Thursday, August 25 2005 11:52 Hrs (IST) - World Time -

New Delhi: Parliament yesterday (August 24, 2005) night approved the historic Bill for providing employment guarantee to all rural households in the country with Rajya Sabha passing the legislation by a voice vote.

The ambitious Rural Employment Guarantee Bill, which was passed on August 23, 2005 by Lok Sabha, seeks to ensure at least 100 days wage employment to every rural household in a year in 200 districts to start with.

The scheme would be extended to all the 600 districts in the country in the next five years, Rural Development Minister Raghuvansh Prasad Singh said, winding up the marathon debate on the legislation.

Earlier, intervening in the discussion on the Bill, Prime Minister Manmohan Singh made a strong case for rationalisation of subsidies and improving investment climate and said it was essential to maintain seven to eight per cent growth to finance the Employment Guarantee Scheme and make it effective.

Singh said the Bill was also aimed at strengthening rural infrastructure and involving various bodies including Panchayati Raj institutions and NGO's.

He allayed Opposition's apprehensions that funds would be wasted and said strict action will be taken against those indulging in misappropriation of funds meant for the path breaking scheme.

He said Panchayats will play a principal role in selection, implementation and monitoring of schemes.

Singh assured the members the scheme would be transparent and strict vigilance would be maintained while implementing the scheme.

He said no private land would be brought under the bill and it would be confined to government land and those areas where food for work programme was being initiated.

Singh said while 90 per cent of the cost would be borne by the Centre, only 10 per cent of the cost would be incurred by the states.

The Minister said the cost of the scheme would not mean imposition of additional axes.

He said as per the provisions in the Bill, the government will provide equal amount as "unemployment allowance" if it failed to give the promised job.

Singh said the measure was in keeping with Prime Minister Manmohan Singh's promise to ensure that none would be left below the poverty line in the next 15 years.

He also said the scheme would prevent migration from villages and promised to consider suggestion for group insurance for the labourers.