In a significant move to provide relief to farmers, the central government has announced an increase in the subsidy amount for irrigation wells under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), popularly known as ‘Rohyo’ or ‘Rojgaar Hami Yojana’. The subsidy has been raised from Rs 4 lakh to Rs 5 lakh, offering much-needed financial support to farmers during the ongoing inflationary period.
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Wage of Rs. 297 per day
The decision to increase the subsidy is closely linked to the rising daily wage rates under MGNREGS. The daily wage under the scheme has now been set at Rs 297. This increase in wage rates has necessitated a corresponding adjustment in the subsidy amount to ensure that farmers can cover the costs associated with digging and constructing irrigation wells.
Impact of Increased Wage Rates The central government has calculated that with the new wage rate of Rs 297, the efficient cost of 40 percent of the wage rate will be approximately Rs 198. As a result, an amount of around Rs 500 per person per day can now be sanctioned for unskilled labourers and skilled labourers together. This adjustment has a direct impact on the overall cost of constructing irrigation wells, prompting the government to raise the subsidy limit.
Previously, the subsidy for irrigation wells under MGNREGS was Rs 3 lakh, which was increased to Rs 4 lakh in November 2022. The current increase to Rs 5 lakh, effective from April 1, 2024, reflects the government’s commitment to supporting farmers amid rising costs and ensuring that they have adequate financial resources to complete essential agricultural infrastructure projects.
Estimated Costs and Implementation
1.55 Lakh Wells in progress
Based on the current tariff list of the construction department and considering the increased wage rates, it is estimated that Rs 4.5 lakh will be required for 900 man-days of work, which is necessary for the construction of a well. Additionally, around Rs 50,000 is allocated for ‘upsaa’ (grouting) and other ancillary matters. This brings the total subsidy amount to Rs 5 lakh. The implementation of this increased subsidy is expected to have a significant impact on the completion rate of irrigation wells across the state. Between 2021-22 and June 2024, the state successfully completed the construction of 29,490 irrigation wells under MGNREGS. Currently, 1,55,164 irrigation wells are in progress, with administrative approvals being granted on a large scale to expedite their completion.
Boosting Agricultural Infrastructure
The government’s decision to increase the subsidy for irrigation wells is part of a broader effort to enhance agricultural infrastructure and support rural development. By providing financial assistance to farmers, the government aims to boost agricultural productivity and ensure water availability for crops, which is crucial for sustaining livelihoods in rural areas.
Standard Operating Procedures (SOPs) are being implemented to speed up the completion of irrigation wells under MGNREGS. The government is keen on increasing the number of households benefiting from these projects, thereby improving water security and promoting sustainable agriculture.
As the state continues to prioritize irrigation well projects, the increased subsidy is expected to play a crucial role in ensuring that farmers can undertake and complete these essential works without financial strain. This move underscores the government’s commitment to supporting rural communities and addressing the challenges posed by inflation and rising labour costs in the agricultural sector.
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