This is a study of: (a) the implementation process, mechanism, difficulties and; (b) impact of the scheme on the beneficiaries and communities vis-à-vis major objectives of the Act. The study is based on field work (survey) of 9 districts (6 from Bihar and 3 from Jharkhand), 30 villages (18 from Bihar and 12 from Jharkhand), 900 households, two-thirds beneficiaries and one-third non-beneficiaries (540 from Bihar and 360 from Jharkhand) and 37 worksites. This was also a resurvey of 102 beneficiary households in Bihar. This study examines the impact of the scheme on individual beneficiaries in terms of income consumption effects, changes in migration and indebtedness and impact of the community assets on local economy, wage rate and agrarian conditions.