Launched by the Ministry of Housing and Urban Affairs (MoHUA) on September 23, 2013, the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) aims to reduce the poverty and vulnerability of urban poor households. By enabling access to gainful self-employment and skilled wage employment opportunities, the mission seeks to improve livelihoods on a sustainable basis. The implementation of this mission concluded on September 30, 2024.
Core Objectives
- Skill Development: Equipping the urban poor with market-relevant skills to secure wage employment or establish self-employment ventures.
- Financial Inclusion: Providing access to formal credit through interest subventions for micro-enterprises and Self-Help Groups (SHGs).
- Social Mobilization: Organizing the urban poor into strong grassroots institutions, primarily SHGs, to foster collective action and social security.
- Infrastructure Support: Ensuring dignified living for the urban homeless through the provision of permanent 24/7 shelters equipped with essential services.
- Street Vendor Empowerment: Addressing livelihood concerns of street vendors by facilitating access to suitable spaces, credit, and social security.
Key Components of DAY-NULM
The mission was structured into several sub-components to provide holistic support to the urban poor:
- Social Mobilization and Institution Development (SM&ID): Focuses on mobilizing urban poor households into SHGs and their federations. It aims to build their capacity for financial and social management.
- Employment through Skills Training and Placement (EST&P): Provides demand-driven skill training to urban poor to enable them to secure salaried jobs or start micro-enterprises.
- Self-Employment Programme (SEP): Offers financial assistance through interest subvention on bank loans for setting up individual or group micro-enterprises.
- Support to Urban Street Vendors (SUSV): Aims to upskill street vendors, provide infrastructure for vending zones, and enable access to institutional credit.
- Scheme of Shelter for Urban Homeless (SUH): Ensures the availability of permanent, all-weather shelters with basic amenities like water, electricity, sanitation, and safety for the urban homeless.
- Innovative and Special Projects (ISP): Encourages pilot projects and innovative approaches to urban poverty alleviation, including partnerships with the private sector and civil society.
- Capacity Building and Training (CBT): Strengthens the administrative and technical machinery involved in implementing poverty alleviation programs at the local level.
Financial Assistance and Interest Subvention
The SEP component is central to the mission’s financial support framework:
- Individual Micro-Enterprises: Interest subvention on bank loans is provided for projects up to ₹2 lakh. Any interest charged by the bank above 7% per annum is reimbursed to the lending institution.
- Group Enterprises: A group can avail a loan of up to ₹10 lakh, with the same interest subvention logic (subsidy on interest exceeding 7%).
- Women SHGs: An additional 3% interest subvention is provided to women SHGs that ensure timely repayment, effectively reducing their interest rate to 4%.
Implementation and Reach
- Institutional Structure: The mission operated through a dedicated structure from the national level down to the City Livelihood Centers (CLCs).
- Target Group: Priority was given to vulnerable sections, including SCs, STs, minorities, persons with disabilities, manual scavengers, and victims of human trafficking.
- Performance Metrics (As of 30.09.2024):
- SHGs Formed: Over 10 lakh SHGs were established.
- Skill Training: Approximately 15.42 lakh candidates received training.
- Shelters: Nearly 2,000 shelters were created, providing a capacity of 1.41 lakh beds.
Key Facts for UPSC Aspirants
- Origin: The mission was a restructuring of the erstwhile Swarna Jayanti Shahari Rozgar Yojana (SJSRY).
- Governance: While urban poverty alleviation is a state subject, the Government of India provided central assistance to supplement the efforts of States/UTs.
- Convergence: DAY-NULM emphasizes convergence with other schemes like PMAY-U, PM SVANidhi, and various social security and health programs to provide a comprehensive support net for the urban poor.
- Evolution: Following the conclusion of DAY-NULM, the government has transitioned toward targeted interventions, such as the pilot Deendayal Jan Aajeevika-Shehari (DJAY-S), which focuses on specific vulnerable occupational groups like gig workers, domestic workers, and waste workers.