NREGS workdays might be increased to 150 to fight drought

Interest subvention, crop insurance on the cards

The finance ministry is working on a plan to increase the number of workdays in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) from 100 a year per person per household to 150 in areas receiving low monsoon rain.

The government might also provide interest subvention and crop insurance in drought-affected regions through the e-Financial Management System (eFMS).

“Since the eFMS contains the data on workers under the MGNREGS, it will be used to provide targeted relief to people whose crops and livelihood suffer,” an official said.

RURAL FOCUS

• Measures likely to be implemented only in drought-hit areas
   
• Though officially govt has downplayed drought fears, it is ready for worst-case scenario
   
• IMD had forecast monsoon at 88% of long-term average
   
• Funds for initiatives to come from extra MNREGS allocation of Rs 5,000 cr
   
• If necessary, govt might also dip into disaster relief funds

These initiatives were being planned only for areas that could face drought conditions during this monsoon season, he added.

The government was prepared to use disaster response funds to combat a drought, the official said.

The balance in the Prime Minister’s National Relief Fund was Rs 2,338.78 crore on March 31, and assistance to states from the National Calamity Contingency Fund and National Disaster Response Fund has been budgeted at Rs 5,690 crore for 2015-16.

Last week, India Meteorological Department (IMD) revised its forecast for 2015 monsoon rainfall from less than normal to deficient as the weather phenomenon El Niño gained strength. Monsoon rainfall is forecast at 88 per cent of the long-period average ,against an earlier estimate of 93 per cent.

“Distribution and timing of rainfall are as significant as the volume. Predictions appear to be indicating a normal monsoon in south, central and north-east India. It is only in north-west India that rainfall is expected to be erratic,” Finance Minister Arun Jaitley had said later at a press conference.

He had added Rs 5,000 crore,  promised over and above the budget estimate of Rs 34,699 crore for the MGNREGS would be provided in case of poor rainfall. Officials said this amount was likely to be used for emergency initiatives.