Rajasthan launches Indira Gandhi Urban Employment Guarantee Scheme

The Rajasthan government has launched an employment guarantee scheme for people living in cities for 100 days. The scheme is seen based on similar lines as MGNERGA. However, both schemes have several differences.

About Indira Gandhi Urban Employment Guarantee Scheme

• Objective: It aims to provide economic support to the poor and needy families living in the cities through work to be provided on demand for 100 days in a year.
• Eligibility:
  • Those in the age group of 18 to 60 years residing within the limits of urban local bodies are eligible.
  • There is no income limit, though the poor and destitute people, especially those who lost their livelihood during the pandemic, will be given preference. 
• The budget allocated: A budgetary provision of ?800 crores was announced by Chief Minister.
• Agencies involved: At least 50 persons in each ward of urban local bodies will be given employment and the work permitted under the scheme will be approved and executed through committees at the State, district, and local body levels. 
• Implemented by: The State government’s Department of Local Bodies will be responsible for the scheme’s implementation.

How this scheme is different from MGNERGA?

• Urban Vs. Rural Beneficiaries:
  • Announcing the employment scheme for urban areas on the lines of Mahatma Gandhi NREGA for rural areas in his budget speech
  • While MGNREGA assists people in rural areas, there is no such scheme for street vendors, as well as those working at dhabas and restaurants in urban areas.
• Type of work: The work allocated under the scheme will be based on the following considerations:
  • Environment Conservation, water conservation, Cleanliness and Sanitation-Related Works, etc., which are not included under MGNERAGA.
• Maintain Records:
  • To register for it, a Janaadhar card or its registration slip is required. Registrations can be done at e-Mitra centres.
  • Unlike MGNERAGA, where informal registration goes on which leads to misconduct and exploitation of workers at the site.
• Salary and pay to labours:
  • The ratio of cost of material to payment for labour work of “general nature” will be in the ratio of 25:75, while for special works, it will be 75:25.

Why social security is needed in urban areas?

• Major Contributor to Economy:Urban areas are an integral part of the development process of the country. As in most countries, India's urban areas make a major contribution to the country's economy.

• Indian cities contribute to about two-third of the economic output, host a growing share of the population, and are the main recipients of FDI and the originators of innovation and technology.
• A magnet for Businesses:The cities are a collective magnet for a great diversity of economic activities.
• The cities attract business and people, as a result of scale and agglomeration advantages (supply of educational facilities, presence of suppliers, etc.).
• Hotbed of Social Capital: The cities are a hotbed of social capital or a ‘melting pot’ of culturally or socially diversified groups.
• Cities are Power Centres: The city is an ever-expanding power-block, which reinforces its position to the detriment of towns and villages in its hinterland.