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

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.