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Why MGNREGA is being replaced by a new scheme
Mint Mumbai
|December 19, 2025
The Lok Sabha passed the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 Thursday, proposing a sweeping overhaul of India's two-decade-old rural jobs scheme. The bill is now in the Rajya Sabha for discussion and passage. Mint explores the issue.
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What's being replaced by the new bill?
The new bill seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and the scheme named after it, MGNREGS, which has 260 million registered workers and covers 269,000 gram panchayats across India. According to the government, the bill seeks to transform the nature of the rural jobs scheme by bringing states in as partners, and resolve a chronic problem in the rural jobs marketof NREGA jobs competing with regular jobs when their wages are close to or higher than what local farmers or small contractors pay, hurting farm labour availability.
What are the changes proposed in the bill?
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