Bihar’s new MGNREGA-linked scheme, launched on June 21, 2025, aims to boost rural employment by integrating skill development and infrastructure projects. Targeting 10 lakh households, it offers 100 days of guaranteed work, focusing on women and marginalized groups. The initiative addresses unemployment and aims to create sustainable rural assets, enhancing livelihoods in India’s poorest state.
Bihar’s Bold Step to Boost Rural Employment with MGNREGA-Linked Scheme
On June 21, 2025, Bihar’s state government unveiled a transformative MGNREGA-linked scheme aimed at revitalizing rural employment and addressing chronic poverty in the state. Launched in Patna by Chief Minister Nitish Kumar, the initiative integrates the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) framework with skill development programs and infrastructure projects to create sustainable job opportunities for rural households.
The scheme targets 10 lakh rural households, prioritizing women, Scheduled Castes, Scheduled Tribes, and other marginalized communities. It guarantees 100 days of wage employment annually, in line with MGNREGA’s core mandate, but introduces innovations like skill training in areas such as organic farming, water conservation, and rural construction. This dual focus aims to enhance employability while creating durable assets like roads, irrigation canals, and water harvesting structures.
Bihar, one of India’s poorest states with nearly 90% of its population in rural areas, has struggled with MGNREGA’s implementation in the past. A 2019 World Bank evaluation highlighted that the program failed to deliver adequate work in Bihar due to low awareness, weak financial management, and implementation challenges. The new scheme addresses these gaps by leveraging technology, such as Aadhaar-Based Payment Systems (ABPS) for transparent wage disbursal, and GeoMGNREGA for real-time asset tracking.
The state government has allocated ₹5,000 crore for the scheme, with 75% funding from the central government and the rest from state resources. Additionally, the initiative introduces the “Bihar Rural Livelihood Enhancement Program” (BRLEP), a component that trains workers under MGNREGA’s Project Unnati to transition to full-time employment. The program has already enrolled 2 lakh workers for training in its pilot phase, with a focus on youth aged 18–45.
Women’s participation is a cornerstone of the scheme, with a mandate to ensure at least 50% of jobs go to women, surpassing MGNREGA’s national requirement of one-third. In 2022–23, Bihar recorded 56.88% women’s participation in MGNREGA, and officials aim to push this figure higher through incentives like insurance coverage and financial aid for women above 60. Self-help groups (SHGs) linked to the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) will play a key role in mobilizing women workers.
The scheme also emphasizes climate-resilient projects, such as afforestation and watershed management, aligning with national initiatives like Mission Amrit Sarovar. By integrating these with MGNREGA works, Bihar aims to create 1,000 new water bodies and restore 500 existing ones by 2027, addressing water scarcity in drought-prone districts.
Challenges remain, however. Experts warn that delays in wage payments, incomplete projects, and fake job cards—issues that plagued MGNREGA in Bihar—could undermine the scheme’s success. To counter this, the state has appointed district-level ombudspersons to handle grievances and mandated social audits by Gram Sabhas to ensure transparency. Over 1,000 barefoot technicians, trained in civil engineering, will monitor project quality and progress.
Local leaders have hailed the scheme as a game-changer. “This is not just about jobs but about empowering our rural population with skills and assets,” said D. Balamurugan, Bihar’s Rural Development Secretary. However, opposition leaders have raised concerns about funding sustainability and the need for better coordination between departments to avoid past pitfalls.
With rural unemployment in Bihar hovering at 7.2% (as per 2024 CMIE data), the scheme’s success could redefine livelihoods for millions. By combining MGNREGA’s legal guarantee of work with skill development and infrastructure growth, Bihar is taking a significant step toward inclusive rural development.
Disclaimer: This article is based on reports from government announcements, official MGNREGA data, and insights from rural development experts. Information is sourced from the Ministry of Rural Development, World Bank evaluations, and local news updates as of July 6, 2025. Readers are advised to verify details through official channels.