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Enhancing Rural Livelihoods through Category B Assets under the Mahatma Gandhi NREGS: Evidence from Telangana State

  • Dr.  Muthyalu Meniga
  • Dr. V. Suresh Babu
  • 917-930
  • Sep 29, 2025
  • Rural Livelihood

Enhancing Rural Livelihoods through Category B Assets under the Mahatma Gandhi NREGS: Evidence from Telangana State

Dr.  Muthyalu Meniga, Dr. V. Suresh Babu

Centre for Wale Employment and Livelihoods, National Institute of Rural Development and Panchayat Raj

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90900080

Received: 04 August 2025; Accepted: 15 August 2025; Published: 29 September 2025

ABSTRACT

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims not only to provide 100 days of wage employment but also to create durable assets (Category B) such as land development, horticulture, percolation tanks, livestock shelters, farm ponds, and wells. This dual focus anchors its potential role in empowerment and sustainable livelihoods. Mahatma Gandhi NREGS has tremendous potential for enhancing the income of rural households through individual assets by increasing the productivity of land and agriculture. The beneficiaries of individual assets gained new sources of livelihoods with the utility of existing assets, resulting in a rise in their income levels. The potentialities of individual assets, created under Category B of Schedule I of the Mahatma Gandhi National Rural Employment Guarantee Act, for enhancing the income of rural households and increasing the productivity of land and agriculture need to be examined. The main objective of the study is to assess the contribution of individual assets created under the Mahatma Gandhi NREGS in enhancing rural households’ livelihoods. This study is based on a primary and secondary sources of data. The case studies are documented from different districts of Telangana state. Different types of category B works, which are created under MGNREGS, were selected to document the case studies in Siddipeta, Peddapalli, Karimnagar, Nagarkurnool and Nirmal districts. SC/ST participation is fairly stable, maintaining 17 per cent to 20 per cent consistently, reflecting reasonable outreach to marginalised groups, although a mild decline is observed in recent years. Women’s participation has increased from 53.19 per cent to over 58 per cent, consistently exceeding the mandated 33 per cent quota, signalling strong gender inclusion. The works related to improving livelihoods through horticulture, sericulture, plantation, and farm forestry. The second highest number of category B works undertaken in the state of Telangana are improving the productivity of land of households specified in Paragraph 5 through land development and by providing suitable infrastructure for irrigation, including dug wells, farm ponds and other water harvesting structures. Promotion of Livestock remains a moderately stable interest and alignment with rural income diversification. The highest number of livestock promotion works (10,040) was undertaken in the financial year 2021-22. The focus shifted to promoting livestock infrastructure like the construction of cattle sheds, goat sheds, poultry sheds, etc., for enhancing the livelihoods of those who depend on livestock. The overall contributions of category B works under MGNREGS were enhanced income and livelihoods to the beneficiary households and greater food security to the rural households. These category B assets helped rural households in converting from wage employment to self-employment.

Keywords: Assets, Livelihoods, Income, Rural, Category B assets, MGNREGS

INTRODUCTION

A variety of definitions of livelihood are given in the literature, including, for example, ‘the means of gaining a living’ or ‘a combination of the resources used and the activities undertaken in order to live’. The Department for International Development (DFID) defined that ‘livelihood comprises capabilities, assets, and required for a means of living’. People combine different activities in a portfolio to make a living. The natural environment surrounding the people provides several goods, services and amenities, and other environmental resources that support the livelihood of the people (Chambers, R. & Conway; G., 1992).

The connections between climate change and threats to livelihoods are increasing. Factors associated with caste/ethnicity and gender dimensions also contribute to livelihood vulnerability. Female-headed households and those belonging to disadvantaged social groups are more vulnerable and have disrupted livelihood patterns. Factors such as climate extremes and associated hazards, dependence on natural resources, lack of financial assets, and weak social networks have been identified as components that determine overall levels of household livelihood vulnerability. Financial assets can be enhanced to increase household adaptability and ultimately reduce their vulnerability (Sujakhu et al., 2019). Commonly, rural farm households had higher exposure to vulnerability with low and poor coping strategies for resilience to the changes. They are highly susceptible to bear changes in their livelihood. The variation in agricultural productivity and water availability negatively affects rural livelihoods (Shahzad et al., 2019).

The sustainable livelihoods framework helps to organise the factors that constrain or enhance livelihood opportunities and shows how they relate to one another. A central notion is that different households have different access to livelihood assets, which the sustainable livelihood approach aims to expand. Five types of capital are identified in the DFID framework. They are:

Natural capital – the natural resource stocks (Land, water, vegetation, air, genetic resources, etc.) and environmental services (hydrological cycle, pollution sinks, etc.) from which resource flows and services useful for livelihoods are derived.

Financial or Economic capital – the capital base (cash, credit/debt, savings, remittance, and other economic assets,) which are essential for the pursuit of any livelihood strategy. Human capital – the skills, knowledge, ability to labour and good health and physical capability are important for the successful pursuit of different livelihood strategies. Social capital – the social resources (networks, social claims, social organisation, social relations, affiliations, associations) upon which people draw when pursuing different livelihood strategies requiring coordinated actions. Physical capital- the infrastructure (transport, roads, vehicles, secure shelter and buildings, water supply and sanitation, energy, communications), tools and technology (tools and equipment for production, seed, fertiliser, pesticides, traditional technology)

Mahatma Gandhi NREGS has tremendous potential for enhancing the income of rural households through individual assets by increasing the productivity of land and agriculture. The beneficiaries of individual assets gained new sources of livelihoods with the utility of existing assets, resulting in a rise in their income levels.

Statement of the Problem

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims not only to provide 100 days of wage employment but also to create durable assets (Category B) such as land development, horticulture, percolation tanks, livestock shelters, farm ponds, and wells. This dual focus anchors its potential role in empowerment and sustainable livelihoods. A study by Pankaj & Bhattacharya (2022) shows that individual assets under Category B significantly boosted household incomes, improved agricultural productivity through crop diversification, land use expansion, and enhanced food security.

Paragraph 4 of Schedule 1 of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, divides permissible works under the scheme (MGNREGS) into four categories, namely, A, B, C and D. Category A provides for public works relating to natural resource management, mostly water conservation, watershed management, micro and minor irrigation, renovation of traditional water bodies, land development in common land and afforestation. Category B provides for community or individual assets for the most vulnerable households. These are scheduled castes (SCs), scheduled tribes (STs), nomadic tribes, denotified tribes, below poverty line (BPL) families, women-headed households, physically handicapped–headed households, beneficiaries of land reforms and the Pradhan Mantri Awas Yojana (PMAY), etc. Category C works Common Infrastructure for NRLM Compliant Self Help Groups for the enhancement of agriculture production and productivity. Category D provides for rural infrastructure like all-weather roads, rural sanitation–related works like individual household latrines, school toilets, Anganwadi centre toilets, play fields, compound walls for government schools, construction of gram panchayat buildings, etc. As per the MGNREGS Master Circular for the Financial Year 2024–25, there are 266 identified permissible works or activities (MoRD, 2024). Out of these, 150 are related to agriculture and allied activities. 58 Natural resource management and 58 rural infrastructure (AMC 2024-25).

While MGNREGS has generated over 9.15 Cr. assets since inception, a total of 12.02 Cr. active workers are there, 82.22 Cr. Person days generated, 3.33 Cr. Households benefit, a total of 2.02Cr. Individual Category B works are created (2025-26). The specific role of Category B assets is in enhancing income, promoting agricultural diversification, reducing migration, and building climate resilience. MGNREGS has been creating on average 30 lakh new assets per year, including a significant share of Category B livelihood assets, across all asset categories (A–D). Category B assets—including farm ponds, dug wells, plantations, livestock/fishery structures—constitute a core subset of these annual creations. Around 54% of total assets are concentrated in five states: Andhra Pradesh, Uttar Pradesh, West Bengal, Madhya Pradesh, and Telangana.

The potentialities of individual assets, created under Category B of Schedule I of the Mahatma Gandhi National Rural Employment Guarantee Act, for enhancing the income of rural households and increasing the productivity of land and agriculture need to be examined. The beneficiaries of individual assets gained through the creation of new sources of livelihoods, additional utility of their existing assets and a rise in their income levels. The community also gained an increase in food security through the enhanced productivity of land and agriculture, mainly through an increase in crop acreage, yields per acre, and crop diversification. However, a proactive selection of landless households and diversification of individual assets is required to make the benefits of asset creation inclusive.

There are limited studies on Category B assets or analysed in a focused manner, given the large budgetary allocations (60% of total funds directed toward agriculture & allied activities) and increasing digital tracking (geotagging, mobile monitoring), there’s a timely opportunity to evaluate: How Category B assets promote sustainable livelihoods, Whether they effectively reach vulnerable communities or not, The quality, utility, and durability of such assets, Convergence potential with other schemes. Therefore, the researchers are motivated to conduct a research study on promoting livelihoods through creating Category B assets under the Mahatma Gandhi NREGS.

Objectives of the study

  1. The main objective of the study is to assess the contribution of individual assets created under the Mahatma Gandhi NREGS to rural households’ livelihoods
  2. To document the case studies on individual assets created under MGNREGS

METHODOLOGY OF THE STUDY

This study is based on a primary survey and secondary sources of data. The case studies are documented from different districts of Telangana state. Different types of category B works, which are created under MGNREGS, were selected to document the case studies in Siddipeta, Peddapalli, Karimnagar, Nagarkurnool and Nirmal districts. The districts were selected from different agro-climatic zones, based on the proportion of completed individual works to the total MGNREGS works. This paper explores how Category B assets under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) contribute to enhancing rural livelihoods. Using case studies, field data, and secondary research, it assesses the impact of individual beneficiary assets like water harvesting structures, cattle sheds, land development, and farm ponds.

Table-1: Overview of the progress of MGNREGS at the National Level

 Progress of the MGNREGS Financial Years
FY 2025-2026 FY 2024-2025 FY 2023-2024 FY 2022-2023 FY 2021-2022 FY 2020-2021
Approved Labour Budget[In Cr] 198.86 243.59 307.26 285.33 337.76 385.67
Persondays of Central Liability so far[In Cr] 83.56 286.26 308.66 293.7 363.19 389.09
% of Total LB 42.09 119.31 101.6 103.61 107.53 100.89
% as per Proportionate LB 91.83 261.07 0 0 0 0
SC persondays% % as of total persondays 17.88 18.63 19.18 19.55 19.17 19.87
ST persondays % as of total persondays 17.73 18.09 17.61 18.02 18.33 17.95
Women Persondays out of Total (%) 56.39 58.1 58.9 57.47 54.82 53.19
Average days of employment provided per Household 24.92 50.23 52.08 47.83 50.07 51.52
Average Wage rate per day per person(Rs.) 262.67 252.68 235.63 216.57 208.84 200.71
Total No of HHs completed 100 Days of Wage Employment 81,949 40,74,115 44,94,352 35,96,873 59,14,761 71,97,090
Total Households Worked[In Cr] 3.36 5.79 5.99 6.18 7.25 7.55
Total Individuals Worked[In Cr] 4.45 7.88 8.34 8.75 10.61 11.19
Differently abled persons worked 2,79,310 4,81,514 5,01,439 5,04,167 5,76,250 6,06,149

Source: www.nrega.nic.in

The approved labour budget dropped nearly 48 per cent over six years (from ₹385.67 Cr in 2020-21 to ₹198.86 Cr in 2025-26). Persondays of central liability also noticed a steep reduction, especially in FY 2025-26 (down to 83.56 Cr from 389.09 Cr in FY 2020-21). Notably, FY 2024-25 had a somewhat anomalous pattern: persondays were high (286.26 Cr) compared to a lower bud get (₹243.59 Cr), which led to a high percent of total labour budget utilised (119.31%), indicating overspending or budget mismatch. FY 2025-26 shows drastic budget cuts and under-utilisation, suggesting reduced program scale or implementation issues.

SC/ST participation is fairly stable, maintaining 17 per cent to 20 per cent consistently, reflecting reasonable outreach to marginalised groups, although a mild decline is observed in recent years. Women’s participation has increased from 53.19 per cent to over 58 per cent, consistently exceeding the mandated 33 per cent quota, signalling strong gender inclusion. Differently-abled participation is declining, almost halving since FY 2020–21. This may reflect either access barriers, systemic exclusion. The average employment days per household remained close to 50 days from FY 2020–21 to 2024–25, but halved in FY 2025–26 so far (24.92 days). Households completing 100 days of employment dropped sharply—from 72 lakh in 2020–21 to just 82,000 in FY 2025–26 up to June 2025. Gradually, households that have completed 100 days are declining due to reduced demand, better rural employment elsewhere, systemic barriers to claiming full 100 days, policy tightening, etc. It can be seen that the working days of the differently abled persons are also declining year by year.

Source: www.nrega.nic.in

The above figure presents the percentage of category B works. The figure shows that the highest percentage was recorded in 2020-21 (64.97%). The figure indicates that there is a general declining trend after that, with minor fluctuations. From FY 2023–24 to FY 2025–26, the % has been fairly stable (around 56–59%), suggesting a levelling off. The mean percentage of Category B Works is 59.15 per cent.

Table-2: Types and number of Individual assets created under the MGNREGS in Telangana state

Type of Individual works undertaken in Telangana FY

2020-21

FY

2021-22

FY

2022-23

FY

2023-24

FY

2024-25

Improving the productivity of land 45233 81191 30530 23205 30101
Improving livelihoods through plantation/horticulture etc. 107160 117452 18260 18719 7481
Development of fallow/waste lands 1573 2028 437 357 315
Construction of a house 11215 21381 9915 3696 3711
Promotion of livestock 3346 10040 4928 5394 4054
Promotion of fisheries 2206 4461 2520 1751 1046

Source: www.nrega.nic.in

The list of Mahatma Gandhi NREGA works linked to individual assets comprises of improving the productivity of lands of households through dug wells, farm ponds, and other water harvesting structures, improving livelihoods through horticulture, sericulture plantation, other kinds of plantation and farm forestry, development of fallow/wastelands of households, bush clearance, stone clearance, pasture development, fodder farm, creating infrastructure for the promotion of livestock such as- poultry shelter (brooder house), goat shelter, piggery shelter, cattle shelter and creating infrastructure for promotion of fisheries.

The above table presents the types and number of category B works created under the Mahatma Gandhi NREGS in the state of Telangana. The table indicates that most of the works undertaken in the financial years of 2020-21 (107160 works) and 2021-22 (117452 works) are works related to improving livelihoods through horticulture, sericulture, plantation, and farm forestry. The second highest number of category B works undertaken in the state of Telangana are improving the productivity of land of households specified in Paragraph 5 through land development and by providing suitable infrastructure for irrigation, including dug wells, farm ponds and other water harvesting structures.

A total of 45233, 81191, and 30530 works are undertaken in the financial years of 2020-21, 2021-22, and 2022-23, respectively. The Construction of houses are recorded as a good number during the financial years of 2020-21 (11,215), 2021-22 (21,381), and 2022-23 (9,915). Unskilled wage component in the construction of houses sanctioned under the Indira Awaas Yojana or such other State or Central Government Scheme. The unskilled wages will be paid to the beneficiaries for 90-95 person days. Promotion of Livestock remains a moderately stable interest and alignment with rural income diversification. The highest number of livestock promotion works (10,040) was undertaken in the financial year 2021-22. The focus shifted to promoting livestock infrastructure like the construction of cattle sheds, goat sheds, poultry sheds, etc., for enhancing the livelihoods of those who depend on livestock. This infrastructure played a great role in providing safe and secure shelter to the livestock and helped to enhance the income from the livestock sources.

It is observed that creating infrastructure for the promotion of fisheries, such as fish drying yards, storage facilities, and promoting fisheries in seasonal water bodies on public land, is undertaken with very limited work. It shows a peak in 2021-22 (4461 assets), then continues to decline; this could be due to regional limitations and a lack of demand from the beneficiaries.

The table depicts that the consistent underperformance in categories like Fisheries and Fallow land development.

It is observed that FY 2021–22 was the peak year for all types of category B works, possibly due to increased MGNREGS budget during COVID-19, and demand for individual asset creation for self-employment and food security. There is a need to emphasise categories like livestock, fisheries, and fallow land development through Convergence with NRLM, Animal Husbandry, and Agriculture departments. Across the five years, most categories show a peak in FY 2021–22, followed by a notable decline, indicating a shift in programmatic priorities or reduced beneficiary demand. All these category B works that are created under MGNREGS in the state of Telangana have helped the beneficiaries to enhance their livelihoods.

Source: www.nrega.nic.in

The above figure indicates that there is a consistent decline in the percentage of Category B works over the 5-year period. The drop from 33.55 per cent in 2020–21 to 24.37 per cent in 2024–25 indicates a reduction of over 9 percentage points. The most significant yearly decline was between 2021–22 and 2022–23 (1.59%) and between 2022–23 and 2023–24 (3.1%). Between 2023–24 and 2024–25, the rate nearly stabilised with a marginal decline of 0.13 per cent, possibly indicating the trend is bottoming out. Category B works, which will target vulnerable beneficiaries, seem to have received less emphasis in recent years compared to the last five years. The decreasing share could imply a shift towards other categories of works, low awareness among eligible individuals, limited demand for individual works, and administrative challenges in verifying and identifying eligible beneficiaries for Category B assets. In order to promote sustainable livelihoods for vulnerable groups, there is a need to increase focus on Category B assets. There should be continuous awareness creation programmes to educate eligible households about the benefits, advantages and process for accessing Category B works. The best practices which are created under MGNREGS in Telangana state are presented as follows:

Best practices of category B work under the MGNREGS in Telangana state

A case study on Poniki Tree plantation under the Mahatma Gandhi NREGS

Introduction: Poniki tree plantation has been taken up in Lingapur village, Mamada mandal, Nirmal district of Telangana state. The work ID is 3636003021/DP/7231111244. A total of 471 person days were generated through this activity. The estimated cost is 7,18,273. The Nirmal Art, encompassing a 400-year-old tradition of making soft wood toys and paintings, occupies a place of pride in the world of handicrafts. The finely carved figures and dainty paintings are still being used to decorate drawing rooms in thousands of homes across the country. Nirmal district in Telangana was once famous as a production center of as diverse things as cannons and toys. While the foundry supplied heavy artillery to the army of the Nizam of Hyderabad, the Naqqash craftsmen and artists brought out exquisite wooden toys and duco paintings under the name of Nirmal Art. 65 families depend on the making of Nirmal Toys in Lingapur village. Due to various reasons, the Poniki wood is disappearing and unavailable, and toy makers are not able to find quality wood in the surrounding areas for making Nirmal toys. As a result, their livelihoods will be in trouble in the near future. In order to address these issues, the district collector and district officials planned to undertake a poniki tree plantation in Lingapur village under MGNREGS.

Execution of the Poniki Tree plantation

The Lingapur Gram Panchayati conducted a grama sabha and discussed the problem of the unavailability of poniki wood and decided to undertake a poniki tree plantation in Lingapur village. All members of the Gram Sabha approved and allocated the land near by Palle Prakruthi vanam Area for the poniki tree plantation. Once the work is identified and approved by the Grama Sabha, the district officials prepare estimations and approve the poniki tree plantation in Lingapur village.

First, the Agriculture Department tested the soil and gave some suggestions to improve the soil for the MGNREGS Field Staff to raise the Poniki Plantation in the Lingapur Gram Panchayat. The poniki saplings are imported from Uttarakhand state. The expenses for digging pits, planting and staking, pesticides, etc, were sanctioned at the rate of Rs 100/- per plant. A total of 680 Poniki plants were raised under the Mahatma Gandhi NREGS. A total of Rs 68000 paid as wage payment through musters under MGNREGS.

680 Poniki plants are raised in 2023-24 F.Y. These plants are grown by facing the natural conditions in this area. Fencing is arranged around the land. No heavy water is required for these plants. When there are no rains, daily, one time water is being given and Maintenance is also. In the F.Y.2024-25, raised Poniki Plants growth reached nearly 2 meters in height.

Impact of Poniki Plantation

Nirmal toys are a part of India’s cultural heritage. The poniki tree plantation helps to preserve and maintain the cultural heritage and traditional craftsmanship, and ensures that the toys are robust and aesthetically pleasing. This activity can contribute to sustaining toy makers’ livelihoods. The use of poniki wood supports local artisans and craftsmen in regions where this wood is available. It provides a source of income and helps to sustain traditional toy-making industries. Using poniki wood helps preserve traditional techniques and designs, keeping cultural practices alive and promoting Indian craftsmanship. Sustainable sourcing of poniki wood is crucial. If the wood is harvested responsibly, it minimises environmental negative impact. However, overharvesting or unsustainable practices can contribute to deforestation and loss of biodiversity.

Overall, using poniki wood for Nirmal toys has a positive impact on quality, economic benefits, and cultural preservation, provided that environmental considerations are managed appropriately. Every financial year, the toy makers are selling toys worth around Rs. 65 Lakhs. The Lingapur villagers and toy makers are very happy with the poniki tree plantation. And they believe that this plantation will support and help to improve their livelihoods in the near future. All the toy makers thanked to all officials who contributed to this successful plantation activity.

Case study 2 on construction of a Farm Pond under the Mahatma Gandhi NREGS

Introduction: Raghupathi Reddy (Job card No. TS-40-001-001/010570) belongs to a marginal farmer, a resident of Dilalpur village, Gajwel mandal, Siddipeta district of Telangana state. He has 5 acres of dry land. Every year, he cultivates a cotton crop on 4 acres, but he is facing a problem in getting a sufficient yield due to a dry spell and a lack of water availability. He is interested in improving the crop yield for more profits. He approached the MGNREGS staff and requested to dig a farm pond on his land. A team of technical staff visited his land and selected a suitable site for the construction of a farm pond. They prepared an estimation and got technical and administrative approval from the concerned officials. The work ID is 3640009001/IF/7182211684. A total of 428 person days were created through this farm pond construction.

Most of the village farmers depend on rain-fed agriculture only. MGNREGS staff decided to improve water availability through the construction of farm ponds in farmers’ own lands, as an individual works under category B of MGNREGS works. Preference will be given to the BPL families in providing category B works. Good water availability sources will be created by constructing farm ponds and percolation tanks so that farmers can give sufficient water for their crops. If we provide water sources under MGNREGS, farmers can get more income from the agricultural crops.

Impact of Farm Pond

In previous days, He has not been satisfied with his income from normal crops such as cotton, maize, etc. Now the farmer who has constructed a Farm Pond is very happy with the additional water source, which is very useful in getting extra crop production and gaining additional income. The farmer is getting a good income and extra benefits after the Construction of Farm ponds on their lands. He is very happy with this Farm Pond asset. He is expecting more yield from his crop in future.

Case study 3 on Construction of a Cattle Shed under the Mahatma Gandhi NREGS

Introduction

Kothapalli is a small village in Peddapalli block, Peddapalli district of Telangana state. Sri. Kalavena Shekar is a poor and small farmer. He depends on agriculture and livestock. He has 4 buffalo, but he does not have a proper shed to protect his livestock. He was struggling to protect his livestock. MGNREGS staff informed him about category B works of MGNREGS for constructing a cattle shed. Based on their information, he requested the Grama Panchayati and MGNREGS staff to provide a cattle shed for protecting his livestock. The Gram Panchayati and EGS staff approved and allocated the cattle shed for him. The EGS staff visited the location and prepared an estimate for constructing a cattle shed. The family members of the beneficiary have contributed to removing small boulders, removing bushes and stumps at the Site before the start of work. Then the structure has been constructed as per the estimations.

Impact of the Cattle Shed

  1. The beneficiary said that this cattle shed gave me great relief in providing a safe and secure shelter for his cattle.
  2. Cattle are very healthy and have no expenses on their health issues, because they are well protected from sunlight, cold weather, and rain.
  3. His income has increased by 20 to 30% more than before.
  4. He has a permanent cattle shed. Now he planned to buy extra buffalo.
  5. He is earning Rs. 40000 per month. His confidence has been boosted now.
  6. By seeing the success of this farmer, most of the farmers of the village are approaching the MGNREGS staff for availing a subsidy on permanent Cattle Sheds. He has become a model to other farmers.
  7. He felt very happy with the construction of the cattle shed under MGNREGS. He said that the scheme changed his way of life economically and socially because of the construction of the Cattle Shed. 100% being given on permanent Cattle Shed under the MGNREGS programme is a great relief to the small and marginal farmers. Without a subsidy, small and marginal farmers cannot afford the construction of a Cattle Shed.
  8. The beneficiary thanked the Department of Rural Development, which is encouraging new technology under the MGNREGS programme with a 100% subsidy.

Case Study 4 on Construction of a Goat Shed under the Mahatma Gandhi NREGS

Introduction: Konda Parvathalu is a Small and Marginal Farmer and lives in Anthergoam Gramapanchayath, Anthergoan mandal, Peddapalli district. He has 70 sheep and 32 Goats, and he was facing difficulties in providing a safe and secure shelter for his livestock during the different weather conditions, including low and high temperature conditions and rainy weather conditions. He was informed that there is a provision to construct a goat shed under category B works of MGNREGS. He approached the gram panchayat and GRS to request a goat shed for his livestock. Based on the beneficiary’s request, the Grama Panchayati and MGNREGS staff visited his home to assess his present condition and identified the location for constructing a goat shed. The technical staff of the MGNREGS prepared a work estimation, got approval from the concerned officials, and started construction of a goat shed in the beneficiary’s land.

Before the commencement of the work                                        during the construction

Impact

The beneficiary stated that by the construction of the Goat shed, Goats and sheep were protected from winter, summer and Rainy season weather conditions. So it is very useful to the sheep and goats in harmful weather conditions. Before, goats and sheep used to get different diseases due to the improper protection of livestock. Some goats and sheep were stolen by the thieves due to a less secure structure and poor protection. The beneficiary said that, due to these reasons, he used to lose income.

Hence, after constructing the Goat shed under MGNREGA, He felt very happy and confident to provide a safe and secure protection environment in his own land. He stated that now he is getting a good income, 20 to 30% increased, due to this goat shed, because sheep and goats are in a very healthy and protective environment, no diseases, no thieves, etc.

Case Study 5 on Construction of a Farm Pond under the Mahatma Gandhi NREGS

Introduction: A Farm Pond constructed under MGNREGS in the field of Mosali Padmamma (Job card No. 11312), Gorita village, Thimmajipeta mandal, NagarKurnool District. The farmer is a small and marginal farmer, and depends on rain-fed agriculture only. He requested the Gram Panchayat to construct a farm pond on his own land. The Gram Panchayat and MGNREGS staff identified and approved the work. A 20Mx20M suitable location was selected for the construction of the Pond. The estimation was generated (Rs. 3, 28,657) for Earth Work Excavation of the main pond for water Storage, treating the catchment area and improving the water quality of the Pond. The total expenditure is Rs 2, 39,445. A total of 1129 person days have been generated.

Impact: During the rainy season, a huge amount of water is drawn into the pond. Due to this, the Bore wells& open wells around the Neighbouring Landa are recharged. The water level In Bore Wells has also improved. Earlier, the groundwater level had dropped to a depth of 100 feet. Farmers said that currently, water is available at a depth of 20 feet in the bore wells and open wells next to the Pond. The standard of living of farmers has increased as the yield of more crops per unit of land has increased, which again has resulted in increased cropping intensity in the village.

Many Farmers in the village had doubts that the Pond would be filled with only a smaller amount of water. Due to heavy rain, Farm Pond has been filled and overflowed. This made the Neighbour Farmers happy. The farmers are surprised and appreciate. This pond is very useful for agricultural purposes, and also for all animals to access drinking water efficiently. The farm pond helped to harvest and conserve rainwater for improving agricultural productivity and production, as a result, farmers’ income can be increased sustainably.

Case study 6 on Mulberry Plantation under the Mahatma Gandhi NREGS

Introduction

Marrivani palli is a small village of the Ellandakunta block, Karimnagar district of Telangana state. The Sericulture Plantation has been taken up in the Kanukula Laxmareddy field, job card no: 30067, work ID is 3620054010/IF/7182094136. The total expenditure is 42,154. The work started on 17th September, 2023 and ended on 1st August, 2024. A total of 171 person-days were created under this activity. High-yielding mulberry varieties are highly suitable for silkworm rearing. These two varieties produce nutritious leaves, which are essential for the good growth of silkworm larvae. The characteristics of these two mulberry varieties are as follows: S-36 1. The leaves are heart-shaped, thick and light green with a glowing nature. In the beverage industry, mulberry leaves are also utilised for preparing herbal tea. The wide range of usage of mulberry in different industries is helpful in the sustainable development of society and makes it an economically important tree.

Need and importance of the activity: The Traditional crops like maize and cotton have high cultivation expenses, including spraying of pesticides and fertilizers, and yield less income. Kankula Laxma Reddy converted to Mulberry Bush cultivation under sericulture to rear silk worms. Per annum, he rears silk worms 5 times and sells in the market, he gets more than 5 times the income compared to cotton and maize. Silk has been called the queen of all fabric materials for thousands of years. It’s become associated with Nursing in a divisible part of Indian culture and tradition. Silk fabric in Asian countries is usually thought of as more ancient and is worn on special occasions and events. There is a variety of alternative beliefs and mythological thoughts that are thought to be connected to silk fabric.

Process of work was implemented: Sericulture is an agro-based industry with its industrial superstructure and low gestation period. First, the beneficiary was motivated by MGNREGS staff to undertake the Mulberry plantation by explaining the advantages and benefits of the Mulberry plantation.

Before commencement of work                                     during the implementation

The beneficiary was convinced and agreed to plant the mulberry plantation. This activity has been implemented through convergence mode, where there is Convergence with the Sericulture department for the construction of a Silk worm.

Impact: Due to the high nutritional value of mulberry leaf, it acts as an excellent feed for domesticated animals, i.e., cattle, goat, buffalo, rabbit, sheep, fish, etc., and increases the production of milk, meat, egg, and fish oil which acts as a source of protein and energy in human diet. The Traditional crops like maize and cotton have high cultivation expenses, including spraying of pesticides and fertilisers, and yield less income. Kanukula Laxmareddi started growing Mulberry cultivation to rear silk worms. Per annum, he rears silk worms 5 times and sells in the market, he gets more than 5 times the income compared to cotton and maize. The beneficiary said that the Mulberry cultivation is very profitable and guarantees income, so there is no risk of losing income from agriculture. He is getting a good income from the Cultivation of Sericulture (Mulberry bush plantation).

After completion                            Photographs that show the outcome

CONCLUSION

Category B assets under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) play an important role in enhancing rural livelihoods in Telangana. These assets, particularly those related to improving land productivity, improving livelihoods, promoting livestock development, horticulture, sericulture, and water conservation interventions, have emerged as powerful tools not only for employment generation but also for promoting long-term livelihood security and resilience among marginalised and smallholder communities.

Different types of individual assets create different kinds of benefits for the beneficiaries of the asset. The main impact of water conservation and water harvesting structures helped in increasing crop area, crop diversification, and productivity, thereby increasing the agricultural income of the individual asset beneficiaries. The livestock infrastructure assets contributed to providing safe and secure shelter, enhancing the income of the beneficiaries, and increasing the availability of high-protein, nutritious food to the beneficiaries. Horticulture plantation can provide sustainable income sources for the beneficiaries.

Evidence from the field observations shows that when Category B assets are planned in convergence with line departments and local resource management priorities and community needs, they contribute meaningfully to sustainable agricultural productivity, livelihoods improvement, reduced seasonal distress, and increased income diversification. More importantly, they empower vulnerable households by creating durable infrastructure tailored to their landholdings, thereby promoting asset ownership by the community and socio-economic inclusion. However, realising the full potential of Category B assets requires strengthening participatory planning, convergence with line departments and DAY- NRLM, and rigorous monitoring to ensure asset quality and functionality. Institutional support and awareness at the grassroots level remain critical to maximise the benefits of category B assets. In order to maintain the sustainability of the asset, strong community ownership is required, and it enhances the asset quality and durability. The overall contributions of category B works under MGNREGS were enhanced income and livelihoods to the beneficiary households and greater food security to the rural households. These category B assets helped rural households in converting from wage employment to self-employment.

REFERENCE

  1. Annual Master Circular 2024-2025, Ministry of Rural Development
  2. Chambers, R. & Conway, G. (1992). Sustainable Rural Livelihoods: Practical Concepts for the 21st Century. IDS (cited in DFID materials).
  3. Pankaj, A. and Bhattacharya, M. Income and livelihood promotion through individual assets under MGNREGS. Economic and Political Weekly, 57 (4). ISSN 2349-8846
  4. Shahzad, M. F. & A. Abdulai. (2019). Production risk management in agriculture and farm performance in rural Pakistan: role of adaptation to climate change. Selected Paper prepared for presentation at the 2019 Agricultural & Applied Economics Association Annual Meeting, Atlanta, GA, July 21 – July 23. https://www.researchgate.net/profile/Muhammad-Shahzad-
  5. Sujakhu N M et al., ‘Assessing the Livelihood Vulnerability of Rural Indigenous Households to Climate Changes in Central Nepal, Himalaya’, Sustainability, vol. 11(10), p. 2977, MDPI AG, 2019.www.nrega.nic.in

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