Hyderabad: The Telangana government opposed the Centre’s move to downsise the multi crore Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and requested it to continue it in the present form for the benefit of rural poor.

“We are highly concerned about recent reports of downsizing the MGNREGS that has for the first time in the history of our country provided a real voice and choice to poor and vulnerable sections of the society.

As almost 95 per cent of rural HH (households) are dependent on the scheme directly and indirectly, limiting the scheme in any way is likely to have far reaching consequences in future,” Mr K.T. Rama Rao, minister for panchayat raj and IT remarked.

Mr Rama Rao made these comments at the State rural development ministers regional conference on MGNREGS convened by Union ministry of rural development in Kerala on Tuesday.

Telangana government is implementing MGNREGS in 443 mandals in nine districts barring Hyderabad and is worried over the reported move by the Centre to restrict it to just 60 to 70 mandals only in the state and similar cuts to other states.

The Telangana State legislature also resolved to continue the scheme in its present form without imposing any restrictions. “I request the Government of India to continue and further improve the implementation of MGNREGS with innovations and learning experiences from other states.

I believe everybody will agree that implementing MGNREGS for eight years has made a significant dent in the poverty and vulnerability in rural areas,” he explained.

Mr Rama Rao told the regional conference that in Telangana, MGNREGS is implemented in nine rural districts covering 443 Mandals. 100 crore person days have been generated at a cost of Rs 9,800 crore since inception.

“On an average, about 25 lakh households were provided wage employment every year. This is 45 per cent of registered households. Almost 95 per cent of them are from SC, ST and BC categories, which includes most vulnerable groups like Chenchu tribe,” he added.

Studies have shown that there was about 44 per cent reduction in migration, increase in income and savings of rural households.

About Rs.6000 per year per HH, Substantial improvement in the credit worthiness of rural households. Average Loan volume has increased to Rs. 32,000 from Rs. 6,500, besides neutralizing the negative effects inflation in rural areas to a great extent, he remarked.

MGNREGS has not only helped us with the provision guaranteed employment to deserving sections of society, but also led to the creation of durable assets and management of natural resources in rural areas he added.