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MGNREGA_SAMEEKSHA

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3 Sustainable Asset Creation<br />

Creation of sustainable assets that strengthen<br />

the livelihood resource base of rural areas<br />

is one of the key objectives of <strong>MGNREGA</strong>.<br />

To provide for inter-state and regional<br />

variations, the design of <strong>MGNREGA</strong> lists a wide<br />

range of permissible works.<br />

Since the inception of <strong>MGNREGA</strong>, around<br />

146 lakh works have been undertaken; of these,<br />

almost 51 per cent are works related to water (water<br />

conservation, flood control, irrigation, drought<br />

proofing, renovation of traditional water bodies and<br />

micro-irrigation), and over 19 per cent works are<br />

related to rural connectivity (see Table 3.1). At such a<br />

scale, <strong>MGNREGA</strong> works have the potential to benefit<br />

rural communities by improving irrigation facilities,<br />

enhancing land productivity and connecting remote<br />

villages to input and output markets.<br />

This chapter does a critical review of the available<br />

literature on assets created under <strong>MGNREGA</strong>;<br />

their quality and durability, work completion rates,<br />

viability of these works (on public lands and private<br />

lands), and what uses they are put to.<br />

Overall, studies suggest that while many productive<br />

assets have been created on the ground owing to good<br />

planning and execution at the micro-level, there is<br />

need for more focussed implementation with regard<br />

to the creation of durable and sustainable assets<br />

under <strong>MGNREGA</strong>. This is also an area where more<br />

rigorous research is required.<br />

Quality and Durability of Assets<br />

When planned and executed well, studies<br />

indicate a positive Return on Investment<br />

for <strong>MGNREGA</strong> assets; a study observed a<br />

Return on Investment of over 100 per cent in<br />

a single year of use. On the other hand, some<br />

studies highlight design-specific and technical<br />

quality issues which undermine the potential<br />

of these works. That said, there are only a<br />

few studies that have conducted rigorous<br />

scientific analysis on the actual productive<br />

performance of these assets. Further, the<br />

quality and durability of the assets vary vastly<br />

with district/region and cannot easily be<br />

generalised at the national level.<br />

<strong>MGNREGA</strong> has faced criticism on the quality<br />

and sustainability of the assets created under it.<br />

Critics of the Scheme argue that since employment<br />

generation is the primary objective of the Act, the

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