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National Urban Livelihoods Mission (NULM)

National Urban Livelihoods Mission (NULM) was launched by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), Government of India in 23rd September, 2013 by replacing the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY).

The NULM will focus on organizing urban poor in their strong grassroots level institutions, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment venture by ensuring easy access to credit. The Mission is aimed at providing shelter 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.


In the 12th Five Year Plan, NULM will be implemented in all districts headquarter  towns(irrespective of population) and all other towns with population of 1 lakh or more as per Census 2011. At present 790 cities are under NULM. However, other towns may be allowed in exceptional cases on request of the States.

Target Population:

The primary target of NULM is the urban poor, including the urban homeless.

Sharing of Funding:

Funding will be shared between the Centre and the States in the ratio of 75:25. For North Eastern and Special Category States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Himachal Pradesh and Uttarakhand), this ratio will be 90:10.

Social Mobilisation And Institution Development (SM&ID)

The mobilisation of urban poor households to form their own institutions is an important investment for an effective and sustainable poverty reduction programme. 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.

Sub-Component – Building Community Institutions: SHGs and their Federations

  • A maximum of Rs. 10,000/- can be spent per self help group for its formation, handholding 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 NULM, including revolving fund.
  • The Resource Organisation will handhold the SHG for a period up to two years.

Sub-Component – Universal Financial Inclusion

  • 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, 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

  • 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.
  • 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)

  • 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.
  • A grant of Rs. 10 lakh per CLC will be provided as ‘untied funds’ in instalments linked to achievement of milestones. This amount can be used for a corpus fund, basic training facilities and equipment like computers, product demonstration outlets, furniture, rent (where building is not available), telephone and other operational expenses, staffing support on contract basis, etc.

Sub-Component – Training & Other Capacity Building Programmes for SHGs and their Federations

  • This component will be used for training and capacity building of SHGs and their federations on various issues like bank linkage, book keeping and accounts, micro-planning, micro-investment process, roles and responsibilities of members, etc.
  • For training of members of ALFs and CLFs, the ceiling amount that can be used for capacity building and training at the Central/State/City level will be Rs.7,500 per trainee on an average. Part of the amount may also be used for community-to-community learning/exposure and immersion visits of members of SHGs and their federations and programme-related personnel.

Capacity Building And Training (CB&T)

 A key objective of the Capacity Building and Training component is to transform the role of the Ministry of Housing & Urban Poverty Alleaviation and State Agencies in charge of urban poverty alleviation into providers of high quality technical assistance in the fields of urban livelihoods promotion and urban poverty alleviation.

Sub-Component – Technical Support at National, State and City Levels

  • The objective of this sub-component is to establish timely and high quality technical assistance at Central, State and City levels to roll out and implement NULM.
  • A National Mission Management Unit (NMMU) will be established at the Centre. Additionally, support to States and Cities would be provided for setting-up of State Mission Management Unit (SMMU) and City Mission Management Unit (CMMU) with good quality livelihood and programme management professionals and developing efficient institutional systems like HR, MIS, financial management, procurement, and social management. Technical support would also be provided to the States/Cities to undertake comprehensive situational analysis to capture various dimensions of urban poverty in the State/Cities.
  • The funding support for SMMU and CMMU will be available only for five years.

Sub-Component– Training & Other Capacity Building Programmes for MMUs

  • This component will be used for training and capacity building of the technical resource persons of the MMUs at National, State and City level. The component will be implemented by national, state and city resources centres/agencies including civil society organisations, and Mission Management Units at various levels.
  • The ceiling amount that can be used for capacity building and training at the Central/State/City level will be Rs.7,500 per trainee on an average. Part of the amount can be used for community-to-community learning/exposure and immersion visits of members of the MMUs and programme-related personnel.

Employment Through Skills Training And Placement (EST&P)

  • This component of 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.
  • 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 differentlyabled 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.
  • 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 moblisation, 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.

Self-Employment Programme (SEP)

Sub-Component – Self Employment-Individual and Group Enterprises

  • 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.
  • Under this component, setting up of both individual and group micro enterprises will be supported. The project cost ceiling will be Rs. 2.00 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.
  • 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 microenterprise itself.

Sub-Component – SHG – Bank Linkage

  • 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.

Sub-Component – Credit Card for enterprise development

  • 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

  • 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

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 NULM budget will be spent on this component.

Sub-Component – Pro-vending urban planning

  • Under 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 development 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

  • Under NULM, poor and EWS street vendors in urban areas can access skill training under the EST&P component of NULM and micro-enterprise development support under the SEP component of NULM.

Sub-component – Credit-enablement of Street Vendors

  • 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

  • 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.

Sub-component – Social Security Convergence

  • Under NULM, street vendors will be encouraged to access other social security benefits available to them through various schemes of the Government of India (such as Rashtriya Swasthya Bima Yojana), state-level and city-level social security and social assistance initiatives / schemes.

Share of Funding:

Sl. No States/UTs Capital Share (%) State Share (%)
1 North Eastern and Special Category States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim; Uttarakhand, Himachal Pradesh, Jammu and Kashmir) 90 10
2 All other States and Union Territories 75 25

Scheme of Shelter For Urban Homeless (SUH)

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.

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.

Funding Pattern for SUH:

  • Government of India would fund 75 percent of the cost of construction of the shelters and 25 percent would be the State contribution. In case of Special Category States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu and Kashmir, Himachal Pradesh and Uttarakhand), this ratio will be 90:10. It will be the responsibility of the State Governments to bring in land as their contribution.
  • For Operation & Maintenance of the shelter, Central Government would provide 75 percent or 90 percent of the Operational & Maintenance cost, as the case may be for each shelter to all states for 5 years.
  • Nominal charges as rent could be collected depending on the income levels of the urban homeless at rates ranging from 1/10 to 1/20 of their income, so as to bring in commitment of the beneficiaries. This fund could be utilized for maintenance of the facilities. For those with no payment capacities, total exemption could be granted.

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