In a massive programme, the National Rural Employment Guarantee Act (NREGA) was launched on 2 February 2006 by Prime Minister Manmohan Singh and National Advisory Council chairperson Sonia Gandhi in Bandlapalli, Anantapur District, Andhra Pradesh. Describing the launch as a landmark in removing poverty from the face of the nation, the Prime Minister assured that the NREGA would create new rural infrastructure and better road connectivity, school buildings and water supply to the villages. According to the government, the NREGA clearly focuses on the poorest of the poor, provides livelihood security and reduces distress migration. It will help get rid of the scourge of poverty, disease and indebtedness.

The objective of the NREGA is to ensure local employment to every rural household for 100 days in a financial year. The launch will mean the notification of the Act in 200 districts identified for the implementation of first phase. The Planning Commission chose 200 districts for the first phase, based on certain criteria of backwardness.

To enlist for employment under the Act, the adult members of every household should submit their names, age, sex and address to the Gram Panchayat for registration. This registration will be valid for five years and is open throughout the year. The Gram Panchayat will verify the details submitted by the household for registration. Later, these people will be issued a job card with photographs of the registered member. Bearing a unique registration number, this card will be valid for five years.

To get employment, the registered adult should apply on a plain paper in writing to the Gram Panchayat or Programme Officer (at the Block level) and ask for a dated receipt of the application. The application should be submitted for at least 14 days of continuous work. The application can also be submitted in advance, indicating the date from which he/she wants employment under the Act. Employment will be provided to the individual within 15 days of submitting the application; if employment is not provided, the applicant is entitled to receive unemployment allowance as per the laid down terms and conditions.