States seek urgent funds to sustain women livelihood mission, no word on NULM 2.0 yet, Pg1

Key Highlights:

• At least five states, including Tamil Nadu, Karnataka, Maharashtra, Madhya Pradesh, and Tripura, have urged the Centre for urgent funds to sustain the urban livelihood mission.
• The Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), which benefited over one crore women through 10 lakh Self-Help Groups (SHGs), concluded in October 2024.
• A pilot project, Deendayal Jan Ajeevika Yojana - Shehari (DAY-SJ), ran until December 2025, but a new scheme (NULM 2.0) is currently in limbo.
• States warn that a lack of financial support will disrupt bank linkages, access to institutional credit, and adversely impact the social protection of the urban poor.
• Tamil Nadu has requested Rs 350 crore, Maharashtra Rs 81 crore, Madhya Pradesh Rs 101 crore, and Tripura Rs 6.5 crore to cover committed liabilities and sustain existing structures.

State's Request.jpg

Detailed Insights:

• The Ministry of Housing and Urban Affairs (MoHUA) had advised states to retain existing mission structures and workforce for continuity, despite the end of DAY-NULM.
• States are facing an acute financial crunch, with funds for NULM exhausted and liabilities for staff remuneration, interest subvention, and revolving funds piling up.
• The Centre spent approximately Rs 9,000 crore on NULM over its 10-year period, which was a successor to the Swarna Jayanti Shahari Rozgar Yojana.
• MoHUA sources indicate that existing SHGs and staff are being leveraged by other government initiatives like PMSVANIDHI, Pradhan Mantri Awas Yojana, and Swachh Bharat Mission.
• The Centre maintains that there is no pendency of demand from any state and discussions are ongoing for a new livelihood program based on pilot learnings.
• The issue highlights challenges in transitioning between schemes and ensuring continuous support for beneficiaries, particularly in urban poverty alleviation.

Key Concepts Involved:

• Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM): A flagship scheme launched in 2014 to reduce poverty and vulnerability of the urban poor by enabling them to access gainful self-employment and skilled wage employment opportunities.
• Self-Help Groups (SHGs): Small, informal associations of people who come together to address common problems, primarily focusing on micro-finance and livelihood generation.
• Interest Subvention: A provision by the government to offer a reduction in the interest rate on loans, making credit more affordable for specific beneficiaries or sectors.