrega.nic.in -> click on you state (like Karnataka) -> click on district (like Bangalore Rural) -> click on Block (like Nalmangla)->

Download Panchayat Wise MGNREGA Bank Account Detail for verification (Under heading Accounts & EFMS)

The following screen will shown and at end of this report there is link Download In Excel .Download the information and send it to update.

ii) Update the worker account

In PO (Programm officer) login the account updating option is there in the format as you downloaded in the above step.

36

Login from program officer login and use the option Update Applicant's Bank details as per downloaded format

The following screen will be shown

37

Select the worker by selecting the checkbox under the heading Tick to Edit .As soon as you check the checkbox the worker information get enabled for editing. Change the information as you get and click on Update button to save the changes

There are two types of a Mode of Payment

1. Bank

2. B.C. (Business Correspondent)

Business Correspondent Master can be filled from STATE DBA option

2) Freeze Worker Account:

Updated Worker account in step 1 must be verify and freeze from Programm officer/DPC / STATE DBA Option. It is mandatory process for e-Fms. If account is not freeze it will not be available for generation FTO.Login from State DBA login.After successful login the following screen will be shown

39

Click on freeze Worker Account.

a) Select District, Block and Panchayat

b) Select Bank

Click on Proceed button. If all the information of worker account is updated, the following screen will appear

All checkbox under the heading “Select to Freeze” is already checked. Uncheck the account which is not correct. At a time 50 worker’s account will be available for freezing.

Click on “Freeze Account “ button .A hash value is created for each worker and the account is freezed for editing i.e. the freezed account will not be edited further.

40

3) Generate the Wagelist:

Wagelist can be generated from Programm Officer (PO) login.

Click on GO Button wagelist will be generated and the following screen will be shown

Select the Payment Through EFMS and click on “Generate Wagelist”.The wagelist is created successfully.

From the Option Send Wagelist to Bank/Post-office for Payment

Send the Wagelist for authorization by accountent

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4) Authorize WageList By Accountant:

Authorization wagelist is three step process:

a) Enroll Digital Certificate (One time process)

b) Verify wagelist worker detail and generate FTO

c) Add enrolled digital Signature to the FTO

a) Enroll Digital Certificate

Connect the digital certificate to computer USB port and select the login credential and click proceed.

First download the JAVA JRE and install in your system and restart the system

At website nrega.nic.in, click the tab “District/Block Administrator” and then click the link of “send wage list to bank/postoffice by PO”.

If the login credential is valid and till now no digital certificate is enrolled the following screen will shown.

i) If Digital signature is not connected the following error message will be shown

42

Connect card and click on Continue

i i ) I f Cert i f icate has Expired : -

iii) If Certificate is valid ,it will prompt for PIN.Enter pin no and click on OK :-

i v ) Select OU and CN > OK : -

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v) If the Certificate is enrolled successfully the following screen will shown. Click on Home Button.

vi) As soon as Home button is clicked the following screen will appear

b) Verify wagelist worker detail and generate FTO

Click on link “Generate FTO”,the following screen will shown. The jobseeker detail in wage list as given below. Select the worker which is correct and to be included in FTO.

44

At submission, FTO of verified wage list is generated as given below.

Add Digital Signature to unsigned FTO

You can add digital signature at the same time to generate FTO or by clicking link “add digital signature to unsigned FTO” of index page as given below.

After click on add digital signature button, if digital signature is attached to the computer system and it is already enrolled, then screen will ask for enter the pin as given below.

45

After entering the correct pin,FTO file will be signed successfully by the accountant as given below.

5) Send WageList To Bank/PostOffice By PO:

At website nrega.nic.in, click the tab “District/Block Administrator” and then click the link of “send wage list to bank/postoffice by PO”.

Then login page of “send wage list to bank/postoffice by PO” will be open

46

After selection of financial year, district and block. Enter the accountant name and password. After successful login, index page will open as given below

Verify and add digital signature to FTO

FTO that is generated and digitally signed by accountant will come in the screen as given below.

if signed FTO is correct press proceed button. if digital signature is attached to the computer system and it is already enrolled, then screen will ask for enter the pin as given below.

After entering the correct pin,signed FTO file will be signed again by the Programme officer as given below. At the same time, FTO signed by programme officer will send to the concerned bank for further processing.

6. Frequent Asked Questions (FAQ) on e-FMS under MGNREGA.

1. What is e-FMS?

Ans : Electronic Fund Management System (e-FMS) is transferring of money from a single

Bank Account directly to the Beneficiary Accounts (MGNREGA workers) without any

paper money or instrument changing hands.

2. Why e-FMS?

Ans : It is Real Time Transfer of Funds to beneficiaries. It reduces delay in payments. It avoids

unnecessary parking of funds at various levels. It helps to eliminate middlemen activities. It is

based on Digital Signature Certificate (DSC) based authorization and authentication. e-FMS

will do away with paper work thus “Green Environment”. It helps fostering e-Governance at

grassroot level. It helps for optimum utilisation of funds released for the developmental

programmes. e-FMS enables simplified book-keeping, ease of audit and to obtain utilization

certificate.

3. How e-FMS works?

Ans: Funds from Central and State are pooled at one bank (Nodal Bank). e-Transferof funds are

made where expenses are to be paid. e-Transfer of funds are made against NMRs generated in

MGNREGS MIS. e-Transfer of funds are made to the accounts of MGNREGA workers

opened with CBS (core banking system, Name of A/c holder, A/c Number, Branch Name,

and IFSC are considered). Thus it is called as Entitled based Funds Management System. e-

FMS application links to wage list generated in MGNREGS MIS. Wage list are transferred

to Nodal Bank at State Hqrs. in form of FTO from MoRD Server. Funds are transferred

from Nodal Bank to the beneficiaries’ account through RBI. This funds transfer

acknowledgements are sent back to MIS by the Bank collecting from RBI.

4. What is DSC?

Ans : A digital signature authenticates electronic documents in a similar manner a handwritten

signature authenticates printed documents. This signature cannot be

forged and it asserts that a named person wrote or otherwise agreed to the document to

which the signature is attached.

5. What is CBS & IFSC? And why is it required?

Ans: CBS is Core Banking System and IFSC is Indian Financial System Code. It is required to

facilitate seamless, online real time funds transfer to beneficiary Bank Accounts. (As per RBI

guidelines, online transactions can take place between the Banks who are part of CBS. CBS

facilitates computer and internet based transactions online. IFSC is a unique id given to

each bank under CBS.)

6. Whether MGNREGA workers’ existing Bank Account details with CBS/IFSC are eligible

for eFMS?

Ans : Yes.

7. Whether MGNREGA workers can open new account in GramyaBanks ?

Ans: Yes, they can open new account with a Gramya Bank and make sure to obtain

IFSC Code and new bank account number. Few days back Gramya Banks are

CBS enabled.

8. Does Gramya Bank have an IFSC?

Ans: Yes, all Gramya Banks have a Parent Bank and to facilitate online transactions like CBS

doing, these Gramya Banks are provided IFSC by their parent bank. MGNREGA worker

accounts with Gramya Bank are eligible to get online transfer of funds.

9. Whether the Bank Account has to be opened only in the name of Head of the household

of the Job Card?

Ans: H/She can open Bank account in his/her own name. H/She will also ensure opening of

bank account number in the name all adult MGNREGA workers of his/ her family.

10. When a Bank Account details of one member in the job card is given and he is not

working while others are working, on whose name funds will be transferred?

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Ans: In such cases, ask the worker to open a new Bank Account and ensure details are

validated and updated in the MIS provided the name is part of the Job Card.

11. If a Job Card (one House Hold) is having 10 members, whether all the 10

members have to open individual 10 Bank Accounts and give details?

Ans: Yes, the system is capable of accepting all 10 members Bank Account details

and it is ideal to provide all members Bank Account details.

12. If all the members in a Job Card have different Bank Accounts separately whether all the members’ Bank Account details can be given? Ans: Yes

13. If a Job Card having two members in it whether can they give bank account details

where they have a joint account?

Ans: No, please ensure to open individual account in bank and details are validated and

freezed in the MIS to take part in e-FMS.

14. If the Job Card is in the name of “Kishore Ch. Swain” and Bank Account is in the

name of “Kishore Chandra Swain” whether is it acceptable?

Ans: No, please ensure the name of the worker is entered as “Kishore Chandra Swain” in

the “Name as per Bank” in the MGNREGS MIS.

15. If a MGNREGA worker is having multiple CBS Bank Accounts in different Banks

and Branches, which Bank Account details he/she need to provide or he/she has to give

all Accounts detail?

Ans: Currently, in eFMS only one Bank Account details are required per member. The

MGNREGA worker can give the details of one Bank Account of his/her choice.

16. Whether the MGNREGA worker can open Bank Account outside his/her

residential area limits/Gram/Block/District etc?

Ans: Yes, Bank Accounts can be opened anywhere with CBS.

17. If a Bank or Branch refused to accept opening of new account by a MGNREGA worker,

what can be done?

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Ans: The MGNREGA worker needs to intimate this to his Gram Panchayat and in turn Gram

Panchayat will take up the matter with Block Level Lead Bank or District Level Lead

Bank or Nodal Bank.

18. What is Bank Account Validation?

Ans: Ensuring one to one matching of the name of MGNREGA worker and name as per bank

account. Also capturing of Bank Name, Branch name, Bank Account Number as per CBS

and IFSC, MICR is necessary for validation.

19. Can Bank Account Number having 3 to 6 digits is validated?

Ans: No, in CBS, Bank Account Numbers will have 11 to 16 digits; hence lesser digit account

numbers cannot be validated. Gramya Bank account numbers are 15 digit.

20. Who validates the Bank Account details of MGNREGA workers?

Ans: Respective Gram Panchayat will validate all the MGNREGA workers.

21. What if few of the MGNREGA workers do not come forward to open the Bank Account

in CBS or not provide details for validation?

Ans: Such persons will lose benefit of getting direct funds transferred into their Bank Account.

22. What will be the cut off time for providing the Bank Account details by the

MGNREGA workers for validation?

Ans: During demand for work, the MGNREGA worker should give his bank account number.

23. What is updating of validated information?

Ans: Updating is nothing but the validated MGNREGA workers-Bank Account details are

entered in MIS accurately.

24. Who will update the validated information in the MIS? Ans: Respective Gram

Panchayat will update all the validated information into MIS.

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25. What happens after updating the information? Ans: Once updating is completed by the respective Gram Panchayat, all such accounts

are locked/freeze and they will be part of eFMS.

26. After freezing of accounts, whether new Bank Accounts can be validated and freezed?

Ans: Yes, it is a continuous process. As and when new Bank Accounts are opened they need to

be validated, updated and freezed in MIS. However, once the Bank Accounts are freezed for

the first time all funds transfer will happen only through eFMS.

27. Whether MGNREGA workers can open new account in Post Office ?

Ans : Yes. But currently, these post office accounts are not covered under e-FMS. The

previous practice of sending wage list along with cheques will be submitted in the

branch post offices.

28. Whether MGNREGA workers can open new account in Co-operative Banks ?

Ans : No.

29. What is Digital Signature Certificate?

Ans: A Digital Signature Certificate authenticates electronic documents in a similar manner a

handwritten signature authenticates printed documents. The Digital Signature is provided

in a Dongle (Token/Pen-Drive like an instrument) to be used for authenticating

electronic documents.

30. Who will issue the DSC?

Ans: DSCs are normally issued by the Certifying Authority and in this case the Certifying

Authority is the National Informatics Centre (NIC).

31. Where do we get DSC?

Ans: NIC, Bhubaneswar. Mr. T.P. Ray, Technical Director, NIC, Odisha State Unit is the

contact officer ([email protected])

32. How to obtain DSCs?

Ans: A DSC applications as per the format given by the NIC need to be duly filled, signed,

counter signed and submitted to the NIC after retaining duplicate copy of

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the application at the office. The prescribed form can be downloaded from

https://nicca.nic.in.

33. Who will be issued with DSC?

Ans : In case of GP, DSC will be issued in the name of PEO as 1st Signatory, Sarapanch as

the 2nd Signatory. In case of Block DSC will be issued in the name of ABDO as 1st

Signatory, BDO as the 2nd Signatory. Similarly, For DRDA, the

First Signatory is APD (Finance) or Addl. PD (Admin.) and the Second signatory is PD,

DRDA. For Line Departments the DDO and the Accountant may be suggested by the

concerned department which may be finalised by the DPC‐cum‐Collector.

34. What are the other documents required for obtaining of DSC?

Ans : A photo copy of any Id proof like Ration Card / PAN Card/ Voter Identity Card/

Bank Account Details/ Driving License is to be deposited with the filled in

prescribed form duly countersigned by their higher officer with seal.

35. Who are the countersigning officers for applying for DSC?

Ans: BDO in case of GP, Collector in case of Block, DRDA and Line Department are the

countersigning authorities for application for DSC.

36. What is the cost of each DSC?

Ans: Free of cost for this project.

37. Who will use it?

Ans: The DSCs are used by the officers mapped in eFMS who need to authenticate payment

process.

38. Whether DSCs are transferrable?

Ans: No.

39. If officer/ official issued with DSC is transferred, whether DSC is invalid?

Ans: If the officer/ official issued with DSC is transferred within Panchayati Raj Department,

the DSC will not be invalid. Only the DSC will be re-enrolled in his/her present place of

posting in Panchayati Raj Department. If the officer/ official is transferred to other

department, the DSC will be seized and it cannot be used further.

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40. How DSCs will be used in the eFMS?

Ans: Whenever a transaction needs to be authenticated, the DSC will be attached to the system

(DESKTOP, LAPTOP) and signed.

41. What are the pre-requisite for DSC installation?

Ans: The pre-requisite for installation of DSC is the correct driver of the DSC token. These

drivers are available athttps://nicca.nic.in.e.g. Download driver for Moser Baer DSC

token or download Starkey DSC token driver. Also download the Java JRE file from the

website. Please keep all these (driver of DSC token and Java JRE) file in a CD media.

42. What are the steps of installation of DSC? Ans:

1. Initialize the DSC token, if it is not done at NIC.

2. Register the DSC through Member Login athttps://nicca.nic.in.

3. You will be provided with a Request Id. Please keep with you.

4. Send an e-mail [email protected] with a copy to [email protected] giving the list of

names, user ids and request ids to be processed.

5. Once the request ids are processed by the RA Administrator of Odisha, status will

show as Generation Request Pending with CA Administrator.

6. “Certificate Generated” when CA Administrator processes the request ids from New

Delhi.

7. The user will receive system generated e-mail from NICCA server and an

Authentication PIN for downloading of the certificate.

8. Login tohttps://nicca.nic.in with the user id and password provided. Click on view

Status. Click on the Request Id.

9. Provide the Authentication PIN.

10. Click on download button.

11. Click on OK.

12. Click on Yes when asked, repeatedly when asked (about 6 or 7 times.

13. Certificate is downloaded to the token.

14. The detailed procedure is available athttp://nregsodisha.org at “Training and Workshop

on e-FMS” on “NIC_Request_Generation”.

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43. How to know whether the DSC is working or not? Ans: Insert the DSC Token at any USB port and click on the Start-) Programs-)

SafeSign Standard I -)Token Management-) Token-) Show Token Object

Or at Internet Explorers-) Internet Options-) Content-) Certificate it will show

the applicant name, if it does not display, then the DSC is not installed properly.

44. How to enroll the DSC for generation of FTO?

Ans: Enroll the 1st Signatory DSC against Accountant inhttp://mgnrega.nic.in. Similarly, enroll

the 2nd Signatory against Gram Pradhan in case of Gram Panchayat and Programme

Officer in case of Block.

45. What is the validity period for DSC?

Ans : Generally, the valid period of DSC is 2 Years , after 2 years, the same DSC will be renewed in the same name.

46. What if DSC token is lost?

Ans: It is as good as your any other important document like Passport, Driving License,

Certificates etc, if it is lost or misused, the person on whose name DSC is issued will be

held responsible. Lodge the Police complaint and intimate server provider to deactivate.

47. Whether duplicate DSCs are issued?

Ans: No, the person who loses the DSC needs to report to the competent authority immediately

for getting it deactivated in the Software to avoid misuse. Duplicate DSCs are not issued.

A fresh application has to be given to obtain new DSC.

48. Who is beneficiary?

Ans: Beneficiary in the context of eFMS is the MGNREGA worker who opens the Bank Account

where CBS is available and eligible to receive funds.

49. What is the role of Bank who transfers funds to beneficiary?

Ans: Interact with the District Lead Banks, Local Lead Banks and ensure necessary

cooperation is provided by the Local Banks and their branches (MGNREGA workers’

Bank Accounts opening). Assist in validation of Bank Account details.

50. What is the name of Bank transferring funds to beneficiary accounts directly? Ans: The State Bank of India has been chosen as Nodal Bank.

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51. What is FTO?

Ans: FTO is termed as Fund Transfer Order. It is generated after verifying the wage list,

material list and administrative expenditure list for one day per one executive agency and

adding DSC by both the signatories.

52. What is wage list?

Ans: Wage list is generated from a series of muster rolls, which contains name of the wage

earner, Jobcard Number, Account Number, wages to be paid. All the wage lists of a day

are bundled to form an FTO.

53. What is the frequency of FTO generation?

Ans: One FTO is only generated per one day per one executing agency between 9.00 AM to

4.00 P.M.

54. What does one FTO contain?

Ans: One FTO contain, name of the wage earner, jobcard number, account number, bank

IFSC, wage to be credited.

55. What happened after FTO generation?

Ans: After FTO generation, FTOs are stored in the sftp server of Ministry of Rural

Development. State Bank of India, Secretariat Branch, Bhubaneswar being the sponsoring

bank for Odisha, downloaded the FTOs after 12.00 noon. Then SBI

processed all FTOs and segregated bank-wise FTOs and send to RBI for transferring

the wages to the accounts of all wage earners irrespective banks using Regional

Electronic Clearance System (RECS) of RBI.

56. How to know whether the accounts of wage earners are credited or not? Ans:

Inhttp://mgnrega.nic.in, one report namely FTO status is available, where the

status of all FTOs can be known. It is updated by SBI through response file

collected from RBI.

57. What to do with the reject FTO or invalid account number?

Ans: After verifying/ freezing the correct account number and name as per bank, fresh FTO is

regenerated for the rejected FTO using the same procedure as one FTO is generated.

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58. What is the difference between Wage List & FTO?

Ans: Wage List is the list of wage earners with wages to be credited in form of paper document,

whereas FTO is the digitally signed list of wage list.

59. How many FTO(s) can be generated in a single day at each Executing Agency Level (GP/

Block/ DRDA/ Line Department)?

Ans : One FTO per one Executing Agency will be generated in a day.

60. What are the steps to generate FTO?

Ans:

1. Update/ validate bank account number of MGNREGA workers in GP login.

2. Freeze the bank account number of MGNREGA workers in PO login.

3. Enter demand for work at GP login.

4. Enter work allocation details in GP / PO login.

5. Issue e-Muster Roll at PO login.

6. After 7 days, collect e-Muster Roll from field.

7. Enter e-Muster Roll at GP/ PO/ PS/ Line department login, as the case may be.

8. Enter e-Measurement Book at GP/ PO/ PS/ Line department login, as the case may

be.

9. Generate wage list at GP/ PO/ PS/ Line department login, as the case may be.

10. Send wage list at GP/ PO/ PS/ Line department login, as the case may be.

11. Authorize FTO at GP/ PO/ PS/ Line department login, as the case may be for 1st

Signatory.

12. Approve FTO at GP/ PO/ PS/ Line department login, as the case may be for 2nd

Signatory.

13. Now the FTO is sent to Bank for crediting the accounts of MGNREGA

workers.

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61. What to do, if some transactions are rejected? Ans:

1. Update account number of MGNREGA workers for rejected transactions at GP

login.

2. Freeze the bank account number of MGNREGA workers in PO login.

3. Generate wage list for rejected transactions at GP/ PO/ PS/ Line department login, as

the case may be.

4. Authorize FTO for rejected transactions at GP/ PO/ PS/ Line department login, as

the case may be for 1st signatory.

5. Approve FTO for rejected transactions at GP/ PO/ PS/ Line department login, as the

case may be for 2nd Signatory.

6. Now the FTO for rejected transactions is sent to Bank for crediting the accounts of MGNREGA workers.

62. Who to contact in case of additional clarity is required in this regards?

Ans: PEO and GRS at Gram Panchayat Level,

BDO, ABDO, APO and CP at Block Level.

PD, DRDA, Addl. PD (Admn), APD (F), Programme Officer/ Computer

Programmer and MGNREGA Coordinator at District Level.

Joint Secretary, Deputy Secretary and IT Specialist of MGNREGS Society at State Level.

Question 1. Who is entitled to get employment under Mahatma Gandhi NREGA?

Answer: Any registered rural household having a job card is entitled to get employment under the

Act. A job seeker has to apply in writing for getting employment under the Act. Question 2. How many persons have so far been benefited under Mahatma Gandhi

NREGA?

Answer: A household is the basic unit for providing employment under Mahatma Gandhi NREGA.

All adult members of a household whose names appear on the job card may demand employment

subject to an overall ceiling of 100 days in a financial year per

household. 2.10 crore households were provided employment during 2006-07, 3.39 crore during

2007-08, 4.51 crore during 2008-09, 5.26 crore households during 2009- 10 and 5.00 crore households

during 2010-11 (provisional upto March 2011) have been benefited so far.

Question 3: Does Mahatma Gandhi NREG Act has any separate provision for

employment forthe agricultural labourers?

Answer: No, The Act does not have a separate provision for agricultural labourers. Adult members of any

registered rural household who are willing to do unskilled manualwork may get employment under

Mahatma Gandhi NREGA on demand subject to a ceiling of 100 days in a financial year per household.

Question 4: What are the provisions regarding wage rate payable to the workers under the Act?

Answer: Wages are paid to the Mahatma Gandhi NREGA workers in accordance with the wagerate

as provided in Section 6 of the Act. Section 6(1) provides that Central Government may, by

notification, specify the wage rate for the purposes of this Act provided that the wage rate

notified by the Centre shall not be less than 60 per day.

Section 6(2) of Mahatma Gandhi NREGA provides that until such time as a wage rate is fixed by the

Central Government in respect of any area in a State, the minimum wage fixed by the State

Governments under Section 3 of the Minimum Wages Act 1948 for agricultural labourers shall be the

wage rate applicable to that area.

Question 5: What wages will be paid to a worker under Mahatma Gandhi NREGA?

Answer: Central Government has notified the wage rate under Mahatma Gandhi NREGA

inaccordance with Section 6(1) of the Act in respect of all States and Union Territories

andhas revised the notified wage rate for unskilled manual workers under Mahatma

Gandhi NREGA by indexing the notified wage rate to the Consumer Price Index for

Agricultural Labour (CPIAL) vide notification dated 14.1.2011.

Question 6: When does the un-employment allowance become payable? Has unemployment

allowance been paid by any State Government to the NREGA workers?

Answer: If an applicant for employment under the Scheme is not provided employment within 15days

of receipt of his application seeking employment or from the date on which theemployment

has been sought in the case of an advance application, whichever is later, heshall be entitled to

a daily unemployment allowance. The rate of unemployment allowance will be 1/4th of the

wage rate for the first 30 days and 1/2 of the wage rate for the remaining period of the financial

year. Unemployment allowance has been paid by anumber of States. Unemployment allowance

is paid by the respective State Governmentsfrom its own budget.

Question 7: What are the provisions under the Act for payment of wages to the workers?

Answer: The workers are entitled to be paid wages on a weekly basis and in any case within afortnight of the date on which work was done. Payment of wages to the NREGA workers has been made mandatory through their accounts in post offices/banks. In the event of any delay in wage payment, workers are entitled to compensation as per the provisions of the payment of wages Act 1936 Compensation costs shall be borne by the State Governments.

Question 8: Whether compensation has been paid by any of the State Govts to the NREGA

workers under the Act?

Answer: Compensation for delayed payment of wages has been paid by the Govt. of Jharkhand inKhunti district and in Murhu block. A sum of 3.08 lakh has been paid to 154 workers in Khunti block and 1.90 lakh to 95 workers in Murhu block.

Question9: Is any other type of compensation payable under the provisions of the Act?

Answer : Para 26 of Schedule-II of the NREGA provides for payment of ex-gratia to the legalheirs of a

worker who dies or becomes permanently disabled by accident arising out of and in the course

of employment under a scheme under the Act. As per report received from the State Govt. of

West Bengal, a sum of 25,000 has been paid to the family ofa job card holder viz.

MrityunjoyRuidas of Tarakeswar Block in Hoogly district on account of his death due to

injury sustained while working in a NREGA work. Payment of compensation of 25,000 each

on account of death has also been made in twomore cases in Burdwandistrict . Question 10: Whether all the households provided employment under Mahatma Gandhi NREGAhave availed

100 days of employment?

Answer: Employment under Mahatma Gandhi NREGA is demand based. Mahatma GandhiNREG Act provides for a legal guarantee of not less than 100 days of wage employmentin a financial year to every

rural household for doing unskilled manual work on demand. Mahatma Gandhi NREGA provides a supplementary means of livelihood for the rural people, primarily during their lean periods. Members of the household are free to avail other available employment opportunities in addition to the 100 days of guaranteed employment per household provided under the act on demand.

Question 11: What is the national average of the number of days of employment provided to

eachhousehold since the inception of the programme?

Answer : The average number of days of employment provided per household under MahatmaGandhi NREGA for the years 2006-07;2007-08;2008-09; 2009-10 and 2010-11 (provisional up to March-2011) has respectively been 43, 42, 48, 54 and 40 days. Question 12. What action is taken by the Government on these complaints?

Answer: Implementation of Mahatma Gandhi NREGA is done by the respective StateGovernments in accordance with the State Employment Guarantee Schemes formulatedby them. Panchayats at district, intermediate and village level are the principalauthorities for planning and implementation of these schemes. Therefore, all complaints received in the Ministry are sent to the concerned States for appropriate action in accordance with the provisions of the Act. In complaints of serious nature, the Ministry deputes National Level Monitors to investigate the complaints. Reports of the NLMs are shared with the concerned State Governments for taking corrective action.

Question 13: What steps have been taken by the Government to monitor the performance

ofMGNREGA and to check the misuse of funds across the country?

Answer: The following mechanism has been put in place to monitor its performance and for

checking misuse of funds across the country.

(i) Independent Monitoring and verification by National Level Monitors (NLM) and Area

Officers on regular basis. In cases of specific complaints, NLMs are deputed by the Ministry to

investigate the matter. Central teams headed by senior officers of the Ministry are also deputed

to look into the serious issues.

(ii) Visits by members of Central Employment Guarantee Council.

(iii) ICT based MIS has been made operational to make data available to public scrutiny. This includes Job cards, Muster rolls, Employment demanded and allocated, number of days worked, shelf of works, funds available, funds spentand funds released to various implementing agencies, Social Audit findings, registering grievances and generating alerts for corrective action. Biometricbased ICT enabled real time transactions of MGNREGA workers to eliminatefake attendance and false payments is also being rolled out.

(iv) Performance of the States is reviewed in the meetings of the Performance Review Committee which

are held on quarterly basis.

(v) States have been asked to include monitoring of Mahatma Gandhi NREGA in the agenda of

District and State level Vigilance and Monitoring Committee meetings so that in case any serious

issues are raised, action may be taken by the Ministry.

(vi) Payment of wages to MGNREGA workers has been made mandatory through their accounts in

Banks/Post Office to infuse transparency in wage disbursement. Use of Business correspondent

model in areas not served by banks/post offices has also been initiated.

(vii) Under Section 24(1) of the Act, Comprehensive Social Audit rules are being formulated in

consultation with C&AG with a view to strengthen the process of social auditing of expenditure

under the Act. The draft rules have been referred to Ministry of Law for vetting.

(viii) Evaluation studies regarding progress and impact of Mahatma Gandhi NREGA in rural areas are

done by Professional Institutions like IITs, IIMs, social sector organisations and other Agricultural

Universities.

(ix) States have been asked to set up District level Ombudsman for redressal of grievances.

Question 14: What are the permissible limits for Wage:material ratio under the Act?

Answer : Para 9 of Schedule I of Mahatma Gandhi NREGA provides that the cost of material

component of projects including the wages of the skilled and semiskilled workers taken up under

the Scheme shall not exceed forty per cent of the total project costs.

Question 15 What are the provisions for convergence of Mahatma Gandhi NREGA funds with

fundsfrom other sources?

Answer: Funds available with the PRIs from other sources and other Central or

CentrallySponsored Schemes can be dovetailed with Mahatma Gandhi NREGA funds

for the construction of durable community assets/works permissible under Mahatma

Gandhi NREGA. However, Mahatma Gandhi NREGA finds should not be used as a

substitute for developmental plan funds of different departments and agencies. Funds

from other programmes for the works permissible under Mahatma Gandhi NREGA

can bedovetailed with Mahatma Gandhi NREGA funds but not vice versa.

Question 16.Whether any initiative has been taken by the Ministry regarding convergence?

Answer : The Ministry of Rural Development has developed and disseminated

Guidelines for convergence of NREGS with different Schemes and specific programmes viz.

Indian Council of Agricultural Research, National Afforestation Programme and other schemes of

the Ministry of Environment & Forest(MoE&F), Schemes of the Ministry of Water

Resources(MoWR), PMGSY (Department of Rural Development), SGSY (Department of Rural

Development), Watershed Development Programmes (Department of Land Resources, Ministry

of Rural Development) . 115 pilot districts in 23 states have been identified by the MoE&F,

MoWR and ICAR. Joint Guidelines are also being prepared with the Ministry of Agriculture

and Fisheries Department for convergence of NREGS and schemes of Ministry of Agriculture.To

review the status of implementation of

convergence guidelines, monitoring plan has been prepared and are being reviewed regularly

to oversee the impact of these initiatives in enhancing the agricultural productivity. National

Institute of Rural Development (NIRD), Hyderabad has been assigned with the task of

reviewing the progress status andsubmitting periodical reports to the Ministry. To ensure

effective and efficient implementation of these convergence initiatives, NIRD has also

commissioned 15 institutions for the purpose of capacity building and monitoring of the

convergence initiatives. An interim report has been received. Possibility of providing medical kits

under NRHM of M/O Health at the NREGA worksites is being explored.

Question 17. What are the details of the permissible works under the Mahatma Gandhi National Rural

Employment Guarantee Scheme (MGNREGS)?

Answer: Works which are permissible under Mahatma Gandhi NREGA are given in para 1 of Schedule

I of the Act and are as under:

(i) water conservation and water harvesting;

(ii) drought proofing (including afforestation and tree plantation);

(iii) irrigation canals including micro and minor irrigation works;

(iv) provision of irrigation facility, horticulture plantation and land development facilities to land

owned by households belonging to the Schedule Castes and Schedule Tribes or Below Poverty

Line families or to beneficiaries of land reforms or to the beneficiaries under the Indira

AwaasYojana of the Government of India or that of small farmers or marginal farmers as

defined in the Agriculture Debt Waiver and Debt Relief Scheme,2008. (The benefits of works on

individual lands have been extended to small and marginal farmers vide notification dated

22.7.2009)

(v) renovation of traditional water bodies including desilting of tanks;

(vi) land development;

(vii) flood control and protection works including drainage in water logged areas;

(viii) rural connectivity to provide all-weather access. The construction of roads may include culverts where necessary, and within the village area may be taken up along with drains. Care should be taken not to take up roads included in thePMGSY network under NREGA. No cement concrete roads should be taken upunder NREGA. Priority should be given to roads that give access to SC/ST habitations; and

(ix) any other work which may be notified by the Central Government in consultation with the State Government.Construction of Bharat Nirman, Rajiv Gandhi Sewa Kendra as Village Knowledge Resource Centre and Gram Panchayat Bhawanat Gram Panchayat level has been included as a permissible activity in para 1 of Schedule I of the Act vide.

7.Karnataka State Convergence Plan

Karnataka State Convergence Plan Index

Sl.No. Particulars Page No.

1 MGNREGA Act, 2005 1

Objective of the Scheme 1

2 MGNREGA in Karnataka 1 – 2

3 Why Convergence? 3

4 Modes of Convergence 3

5 Possible Schemes for Convergence 3

6 Convergence framework 4 – 7

7 A State level workshop on Convergence 7 – 8

8 MGNREGA State Convergence Plan for 2014 – 15 8

9 Convergence Road Map for 2014 – 15 to 2016 – 17 9

10 Implementing agency wise Convergence Plan

I. MGNREGA – NBA Convergence 9 – 10

II. MGNREGA Convergence with Forest Department 11 – 13

III. Convergence with Horticulture 14 – 16

IV. Convergence with Sericulture 16

V. Convergence with Watershed 16 – 17

VI. Convergence with Agriculture 17

VII. Convergence with Animal Husbandry 18

VIII. Convergence with Fisheries 18

IX. Convergence with Minor Irrigation 18

11 Hon’ble Chief Minister’s 15 Point Programme 19

12 Asset Creation 19

13 Summary of guidelines / directions 19 – 21

14 Financial Progress of Line Department works 21 – 22

KARNATAKA STATE CONVERGENCE PLAN

Convergence of MGNREGA with other Departments & their programmes in Karnataka

1. Mahatma Gandhi National Rural Employment Guarantee Act, 2005

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) was notified on September 7, 2005. It was started in the first phase in 200 Districts from

2nd February 2006 and then gradually extended to entire country with effect from April 1, 2008. In accordance with the Act, Mahatma Gandhi National Rural Employment Guarantee Scheme has been launched, is centrally sponsored right based programme, which legally ensures 100 days employment guarantee to rural job card holder/wage seekers. It also provides to take steps for economic development in rural areas and ensure Social Justice.

MGNREGS is being implemented in the state in phased manner since 2006‐07. Karnataka has taken keen interest in implement of the act along with creation of assets.

Objective of scheme (that is goals)

The core objectives of the Scheme are as following:

a. Providing not less than one hundred days of unskilled manual work as a guaranteed employment in a financial year to every household in rural areas as per demand, resulting in creation of productivity assets of prescribed quality and durability.

b. Strengthening the livelihood resource base of the poor; c. Proactively ensuring social inclusion and d. Strengthening Panchayath Raj institutions

2. MGNREGA in Karnataka

a. Statistics • No of Districts: 30

• No of Taluks: 176

• No of GPs: 5631

• No of Villages: 30890 • Population in the State: 5.28 crores • Area (in Sq. ft.): 1.91 lakh sq km • No of SCs registered: 12.10 Lakhs • No of STs registered: 6.06 Lakhs • No of BPL families registered: 12.77 Lakhs • Total No of Registered Households: 57.23 Lakhs • Total No of HHs issued Job cards : 57.23 Lakhs

b. Implementation status 1. 96% of the work execution by Gram Panchayaths 2. Full integration with MIS of MoRD viz. NREGA Soft

3. 100% e‐FMS (Direct Benefit Transfer) based Wage payment to Labourerselectronically to their Bank accounts in all 30 districts.

4. 100% Electronic Muster Rolls (e-NMR) 5. Setting-up of Toll-Free Call Center: 1800 4258 666 6. About 6.70 Lakh Aadhaar seeding with MGNREGA 7. Independent Social Audit Directorate 8. Ombudsmen: Appointed in all the 30 districts; Ombudsman Appellate Authority also

set up & working. 9. SEGC have been constituted and meeting regularly 10. Biometrics & Geo-stamping introduced

c. Progress of Karnataka State MGNREGS: since inception

Year OB

(In Crores)

Releases

Total Availability

(In Crores)

Expenditure

(in Crores)

% (percentage)

of Utilisation

Total person days

Generated (In Crores)

Women (In

Crores)

SC/ST (In

Crores)

Average person days per family

out of 100days

(No. of days)

Central (In Crores)

State (In Crores)

Other (In Crores)

2006-07 78.49 242.5 20.34 0.00 341.33 251.9 73.80 2.22 1.12 1.08 41

2007-08 124.63 268.52 25.54 0.56 419.25 236.69 56.46 1.97 0.99 0.97 36

2008-09 235.65 379.39 43.98 8.75 667.77 357.87 53.59 2.88 1.45 1.19 32

2009-10 353.42 2407.08 253.71 24.68 3038.89 2216.93 72.95 20.04 6.85 5.07 57

2010-11 821.87 1941.55 143.53 49.46 2956.41 1860.47 62.93 10.98 4.91 2.80 49

2011-12 1095.93 662.87 159.06 37.81 1955.68 1640.99 83.90 7.01 3.23 1.68 42

2012-13 314.68 1231.94 205.99 36.15 1788.76 1457.03 81.45 6.21 2.87 1.60 46

2013-14 320.43 1596.07 265.03 11.36 2192.89 2095.22 95.54 7.18 3.34 1.71 50

d. MGNREGS Financial status of 2013‐14 Sl.No Details of Grants (Rs in Crores)

1 Approved budget for 2013-14 2133.03 2 O.B. as on 01.04.2013 320.40 3 Grants received from GOI 1596.07 4 Grants received from GOK 265.03 5 Misc Receipts 11.36

Total receipts 2192.89 A Grants released to PRIs 2025.09 B Total Expenditure as on 31.03.2014 2095.22

e. Physical status of 2013‐14, as on 31.03.2014 Sl.No Subject Value 1 Job Cards issued 57.24 lakh 2 No. of HHs to whom Employment is Provided 14.47 lakh 3 Person days Generated 718.86 lakh 4 HHs completed 100 days 1,17,343 5 Total works taken up (on-going+ completed) 5,44,224 6 Completed works 39,377

f. Labour Budget for 2014 – 15 1. Total Labour budget: Rs. 3151.76 Crore 2. Total Person days: 934.05 Lakh 3. Families to be covered: 18.681 Lakh

3. Why Convergence?

The MoRD Notification dated 20th December 2013 states that

“The State Government shall take concrete steps to achieve effective inter‐departmental convergence till the last mile implementation level of the works under the Scheme with other Government Schemes / programmes so as to improve the quality and productivity of assets and bring in synergy to holistically address the multiple dimensions of poverty in a sustainable manner.”

The objective of MGNREGA namely creation of durable assets and securing livelihood of rural households can be facilitated through Convergence of MGNREGA works with resources of other programmes / schemes available with Panchayaths and other line departments. These resources are not restricted to availability of funds but include technical expertise and knowhow that officials of the line departments may be endowed with.

4. Modes of Convergence

There are basically three modes of Convergence: a. Labour work under MGNREGS, Material component under departmental programmes

b. Each work divided into two parts‐one part under MGNREGS, another under departmental programmes

c. Entire work under MGNREGS implemented by Line Department, either before or after the departmental work (Pre / Post Convergence)

Examples – Provision of seeds and fertilizers from NRHM to farmer, whose land has been

improved using MGNREGA funds. Providing micro ‐irrigation using funds available under RKVY for horticulture plantation done under eligible MGNREGA. Supply of fingerlings by Fisheries department for a dugout pond created under MGNREGA. In these cases too, there are two distinct parts of the project.

5. Possible Schemes for Convergence

Sl.No. Scheme For Technical & Managerial

expertise 1 Central / State Finance Commission Grants Concerned line department and GPs 2 National Rural Livelihood Mission (NRLM) RD&PR Department 3 Integrated Watershed Management Programme (IWMP) Watershed Department 4 Total Sanitation Programme (TSC) NirmalBharathAbhiyan 5 Backward Region Grant Fund (BRGF) RD&PR Department 6 RashtriyaKrishiVikasYojana (RKVY) Agriculture Department 7 RRR (Ministry of Water Resources) Minor Irrigation Department 8 National Afforestation Programme (NAP) Forest Department 9 Pradhan MantriGraminSadakYojana (PMGSY) RD&PR Department 10 National Horticulture Mission (NHM) Horticulture Department 11 Schemes funded from State budget Concerned line department and GPs

6. Convergence framework:

a. Modes of implementation: i. At Gram Panchayath level: Gram Panchayath as Programme Implementing

Agency‐PIA. Karnataka has 5631 GPs, of which 5628 GPs are implementing MGNREGS Works, with technical support of line Departments.

ii. At Block/Taluka level by Line Departments, as Programme Implementing Agency (PIA): yet to be started in the state in a big way, because of certain issues, which needs resolution; only after which the Line Department will be able to really become a major player in MGNREGS implementation. Line Department can pool their own funds & can utilize MGNREGS funds under Convergence Framework; or can take up works with exclusive MGNREGS funds.

b. Implementing Agencies: A total of 9 line departments have been declared as implementing agencies of MGNREGS, in addition to the Panchayath Raj Institutions, as per the State Govt. Order No. RDP/186/MGNREGS/2012 Dt. 23.10.2013.

1. Forest Department 2. Horticulture Department 3. Water resources (Minor Irrigation) 4. Agriculture Department 5. Watershed Department 6. Sericulture Department 7. Animal Husbandry Department 8. Fisheries Department 9. Panchayath Raj Engineering Department

Officers and staff of these departments have been trained on all the critical aspects of MGNREGA Act, Operational 4th

guidelines of 2013, edition and the notification of MoRD, GOI Dt. 20.12.2013 on Schedule – I and Schedule – II. These departments have been given detailed guidelines regarding identification of eligible works, preparation of shelf of projects, preparation and approval of action plan, uploading of information on MIS, work

execution, payment procedure (e‐FMS), audit, social audit, maintenance of records and other relevant subjects.

c. Implementation and Monitoring Mechanism

Each Line Department at state level nominated a senior officer as Nodal Officer. Monthly review meeting with Line Department Nodal Officers is conducted by Commissioner/ Special Commissioner (Forest). RD & PR Commissionerate conducts weekly review through

video‐conferencing. SATCOM Review & Training reaching out to all tiers of PRIs are

4th conducted every Saturday at SIRD Mysore/Bangalore by Additional Chief Secretary to Government, RD& PR himself. District Convergence Resource Group constituted recently involving all concerned Line Department District Level Officers &Programme Officers headed by ZillaPanchayath Chief Executive Officer. Block Convergence Resource Group involving all Taluka level Line Department Officer headed by TalukaPanchayath

Executive Officer. Preparation of District and Block Convergence Plan are in progress.

All districts have been directed to identify 3‐4 areas for Convergence and focus on them. Every Block / Taluka instructed to take up one or two cluster for intensive MGNREGA & Convergence Works for better handholding and intensive monitoring.

d. Enabling Environment:

Government orders issued for entire work, including maintenance years are to be sanctioned at one go by Gram Sabha and also the administrative approval of the same by ZP CEO. Line department District Level Officer is given power to launch the works, based on seasonality and labour availability.

For line departments, unit of implementation is Taluka, accordingly is e‐NMR to be given to Line Department by TalukaPanchayath Executive Officer, who is ProgrammeOfficer. 60:40 ratios for wage and material to be maintained at Taluka level for line department implementation and at GP level for GP implementation.

e. Delegation of Power:

Delegation of power for all the concerned departments on according technical sanction, administrative sanction, recording measurement and check measurement were issued as per the Govt. Order No. RDP/05/MGNREGS/2008 Dt. 06.05.2010 and an addendum No. RDP/167/MGNREGS/2010 Dt. 29.11.2010.

f. Model Cost Estimates issued: 44 number of model estimates under various categories of eligible works have been

obtained, scrutinized, approved and issued.

They are as under – i. Construction of dug out open wells – measuring 6, 9, 12 and 15 Mtr. Depth. ii. Water percolation structure iii. Development of 1 Ha. Forestry Plantation of Teak and or Silver iv. Development of 1 Ha. Forestry Plantation of Fruit Trees v. Development of 1 Ha. Bio Fuels Plantation vi. Development of Fruit / Bio Fuel / Fodder Garden vii. Development of Institutional Plantations – Hospitals, Schools, Hostels etc. viii. Development of Forestry / Horticulture Gardens under irrigation ix. Road side plantation (Muzafurpur Model) x. Horticulture works – Development of 1 Acr. each of Fruit Plantations of major

fruit crops like Mango, Sapota, Pomegranate, Guava, Citrus fruits, Grapes, Pineapple

xi. Horticulture works – Development of 1 Acr. each of less known fruit crops like Seetapal, Amla, Jamun, Ber, Tamarind

xii. Horticulture works – Development of 1 Acr. each of plantation crops like Coconut, Arecanut, Oil palm, Cashew

xiii. Horticulture works – Development of 1 Acr. each of spice crops like pepper xiv. Horticulture works – Development of 1 Acr. each of perennial vegetable crops

like drum stick

xv. Plantation around IHHL Toilets – Planting Mango, Sapota, Coconut, Guava, Amla, Karibevu

xvi. Integrated agriculture works – construction of vermi -compost unit, NADEP compost unit, Liquid Bio Manure Unit

xvii. Sericulture development works – development of mulberry nursery, development of 1 Acr. of mulberry plantation, 2nd and 3rd Year maintenance of the mulberry plantation, construction of compost unit

xviii. Construction of Anganawaadi, Construction of Bharat Nirman Rajiv Gandhi Seva Kendra

g. Payment of works through e‐FMS:

All MGNREGA implementing officers have been authorized to make both Wage and Material payment through e-FMS. Dongals (Digital Signatures) with password & login ID given to all G.P. implementing officers & Line Deptt. Taluka and District Officers.All Payments are to be made Jointly by PDO &Adhyaksha, in case of GP implementation and by Taluka& District Officers, in case of Line Department implementation. Biometrics started for both signatory. Geo-stamping with date for all 3 stage photos being made mandatory to be uploaded before FTO generation.

1st and 2nd Signatories: Block level officers of all the line departments are declared as first signatories and district level officers as second signatories. All these officers have been provided with DSC Dongles. Department wise number of dongles issued is as given under-

i . Forestry - 206 i i . Watershed - 102 i i i . Horticulture - 136 iv. Agriculture - 147 v. Sericulture - 85

h. Training:

vi. Animal Husbandry - 135 vii . Panchayaths Raj & Engineering Department - 06 vii i. Minor Irrigation - 03 ix. Fisheries - 25

Two rounds of intensive training were provided at state level during December 2013 and January 2014 to the implementing officers of block and hobli/mandal level. Such kinds of training were also conducted at all the four divisions of the state, at district level and block level as well. All the modalities in implementing the scheme were dealt at length. Another round of training conducted for the District Resource Teams (DRTs) at Abdul Nazir Saab State Institute of Rural Development, Mysore on 24th, 25th and 26th of April 2014.

i. Recruitment of Technical Officers:

Technical officers with graduate qualification on Agriculture, Horticulture, Forestry and Engineering have been recruited to assist the implementing officers of tdepartments. Sector wise numbers of technical officers recruited are as under

Engineering Agriculture Horticulture Forestry

Details of job chart, responsibilities and accountability of these technical officers have been provided to all the implementing officers as per the letter No. RDP/406/MGNREGS/2014 Dt. 11.04.2014. These officers have been trained on all critical aspects of the scheme, mode of implementation and with regard to their role in implementation.

7. A state level workshop on Convergence:A state level workshop on convergence of MGNREGA with other programmes of line departments was conducted on 21.12.2013. Officers of the all the line departments State / District / Block Level Officers, Officers of Pancof the Rural Development Departments of West Bengal, Tamil Nadu took part in the workshop. MoRD Director MGNREGA and senior consultant guided the workshop participants. Various initiatives undertaken in the state and other pawere discussed at length. The decisions taken at the end of the workshop were:i. Obtaining convergence action plan of the all the line departments for the next 3

financial years (2014list the programmes to be implemented fully under MGNREGS, the programmesthat are to be implemented through financial convergence with the departmental schemes and those involving technical convergence.

ii. All the line departments to make budgetary provision under their departmental schemes to enable convergence with MGNREGS for the financial year 2014

iii. Each district to constitute a District Convergence Resource Group and a Taluk Convergence Resource Group under the chairand EO of Taluk Panchayath respectively.

iv. Each district to indentify 3 to 4 priority sectors for convergence and stressing on them while implementing.

v. Each block to demarcate 1 or 2 clusters, execute the converged programmebetter results.

vi. Line departments to prepare model estimates of the works to be undertaken and submit the same to the Commissionerate of Rural Development for approval.

vii. Line departments to identify and mobilize the workers required for implementation oSANGA’s and to take up execution of approved works by employing them.

Recruitment of Technical Officers:

Technical officers with graduate qualification on Agriculture, Horticulture, Forestry and Engineering have been recruited to assist the implementing officers of tdepartments. Sector wise numbers of technical officers recruited are as under

‐ ‐ ‐ ‐

Details of job chart, responsibilities and accountability of these technical officers have been provided to all the implementing off icers as per the letter No. RDP/406/MGNREGS/2014 Dt. 11.04.2014. These officers have been trained on all critical aspects of the scheme, mode of implementation and with regard to their role in

tate level workshop on Convergence: A state level workshop on convergence of MGNREGA with other programmes of line departments was conducted on 21.12.2013. Officers of the all the line departments State / District / Block Level Officers, Officers of Panchayath Raj Institutions, Heads of the Rural Development Departments of West Bengal, Tamil Nadu took part in the workshop. MoRD Director MGNREGA and senior consultant guided the workshop participants. Various initiatives undertaken in the state and other pawere discussed at length. The decisions taken at the end of the workshop were:

Obtaining convergence action plan of the all the line departments for the next 3

financial years (2014‐15, 2015‐16 and 2016‐17). Line departments to separately list the programmes to be implemented fully under MGNREGS, the

that are to be implemented through financial convergence with the schemes and those involving technical convergence.

rtments to make budgetary provision under their departmental schemes to enable convergence with MGNREGS for the financial year 2014

Each district to constitute a District Convergence Resource Group and a Taluk Convergence Resource Group under the chairmanship of CEO of Zilla Panchayat and EO of Taluk Panchayath respectively.

Each district to indentify 3 to 4 priority sectors for convergence and stressing on them while implementing.

Each block to demarcate 1 or 2 clusters, execute the converged programme

Line departments to prepare model estimates of the works to be undertaken and submit the same to the Commissionerate of Rural Development for approval.Line departments to identify and mobilize the workers required for implementation of departmental works, register these groups as KAYAKA SANGA’s and to take up execution of approved works by employing them.

982

305

Technical officers with graduate qualification on Agriculture, Horticulture, Forestry and Engineering have been recruited to assist the implementing officers of these line departments. Sector wise numbers of technical officers recruited are as under‐

Details of job chart, responsibilities and accountability of these technical officers have been provided to all the implementing off icers as per the letter No. RDP/406/MGNREGS/2014 Dt. 11.04.2014. These officers have been trained on all critical aspects of the scheme, mode of implementation and with regard to their role in

A state level workshop on convergence of MGNREGA with other programmes of line departments was conducted on 21.12.2013. Officers of the all the line departments –

hayath Raj Institutions, Heads of the Rural Development Departments of West Bengal, Tamil Nadu took part in the workshop. MoRD Director MGNREGA and senior consultant guided the workshop participants. Various initiatives undertaken in the state and other participating states were discussed at length. The decisions taken at the end of the workshop were:

Obtaining convergence action plan of the all the line departments for the next 3

17). Line departments to separately list the programmes to be implemented fully under MGNREGS, the

that are to be implemented through financial convergence with the schemes and those involving technical convergence.

rtments to make budgetary provision under their departmental schemes to enable convergence with MGNREGS for the financial year 2014‐15.

Each district to constitute a District Convergence Resource Group and a Taluk manship of CEO of Zilla Panchayat

Each district to indentify 3 to 4 priority sectors for convergence and stressing on

Each block to demarcate 1 or 2 clusters, execute the converged programme for

Line departments to prepare model estimates of the works to be undertaken and submit the same to the Commissionerate of Rural Development for approval. Line departments to identify and mobilize the workers required for

f departmental works, register these groups as KAYAKA SANGA’s and to take up execution of approved works by employing them.

viii. All the officers at block and district level belonging to all the nine line departments to immediately apply for obtaining DSC Dongles.

ix. Commissionerate of Rural Development having conducted elaborate training programme on MIS and e‐FMS, to conduct more training programmes on demand basis.

8. MGNREGA State Convergence Plan for 2014 – 15

Sl. No Department

Financial Convergence Technical &

Pre/post Convergence

Total convergence plan amount

under MGNREGA

Remarks Target under Departmental programmes

Target under

MGNREGA

Total amount under Financial

Convergence

Amount required under MGNREGA

1 2 3 4 5 6 7 (4+6) 8

1 NirmalBharathAbhiyan 27600.00 32400.00 60000.00 0.00 32400.00

Towards construction of 6 lakhs IHHL with

Rs.5400/‐per IHHL under MGNREGA

2 Forest 41037.42 1520.26 42627.68 14994.01 16514.27

i.Towards SMC works in departmental plantations in forest areas. ii.For raising of 3000 km. PMGSY& other roadside plantations and 3000 Km advance works

iii.100 lakh seedlings raising & planting under

Farm Forestry

3 Horticulture 6817.99 3869.65 10687.64 4013.23 7882.88

i.For Drip Irrigation, Nutritional Gardens and convergence of INM and IPM ii.For individual water storage structures iii.For area expansion programme under MGNREGS

4 Sericulture 4190.00 4695.80 8885.80 378.125 5073.925 i. For raising Mulberry Plantations and its

maintenance

ii. For compost pits and percolation pits

5 Watershed Development 0.00 0.00 0.00 4551.36 4551.36 For saturating IWMP Batch – I watersheds

6 Animal Husbandry 506.69 1542.10 2048.79 0.00 1542.10

Towards construction of 4406 Cattle Sheds for SC/ST beneficiaries

7 Agriculture 451.00 1200.00 1651.00 0.00 1200.00 Towards construction of vermi‐compost pits and liquid bio‐manure pits

8 Fisheries 0.00 0.00 0.00 771.78 771.78 For 600 Fish Ponds and 30 Fish drying yards

9 Minor Irrigation 0.00 0.00 0.00 1113.65 1113.65 Towards tank rejuvenation works

10 Panchayath Raj Engineering

0.00 0.00 0.00 2500.00 2500.00 Towards 2500 Play Grounds @ 1 in each GramaPanchayath at an average unit cost of Rs. 1.00 Lakh each.

0.00 0.00 0.00 2500.00 2500.00 Towards 2500 Threshing Yards @ 1 each GramaPanchayath at an unit cost of Rs. 1 lakh each.

0.00 0.00 0.00 2250.00 2250.00 Towards 500 Grave Yard development at an unit cost of Rs. 4.50 lakh each

0.00 0.00 0.00 3000.00 3000.00 Towards 1000 Tank rejuvenation at an average unit cost of Rs. 3.00 lakh each.

0.00 0.00 0.00 630.00 630.00 Towards 1000 Drinking Water Borewell recharge structures @ Rs. 63,000/‐each.

Total 80603.10 45227.81 125900.91 36702.155 81929.965

9. Convergence Road Map for 2014 – 15 to 2016 – 17

Sl.No. Department 2014‐15 2015‐16 2016‐17 Remarks: Annual program 1 NBA 324.00 350.00 375.00 For 6 lakh IHHL every year 2 Forest 165.14 200.00 250.00 3000 Km. /100 lakh seedlings 3 Horticulture 78.83 86.71 95.38 Drip irrigation/nutritional garden 4 Sericulture 50.74 55.81 61.39 2000 Ha Mulberry plantation 5 Watershed 45.51 57.82 37.73 IWMP Watershed saturation 6 Animal Husbandry 15.42 16.96 18.86 Cattle sheds to SCs/STs 7 Agriculture 12.00 13.10 14.54 Vermi-composting etc 8 Fisheries 7.72 8.50 12.44 Fish ponds and Fish drying yards 9 Minor Irrigation 11.14 12.25 13.50 Tank rejuvenation

10

PRED: Playground 25.00 27.50 30.00 2500 playgrounds every year -do-: Threshing Yard 25.00 27.50 30.00 2500 threshing yards every year -do-: Graveyard development 22.50 24.75 30.23 500 graveyards development -do-:Tank rejuvenation 30.00 33.00 36.30 1000 tank rejuvenation -do-: Borewell recharge structure 6.30 6.93 7.25

1000 drinking water bore-well recharge structure every year

TOTAL 819.30 920.83 1012.62

10. Implementing agency wise Convergence

Plan I. MGNREGA – NBA CONVERGENCE

• MGNREGS Rs. 04,500/- increased to Rs. 05,400/-

• NBA Rs. 04,600/- Rs. 04,600/-

• Beneficiary Rs. 00,900/- TOTAL Rs. 10,000/‐ Rs. 10,000/‐

Rs. 10,000/- per unit of IHHL can be constructed even exclusively with MGNREGS funds. 5 Fruit Plants of Drumstick, Karipatta, Guava, Aonla, Mango/Sapota planned around every IHHL sump.

IEC ACTIVITIES

Door to door visits by Asha workers, Anganavadi workers, SaksharathaPreraks . Bill Collectors and Panchayath workers were used for extension activity. SHG’s and Elected GramaPanchayath Members were used for extension and in planning process. Appeal by CEO of ZP to all ZP,TP,GP and SHGs to involve and motivate community to Construct their toilets by using NBA & MGNREGA funds

Kala Jathas, Street Plays, Film Shows, School Competitions, GramaSabhas, Ward Sabhas, Exhibitions were conducted in convergence with all the Line Departments. Workshops were conducted to Engineers, PDOs and Related officers of district level, block level and Panchayath level. Capacity building programmes were conducted to GramaPanchayath Chairman, ZillaPanchayath Members, Block PanchayathMembers and GramaPanchayaths Members. Shramadhanprogrammes conducted at many places.

A special social audit of all IHHLs constructed during 2013-14 were conducted in March 2014 and the findings were encouraging, regarding quality, completion of construction and their usage. There are some shortcoming on which follow up actions are underway.

CONVER GENCE PRO CESS

IHHL: 20 13 – 14 Progress

Sl.No. Stat e T otal IHHL Ta rget To tal Ach., till

3 1.3.2014

1 B AGALKOT 12000 1007 5 2 ANGALOR

E 17919 1054 4

3 ANGALORE

18000 900 3 4 B ELGAUM 30000 3860 6 5 B ELLARY 22000 1399 8 6 B IDAR 15000 928 9 7 B IJAPUR 22000 1610 9 8 HAMARAJ

A 16000 1440 3

9 HICKMAGA

30001 1363 7 10 HIKBALLA

P 20000 1731 1

11 HITRADURG

20000 1411 9 12 D AVANGERE 30000 2457 2 13 D HARWAD 18000 1988 4 14 G ADAG 24000 1424 6 15 G ULBARGA 20000 1473 1 16 YADGIR 12000 1718 7 17 H ASSAN 25000 1310 8 18 H AVERI 22000 689 5 19 K ODAGU 12000 1599 2 20 K OLAR 30000 5405 1 21 K OPPAL 15000 1703 3 22 M ANDYA 25030 447 7 23 M (DK)

ANGALORE 5950 2904 6

24 M YSORE 30000 1351 9 25 R AICHUR 10000 1824 7 26 AMANAGA

R RA 16000 1247 3

27 S HIMOGA 20000 3478 0 28 T UMKUR 30000 1066 9 29 U DUPI 16218 928 2 30 U KANN ADA

TTAR 15920 823 1

RAND G TOTAL

600000 50551 7

II. MGNREGA CONVERGENCE WITH FOREST DEPARTMENT

a. Entire work under MGNREGS‐Implementation and Technical supervision by Forest Department:

i. All Block plantations of 10 acres and above in Forest/Government land/Institutional area

ii. All Roadside Plantations, except those within the village

iii. All Nursery Seedlings raising works

iv. Individual Farmer’s land planting & maintenance works

v. Soil & Moisture Conservation works in forest/wildlife/government land by DCF (T)/DCF

(WL)/DCF(SF) respectively

b. Entire work under MGNREGS‐Implementation by Gram Panchayath and Technical supervision by Forest Department

i. All Block plantations in Government land/ Institutional area below 10 acres

ii. Individual Farmer’s land planting & maintenance works

iii. Planting alongside roads within the village

iv. Soil & Moisture Conservation works outside Forest areas

c. Implementation methodology: The Action Plan of works for the entire duration of 5 years in case of plantation works, including advance works, creation & maintenance, shall be prepared by Line Department Taluka Level Officer, based on model cost estimates given by Head of the Forest department/Commissionerate of Rural Development. The Line department District Level Officers shall obtain the Action Plan of works; scrutinize them and send them for obtaining Gram Sabha Approval. After Gram Sabha approval, the same is sent by P.O. for obtaining approval of ZP. CEO ZP, who is the District Programme Coordinator, shall give administrative and financial approval to the Action Plan. The Line department shall give technical sanction to the Estimate of Work, for the entire duration of 5 years in case of plantation raising works, as per financial delegation and shall get the DPR frozen in P.O. Login and issue work launching order, based on seasonality and labour availability. The Taluka level officer of line department shall obtain e‐NMR from P.O. The line Department shall after executing the works and after closure of NMR and Check‐Measurement shall make payment through joint login of Talukaand District Officer into bank account of job‐card holder and vendor, in case of material payment.

The line department shall assist Gram Panchayaths in preparation of Action Plan, Sanctioning of Estimates and Check‐Measurement of works for implementation of works, which are taken up by them.

d. Ownership of trees: In case of Roadside plantations, tree‐patta shall be given to all adjoining farmers

as per TREE PATTA SCHEME G.O. No. FEE 50 FAP 2000 dated 19.6.2002. Wherever adjoining farm land is not there or he/she is not willing, in such cases

tree‐patta shall be given to the Job Card holder working for creation and maintenance of roadside plantation, in line with Mujaffarpur model, communicated by MoRD.

As per above G.O., in case of trees planted in Institutional areas and lands of other Government Departments, the cost of raising and maintenance of plantations for 3 years shall be under Departmental scheme /or MGNREGS. However, protection and further maintenance is the responsibility of concerned institution/community/ department, who shall have full rights regarding usufructs. However, the net income from final harvest of trees raised under the scheme shall be shared in the ratio of 50:50 between Government and the concerned institution/community/department.

In case of trees planted in Forest and in other Government Land, as per the scheme of Joint Forest Planning and Management in G.O. No. FEE 50 FAP 2000 dated 19.6.2002, Village Forest Committee shall be constituted and further maintenance and revenue sharing shall be carried out accordingly.

Fruit plants of Seetaphala, Aonla, Grafted Mango, Grafted Tamarind, Grafted Jackfruit etc planted inside or adjoining village may be entrusted to SHGs for protection and maintenance @ 1 km each, who will have usufruct rights, while the trees will belong to the Gram Panchayath.

e. Outcome measurement:

Survival and growth are the primary criteria to monitor success. However, department need to provide the expected outcomes and methodology to measure them.

f. MGNREGA Convergence Framework: FOREST DEPARTMENT

Sl. No.

Activity With Schemes Annual physical target

Implementing Agency

Remarks

1 SMC Works in plantations and Forest areas

NAP, Bamboo Mission, KFDF, CAMPA , 13th FC, DDF, etc.,

10,000 Ha. Territorial DCFs 100 Ha per Taluka

2 Afforestation outside forest area

PMGSY roadside planting 3000 Km

Social Forestry DCFs

30‐40 Km per Taluka

Other roadside planting 1000 Km 10‐20 Km per Taluka

Institutional area planting 3000 Ha 30 Ha per Taluka Canal Bank / Other Govt., Land planting

3000 Ha 30 Ha per Taluka

10,000 Ha/Km

3

Farm Forestry (Individual beneficiary work, including kitchen garden at homestead/NBA toilet sumps)

Exclusive MGNREGS funds 100 lakh seedling Social Forestry DCFs

Not more than 10 lakh per District

4

Wildlife Improvement works‐SMC like Check dam, NalaBunds / Water Hole creation/ Tank Rejuvenation

Wildlife Management programmes

As per actual requirement

Wildlife CFs/DCFs

Page 13of 22

g. MGNREGS-Forest Convergence Framework:

Sl.

No.

Particulars of

Plantation Works

Type of activities to be executed under Dept. Budget Head

Type of activities to be executed under MGNREGS

1 Advance Works -Nursery Development

-Raising of Seedlings

-Pitting works-

Trenching works 2 Creation

ofPlantations

Planting, Cattle Proof TrenchesWatch &

-SMC Works

-Weeding/Soil Working/Hoeing

3 Maintenance ofplantations

-Casualty replacements

- Watch & Wards -Soil Working -

Weeding

Fire tracing

h. Forestry Model Cost Estimates sanctioned during 2013-14

Model

No. Type of Plantation No. of Plants 2013-14 2014-15 2015-16 2016-17 2017-18 Total Wage:

Material

Date of issue

09 1. Roadside plantation

200/Km

(Pit model) 76900 76500 41510 43320 46470 284700 70:30 13-8-2013 &

05-10-2013

01

2. Farm Forestry – Teak

100/Ha (Pit model)

960 4670 900 870 - 7400 78:22 29-10-2013

02 -do- – Silver Oak 100/Ha

(Pit model) 1150 4670 910 870 - 7600 75:25 29-10-2013

03

-do- – Fruit Yielding /Bio-fuel

100/Ha

(Pit model) 1800 7860 1170 870 - 11700 73:27 29-10-2013

3. Plantation in Govt. land

04

Fruit/Fodder/Bio fuelPlantation

400/Ha

(Pit model) 35150 16780 12300 12120 14250 90600 84:16 29-10-2013

06

Irrigated FruitOrchard

100/Ha

(Pit model) 37100 30650 17500 17200 9850 112300 74:36 29-10-2013

07

Fruit/Fodder/Bio fuelPlantation

800/Ha

Trench

61750 32700 20600 20500 22050 188500 88:12 29-10-2013

08 Firewood Plantation 1200/Ha

Trench

54400 27700 17100 15500 13100 127800 89:11 29-10-2013

05

4. Plantation in School/ Institutions

200/Ha

(Pit model) 25750 39900 5500 1520 1530 74200 75:25 29-10-2013

10

-do- – Bio- fencingPlantation

270/100 m

Trench

1850 23240 5870 5280 4960 41200 86:14 08-01-2014

03 (II)

5. Farm Forestry– (Meliadubia)

140/Ha (Pit model)

2750 10905 1660 1215 - 16530 66:34 08-01-2014

01 (I)

6. Farm Forestry(Teak block pltn)

640/Acre 5000 29000 6200 5450 - 45650 77:23 11.02.2014

III. CON VERGENCE WITH HORTICULTUR E

a. Present status

Horticulture Department is one of the major department since 1963 with 410 farms & nurseries (15732 acres) and 23 parks & gardens. The state is one of the leading producer of Flowers, Plantation crops , Vegetable and Fruits. Karnataka stands 3rd& 7th rank in Horticulture Area and Production in the country respectively.

b. Requirements identified

� Sustainable land development activities � Strengthening soil and water conservation � Maintenance of Horticulture garden/plantation � Rejuvenation of unproductive gardens /senile plantations

c. Activities considered for convergence � Development of fruit gardens / plantation crop gardens � Bund plantation of horticultural crops � Rejuvenation of coconut, mango, cashew and lime orchards � Drip irrigation in new AEP pilots � Water storage tanks � Opening of trenches /catch pits, Pitting, Watering, Weeding, Bio-fencing � Nutritional gardens

d. Schemes considered for convergence

� Central Sector Schemes – National Horticulture Mission (NHM) ‐ National Mission on Micro-Irrigation ‐ Coconut development Schems

� State /District Sector Schemes

Assistance to farmers for development of horticulture gardens Comprehensive Development of Horticulture (CHD)

e. Expected Outcome of Convergence � Enabling higher number of beneficiary coverage � Effective channelization of production resource & investment � Conversion of unproductive and senile orchards/plantation � Development of quality orchards

� Economic and nutritional improvement and sustainalbility

f. Cost models approved and issued

SI. No Crops

Spacing (m)

Material cost (in Rs.)

Labourcost (in Rs.)

Total (in Rs.)

1 Grape (seedless) 3.5X1.8 159958 66128.3 226086 2 Grape (seeded) 7.5X3.5 124050 27989 152039 3 Areca nut 2.7X2.7 22785 64914 87699 4 Drumstick 2X2 14940 35554 50494 5 Mango 6X6 14045 26396 40441 6 Pomegranate 5X5 17797 17554 35351 7 Custered apple 4.5X4.5 10023 23833 33856

8 Pepper (in Areca garden) 2.7X2.7 12389 20884 33273

9 Amla 5X5 7584 21433 29017 10 Coconut 9X9 7800 21121 28921 11 Tamarind 8X8 8801 19868 28669 12 Guava 6X6 12021 14566 26587 13 Mango 10x10 11707 14684 26391 14 Sapota 10X10 11707 14684 26391 15 Oil palm 9X9X9 12963 12619 25582 16 Ber 6X6 6214 17233 23447 17 Cashew 7.5X7.5 7238 12176 19414 18 Jamun 8X9 3821 13200 17021

19 Pepper (in Coconut garden)

8X8 2491 5772 8263

g. Horticulture department Convergence Plan for 2014‐15 (Rs. in Crores)

SI. No Programme

Total Area (in Acre)

Dept. share

MGNREGA share

Total Budget

1 Installation of Drip irrigation in new AEP plots 5625 46.96 12.84 59.80 2 Rejuvenation of coconut gardens 1050 1.13 0.17 1.30

3 Individual Water Storage Tanks under NHM, in convergence 105 1.04 1.43 2.47

4 Installing Drip and sprinkler irrigation facilities in already est. gardens under MGNREGS 4036 14.77 1.30 16.07

5. Planting 5 Fruit Plants around IHHL/Houses under IAY/AshryaYojana 95,000 (No.) 1.00 3.05 4.05

6 Nutritional garden in schools/hostels/ hospitals 1200 (No.) 0.24 0.56 0.80

7 INM/IPM in already established gardens under MGNREGS 6,000 (No.) 0.96 0.02 0.98

8 Water storage tanks in already est. gardens under MGNREGS 2,500(No) 0 47.14 47.14

9 Area Expansion Programme 1950 0 12.32 12.32

Total 12766 66.10 78.83 144.93

h. HORTICULTURE ROADMAP for 2014 -15 to 2016-17 (Rs. in Crores)

SI. No Programme 2014-15 2015-16 2016-17

1 Installation of Drip Irrigation in new AEP plots 12.84 14.17 15.00 2 Rejuvenation of coconut gardens 0.17 0.19 0.20

3 Individual Water Storage Tanks under NHM, in convergence with NREGS 1.43 1.58 1.75

4 Installing Drip and sprinkler irrigation facilities in already est. garden under MGNREGS

1.30 1.42 1.50

5. Planting 5 Fruit Plants around IHHL/Houses underIAY/Ashrya houses etc

3.05 3.36 3.50

6 Nutritional garden in schools/hostels/ hospitals 0.56 0.62 0.75

7 INM/IPM in already established gardens under

MGNREGS 0.02 0.02 0.03

8 Water storage tanks in already established gardens under MGNREGS 47.14 53.03 60.33

9 Area expansion programme 12.32 12.32 12.32

Total 78.83 86.71 95.38

IV. CONVERGENCE WITH SERICULTURE

a. Model Cost Estimate sanctioned:-

1. Raising of Mulberry Nursery (1065 plants/acre): Rs. 143,000/- 2. Raising of Mulberry Plantation (5445 plants/acre): Rs. 1,39,666/-

3. Maintenance of 2nd/3rd year Mulberry Plantation: Rs. 1,71,074/-

4. Compost Pit: Rs.3300/-

b. MGNREGA –Sericulture Dept. Convergence Plan (Rs. in lakhs)

SlNo

Year Programme Total area

(acre) Department

share MGNREGS share Convergence

Total Labour Material Total 1 2 3 4 5 6 7 8 9 (5+8) 1 2014-15 Est. of New

Mulberry plantation 5,000 4190 3628 1446 5074 9264

2 2015-16 - do- 6,250 5238 3991 1591 5582 10820 3 2016-17 - do- 6,250 5238 4176 1694 5870 1110.8

V. CONVERGENCE WITH WATERSHED PROGRAMMES

i. Convergence of IWMP WITH MGNREGA IWMP

• The objectives are to reduce and prevent soil erosion, regenerate natural vegetation, increase rain water impounding and recharge ground water table

• IWMP adopts a sub-watershed approach consisting of hydro geological units normally averaging 5000 ha. Cutting across several GPs jurisdiction.

• All activities of soil & water conservation measures on all lands within watershed irrespective of land ownership and socio-economic restriction

Convergence of IWMP with MGNREGA • Unit Cost under IWMP: Plain Areas: Rs.12000/ha (Rs.7200/ha for work

component); Hilly & Desert Areas: Rs.15000/ha (Rs.9000/ha for work component)

• The additional activities planned in excess of IWMP grants to saturate these watersheds are proposed for taking up under MGNREGA.

• The additional activities mainly on common land and drainage line and eligible individual farmers land shall be taken up under MGNREGA.

• Preparation of entire action plan through PRA, • Obtaining approval of Grama Sabha for entire action plan.

ii. CONVERGENCE of IWMP with MGNREGA

Sl. No.

Batch / Year

Year for MGNREGS

Works Activities Proposed Extent

in Ha. No of

Structures Amount

(Rs. In Crores)

1 BATCH-

1 2014-15 Check Dams, Nala Bunds,

Vented Dams etc 37,928 2188 45.51

2 BATCH-

2 2015-16 Check Dams, Nala Bunds,

Vented Dams etc 52,103 2976 57.82

3 BATCH-

3 2016-17 Check Dams, Nala Bunds,

Vented Dams etc 31,443 1797 37.73

TOTAL 1,21,474 6961 141.06

VI. MGNREGA CONVERGENCE WITH AGRICULTURE DEPARTMENT

Model Cost Estimates sanctioned for: 1. Vermi-compost pit Rs.. 20,500/-

2. NADP Compost pit: Rs. 22700/-

3. Liquid Bio -manure Pit: Rs. 2983/-

Agriculture Department Convergence Plan for the year 2014‐15 under MGNREGA (Rs. In Crores)

Sl. No.

Particulars of Components Planned

Physical Nos.

Total Cost

Cost under MGNREGS

Cost to be borne by KSDA

Cost to be borne by beneficiaries

1 Vermi-compost pits 6250 12.81 6.9 2.50 3.41 2 Liquid bio-manure pits 40200 11.99 5.1 2.01 4.88

Total 46450 24.80 12.0 4.51 8.29

Convergence Plan for the year 2015‐16 under MGNREGA (Rs. In Crores)

Sl. No.

Particulars of proposed work

Physical Nos.

Total Cost

Cost under MGNREGS

Cost to be borne by KSDA

Cost to be borne by beneficiaries

1 Vermi-compost pits 6875 14.09 7.4 2.75 3.94 2 Liquid bio-manure pits 45000 13.42 5.7 2.25 5.47

Total 51875 27.51 13.1 5.00 9.41 Convergence Plan for the year 2016‐17 under MGNREGA

(Rs. In Crores)

Sl. No.

Particulars of proposed work

Physical Nos.

Total Cost

Cost under MGNREGS

Cost to be borne by KSDA

Cost to be borne by beneficiaries

1 Vermi-compost pits 7500 15.38 8.,27 3.00 4.11 2 Liquid bio-manure pits 49950 14.90 6.27 2.50 6.13

Total 57450 30.28 14.54 5.50 10.24

Outcome: Increasing production organic manure in farmer’s field, thus enriching the soil organic matter content which in turn leads to enhanced agricultural productivity.

VII. CONVERGENCE WITH ANIMAL HUSBANDRY DEPARTMENT

Animal Husbandry department has programme during 2014‐15 under state SCP and TSP to provide 3326 scheduled caste and 1080 scheduled tribe beneficiaries @ Rs. 70,000/‐each for providing two cows to each. Out of this, Rs. 11500/‐is towards cattlesheds, which shall be converged with MGNREGA for construction of proper Cattlesheds at an unit cost of Rs. 35,000/‐each to SC/ST beneficiaries

(Rs. in lakhs)

Sl. No.

Important components

planned

Financial Convergence Technical &

Pre/post Convergence Total convergence

plan amount under MGNREGA Target under

Departmental programmes

Target under MGNREGA

Total amount under Financial

Convergence

Amount required under MGNREGA

1 2 3 4 5 6 7 1 Cattle‐sheds 506.69 1035.41 1542.10 0.00 1035.41

Total 506.69 1035.41 1542.10 0.00 1035.41

VIII. CONVERGENCE WITH FISHERIES DEPARTMENT

Fisheries department during the year do not have any programme to provide fish fingerlings. Hence MoRD has been requested to include Fisheries as one of the eligible income generating works under individual category. Till then only Fish ponds and Fish drying yards have been approved under MGNREGA and accordingly technical convergence plan with Fisheries department has been planned.

(Rs. in lakhs)

Sl. No.

Important components planned

Financial Convergence Technical & Pre/post

Convergence Total convergence plan amount under MGNREGA

Target under Departmental programmes

Target under MGNREGA

Total amount under Financial Convergence

Amount required under MGNREGA

1 2 3 4 5 6 7

1 Fish Ponds 0.00 1244.410 1244.410 0.00 1244.410 2 Fish Drying Yards 0.00 41.886 41.886 0.00 41.886

Total 0.00 1286.296 1286.296 0.00 1286.296

IX. CONVERGENCE WITH MINOR IRRIGATION DEPARTMENT

There is a lot of scope for tank rejuvenation works. However most of the Minor irrigation tanks have recently been tackled either under World Bank assisted Karnataka Community Based Tank Management project and remaining being tacked under RRR programme. They have been requested to take up tank rejuvenation works under MGNREGA for works, which can be undertaken by MGNREGA Workers, viz Feeder channel clearance, Shrubs and weeds removal from Bund and irrigation canal desiltation and after which tender work under departmental programmes to be undertaken.

(Rs. in lakhs)

Sl. No.

Important components planned

Financial Convergence Technical & Pre/post

Convergence Total convergence plan amount under MGNREGA

Target under Departmental programmes

Target under MGNREGA

Total amount under Financial Convergence

Amount required under MGNREGA

1 2 3 4 5 6 7

1 Rejuvenation of Tank Works 0.00 1113.65 1113.65 0.00 1113.65

Total 0.00 1113.65 1113.65 0.00 1113.65

11. Hon’ble Chief Ministers 15 point programme

Hon’ble Chief Minister of Karnataka on 26t h October launched 15 RD&PR

programmes, out of which 10 programmes are being implemented under MGNREGA. With a purpose to take the programmes of the scheme to the people, 50,000 sets of Kannada and 1000 sets of English booklets on the below mentioned subjects were released and made available to all the Gram Panchayaths and field level functionaries. Details of the works and mode of implementation have been covered in local, easily graspable language.

i . Farmers’ Land Development

i i . Toilet to every home

i i i . Our Vil lage – Our Water

iv . Our Village Tank (12,000 tanks targeted to be rejuvenated)

v. Sheep / Cattle Sheds

vi . Developing Burial Grounds (5000 targeted @ one per GP)

vii . Our Land‐Our Way

vii i . Play Grounds (5000 no, @ one per GP)

ix . Farmers’ Threshing Yard

x. Rajiv Gandhi Seva Kendra

12. Asset Creation

Asset creation has been given due importance under the scheme – whether implemented fully under MGNREGS or in convergence with other programmes of line departments. Enough measures are in place to ensure creation of tangible / measureable assets while providing employment. To quote a few such assets:

i. Water harvesting and conservation structures like farm ponds, check dams, contour trenches, farm bunds, boulder checks, drip and sprinkler irrigation systems, de silting of irrigation tanks and other water bodies.

ii. Forestry Plantation – Block Plantation, Road Side Plantation, Plantation along bunds, irrigation tanks, Farm forestry, etc.

iii. Horticulture Plantation – Fruit, Plantation and Spice Crops Plantation in eligible farmers’ farms, Govt. Horticultural farms etc.

iv. Sericulture Plantation of mulberry in eligible farmers’ land. v. Flood preventing protective structures. vi. Construction of IHHL, IAY Houses, Anganawaadi Buildings, BharathNirman Rajiv

Gandhi Seva Kendra.

vii. All weather roads – building and maintenance.

13. Summary of guidelines / directions issued to the heads of the line departments and State Nodal officers of MGNREGS (through regular meetings and video conferences)

i. Field level officers and staff to conduct survey at village level in due consultation with the Villagers, Gram Panchayat members and other organizations to find out the

demand for work and the works which are in demand in public land as well as the lands of private individuals. Based on this, concerned department and Chief Executive Officers of Zilla Panchayats to prepare a list of indicative eligible works along with indicative targets after due consultation with the field level and district level officers. The same to be communicated to the field level officers, who would in turn, would place the list with suitable alterations suiting to the local needs before the gramasabha for approval.

ii. Heads of the departments to make financial provision under their departmental schemes, to enable financial convergence with the MGNREGS. Line departments to prepare a comprehensive action plan with financial and physical indicative targets for

a. Works to be taken up fully under MGNREGS b. Works involving financial convergence with departmental schemes c. Works involving technical convergence only

iii. Line departments to prepare road map of convergence for the next three financial years – 2014‐15, 2015‐16 and 2016‐17.

iv. Commissionerate of Rural Development to conduct meeting of state level nodal officers every month. Video conference with the implementing officers to be conducted every month.

v. Executive officers of Block Panchayat at block level and Chief Executive Officers at Zilla Panchayat level to conduct regular review meetings exclusively for line departments to review the progress, issue necessary guidelines and clarifications and to solve field level problems.

vi. Since, taluk (block) has been declared as implementation unit for the line departments, Executive Officers (Programme Officers) of Block Panchayat to create

and issue e‐NMRs to the taluk (block) level implementing officers of line departments. Taluk / Block level line department officers to place work demand online only to programme officers of block Panchayat, to ensure timely issuance of

e‐NMR and such other follow ups.

vii. Line departments especially developmental departments like – Agriculture, Horticulture, Forestry, Sericulture and Animal Husbandry to prepare and get approval for a variety (in terms of capacity, design, needs etc.) of model estimates to have better flexibility, while implementing and to provide different needy options for the beneficiary.

viii. Wage, Material and Administrative expenses incurred from the login of block level officers of implementing departments only to be computed for the progress of the concerned line department from here afterwards.

ix. Ridge to Valley Concept: A joint circular by Additional Chief Secretary, RD&PR Department and Principal Secretary, Agriculture Department have been issued, vide No. RDP/186/EGS/2013 for taking up comprehensive development of watershed.Watersheds identified and chosen for implementing Integrated Watershed

Management Project (IWMP) to be considered as a single unit for treating the entire area comprehensively to have better impact. Under MGNREGA all soil and moisture conservation works in public land and individual Land development works in the lands of eligible beneficiaries are to be taken up, so as to saturate the watershed.

In watershed areas which do not fall under IWMP, entire public land treatment and land development works of eligible beneficiaries are to be taken up under MGNREGA. In both these kinds of watersheds, if there are any private lands belonging to farmers other than those eligible ones under the act, like those of medium and large holdings, watershed works to be taken up under IWMP or other schemes of Watershed Development Department. The entire watershed has to be treated comprehensively until saturation.

x. Benefits to eligible beneficiaries only: A clear directive from the Commissionerate of Rural Development has been issued to all the implementing officers as per the circular No. RDP 417 MGNREGS 2014 Dt. 21.04.2014, clarifying the selection of eligible beneficiaries listed in the MoRD Notification Dt. 21.12.2013, on priority basis for implementing individual works. It has been directed to first take up the beneficiaries belonging to Scheduled Cast and Scheduled Tribes and then consider the other 8 categories, after exhausting which only the beneficiaries belonging to small and marginal categories to be considered. In cases, where the works are executed fully under MGNREGS, all the works bearing more than 40% material cost are to be invariably earmarked and executed in fields of Scheduled Cast and Scheduled Tribes only. If the beneficiaries belonging to other eligible categories come forward to contribute to meet the excess material cost (of more than 40%), then they could be considered for such material intensive works, like Cattlesheds, under individual category.

xi. Line departments have been directed to identify and mobilize workers of their own, register them in groups of 15 to 20 members (called as KAYAKA BANDHUS)

xii. Block wise and district wise list of beneficiaries who were provided with cattle under Special Component Plan (SCP) and Tribal Sub-Plan (TSP) by the State Animal Husbandry Department during the financial year 2013-14 is available at the block and district level. The department has been requested to take action to build cattle sheds to those beneficiaries who don’t have the one, under MGNREGS. The department has also been requested to furnish the list of identified beneficiaries under SCP and TSP for the financial year 2014-15, to take up building of cattle shed to the beneficiaries.

xiii. Administrative Expenditure: Permission has been accorded to implementing officers of line departments to utilize one percent of the wage expenditure incurred from their login for essential administrative requirements, as per letter no.RDP/186/NREGS/2013, dated 30-04-2014.

14. Financial Progress of Line Department works:

A total of Rs. 18484.00 lakhs has been incurred as expenditure for the works of line departments during the year 2013-14, of which Rs. 9761.00 lakhs was from the login of Gram Panchayaths and Rs. 8723.00 lakhs was from the login of implementing officers

of line departments. Out of this, Rs. 4227.00 lakhs was incurred from the login of officers of Forest Department and Rs. 3635.00 lakhs was booked from the login of officers of Watershed Development Department. As all the payments (of both wage and material) in the state are being

realised online through e‐FMS, the less incurrence of expenditure from the login of implementing officers of line departments is obvious because of the time taken to bring all the implementing

officers of line departments under e‐FMS net. However, the expenditure from their login is

expected to pick up during the financial year 2014‐15. For this it is requested to provide i) DPR Freezing, ii) NMR Generation and iii) Material bill generation from the login of Line Department.

(T. M. Vijaybhaskar) Additional Chief Secretary to Government

Rural Development &Panchayath Raj Department Government of Karnataka, Bangalore

8. Latest MoRD circulars on Planning and Labour Budget Preparation

No J-11060/51/2011-MGNREGA

Government of India Ministry of Rural Development

Department of Rural Development (Mahatma Gandhi NREGA Division)

KrishiBhavan New Delhi Dated 13th May 2014.

To The Spl CS/Principal Secretary/Secretary Rural Development (in charge of MGNREGS)

Subject: Electronic Fund Management System (eFMS) and the plan of action for extending to non-eFMS areas.

Sir/Madam,

With a view to bring transparency in implementation and to optimise use of resources, this Ministry has introduced the Electronic Fund Management System (eFMS) in MGNREGS. The eFMS operates on a principle of decentralized decision-making and fund management at the State level. Under this system, every expenditure point is electronically linked to the central server through which the implementing agencies can generate fund transfer orders that automatically pull the required amount from the State Fund and credit the account of the end users (wage seekers or suppliers). Since this system not only promises reduction of delays in payments, corruption, parking of funds; and increases transparency and optimization of resource utilisation, all States have been mandated to adopt it, in phases if need be. So far, 16 States have made substantial progress in implementing the eFMS.

2. Since IT connectivity is important for implementing the eFMS, it is proposed to take Block as the implementing unit. Further, it is proposed to use the facilities of broadband connectivity provided at the Citizen Service Centres(CSCs) set up by Department of IT under the National e-Governance Plan. A closer coordination with the CSC-SPV could resolve issues of connectivity in some areas.

3. Based on the Block-wise state of connectivity, the following course of action is proposed which could also act as the perspective plan for extension of eFMS gradually to all areas:

Status of connectivity

Number of Blocks % Action plan

Blocks having Broadband 4,322 65%

Continue in implementation level and implement all types of payments

No broadband, but there are CSCs with broadband

1,906 29%

Allow data entry through CSCs and bring them under the eFMS from August 2014.

No broadband, no CSC 261 4%

Request DEITY to set up VSAT (we share the costs of the equipment and DEITY provides the satellite bandwidth) after due verification with the State Governments. Can be brought under eFMS from October 2014.

Not participated in survey 112 2%

To be checked with the State Government concerned.

Total Blocks 6,601 100% The detailed list of the Blocks in each of these categories is placed on the website.

4. All State Governments are requested to convey observations/comments if any, before 30th May 2014 in the format uploaded on website on (a) the details of connectivity in non-eFMS Blocks and (b) functioning of CSCs in the Blocks which have otherwise no broadband connectivity. They are also requested to have a discussion with the IT department of their State on use of CSCs for data entry. This matter will be discussed in the PRC meeting scheduled for 5th and 6thJune 2014 for finalizing perspective plan for eFMS.

Yours faithfully (R.Subrahmanyam)JS,

MGNREGS (RE-I)

No..1-11060/0112011 — MGNREGA-i Government of India

Ministry of Rural development

Department of Rural Development (Mahatma Gandhi NREGA Division)

KrishiBhawan , New Delhi, Dated 2nd August, 2011

To,

All State Principal Secretaries / Secretaries of Rural Development

Subject: Introduction of the Business Correspondence model for speedy disbursal of payments to workers under Mahatma Gandhi NREGA

Dear Sir/Madam

With a view to infusing transparency and enhancing the integrity of wage payment under Mahatma

Gandhi NREGA, and also to encourage savings among the rural poor, Schedule II of Mahatma Gandhi NREGA Act

has been amended to make wage disbursement to Mahatma Gandhi NREGA workers through institutional

accounts in Banks of Post Offices a statutory requirement. The pace of financial inclusion under Mahatma

Gandhi NREGA has surpassed the pace of institutional outreach of Banks and Post Offices as well as their

current capacity to manage such a large number of accounts. This has led to delay in wage disbursements

which legally entails payments of compensation. It is imperative therefore that the twin legal mandates of wage

payments within the stipulated 15 days as well as of wage disbursement through institutional accounts be

scrupulously adhered to.

2. To strengthen the institutional outreach for Mahatma Gandhi NREGA wage disbursement the

option of the Business Correspondence model has been under discussion for some time. This issue was, inter-

alia, extensively discussed in the National Workshop on Social Audit under Mahatma Gandhi NREGA held at

VigyanBhavan, New Delhi on 19th July, 2011 under the Chairmanship of Union Minister for Rural Development

who has desired to take a decision in the matter on priority.

3. Now, it has been decided that State Governments should roll out the model to make wage

payment through Banks with Bio-metric authentication at village level. For this provision, the Bank can follow

Business Correspondent Model. This should be done by State Governments on competitive bid from Banks by

inviting Expression of Interest (E01)/ Request for Qualification (RFQ). The fee/remittance charges to be paid to

Banks/Business Correspondents, etc by way of fixed charges per account or a percentage of the transaction

value should not, however, exceed Rs. 80 per annum per active account through which transaction for

MGNRGA works has been made during the year. In case the amount exceeds the limit of Rs. 80/- per annum

per active account, it would be met by the State Government from its own budget. The service charges to be paid

may be absorbed in the 6% administrative expenses admissible in Mahatma Gandhi NREGA.

All the State Governments are, therefore, advised to identify unserved areas where the BC model

may be required and roll out the Business Correspondent Model as per procedure detailed above. A monthly

progress report on this account may be sent to the Ministry regularly. The bidding documents used by some of

the States are attached for information.

Yours faithfully,

(D. IC Jain) Joint Secretary to the Government of India

No. M-12014/8/2a06-NREGA (Part) Government of India

Ministry of Rural Development (Mahatma Gandhi NREGA Division)

KrishiBhawan, New Delhi Dated the 4th March, 2010

To The Principal Secretary/Secretary (Rural Development) All States/UTs

Dear Sir/Madam, •

With a view to infusing transparency and enhancing the integrity of wage payment under Mahatma Gandhi NREGA, and also to encourage savings among the rural poor, Schedule II of Mahatma Gandhi NREGA Act has been amended to make wage disbursement to Mahatma Gandhi NREGA workers through institutional accounts in Banks or Post Offices a statutory requirement. Accordingly, as of now 8.60 crore Mahatma Gandhi NREGA workers accounts have been opened in the Banks and Post Offices. About 82% of wages i.e. nearly about Rs. 16959.14 crores of wages have been disbursed through these accounts up to December, 2009 constituting 70 per cent of the total expenditure under Mahatma Gandhi NREGA.

2. The pace of financial inclusion under Mahatma Gandhi NREGA has surpassed the pace of institutional outreach of Banks and Post Offices as well as their current capacity to manage such a large number of accounts. This has led to delay in wage disbursements which legally entails payment of compensation. It is imperative therefore that the twin legal mandates of wage payments within the stipulated 15 days as well as of wage disbursement through institutional accounts be scrupulously adhered to.

3. To strengthen the institutional outreach for Mahatma Gandhi NREGA wage disbursement the option of the Business Correspondence model has been under discussion for some time. While this model holds potential for reaching out to Mahatma Gandhi NREGA workers in yet un-reached areas, the service charge of 2% sought by the Banks for appointing business correspondents has discouraged State Governments from using the model.

4. As a result of several discussions, it has emerged if a Bank takes the initiative, it would be possible for it to absorb the business correspondent service costs within the float available from the volume of funds placed with it

5. Accordingly, States may identify unnerved areas where the BC model may be required and discuss wk4i-banks the possibility of extending the BC model in these areas. The possibility of using SeffHelp Groups in this may also-be examined.

6. To ensure that there are no backlogs in wage disbursements the DPCs will ensure that the Gram RozgarDiwas will be held compulsorily every month on a pre-announced date at the Gram Panchayat level in which all the Mahatma Gandhi NREGA workers will be called and all issues pertaining .to wage payments will be resolved.• For this purpose, the. District Programme Coordinator will deploy the administrative resource available in the district like the Revenue personnel for monitoring timely payments. This system of monthly verification for the wage payment will be compulsory implemented through out the State.

7. Any delay in wage payments by any agencies/ persons or any unfair means in wage payment which deprives the workers of their due wage amount will -be punishable under Section 25 of the Act. The District Programme Coordinator will be responsible for invoking this section to ensure that the DPC/s function under Section 14 (2) of the Act is properly discharged. Appropriate compensation will be payable to NREGA workers in case wages are paid beyond 15 days of work done. The institutional agency responsible for delay in wage payment to administrative machinery or the financial institution whichever the case may be,_will be responsible for paying the compensation.

Yours sincerely,

(AMITA SHARMA)

Joint Secretary