RLEGP was introduced on August 15, 1983, with the objective of (a) improving and expanding employment opportunities for the rural landless with a view to providing guarantee of employment to at least one member of every landless household up to 100 days in a year and (b) creating durable assets for strengthening the infrastructure so as to meet the growing requirements of the rural economy.
An outlay of Rs. 500 crores to be fully financed by the Central Government was provided under this programme in the sixth Plan. The implementation of the programme was entrusted to the states and union territories, but they were required to prepare specific projects for approval by a central committee.
During 1983-85, the central committee approved 320 projects with an estimated cost of Rs. 906.59 crores. The target for employment generation in 1983-84 and 1984-85 was fixed at 360 million many days against which 260.18 million many days of employment was actually generated.
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Mid-way through the sixth Plan, the RLEGP was revamped. It started with the dual objective of expanding employment opportunities in the rural areas and providing sharper focus on the landless labour households which constitute the hardcore of the people below the poverty line.
Efforts are being made to implement a limited guarantee for providing 80 to 100 days employment to the landless labour households through this programme.
In the seventh Plan an outlay of Rs. 1,250.81 crores has been provided for NREP in the Central Sector which will be matched equally by the states. An outlay of Rs. 1,743.78 crores has been provided in the seventh Plan for RLEGP which will be borne entirely by the Centre.
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Based on the average wage of Rs. 8.61 per day as in 1984-85 and a wage material cost ratio of 50:50, a total employment of 1,445 million many days under NREP and 1,013 million many days under RLEGP is likely to be generated during the seventh Plan period at an average rate of around 290 million many days and 200 million man days per annum respectively.