BENGALURU: The state cabinet on Friday condemned the Centre’s move to repeal MNREGA and replace it with VB-G RAM G Bill, alleging that it curtailed the powers of gram panchayats and centralised the employment guarantee scheme.
The state government has also chalked out a plan to reject the the new Bill by carving out its own employment guarantee scheme by retaining the name of Mahatma Gandhi, it is said. During 2004, the state had a similar plan proposed to then UPA chairperson Sonia Gandhi, which she ensured it transformed into MNREGA to apply for the entire country, sources said.
Siddaramaiah is likely to make an announcement on this on Saturday, the sources said. It is still not clear whether the state will let go of 60% of funds from the Centre, which was 90% earlier under MGNREGA.
Law and Parliamentary Affairs Minister HK Patil told the media that the Centre has uprooted the very concept of Gram Swaraj and Panchayat Raj Act. “Under MNREGA, a range of works such as building cattle sheds, school compound walls and playgrounds was implemented through panchayats. The Centre’s VB-G RAM G ploy is to centralise the decision, as panchayats have no powers. This is to benefit big contractors,” he alleged.
The cabinet approved a revised estimate of Rs 16,876 crore against the Bengaluru Satellite Transport Project (BSTP) phase II and phase IV and to bear Rs 3,600 crore cost against land acquisition. To implement the project which was in progress to lay four-lane tracks, the railway ministry will give Rs 357 crore and the state will bear 50 per cent of the cost for the rolling stocks for which Rs 2,135 crore is required.
It also approved a compensation to land owners against 948 acres, 14.5 guntas as per the 1894 land acquisition act for the Bengaluru Business Corridor (BBC) -- erstwhile Peripheral Ring Road as per the Oct.17, 2025 government order. The cabinet also approved to construct 100 buildings of veterinary institutions at Rs 50 crore with NABARD grants.