Effective Use of Technology for Welfare Schemes – Case of MGNREGS

Effective Use of Technology for Welfare Schemes – Case of

MGNREGS

• Direct Benefit Transfer (DBT) and linking it Aadhar linked Payments (ALP).
• Use of the Jan Dhan, Aadhaar and Mobile (JAM) trinity to credit wages
directly into MGNREGS workers’ bank accounts, thereby reducing scope
for delays in payment.

• In 2015, the Government introduced ALP in MGNREGS in 300 districts that

had a high banking penetration. Remaining districts were covered under
ALP in 2016. Conceptually, ALP could speed up the wage payment cycle in
the following two ways. First, due to stringent biometric requirements, an
Aadhaar linked account is unlikely to belong to a ‘ghost’ beneficiary.
Hence, Government officials require less time to verify and audit claims
from such accounts. Second, the Central Government, which ultimately
foots the bill for the program, can transfer wages directly to the bank
accounts of the beneficiaries, thereby cutting the bureaucratic red tape
 Effective Use of Technology for Welfare
Schemes – Case of MGNREGS
• In order to streamline the system of fund flow and to ensure
timely payment of wages, NeFMS was implemented in the
year 2016 . Under the system, the Central Government
directly credits the wages of the MGNREGS workers, on a real
time basis, to a specific bank account opened by the State
Governments. All the Programme Officers debit this state-
level single account for authorization of wage payment.

• DBT-enabled MGNREGS has indeed helped to alleviate

distress of workers
 Effective Use of Technology for Welfare Schemes –
Case of MGNREGS
• Use of technology in welfare scheme
• Direct benefit transfer through
• JAM
• Jan Dhan Account
• Adhar linked Account
• Mobile

• Effect
• Declines in payment delays
• Both demand and supply of work under MGNREGS increased
• After implementation of ALP, women, SC and ST workforce increased
under MGNREGS during times of economic distress
Major Policy Reform under Skill
Development Initiative
 Skill Development Initiative (SDI)

• Skill Development Initiative (SDI) (Ministry of Labour and Employment)

• The main aim is to provide vocational training to school dropouts, existing
workers, ITI graduates, etc., to improve their employability by optimally
utilising the infrastructure available in Government, Private Institutions
and Industry. 
• Existing skills of the persons can also be tested and certified under this
scheme.
• 100% centrally sponsored demand driven short term training courses
based on ‘Modular Employable Skills’ decided in consultation with
industry.
•  
 Schemes & Initiatives

• Schemes & Initiatives through NSDC

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Rozgar Mela
• Pradhan Mantri Kaushal Kendras (PMKK)
• Capacity Building Scheme
• Udaan
• School Initiatives and Higher Education
• India International Skill Centres (IISCs)
• Pre Departure Orientation Training (PDOT)
 NSDC
• National Skill Development Corporation (NSDC) is a not-for-profit public
limited company incorporated on July 31, 2008 .NSDC was set up by
Ministry of Finance as Public Private Partnership (PPP) model. The
Government of India through Ministry of Skill Development &
Entrepreneurship (MSDE) holds 49% of the share capital of NSDC, while
the private sector has the balance 51% of the share capital.
 Functions of NSDC
• NSDC aims to promote skill development by catalyzing creation of large,
quality and for-profit vocational institutions.
• Further, the organisation provides funding to build scalable and profitable
vocational training initiatives.
• Its mandate is also to enable support system which focuses on quality
assurance, information systems and train the trainer academies either directly
or through partnerships.
• NSDC acts as a catalyst in skill development by providing funding to
enterprises, companies and organizations that provide skill training.
• It also develops appropriate models to enhance, support and coordinate
private sector initiatives.
• The differentiated focus on 37 sectors under NSDC’s purview and its
understanding of their viability will make every sector attractive to private
investment.
 Pradhan Mantri Kaushal Vikas Yojana
•Pradhan Mantri Kaushal Vikas Yojana
•PMKVY (2016-2020) is a grant-based scheme, providing free of cost skill
development training and skill certification in over 252 job roles to increase the
employability of the youth. The scheme was launched on 2nd October 2016 with
the following objectives:
•Provide fresh skill development training to school dropouts, college dropouts and
unemployed youth through short term courses
•Recognise the skill available of the current work force through skill certification
•Engage States in the implementation of the scheme leading to capacity
development of the states
•Improved quality of training infrastructure along with alignment of training with the
needs of the industry
•Encourage standardization in the certification process and initiate a process of
creating a registry of skills
 Pradhan Mantri Kaushal Vikas Yojana
•PMKVY (2016-2020) has two components known as Centrally Sponsored
Centrally Managed (CSCM) and Centrally Sponsored State Managed (CSSM)
•(i) Centrally Sponsored Centrally Managed (CSCM)
•This component consists of 75% of the PMKVY (2016-2020) targets and is being
implemented centrally through National Skill Development Corporation (NSDC).
It constitutes the following
•Short Term Training - Provision of200 to 500 hour long skill-oriented training,
both core and soft, at PMKVY affiliated and accredited training centres to
school/college dropouts or unemployed
•Recognition of Prior Learning - Recognition of existing skills after a 12 to 80
hours orientation cum bridge course by provision of PMKVY certificate to
candidates
• http://pmkvyofficial.org/ 
• 
 Pradhan Mantri Kaushal Vikas Yojana
• The implementation of the scheme happens in the States and the
involvement of the States in scheme implementation support and
monitoring is expected to significantly improve the effectiveness and
efficiencies of these initiatives
• The States are better placed to articulate the skilling needs for
State specific economic activities. Their involvement would enable
taking up specific skill development training that cater to the local
demand and aspirations
• It would increase the capacity and capability of the existing
nationwide skill development system thus supporting equitable access
for all
• It will support the training and capacity building initiatives for state
specific traditional skills
 Rozgar Mela
•Rozgar Mela
•Govt. of India has been organizing Rozgar Melas across the nation for providing
suitable job opportunities to the unemployed youth. The Rozgar Mela is a major
initiative taken by the Ministry to improve the placement rate of unemployed
youth.

•Rozgar Melas are a platform exclusively for the youth of the where Corporate
India participates extensively and extends opportunities of employment to the
deserving candidates. The unique format of the Rozgar Mela is providing the
youth nationwide, the platform to learn about employment and
entrepreneurship opportunities by directly connecting them with the
corporates.
•Generally, NSDC conducts a 3-day Rozgar Mela with the key activities mentioned
as under:
Pradhan Mantri Kaushal Kendra (PMKK
•Pradhan Mantri Kaushal Kendra (PMKK)
•Under Skill India Mission, Ministry of Skill Development and
Entrepreneurship (MSDE) has initiated the establishment of state-of-
the-art, visible and aspirational model training centers in every
district of India, ensuring coverage of all the parliamentary
constituencies. These model training centers are referred to as
“Pradhan Mantri Kaushal Kendra” (PMKK).
•The PMKK program provides financial support in form of a soft loan
up to INR 70 lakhs to create training infrastructure and complements
the delivery of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY),
the flagship skill development program of the Government at the
district level.
Pradhan Mantri Kaushal Kendra (PMKK
• Salient features of PMKK
• At least 3000 sq. ft. - 8000 sq. ft. (depending on district population) in size
• Standard the external and internal branding and infrastructure
requirements to ensure quality
• Courses determined based on district population to cater to local youth
aspirations
• Smart Classrooms, Audio-visual training aids, Biometric attendance
• Mandatory training in the manufacturing trades
• Mandatory industry seminars and guest lectures
• Dedicated counselling, mobilization and placement cell
Impact of covid 19 on labour Market in India
• The biggest economic disruption due to the Covid-19 pandemic in India
was on account of the 68-day hard lockdown imposed on March 25, 2020.
• Among other things, the lockdown triggered a huge wave of reverse
migration of workers, leading to a sharp rise in unemployment and loss of
incomes.
• India experienced severe working-hour and employment losses in 2020
and 2021, and Indian youth employment deteriorated in 2021 compared
to 2020, according to the Global Employment Trends for Youth
2022 report released by the International Labour Organization.
• The recovery in youth employment is still lagging globally, the report
says, confirming that COVID-19 has hurt young people more than any
other age group.
•  
Impact of covid 19 on labour Market in India
• With abrupt announcement of the lockdown, 25–30 million migrants were
stranded in the cities (Nayyar, 2020). They were deprived of work, wage, food,
shelter and dignity in the cities for which state governments are ultimately
responsible. This created an unprecedented humanitarian crisis, as a large volume
of migration in India is short-term, seasonal and cyclical. Faced with uncertainty
and meagre resources, migrant labourers were fleeing urban centres to reach
home, situated thousands of miles away, on foot. This led to a chain of events,
eventually culminating into a crisis, unfolding on the streets of India, with many
losing their lives in the process. As news of these deaths started hitting the
headlines, GoI finally decided to start ‘Shramik Express’, i.e., special labour trains.
According to the Ministry of Railways (2020a, 2020b) data, 4,277 special Shramik
trains brought back 6 million workers to their home states by 12 June 2020. A vast
majority of these trains originated from Gujarat (24%), Maharashtra
• (19%), Punjab (10%), Uttar Pradesh (7%) and Bihar (7%) and ended up in Uttar
Pradesh (41%), Bihar 36%), Jharkhand (5%), Odisha (5%) and West Bengal (4
Impact of covid 19 on labour Market in India

• The rural labour market in India got more adversely affected during
lockdown. Non-farm employment collapsed leading to higher
participation in agricultural work.
• With reverse migration, remittances have also declined sharply
particularly in the eastern Indian states, creating rural distress.
Unemployment rate in urban areas rose to 20.9% during the April-June
quarter of 2020, more than double the unemployment rate in the same
quarter the previous year (8.9%).  Unemployment rate refers to the
percentage of unemployed persons in the labour force
Impact of covid 19 on labour Market in India

• Recovery post-national lockdown uneven in case of females

• Pre-COVID-19 trends suggest that the female unemployment rate
has generally been higher than the male unemployment rate in the
country (7.3% vs 9.8% during the October-December quarter of
2019, respectively).  Since the onset of the COVID-19 pandemic, this
gap seems to have widened.   During the October-December
quarter of 2020, the unemployment rate for females was 13.1%, as
compared to 9.5% for males.
 Major Programs/ schemes to improve employment opportunities

• Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the central
government contributed both 12% employer’s share and 12% employee’s share
under Employees Provident Fund (EPF).  Between March and August 2020, a
total of Rs 2,567 crore was credited in EPF accounts of 38.85 lakhs eligible
employees through 2.63 lakh establishments.
 
• The Aatmanirbhar Bharat Rozgar Yojna (ABRY) Scheme was launched with
effect from October 2020 to incentivise employers for the creation of new
employment along with social security benefits and restoration of loss of
employment during the COVID-19 pandemic.  Further, statutory provident fund
contribution of both employers and employees was reduced to 10% each from
the existing 12% for all establishments covered by EPF Organisation for three
months.  As of June 30, 2021, an amount of Rs 950 crore has been disbursed
under ABRY to around 22 lakh beneficiaries.
 
 Major Programs/ schemes to improve
employment opportunities
• The unemployment benefit under the Atal Beemit Vyakti Kalyan Yojana
(launched in July 2018) was enhanced from 25% to 50% of the average
earning for insured workers who have lost employment due to COVID-19.
 
• Under the Prime Minister’s Street Vendor’s Aatma Nirbhar Nidhi (PM
SVANidhi) scheme, the central government provided an initial working
capital of up to Rs 10,000 to street vendors.  As of June 28, 2021, 25 lakh
loan applications have been sanctioned and Rs 2,130 crore disbursed to
21.57 lakh beneficiaries.
• The central and state governments have also taken various other 
measures, such as increasing spending on infrastructure creation and
enabling access to cheaper lending for businesses, to sustain economic
activity and boost employment generation.
 Major Programs/ schemes to improve
employment opportunities
• Aatmanirbhar Bharat package -The Government of India has announced
Aatmanirbhar Bharat package to provide stimulus to business and to mitigate
the adverse impact of Covid 19. Under this package, the Government is
providing fiscal stimulus of more than Rs. Twenty Seven lakh crore. This
package comprises of various long term schemes/ programmes/ policies for
making the country self-reliant and to create employment opportunities.

• Garib Kalyan Rojgar Abhiyaan (GKRA)  The Government launched the Garib
Kalyan Rojgar Abhiyaan (GKRA) of 125 days on 20th June, 2020 to boost
employment and livelihood opportunities for returnee migrant workers and
similarly affected persons including youth in rural areas, in 116 selected districts
across 6 States of Bihar, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and
Uttar Pradesh. The Abhiyaan has achieved an employment generation of 50.78
crore persondays with a total expenditure of Rs 39,293 crore.
 Major Programs/ schemes to improve
employment opportunities
• Aatmanirbhar Bharat RojgarYojana (ABRY) has been launched with effect
from 1st October, 2020 as part of Atmanirbhar Bharat package 3.0 to
incentivize employers for creation of new employment along with social
security benefits and restoration of loss of employment during Covid-19
pandemic. This scheme being implemented through the Employees’
Provident Fund Organisation (EPFO), seeks to reduce the financial burden
of the employers and encourages them to hire more workers. The terminal
date for registration of beneficiaries has been extended from 30.06.2021
to 31.03.2022. Benefits of Rs.3435/- crore have been provided to 46.89
lakh beneficiaries through 1.26 lakh establishments till 29.01.2022.
 Major Programs/ schemes to improve
employment opportunities
• Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been
launched on June 01, 2020 to provide working capital loans to Street Vendors, vending
in urban areas, to resume their businesses, which were impacted adversely due to
COVID-19. Under this scheme, credit worth Rs. 3,054 crore to 30.2 lakh street vendors
as on 30.11.2021          
• Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government for
facilitating self-employment. Under PMMY, collateral free loans upto Rs. 10 lakh, are
extended to micro/small business enterprises and to individuals to enable them to
setup or expand their business activities. Upto 21.01.2022, Rs.32.12 crore loans were
sanctioned under the scheme. The Production Linked Incentive Schemes being
implemented by the Government have potential for creating 60 lakh new jobs.
•            PM Gati Shakti is a transformative approach for economic growth and sustainable
development. The approach is driven by seven engines, namely, Roads, Railways,
Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. This approach is
powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial
opportunities for all.