Jharkhand seeks Rs 900 crore MGNREGA dues, higher wages

The Jharkhand government urged the Centre to release around Rs 900 crore pending under the material component of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and raise the daily wage rate for workers to Rs 433, flagging the impact of delayed payments and rising rural distress.

Union Rural Development Minister Shivraj Singh Chouhan responded positively to several of Jharkhand’s proposals during the two-day National Rural Development Conference in New Delhi, where Rural Development and Panchayati Raj Minister Dipika Pandey Singh also sought an increase in financial assistance under the Pradhan Mantri Awas Yojana (PMAY) to Rs 2 lakh per house and raised concerns over funding for expanding MGNREGA employment to 125 days.

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Pandey said around Rs 900 crore under the material component of MGNREGA was pending with the Centre, affecting the execution of rural development projects across the state. She said timely release of the funds was essential to sustain employment generation and infrastructure creation in villages.

The minister also sought an upward revision of the MGNREGA wage rate to Rs 433 a day, citing inflation and the rising cost of living. At present, workers in Jharkhand receive Rs 282 per day, including Rs 255 from the Centre and Rs 27 contributed by the state government.

Questioning the Centre’s proposal to extend guaranteed employment from 100 to 125 days, Pandey asked whether adequate budgetary provisions had been made to support the enhanced work guarantee. She said the revised Centre-state funding pattern would impose an additional financial burden on states such as Jharkhand.

The minister also proposed increasing PMAY assistance to Rs 2 lakh and suggested using prefabricated housing structures to speed up construction and improve implementation. She further sought approval to allow up to 90 days of MGNREGA wages for beneficiaries constructing houses under the state’s Abua Awas Yojana.

Highlighting rural livelihoods, Pandey urged the Centre to promote rural industries in Jharkhand to strengthen self-help groups (SHGs), noting that nearly 3.2 million women are associated with SHGs in the state. She said improved market access for SHG products could significantly boost rural incomes.

She also urged the Centre to introduce a new rural development scheme named after Mahatma Gandhi, saying programmes bearing his name should continue to reflect his contribution to rural India.