In the last three years since the launch of the NREGA, the average minimum wage rate has jumped 30 per cent to Rs 84 in 2008-09. When the programme was launched, it stood at Rs 65. In 2007-08, it was Rs 10 higher and the next year, went up further by Rs 9 a day. The wage rate varies from state to state ranging from as low as Rs 60 to as much as Rs 130 a day.

Based on the experiences of the last three years, the ministry of rural development has now constituted a special group to consider an increase in the number of days of jobs guaranteed under the flagship programme. “However, the higher number of days will have to be fit in with the general equilibrium model on which the scheme operates,” Sharma said.

According to government figures, 45 million households took advantage of the NREGA in 2008-09. The average number of days of employment was 48. There was sharp regional variation though with Rajasthan at 76 days and Kerala at 22. So, the government may consider an increase based on the appetite of individual states.

Sharma said labour migration has dropped from certain economically laggard states to the more prosperous ones because of NREGA. This would mean more mechanisation in prosperous states. It needs to be seen how this balances out in the context of employment for below poverty line people across the country, she said.

A recent study by think tank NCAER in association with Public Interest Foundation, a non-profit organisation on evaluating the performance of NREGA had recommended a reduction in wage rate under the scheme by up to a fifth to ensure effective targeting. The PIF also said the number of guaranteed days of employment should be increased to 120 from the present 100.

... contd.