This article is an attempt to highlight issues around the implementation of NREGA with a focus on its institutions, governance and innovations. The main proposition considered is that institutions and governance play an important role in determining the functioning of NREGA, and the trajectory of its success. The attempt is to identify the conditions for success (or failure) in the process, to draw lessons for mid‐course corrections to the programme. This includes examining political, administrative and bureaucratic dynamics that may ensure better realisation of the ‘right to work’. Based on a field study in three Indian states, it was found that differential impacts and achievements of the NREGA are related to variations in the commitment of local leadership, levels of institutional preparedness and governance capacities. The experience of these states offers certain insights which may help improve implementation policy of the NREGA.