Dharwad: The ongoing friction between the central and state governments over the restructured Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has started to directly affect implementation in Dharwad district. Pending payments have stalled ongoing works, causing financial strain for both suppliers and beneficiaries.
Scheme Restructuring Sparks Delays
The Union government's decision to rename and restructure the scheme as Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM-G) has led to delays. The Karnataka government has raised objections to the revised funding pattern and provisions, resulting in a deadlock.
On the ground in Dharwad, the fallout is evident. Material suppliers in the district are yet to receive nearly Rs 54 crore (Rs 51 crore for material costs and Rs 3 crore for labour wages) for works already executed under the scheme. With payments pending for months, many suppliers have stopped providing materials, bringing ongoing works to a halt.
Officials Acknowledge Strain
Officials in the Dharwad Zilla Panchayat admit the situation is challenging. A senior official stated, "Suppliers are facing difficulties due to delayed payments. The process to clear pending bills is under way."
Impact on Rural Households
The impact is equally severe on rural households. Individual works such as cattle sheds, farm ponds, and bunds – crucial for small and marginal farmers – have been hit hard. Mahantesh, a farmer from the district, shared his plight: "I took a loan and constructed a cattle shed under the scheme, expecting timely reimbursement. The payment has not been made yet, and my debt burden is increasing."
Community works across villages, including water conservation structures and rural infrastructure projects, have also slowed down considerably. No fresh works have been taken up in recent weeks.
Workers Affected Across Karnataka
The uncertainty is also affecting workers. With delays in wage payments and a lack of new projects, many job card holders in Dharwad are gradually moving towards other forms of employment.
Across Karnataka, the situation is similarly worrying. Of the Rs 775.6 crore material cost incurred under the scheme in 2025–26, over Rs 604 crore remains unpaid. In terms of wages, Rs 41.8 crore is still pending out of Rs 2,468 crore due.
Dharwad Faces Multi-Level Slowdown
Dharwad, which has relied on the scheme for both wage employment and rural asset creation, is now witnessing a slowdown at multiple levels – from halted worksites to rising distress among farmers and suppliers.
Unless the financial bottlenecks are resolved quickly, local stakeholders fear that the upcoming agricultural season and rural livelihoods in the district could be adversely affected.
