The ministry of rural development has decided to challenge a Karnataka high court order that directed the government to pay minimum wages to MG-NREGA workers. The court order had led to a tussle within the government over whether the order should be challenged or not. While rural development minister Jairam Ramesh, who is monitoring the UPA flagship aam-admi scheme, spoke against challenging the order, finance minister Pranab Mukherjee advised him to...

-The Hindu   Maharashtra Deputy Chief Minister and Nationalist Congress Party leader Ajit Pawar revealed on Sunday that the State was in talks about utilising the labour under the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS) for agriculture, to bridge the shortage of supply of farm labour. “The State government is discussing whether it will be possible to divert the labour available under the MGNREGS to agriculture in the State, which is losing...

In the first high-level red-flag against the UPA government’s flagship Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), Agriculture Minister Sharad Pawar has told Prime Minister Manmohan Singh that while assets created under the NREGA “may or may not have productive use”, the programme was “adversely” impacting the agriculture sector by “drawing out agriculture labourers from agricultural operations”.   In a letter sent to the prime minister late last month, Pawar is...

In a move most ministries would shy away from, Rural Development Minister Jairam Ramesh has written to the Comptroller and Auditor General (CAG) of India, requesting him for a performance and financial audit of the National Rural Employment Guarantee scheme (NREGA), the most heavily funded flagship scheme of the UPA government. The minister has written to CAG Vinod Rai, who was recently criticised by Prime Minister Manmohan Singh for calling frequent...

Those who see a direct link between wage inflation and the employment guarantee scheme need to think again Rural Wage Rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction...