The ministry also said that in the 2006-07 financial year a household availed of 44 days of employment on an average.

The ministry was reacting on Tuesday to news reports that the scheme has proved an utter failure and a disaster.

A statement issued by the rural development ministry said it had "requested the comptroller and auditor general (CAG) to undertake performance audit on the implementation of NREGS."

It said: "The CAG has submitted the draft report which the ministry has shared with the state governments. States have to discuss the draft report with the CAG before it can become a final report.

"In phase one 21 million households were provided employment. Although the NREGS is not confined to the poor, the number of families provided employment in 2006-07 was about 128 percent of below poverty line (BPL) households and approximately 56 percent of the households were issued job cards."

The ministry also claimed: "In the preceding year 2.2 million households availed of 100 days of employment".

It added: "Hundreds days indicates the upper limit of guaranteed employment that may be availed of. It does not constitute a target and the number of days of employment availed is also dependent on the workers' demand."

The rural development ministry claims that in the said period "Rs.58.34 billion, that is 66 percent of available funds, were spent on workers' wages."

Criticising news reports that said NREGS was a failure, the ministry said: "Only negative statistical data is being reported out of context and without proper understanding of the programme, its challenges and the visible contribution it has made in generating employment in the rural areas specially for the women who constitute 40 percent of the workforce. This defeats the very effort to bring in transparency and accountability from the very beginning of the programme."