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Punjab's Reversal on National Rural Jobs Scheme Sparks Political Clash and Worker Protests

Published on: 20 Jul 2026, 01:58 AM
Punjab's Reversal on National Rural Jobs Scheme Sparks Political Clash and Worker Protests

The Bhagwant Mann-led Aam Aadmi Party (AAP) government in Punjab has reversed its earlier opposition to the Centre’s new rural employment scheme, Viksit Bharat Guarantee for Rozgar and Aajeevika Mission-Gramin (VB G-RAM-G), which replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on July 1. This reversal has triggered a political row, with opposition parties accusing the state government of hypocrisy, while an indefinite strike by MGNREGA workers, terminations, and arrests of union leaders have further escalated tensions.

The Congress and Shiromani Akali Dal (SAD) have criticised the Mann government for its U-turn. Senior SAD leader Bikram Singh Majithia called the termination notices issued to striking workers “the government’s most shameful, anti-employee and authoritarian act.” He questioned why the Punjab government failed to arrange its 10% share of MGNREGA funds when the Centre provided 90%, and accused the government of shifting blame. Punjab Congress president Amrinder Singh Raja Warring condemned the arrests and said, “Police intimidation cannot silence workers fighting for their rights.”

Employee unions have also lashed out. The Mazdoor Mulazam Sangharsh Committee noted that the state assembly had passed a resolution against VB G-RAM-G in December 2023, but now the government is asking Gram Sabhas to pass resolutions in its favour. Union leaders alleged that salaries have been withheld for nearly six months to pressure employees into accepting the new arrangement. They also criticised the government for using police force, including tear gas and water cannons, to disperse protesters on July 15.

The controversy began after the Punjab government initially opposed the central scheme, but later moved to implement it amid a strike by over 2,100 contractual MGNREGA workers since June 1. The workers demand regularisation and release of pending salaries. On July 10, the Rural Development Department directed deputy commissioners to use State Rural Livelihood Mission staff to replace striking employees. Subsequently, 52 employees were terminated, and several union leaders were arrested, including the Ludhiana Additional Project Officer.

The Bharatiya Janata Party (BJP) has largely remained silent on the matter, despite being the party in power at the Centre. The political fallout continues as the Mann government faces criticism from multiple fronts while trying to manage the transition to the new scheme.

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