In response to increasing unemployment rates due to the COVID-19 pandemic, Jharkhand is gearing up to introduce a 100-day employment scheme for urban unskilled workers. This scheme draws parallels with the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Earlier on, India’s government had unveiled the ‘Garib Kalyan Rojgar Abhiyaan’, a rural public works scheme aimed at creating livelihood opportunities for returning migrant workers and rural citizens. In contrast, Jharkhand’s proposed scheme caters to the urban poor and is thereby recognized as being unique and timely.
Understanding the Mukhyamantri SHRAMIK Yojana
Officially named the Mukhyamantri SHRAMIK (Shahri Rozgar Manjuri For Kamgar) Yojana, the scheme seeks to boost livelihood security of the urban poor. These individuals will be prioritized in existing schemes, and if they cannot be accommodated, special schemes will be formed for them with separate funds under Urban Local Bodies (ULBs).
Provisions of the Scheme
Under the new scheme, workers can demand work verbally or written, for a minimum of seven days and a maximum of 100 days. Female workers with a child of five years or less will be employed and paid the minimum wage. Additionally, all workers will receive basic amenities, medical facilities, registration, and social security. Work assignments will be based on demand and divided into various categories like cleanliness, water harvesting, tree plantation, public works construction or repair, and managing shelter homes, to name a few.
Wage Structure and Swift Transfer of Earnings
Workers will be paid the minimum wage as set by the state government and wages are expected to be 40% higher than those offered by the MGNREGA programme in the state. Wages will be transferred to workers’ bank accounts promptly within seven days of work completion, with a guarantee of payment within 15 days of work completion at the latest.
Provision for Unemployment Allowance
Similar to MGNREGA, the SHRAMIK Yojana will offer an unemployment allowance. Those who have demanded work but did not receive it within 15 days will be eligible for an unemployment allowance.
Registration and Implementation of the Scheme
The urban poor will be registered under the scheme and given job cards. A dedicated website for the scheme is also in the works, set to function similarly to MGNREGS. The Yojana will be carried out by the urban development and housing department via the state urban livelihood mission, with municipal commissioners, executive offices, or special officers of municipal bodies appointed as nodal officers.
Background and Necessity of the Scheme
Jharkhand’s urban areas are home to approximately 13-14 lakh households, with around 15% working as casual labourers. The extended lockdown has adversely impacted an estimated 25% of these urban households. Adding to this is the influx of returning migrant workers, creating a pressing need for this employment scheme. A skills survey of 2.5 lakh workers revealed that 30% are unskilled labourers.
Addressing Urban Poverty
Traditionally, poverty alleviation schemes focused on rural regions, stemming from a belief that poverty is primarily a rural issue. However, there’s a significant amount of urban poor requiring job guarantees similar to their rural counterparts.
Examples from Other States
Odisha recently rolled out a Rs 100-crore Urban Wage Employment Initiative. Kerala operates the Ayyankali Urban Employment Guarantee Scheme (AUEGS), guaranteeing 100 days of unskilled manual work to urban households. Also, the ‘Yuva Swabhiman Yojana’ in Madhya Pradesh provides employment for both skilled and unskilled urban youth.
Way Forward
State interventions like these are a welcome change, providing urban dwellers with a right to work and ensuring their right to life under Article 21 of the Constitution. Previous initiatives such as the Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have primarily centered around larger cities. An urban employment guarantee programme like the proposed one can help enhance incomes, stimulate local demand, improve public infrastructure, spur entrepreneurship, develop worker skills, and foster a sense of shared public goods. This is the right time for an employment guarantee programme in urban India.