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LATEST NEWS UPDATES | Year-long job scheme for urban poor on the cards by Clara Lewis

Year-long job scheme for urban poor on the cards by Clara Lewis

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published Published on May 2, 2011   modified Modified on May 2, 2011
In a bid to eradicate unemployment from the state, a large part of which has gradually been urbanized over the years, the government plans to introduce an employment scheme that will guarantee jobs for the city poor throughout the year.

"Nearly 50% of the state has been urbanized and a large proportion of the population does not have a job. The government plans to introduce an employment guarantee scheme (EGS) for the urban poor, who are yet to get a job after finishing their education," announced minister for employment Nitin Raut. What is unique about the state scheme is that unlike the Centre's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which offers jobs for 100 days a year, this plan will ensure employment for all 365 days.

Raut hopes that the scheme-which will offer employment to the educated urban poor till they get a better job opportunity-will to some extent make up for the government's inability to recruit people, owing to the financial crisis. "Once a person gets an offer of a better paying job, he/she must opt out of the scheme," said Raut, adding the offer will be extended to skilled labour as well as the unorganized sector in urban areas.

Government officials, however, are a bit sceptical about the scheme becoming popular, as the payment in alternative employment options will be better. While under the state scheme, the minimum guaranteed wage per day has been decided at Rs 127 per day, a labour contractor pays his workers at least Rs 150 per day.

Welcoming the idea of guaranteeing job to the educated urban poor, social activist Sitaram Shelar, who is also a member of Youth for Unity and Voluntary Action, said it was a good concept provided the government ensured that it would be introduced in the informal sector as well. "It will help bring the unorganized sector under the social security system and also help better regulation of it," he said. According to him, the scheme should be introduced in phases, and it should begin in smaller towns. " Mumbai is too complex a city to introduce the plan. Moreover, if they start it across the state all at once, it is likely to collapse," he added.

V Giriraj, principal secretary in charge of employment guarantee schemes, said the government also planned to amend the state Act to make it similar to MGNREGA. "This might bring down the number of guaranteed job days to 100 but then, the demand for work usually peaks during the summer," he added.

The Times of India, 2 May, 2011, http://timesofindia.indiatimes.com/city/mumbai/Year-long-job-scheme-for-urban-poor-on-the-cards/articleshow/8137810.cms


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