MGNREGS: Centre sanctions Rs 170 crore

IBNlive, June 28, 2011

BHUBANESWAR: After initial refusal to sanction funds under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the six districts under CBI scanner, the Centre on Monday released Rs 170 crore for the wage employment programme.

“The Government received the Central assistance and this has been distributed among six districts,” said Panchayati Raj Secretary PK Jena.� Though the Ministry of Rural Development (MoRD) released the first installment of ` 530 crore for the rural job scheme last week, it intimated the State that the Central assistance to the six districts of Koraput, Nabarangpur, Rayagada, Kalahandi, Nuapada and Balangir will be suspended till the CBI probe into the alleged financial irregularities is over.

The Panchayati Raj Department shot off a letter to MoRD saying the State Government is not in a position to pay unemployment allowance to the job seekers who would be denied wage employment due to paucity of funds.

The State should not be held responsible for violation of the NREGA which provides unemployment allowance to job seekers who are denied jobs on demand, the official communique said.

The State Government further clarified that it had already informed the Supreme Court through an affidavit about the action taken in the rural job scam.

Suspension of Central assistance to the six districts will be like denying work to the people and the Centre will be fully responsible for any eventuality, it cautioned.

The Government had submitted a labour budget to the tune of ` 2,300 crore to the Centre under the flagship wage employment scheme for the current financial year.� Normally, the first dose of assistance under Central schemes and Centrally- sponsored schemes are released in April, the� first month of the financial year.� As pressure mounted on the Centre for a CBI probe into the rural job scam, the MoRD refused to release the first installment to the State.� The MoRD released funds following a threat from the State Government to stop the food security programme due to paucity of funds.