Rs 54cr NREGA dues stall works, distress farmers in Dharwad

Dharwad: The Centre–state differences over the revamped Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have begun to directly impact implementation in Dharwad district, with pending payments stalling works and pushing both suppliers and beneficiaries into financial stress.The Union govt's decision to rename and restructure the scheme as Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM-G) has triggered delays, as the Karnataka govt has raised objections to the revised funding pattern and provisions.On the ground in Dharwad, the fallout is visible. Material suppliers in the district are yet to receive nearly Rs 54 crore (Rs 51cr material cost and Rs 3cr labour wages) for works already executed under the scheme. With payments pending for months, many have stopped supplying materials, bringing ongoing works to a halt.Officials in the Dharwad Zilla Panchayat admit the strain. "Suppliers are facing difficulties due to delayed payments. The process to clear pending bills is under way," a senior official said.The impact is equally severe on rural households. Individual works such as cattle sheds, farm ponds and bunds - which are crucial for small and marginal farmers - have been hit.Mahantesh, a farmer from the district, said he constructed a cattle shed under the scheme by borrowing money, expecting timely reimbursement. "I took a loan and completed the work. The payment has not been made yet, and my debt burden is increasing," he said.Community works across villages, including water conservation structures and rural infrastructure projects, have also slowed down considerably, with no fresh works being taken up in recent weeks.The uncertainty is also affecting workers. With delays in wage payments and 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, 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.
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