New Delhi: The Union government is reportedly preparing to phase out the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and replace it with a new rural employment initiative tentatively titled the Viksit Bharat Gram Rozgar (VBGR) scheme, according to official sources familiar with the discussions.
The proposed overhaul is aimed at aligning rural employment generation with the government’s broader vision of a “Viksit Bharat” (Developed India), with greater emphasis on asset creation, skill development and productivity-linked work. The new scheme is expected to focus on durable infrastructure in villages, convergence with other central programmes, and employment opportunities tied to local economic needs rather than purely wage-based relief.
MGNREGA, launched in 2006, guarantees 100 days of wage employment to rural households and has long been seen as a key social safety net, especially during periods of agrarian distress and economic slowdown. However, the scheme has also faced criticism over alleged leakages, delayed wage payments, and what the government describes as limited long-term asset creation.
Sources said the proposed VBGR scheme would seek to address these concerns by encouraging skilled and semi-skilled work, promoting rural entrepreneurship, and integrating digital monitoring to improve transparency. Employment generation under the new framework may also be linked with agriculture allied activities, rural housing, water conservation, renewable energy and village-level manufacturing.
Officials indicated that the transition, if approved, would be gradual to avoid disruption to rural livelihoods. Existing beneficiaries are likely to be accommodated under the new programme, though the legal guarantee of employment under MGNREGA may not continue in its current form.
The development has already sparked political debate. Opposition parties are expected to strongly oppose any move to scrap MGNREGA, arguing that it remains a lifeline for millions of rural families. They have warned that removing the statutory employment guarantee could weaken rural wage security.
The government, meanwhile, has maintained that no final decision has yet been taken and that consultations are ongoing. An official announcement, if any, is likely to be made after the proposal is placed before the Union Cabinet.
