Daijiworld Media Network - Bengaluru

Bengaluru, Jan 4: Karnataka has strongly rejected the Centre’s move to repeal MNREGA and replace it with the VB-G RAM G Bill, describing it as an attack on grama panchayat powers and the principles of rural self-governance.

The state cabinet on Friday condemned the legislation, which critics say centralises the employment guarantee scheme and benefits corporate contractors at the expense of villagers.

Chief Minister Siddaramaiah expressed outrage, accusing the Narendra Modi-led government of encroaching on village authority and undermining rural livelihoods.

Speaking at a press conference, he said that about 20 years ago, under the then prime minister Dr Manmohan Singh, MNREGA was implemented to provide employment rights and economic security to the poor. Now, the law has been renamed as the VB-G RAM G Act, and the Centre did not consult state governments or the public before making such a significant change.

He vowed that Karnataka would continue its fight against the Modi government until the original MNREGA law is restored, stating that the employment rights of women, Dalits, and tribal communities, as well as Panchayat self-governance, must be reinstated.

Siddaramaiah highlighted the socio-economic impact of the changes. Under the old MNREGA framework, workers were guaranteed 100 days of employment per year, provided locally. Panchayats implemented projects such as cattle sheds, school compound walls, and playgrounds, which created local assets. Women, Dalits, and tribal communities had protected employment rights, and the Centre funded 100% of the programme.

The new legislation, according to Siddaramaiah, strips these safeguards. Employment is now restricted to notified areas, seasonal work is limited, wage flexibility has been removed, and funding is split 60:40 between the Centre and the states, placing a heavier financial burden on state governments.

Law and parliamentary affairs minister H K Patil said that the Centre has uprooted the very concept of Grama Swaraj and the Panchayat Raj Act. He explained that decision-making is centralised, panchayats have no powers, and big contractors benefit at the expense of villagers.

Siddaramaiah warned that the VB-G RAM G Act would lead to higher unemployment, reduced participation of women in rural work, greater stress on Dalit and tribal families, and a deterioration of rural livelihoods. Panchayats risk being reduced to mere implementing bodies, he said.

In response, the state government has outlined plans to launch its own employment guarantee scheme, retaining the Mahatma Gandhi name, effectively bypassing the central law.

Sources noted that Karnataka had proposed a similar scheme in 2004 to then UPA chairperson Sonia Gandhi, which was later transformed into MNREGA for nationwide implementation.

Chief Minister Siddaramaiah is expected to make an official announcement on the new state scheme soon. However, it remains unclear whether the state will accept 60% of central funding, down from 90% under MNREGA, for the new scheme. The move, however, underscores Karnataka’s insistence on protecting rural workers’ rights and Panchayat autonomy.

According to Siddaramaiah, there are 121.6 million MNREGA workers in India, including 62.1 million women, with Scheduled Castes at 17% and Scheduled Tribes at 11%. Karnataka alone has 7.118 million MNREGA workers, with 3.675 million women, representing 51.6% of the workforce. He added that by overturning Manmohan Singh’s pro-people law, the Centre is favouring corporate interests while undermining the rural economy.

In other business, the state cabinet approved a revised estimate of Rs 16,876 crore for the Bengaluru Satellite Transport Project Phases II and IV, including Rs 3,600 crore for land acquisition. The Railway Ministry will provide Rs 357 crore, while the state will cover 50 per cent of rolling stock costs, which requires Rs 2,135 crore. Compensation for landowners covering 948 acres and 14.5 guntas was approved under the 1894 Land Acquisition Act for the Bengaluru Business Corridor, previously the Peripheral Ring Road, as per the government order of October 17, 2025.

The cabinet also approved the construction of 100 veterinary institution buildings at a cost of Rs 50 crore, funded through NABARD grants.