The decision was taken by Rural Development Minister Nitin Gadkari in response to widespread criticism by MPs and people's representatives at the local level that MNREGA has become a source of corruption and that no productive assets are being created through the rural job scheme.
According to the ministry, 50 per cent of works under MNREGA will be done for constructing check dams, de-silting of traditional water bodies, minor irrigation tanks and canals.
Increase in the skilled percentage from 40 per cent to 49 per cent is enabling provision which empowers states, if they so wish to do part of work of check dams, minor irrigation tanks with machinery, while doing balance 51 per cent on muster payment to labour.
Gadkari said that if states wish to retain the skilled proportion to 40 per cent, they are free to do so.
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This change was widely welcomed by MPs and expert water shed NGO activists like Rajendra Singh and Popat Rao Pawar, the release said.
The minister has also directed the Rural Development Ministry that all payments and fund transfer to states should be made on E-payment platform and on a just in time basis so that wage payment are not delayed beyond one week in any case.