CHAPTER-VII MGNREGA AND ITS IMPACT ON RURAL ...shodhganga.inflibnet.ac.in/bitstream/10603/90418/20/20...in progress. It is reflected in the performance index of works completed Which

CHAPTER-VII

MGNREGA AND ITS IMPACT

ON RURAL ECONOMY IN KARNATAKA - A CASE STUDY IN CHITRADURGA, DAVANGERE,

HASSAN AND SHIMOGA DISTRICTS

187

MGNREGA and Its Impact on Rural Economy in Karnataka: A Case Study

The level of understanding of MGNREGA concept at different levels of

administration and workers participating in MGNREGS; preparedness of various

agencies to implement the programme; adherence to policies and procedures of the

Act, timely support by related departments for the smooth conduct of the programme;

monitoring of MGNREGS works by authorities; constraints in implementation

affecting the progress of the programme, transparency in the implementation of the

scheme, efficiency and effectiveness of the program were documented. An analysis of

extent of participation by workers in the programme; equity and women

empowerment issues addressed and benefits derived in terms of improvement in

employment opportunities, income level, savings accumulated, and creation of assets

and rejuvenation of natural resources were attempted in the present study.

7.1 : Implementation of MGNREGS in Selected Districts of CDZ and STZ

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

guarantees, on behalf of the Government, 100 days of wage employment in a financial

year to all the rural households in the country whose adult members volunteer to do

unskilled manual work. Funding of the programme is shared by Central Government

and State Governments in the proportion of 90 per cent and 10 per cent, respectively.

In Karnataka, Rs 357.87 crores was spent on implementing MGNREGS up to

2008-09 out of the total amount released of Rs 642.50 crores. It had generated 8.97

lakh person days of employment. Table 7.1depicts a summary of the progress

achieved in the study area. An amount of Rs 87, 59, 28 and 29 crores were made

available to Davanagere, Chitradurga (CDZ), Shivamogga and Hassan (STZ) districts

respectively for MGNREGS. Performance Index of MGNREGS expenditure which is

a comparison of ratio of money spent to money allocated for the programme in the

four selected districts with that of state shows that performance in Chitradurga (137.5)

was far better than that in other districts where the index varied from 63.9 to 82.6. In

CDZ majority of the works were completed, while in STZ majority of the works were

in progress. It is reflected in the performance index of works completed Which were

higher than the state performance in Chitradurga (137,6) and Davanagere (133.33)

districts, both belonging to the economically backward region. The figures for Hassan

188

(64.86) and Shivamogga (70.77) districts belonging to economically forward districts

were relatively poorer. Performance in terms of employment provided was higher in

economically backward region as compared to economically forward region as

revealed by the statistics in the table viz; Chitradurga district (1.39 lakhs person days)

followed by Davanagere district (0.85 lakhs), Shivamogga district (0.45 lakhs) and

Hassan district (0.13 lakhs). This stresses the importance of employment guarantee

through public works in severely drought prone districts which are economically

backward.

Though the proportion of workers belonging to Scheduled Castes participating

in MGNREGS as compared to their proportion in the total population of the state was

higher in all the districts, the proportion was comparatively higher in economically

backward region represented by Chitradurga (MGNREGS proportion of 41.21per cent

as against the state level proportion of 22.2 per cent) and Davanagere (31.0 per cent

as against 18.6 per cent) districts than in economically forward region represented by

Hassan (19.3 per cent as against 18.1 per cent) and Shivamogga (20.8 per cent as

against 16.4 per cent) districts.

The stipulation that one-third of the workers under MGNREGS should be

women was satisfied in both CDZ and STZ. In Chitradurga district, which is a

chronically drought prone area and identified by the NPC as one of the three most

disadvantaged districts in Karnataka along with Davanagere and Bidar, the women

employment in MGNREGS formed 61 per cent. It was followed by Davanagere

district (46 per cent), another economically backward region.

Research studies conducted by Anurekha Chari on Maharashtra’s EGS (2006),

Arun Jacob and Richard Varghese on Kerala’s REGS (2006), Kiran Bhatty on

Rajasthan’s NREGS (2006), Lalith Mathur on NREGS in Rajasthan (2007), Jayati

Ghosh on NREGS in Karnataka and Tamil Nadu (2009) and Reetika and Nandini on

NREGS in six northern states (2009) have shown that similar to the results of the

present study, participation of SC/ST category workers in the employment guarantee

schemes had been more than their proportion in the national / state population and

women worker’s participation ranged from 40 per cent to 80 per cent of the total

worker participation in those programmes, stressing the point that MGNREGS has

been fair in addressing equity and gender issues.

189

Table-7.1: Performance of MGNREGS in Economically Forward and

Backward Regions of Karnataka

Note: Figures in Parentheses indicate percentage to total

Particulars / Districts

Economically Forward Region (STZ)

Economically Backward Region (CDZ) Karnataka

Hassan Shivamogga Chitradurga Davanagere

Employment to No. of

house holds (Lakhs) 0.13 0.46 1.39 0.85 8.97

Total population

(Lakhs) 17 16 15 18 528

Person

days

(Lakhs)

Total 7.05 10.20 31.05 25.70 287.64

SCs 1.36

(19.33%)

2.13

(20.87%)

12.79

(41.21%)

7.97

(31.00%)

79.90

(27.77%)

Proportion

of SCs in

total

population

(per cent)

18.10 16.40 22.20 18.60 16.21

STs

0.94

(13.33%)

0.50

(4.93%)

6.79

(21.87%)

5.14

(20.00%)

39.91

(13.87%)

Proportion

of STs in

total

population

( per cent )

01.50 03.40 17.50 11.70 6.55

Others 4.75

(67.33%)

7.57

(74.2%)

11.46

(36.93%)

12.59

(49.00%)

167.85

(58.35%)

Proportion

of Others in

total

population

80.40 80.20 60.30 69.70 77.24

Women participation

in Person days (Lakhs)

2.33

(33.09%)

4.62

(45.27%)

18.94

(61.00%)

11.80

(45.91%)

145.00

(50.42%)

Proportion of women

in total population

( per cent )

50.10 49.43 48.86 48.76 49.10

Funds released

(Rs. crore) 29.40 27.94 59.46 87.00 642.50

Expenditure (Rs.

Crore) 10.47 12.84 45.56 31.68 357.87

Performance index of

expenditure 63.90 82.60 137.50 65.40 -

Total works planned

(Number) 1703 2209 3143 2484 56538

Works completed

(Number) 673 952 2635 2016 34431

Performance index of

works completed 64.86 70,77 137.60 133.33 -

Works in Progress

(Number) 1030 1257 508 468 22107

190

Graph-7.A: MGNREGS Employment Availed by Different Categories of

Workers in Sample Districts of Karnataka

7.2: Minimum Wage Laws

Gregory Mankiw states that when a minimum wage law forces the market

wage to remain above the level that balances supply and demand, it raises the quantity

of labour supplied and reduces the quantity of labour demanded compared to the

equilibrium level. There is a surplus of labour. Because there are more workers

willing to work than there are jobs, some workers are unemployed.

Figure-7(i): Unemployment from a Minimum Wage above the Equilibrium Level

WE

LD LE LS Quantity of Labour

LabourDemand

ddd Demand

Wages

O

Surplus of Labour - Unemployment Labour Supply

191

WE is the market equilibrium wage rate, LE is the quantity of labour supplied

and demanded at this equilibrium wage. LD is the labour demanded and LS is the

labour supplied because of the minimum wage law. LS - LD, the resulting surplus

labour represents unemployment (Fig. 7(i)).

In Karnataka, since market wage rate for male labour (Rs. 120 to Rs.150 per

person per day in 2008-09) was above the minimum wage rate fixed by the state

government, in most of the districts this type of surplus labour and resultant

unemployment was not seen in their cases. As per the Notification No. KAE 96 LMW

2005 dated 30.07.07, Prescribed Minimum Rates of Wages per day for all the types of

cultivated land and VDA (variable DA) in Karnataka from 01.04.2009 to 31.03.2010 was

Rs. 119.41 (Rs. 100 + Rs. 19.41). However this concept might have been true to some

extent in case of women labour, whose market wage rate (Rs. 50 to Rs. 80 per woman

per day), was well below the MGNREGS wage rate.

7.3: General Awareness about MGNREGA among Workers

For the success of any programme awareness about its provisions across

different sections of the population is crucial. It was observed during the course of the

study that attempts had been made by the administration to create awareness

regarding the Act and the Programme among the intended beneficiaries through news

papers, television, radio, pamphlets and brochures. The method of dissemination

adopted influenced the extent of awareness created (Table 7.2). Information passed on

by neighbours working under MGNREGS, efforts made by Gram Panchayath

secretaries to educate the villagers and writing on walls of Panchayath offices and

schools formed the major sources of awareness about MGNREGA among the

beneficiaries. It was found that each of the first two media created awareness in 30

per cent of the beneficiaries; while wall writing created awareness in around 12 to 21

per cent of beneficiaries. Authorities in Shivamogga district adopted street plays as a

novel method to create awareness about MGNREGA and it had a positive impact on

the workers. Broadcasting through Akashavani was followed in Chitradurga district as

a means of creating awareness.

The statistics presented in Table 7.2 also reveal that awareness among the

workers about provisions and procedures of the Act was poor both in CDZ and STZ

(ranging from 2 to 21 per cent of the beneficiaries), although 88 to 93 per cent of the

beneficiaries were aware of MGNREGA in all the selected districts except in Hassan

192

district where around 38 per cent of the beneficiaries were not aware of the Act.

Bhatia and Dreze (2006) also found out that MGNREGS participants in Jharkhand

were ignorant about nuances of the Act.

The works to be taken up under MGNREGS are decided in the gram sabha

meetings called by Gram Panchayaths, which provides an opportunity for the villagers

to take active role in decision making process that guides village development

activities. But, participation by the beneficiaries in such meetings was low in all the

districts. Either lack of motivation or improper timings of the meetings could be the

reason for low attendance of the workers. However, it was heartening to note that

voluntary participation of the beneficiaries in the MGNREGA activities was more

than 75 per cent.

More efforts are needed to educate the intended beneficiaries of MGNREGS

on the provisions of MGNREGA and importance of their participation in gram sabha

meetings. Better informed participants will make the best use of the facilities made

available to them and it will serve the interests of individuals as well as the

communities.

Table 7.2: Awareness Regarding MGNREGA Among the Workers

(Percentage of respondents)

Particulars

Economically

forward

region (STZ)

Economically

backward

region (CDZ) Pooled

Average

Districts

Hass

an

Sh

ivam

ogga

Ch

itra

du

rga

Davan

ager

e

General

Awareness

about

MGNREG

A through:

(a to f)

( per cent )

a Wall writing 21.5 14.5 12.2 15.4 15.9

b All India Radio 4.2 4.96 1.9 1.8 3.2

c

Announcement using auto

rickshaw 0.0 0 5.1 0.0 1.3

d Tom tom 6.6 1.31 19.0 6.5 8.4

f

Neighbors working in

MGNREGP 36.8 42.92 31.4 38.0 37.3

g

Through Village Secretary /

Local leader 30.9 36.2 30.3 38.3 33.9

Beneficiary Families still unaware of

MGNREGA (per cent) 38.7 9.0 12.2 7.0 16.7

Awareness about provisions and procedures of

MGNREGA (per cent) 0.0 21.2 2.5 15.0 9.7

Meetings attended regarding MGNREGA at

Gram Panchayaths (per cent) 3.3 12.5 1.3 3.8 5.2

Willingly participating in MGNREGA (per cent) 75.0 83.7 75.0 93.3 81.8

193

Graph-7.B: Awareness Regarding MGNREGA Among the Workers

(Percentage of respondents)

7.4: Compliance with Procedures to seek Employment under MGNREGA

MGNREGA provisions include (a) any adult member of rural households,

irrespective of caste, religion, occupational background or economic status is eligible

for employment, if he or she is willing to do unskilled manual work (b) such

households willing to work under MGNREGS need to register in the local Gram

Panchayaths (c) All the households registering under MGNREGA need to be issued

job cards, with photographs of willing family members, free of cost by Gram

Panchayaths (d) After obtaining job cards the willing households should submit a

written application for employment to the gram Panchayath secretary which will be

acknowledged with dated receipt by the Gram Panchayath (e) Employment has to be

provided within 15 days of this application (f) In case the Panchayath fails to provide

employment within 15 days, the applicants have to be paid unemployment allowance.

This unemployment allowance amount has to be borne by the State Governments.

Results of the analysis related to MGNREGA procedures are presented in

Table 7.3. It was found that although almost all the employment seeking households

were issued job cards, they were partially filled with details. Even though

MGNREGA stipulates that job cards must possess photographs of all the family

members willing to work under the programme, only 29 per cent and 33 per cent of

194

the beneficiaries in Hassan and Davanagere districts, respectively had photos affixed

in their job cards. Compliance with the rules was relatively better in Shivamogga and

Chitradurga districts where about 91 per cent and 51 per cent of the beneficiaries,

respectively possessed Job cards with duly affixed photos.

All the households participating in MGNREGS are supposed to have their job

cards in their possession to avoid any kind of malpractices. The analysis showed that

in Hassan, Shivamogga and Davanagere districts, over 70 per cent of the beneficiaries

had their job cards in their custody, while the others expressed that Gram Panchayaths

are the custodians of their job cards. Provision of work within 15 days from the date

of application, was comparatively better in Shivamogga (94 per cent) and Chitradurga

(82 per cent) districts when compared to Hassan (65 per cent) and Davanagere (62 per

cent) districts. However, MGNREGA records maintained in Gram Panchayaths did

not show payment of unemployment allowance to beneficiaries due to delay in

allotment of work even in a single instance. Bhatia and Dreze (2006) reported that in

Jharkhand the implementing agency failed to maintain proper records pertaining to

MGNREGS.

Contrary to the provisions in MGNREGA most gram panchayaths did not

insist on request for employment in written form. Instead, as and when the Gram

Panchayaths decided to execute a work, Panchayath authorities obtained demand

letters from the workers. Application for employment in writing would guarantee

employment to the workers when they need it.

It can also be observed from the table that economic status of the region does

not have a bearing on the adherence to procedures in execution of MGNREGS.

195

Table-7.3: Job Card Details of the Workers in the Selected Districts of CDZ and STZ

7.5: Provision of Worksite Facilities to the Workers under MGNREGS

Shade, drinking water, first aid and crèche, if more than 5 children below the

age of 6 years are present, are the minimum work site facilities the programme

executors are expected to provide to the workers under MGNREGS. Table 7.4 shows

that except in Chitradurga district in all the other districts more than 75 per cent of

the beneficiaries were provided with clean drinking water at the worksite. Laxity was

observed in economically backward region viz; Chitradurga and Davanagere districts

with respect to provision of shade, in spite of workers experiencing scorching Sun

during summer months when majority of MGNREGS works are implemented. More

than 55 per cent of the beneficiaries in all the districts except Chitradurga (21 per

cent) answered affirmatively to the question on provision of first aid facility at the

worksite. Crèche facility was not extended in any of the districts.

Bhatia and Dreze (2006) in Jharkand, Kiran Bhatty (2006) in Rajasthan and

Sudha Narayanan (2008) in Tamil Nadu have also reported that administration failed

Particulars

Economically

Forward

Region (STZ)

Economically

Backward

Region (CDZ)

Av

era

ge

Ha

ssa

n

Sh

iva

mog

ga

Ch

itra

du

rga

Da

va

na

ger

e

Proportion of job card holders who applied for

employment (per cent) 33.3 83.7 53.8 15.0 46.5

Dated acknowledgement issued by gram Panchayath ( % ) 0.0 0.0 0.0 0.0 0.0

Proportion of job cards where entries were made ( % ) 57.1 87.5 45.9 51.7 60.6

Proportion of households to whom job cards are issued

without causing hassles ( per cent of beneficiaries) 100 100 100 89.6 97.4

Gap between registration and issue of job card (No. of

Weeks) 2.1 2.1 1.6 2.1 2.0

Proportion of beneficiaries working without job cards

(per cent of beneficiaries) 25 15.2 25.6 60.0 31.5

Proportion of Job cards having photos of members ( % ) 28.8 91.3 51.3 32.9 51.1

Job cards in the custody of ( % ) Households 74.7 55 70.5 96.2 74.1

Gram Panchayath 25.3 45 29.5 3.8 25.9

Work allotted within 15 days of

application ( per cent of

households)

Yes 65.0 93.7 81.9 62.1 75.7

No 35.0 6.3 18.1 37.9 24.3

196

to provide adequate worksite facilities to the workers, especially crèche for small

children who accompany their mothers to worksites. This is a major constraint faced

by women workers who are coming forward in large numbers to participate in

MGNREGS. Extending these facilities earnestly may make MGNREGS more demand

oriented, attract more workers, especially women to MGNREGS and thereby reduce

rural labour migration to some extent.

Table -7.4: Provision of the Worksite Facilities in Selected Districts of

CDZ and STZ

Sl.

No.

Facilities at worksite

(per cent of

beneficiaries)

Economically

Forward Region

(STZ)

Economically

Backward Region

(CDZ)

Overall

Hassan Shivamogg

a Chitradurga

Davanager

e

1 Drinking water 75.7 81.25 61.3 78.8 74.3

2 Shade 11.4 77.25 0.0 0.0 22.2

3 Medical aid 55.7 70.0 21.3 66.7 53.4

4 Crèche 0 0 0 0 0

7.6: Wage Rate Followed and Payment made under MGNREGS

The workers participating in MGNREGS are paid gender neutral wages. Wage

rates prescribed in the Minimum Wages Act 1948 for agricultural labourers in the

states are followed. In Karnataka the MGNREGA wage rate fixed for 2008-09 was

Rs.82 per person per day. Wages have to be disbursed to workers in one week’s time

and not exceeding two weeks period. MGNREGA tries to ensure transparency, by

making it compulsory to pay wages to workers through Bank or Post Office accounts.

Banks and Post Offices have to open accounts for MGNREGA workers free of cost.

In case of households with more than one member working under MGNREGS, a joint

account has to be opened.

Results presented in Table 7.5 and Graph 7.C as well as 7.D show that market

wage rates of both men and women workers were comparatively higher in STZ than

in CDZ which are chronically drought prone. That induces higher labour migration

from CDZ to plantation areas of STZ. Market wage rates of women were lower than

the MGNREGA wage rate of Rs. 82 per person per day to an extent of 16 per cent in

197

Shivamogga, 20 per cent in Davanagere and 40 per cent in Chitradurga districts. At

the same time market wage rates for men were higher than MGNREGA wage rates to

an extent ranging from 12 per cent in Chitradurga to 54 per cent in Hassan district.

That explains large scale participation of women under MGNREGP and men labour

shying away from the programme.

Table-7.5: Wage Differential Faced by MGNREGA Workers in Selected

Districts of CDZ and STZ

Graph-7.C: Market and MGNREGA Average Wage Rates in Sample

Districts of Karnataka

Sl.

No. Region

District

Sex

Market

wage

rate

(Rs.)

MGNREGA

Wage Rate

(Rs.)

Market wage rate

as per cent change

from MGNREGA

wage rate

I Economically

Forward

Region

(STZ)

Hassan Female 82.7 82 0.9

Male 125.9 82 53.5

Shivamogga Female 68.6 82 -16.3

Male 113.7 82 38.7

II Economically

Backward

Region

(CDZ)

Chitradurga Female 48.6 82 -40.7

Male 91.5 82 11.6

Davanagere Female 65.0 82 -20.7

Male 101.1 82 23.3

Average Female 66.3 82 -19.1

Male 108.0 82 31.7

198

Graph-7.D: MGNREGA Wage Rate in Comparison With Market Wage Rate in

Selected Districts of Karnataka

7.7: MGNREGA Wage Rate as Floor Wages for Agricultural Operations

Women workers in some villages, mainly from Bhadravati Taluk of

Shivamogga district, stated that their farm wages had increased by, on an average, Rs.

10 per person per day after MGNREGS was implemented. It showed that MGNREGS

had an influence on the floor wages for agricultural operations.

Table 7.6 reveals that employment availed by MGNREGA workers ranged

from 18 days per household in Shivamogga district in STZ to 47 days per household

in Chitradurga district in CDZ which was less than 50 per cent of the guaranteed

employment of 100 days per household per annum in the Act. Higher market wage

rate that prevailed in all the districts was the major reason for lower participation of

workers under MGNREGS. However, indices of number of days worked under

MGNREGS shows that extent of utilization of MGNREGA provision was higher in

economically backward region represented by Chitradurga (145 for men and 149 for

women workers) and Davanagere (122 for men and 99 for women workers) districts

than in economically forward region represented by Hassan (74 for men and 86 for

women workers) and Shivamogga (57 for men and 67 for women workers) districts. It

shows that MGNREGS as a livelihood security measure would be more effective in

economically backward region.

In economically forward region wages were paid to MGNREGA workers

within two weeks as per the norms. However, in economically backward region, the

workers were forced to wait, on average from 3 weeks to a month to receive the

199

wages. In some instances, the sample workers complained about delay of beyond 3

months for payment of wages under MGNREGS because of procedural delays and

poor governance. This added to the agony of workers who already suffered due to

drought proneness, poor farm incomes, lower wages and poverty induced migration.

The results are in conformity with the findings of Batia and Dreze (2006) in

Jharkhand.

Improved governance and effective execution of the programme would go a

long way in addressing the sufferings of workers in CDZ.

Table-7.6: Employment Availed and Payment Received by MGNREGA

workers in Selected Districts of CDZ and STZ

7.8: MGNREGS Wage Bill payment through Bank/Post Office Accounts

Cent per cent of the MGNREGS workers in CDZ and nearly all the

households in STZ engaged in the programme had either bank or post office accounts.

Even those workers who had not yet had bank accounts were in the process of

opening the accounts. Since the payment of wages is done on household basis

majority of the workers had joint accounts, ranging from 60 to 74 per cent in STZ and

Sl.

No. Region District Sex

No

. o

f d

ay

s o

f

wo

rk u

tili

zed

per

HH

per

yea

r

Ind

ex o

f N

o. o

f

wo

rk d

ay

s

(Av

era

ge

= 1

00

)

Wa

itin

g t

ime

for

recei

pt

of

wa

ges

(day

s)

Ind

ex o

f N

o. o

f

wa

itin

g t

ime

(Av

era

ge

= 1

00

)

I Economically

Forward

Region

(STZ)

Hassan

Female 23.2 85.9

(-14.1) 13.3

73.9

(-26.1)

Male 24.5 74.2

(-25.8) 13.9

68.1

(-31.9)

Shivamogga

Female 18.1 67.0

(-33.0) 13.0

72.2

(-27.8)

Male 18.9 57.3

(-42.7) 13.2

64.7

(-35.3)

II Economically

Backward

Region

(CDZ)

Chitradurga

Female 40.1 148.5

(48.5) 30.8

171.1

(71.1)

Male 47.9 145.2

(45.2) 33.8

165.7

(65.7)

Davanagere

Female 26.7 98.9

(-1.1) 15.0

83.3

(-16.7)

Male 40.3 122.1

(22.1) 20.6

101.0

(1.0)

Average Female 27.0 100 18.0 100

Male 33.0 100 20.4 100

200

73 to 90 per cent in CDZ (Table 7.7). The study showed that the wage bill was

remitted directly to the bank / post office accounts of the beneficiary households.

Table-7.7: Bank / Post Office Account Details of the MGNREGS Workers

in Selected Districts of CDZ and STZ

7.7: Impact of MGNREGA on Household Income of the Workers

MGNREGA was conceived to ensure livelihood security to rural population,

who suffered by seasonal unemployment, by way of providing them employment and

thereby reduce migration of rural workforce to urban areas. Since MGNREGS is

supposed to provide employment when other works are not available and the rural

people volunteer to work under the programme, it is essentially a “demand driven”

programme and concept of “backward bending supply curve” is relevant for the

analysis. ‘Before-After’ approach was followed to analyze the impact of MGNREGA

and the results are presented in Tables 7.8 to 7.12.

From the Table 7.8 and Graph 7.E it can be seen that there had been an

incremental income of around Rs. 950 per person per annum, with an additional

employment for one member of a family for about 21 days. Migration of labourers to

other places had been reduced to an extent of 21 per cent. Since wage payment is

done through bank / post office accounts, possession of such accounts increased by 82

per cent. Increase in employment opportunity and family income enhanced job

satisfaction of the workers.

Absolute change in annual per capita income of workers after participating in

MGNREGS was the highest in Chitradurga district (Rs. 1,348) followed by

Shivamogga District (Rs. 883) and Hassan District (Rs. 860). Additional number of

working days per person ranged from 18 days in Chitradurga district to 28 days in

Hassan district. All the districts were benefited through enhancement in job

Region District Sex

Bank / post office

account opened

( per cent )

Type of bank / post

office account

(Per cent)

Joint Individual

Economically

Forward

Region (STZ)

Hassan Female 93.8 74.0 26.0

Male 95.8 69.0 31.0

Shivamogga Female 94.4 65.0 35.0

Male 99.1 59.5 40.5

Economically

Backward

Region (CDZ)

Chitradurga Female 100.0 73.3 26.7

Male 100.0 80.6 19.4

Davanagere Female 100.0 83.4 16.7

Male 100.0 90.2 9.8

Average Female 97.1 74.0 26.1

Male 98.7 74.9 25.2

201

satisfaction and reduction in migration of labourers which varied between 2.5 per cent

in Hassan district and 55 per cent in Davanagere district.

Research studies conducted by Kholi (2009) at the national level and Sudha

Narayanan (2008) in Tamil Nadu have shown that MGNREGS has helped the

participant workers to increase their family income, repay old debts and reduce their

misery. These findings are in conformity with the results of the present study. The

respondents reported that increase in their income had helped them to improve their

consumption, send their children to schools and reduce burden of their indebtedness

even though they could not save money.

Table -7.8: Impact of MGNREGS in Sample Districts

Sl.

No. Particulars Before

MGNREGA After

MGNREGA Absolute

change

%

chang

e

1 Annual mean income (Rs.) 6904.0 7855.0 951.0 13.8

2 No. of workers per family 2.0 3.0 1.0 50.0

3 No. of working days per person

per year 190.0 211.0 21.0 11.1

4 Job satisfaction (per cent) 30.7 76.2 45.5 148.2

5 Bank account opened (per cent) 14.6 96.3 81.7 559.6

6 Migration of workers (per cent

of beneficiaries) 43.4 22.0 -21.4 - 49.3

Graph-7.E: Per Capita Income Earned by Workers Before and After MGNREGS

Intervention in Economically Forward Region (EFR) and Economically

Backward Region (EBR)

202

The paired t test results, significant for incremental income earned per annum

and incremental person days of employment obtained per annum after MGNREGS

intervention at 5 per cent and 1 per cent confidence level, respectively, for Hassan

district shows that the scheme had significantly benefited the workers in terms of both

increasing their employment days and annual income.

Table 7.9: Impact of MGNREGS in Hassan District (STZ)

Particulars Before

MGNREGS

After

MGNREGS

Absolute

change

Percentage

change

Paired

t test

Annual mean income (Rs.) 6725 7584.5 859.5 12.8 2.16*

No. of workers per family 2.3 2.6 0.3 13.3 0.95NS

No. of working days per

person per year 187.8 216.3 28.5 15.2 3.15**

Job satisfaction (%) 30 77.5 47.5 158.3

Bank account opened (%) 7.5 95.0 87.5 1166.7

Migration of workers (per

cent of beneficiaries) 22.5 20.1 -2.4 - 10.7

*Significant at5 per cent confidence level, ** Significant at 1 per cent confidence level

NS=Non significant

The paired t test results, significant for incremental income earned per annum

at 5 per cent confidence level and number of workers per family as well as

incremental person days of employment obtained per annum after MGNREGS

intervention at 1 per cent confidence level, for Shivamogga district shows that the

scheme had significantly benefited the workers in terms of providing job to additional

members of the family, increasing their employment days and annual income.

Table-7.10: Impact of MGNREGS in Shivamogga District (STZ)

Particulars Before

MGNREGS After

MGNREGS Absolute change

Percentage change

Paired t test

Annual mean income (Rs.) 6867.5 7750 882.5 12.9 2.49*

No. of workers per family 1.9 2.3 0.4 21.1 2.72**

No. of working days per person per year

187.9 208.8 20.9 11.1 3.35**

Job satisfaction (per cent) 37.5 62.5 25 66.7

Bank account opened (%) 17.5 90 72.5 414.3

Migration of workers (% of beneficiaries)

47.5 32.5 -15 - 31.6

*Significant at5 per cent confidence level, ** Significant at 1 per cent confidence level

203

The paired t test results, significant for incremental income earned per annum,

number of workers per family as well as incremental person days of employment

obtained per annum after MGNREGS intervention at 1 per cent confidence level, for

Chitradurga district shows that the scheme had significantly benefited the workers in

terms of providing job to additional members of the family, increasing their

employment days and annual income.

Table-7.11: Impact of MGNREGS in Chitradurga District (CDZ)

Particulars Before

MGNREGS

After

MGNREGS

Absolute

change

Percentage

change

Paired

t test

Annual mean income (Rs.) 6902.5 8250 1347.5 19.5 2.71**

No. of workers per family 1.9 2.8 0.9 47.4 3.59**


person per year 180 198 18 10.0 3.27**

Job satisfaction (%) 35 70 35 100.0

Bank account opened (%) 7.5 100 92.5 1233.3

Migration of workers (% of

beneficiaries) 35.5 22.5 -13.0 - 36.6

** Significant at 1 per cent confidence level

The paired t test results, significant for incremental income earned per annum,

number of workers per family as well as incremental person days of employment

obtained per annum after MGNREGS intervention at 1 per cent confidence level, for

Davanagere district shows that the scheme had significantly benefited the workers in

terms of providing job to additional members of the family, increasing their

employment days and annual income.

Table-7.12: Impact of MGNREGS in Davanagere District (CDZ)

Particulars Before

MGNREGS

After

MGNREGS

Absolute

change

Percentage

change

Paired t

test

Annual mean income (Rs.) 7122.9 7835.4 712.5 10.0 -6.55**

No. of workers per family 1.9 2.6 0.7 36.8 -7.62**


person per year 201.1 220.9 19.8 9.8 -6.10**

Job satisfaction (per cent) 20.4 94.6 74.2 363.7

Bank account opened (%) 25.8 100.0 74.2 287.6

Migration of workers (per

cent of beneficiaries) 67.9 12.9 -55.0 - 81.0

** Significant at 1 per cent confidence level

204

Table -7.13: Benefits from Governmental Programmes for Canal Irrigated

Area Farmers (CIA) of Tumkur District: 2011

Type of programme Name of the programme/

scheme

No. of farmers

benefited out of

35 farmers (%)

Annual benefit

availed per beneficiary family (Rs)

Frequency of benefit flow

Amortized benefit from

long-term programme/

beneficiary/year (Rs)

1. Programmes concerning food & nutritional security

Ration Card 33 (94) 3984 Monthly

2.

Wage employment schemes

MGNREGA 1 (3) 5000 Once a year SHG loans &

subsidies 6 (17) 1350 Once a year

3.

Education subsidy

Premetric scholarship

13 (37) 815 Once a year

Kaliyuva Makkalige Cycle

8 (23) 2400* One time long term benefit

Amortized benefit =276

4. Integrated Child Development Scheme

Mid-day Meal 13 (37)

765 Daily

5. Social security

Old age pension 11 (31) 4800 Monthly Widow pension 2 (6) 4800 Monthly Disability pension 1 (3) 4800 Monthly

Bhagyalakshmi 2 (6) 19300* # One time long term benefit


6. Housing scheme Ashraya 2 (6) 22500*

One time long term benefit


Indira Awass Yojana



7. Electricity Bhagyajyothi 10 (29) 360 monthly

8. Drinking water and sanitation

Panchayath water supply

35 (100) 163 Daily

9. Health Yashaswini 5 (14) 0 Once a year

10. Animal Husbandry Dairy Entrepreneurship Dev.Scheme



11. Agricultural Department

Comprehensive crop insurance scheme



Subsidies for seeds

28 (80) 164 Twice a year

subsidies for drip irrigation



12. Horticulture Department

Suvarna Bhoomi Yojana



13. Farm Machineries and Implements

Subsidy for Tractor



Subsidy for Country plough



Note: Figures in parentheses indicate percentage to total * indicates benefits from long term benefits. # Under this project, Rs 19, 300 is deposited as fixed deposit in Nationalized Bank in the name of the girl child, which yields Rs 1,0 00,97 after 18 years Source: Sowndarya, D.C., 2012, Utilization of Benefits from Governmental Programmes/Schemes by farmers in Karnataka, M.Sc. Thesis (unpublished), University of Agricultural Sciences, Bangalore.

205

Table-7.14: Benefits to Farmers from Governmental Programmes in

Ground Water Irrigation Area (GIA) of Tumkur District: 2011

Type of

programme

Name of the

programme/scheme

No. of

farmers

benefited

out of

35

farmers

(per cent)

Annual

benefit

availed per

beneficiary

family (Rs)

Frequency of

benefit flow

Amortized

benefit from

long-term

programme/

beneficiary/ye

ar (Rs)

1 Programmes

concerning

food and

nutritional

security


2

Education

Subsidy

Premetric

Scholarship 11 (31) 427 Once a year

Kaliyuva Makkalige

Cycle 5 (14) 2400*

One time

long

term benefit

Amortized

benefit

=276

3 Integrated

Child

Development

Scheme

Midday Meal 7 (20) 765 Daily

4 Social

Security Old age pension 9 (26) 4800 Monthly

5 Drinking

Water And

Sanitation

Panchayath Water

Supply 35 (100) 155 Daily

6 Health Yashaswini 18 (51) 0 Once a year

7 Animal

Husbandry

Feed distribution

scheme

(from cooperatives)

21 (60) 9806 Monthly

8

Agricultural

Department

Subsidies for seeds 17 (49) 332 Twice a year

Subsidy for drip

irrigation 1 (3) 60000*

One time

long

term benefit

Amortized

benefit

=6900

9

Farm

Machineries

and

Implements

Subsidy for Tractor 1 (3) 30000*

One time

long

term benefit

Amortized

benefit

=3450

Subsidy for Power

tiller 3 (9) 50000*

One time

long

term benefit

Amortized

benefit

=5750 Note: Figures in parentheses indicate percentage to total *indicates benefits from long term benefits

Source: Sowndarya, D.C., 2012, Utilization of Benefits from Governmental Programmes/Schemes by

farmers in Karnataka, M.Sc. Thesis (unpublished), University of Agricultural Sciences, Bangalore.

206

Table -7.15: Benefits to Farmers from Governmental Programmes in Rainfed

Area (RFA) of Tumkur District: 2011

Type of programme Name of the

programme/scheme

No. of

farmers

benefited

out of

35

farmers

(per cent)

Annual

benefit

availed per

beneficiary

family (Rs)

Frequency of

benefit flow

Amortized

benefit from

long-term

programme/

beneficiary/year

(Rs)

1

Programmes

concerning food

and

nutritional

security


2 Education

Subsidy

Premetric

Scholarship 23 (66) 320 Once a Year

Kaliyuva

Makkalige Cycle 16 (46) 2400*

One time long

term benefit

Amortized

benefit =276

3

Integrated Child

Development

Scheme

Mid-day Meal 23 (66) 765 Daily

Anganawadi 4 (11) 765 Daily

4 Social Security

Old age pension 13 (37) 4800 Monthly

Widow pension 1 (3) 4800 Monthly

Disability pension 2 (6) 8400 Monthly

Bhagyalakshmi 3 (9) 19300*≠ One time long

term benefit

Amortized

benefit=1305

5 Housing Scheme

Ashraya 3 (9) 48333* One time long

term benefit

Amortized

benefit=5558

Indira Awas

Yojana 19 (54) 52632*

One time long

term benefit

Amortized

benefit=6052

6 Electricity Bhagyajyothi 30 (86) 360 monthly

7

Drinking Water

and

Sanitation

Panchayath Water

Supply 35 (100) 155 Daily

8 Health Yashaswini 10 (29) 0 Once a Year

9 Animal

Husbandry

Feed distribution

scheme (from cooperatives)

6 (17) 4620 monthly

10 Agricultural

Department Subsidies for seeds 9 (26) 120

Twice a

Year

Note: Figures in parentheses indicate percentage to sample of 35

* indicates benefits from long term

≠ Under this project, Rs 19, 300 is deposited as Fixed Deposit in Nationalized Bank in the

name of the girl child, which yields Rs 1,0 00,97 after 18 years

Source: Sowndarya, D.C., 2012, Utilization of Benefits from Governmental Programmes/Schemes

by farmers in Karnataka, M.Sc. Thesis (unpublished), University of Agricultural Sciences,

Bangalore.

207

Study by Sowndarya (2012) on utilization of benefits from governmental

programmes / schemes by farmers in Karnataka shows that on an average a rural

household derived Rs. 3984 worth of benefit per annum through distribution of

subsidized food grains under public distribution system, Rs. 4800 worth of benefit per

annum in the form of old age / widow pension, Rs. 5503 worth of amortized benefit

from Indira Awas Yojana. Income from MGNREGS in the four districts where the

present study was conducted when adjusted for the inflation rate (from the

information presented in Table 7.1) and compared with benefit from other

programmes studied by Sowndarya, was found to be lesser in both economically

backward (Rs. 4240 per annum and Rs. 2,083 per annum in Chitradurga and

Davanagere districts, respectively) and economically forward (Rs. 2,282 per annum

and Rs. 2,512 per annum in Shivamogga and Hassan districts, respectively) regions.

The reason could be that, unlike public distribution system, pension schemes or Indira

Awas Yojana, MGNREGS is an intervention to provide supplementary employment

when the workers do not get any other gainful employment and not a regular

employment generating programme.

To compare incremental income earned by the workers from MGNREGS with

similar income of beneficiaries from other poverty alleviation programmes,

incremental income earned by SGSY beneficiaries in Tamil Nadu during 2003-04

(Rs. 2,500 on an average per annum per household), as reported by Arul Prakash

(2004), was adjusted for inflation (6 per cent). The incremental income per household

from MGNREGS earned by sample respondents in economically forward region (Rs.

2,236 in Hassan district and Rs. 2,031 in Shivamogga district) and economically

backward region (Rs. 3,774 in Chitradurga district and Rs. 1,854 in Davanagere

district) when compared with inflation adjusted incremental income from SGSY in

Tamil Nadu (Rs. 3,346 per annum per household), was found to be substantially lower

except in Chitradurga district. This result again stresses the positive role played by

MGNREGS in severely drought affected districts.

Some of the other studies conducted in various states to assess the incremental

income earned by the beneficiaries of poverty alleviation schemes have shown that

increase in income of the beneficiaries of IRDP, Anthyodaya and Food for Work

Programme in Bihar (1980) was 41 per cent, Anthyodaya programme in Uttar Pradesh

(1981) was about 44 per cent, IRDP in Kerala (1985) was around 28 per cent,

208

TRYSEM (1996) was 16 per cent which were higher than the incremental income (14

per cent) earned by MGNREGS workers in the selected districts of Karnataka.

Figure-7(ii): Propensity to Consume and Save

E

N

-ve saving

In figure 7(ii) on Y- axis, consumption and savings and on X-axis, income is

measured. C is consumption line, the 45º line is Y = C. At point E, consumption =

income. Before E consumption is greater than income and in this region savings is

negative or the individual is either using his past savings or is borrowing money to

fulfill his consumption needs. After point E on the right hand side consumption is

less than income, the individual saves money.

Analysis of the data collected from the sample workers shows that all the

additional income earned by working in MGNREGS had been utilized to meet their

family consumption needs, except in case of a few women workers, who have shown

positive signs of savings, albeit small. As a result, workers’ marginal propensity to

consume turned out to be 1 and hence marginal propensity to save, in general, was 0,

indicating that the workers have not yet reached a state of Keynesian Psychological

Law of Consumption and are still in the process of fulfilling their basic minimum

needs. This calls for continued employment support through MGNREGS till the

worker households cross the point E shown in Fig. 7(ii).

So, these results have proved our hypothesis that MGNREGS has better

facilitated the enhancement of employment, income and expenditure. But, since MPC

Consu

mpti

on &

Inco

me,

Sav

ing

Positive saving

C < Y

C

Y = C

O

C > Y C=Y

Total Output or Income

Y = a + bx

209

was 1, MPS proved to be 0, that part of hypothesis stating an enhancement in savings

because of participation in the scheme has to be rejected.

MANOVA Results presented in Table 7.16 shows that F-statistics for number

of working days per person per year was highly significant (at 1 per cent confidence

level) indicating that economically backward and forward regions were significantly

different with respect to number of additional days of employment received by

workers participating in MGNREGS, reiterating the importance of that scheme for

mitigating misery of wage earners in the economically backward regions.

Table-7.16: Difference between Economically Forward and Backward Regions with

respect to MGNREGS Performance Indicators

Particulars Annual mean

income (Rs.)

Number of

workers per

family

Number of

working days per

person per year

Economically Forward

Region (n=160) 7456.50 2.32 199.59

Economically Backward

Region (n=150) 7856.70 2.42 209.87

F-statistics 1.54 0.58 8.25**

**- Significant at 1 per cent confidence level

7.8:MGNREGA and Gender Equity

Though in discharging both farm and household duties and responsibilities

women bear the major burden, it is the men members of the households who take all

the decisions, either social or economic aspects, and opinions of women members are

rarely sought. With an objective of addressing this gender inequality in rural India

MGNREGA has stipulated to reserve 33.33 per cent of the employment generated to

women and pay the same wage rate to both male and female workers. As revealed by

Table 7.17, wage earnings per woman worker in absolute terms as well as in terms of

Index number of their wage income were higher in economically backward region

(Rs. 3,288.2 and 151.31 in Chitradurga and Rs. 2,190.60 and 101.00 in Davanagere,

respectively) than in economically forward region (Rs. 1,732.6 and 79.7 in Hassan

and Rs. 1,481.5 and 68.2 in Shivamogga, respectively). The reason behind differential

participation of women workers in MGNREGS in the two regions could be that

Chitradurga is a severely drought prone district, while Shivamogga is having high

share of irrigated area and hence is agriculturally prosperous resulting in greater

210

demand for agricultural labour. The women workers could save on an average Rs. 59

per month after participating in MGNREGS. The savings per woman worker did not

have any relationship with the economic status of the district and were higher in

Shivamogga (Rs.74 per month), and Chitradurga (Rs.67) districts compared to Hassan

(Rs.54) and Davanagere (Rs.40) districts.

Participation of women workers in decision making pertaining to household

management varied from a higher participation to the tune of 65 per cent in

Shivamogga district to lower participation to an extent of 33 per cent in Davanagere

district, with an average participation of 59 per cent. Membership of women workers

in Self Help Groups was above 80 per cent on an average, while it was cent per cent

in the economically backward region.

MGNREGA has played a positive role in empowering women in the study

areas.

Roy (2009) in his study conducted in Tripura found that MGNREGS enabled

women workers to buy LIC policies and Recurring Deposit accounts, there by

empowering them. Economic empowerment of women through MGNREGA was also

reported by Sudha Narayan (2008) in Tamil Nadu and Naganagoud and Uliveppa

(2010) in their study at the national level. The results of the present study are in

conformity with those results.

Table -7.17: Participation of Women Workers in MGNREGS in STZ and CDZ

Region District

Wage bill

from

MGNREGP

(Rs.)

Index

number

of wage

income

(Average

= 100)

Bank /

Post

Office

account

opened

(%)

Savings

per month

(Rs.)

Participation

in house hold

decision

making

(%of

beneficiaries)

Member

-ship in

SHG

(%)

Economi

cally

Forward

Region

(STZ)

Hassan 1732.6 79.7 93.8 53.8 43.4 82.9

Shivamogga 1481.5 68.2 94.4 74.5 65.4 67.2

Economi

cally

Backwar

d Region

(CDZ)

Chitradurga 3288.2 151.31 100 66.7 44.5 100.0

Davanagere 2190.6

101

100

40.0

33.3

100.0

Average 2173 100 97.1 59 47 88

211

These results show that MGNREGA has a positive influence on all the five

components of women empowerment viz; : (i) women's sense of self-worth with

MGNREGA ensuring same wage rate to women as that of men (ii) their right to have

and to determine choices provided by 100 days of employment guaranteed by

MGNREGA (iii) their right to have access to opportunities and resources ensured by

one-third of the MGNREGS employment reserved for women (iv) their right to have

the power to control their own lives, both within and outside the home as the women

workers expressed in the interviews for the study that they have a say in decision

making relating to at least family affairs now (v) Their ability to influence the

direction of social change to create a more just social and economic order, nationally

and internationally is positively affected, at least at the village level, though not at the

national / international level, facilitated by their participation in socio-economic

activity groups at the community level, like Self Help Groups (SHGs).

As Young (1993) puts it, empowerment is achieved if and when women set

the agenda, organize mutual self help in the neighbourhood, group or network,

demand accountability by the state and society for change. It is the women´s needs

and visions that are at the centre point.

This will require support from men to change those aspects of their behaviour,

roles and privileges which currently discriminate against women. The extent of

current disadvantage and inequality means that women’s empowerment may require

support by development agencies at household, community and macro levels.

MGNREGA has done exactly that by providing women equal employment

opportunity, equal wages, participation in gram sabhas to decide the works to be taken

up in the village under MGNREGS, financial inclusion through opening of bank

accounts and participating in SHGs and being part of social auditing of the scheme.

Similarly, the results of this study are in conformity with Longwe’s (1989,

1991) argument on progression in women empowerment with respect to access to

resources of production, participation in decision making process and equality of

control over distribution of benefits so that neither men nor women are in a position

of dominance.

The results also show that MGNREGS benefits are paving in the right

direction concerning gender issues to fit in to CASHE’s Empowerment Matrix

212

regarding women’s economic, social and political empowerment at individual,

household and community level.

Based on the results and discussions presented in the preceding paragraphs we

accept our fifth hypothesis that participation of women workers in MGNREGS has

increased their involvement in social and economic group activities and household

decision making and has enhanced their economic empowerment.

7.9: Monitoring of MGNREGS works in STZ and CDZ

MGNREGA has twin basic objectives of providing livelihood security to rural

populace and at the same time creating durable assets, useful for the community. In

this context the issue of involvement of contractors and use of mechanical devices in

the execution of works under MGNREGP and obtaining technical guidance from the

experts from the concerned development department/s are crucial. Periodic

supervision of the progress of work by the relevant development department, and

certification of quality of works executed by the competent authority at the district /

taluk / panchyath levels are inbuilt in MGNREGA. To ensure transparency at all

levels Management Information System (MIS) has been introduced in the programme.

Details pertaining to efficacy of execution and monitoring of MGNREGS is presented

in Table 7.18.

Among the four sample districts of STZ and CDZ only in Chitradurga

evidence of use of contractors and machineries to execute works under MGNREGS

was found. The workers responded that measurement of work was done regularly and

in time. However, technical guidance regarding location and supervision of

MGNREGS works was poor which needed to be improved through coordination and

convergence among line departments to ensure quality of assets created. As

complained by Gram Panchayath officials delay in completing MB book was causing

delay in disbursement of wages. As part of monitoring process the concerned Zilla

Panchayath engineers were certifying the works executed before labour payment.

The Social Audit is an integral part of monitoring and evaluation procedures

instituted in order to appraise the performance of MGNREGS works. But, except for a

few workers in Shivamogga district, the participants in MGNREGS were unaware of

social audit. Social auditing was yet to be initiated in most of the Gram Panchayaths

under study. Prompt social audit involving all the stakeholders would ensure

213

transparency in administration, financial accounting, and efficiency in implementation

of the program.

Implementation of MIS was good in economically forward region where as it

was moderate in economically backward region. Although MIS was maintained

appreciably at district level and at block levels, frequent power failure and internet

connectivity problems were affecting functioning of MIS at Gram Panchayath levels.

Computer operators had been appointed in most of the Gram Panchayaths for MIS

maintenance. Unfotunately, in some taluks like Molakalmur in Chitradurga district,

the computer operators had to periodically visit block offices to update MGNREGS

information since the Panchayath Offices did not have UPS and for that reason all the

computers of Gram Panchayaths had been installed in block offices. So, it was found

necessary to supply solar energy charged UPS systems to Gram Panchayaths for the

maintenance of unhindered ICT.

Table-7.18: Details of Monitoring of MGNREGS Works in STZ and CDZ

* The Executive Officer informed that Social Auditing was undertaken in this region,

However the workers were not aware about this process.

Particulars

Economically Forward

Region (STZ)


Region (CDZ)


Execution

of work

Work done by

contractors and

machine labour

No No Yes No

Measurement of

work done one time

with in a fortnight

Yes Yes Yes Yes

Technical

supervision No No No No

Monitoring

Measurement of

work done Yes Yes Yes Yes

Certification of

work done Yes Yes Yes Yes

Monitoring

functionaries

Gram

Panchayath

and Block

Level Office

Gram

Panchayath

Gram

Panchayath

Gram

Panchayath

Social audit done (Yes/No) No Yes No No*

Implementation of Management

Information System Good Good Moderate Moderate

214

7.10: MGNREGS and Natural Resource Conservation

MGNREGA lists nine categories of works to be taken up to create wage

employment for the needy rural people. Natural resource conservation gets priority in

creating community assets under MGNREGA. The empirical study results presented

in Table 7.19 and Graph 7.F to 7.I show that both in Economically Forward Region

and Economically Backward Region natural resource conservation activities including

construction of water conservation structures, irrigational canals and rehabilitation of

traditional water bodies were given priority and they accounted for more than 50 per

cent of the MGNREGS expenditure during the study period. However, only in

Davanagere district rural connectivity was also given importance (27 per cent of the

total MGNREGS expenditure) in selection of works by the Gram Sabha. The works

on individual cultivators’ farm accounted for a mere three per cent of the total

utilization.

Table-7.19 : Proportion of MGNREGS Expenditure in Percentage on

Different Types of Works in STZ and CDZ

Type of Work

Economically

Forward Region

(STZ)


Region (CDZ)


Flood control 0.50 5.31 11.31 17.08

Rural connectivity 2.32 7.79 3.76 26.95

Water conservation and water

harvesting 28.45 5.22 50.10 14.00

Renovation of traditional water

bodies 33.93 17.96 7.96 5.50

Drought proofing 9.16 9.23 6.45 20.80

Irrigation canals 12.64 25.69 6.89 5.33

Irrigation facilities to SC/ST/IAY 1.78 1.72 2.34 3.35

Land development 7.00 18.26 3.26 4.03

Other works 4.21 8.83 7.94 2.95

Total 100.00 100.00 100.00 100.00

215

Graph-7.F: Proportion of MGNREGS Expenditure in Percentage on

Different Types of Works in Hassan District (STZ)

Graph-7.G: Proportion of MGNREGS Expenditure in Percentage on

Different Types of Works in Shivamogga District (STZ)

216

Figure-7.H: Proportion of MGNREGS Expenditure in Percentage on

Different Types of Works in Chitradurga District (CDZ)

Graph-7.I: Proportion of MGNREGS Expenditure in percentage on

Different Types of Works in Davanagere District (CDZ)

Earlier studies conducted by Arun and Richard (2006) and Kareemullah et al

(2009) have also shown that similar to the results of the present study, priority was

accorded to natural resource management in MGNREGS works selection in the

neighbouring states of Kerala and Andhra Pradesh.

217

7.11: Impact of MGNREGS on Village Development

Natural resource conservation works like rejuvenation of water bodies and

water conservation activities, taken up under MGNREGP increased the area under

irrigation, improved ground water recharge, in tank as well as well command areas

and improved incomes of farmers. The details of works executed and short term

impacts are presented in Table 7.11.

Table -7.20: Types of Works Executed And the Short Term Impact of

MGNREGA on Natural Resource Conservation Sl.

No. Works executed Short term impact

Areas where impact was

felt

1 Desiltation of Tanks Improved water bodies. Improvement in water

impounding and ground water recharging.

Increased irrigated area. Double cropping.

All sample districts.

2 Construction of

Check dams

Improvement in water table.

.

All sample districts.

3 Rejuvenation of

Water bodies

Increased availability of drinking water for

livestock during the summer season.

Davanagere

(Harapanahalli Taluk) and

Hassan districts.

4 Clearing drainages

and diverting excess

water flow

Flooding of roads and houses in the low lying

areas and disruption of vehicular traffic during

rainy days, stagnant water creating health

hazards avoided.

Shivamogga (Bhdravati

Taluk), Chitradurga

(Hiriyur Taluk), and

Davanagere districts.

5 Bunding and Land

development

activities

Reduction in soil erosion and improvement in

land productivity.

Shivamogga (Bhadravati

Taluk) and Hassan

(Arasikere Taluk) districts.

7.12: Factors affecting performance of MGNREGS in sample districts of

Economically Forward and Backward Regions of Karnataka

To identify the those factors that affect the performance of MGNREGS in

economically backward and forward regions and suggest measures to improve its

efficacy in poverty alleviation from rural India, Discriminant Analysis, Factor

Analysis and Cluster Analysis were undertaken. Pertinent data for the analysis were

obtained from MGNREGA website for a time period of four years from 2008-09 to

2011-12. The results of the analysis with suggestions for improvement are presented

hereunder.

7.12(i): Discriminant Analysis

Among the 18 variables considered for the analysis seven variables were

found to discriminate the economically backward and the economically forward

regions (Table 7.21 to 7.28). In economically forward region, 10,121 families fell

under BPL category, while in economically backward region 21,791 families were

BPL. Similarly the employment provided in person days was 5,28,390 in

218

economically backward region, while in economically forward region, the

employment received was 6,73,060 person days. In case of other variables, the levels

of variables were comparable. The coefficient of variation of all the variables except

that of number of BPL households and rural connectivity in kms had crossed 100 per

cent of variation and showed very high variability. These high variations resulted in

difficulty in generalizing.

The data regarding extent of MGNREGS activities under different heads are

provided in MGNREGA website. The data for eighteen variables viz; rural

connectivity in kms, flood control and protection in kms, water conservation and

water harvesting in cubic meters, drought proofing in hectares, micro irrigation Works

in kms, renovation of traditional water bodies in Cubic meters, land development in

hectares, number of workers with bank / post office account number, number of job

cards issued, number of households registered in MGNREGS, number of households

whose status is BPL, number of small farmers, number of marginal farmers, land

reform beneficiaries, IAY beneficiaries, employment provided under MGNREGS in

Person days, funds available for the scheme in lakh Rupees, between 31-90 days

delay in issuing Job cards, were obtained from the official website of MGNREGA for

the economically backward districts of Chitradurga and Davanagere and economically

forward districts of Shivamogga and Hassan. These variables were hypothesized to

discriminate the economically forward region from the economically backward region

with regard to MGNREGS works. From among those 18 variables, the canonical

discriminant function identified seven vital variables, which contributed to explaining

around 82 per cent of the Discriminant function. The balance 18 per cent of the

variation in the Discriminant function was not explained as indicated by the Wilks’

lambda value. The seven variables which discriminated the economically forward

region from that of the economically backward region were number of households

whose status has been BPL (1.794), employment Provided in Person days ( -1.264),

water conservation and water harvesting in cubic meters (-0.925), rural connectivity

in kms (0.855), renovation of traditional water bodies in Cum (0.762), drought

proofing in hectares (0.463) and IAY beneficiaries in numbers (0.347) in the order

of importance in discrimination of economically forward with economically backward

areas with regard to MGNREGS implementation.

The results of dicriminant function analysis can be validated with the field

level observation. The number of households under BPL in economically backward

region was double the number in economically forward region. The objective of

219

MGNREGA is to ensure livelihood security to the rural mass and help them to move

to APL category. The results of the study show that employment provided in person

days in backward region was nearly 30 per cent more than that in economically

forward region, rural connectivity works taken up was three times more, renovation of

traditional water bodies was four times higher, drought proofing work was double,

benefits extended under IAY was ten per cent higher in economically backward

region than in the economically forward region. This shows that the activities

undertaken under MGNREGS is in the right direction as envisioned. The activities

have to be further strengthened to achieve the goal of poverty alleviation in rural

India. The results prove our seventh hypothesis that drought proneness and proportion

of cultivated area under irrigation are two of the major factors (though not the only

two) contributing to performance of MGNREGS.

Table 7.21: Variables Discriminating Economically Forward Region from

Economically Backward Region in Karnataka with Respect to

MGNREGS Activities: 2008-09 to 2011-12

Sl.

No Discriminating variables

Mean for

Economically

Backward

region (d1)

Coefficien

t of

Variation

Mean for

Economicall

y forward

region (d2)

Coefficient

of

Variation

1 Rural Connectivity in Kms. 38 37 11 114

2 Water Conservation and Water

Harvesting in Cum 4 180 4 146

3 Drought Proofing in Hect 2 257 1 178

4 Renovation of traditional

water bodies in Cum 9 232 2 132

5 BPL Households in numbers 21791 58 10121 63

6 IAY Beneficiaries in numbers 220 118 199 131

7 Employment Provided in

Person days 673060 130 528390 49

Summary of Canonical Discriminant Functions

Table-7.22: Eigenvalues

Function Eigenvalue

Per cent of

Variance

Cumulative

Percentage

Canonical

Correlation

1 4.605a 100.0 100.0 .906

a. First 1 canonical discriminant functions were used in the analysis.

220

Table-7.23: Wilks’ Lambda

Test of Function(s) Wilks’ Lambda Chi-square df Sig.

1 .178 37.057 7 .000

Table -7.24: Contribution of Variables Towards Discriminant Function (in %)

Sl.

No.

Variables Standardized Discriminant

Coefficient (SDC)

1 Rural_Connectivity_KM .855

2 Water_Conservation_Water_Harvesting_Cum -.925

3 Drought_Proofing_Hect .463

4 Renovation_traditional_water_bodies_Cum .762

5 BPL_HHS 1.794

6 IAY_Beneficiary .347

7 Employment_Provided_Persondays -1.264

Discriminant function analysis shows that MGNREGS meets the ‘equity’

considerations, since the forward and backward regions cannot be treated uniformly,

according to the Hirshmanian unbalanced growth hypothesis. The Hirschman’s

unbalanced growth theory states that the economy should give selective impetus to

those sectors which contribute to growth. MGNREGS can be said to have achieved

‘Equity with Inclusive growth’, since the employment provided in economically

backward region and forward region are distinct. Hence, economically backward

region should continue to receive higher attention and higher MGNREGS

opportunities compared with forward regions. The discriminant function analysis has

apparently identified the number of BPL households and the employment

opportunities created by MGNREGS as the most important variables which are

distinct across the backward and forward regions of Karnataka. Thus, creation of

employment opportunities under MGNREGS in the region having higher number of

BPL households has led to welfare gain due to its differential focus considering the

level of development.

The economically backward areas are prone to frequent droughts. With poor

on-farm and macro agricultural infrastructure, farmers in dry land areas are cultivating

crops such as groundnut, millets, maize and frequently out migrate in search of

221

employment. In order to check outmigration, it is in order for the administration to

further strengthen MGNREGS activities in economically backward region by offering

higher employment opportunities than in the forward region. This will lead to

inclusive growth as well as sustainable growth, addressing the social tensions due to

recurrent drought as well as in reducing income inequalities caused due to natural

factors including climate change. Activities including water conservation, rural

connectivity, renovation of traditional water bodies, drought proofing and

construction of houses under IAY for socially downtrodden families would address

the equity issues in the rural areas in the process of poverty alleviation.

These results along with performance index of expenditure, performance index

of works completed and performance in terms of employment provided, which were

much higher in economically backward region when compared with that in

economically forward region (Table 7.1), indices of number of days worked under

MGNREGS which show that extent of utilization of MGNREGA provision was

higher in economically backward region than in economically forward region (Table

7.6), wage earnings per woman worker in absolute terms as well as in terms of Index

number of their wage income, which were higher in economically backward region

than in economically forward region (Table 7.17), show that backward districts have

greater potential for MGNREGA activities.

7.12(ii): Factor Analysis

Factor analysis aims at determination of latent variables subsumed in a set of

original variables. It provides a means of explaining variation among relatively large

number of original variables. This corresponds to dimension reduction or information

condensation function of factor analysis, through which the variation among large set

of original variables can be accounted for by using fewer unobservable variable called

latent variable or dimensions. Further, this technique helps in interpretation of

substantive content of the latent variables or dimensions or factors which account for

variation among large set of variables. The results of the analysis are as follows.

222

7.12(iii): Factor Analysis for Economically Forward Region (Hassan District)

The rotated component matrix for Hassan district, an economically forward

region, demonstrated that all the seven variables grouped under the two dimensions

were positively associated. The first dimension explained 54 per cent of the variation

in the seven variables, while the second dimension explained 25 per cent [Table 7.25

(i) and (ii)]. As the first dimension was influenced by employment provided in person

days, number of BPL households, water conservation and water harvesting in cubic

meters and rural connectivity in kms, the first dimension was accordingly termed as

“Rural Poverty and Infrastructure”.

Table -7.25: Factor Loading of MGNREGS Parameters in Hassan District

(Economically Forward Region) for the Years 2008-09 to 2011-12

7.25 (i) Total Variance Explained

Component

Initial Eigenvalues Rotation Sums of Squared Loadings

Total Per cent of

Variance

Cumulative

Percentage Total

Per cent of

Variance

Cumulative

Percentage

1 3.786 54.085 54.085 3.785 54.075 54.075

2 1.772 25.314 79.399 1.773 25.324 79.399

3 .991 14.157 93.556

4 .336 4.799 98.355

5 .075 1.074 99.429

6 .032 .463 99.892

7 .008 .108 100.000

Extraction Method: Principal Component Analysis.

7.25(ii) Rotated Component Matrixa

Variables Component

1 2

Employment Provided in Person days .988

BPL Households in numbers .963

Water Conservation and Water Harvesting in Cum .963

Rural Connectivity in Kms .939

Renovation of traditional water bodies in Cum .904

IAY Beneficiaries in number .724

Drought Proofing in Hectares .570


Rotation Method: Varimax with Kaiser Normalization.

223

Variables Component

1 2


BPL Households in numbers .963








a. Rotation converged in 3 iterations.

The second dimension was influenced by renovation of traditional water

bodies, number of IAY beneficiary households and drought proofing. Accordingly,

the second dimension was termed as “Natural Resource Management”. However, the

empirical study results are in contradiction with the factor analysis results with respect

to person days of employment provided and expenditure on rural connectivity, while

the results are in conformity with empirical study results regarding renovation of

traditional water bodies and water conservation activities with an allocation of 63 per

cent of the total budget (Table 7.19 and Graph. 7.F).

7.12(iv): Factor Analysis for economically forward region (Shivamogga district)

The two dimensions governing development in Shivamogga district through

MGNREGS among the seven variables are provided in the rotated component matrix.

The first dimension explained 48 per cent of the variation in the seven variables,

while the second dimension explained 25 per cent of the variation (Table 7.26 (i) and

(ii)). The first dimension encompassed four variables viz; water conservation and

water harvesting, renovation of traditional water bodies, and drought proofing. Thus,

the first dimension was named as “Natural Resource Management”. The second

dimension included two variables, viz., number of BPL households and rural

connectivity which were positively associated, while the IAY beneficiary households

were negatively associated. The second dimension was termed as “Rural Poverty” as

it dealt with variables closely associated with poverty. Thus, the focus of MGNREGS

in Shivamogga district, has to be first on Natural Resource Management followed by

Rural Poverty.

224

Table 7.26: Factor Loading of MGNREGS Prameters in Shivamogga District (Economically Forward Region) for The Years 2008-09 to 2011-12 7.26 (i): Total Variance Explained

Component


Total Per cent of

Variance

Cumulative

Percentage Total

Per cent of

Variance

Cumulative

percentage

1 3.384 48.339 48.339 3.372 48.174 48.174

2 1.747 24.964 73.303 1.759 25.130 73.303

3 1.412 20.172 93.475

4 .399 5.706 99.181

5 .038 .549 99.730

6 .019 .270 100.000

7 -2.950E-17 -4.214E-16 100.000


7.26 (ii) Rotated Component Matrixa

Variables Component

1 2





IAY Beneficiaries in number -.912

BPL Households in number .761




a. Rotation converged in 3 iterations

The empirical evidence presented in Table 7.19 and Graph 7.G validate the

factor analysis results with 62 per cent of MGNREGS expenditure for the year 2008-

09 spent on natural resource management such as renovation of traditional water

bodies, construction of irrigation canals and land development.

225

7.12(v): Factor Analysis for Economically Backward Region (Chitradurga

District)

From among the most disadvantaged districts identified by the National

Planning Commission in Karnataka, Chitradurga, Davanagere and Bidar stand out. In

Chitradurga district, the first dimension was greatly influenced by employment

provision, renovation of traditional water bodies, number of IAY beneficiaries and the

number of BPL households. In the second dimension, while water conservation and

water harvesting and rural connectivity were positively associated, drought proofing

was negatively associated. Hence, the first dimension was called “Rural Poverty”

since the variables employment provided, number of IAY beneficiaries and number of

BPL Households are adequately represented by poverty. The second dimension which

includes rural connectivity, drought proofing and water conservation, was termed as

“Rural infrastructure”. The first dimension “Rural Poverty” captured 53 per cent of

the variation in the seven variables governing MGNREGS performance, while the

second dimension “Rural Infrastructure” captured 36 per cent of the variation. In

order to develop Chitradurga district, an economically backward region, the primary

focus for the policy maker is to concentrate on ‘Rural poverty” through MGNREGS,

followed by creating “Rural infrastructure” for inclusive growth (Table 7.27 (i) and

(ii)).

226

Table-7.27: Factor Loadings of MGNREGS Parameters in Chitradurga District

(Economically Backward Region) for the Years 2008-09 to 2011-12

7.27(i) Total Variance Explained

Component


Total Per cent of

Variance

Cumulative

Percentage Total

Per cent of

Variance

Cumulative

Percentage

1 4.088 58.393 58.393 3.733 53.331 53.331

2 2.093 29.893 88.286 2.447 34.955 88.286

3 .662 9.459 97.745

4 .134 1.908 99.654

5 .024 .346 100.000

6 8.336E-17 1.191E-15 100.000

7 -1.713E-16 -2.448E-15 100.000


Table-7.27(ii) Rotated Component Matrixa

Variables Component

1 2




BPL Households in number .909



Drought Proofing in Hectares -.750




Among the four districts selected for the study MGNREGS had provided the

maximum employment to the tune of 3 lakh person days in Chitradurga during 2008-

09 (Table 7.1). And hence, the identification of poverty as the crucial dimension is

appropriate. With 50 per cent of total MGNREGS expenditure devoted to water

conservation and water harvesting works during the same year (Table 7.19 and Graph

7.H), the second dimension has been appropriately identified as Rural Infrastructure.

227

7.12(vi): Factor Analysis for Economically Backward Region (Davanagere District)

Using the Principal component method, Varimax rotation had been employed

in extracting dimensions governing MGNREGS performance in the economically

backward region (Davanagere district). Accordingly, two dimensions were extracted,

which explained 60 per cent of the total variation in MGNREGS performance [Table

7.28 (i) and (ii)].

Table -7.28: Factor Loadings of MGNREGS Parameters in Davanagere District

(Economically Backward Region) for the Years 2008-09 to 2011-12

Table-7.28 (ii) Rotated Component Matrixa

Table-7.28 (i) Total Variance Explained

Component


Total Per cent of

Variance

Cumulative

Percentage Total

Per cent of

Variance

Cumulative

Percentage

1 2.435 34.779 34.779 2.319 33.135 33.135

2 1.821 26.018 60.798 1.936 27.662 60.798

3 1.476 21.082 81.880

4 1.113 15.895 97.775

5 .156 2.225 100.000

6 2.223E-16 3.175E-15 100.000

7 -1.956E-17 -2.794E-16 100.000


Component

Variables 1 2


Renovation of traditional water bodies in Cum -.845



BPL Households .887


Drought Proofing in Hectares -.348




228

The first dimension comprising of four variables and the second dimension

holding three variables highlight their relative importance. Among the four variables,

rural connectivity, number of households which are beneficiaries of IAY, employment

provided in person days had a positive association with the first dimension. However,

the variable, renovation of traditional water bodies had negative association. Among

the three variables in the second dimension, the number of BPL households, and

water conservation and water harvesting had a positive association with the

dimension, while the variable drought proofing was negatively associated with the

dimension. Thus, the first dimension was named as “Rural Infrastructure” and the

second dimension was termed as “On Farm Infrastructure”, which is crucial for BPL

households in terms of water conservation and water harvesting. Rural Infrastructure,

the first dimension, captured 33 per cent of the variation in the seven variables

governing MGNREGA performance, while the second dimension, On Farm

Infrastructure, captured 28 per cent of the variation.

The empirical evidence from the study conducted in Davanagere district

during 2008-09 (Table 7.19 and Graph 7.I) showed that rural connectivity which is an

important component of rural infrastructure development with 27 per cent of the total

MGNREGS expenditure during 2008-09 had been given the utmost importance with a

high factor loading of 0.90 in factor analysis. Identification of water conservation and

water harvesting work as one of the crucial component of second dimension (farm

infrastructure) having a factor loading of 0.868 is in conformity with the findings of

present empirical study.

Hence, the policy makers need to focus on development of “Rural

infrastructure”, followed by “On Farm Infrastructure” in Davanagere district through

MGNREGS.

Thus, looking into the results of Factor Analysis for Hassan and Shivamogga

districts, it can be said that the focus of development through MGNREGS in

economically forward region should be on Natural Resource Management, while in

economically backward region consisting of Davanagere and Chitradurga districts the

onus of the scheme activity has to be on Rural Infrastructure development.

229

7.12(vii): Cluster Analysis

The objective of cluster analysis is to group the variables into clusters

such that elements within a cluster have a high degree of "natural association"

among themselves, while the clusters are "relatively distinct" from one another. The

results of cluster analysis for the two regions comprising of four districts is presented

below.

7.12(viii): Cluster Analysis for Econommically Forward Region (Hassan District)

In Hassan district, an economically forward region, the cluster analysis has

identified two clusters of taluks. The first cluster included Holenarasipura,

Sakaleshpur, Belur, Arakalgud, Alur, Arasikere and Channarayapatna taluks. The

second cluster consisted of only Hassan taluk. Within the flrst cluster, Holenarasipura

and Sakaleshpur were closer with regard to seven variables considered, as indicated

by the similarity index of 98 per cent, followed by Holenarasipura, Sakaleshpur, Belur

and Arakalgud with a similarity index of 97.39 per cent, Holenarasipura, Sakaleshpur,

Belur, Arakalgud and Alur taluks with a similarity index of 97 per cent,

Holenarasipura, Sakaleshpur, Belur, Arakalgud, Alur and Arasikere taluks with a

similarity index of 95 per cent and Holenarasipura, sakaleshpur, Belur, Arakalgud,

Alur, Arasikere and Channarayapatna taluks with a similarity index of 91 per cent.

The squared euclidean distance between the two clusters was 3,96,149 (Table 7.29 (i)

and (ii) and Graph 7.J). Since there were disimilarities with regard to all the seven

varibales between seven taluks included in two clusters, all the variables have to be

addressed with equal importance to bring uniformity in MGNREGS performance and

its impact in Hassan district.

230

Table 7.29(i) : Cluster Profiles in Hassan District (Economically Forward Region)

for the Years 2008-09 to 2011-12

Sl.

No. Variable Cluster1 Cluster2

Grand

centroid

1 Rural Connectivity in kms 11 48 16

2 Water Conservation and Water Harvesting in

Cubic meters 5 19 7

3 Drought Proofing in Hectares 2 0 2

4 Renovation of traditional water bodies in Cubic

meters 4 0 3

5 Number of households whose status has been

selected as BPL 6914 22442 8855

6 Number of IAY Beneficiaries 104 10 93

7 MGNREGS employment Provided in Person

days 359273 1047772 445335

Table 7.29 (ii): Similarity Index and Squared Euclidean Distance in Hassan District

Step No. of

clusters

Similarity

level

Distance

level Clusters joined

New

cluster

No. of

observations in

new cluster

1 7 98.6002 12501 7 8 7 2

2 6 97.3986 23232 3 5 3 2

3 5 96.9891 26890 2 4 2 2

4 4 95.6228 39091 2 7 2 4

5 3 91.0808 79655 1 2 1 5

6 2 64.4503 317482 1 3 1 7

7 1 55.6416 396149 1 6 1 8

231

Graph-7.J: Cluster Formation in Hassan District (Economically Forward Region)

HASSAN

CHANNARAYAPATNA

ARSIKERE

SAKALESHPUR

HOLENARSIPUR

BELUR

ARKALGUD

ALUR

55.64

70.43

85.21

100.00

TALUKS

Similarity

HASSAN

7.12(ix): Cluster Analysis for Economically Forward Region (Shivamogga

District)

In Shivamogga district, an economically forward region, the cluster analysis

has identified two clusters of taluks. The first cluster comprised of Bhadravati,

Soraba, Hosanagara, Sagar and Shivamogga taluks and the second cluster had

Shikaripur and Thirthahalli taluks. Within the flrst cluster, Hosanagara and Sagar

taluks were close with regard to seven variables considered, as indicated by the

similarity index of 96 per cent. Then Hosanagara, Sagar and Shivamogga taluks were

closer with a similarity index of 95 per cent. Next, Hosanagara, Sagar, Shivamogga ,

Soraba and Bhadravthi taluks were closer with a similartiy index of 94 per cent. All

these five taluks were closer with respect to similarity in performance of MGNREGS

activities reflected in seven varibales. The two clusters had a squared euclidean

distance of 2,34,651 (Table 7.30 (i) and (ii) and Graph 7.K). Since there were

disimilarities with regard to all the seven varibales between seven taluks included in

two clusters, all the variables have to be addressed with equal importance to bring

uniformity in MGNREGS performance and its impact in Shivamogga district.

232

Table-7.30 (i) : Cluster Profiles in Shivamogga District (Economically Forward

Region) for the Years 2008-09 to 2011-12

Sl.


Grand

centroid


2 Water Conservation and Water Harvesting in Cubic

meters 3 0 2



meters 0 0 0


selected as BPL 10851 13360 11568


7 MGNREGS employment Provided in Person days 714819 394557 623316

Table-7.30( ii) Similarity Index and Squared Euclidean Distance in Shivamogga

District

Step No. of

clusters

Similarity

level

Distance


New

cluster

No. of

observations in

new cluster

1 6 95.7072 17836 2 3 2 2

2 5 95.2665 19667 2 5 2 3

3 4 94.1353 24367 1 6 1 2

4 3 88.7045 46932 1 2 1 5

5 2 82.2182 73883 4 7 4 2

6 1 43.5249 234651 1 4 1 7

Graph-7.K: Cluster Formation in Shivamogga District (Economically Forward Region)

TIRTHAHALLISHIKARPURSHIMOGASAGARHOSANAGARASORABBHADRAVATI

43.52

62.35

81.17

100.00

TALUKS

Similarity

SHIMOGA

233

7.12(x): Cluster Analysis for Economically Backward Region (Chitradurga

District )

The cluster analysis has identified two clusters of taluks in economically

backward region of Chitradurga. Within the flrst cluster, Chitradurga and Hosadurga

taluks were close with regard to the seven variables considered, as indicated by a

similarity index of 95 per cent. Next, Chitradurga, Hosadurga, Molakalmur and

Hiriyur taluks were closer with a similarity index of around 87 per cent. The first and

second clusters were distant, with the squared euclidean distance of 9,76,308 [Table

7.31 (i) and (ii)]. Here, Challakere Taluk alone formed the first cluster, while

Chitradurga taluk, Hosadurga Taluk, Molakalmur Taluk, Hiriyur Taluk and Holalkere

Taluk belonged to the second cluster. Considering the seven variables with which the

two clusters were identified, Water Conservation and Water Harvesting, were uniform

between the two clusters, while the remaining variables viz; (1) Rural Connectivity,

(2) Drought Proofing, (3) renovation of traditional water bodies, (4) number of BPL

households, (5) the number of IAY beneficiareis and (6) employment provided were

distinct between the two clusters. Thus, in order to achieve inclusive growth, in

Chitradurga district, it is crucial to focus on all these six variables. In addition, this

will bring closer the two clusters of Holalkere on to Chitradurga with Challakere.

Table-7.31(i): Cluster Profiles in Chitradurga District (Economically Backward

Region) for the years 2008-09 to 2011-12

Sl.


Grand

centroid



meters 2 2 2



meters 0 0 0


selected as BPL 50122 26128 30127


7 MGNREGS employment Provided in Person days 2744657 1063505 1343697

234

Table -7.31 (ii): Similarity Index and Squared Euclidean Distance in

Chitradurga District

Step No. of

clusters

Similarity

level

Distance


New

cluster

No. of

observations

in new

cluster

1 5 95.4455 94643 2 5 2 2

2 4 91.804 170312 2 6 2 3

3 3 91.2559 181701 2 3 2 4

4 2 68.4676 655244 2 4 2 5

5 1 53.0169 976308 1 2 1 6

Graph-7.L: Cluster Formation in Chitradurga District (Economically Backward Region)

HOLALKEREHIRIYURMOLAKALMURUHOSDURGACHITRADURGACHALLAKERE

53.02

68.68

84.34

100.00

TALUKS

Similarity

CHITRADURGA

7.12(xi): Cluster Analysis for Economically Backward Region (Davanagere

District)

The cluster analysis was performed on seven variables with a view to identify

two clusters. Accordingly the analysis had identified two clusters of taluks in

economically backward region of Davanagere. Within the flrst cluster, Harapanahalli

and Jagalur taluks were close with regard to the seven variables considered, as

indicated by the similarity index of 85 per cent. Next, Channagiri, Harapanahalli,

Jagalur and Harihara Taluks were closer with a similarity index of around 70 per cent.

In the second cluseter, Davanagere and Honnali were closer with a similarity index of

235

around 60 per cent. The first and second clusters were distant, with the squared

euclidean distance of 9,441 [Table 7.32 (i) and (ii)]. Here, Channagiri, Harapanahalli,

Jagalur and Harihara Taluks belonged to the first cluster, while Davanagere Taluk and

Honnali Taluk belonged to the second cluster. Considering the seven variables with

which the two clusters were identified, rural connectivity, drought proofing and

employment provided in person days were uniform between the two clusters, while

the remaining variables viz; (1) water conservation and water harvesting, (2)

renovation of traditional water bodies, (3) number of BPL households and (4) the

number of IAY beneficiareis were distinct between the two clusters. Thus, in order to

achieve inclusive growth, in Davanagere district, it is crucial to focus on these four

variables. In addition, this will bring closer the two clusters of Channagiri onto

Harihara with Davanagere and Honnali Taluks.

Table-7.32(i): Cluster Profiles in Davanagere District (Economically Backward

Region) for The Years 2008-09 to 2011-12

Sl.


Grand

centroid

1 Rural Connectivity in kms 44.97 49 46.3


meters 2.87 11.9 5.9

3 Drought Proofing in Hectares 0.47 0.4 0.4

4 Renovation of traditional water bodies in Cubic meters 27.98 0.4 18.8

5 Number of households whose status has been selected as

BPL 8468.75 23427 13454.8

6 Number of IAY Beneficiaries 214.25 61 163.2

7 MGNREGS employment Provided in Person days 2303.5 2653.5 2420.2

Table -7.32( ii) : Similarity Index and Squared Euclidean Distance in

Davanagere District

Step No. of

clusters

Similarity

level

Distance


New

cluster

No. of

observations in

new cluster

1 5 84.3853 3256.8 3 6 3 2

2 4 78.2873 4528.65 3 4 3 3

3 3 72.4544 5745.23 1 3 1 4

4 2 64.0508 7498 2 5 2 2

5 1 54.7333 9441.36 1 2 1 6

236

Graph-7.M:Cluster Formation in Davanagere District (Economically Backward Region)

HONNALI

DAVANAGERE

HARIHARA

JAGALUR

HARAPPANAHALLI

CHANNAGIRI

54.73

69.82

84.91

100.00

TALUKS

Similarity

Davanagere

7.13: Economic Analysis of MGNREGA in the Drought Prone States of

Karnataka and Rajasthan

Karnataka and Rajasthan are the two most drought prone states of India.

Karnataka has the second highest drought prone area next to Rajasthan with arid and

semi arid climatic conditions. Effect of MGNREGA on farmers in drought prone

areas is different from that in irrigated areas due to differential employment and wage

rates.

Paradoxically, even with high rates of unemployment, farmers are

experiencing economic scarcity of labor for all operations as the market wage rates

are way above the farm wages, affecting the supply of farm labor. The effect of

economic scarcity of labor is increasingly being felt relatively in drought prone states

than in irrigation dominated areas. Using macro level data from the unemployment

insurance program of the Government of India provided by MGNREGA for the two

drought prone states of Karnataka and Rajasthan and irrigation dominated state of

Andhra Pradesh, this section analyzes the reasons for such an economic paradox and

provides implications for policy considering provision of (a) employment to needy

237

rural families; (b) gender neutral minimum wage and (c) supplementary income to

laborers without adversely affecting labour supply to agriculture.

The hypotheses of this exercise were: (a) MGNREGS has been successful in

providing 100 days of employment per annum to rural families demanding

employment (b) MGNREGS implementation is relatively efficient in Karnataka than

in Rajasthan, providing opportunities to weaker sections of the community in

employment generated; and (c) MGNREGS causes economic scarcity of labor in

agriculture

7.13(i): Employment Generation Potential outside MGNREGS

Around 50 per cent of the households who had registered under MGNREGS

actually demanded employment. Such a modest proportion availing MGNREGA

employment was due to favorable labor market outside MGNREGS and outside

agriculture. Rural families registered for MGNREGA employment for ‘job card’ with

the perception that such a registration may provide benefits in future treating job card

akin to ‘ration card’. Of the total number of households demanding employment, 92

to 97 per cent were provided employment in the drought prone states, while for

Andhra Pradesh it was 107 per cent. Thus, in Andhra Pradesh, MGNEREGS was

being offered even for those households who had not demanded MGNREGS

employment. Karnataka had to strive to accommodate all the households demanding

employment. Despite the Central Government earmarking Rs. 40,100 crores in its

2010-11 annual budget for MGNREGA1 and a high unemployment rate of 8.3 per

cent2, only 6 per cent of the total households demanding employment completed 100

days of work, in both the drought prone states. In Andhra Pradesh, job provision for

100 days or beyond was marginally higher at 12 per cent. Number of person days of

employment provided per household was around 50 days, half of the guaranteed

number of days of employment, in all the three states. Since more than 90 per cent of

the households demanding employment were accommodated, a low percentage of

households completing 100 days of work indicate that rural households were getting

gainful employment outside MGNREGS. Thus, provision of 100 days of employment

1 http://indiabudget.nic.in, 10/08/2011 2 http://planningcommission.nic.in 10/08/2011

http://planningcommission.nic.in/

238

per household per annum’ need not be treated as a compelling target to be achieved,

since MGNREGS is essentially demand driven (Table 7.33).

Table -7.33: Employment Sought and Offered by MGNREGS in Sample

Drought Prone and Irrigated States of India, 2010-11

Sl.

No. Particulars Karnataka Rajasthan

Andhra

Pradesh

1 Households Registered under MGNREGS

for employment (millions) 5.3 9.9 11.7

2 Proportion of Households seeking (or

demanding) MGNREGS employment 45.6 54.7 47.7

3 Proportion of Households offered

employment under MGNREGS 92.2 97.3 107.0

4 Employment provided in No. of person

days per household 49 47 49

5 Proportion of Households availing 100

days of MGNREGS work 5.9 5.6 12.5

Source: http://nrega.nic.in/MISreport.htm (26/27-07-2011 & 02-08-2011)

7.13(ii): BPL Families and MGNREGS

A comparison of proportion of households under BPL in the State, with the

proportion of BPL families availing MGNREGS employment indicated that, the two

drought prone states of Karnataka and Rajasthan had respectively 17.4 and 13.7 per

cent of the families as BPL. However, in Karnataka 21.2 per cent of total families

registered in MGNREGS belonged to BPL category. Thus, Karnataka state had

benefitted BPL more than any other state. In Rajasthan, which is more drought prone

than Karnataka, only 6.5 per cent of the families registered under MGNREGS

belonged to BPL category. In Andhra Pradesh, being a better endowed irrigated state,

virtually no BPL family registered and/or availed the MGNREGA benefit, due to

prevalence of higher wages in agriculture and non agriculture sectors. It is in order to

note that MGNREGA does not discriminate between BPL and APL families and

hence the program can be availed by any rural person3. (Table7.34).

3 (http://planningcommission.nic.in/plans/stateplan/sdr_orissa/sdr_orich8.pdf)

http://nrega.nic.in/MISreport.htm

http://planningcommission.nic.in/plans/stateplan/sdr_orissa/sdr_orich8.pdf

239

Table -7.34: BPL Families Employed Under MGNREGS in 2010-11

Sl.

No. Particulars

Karnatak

a

Rajastha

n

Andhra

Pradesh

1 No. of BPL Families Registered in

MGNREGS (in millions) 1.1 0.7 0.0

2 Proportion of BPL Families registered

out of the total families registered in

MGNREGS

21.2 6.5 0.0

3 Proportion of BPL families in the State 17.4 13.7 11.1

Source:http://nrega.nic.in/MISreport.htm (26/27-07-2011)

7.13(iii): Age Cohort in MGNREGS

The age cohort analysis of those registered in MGNREGS indicated that about

60 per cent of the persons employed under MGNREGS were below 40 years of age

and a modest 4 to 6 per cent of the workers were above the age of 60 years. This is a

pointer to the fact that MGNREGS employed able bodied persons more than the aged

persons (Table 7.35).

Table-7.35: Age-wise Details of Employed Persons Under MGNREGS in 2010-11

Source: http://nrega.nic.in/MISreport.htm (26/27-07-2011)

7.13(iv): Season-wise Employment in MGNREGS

About one-third of the annual demand for MGNREGS work was during Kharif

in Andhra Pradesh and Rajasthan. In Karnataka and AP, around 60 per cent of the

demand for MGNREGS work was during summer months, while in Rajasthan around

50 per cent of the demand was during summer. Especially in Karnataka, annual

demand for MGNREGS during Kharif, the peak agricultural season of the state, was

only 9 per cent, followed by 29 per cent during Rabi season and a maximum of 62 per

cent during summer season which is a gainful employment during the off season.

(percentage)

Sl.

No. Age Group Karnataka Rajasthan Andhra Pradesh

1 Below 40 years 61.2 61.9 60.6

2 40-60 years 35.6 32.3 35.7

3 Above 60 years 3.2 5.8 3.7

4 Total 100.0 100.0 100.0

5 Total No. of employed persons

(in million)

6.1

7.3

11.2

240

Thus, this macro level data on MGNREGS season-wise employment does not support

the hypothesis that MGNREGA weans away labour force from agriculture activities

and creates labour shortage (Table 7.36).

Table-7.36: Season-wise Work Demand Pattern Under MGNREGS in 2010-2011

Sl.

No. Season

Proportion of Persons Employed in

MGNREGS as Per cent of Annual Demand

Karnataka Rajasthan Andhra

Pradesh

1 Kharif (June - September) 9.1 37.6 34.5

2 Rabi (October - January) 28.8 14.1 0.0

3 Summer (February - May) 62.1 48.3 65.5

Total 100.0 100.0 100.0

4 Total annual demand for

Employment (in million

persons) 11.1

20.0 20.8 Source: http://nrega.nic.in/MISreport.htm(26/27072011)

7.13(v):: Duration-wise Employment in MGNREGS

Majority of the households in Karnataka and Rajasthan (66 per cent each) and

Andhra Pradesh (70 per cent) were provided less than 60 days of employment by the

MGNREGS (Table 7.37). Only 6 per cent of the households both in Karnataka and

Rajasthan and 12 per cent of the households in Andhra Pradesh completed 100 days

of employment. As around 95 per cent of the households demanding MGNREGS

work were provided employment (Table 7.33) and more than half of the annual

demand for work was during summer in all the three states (Table 7.36), MGNREGS

offered supplementary employment during the off season and obviously did not

compete with the labor demand for local agricultural operations .

Table -7.37: Duration Wise Employment Provided Under MGNREGS in 2010-2011

Sl.

No.

No. of days of work attended to

by families per year

Proportion of Households attending

to work (per cent)

Karnataka Rajasthan Andhra

Pradesh

1 01 to 30 days 36.8 33.5 43.6

2 31 to 60 days 29.5 32.6 26.6

3 61 to 99 days 27.8 28.2 17.3

4 100 & more no. of days 5.9 5.7 12.5

5 Total No. of days 100.0 100.0 100.0

6 Total No. of Households attending MGNREGS work 2.2 5.2 6.0

Source: http://nrega.nic.in/MISreport.htm (26/27-07-2011)

241

7.13(vi): Economic Scarcity of Labour and MGNREGS

A majority of the rural households possess BPL cards. The value of food grains,

on an average, received by a BPL family (Channaveer, 2011), was Rs.3,114 per

annum. For BPL families due to populist policies of the ruling Government, rice and

wheat are supplied at Rs. 1 to Rs. 3 per kg and with a provision of around 20 Kgs of

food grains per month, many wo/men, tend to be complacent since, their food

requirements of the entire month is met with one or two days wage income. In

addition, in rural areas, higher wages offered in non agriculture sector, led to the

backward bending supply of labor (Fig. 7.(iii)) at two levels. In the first level, the

backward bending supply was due to provision of subsidized food grains for BPL

families. This provision of food is independent of inflation and provides the barest

minimum food, offering food security to the rural family. In the second level, the

backward bending supply of labor operated and around 60 person days of labor in the

family were seldom interested to offer their labor. This is the reason also that in

MGNREGS, only 6 to 12 per cent of the households offered 100 days of their labour,

while 65 to 70 per cent of the households offered around 60 days of their labor per

year. A person who offers 60 days of labor, if s/he stops working beyond this

threshold, there are no compelling reasons to disbelieve that the person follows the

backward bending supply of labor. Another argument is that the village panchayaths

were not attracting MGNREGS employables. However, if the village panchayath had

provided opportunities per family with 60 days of work, then the village panchayath

was also capable of providing opportunities per family with 100 days of work.

If rural area people were food secure, their first and foremost need was met

and had every reason to avail leisure. With increasing farm mechanization and

availability of custom hire services, agriculture had become now more mechanized

than earlier and hence food production had been sustained at the national level.

Figure-7.(iii): Backward Bending Supply of Labour

Wage Rate

Labour Days Offered for Employment

242

7.13(vii): Reservation Wage Argument

The reservation wage counts the most in attracting the rural labor for work.

Reservation wage is the threshold wage which makes a person to offer his/her labor.

Suppose that the MGNREGA wage rate is Rs.100 per person per day. The reason why

rural people are not offering their labor is the level of their reservation wage (RW).

Taking the case of Karnataka, the first level is RW1 where Rs. 150 is offered in rural

areas and a few would turn up. The rate of increase in farm wage is also modest. The

second level is RW2, where Rs. 300 is offered as nonfarm wage and rural people get

attracted to the higher reservation wage. The rate of increase in nonfarm wage is also

substantial compared with farm wage. Thus, the reason for sub-optimal utilization of

MGNREGS is the provision of food articles in the public distribution system which

renders food availability and security every month with one or two person days of

labor. One of the reasons for suboptimal supply of labor for farm operations is the

provision of relatively drudgery free labor and wage in MGNREGS. The reason for

seasonal migration and increase of labor employment in urban and peri urban areas is

due to the substantially higher reservation wage of 200 per cent in nonfarm wage over

MGNREGA wage and 100 per cent increase in nonfarm wage over farm wage. The

hike in nonfarm wage has attracted substantial youth from rural areas towards civil

works in peri urban and urban areas which pays these workers for a longer time

horizon (Figure 7.iv). Thus, there is economic scarcity of labor as the reservation

wages as well as the rate of increase in wage with increase in employment increase at

different exponential rates.

Figure-7.(iv): Hike in Non-farm Wage Level in Rural Areas

RW2 = Rs. 300

Farm wage rate

MGNREGA

wage rate

RW1 = Rs. 150

Rs.100

ega.nc.n/

MISrepo

rt.htm

(26/27-

07-2011)

http://w

ww.goo

gle.co.in

/search?

Nonfarm wage rate

Labour Days Offered for Employment

Wage rate

http://www.google.co.in/search?client=firefox-a&rls=org.mozilla%3Aen-US










243

7.13(viii): Conclusions and Implications

Using the macro level data on MGNREGS and the economic scarcity of labor

arguments, this exercise amply proves that MGNREGS is complementing the rural

wage incomes of the needy at no cost to agriculture and other sectors in rural areas.

The economic scarcity of labor in agriculture is largely due to the higher rate of wage

hike in nonfarm wages offered especially by the mining and construction sectors in

Karnataka and similar sectors in other States. The wage differential between rainfed

and irrigated agriculture is relatively smaller compared with the wage differential

between farm and nonfarm wages. Hence even in irrigation dominated state of

Andhra Pradesh, the economic scarcity of labor is not due to MGNREGA wages, but

due to hike in nonfarm wages. The provision of food security through public

distribution system as a populist measure reinforces the backward bending supply of

labor already manifested due to the hike in nonfarm wages.

The rural areas are almost becoming ‘old age homes’ due to hike in nonfarm

wages attracting rural people for employment. Parallelly agriculture needs to be

supported by subsidies for farm machinery in order to assist farmers who are facing

the economic scarcity of labor. These policies are crucial for sustaining the food

security as well as livelihood security of agriculture sector in the drought prone states

as well as in irrigation dominated state.

7.14: Impact of MGNREGA on Individual Farmers and the Farm Economy:

A Few Case Studies

MGNREGS activities can be taken up as community works or on individual

farms belonging to SC / ST farmers, where labour component of the expenditure

would be borne by village panchayath under the programme. Impact of such

activities is presented below as case studies. The first two case studies represent the

works executed on individual farms and the subsequent two represent community

works. The results reiterate that natural resource conservation received priority in

selection and execution of MGNREGP activities both in Economically Forward and

Economically Backward regions of the state.

244

Case Study 1:

Type of work executed: Construction of farm pond, Land development and

Horticulture gardening in individual farm

Investment under MGNREGS: Rs. 1.5 Lakhs

Name of the Farmer: Sri Srinivas S/O Sri H.V. Thimmaiah

Farm Area: 30 Acres

Village: Hariyabbe in Hiriyur Taluk of Chitradurga District

Sri Srinivas, a young farmer from Hariyabbe owns a farm of 30 acres area.

Prior to MGNREGS assistance ground nut was the only crop he was cultivating on his

farm in about 20 acres area, with an average yield of 2 quintals per acre depending

upon the rainfall received. He could raise only one crop a year as his farm was purely

rainfed. Covered with shrubby jungle the remaining 10 acres of land holding had to be

left fallow. Perpetual low productivity-low production-low income-low investment

and resultant low productivity – had driven Mr. Srinivas into frustration. He was on

the verge of quitting agriculture and seeking livelihood elsewhere.

Under the individual beneficiary category of the programme Sri Srinvas

sought MGNREGS intervention for land development. The Village Panchayath

through Gram Sabha and Taluka as well as Zilla Panchayaths acceded to his request

and sanctioned Rs. 1.5 lakhs for the proposed activities on his farm. The jungle was

cleared, a farm pond was constructed and a bore well was drilled which yielded 3

inches of water (3500 gallons/hour). Establishment of Pomegranate garden in 5 acres

area was initiated and laying of drip irrigation unit was taken up in the first year. A

plan to plant Cocunut seedlings in an area of 3 acres and sweet lime seedlings in 10

acres area was executed in the second year. All the expenditure exceeding Rs. 1.5

lakhs sanctioned under MGNREGS was met by the farmer. Apart from planting

perennial crops, Sri Srinivas changed the cropping pattern from mono crop of rainfed

groundnut to sunflower in 3 acres, onion in 2 acres, ragi in 1.5 acres, and irrigated

groundnut in 1.5 acres. This enabled the farmer to achieve increased productivity of

his farm as shown in the Table 7.38.

245

Table -7.38: Cropping Pattern and Yield Details of Sri Srinivas’ Farm

Before and After MGNREGS Intervention

Sl.

No. Crops

Before MGNREGS After MGNREGS

Acreage Yield in

Qtls. Acreage

Yield in

Qtls.

1 Groundnut (rainfed) 20 2

2 Groundnut (irrigated) - - 1.5 8

3 Ragi (irrigated) - - 1.5 16

4 Onion - - 2.0 20

5 Sunflower - - 3.0 5

6 Pomegranate - - 5.0 Newly

planted

7 Sweet lime - - 10.0 Newly

planted

8 Coconut - - 3.0 Newly

planted

9 Fallow 10.0 - 4.0* - *4 acres of land is interspersed with rocks and tree stumps. To clear it JCB machines have to be used.

Figures presented in the above table show that more land was brought under

cultivation, with assured irrigation better remunerative crops could be introduced. It can

inferred from the table that, on the positive side MGNREGS helped the farmer in better

utilization of the resources and increasing productivity as well as profitability of the

farm. The farmer was enthused to continue farming.

246

Photograph-7.1(a): Sri Srinivas’ Farm in Hariyabbe Village with

MGNREGS Intervention

247

Case study 2:

Type of work executed: Bunding and construction of Check dam

Investment under MGNREGS: Rs. 55 thousands

Name of the Farmer: Sri Patresha Gowda

Farm Area: 25 Acres

Village: Mediginkere, Guttidurga Gram Panchayath, Jagalur Taluk, Davanagere

District

The farm of Sri Patresha Gowda had plots which were degraded and had

been left fallow. With MGNREGS intervention a checkdam and bunds were

constructed. The farmer has incurred an expenditure of Rs. 55,000 towards raising the

nursery. Mainly runoff water was impounded and ground water recharge was

improved. As perceived by the farmer borewell yield increased from 1000 gallons per

hour to 2000 gallons per hour. More area was brought under protective irrigation (10

acres to 20 acres) which improved maize productivity by about 5 quintals per acre and

coconut plantation also started yielding 100 more nuts per tree (Table 7.34). The

additional returns farmer realized far exceeded the annual amortized cost of capital

investment on check dam and bunds construction (Rs. 14,540 at the rate of 2 per cent

opportunity cost).

Another additional benefit Sri Pathresh Gowda derived was that, after the

construction of check dam and bunds, he raised a nursery of Jatropha seedlings in

poly bags in five acres area. It generated 750 man days of employment per year. He

would realize higher returns by selling nursery seedlings in the subsequent years.

Looking in to the results of these two case studies, it can be said that

MGNREGS activity on individual farms proved to be a win-win situation for all the

stakeholders, as it addresses the issues of labour scarcity for the farmers, livelihood

security for the workers and efficient functioning of the programme for the

implementers.

.

248

Table-7.39: Improvement in Crop Yield, Returns and Gains due to

MGNREGS Intervention in Sri Patresha Gowda’s Farm

Crops

Total

groundwater

irrigated

area before

MGNREGS

(Acres)

Total

groundwater

irrigated

area after

MGNREGS

(Acres)

Additional

area under

irrigation

(Acres)

Additional

yield

Additional gain

due to

MGNREGS

Maize 10 20 10

5 quintals

per acre 3000 per acre

Coconut 5 5 -

100 nuts per

tree 22500

Photograph-7.1 (b): Sri Pathresha Gowda’s Farm in Mediginkere Village

with MGNREGS Intervention

249

Case Study 3:

Type of work executed: Desilting of Haluru tank and repair of its feeder channels

Investment under MGNREGS: Rs. 6.5 Lakhs

Village: : Kodakani village, Soraba Taluk, Shivamogga District

Increase in area under cultivation: 100 acres

Increase in paddy yield: 2 quintals per acre

Bore wells recharged: 42

Soraba Taluk in Shivamogga district in STZ is geographically flattest area in

Asia and boasts of about 1,600 tanks. But, it is unfortunate that due to negligence on

the part of all stakeholders, those tanks had been subject to heavy siltation and

resultant reduction in their live storage capacity. Feeder channels of most of the tanks

had been clogged and hence water inflow in to the tanks had gradually reduced.

Naturally the tank command area, cropping intensity, productivity and employment

opportunities all had been adversely affected. It was a paradox that the surrounding

areas of such tanks were flooded during heavy downpour causing considerable

damage. The agricultural workers migrated to coffee growing areas in the neighboring

districts in search of employment. Thus both the farmers and the workers underwent

misery.

Haluru tank had seen good days with a command area of over 300 acres. But of

late heavy siltation had reduced its water holding capacity and the tank could not

support more than one crop per annum. Under MGNREGS a budget of Rs.6.5 lakhs

was allocated to rejuvenate the tank by desilting the tank and repairing its feeder

channels.

This community work became highly successful because of the active support

and participation by farmers as well as landless labourers. Rejuvenation of tank taken

up as a village mass movement resulted in second crop of paddy being cultivated in

100 acres, increase in paddy productivity by 2 quintals per acre due to availability of

irrigation during all the critical stages of crop growth and recharging of 42 bore wells

in the tank command area. Women folk who often face the severity of water shortage

outnumbered the male workers by 2.5 times in execution of the work. This also

contributed in the right direction to women empowerment.

250

Photograph -7.1(c).:MGNREGS Activity of Haluru Tank Rejuvenation in Kodakini Village

Case Study 4:

Type of work executed: Disiltation of tank and strengthening of tank bund

Investment under MGNREGS: Rs.10.3 lakhs

Village: : Nagenahalli in Merkuli Gram Panchayat, Hassan District

Employment generated through the work: 7012 person days

Increase in area under irrigation: 80 acres

Increase in returns from paddy: Rs. 20 lakhs in one year

Bore wells recharged: 5

A village tank in Nagenahalli, which had a live storage area of 23 acres

earlier, was heavily silted and had a dilapidated tank bund. Only one paddy crop a

year could be cultivated with the water available from the tank.

Gram Sabha of Nagenahalli decided to rejuvenate that tank under

MGNREGS with a budget allocation of Rs. 10.3 lakhs and the work was completed in

about 11 months period by generating 7012 person days of employment. The activity

made it possible to cultivate second crop of paddy in 80 acres benefiting 146

households in the village and generating an additional income of Rs. 20 lakhs per

annum. The community work undertaken not only recharged 5 bore wells, but also

ensured drinking water for animals in all the three seasons. These benefits accrued to

Nagenahalli economy are presented in Table 7.40.

251

Table-7.40: Benefits Accrued to Nagenahalli Economy through MGNREGS Activity

Sl.

No. Particulars of benefits accrued

Before

MGNREGS

work

After

MGNREGS

work

1 Area irrigated by the tank (Acres) 80 160 (in two seasons)

2 Cropping intensity (per cent) 100 200

3 Paddy production in a year in the tank command area

(quintals)

2000 4000

4 Additional returns (in lakh Rupees) - 20

5 Number of families benefited by additional irrigation

water availability

- 146

6 Employment generated by MGNREGS activity

(Person days)

- 7102

7 Number of bore wells recharged - 5

8 Water availability for animals - In all the seasons

Photograph-7.1(d):MGNREGS Activity of Village Tank Rejuvenation in Nagenahalli

Thus, community works taken up under MGNREGS in these two villages

accrued benefits to the community both in terms of improved natural resource

management and enhanced returns. Properly planned, efficiently executed,

transparently monitored MGNRGS activities have the potential to add to the welfare

of rural communities.

Results presented in Tables 7.19, 7.20, 7.38, 7.39, 7.40 and case study 3

prove our sixth hypothesis that MGNRES has improved natural resource base in rural

areas and has increased cropping intensity and crop productivity.

252

7.15: Constraints Identified in Implementation of MGNREGS:

A. Constraints from Workers’ Perspective

Wage rate under MGNREGS (Rs.82 per day per person) was lower than the

market wage rate (Rs. 100 to 150 per day per person). This wage differential

was the main reason for low demand for employment provided under

MGNREGS in both the Economically Forward Districts of Hassan and

Shivamogga and in Davanagere district, an Economically Backward District.

Workers migrating to coffee estates in Sakaleshpura region received higher

wages with fringe benefits as well as advance payment. This prompted the

workers to demand advance payment under MGNREGS in Hassan and

Davanagere districts.

In many villages, as in the case of Shivamogga district, male workers

preferred contract work to wage payment based on number of days of work.

This system enabled the workers to earn more in lesser time period through

higher efficiency and better marginal labour productivity. However, the

primary objective MGNREGA is to provide supplementary employment to

rural workers and not to serve as their main source of employment and

income.

Delay in wage Payment to the workers under MGNREGS from 20 days to

three months (20 days after the completion of work in Arasikere Taluk to

more than 3 months in Hiriyur taluk) forced the workers to shy away from

MGNREGS work in the subsequent years (Hassan and Chitradurga districts).

Some workers reported engagement of contractors, use of machinery for the

execution of works and related irregularities in payment of wages in

Chitradurga district.

It was observed in all the districts that the sense of belongingness was weak

among the workers while undertaking community works which affected the

quality of work.

Workers were in need of and demanded daily payment of wages (Shivamogga

and Chitradurga districts).

Contrary to the spirit of MGNREGA in some instances in the Economically

Backward Districts of Davanagere and Chitradurga, the Gram Panchayath

officials considered the request for employment not when the workers were in

need of work, but when the Officials were under pressure to achieve the

targets. The workers were not making the requests in writing which would

253

have forced the officials to either provide employment in 15 days from the

date of application or pay them unemployment allowance. It was felt that there

is a need to create awareness on the part of workers as well as Gram

Panchayath officials regarding the aims, objectives, duties and responsibilities

under MGNREGS.

Demand for MGNREGS works during the hot summer months was low as it

involved physically exerting and tiresome manual digging works. The

Panchayath officials also found it difficult to maintain specific quantum of

work prescribed under MGNREGA to be eligible for one day wage, especially

during summer months, as many of the persons who offered to work under the

programme were women and aged (Hassan and Davanagere districts).

Ignorance among the workers regarding provisions and procedures of the Act,

has led to deprivation and exploitation, such as (a) lack of worksite facilities

like first-aid box and shade in some places of work, (b) employment and wage

details not properly entered in the Job cards, (c) job cards in the custody of

Panchayath officials in many villages, instead of in possession of workers, (d)

delay up to 3 months in payment of wages in some taluks and (e) nonpayment

of unemployment allowance in any of the districts despite the delays in

providing jobs beyond 15 days after seeking employment (Hassan,

Shivamogga and Chitradurga districts).

Neighbours and friends ridiculed men workers for working under MGNREGA

for a wage rate which is equivalent to that of women workers (Bhadravati

taluk of Shivamogga district).

Higher wage rates offered and regular demand for labour in areas with good

irrigation facilities and plantation crops deterred workers from seeking

employment under MGNREGAS (Hassan and Shivamogga districts).

The workers were not yet issued Bank/Post Office pass books in a couple of

villages (of Arasikere Taluk, Hassan district).

These constraints were not specific to implementation of poverty alleviation

programmes in Karnataka state alone, since similar survey results were reported by

many researchers in different parts of the country. Delay in wage payment, ranging

from a few days to more than 3 months, was reported in Kerala, Jharkhand, Odisha,

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Maharashtra states, use of contractors and machineries was observed in Jharkhand,

Kerala, Maharashtra, Chhattisgarh states, poor maintenance of records was revealed

in Jharkhand, Odisha, Andhra Pradesh, Uttar Pradesh states and inadequate worksite

facilities was found in Jharkhand, Rajasthan and Tamil Nadu states. These anomalies

have been defeating the basic purpose of launching such an ambitious programme.

B. Constraints from Administrators’ Perspective

Efficient execution of MGNREGS works needs a clear understanding of all

the procedures and provisions of MGNREGA. The Gram Panchayath

secretaries needed to be educated in this regard to make their discharging of

duty more effective and bring in accountability both in letter and spirit. As felt

by some of the secretaries, they were handling funds of various schemes and

projects, beyond their capacity.

The main reason for the delay in wage payment to workers, as expressed by

the Panchayath personnel, was the delay in writing the MB book by the

concerned Engineers from taluk offices (Hassan and Chitradurga districts).

Both first and second constraints could be addressed by having separate

administrative machinery for implementation of MGNREGS.

Zilla Panchayath had been taking more than 3 months to release funds for

MGNREGS (Chitradurga district).

Placing all the computers meant for Gram Panchayaths in Taluk Offices due to

frequent failure of electricity supply as well as poor internet access, had added

to the burden of Panchayath personnel who had to travel frequently to Taluk

Office to make MGNREGS related entries in the computers. As a result MIS

was not accessible to Gram Panchayaths in most of the taluks (Chitradurga

district)

With regards to job cards issued to workers without participants’ photos and

incomplete entries in job cards, the Gram Panchayath Secretaries complained

of insufficient budget allocation for taking photographs and affixing in job

cards of workers (Hassan, Chitradurga and Davanagere districts).

The MGNREGS works lacked convergence with works of other

developmental departments and suffered from inadequate technical support

from concerned departments. For instance, a visit to the worksite of check dam

construction in Srinivasapura in Mavinakere Grama Panchayath in Bhadravati

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Taluk, Shivamogga District revealed this fact. In this village the check dam

was constructed near a bridge and the space between the check dam and the

bridge was too narrow for free flow of water during heavy rains. Hence both

the structures were prone to damage by heavy overflow of water from the

check dam. The Gram Panchayath personnel bemoaned that lack of technical

support and cooperation from watershed experts led to poor planning and

execution of the check dam work.

Shortage of Staff to maintain MGNREGS records, as expressed by panchayath

secretaries (All districts).

MGNREGS is essentially a demand driven programme. But, failure to

understand and appreciate this aspect on the part of all stakeholders led to, in

some cases, middlemen acting as contractors, bringing the list of workers to

gram panchayaths demanding employment for executing their work.

The researchers came across a few instances of use of mechanical devices like

JCB and tractor in executing MGNREGS works (Chitradurga district).

The persons in Gram Panchayaths in charge of execution of MGNREGS

works have to make entries in NMR register, details of men and women

workers who have participated in the programme. But, the registers were

incomplete (Chitradurga district).

Because of poor maintenance the assets created under MGNREGS in the

previous years were in bad shape in many a Gram Panchayaths. For instance,

drainages constructed under MGNREGS in Ranganathapura of Hiriyur Taluk

(Chitradurga district) were filled either with weeds or stones.

Delays in check clearance by banks were causing delay in payment of wages

to MGNREGS workers. Supervisory staff was forced to cut down the wages of

workers because of the poor quality of works turned out under the programme.

But, the workers were demanding full wage payment. Such altercations were

creating tension between workers and the administrators in executing the work

(Davanagere district).

Assessment of works of those workers who got engaged in supplying water to

other workers and looking after small children accompanying their mothers

when large number of workers participate in MGNREGS works caused

problem (Davanagere district).

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The Gram Panchayaths had inadequate UPS and internet facilities and hence

MIS was not updated in time. This had added to delay in payment to workers

(Davanagere district).

The Panchayath officials complained that more than 20 ledgers had to be

maintained, each demanding multiple entries, which was time consuming (all

districts). This resulted in poor maintenance of MGNREGS records. It is

necessary to rationalize maintenance of accounts and avoid duplication of

entries.

Because of inadequate technical support, restriction on material cost and poor

quality of labor participating in MGNREGS, quality of assets created ranged

from average to poor (all districts).

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Photograph- 7.2 (a): Participation of Women Workers in Large Number in

MGNREGS in the Sample Districts

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Photograph- 7.2 (b): Creating Awareness about MGNREGA through Wall

Writing in the Sample Districts

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Photograph- 7.2 (c): Job Cards and Pass Books Issued to Participants of

MGNREGS in Sample Districts

260

Photograph- 7.2 (d): Community Works taken up under MGNREGS for Natural

Resource Management in Sample Districts

Photograph- 7.2 (e): MGNREGS Works executed in Individual Farms

in Sample Districts

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Photograph- 7.2 (f): The Researcher Collecting Information from the

MGNREGS Workers in a Sample Village

Photograph- 7.2 (g): Modest Worksite Facilities Provided Under MGNREGS in

Sample Districts: 2008-09

Documents

CHAPTER-VII MGNREGA AND ITS IMPACT ON RURAL ...shodhganga.inflibnet.ac.in/bitstream/10603/90418/20/20...in progress. It is reflected in the performance index of works completed Which