ADILABAD: The Andhra Pradesh Rural Employment Guarantee Scheme (REGS) seems set to create a negative impact on the labour-intensive field of construction. Just within a few days of going operational, it is apparent that the REGS has caused labour shortage in Adilabad resulting in a sharp hike in wages.

The REGS saga unfolds every morning at Netaji Chowk, the local `labour adda,' where construction labourers hang out from 7 to 9 a.m. every morning waiting to be hired. Now, the labourers stay put even beyond 10 a.m. refusing to work for the regular, earlier rate of wages.

"About 15 days ago I had hired labourers to demolish my old house at Rs. 80 a day per labourer. Now, I want hands to dig pits for raising pillars for my new house and I find the men unwilling to come at the old wage rate,'' lamented Srihari, who is constructing his house at the far end of Teachers Colony.

(The going rate was Rs. 70 per foot of earth removed from a pit measuring 6 x 6. Two labourers can earn at least Rs. 100 each.)

G. Vilas of Bheemsari village in Adilabad mandal heads the group of five labourers who declined to work for Srihari. "Under the REGS, we will have to work in the village itself.

Every day we need not cycle the 4 km distance all the way to Adilabad.

The work will also not be so hard. If we get at least Rs. 120 here we can work", he said trying to justify his stand.

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