Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has indicated that the state government may decline to accept the Central government's proposed VB-G RAM G scheme, which is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Speaking on Tuesday, Sukhu asserted that the scheme, in its current form, is not aligned with the interests of the state and its approximately 12 lakh workers.
Concerns over wages and employment targets
The Chief Minister highlighted that the introduction of VB-G RAM G could deal a major blow to rural employment in Himachal. Under the proposed provisions, the wage rate is fixed at Rs 247 per day in non-tribal areas and Rs 309 per day in tribal areas. An official spokesperson stated, “The state government believes that these rates are inadequate, considering the state’s geographical conditions, inflation and cost of living.” Consequently, Himachal will seek a reasonable increase in wages from the Centre.
Sukhu also emphasized that the employment guarantee scheme must remain demand-driven, as was the case under MGNREGA. He insisted that work should be provided according to need and not be restricted by predetermined limits. Notably, during 2024–25, approximately 395 lakh man-days were generated under MGNREGA in Himachal. However, for 2025–26, the Central government has allocated a target of only 250 lakh man-days — a sharp reduction that could adversely affect rural employment opportunities.
High-level committee formed to study scheme
The Chief Minister directed officials to strongly present Himachal’s concerns before the Centre and request advance funding to ensure that salary payments are not disrupted. He also ordered the constitution of a high-level committee to conduct a detailed study of all aspects of the VB-G RAM G scheme and prepare recommendations in the interest of the state.
The committee will be chaired by Rural Development and Panchayati Raj Minister Anirudh Singh. Its members include Panchayati Raj Department Secretary C. Palrasu and Director Raghav Sharma. The committee is required to submit its report to the Chief Minister by June 29, based on which the state government will decide how to proceed with the implementation of the VB-G RAM G scheme.
Centre's deadline and budget implications
The Central government has initiated the process of replacing MGNREGA with the VB-G RAM G scheme and has directed all states to notify the new scheme by June 30. The Centre has made it clear that only those states that notify the new scheme will receive budget allocations. This places Himachal in a difficult position, as rejecting the scheme could result in a loss of central funding for rural employment.
Despite this pressure, Sukhu remains firm that the state's interests must be protected. The Chief Minister's stance reflects growing discontent among several states regarding the proposed changes to the rural employment guarantee framework.
