Rural employment: Centre sanctions Rs 950 cr for TN

CHENNAI: To maintain the momentum of the guaranteed employment scheme aimed at sustaining rural livelihoods, the Union Ministry of Rural Development has released Rs 949.51 crore to Tamil Nadu.

This allocation is part of the fourth instalment of central assistance towards wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

With this fourth instalment, total central assistance to the state under the scheme has exceeded Rs 4,300 crore for the current financial year to date.

Of the fourth instalment, the TN government has received Rs 225.98 cr in eight tranches, starting from August 29. Meanwhile, the Ministry has also released Rs 655.98 cr towards component materials for the fiscal year.

Under Secretary (MGNREGS) Abhishek Kumar, in an official communication, directed the Department of Rural Development and Panchayat Raj in TN to “utilise the grant towards plan expenditure and ensure it is used for approved items of work, subject to the conditions laid down in the MGNREGA guidelines.”

He further stressed that there should “not be any deviation” from the stipulated norms.

The release of funds by the Union Government began on April 20, following growing political friction over delayed wage payments.

The issue sparked an exchange of barbs between leaders of the ruling parties at the state and central levels. Behind the scenes, TN officials actively followed up with official channels and secured the long-pending dues of Rs 2,853 cr, as implementation of the scheme had come to a near standstill.

After considerable delay, the ministry sanctioned Rs 2,999.53 crore, disbursing it in 149 tranches between April 20 and June 6. The second instalment of Rs 919.99 crore was sanctioned even before the final tranche of the first instalment was released. A third instalment of Rs 31.10 crore followed on June 20.

Although these funds have helped settle outstanding dues under the scheme, the Union government has significantly curtailed the total number of person-days to 12 crore for 2025-26, less than half of the 30 cr person-days achieved by the state in 2024-25.

So far this year, the department has spent Rs 1,686 crore and Rs 788 crore towards wage and material components, respectively. A total of 4.25 lakh works, including spill-over projects, have been taken up across 12,524 panchayats. Of these, nearly 46% are linked to agriculture and allied activities, collectively generating employment for 46.65 lakh workers.

INSIGHTS

Rs 4,900 cr released by MoRD in four instalments for 2025-2026 towards wage component, including pending dues

Rs 4,300 cr received by Tamil Nadu so far

Rs 1,686 cr disbursed by Tamil Nadu as wages

Rs 788 cr utilised by Tamil Nadu for material components