evaluating household level impact of mgnrega scheme in
TRANSCRIPT
Evaluating Household Level Impact of
MGNREGA Scheme in Tamil Nadu: A Case
Study
Dr. Sonkhogin Haokip1
D. Sivakumar2
Abstract:
The MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) is
the biggest social protection scheme ever launched in independent India, which provide legal
guarantee for wage employment to the rural households. Incorporated as legislation in 2005,
MGNREGS is a self-targeted, labour-intensive public works programme that takes a rights-based
and demand-driven approach to employment. It aims to enhance livelihood security in rural areas
by guaranteeing 100 days of employment per year to each rural household at specified wages. It
is widely implemented throughout India since April 2008 and despite certain implementation
issues, it has been appreciated for reasons including empowering rural women, bringing back
home the dignity of labour, reducing distress migration, and generating employment for the poor
households in villages. However, the real question is whether MGNREGS has truly helped those
who participate in it in a cost-effective manner. This and related questions are addressed in this
paper by taking up case studies in 6 villages across three districts of Tamil Nadu.
This paper is an extract from a Ph. D Thesis titled Household and Village Level Impact
of MGNREGS on Governance at the Grassroots: An Assessment of Gram Panchayats in
Tamil Nadu.
Keywords: MGNREGS, Demand driven, cost-effective manner, rural women
1 Dr. Sonkhogin Haokip teaches in the Department of Political Science and Development Administration, The
Gandhigram Rural Institute – Deemed to be University. Gandhigram. E-mail: [email protected]
2 D. Sivakumar is a full time research Scholar in the Department of Political Science and Development
Administration, The Gandhigram Rural Institute – Deemed to be University. Gandhigram. Tamil Nadu
E-mail: [email protected]
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Evaluating Household Level Impact of MGNREGA Scheme in Tamil Nadu: A Case
Study
The MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) is the
biggest social protection scheme ever launched in independent India, which provide legal
guarantee for wage employment to the rural households. Incorporated as legislation in 2005, it is
a self-targeted, labour-intensive public works programme that takes a rights-based and demand-
driven approach to employment. It is widely implemented throughout India since April 2008 and
despite certain implementation issues, it has been appreciated for reasons including empowering
rural women, bringing back home the dignity of labour, reducing distress migration, and
generating employment for the poor households in villages. However, the real question is
whether MGNREGS has truly helped those who participate in it in a cost-effective manner. This
and related questions are addressed in this paper by evaluating the household level impact of
MGNREGS in 6 villages across three districts of Tamil Nadu.
Table 1- Frequency and Per Cent distribution of Respondents by Social, Economic and
Demographic Characteristics
Non Beneficiaries Beneficiaries
Frequency % Frequency %
Age
18 to 25 24 8.0 27 9.0
26 to 36 106 35.3 130 43.3
37 to 47 129 43.0 105 35.0
47 to 60 29 9.7 28 9.3
above 60 12 4.0 10 3.3
Community SC 56 18.7 150 50.0
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OBC 244 81.3 150 50.0
Marital Status
Married 269 89.7 279 93.0
Unmarried 1 0.3 1 0.3
Separated 3 1.0 19 6.3
Widow 27 9.0 1 0.3
Religion
Hindu 209 69.7 204 68.0
Muslim 31 10.3 19 6.3
Christian 60 20.0 77 25.7
Education
Illiterate 73 24.3 72 24.0
1st to 5th 83 27.7 30 10.0
5th to 10th 91 30.3 110 36.7
11th to 12th 46 15.3 88 29.3
UG 7 2.3 0 0.0
BPL card
holding
Yes 0 0.0 300 100.0
No 300 100.0 0 0.0
Ration card
color
Red 156 52.0 178 59.3
Blue 141 47.0 121 40.3
No ration card 3 1.0 1 0.3
Land Ownership
Landless 18 3.0
Less than 10 cents 380 63.3
10 - 49 cents 175 29.2
50 - 99 cents 19 3.2
More than 100 cents 8 1.3
Type of houses
Kuthca house 84 14.0
Hut house 6 1.0
IAY house 42 7.0
Pucca House 468 78.0
Source of
drinking water
Public 142 23.7
Own 352 58.7
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Neighbours 106 17.7
Source: computed – Field Data
Table 1 presents the frequency and per cent distribution of respondents by social, economic and
demographic characteristics. From the table we can see that 43.3 per cent of beneficiary
respondents and 35.3 per cent of non- beneficiary respondents are between 26 and 36 years in
age; 35.0 per cent beneficiary respondents and 43.0 per cent of non- beneficiary respondents are
in the age group of 37- 47 years; 9.3 per cent of beneficiary respondents and 9.7 per cent of non-
beneficiaries are in the age group of 47-60 years, and 9.0 per cent of beneficiary respondents and
8.0 per cent of non- beneficiary respondents are in the age group 60 years and above.
Community wise, while there is no representation from the STs (Scheduled Tribes), majority
(81.3%) of the beneficiary respondents belongs to SC whereas OBC constitutes 50 per cent of
the sampled beneficiary respondents. An overwhelming majority (93%) of the sampled
beneficiary respondents and majority (89.7%) of non beneficiary respondents are married. 68.0
per cent of beneficiary respondents and 69.0 per cent of non-beneficiary respondents are Hindus
and 25.7 per cent of beneficiary respondents and 20.0 per cent of non beneficiary respondents are
Christians whereas Muslims comprises of 6.3 beneficiary respondents and 10.3 per cent non
beneficiary respondents. Literacy wise, 36.7 per cent of beneficiary respondents and 30.3 per
cent of non-beneficiary respondents have studied up 10th standard whereas 24.0 per cent of
beneficiary respondents and 24.1 per cent of non-beneficiary respondents are illiterate. In terms
of land ownership, only 18 respondents (3.0%) are landless whereas majority (63.3%) of per
cent are have less than 10 cents and 29.2 per cent of the respondents have 10 to 49 cents. While
majority (78.0%) of the sampled respondents lives in Pucca house, only 14.0 per cent lives in
Kutcha house. Interestingly, 7.0 per cent of the sampled respondents live in houses constructed
under IAY (Indira Awas Yojana- Housing Scheme of Government of India). As for water
connectivity, 58.7 per cent of the sampled respondents have their own pump set, whereas 23.7
per cent of the sampled respondents uses public tap and 17.7 per cent of the sampled respondents
depend on neighbors.
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Household level Impact of MGNREGS – Case Studies
Case Study: 1 - Improved Healthcare
Shri. Revathi (name changed) 29, registered for job card under MGNREGS along with
her husband Shri. Baskar (name changed) on 25th November, 2011. Her Job card Number was
TN-22-002-011-011/485-A. She is an educated woman living in Pithalaipatti village along with
her husband and two girl children. She is one of the serious beneficiary respondents working
under MGNREGS. Her husband, who works in a cotton spinning mill in nearby village, was the
sole bread winner of the family. With two children added, the family could now barely manage
with the low income earned by her husband. Revathi was now desperately in need of works to
support her family. However, her husband would not allow her to work in open markets outside
the house and village due to safety concern. He suggested that she should apply for job card
under MGNREGS. Accordingly she applied for 100 days wage employment card and got herself
registered under MGNREGS. Having worked under MGNREGSS, she could now earned regular
income and started opening her own savings account in a bank, where she would deposit fixed
amount on a weekly or monthly basis. With MGNREGS, she now feels financially secured.
Naturally she develops a positive perception towards MGNREGS. She strongly believed that
MGNREGS has improved the bargaining and negotiation power of women. Similarly, there has
been significant improvement in spending towards children’s education and health and better
financial strength of the family was ensured.
Case Study: 2 - Increased Income
Ms. Jameela (name changed) 31, registered for MGNREGS Job card along with her
husband Mr. Mohammad Salaam (name changed) on 25th November, 2009. She is a resident of
Kalikampatti village, Athoor Block, Dindigul District. Before MGNREGS, she was forbidden to
venture outside the house seeking for jobs. There were too many restrictions – customary,
tradition and religious practices for women. Only male members of the family went out of the
house for jobs and support the family. Muslim women engaged only in household chores besides
child bearing and child-rearing role. With MGNREGS, things started changing slowly. Initially,
even when it was learnt that MGNREGS had helped women from other communities immensely
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in contributing financially to their family, women in Muslim families had a tough time
convincing their family to register for job card under the MGNREGS. Jameela also faced the
same situation. She was not able to convince her family to join the MGNREGS. However, after
one year of the implementation of MGNREGS, the financial condition of Jameela’s family
become worsened? It was then that her husband felt the need for both of them to register for job
card under MGNREGS. They registered themselves for Job card under MGNREGS on 25th
November, 2009. Ever since, things started improving slowly. She informed with pride that out
of 100 days work, she worked for 53 days and could earn Rs.4929, which was a huge amount for
her family. Her income through MGNREGS gradually increased year after year. She believe that
the wage opportunities through MGNREGS made her to concentrate more on her family
responsibilities and she was now more keen about her children‘s well-being. She also felt that
her family is now more open. Though earnings from MGNREGS is not that great, easy access to
works under it facilitates many positive outcomes in her life. She is now able to combine works
shifts under MGNREGS with family responsibilities at home. She brings in money into the
family, took good care of her children and at the same time she is able to spend her time with
friends at MGNREGA worksites.
Case Study: 3 - Enriching Education
Meena (name changed), aged 31 is living in Varusanadu village, Mayiladumparai block,
Theni District. Her husband is a sales man working in a textile shop in nearby town and is
getting a monthly income of Rs. 6000, which was barely enough for food and regular household
expenditure. Meena had two daughters. The elder daughter is studying in sixth standard and the
younger daughter is in 1st standard. Both are studying in a private school. Despite financial
difficulties, both Meena and her husband were determined to make sure that their daughters got
the best in their lives. Meena recounted the determination that she and her husband had in giving
their children the best education and how MGNREGS helped them in their struggle. She
said…“initially my husband was reluctant to put our children in private school due to financial
difficulties. We are also aware that most of the children in our village are studying in the private
school near the village where they are picked up by the school vehicle at their door step and are
taken a good care of. We have also noticed that kids in private school speak English very well.
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At the same time, our children also wanted to go to the private school. Therefore, despite
financial difficulties we borrowed money from our relatives and put our elder daughter in a
private school first because we cannot afford to put both our daughters in a private school at
once. Fortunately, the hundred day’s employment program under MGNREGS scheme was
launched in our village also. I got myself registered for the Job Card under this programme.
Since then I started earning a regular wages from the hundred day work programme. The income
from MGNREGS becomes very useful as it greatly helps in the management of the household
expenses of my family. Now our second daughter is also studying in the same private school. We
are now spending Rs. 15000/- per year for our children’s education. These expenditures include
school van fee, uniform and notebooks. The income from MGNREGS is helps us pay the tuition
fee as well as school vehicle fee for my children, apart from meeting other expenses.”
Case Study: 4 - Liquid Cash in Home
Dhanalakshmi (name changed), hails from Palaviduthi village, Kadavur block of the
Karur district. Since 2007 she has been working under MGNREGS as unskilled labour. Her Job
card Number is TN-17-007-011-011/1738-A. In her family, total household members are four,
including her children. She has a savings account in the bank and her account is opened through
the MGNREGS programme for direct cash transfer. She is saving her income in different savings
mode not only in the bank, but also in the house. While interviewing her, she had disclosed in
details, about her savings habits, she said that both she and her husband earned income. While
her only income source happens to be the MGNREGS, her husband works in open markets
outside MGNREGS and earns Rs. 7000/- per month on an average. Both she and her husband
maintained separate savings account with banks. They spend most of their earnings on food,
clothing, children’s education, and health. They could also save money for emergency. At the
same time, they had to save money for auspicious occasions, festivals, wedding ceremonies, and
travels. Keeping in mind all these commitments, Dhanalakshmi started keeping liquid cash3 at
home. Normally, the MGNREGS wages will be credited as bulk amount (Rs. 2000 to Rs. 4000)
in Dhanalakshmi’s savings bank account. She will withdraw 90 % of the amount and keep it in
her house as liquid cash. She will keep the money in different places inside the house - in the
3 Cash on hand is considered a liquid asset due to its ability to be readily accessed.
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kitchen mostly, in the bedroom, and also in the prayer room. One faithful night in the month of
March 2017 her mother-in-law’s health conditions got worsened. She was immediately rushed to
a private hospital nearby town. For admission the hospital asked Rs. 15000/-. But
Dhanalakshmi’s husband had only Rs. 8000/-.in his savings account. Her husband called his
relatives but to no avail. Then Dhanalakshmi told her husband about the liquid cash which she
had kept in house. She was not sure how much it was. Immediately they rushed back home and
Dhanalakshmi collected the money that she had kept in the kitchen, bedroom and prayer room as
liquid cash. After counting the money it was learnt that she had managed to save more than Rs.
10,000 (Rupees Ten Thousand). Her husband was very happy and relieved. Her mother –in-law
was admitted to the hospital and recovered from fewer in the next three days.
Case Study: 5– Savings in Chit Fund
Shanti (name changed) 28 years old, is living in Singarajapuram village panchayat,
Mayiladumparai block of Theni District. Shanti is a beneficiary of the MGNREGS programme.
She got her job card in 2009 from Singarajapuram village panchayat. Her family has job card for
two members. Her Job card Number is TN-21-002-015-015/1376-A. Even though the job card is
valid for two members in their family, Shanti is the only person working under MGNREGS for
one hundred days wage employment. Her husband is a daily wage laborer working as a driver in
a Coconut selling farm. Singarajapuram village is an agriculture village and many of the
villagers have coconut farms. The coconuts from the village are transported to different parts of
the states through agents. As a driver, he is earning Rs. 450 /- per day with allowance. Hence, he
is not willing to work under the MGNREGS. Therefore, Shanti alone works continuously under
MGNREGS for her family’s additional revenue. While interacting with her, Shanti said she had
worked under MGNREGS since 2009. She renewed her job card frequently for getting job
opportunity under the MGNREGS. The hundred days wage employment under MGNREGS has
helped improved her lives in a big way. She started networking with fellow workers under
MGNREGS. She started going out with her friends to work in their village local farms during off
session. She had savings account in a bank and that account was opened for MGNREGS
programme. The income through the MGNREGS programme is credited directly into her savings
bank account. She started to save the money regularly in her savings account. Meanwhile, she
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learnt from friends that many of the women in her village were putting their money in Chit Fund
for better returns. Members were remitting Rs. 500 per week. Members from each family joined
the Chit Fund and remitted Rs. 500 per week. At the end of the year, they can get a certain
amount of money along with interest. Mrs. Shanti also joined in Chit Fund and remitted Rs. 500
every week. The one hundred days income through MGNREGS programme gave her the
confidence to join Fund group. Members of the group draw lots every month for the principal
amount and whoever wins the lots will have to repay with 5% interest weekly. Whereas members
bidding for the lowest amount will pay 5% interest on their bid, for non-bidder members, the 5
per cent interest payments made by the bidders will be distributed equally. Mrs. Shanti worked
for one hundred days, under MGNREGA programme in 2016 and 2017 because she had to pay
Rs. 500 weekly to continue the bidding scheme. With the income generated from the
MGNREGS, she had remitted Rs. 500 weekly in the Chit Fund. The remaining money, she saves
in her savings account. Whenever she needs money for urgent expenses for the family, the extra
money in the bank will meet the requirement. In this way she joined the Chit Fund for 96 weeks
by remitting Rs. 500 per week regularly. By the end of the year, she got Rs. 50,400 / - as savings
from the principle plus interest amount through the Chit Fund.
Case Study: 6 – Gold savings
Marriammal (name changed) is a 38 years old woman living in Kalikkampatti Village.
She is a beneficiary of MGNREGS since 2007. Her Job card Number is TN-21-002-011-
011/177-A. There are five members in her family including her husband, son, daughter and her
father-in-law. Her husband is the only earning member of the family. Her son is 12 years old
studying sixth standard and her daughter is 14 years old studying in 9th standard. Purchasing a
gold chain for her daughter has been her dream for a long time but she didn’t have enough
money. Her husband works in a wooden surge mill. However, his income is not enough to
support the family. Therefore, she also had to work to supplement her husband’s income which
would then be barely enough to meet the family’s monthly expenses. She registered herself for a
job card under MGNREGS. Since 2007, she had been working under MGNREGS and earned
regular income. She started saving money in the bank. At the same time she never gives up her
dream of buying gold chain for her daughter. She learnt about a gold savings scheme practiced
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by a famous jewellery shop in nearby town. This information was shared by her co-workers
under MGNREGS. She decided to join the jewellery store's gold savings program but was a little
apprehensive as she thought that she would have to pay more money. Then, she made an inquiry
at the jewellery shop about the gold savings programme as well as the monthly payment method.
She was told that she only had to pay Rs. 200/- per week only up to 4 months. Without second
thought, she joined the gold savings scheme and remitted Rs. 200 per week at the jewellery shop.
After a certain amount of saving, she bought a 2 gram gold ring for her daughter. After that, she
again joined that gold saving program at the same shop and remitted Rs. 400 instead of Rs. 200
per week. Then, again she bought a gold chain for her daughter through the gold savings scheme.
But, that gold chain price was so high even though she bought through installment; she had to
pay the installment amount through the income from MGNREGS. Thus, her dream of buying
gold chain for her daughter became a reality because of MGNREGS.
Case Study: 7 –Diwali Savings Scheme
Ms. Parimalam (name changed) is a 35 years old woman living in the Varusanadu
village, Mayiladumparai block of Theni district. She is an unskilled worker registered job card
for one hundred days employment under MGNREGS programme in 2009. Her job card No. is
TN-21-002-018-018/1290-A. She had 3 children. Before registering for job card under
MGNREGS her income from different sources were barely enough to meet her household
expenses for food and grocery items. There was no money for new clothes for her kids, sweets
and other accessories for her family during important festivals and ceremonies. For all these
expenditure she had to borrow money from money lenders and relatives at 4 per cent interest. At
this juncture, the 100-days work programme under MGNREGS came to her village and she had
registered herself for Job card under the scheme in 2009. Since enrolling under MGNREGS, she
had regularly earned income. Now she could buy new cloths for her kids and for herself during
important occasions. Moreover, she also started saving her income in a special savings scheme
called Diwali Festival Savings Scheme, which was introduced in her village. Under this scheme,
sweets, and crackers will be provided to members during Diwali festival. Parimalam had joined
the Diwali Savings Scheme and paid Rs. 500 per month as savings on Diwali Savings Scheme.
During the Diwali festival, she got around Rs. 6500 / - as savings from the Diwali Savings plan.
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With that money, she bought new dresses for her children as Diwali gift and also sweets,
crackers and other household cooking vessels. Now she is very happy to see her kids with new
clothes during important festivals and occasions. She is still depositing Rs. 500/- per month for
Diwali savings plan through her income from MGNREGS.
Case Study: 8 – Tour savings scheme
Eswari (name changed) is 32 years old woman living in the Palaviduthi village, Kadavur
block of the Karur district. She had registered herself for 100 days’ work under MGNREGS in
2007. Her Job card No. is TN-17-007-011-011/529-A. With her income from 100 days’ work
under MRNREGS she managed to invest Rs. 300/- every month regularly under a tour savings
scheme called “Friends Tour Group”. A tour savings scheme was introduced in her village with
the objective of providing viable financial options to the villagers to visit important tourist
destinations in Tamil Nadu. The main aim of this group is saving money to visit tourist places
inside Tamil Nadu every year. Eswari had always wanted to go along with village members to
important tourist and religious places inside Tamil Nadu. However, due to financial difficulties,
she was not able visit tourist places with her neighborhoods. She could barely visit only nearby
tourist places. Therefore, she joined the “Friends Tour Group” because normally she won’t step
out from her village to visit tourist places. If her entire family had to travel to important tourist
destinations in Tamil Nadu, she would have to spend not less than Rs. 2000 per travel and she
simply could not afford this much amount. Moreover, she also wanted to take her kids on tour
visits to different places in Tamil Nadu. Therefore, when she learnt that “Friends Tour Group”
has helped many families in her village to visit important tourist places in Tamil Nadu, she
immediately joined the group and remitted Rs. 300 monthly to the group. She paid Rs. 300/- per
month on that group through the hundred days wage employment’s incomes. At the end of the
year she had deposited Rs. 3000/- as savings through tourist group. After that the tour group had
decided to organize a tour and she had also planned to join in that tour along with her two
children. The tour group fixed the amount as Rs. 1000 per head for adult and Rs. 500/- per head
for children. The tour group fixed the places to visit like Tirupati, Thiruvannamalai,
Kanchipuram, Pondicherry, Thirunallar, Velankanni, Rameswaram, Kanyakumari and Courtalam
for four days. Apart from her necessary expenses, Eswari could save some money because of her
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opportunity to work in her own village through a government project – MGNREGS. That
savings of money made her dream come alive.
Case Study: 9 –Curtailed Migration
Pithalaipatti village is located in the Athoor block of Dindigul district. It is 15 kilometers
away from Dindigul town. The surroundings of the village were affected by heavy drought and
the level of ground water rapidly decreased between the years 2000 AD to 2010 AD. Before the
MGNREGS was launched, many of the villagers along with their family migrated to towns and
cities in search of jobs as there were no employment opportunities in the village. Those who had
agricultural land survived with the minimum income. But landless villagers could not survive in
their locality due to the lack of employment. In this situation, many of the villagers migrated to
other places especially to Thirupur town (textile city) and got jobs at cotton ginning factories
with reasonable income. The villagers come to native place only to celebrate festivals. The
introduction of MGNREGS has provided opportunity for villagers to earn their livelihood in the
village itself. It has curtailed the migration of almost 55-60 families who were about to migrate
to Tiruppur. Under MGNREGS canals and ponds were dug in and around Pithalaipatti village.
Crop production increased due to ample water available from these canals and ponds. The
increase in production has ensured food security for the people, whereas the wages earned under
MGNREGS are taking care of the other needs of the villagers. As a result migration from village
to Thirupur in search of work has almost stopped. Due to increased availability of water,
villagers are experimenting in agriculture and trying to make it profitable. Many farmers have
started growing vegetable in their farms. Villagers are hoping that in coming 2-3 years
MGNREGS will help stop migration of each and every family of the village. The stability and
security of the villagers will also help them to be more sensitive on the issues of health and
education which are neglected so far. For the people of Pithalaippati village MGNREGS has
proven to be a blessing which had curtailed the exodus of villagers to Thirupur.
Case Study: 10 –Enhanced Annual Income
Mr. Saravana. K belongs to Kalikampatti Village of Athoor block in Dindigul district.
His job Card No. is TN-22-002-015-015/319-A. He owns 1 acre of agricultural land in the
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village but due to water scarcity, the land became drying up, remained unfertile and partially
cultivable, with only cotton and maize being cultivated. With MGNREGS, Mr. Saravana. K had
benefited the most through the provision of a well construction under Sub Scheme of
MGNREGS. He had constructed his bore well with 80 – 85% funding from MGNREGS. Only
15-to-20% of the expenditure for the construction of his well under was bored by him and the
remaining 80 – 85% was funded centrally through MGNREGS. After that only he started to get
his agricultural land properly irrigated. According to him, before MGNREGS the yield of cotton
was 1 quintals and maize was 2 quintals. The income from cotton was Rs. 1500 while and
around Rs.1000 from maize. Thus the total annual income from his agriculture was only
Rs.2500. But construction of well on his farm land increase production and his income was
increased more than four times. Because of irrigation facilities available in half acre, he started to
cultivate wheat crop as well. Saravana received a yield of around 2 quintal of cotton and 3
quintal of maize last year apart from that 2 quintal of wheat. He earned around Rs.6000 from
cotton, Rs.3200 from maize and Rs.2400 from wheat, which made a total annual income of
around Rs.11600. Employment Guarantee Scheme has helped him a lot in farming as his annual
income rose four times which was far better than his previous annual income. In addition he is
also getting Rs.1500 wage employment under the MGNREGS. This change increased his social
status and quality of life and also ensured food security within the village.
Case Study: 11 - Individual Benefit under Sub-Scheme switch Laborers to Owners
The family of Mohanraj. P/Kausalya. P resides in the Kalikampatti village of Athoor
block in Dindigul. This is a family of the lower caste and owns about 1.5. Acres of agricultural
land. Prior to the NREGS, the family was entirely dependent on the monsoon for their irrigation
and cultivated corn and soybean with much difficulty. As the NREGS Act was established,
Mohanraj. P/Kausalya. P was chosen as a beneficiary of MGNREGS well construction project.
For this, Rs. 145000 was made available. Mohanraj had to put in some payment and much of his
labour too. In conversation, he also spoke of the extra money it had cost him as the labourers
found the wages too low or the payment was not being made on time. After the well was
constructed, Mohanraj said as most of his agricultural land now had water his produced had
increased marginally. During the discussion Mohanraj admitted that before the well was
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constructed he had no proper means of irrigation and as a result had to work on other people‘s
field to make ends meet. But after the construction of the well, he can now work much better on
his own field and the final product had improved too. His family is very happy with the
MGNREGS scheme for constructing the well. He says that as a poor and illiterate farmer he did
not have the means to build his own well, nor to take a loan for the same. Because of the well,
the entire family now works on their own crops and overall production has increased. They do
not need to work as labourers on others fields anymore. The family feels self sufficient. Thus
through the MGNREGS, the family has benefitted a lot and they now feel like owners, not
workers!
Concluding Remarks
As the case studies above reflect, the Mahatma Gandhi National Rural Employment
Guarantee scheme has positively impacted the beneficiary households in multiple ways. The
impact of MGNREGS on households can be viewed in terms of the extent to which it has come
to have a bearing on the lives of the people most dependent on it. MGNREGS has enhanced the
lives of the workers by helping them generate more livelihood options from their immediate
surroundings by making work available to everyone, preferably women and aged, within their
easy reach. It has managed to generate employment, for the first time, at fair and equal wages in
the village itself. However, on the flip side, as there was no visible wage discrimination between
men and women the existing rate of wages under MGNREGS is becoming inconvenient for men,
who prefer working outside the village where they can earn higher daily wages. It has provided a
source of supplementary income to families. Majority of the families were spending the
increased income from MGNREGS on food basket followed by children’s education and health.
Consumption expenditures have increased in families. In particular, the food habits of the
households have significantly changed. The income from MGNREGS has brought about
significant improvement in the quality of food being consumed by households. The significant
impact of MGNREGS was also felt more during the off – session when it has provided the
unemployed a means of sustenance. It has become the only sustainable principal source of
earning alternate income in rural Tamil Nadu. Finally, the MGNREGS work has enhanced the
bargaining power of the rural households in negotiating their wages in the open market. It has
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brought back home, the dignity of labour. It has added significantly to the purchasing power of
the beneficiaries who are spending the additional income on better quality of life and human
development related issues, which is a good sign for the better future of the state and its people.
Moreover, when poor households started spending this additional income from MGNREGS, they
create demand for commodities. The production of these commodities in turn, creates demands
for capital, raw materials and workers. This multiplier effect is reflected in the expansion of
business and commercial activities in and around the villages under investigation.
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