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The Hindu
The Hindu
National
The Hindu Bureau

Andhra Pradesh among top states in implementing Aadhaar-based payment systems

Andhra Pradesh is one of the top states in the implementation of Aadhaar-based payment systems (ABPS) with 99.1% of all registered workers and 99.8% of active workers eligible for it.

With only 1.07 lakh registered and 0.2 lakh active workers remaining to be eligible, the State stands out a leader in ABPS compliance nationwide, says a report titled ‘Navigating MGNREGA: Assessing Implementation and Impact in AP (2019-2024)‘ by the public policy watchdog group LibTech India.

In contrast, national-level figures show a lower eligibility rates, with only 69% all registered workers and 92% active workers being eligible for the ABPS. As many as 7.9 crore registered workers and 1.04 crore active workers are yet to comply with ABPS requirements.

The flip side

Despite the State’s remarkable performance in ABPS eligibility, however, the mandatory implementation of the ABPS has brought about authentication hurdles and exclusionary practices, it says. These challenges have exacerbated administrative complexities and hindered workers’ access to timely wages.

Moreover, the report offers insights into the employment landscape shaped by the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Andhra Pradesh over five years.

In line with national trend, a notable 24.6% decrease was recorded in registered households from 89.76 lakh in financial year (FY) 2019-20 to 67.71 lakh in FY 2023-24, with occasional increases during the COVID-19 period.

Despite this decline, there has been a 15.2% increase in households engaged in work—from 40.4 lakh to 46.55 lakh. However, there has been a consistent decline in the number of employed workers since FY 2020-21.

Moreover, there has been a significant 27.6% rise in person-days, rising from 2,002.25 lakh person-days in FY 2019-20 to 2,554.88 lakh person-days in FY 2023-24.

Aligning with national trends, SC and ST populations in A.P. secured a larger share of the NREGA employment, reflecting the State’s commitment to inclusivity. Women’s participation consistently exceeded their demographic share, emphasising their crucial role in the workforce.

Furthermore, the report discusses the impact of technological interventions, particularly those of the National Informatics Centre (NIC). These led to the removal of worker-friendly features and centralisation of control. Discontinuing summer allowances to workers and the introduction of dual muster system were among the changes contributing to the challenges faced by workers and local officials, the report says.

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