NEW DELHI/CHANDIGARH: The Punjab government, led by the Aam Aadmi Party, has surprised many by notifying the new rural employment scheme, despite its past opposition to the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025. The move brings the total number of states and Union Territories (UTs) that have adopted this scheme to 19, which includes seven northeastern states.

The VB-G RAM G Act was passed by the Parliament in December of last year, amidst significant protests from opposition parties. Scheduled to take effect on July 1, it will replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) framework. An official from the Rural Development ministry expressed optimism that many more states will follow suit in notifying their respective state schemes soon, as preparations are reportedly at an advanced stage.

States That Have Adopted the Scheme

Besides Punjab, the other states and UTs that have already implemented the scheme include Jammu & Kashmir, Ladakh, Himachal Pradesh, Bihar, Maharashtra, Rajasthan, Chhattisgarh, Odisha, Andhra Pradesh, Kerala, and all seven northeastern states: Arunachal Pradesh, Assam, Manipur, Mizoram, Sikkim, Tripura, and Nagaland. Puducherry has also issued a notification for the scheme.

Following Punjab’s announcement, the Congress party in Punjab has sharply criticized the move. Last December, the Bhagwant Mann government had convened a special one-day session of the Punjab Assembly where a resolution was passed unanimously against the VB-G RAM G Act, accusing the BJP-led central government of depriving poor and Dalit laborers of their livelihoods. The resolution had called for the restoration of MGNREGA.

Reactions from Other States

Earlier this week, Karnataka, governed by Congress, announced its decision to implement the new scheme, even as it prepares to challenge the law in the Supreme Court. Eshwar Khandre, Karnataka’s Minister for Rural Development and Panchayati Raj, stated that the decision was made in the “interest of rural people, women, and the marginalized.” He also emphasized that the state government will continue its struggle with the Union government over funding and other contentious issues.

In another development, Telangana, also under Congress rule, is planning consultations with other non-BJP governed states, including Karnataka and Kerala. This aims to explore whether these states would be interested in pursuing a common legal strategy against the new law.

Key Features of the New Framework

Once fully rolled out, the new legislation will increase the statutory guaranteed wage employment from the previous 100 days under MGNREGA to 125 days per financial year for rural households. The new framework alters funding arrangements to a 60:40 sharing model between the Centre and states, with a 90:10 split for northeastern and Himalayan states, and 100% central funding for Union Territories without legislatures.

The law highlights four thematic focus areas: water security, core rural infrastructure, rural livelihoods, and special works aimed at addressing extreme weather events. An interim list of 318 permissible works has been announced, covering various activities such as natural resource management, irrigation, rural connectivity, and climate resilience initiatives.

Of note, two of the four thematic focus areas have been included for the first time in this scheme. Works that will now qualify under ‘livelihood-related infrastructure’ include cold storage facilities, skill development centers, and agricultural produce processing units. Special initiatives to mitigate extreme weather events will involve the construction of embankments, flood diversion channels, retaining walls, multipurpose disaster relief centers, and forest fire management initiatives.