Why in News?

• The Ministry of Rural Development (MoRD) has amended Schedule-I of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
• This is to ensure a minimum proportion of funds is allocated for water conservation and harvesting works across rural India.
• The amendment aims to address India’s deepening groundwater crisis and promote sustainable rural livelihoods.

What’s in Today’s Article?

• Background - Understanding Schedule-I of MGNREGA
• The Latest Amendment
• Likely Benefits of the Decision
• Significance for Rural India
• Way Forward
• Conclusion

Background - Understanding Schedule-I of MGNREGA:

• MGNREGA provision: Every state government shall introduce a scheme to provide at least 100 days of guaranteed employment in a financial year to every rural household, based on demand.
• Schedule-I: Lists permissible public works and defines the scheme’s minimum features.
• Amendment power: While changes to the Act need Parliament’s approval, the Centre can amend the Schedule via notification (issued by the Ministry of Rural Development [MoRD]) — done nearly 24 times since 2005.

The Latest Amendment:

• The amendment inserts a new proviso mandating minimum expenditure on water-related works at the block level, depending on groundwater status.
• Earlier, 60% of district-level works (in terms of cost) had to create productive assets directly linked to agriculture and allied activities through development of land, water and trees.
• Now, the focus has shifted from district-level to block-level implementation.
• Proportion of expenditure on water works: Categories as per -
  • For over-exploited rural blocks (groundwater extraction>100%), minimum 65% of MNREGA funds for water-related works.
  • For critical rural blocks (90–100%) - 65%
  • For semi-critical (70–90%) - 40%
  • For safe (≤70%) - 30%
• Reference of (above) categorisation:
  • The Central Ground Water Board’s (CGWB) Dynamic Ground Water Resources Assessment Report (2024) serves as the reference for categorisation.
  • As per CGWB’s report, there are total 6,746 blocks, out of which -
    • Over-exploited blocks are 751 (11.13%)
    • Critical: 206 (3.05%)
    • Semi-critical: 711 (10.54%)
    • Safe: 4,951 (73.39%)
    • Saline: 127 blocks

Likely Benefits of the Decision:

• Out of the Rs 86,000 crore allocated for MGNREGS in FY 2025–26, about Rs 35,000 crore is expected to be directed toward water-related works.
• The states with the highest number of over-exploited and critical blocks will gain the most funds - Rajasthan (214), Punjab (115), Tamil Nadu (106), Haryana (88), Uttar Pradesh (59).

Significance for Rural India:

• Encourages climate-resilient rural infrastructure.
• Aligns MGNREGA with the Jal Shakti Abhiyan and Atal Bhujal Yojana.
• Reduces groundwater stress through community-based interventions.
• Promotes employment generation in water management sectors.

Way Forward:

• Integrated planning: Convergence with schemes like PM Krishi Sinchayi Yojana (PMKSY) and watershed programmes.
• Capacity building: Training for Gram Sabhas and local engineers for scientific water management.
• Monitoring and transparency: Use of GIS mapping and real-time dashboards for implementation tracking.
• Sustainability focus: Promote recharge structures, afforestation, and soil-water conservation.

Conclusion:

• The amendment marks a strategic shift in India’s rural employment and water management framework.
• By linking MGNREGA works to groundwater sustainability, the government seeks to tackle one of India’s most pressing environmental challenges while strengthening rural livelihoods and climate resilience.
• Effective execution at the block and Gram Panchayat levels will be crucial for realising these objectives.