Name of the Scheme – National Livelihood Mission – Urban
Department – Directorate of Urban Development
Scheme for : Individual and SHG
Where to Apply : District Urban Development Office
When to Apply : Anytime
- Introduction
1.1 The urban informal sector comprises a large part of the unorganized non-agriculture sector. Low levels of education and skill in the unorganized sector workers have resulted in their inability to access the opportunities offered by emerging markets. This underscores the criticality of skills up-gradation for better livelihoods opportunities in urban areas.
1.2 Most of the poor are involved in informal sector activities where there is a constant threat of eviction, removal, confiscation of goods and almost non-existent social security cover.
Even when segments of the urban population are not income-poor, they face deprivation in terms of lack of access to sanitary living conditions and their well-being is hampered by discrimination, social exclusion, crime, violence, insecurity of tenure, hazardous environmental conditions and lack of voice in governance.
1.3 The dimensions of urban poverty can be broadly divided into three categories: (i) residential vulnerability (access to land, shelter, basic services, etc.); (ii) social vulnerability (deprivations related to factors like gender, age and social stratification, lack of social protection, inadequate voice and participation in governance structures, etc.) and (iii) occupational vulnerability (precarious livelihoods, dependence on informal sector for employment and earnings, lack of job security, poor working conditions, etc.). These vulnerabilities are interrelated. Amongst the urban poor, there are sections subject to greater vulnerability in terms of the above classification; these include women, children, and the aged, SCs, STs, minorities and differently-abled persons who deserve attention on a priority basis.
Urban poverty being multi-dimensional, various vulnerabilities faced by the poor in cities and towns: occupational, residential and social need to be addressed simultaneously in a comprehensive and integrated manner with a targeted focus on the vulnerable groups so that a defi nitive impact can be made on ground. Residential vulnerability issues are being addressed through programmes like Pradhan Mantri Awas Yojana (Urban).
The other two vulnerabilities: occupational and social can be best addressed by creating opportunities for skill development leading to market-based employment and helping them to set up self-employment ventures. Urban poverty alleviation programmes need to be based on skill development and easy access to credit. It is in this context that a mission-mode approach to urban livelihoods is considered necessary in the form of the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM).
To reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self employment and skilled wage employment opportunities, resulting in an appreciable improvement in their livelihoods on a sustainable basis,through building strong grassroots level institutions of the poor.The mission would aim at providing shelters equipped with essential services to the urban homeless in a phased manner.In addition,the mission would also address livelihood concerns of the urban street vendors by facilitating access to suitable spaces,institutional credit,social security and skills to the urban street vendors for accessing emerging market opportunities…
2. Social Mobilisation And Institution Development (SM&ID)
2.1 The mobilisation of urban poor households to form their own institutions is an important investment for an effective and sustainable poverty reduction programme. DAY-NULM envisages universal social mobilisation of urban poor into Self-Help Groups (SHGs) and their federations. At least one member from each urban poor household, preferably a woman, should be brought under the Self-Help Group network in a time-bound manner. These groups will serve as a support system for the poor, to meet their financial and social needs. Normally, women SHGs will be formed, however male SHGs of handicapped persons will be allowed to be formed.
2.2 DAY-NULM would lay particular emphasis on the mobilisation of vulnerable sections of the urban population such as SCs, STs, minorities, female-headed households, persons with disabilities, the destitute, migrant labourers, and especially vulnerable occupational groups such as street vendors, rag pickers, domestic workers, beggars, construction workers, etc.
2.3 SHGs will federate at the Slum/Ward-level into an Area Level Federation (ALF). ALFs will organize into federation at the City level as a City Level Federation (CLF). The existing area-based structures created under SJSRY – Neighbourhood Group (NHG), Neighbourhood Committee (NHC) and Community Development Society (CDS) may be suitably transformed into SHG-based structures in due course. The Area Level Federation and City Level Federations will be registered bodies.
3. Sub-Component – Building Community Institutions: SHGs and their Federations
3.1 For catalysing the formation of SHGs and their federations and to promote the financial inclusion of SHG members under DAY-NULM, Resource Organisations (ROs) will be engaged to facilitate the formation of SHGs, their development and bank-linkages, formation of their federations at the area and city levels, training and capacity building, and establishing links to ULBs and to mitigate social, occupational and residential vulnerabilities.
3.2 Autonomous registered agencies set up by State or Central Government or well established long-standing federations of SHGs having significant experience in managing large-scale community driven programmes and developing successful implementation strategies in social mobilisation and institution building in urban or rural areas may be preferred as Resource Organisations.
3.3 In addition, non-government organisations may be selected as a Resource Organisation on the basis of strict criteria including registration status of the organisation, turnover, number of years of experience, sound procurement and financial management capacity, number of dedicated expert staff, domain knowledge and prior experience in social mobilisation of poor households, training and capacity building, livelihood promotion, and bank linkage of the community organisations.
3.4 A maximum of Rs. 10,000/- can be spent per self-help group for its formation, hand- holding up to two years, training of all the members, bank linkage, formation of federation and other related activities. States will be expected to enter into an agreement with Resource Organisations and payment will be made on the basis of milestones like SHG formation, training of members, bank linkage, formation of federation at the area and city levels and access to benefits under DAY-NULM, including revolving fund. The Resource Organisation will handhold the SHG for a period up to two years.
3.5 The services of ASHA / Anganwadi workers and other community level functionaries under various schemes / programmes of the Central and State Governments may also be utilised at the field level to facilitate the formation of SHGs under NULM.
Sub-Component – Universal Financial Inclusion
4.6 DAY-NULM aims to achieve universal financial inclusion, through opening of basic savings accounts, facilitating access to financial literacy, credit, affordable insurance, and remittance facilities to the urban poor and their institutions. It will also coordinate with financial institutions to encourage the use of ICT-based technologies, financial correspondents and community facilitators like “Bank Mitras” and “Bima Mitras” for the benefit of the urban poor. In particular, DAY-NULM will facilitate coverage of urban poor households under schemes such as Rashtriya Swasthya Bima Yojana (RSBY), Jan Shree Bima Yojana (JSBY) and similar programmes.
Sub-Component – Revolving Fund Support to SHGs and their Federations
3.7 DAY-NULM envisages that Thrift and Credit (T&C), functional literacy and basic skills training would be the main trinity of activities of Self-Help Groups (SHGs). A Revolving Fund support to the tune of Rs.10,000/- per SHG will be provided to SHGs with more than 70 percent urban poor members and those, which have not availed such support earlier. This Revolving fund is to be given only to those SHGs who have been doing thrift and credit activities for at least six months.
3.8 A Revolving Fund support of Rs.50,000/- would be available to a registered Area Level Federation (ALF) to sustain their activities.
Sub-Component – City Livelihood Centres (CLCs)
3.9 The objective of City Livelihoods Centre (CLC) is to provide a platform where by the urban poor can market their services and access information and other benefits. CLCs will act as a “one-stop shop” for those seeking services from the informal sector as well as for the urban poor promoting their services and products.
3.10 CLCs will be positioned as a resource centre for those seeking information relating to employment and skills training opportunities, etc. The centres may give the poor; access to information on market demand, skills training programmes offered and placement opportunities. For those seeking skills training, wage employment or aiming to establish and sustain self-employment ventures, the Livelihood Centres can facilitate necessary guidance, counselling and technical support.
5. Employment through Skills Training and Placement (EST&P)
5.1 This component of DAY-NULM will focus on providing assistance for development / upgrading of the skills of the urban poor so as to enhance their capacity for self-employment and salaried employment. EST&P intends to provide training to the urban poor as per the skill demand from the market, so that they can set up self-employment ventures or secure salaried employment. EST&P will target the urban poor subjected to occupational vulnerability. No minimum or maximum educational qualification is prescribed for the selection of beneficiaries under EST&P. The percentage of women beneficiaries under EST&P shall not be less than 30 percent. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/town population of poor. A special provision of 3 percent reservation should be made for the differently-abled under this programme. In view of the Prime Minister’s 15-Point Programme for the Welfare of Minorities, at least 15 percent of the physical and financial targets under this component shall be earmarked for the minority communities. Apart from that, special attention will be paid to the skill upgradation of vulnerable groups like beggars, rag pickers, construction workers, destitute, etc.
5.2 Skill training will be linked to accreditation and certification and preferably be undertaken on a Public-Private-Partnership (PPP) mode. It will involve reputed institutes, including ITIs, Polytechnics, NITs, industry associations, engineering colleges, management institutes, skill training centres, foundations, NSDC and other reputed entities in government, private and civil society sectors. The selection of these institutes/agencies to impart skills training shall be subject to a transparent process/ verification of brand image and the quality of instructions being imparted.
5.3 The cost per beneficiary shall not exceed Rs.15,000 (Rs.18,000 for North-Eastern and Special Category States), which will include training cost, trainee mobilisation, selection, counselling, training material, trainers’ fee, certification, toolkit, other miscellaneous expenses to be incurred by the training institution and also micro-enterprise development/ placement related expenses. If the training cost is higher than the maximum cost per beneficiary permissible under the scheme, the same may be met by the State Government or the beneficiaries.
5.4 A part of the payment will be linked to establishment of and satisfactory performance of micro-enterprise for at least a period of 6 months or retention in the placed jobs for at least a period of 6 months.
6. Self-Employment Programme (SEP)
Sub-Component – Self Employment-Individual and Group Enterprises
6.1 This component will focus on financial assistance to individuals/groups of urban poor for setting up gainful self-employment ventures/micro-enterprises, suited to their skills, training, aptitude and local conditions. The under-employed and unemployed urban poor will be encouraged to set up small enterprises relating to manufacturing, servicing and petty business for which there is considerable local demand. Local skills and local crafts should be particularly encouraged. Each City/Town should develop a compendium of such activities/projects keeping in view skills available, marketability of products, costs, economic viability etc. No minimum or maximum educational qualification is prescribed for the selection of beneficiaries under SEP. The percentage of women beneficiaries under SEP shall not be less than 30 percent. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/ town population of poor. A special provision of 3 percent reservation should be made for the differently-abled under this programme. In view of the Prime Minister’s 15-Point Programme for the Welfare of Minorities, at least 15 percent of the physical and financial targets under this component shall be earmarked for the minority communities.
6.2 Under this component, setting up of both individual and group micro enterprises will be supported. The project cost ceiling will be Rs. 2 lakh for individual enterprises and Rs. 10 Lakh for group enterprises. Individual and groups may be provided loan from the banks and the application for such loans be preferably recommended by the SHGs.
6.3 Interest subsidy over and above 7 percent rate of interest will be available on a bank loan for setting up of an individual or group enterprise. No collateral is envisaged other than the micro-enterprise itself.
Sub-Component – SHG – Bank Linkage
6.4 Also, Interest Subsidy over and above 7 percent rate of interest will be applicable to all SHGs accessing bank loan. An additional 3 percent interest subvention will be provided to all women SHGs who repay their loan in time in all the cities.
6.5 The interest subvention will be subject to timely repayment by the beneficiaries. Suitable certification from banks will be obtained in this regard. The difference between 7 percent or 4 percent as the case may be and the prevailing rate of interest will be provided to banks under DAY-NULM.
Sub-Component – Credit Card for enterprise development
6.6 Under this component, efforts will be made to cover beneficiaries with credit cards for working capital and other purposes.
Sub-Component – Technology, Marketing and Other Support
6.7 Technology, marketing, consultancy (advice) and other support may also be provided by States/cities to beneficiaries in setting up micro-enterprises, in relation to input procurement, production, packaging, branding, marketing, etc. This may include provision of selling places for poor street vendors in the form of kiosks and rehri markets, weekend markets/festival bazaars/ evening markets etc. in municipal grounds or on road sides on one hand and technical assistance with regard to market potential survey, input procurement, joint brand naming/ designing, advertising, marketing, etc. on the other.
Support to Urban Street Vendors
8.1 This component aims at skilling of street vendors, support micro-enterprise development, credit enablement and pro-vending urban planning along with supporting social security options for vulnerable groups such as women, SCs/STs and minorities. Up to 5 percent of the total DAY-NULM budget will be spent on this component.
Sub-Component – Pro-vending urban planning
8.2 Under DAY-NULM, states and cities will conduct a periodic socio-economic survey of street vendors, register street vendors and will issue Identity cards for street vendors. A database of street vendors will be developed and maintained at each city. This will enable States/ULBs to prepare pro-vending urban planning and provide space for street vending.
Sub-component – Skill Development and Micro-enterprise Development support for Street Vendors
8.3 Under DAY-NULM, poor and EWS street vendors in urban areas can access skill training under the EST&P component of DAY-NULM and micro-enterprise development support under the SEP component of DAY-NULM.
Sub-component – Credit-enablement of Street Vendors
8.4 Street Vendors will be encouraged to access basic banking services. Additionally, efforts will be made to cover individual beneficiaries with Credit Cards so as to enable street vendors access for working capital and other purposes.
Sub-component – Development of Vendors’ Markets
8.5 Development of vendors’ market/vending zones/informal sector markets in accordance with Town Vending Plans with infrastructure/civic facilities such as paving, water supply, solid waste disposal facility, lighting, storage space, parking facilities etc.
Scheme of Shelter for Urban Homeless (SUH)
10.1 The main objective of Scheme of Shelter for Urban Homeless (SUH) is to provide shelter and all other essential services to the poorest of the poor segment of urban societies. The shelters should be permanent all-weather 24 x 7 shelters for the urban homeless. For every one lakh urban population, provisions should be made for permanent community shelters for a minimum of one hundred persons. Depending upon local conditions each shelter could cater to between 50 and 100 persons.
10.2 Priority would be given to cities with population above one million in census of 2011, and other cities and towns identified by the Government of India/ State Governments to be of special social, historical or tourist importance.
10.3 For shelter planning purposes, a space of 50 sq. feet or 4.645 Sq. meters or say, 5 square meters per person may be taken as the minimum space to be provided.
10.4 The basic common facilities/amenities such as water, sanitation, electricity, kitchen/ cooking space, common recreation space may be provided at the shelters for dignified human living. Also linkage with Anganwadi, PHC, childcare facilities and other social assistance programme, etc. may be ensured.
10.5 Linkages with entitlements: Shelters should be a space for convergence and provisions of various entitlements of social security, food, education and health care systems. All homeless persons, in shelters should be given priority under various schemes, and Government programmes. This is because the homeless are unable to access many services due to lack of documentary proof such as address and birth proof etc.
10.6 Location of Shelters: Location should be close to homeless concentrations and work sites as far as practicable. They may be located close to the areas where the poorest congregate like railway stations, bus depots, terminals, markets, wholesale mandis etc. The Urban Development Projects Formulation and Implementation (UDPFI) guidelines and Master Plans may be suitably amended to permit construction of such shelters in public and semi-public use zones, industrial and recreational areas.
10.7 Design of Shelters: Where existing infrastructure / public buildings are being used, suitable refurbishment and augmentation to meet requisite services / space requirement should be done. Permanent shelters may be built of concrete or durable and weather proof alternate structures. The State Governments will be encouraged to adopt innovative designs for low cost and energy efficient buildings.
10.8 Each implementing Organisation shall set up a Shelter Management Committee (SMC), comprising preferably caretakers, and persons nominated from amongst residents of the shelter. Such a Shelter Management Committee shall be responsible for daily management, upkeep, cleanliness and discipline at the shelter.
10.9 Each shelter will be managed by a full time staff / team comprising a field officer (coordinator, overseeing smooth functioning, Government interface), a home manager (kitchen management, record maintenance, dispute resolution etc.), a resident shelter caretaker, and a watch person. These may or may not be Government staff and resourced through agencies/ institutions responsible for operating the shelters.10.10 The Community Kitchens may be run by the State agencies or any private agencies for provision of healthy and hygienic food at affordable rates to the poor. Voluntary participation of the beneficiaries should be encouraged to bring in a sense of ownership.
Source:
https://mohua.gov.in/upload/uploadfiles/files/18NULM%20mission%20document(3).pdf