Deendayal Antyodaya Yojana-National Urban Livelihoods Mission

Context:

The Government will soon roll out the next version of the livelihood mission for urban poor and vulnerable sections – National Urban Livelihood Mission (NULM 2.0). This will focus on six groups, including construction workers, gig workers, waste management workers, care workers, domestic workers and transportation workers.

Relevance:

GS II: Government policies and Interventions

Dimensions of the Article:

1. About Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM)
2. DAY-NULM 2.0

About Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM)

Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) is a program launched in 2014 by the Ministry of Housing & Urban Affairs in India. Here are the key features of the mission:

Implementation:

• It is a Centrally Sponsored Scheme, meaning that both the central government and state governments contribute to its funding.
• The funding ratio between the Centre and the States is 75:25, except for the North Eastern and Special Category states, where the ratio is 90:10.

Mobilization and Self-Help Groups:

• DAY-NULM has successfully mobilized more than 8.4 million urban poor women across India.
• It has formed over 831,000 Self-Help Groups (SHGs) in over 4,000 towns as of 2023.

Objectives and Focus:

• The mission focuses on skill development and entrepreneurship among the urban poor, particularly women.
• It aims to enhance their capacity to access financial services and create sustainable livelihoods.
• The mission aims to uplift the urban poor by providing them with sustainable livelihood opportunities through skill development and access to credit.

Components:

• The mission includes various components such as skill training, self-employment, social mobilization and institution development, and street vendor rehabilitation.

DAY-NULM 2.0

The DAY-NULM 2.0 (Deendayal Antyodaya Yojana – National Urban Livelihoods Mission) is a revamped initiative aimed at improving the livelihoods of the urban poor through financial support and infrastructure development.

• Scheme Overview:
  • The government will help eligible urban poor individuals or groups access microcredit up to Rs 4 lakh for individuals and Rs 20 lakh for groups.
  • This microcredit will come with a subsidised interest rate of 5%.
• Key Benefits:
  • The microcredit will assist beneficiaries in:
    • Starting small enterprises.
    • Developing social infrastructure, like setting up labour chowks.
    • Providing innovation grants for activities like purchasing sanitation machinery.
• Pilot Exercise:
  • To launch the NULM 2.0, the government will conduct a pilot exercise in 25 cities to:
    • Identify urban poor.
    • Ensure the correct targeting of schemes to enhance the beneficiaries’ earnings and living standards.

-Source: The Hindu