Centre to launch job scheme replacing MGNREGA from Andhra Pradesh on Jul 1
This story was originally published at 22:08 IST on 16 June 2026
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NEW DELHI – The Centre will launch the new rural jobs scheme, Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), from Andhra Pradesh on Jul. 1, Union Rural Development Minister Shivraj Singh Chouhan said in a release. The Centre has provided a record interim amount of over INR 77 billion to Andhra Pradesh under the scheme.
The Centre had earlier notified that the scheme's launch date would be Jul. 1. With the scheme, abbreviated as VB-G RAM G, coming into force, the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, shall stand repealed on the same date, according to an earlier notification. Under the new framework, every rural household willing to undertake unskilled manual work is promised 125 days of employment in a year, up from 100 days under MGNREGA.
The bill to replace MGNREGA was passed in December. The Union Budget has allocated a record INR 956.92 billion to implement the scheme in the financial year 2026-27 (Apr-Mar). With contributions from states, the total outlay is expected to exceed INR 1.51 trillion.
The scheme is designed to be implemented as a centrally-sponsored scheme operationalised by state governments, with a cost-sharing pattern of 60:40, 90:10 for northeastern and Himalayan states, and 100% central funding for Union territories without legislatures. Under the MGNREGA, the entire financial burden of the employment guarantee scheme was borne by the central government.
"All works under rural development schemes have almost been completed with geo-tagging and a face recognition system to ensure transparency and eliminate any possibility of corruption," Andhra Pradesh Deputy Chief Minister Pawan Kalyan said after meeting Chouhan. During the meeting, it was also mentioned that coffee plantation activities have been included under the scheme in Andhra Pradesh. End
Reported by Afra Abubacker
Edited by Rajeev Pai
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