New Delhi: In a major policy shift aimed at strengthening rural employment and village infrastructure, the Central government on Monday officially notified the implementation of the ‘Viksit Bharat – Guarantee for Employment and Livelihood Mission (Rural)’ or VB–GRAM G Act, which will come into force across India from July 1, 2026.
The new legislation will replace the existing rural employment framework with an expanded structure focused on livelihood generation, infrastructure development, and long-term rural sustainability. The government said the scheme is expected to benefit rural labourers, economically weaker families, women, self-help groups, and farmers across the country.
Announcing the rollout in Bhopal, Minister of Agriculture and Farmers Welfare Shivraj Singh Chouhan said the new programme marks a significant milestone in India’s rural development journey. It is aimed at improving income security while creating large-scale employment opportunities in villages, he noted.
One of the biggest changes under the new Act is the increase in guaranteed employment from 100 days to 125 days annually for rural workers seeking employment, Chouhan said. The revised provision will become effective from July 1, according to an official statement.
The Union minister clarified that until the new framework becomes operational, all provisions under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will continue to remain in force. He added that all pending projects under the current system would be completed before the transition to the new scheme.
According to the Centre, consultations with state governments are currently underway to finalise the operational rules of the Act. States have been given a preparation window of up to six months to complete implementation arrangements. However, the government stated that workers would continue receiving employment opportunities during the transition period without disruption.
Chouhan further said that under the leadership of Prime Minister Narendra Modi, the Union Budget has reportedly allocated over Rs 95,000 crore for employment generation through the scheme, while combined allocations by the Centre and states are expected to exceed Rs 1.51 lakh crore.
The government said wage payments under the scheme would be made directly into bank or post office accounts through Direct Benefit Transfer. Authorities aim to process wage payments within three days, while ensuring all dues are cleared within a maximum period of 15 days.
Chouhan further stated that workers would be eligible for compensation if payments are delayed beyond the prescribed timeline. In addition, unemployment allowance provisions would remain applicable if employment is not provided after demand is raised.
The scheme is also expected to significantly expand rural infrastructure projects. Proposed works include water conservation initiatives, rural roads, bridges, culverts, school buildings, Anganwadi centres, and infrastructure linked to livelihood activities.
The union minister further said infrastructure support for Self-Help Groups and Farmer Producer Organisations, including work sheds and operational facilities, may also be developed under the programme. Disaster mitigation projects, such as retaining walls in flood-prone or riverside villages, are also expected to be included.
