There is not a better weapon to kill enterprise than the National Rural Employment Guarantee Scheme. Workers are assured of wages for a major portion of the year for reduced hours of work. So it is natural for them to be complacent. Most of the work coming under NREGS is just to keep the scheme going and is not of much value if the output and productivity is measured by the conventional yardsticks.
Contrast this with the situation faced by farmland owners and MSMEs in rural and semi- urban areas. They are forced to scale down or abandon their activities since they do not get enough people willing to work. In such a scenario we may see many such would be entrepreneurs giving up their pursuits and settling for daily wages and subsidised foodgrains.
A win- win solution would be making NREGS a public private partnership model. In addition to projects funded by the exchequer, we should also include private enterprises under the scheme. For that the manpower requirements of both the public and private enterprise in an area is first calculated and then in case of private enterprises a portion of the manpower requirement is funded under the scheme; for example if a farmer or tiny unit requires 20 people to be employed, this can be notified under the scheme and wages of say 4 or 5 persons can be given from the NREGS fund and the rest directly by the entrepreneur.
This way, employment generation is ensured alongwith encouraging private enterprise and taxpayer money is utilised in a productive fashion.
Contrast this with the situation faced by farmland owners and MSMEs in rural and semi- urban areas. They are forced to scale down or abandon their activities since they do not get enough people willing to work. In such a scenario we may see many such would be entrepreneurs giving up their pursuits and settling for daily wages and subsidised foodgrains.
A win- win solution would be making NREGS a public private partnership model. In addition to projects funded by the exchequer, we should also include private enterprises under the scheme. For that the manpower requirements of both the public and private enterprise in an area is first calculated and then in case of private enterprises a portion of the manpower requirement is funded under the scheme; for example if a farmer or tiny unit requires 20 people to be employed, this can be notified under the scheme and wages of say 4 or 5 persons can be given from the NREGS fund and the rest directly by the entrepreneur.
This way, employment generation is ensured alongwith encouraging private enterprise and taxpayer money is utilised in a productive fashion.