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NREGS proves to be nemesis of textile sector
May '11
One of the most successful employment generation schemes from the government has put the textile sector in disarray.

Whether it is Ludhiana or Surat, the businessmen from these cities are wring their in hands in despair as workers from far-flung states are leaving their jobs and not returning back from their home-towns.

The main reason for the flight of these workers is National Rural Employment Guarantee Scheme or NREGS, which pays between Rs 100-150 for just seven hours work.

On the other hand, these workers toil for 12 hours a day in the textile factories and earn between Rs 8,000-10,000 per month. But their living conditions are pitiable and also end up spending a considerable amount on housing, food and medicines.

Despite the low wages paid by the NREGS compared to what they earn in the textile sector, the workers prefer the former as it lets them stay with their families as well as work in their own farms.

Most of these migrant workers hail from states like Uttar Pradesh, Bihar and Orissa, where the scheme has been implemented very well.

Fibre2fashion News Desk - India

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