Wednesday, January 25, 2012

Draft Concept Note on National Urban Livelihoods Mission

Draft Concept Note on National Urban Livelihoods Mission

Following is the Draft Concept Note on National Urban Livelihoods Mission:

1.1.         Economic development and urbanisation are closely linked. Cities in India are emerging as the country’s engines of economic growth, with a contribution of more than 60 per cent to GDP. India’s urban population is now 377 million (Census of India, 2011). This represents a 31 per cent increase from 2001 when urban population was 286 million. Despite the robust economic growth at the national level, the number of the urban poor has steadily increased in recent decades. Estimated at 81 million in 2004-05 (NSSO, 61st Round), the urban poor represented about 26 per cent of the urban population in India. Many of them are subject to deplorable living conditions in slums and squatter settlements. The slum population in the country is estimated at 93 million in 2011. In addition to the substantive magnitude of the number of urban poor and slum dwellers, a key concern is the rising headcount of the urban poor. The number of urban poor is estimated to have increased during the period 1993-94 to 2004-05 by about 4 million.

1.2.         Data from the National Sample Survey Organisation (NSSO) 50th and 61st Rounds reveals that the Gini ratio of urban consumption distribution (that ranges from 0 with perfect equality to 1 with perfect inequality) increased from 0.34 in 1993-94 to 0.38 in 2004-05, widening the divide between the rich and the poor in cities. The per capita expenditure of the bottom 20 percent of urban households increased at a slower pace than that of the middle 60 percent or top 20 percent. Between 1993-94 and 2004-05, the share of the bottom 20 percent of urban households in total consumption expenditure decreased by 0.78 percentage point; from 8.04 per cent in 1993-94 to 7.26 per cent in 2004-05. In contrast, the share of the top 20 per cent of urban households in total consumption expenditure increased by 2.47 percentage points - from 42.81 percent in 1993-94 to 45.28 percent in 2004-05. The data reflects increasing divide between the rich and the poor in cities.

1.3.         Urban poverty is multi-dimensional. The urban poor face multiple deprivations - inadequate access to affordable housing, basic civic services like water, sanitation, drainage, solid waste management, roads, street lighting, health care, education and social security, and livelihoods opportunities. The dimensions of urban poverty can be 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 inter-related. Amongst the urban poor, there are sections subject to greater vulnerability in terms of the above classification; these include women, children, the aged, SCs, STs, minorities and differently-abled persons who deserve attention on a priority basis.

1.4.         The Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector by the National Commission on Enterprises in the Unorganized Sector brought out in August 2007 (NCEUS, 2007) reveals that in 2004-05, out of India’s total workforce, 92 percent worked in the informal economy – in unorganized enterprises or households, excluding regular workers with social security benefits, and in the formal sector without any employment/ social security benefits provided by the employer. The urban informal sector comprises a large part of the unorganized non-agriculture sector. The proportion of non-agriculture workers in the unorganized sector rose from 32 percent in 1999-2000 to 36 per cent in 2004-05. Out of total workers in the non-agriculture sector, 72 percent were in the unorganized sector in 2004-05 as against 68 percent in 1999-2000. 63 percent of the unorganized workers in non-agriculture sector were self-employed, 17 percent were regular workers and 20 percent belonged to casual categories.

1.5.         The total employment in the Indian economy increased from 397 million in 1999-2000 (NSSO 55th Round) to 457 million in 2004-05 (NSSO 61st Round). This increase of 60 million has been solely of an informal kind. Out of this, 52.3 million occurred in the informal or unorganized sector, while the increase in employment in the organized sector was only 7.5 million. However, this increase has been entirely informal in nature, i.e. without job or social security. Thus, not only has there been an informalisation of the Indian economy but also an informalisation of the formal sector. The data underscores the size and significance of the informal economy or unorganized sector in India.

1.6.         Out of the unorganized sector workers engaged in non-agricultural activities in 2004-05, about 73.4 percent had educational attainment level of middle class or below, while 37.4 percent were illiterate or below primary school level. For females, the figures were 84.1 and 54.7 percent respectively. In urban areas, 65.6 percent of the unorganized sector non-agricultural workers were having education of middle class or below. The figure for urban females was 77.8 percent with 49.3 percent being illiterate or below primary. 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.

1.7.         There is a high congruence between the informal economy and poverty. The NCEUS Report (2007) reveals that at the end of 2004-05, about 77 percent of the total population in the country were living below Rs. 20 per day and constituted most of India’s informal economy. About 79 percent of the informal or unorganized workers belonged to this poor and vulnerable group, with the figure at 90 percent for casual workers. These workers had no legal protection of job or working conditions or social security. They lived in abject poverty, excluded from the impressive gains from the economic reforms and liberalisation that ushered in from 1992-93. The bulk of the urban poor find their livelihood in the informal economy; between 94 percent and 98 percent of informal sector workers fall into the vulnerable group category. The number of the urban poor engaged in informal activities is so large that even a small improvement in the productivity of this segment of population through skill up-gradation can make a huge impact on GDP, leading to inclusive growth.

1.8.         In the above background, livelihoods issues, especially skill development for market-based employment as well as self-employment of the informal or unorganised sector workers, who constitute the bulk of the urban poor, is critical and of immediate importance. Urban poverty is different from rural poverty; urban poverty alleviation programmes need to be skills and credit access-based. 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 definitive impact can be made on ground. It is within this context that a mission-mode approach to urban livelihoods is considered necessary in the form of the National Urban Livelihoods Mission (NULM). This document sets forth the features of the NULM; the mission statement, values, and strategy of NULM; the mission components; and mission organisation structure.

II       Need for a Mission Mode Approach to Urban Livelihoods
2.1.         The Government’s approach to livelihoods of the poor has, thus far, been scheme-based. Most of the programmes focusing on livelihoods have targeted rural areas; only under a limited number of schemes has there been a partial targeting of the urban poor. Of these, only Swarna Jayanti Shahari Rozgar Yojana (SJSRY) – with components of Urban Self Employment Programme (USEP), Urban Women Self Help Programme (UWSP), Urban Wage Employment Programmes (UWEP), Skills Training for Employment Promotion amongst the Urban Poor (STEP-UP) and Community Development Network (CDN), has focused exclusively on urban poor livelihoods since 1997, albeit with significant funding constraints, have led to serious impediments in addressing the critical concerns of urban poverty comprehensively.

The inadequate allocation and focus on the livelihoods issues of the
urban poor has led to a vicious cycle of low skill economy (see Diagram
Diagram 1
2.2. As per the Approach Paper for the 11th Five Year Plan, referring to
data collected in the 60th Round NSS, only 3 percent of the rural youth
(15-29 years) and 6 percent of the urban youth have gone through any
kind of vocational training. Hence, vocational education and skills
training to enable the urban poor and migrant rural poor to access market
opportunities for jobs are bound to be critical for achieving the targets of
urban poverty reduction.
2.3. Livelihood of the urban poor, however, is set to get its due focus in
the upcoming 12th Five Year Plan. The Approach Paper for the 12th Five
Year Plan has identified, as part of its strategy, one of its key priority
areas the task of addressing “the basic needs of the urban poor who are
largely employed in the informal sector and suffer from multiple
deprivations and vulnerabilities that include lack of access to basic
amenities such as water supply, sanitation, health care, education, social
security and decent housing.” (Planning Commission, 2011)
2.4. Additionally, in its report, the Working Group on Urban Poverty,
Slums and Basic Services in the context of the formulation of the 12th
Five Year Plan has stated that livelihoods and skill development of the
occupationally vulnerable among the urban poor ought to be accorded top
priority in the 12th Five Year Plan. In particular, the report emphases
three key focus areas – first, a continued focus on micro-enterprise and
skill development for the urban poor, second a mandatory creation /
allocation of spaces within city-boundaries for the lives and work of the
urban poor, and finally, appropriate corrective legislative action to ensure
that the rights of the urban poor to a productive livelihoods are
guaranteed. In particular, the Working Group recommended a ‘missionmode’
approach to urban livelihoods. The suggestion has been accepted
by the Steering Committee on Urbanization for the 12th Five Year Plan
set up by Planning Commission.
2.5. As the nodal Ministry for urban poverty alleviation, in order to
focus policy and programmatic attention on the issue of urban livelihoods
in a structured way, the M/o Housing & Urban Poverty Alleviation has
envisaged to launch a ‘National Urban Livelihoods Mission (NULM).
This will replace the existing SJSRY from the beginning of the 12th Five
Year Plan. NULM would be target-oriented with specific focus on the
primary issues pertaining to urban poverty such as skill up-gradation,
entrepreneurship development and employment creation through wage
employment and self-employment opportunities opened up by the
emerging markets in urban areas. It will adopt a Mission approach.
2.6. The implementation of NULM in a Mission mode is essential as it
A. Shift focus from the present allocation-based strategy and distribution
of funds to a demand-driven paradigm that provides flexibility to
States to formulate their own livelihoods-based State urban poverty
reduction strategies and city/town action plans for poverty reduction;
B. Address livelihoods concerns of the urban poor in convergence with
programmes to tackle the multiple vulnerabilities of the urban poor:
occupational, residential and social;
C. Make States and cities/towns focus on tangible outcomes, time-bound
targets and monitor the achievement of such targets so linked to
specific poverty outcomes;
D. Facilitate the building of key institutions of the poor and their capacity
so that they can implement programmes by themselves with support
provided by Government, civil society and other partners;
E. Address the key structural deficiencies observed in the
implementation of the present SJSRY, especially the lack of dedicated
manpower and professionalism in implementation at the Central, State
and City/Town levels; and
F. Enable steady movement to the ultimate objective that the urban poor
drive their own agenda to come out of the clutches of poverty and
sustain their own livelihoods.
III. NULM: Mission Principles, Values, Objectives and Approach
3.1. The core belief of National Urban Livelihoods Mission (NULM) is
that the poor are entrepreneurial and have innate desire to come out of
poverty. The challenge is to unleash their capabilities to generate
meaningful and sustainable livelihoods. The first step in this process is
motivating the urban poor to form their own institutions. They and their
institutions need to be provided sufficient capacity so that they can
manage the external environment, access finance, expand their skills,
enterprises and assets. This requires continuous and carefully designed
handholding support. An external, dedicated and sensitive support
structure, from the national level to the city and community levels, is
required to induce social mobilisation, institution building and livelihoods
3.2. Strong institutional platforms of the poor support them to build up
their own human, social, financial and other resources. This enables them
to access their rights, entitlements, opportunities and services, both from
the public and private sectors. The social mobilisation process enhances
solidarity, voice and bargaining power of the poor. These processes
enable them to pursue viable livelihoods based on leveraging their own
resources, skills and preferences. Thus, they can come out of abject
poverty and not fall back into a vicious cycle. NULM believes that the
programme can be scaled up in a time bound manner, only if it is driven
by the poor and their institutions.
NULM Mission
3.3. The mission of the National Urban Livelihoods Mission (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”.
Guiding Principles
3.4. The guiding principles of NULM are:
a. The urban poor have a strong desire to improve their quality of life
and come out of the clutches of poverty. They have the innate capacity
to do so. However, key enablers empowering them to take positive
action in this direction are missing;
b. Social mobilisation and building strong institutions of the poor in
urban areas are critical for unleashing their innate capabilities. For
this, an external, dedicated and sensitive support structure is essential
so as to catalyse social mobilization, institution-building and
empowerment process of the poor;
c. Access to livelihoods enhancement opportunities though information,
knowledge, skills training, tools, infrastructure, credit, marketing,
collective effort, etc., security of tenure, shelter and basic services
enable the urban poor to gain access to improved living conditions,
sustainable livelihoods and come out of poverty.
d. NULM would aim at universalisation of coverage of the urban poor in
access to skills development and credit facilities. It will strive on
demand for skills training of the urban poor for market-based jobs and
self-employment, facilitating easy access to credit through measures
such as a credit guarantee scheme/credit cards etc.
e. NULM believes that convergence with policies, programmes and
schemes of other Ministries/State Governments/Urban Local Bodies
dealing with skills, livelihoods, entrepreneurship development, social
assistance, etc. is crucial to the success of the Mission. It will strive to
enable the urban poor, including slum-dwellers, street vendors, etc. to
access the opportunities made available through different schemes in a
convergent manner.
3.5. The Mission will espouse the following values:
a. Ownership and key role of the urban poor and their institutions in all
stages – community needs assessment survey, planning, programme
formulation, implementation, monitoring and evaluation;
b. Inclusion of the vulnerable sections of the urban poor in all
programmes and processes - equity to the most disadvantaged and
marginalized groups of the urban society;
c. Transparency in programme design and implementation, including
institution-building and capacity strengthening; proactive disclosure at
all levels and stages;
d. Mutual accountability of government functionaries and the
e. Partnerships with industry and other stakeholders; and
f. Community self-reliance, self-dependence, self-help and mutual-help.
3.6. The central objective of NULM is to reduce poverty among the
urban poor through the promotion of diversified and gainful selfemployment
and wage employment opportunities, leading to increased
income on a sustainable basis. NULM will adopt a five-pronged strategy:
i. Enhancing and expanding existing livelihoods options of the urban
ii. Building skills to enable access to growing market-based job
opportunities offered by emerging urban economies;
iii. Training for and support to the establishment of micro-enterprises by
the urban poor – self and group;
iv. Ensuring linkages to shelter, basic services and empowerment to
promote sustainable approaches to poverty alleviation; and
v. Building capacity of the urban poor, their institutions and the
machinery involved in the implementation of livelihoods development
and poverty alleviation programmes.
In the long run, NULM is expected to ensure broad-based inclusive
growth and reduce disparities across communities, sectors and regions.
3.7. Other objectives of the Mission include:
a. To achieve inclusion of the urban poor and the vulnerable sections as
an integral and valued part of the urban society and economy;
b. To build capacity and skills at the bottom of the pyramid in emerging
industry and service sectors, offering value-added, new employment
opportunities in association with the private sector, wherever possible,
and thereby also alleviating the skill shortages of the industry and
service sectors;
c. To organise the urban poor through formation of occupation-based
and neighbourhood level collectives/institutions founded on self-help
principle and federate them at slum and ward/zone/town/city levels to
address livelihoods as well as social development concerns;
d. To promote more equitable access of the urban poor to shelter and
basic services such as water supply, sanitation, solid waste
management, electricity, roads, transport, etc., and converge
livelihoods with other programmes;
e. To promote financial inclusion by facilitating easy access of the urban
poor to financial services such as savings, credit, insurance, money
transfers and pensions:
f. Enable the urban poor to exercise voice in governance structures and
decision-making processes.
3.8. Towards building, supporting and sustaining livelihoods of the
urban poor, NULM will attempt to harnesses their innate capabilities,
focusing on a community-to-community learning approach,
complementing them with capacities (information, knowledge, skills,
tools, infrastructure, finance and collectivisation) to deal with the rapidly
changing external world. The Mission is conscious of the fact that
livelihoods activities are varied; and hence, it intends to work on three
pillars – ‘enhancing and expanding existing livelihoods options of the
poor’; ‘building skills for the job opportunities offered by growing urban
economies’; and ‘nurturing self-employment and entrepreneurship’.
3.9. NULM further recognises that dedicated support structures help in
strengthening the institutional platforms of the poor. These platforms,
with support from their accumulated human and social capital, offer a
variety of livelihoods services to their members across the value-chains
of key products and services of the poor. These include: finance and
capital, production and productivity enhancement, covering technology,
knowledge, skills, inputs, infrastructure, market linkages etc.
3.10. The urban BPL youth would be offered skill development training
under NULM after counselling and matching their aptitude with job
requirements and placed in remunerative jobs. Self-employed and
entrepreneurially-oriented poor would be provided the requisite skills and
financial linkages. They would be nurtured to establish and grow with
micro-enterprises. The platforms of the poor will offer space for
convergence and partnership with a variety of stakeholders, including the
civil society. The organisation of the poor, through their institutions,
would reduce transaction costs to individual members, make their
livelihoods more viable and accelerate their journey out of poverty and
deprivation. They will also facilitate empowerment of the urban poor and
access to basic civic services, shelter, benefits available under various
programmes and schemes and voice in governance structures and
decision-making processes.
IV. Proposed Components of NULM
4.1. NULM seeks to bring about a fundamental systemic reform in the
paradigm of urban development, in general and urban poverty alleviation,
in particular. This is through mainstreaming the role of the community,
community organizations and institutions of the poor to promote
livelihoods opportunities through self and wage employment, while
ensuring convergence with shelter and provision of basic services.
However, simultaneous or uniform changes across all States in India
would not be feasible. Therefore, it is envisaged to make NULM a Statespecific
intervention with flexibility to States for up-scaling in due
course. Apart from creating an enabling environment in States, the
institutional capacities at Central, State, District and City/Urban Local
Body levels would be suitably strengthened to understand, adapt and
implement the NULM to produce significant outcomes as part of an
overall strategy for urban poverty reduction. NULM will be implemented
in convergence with Rajiv Awas Yojana, Jawaharlal Nehru National
Urban Renewal Mission and social sector development programmes of
Ministries and States.
4.2. NULM will have the following components:
A. Social Mobilisation and Institution Development (SM&ID) with
i. Building Community Institutions - SHGs and their Federations;
ii. Universal Financial Inclusion; and
iii. Revolving Fund Support to SHGs and their Federations.
B. Capacity Building and Training (CB&T) with sub-components:
i. Technical Support at National, State, District and City Levels;
ii. Service Centres/Aadhar Kendras at City Level; and
iii. Training and Other Capacity Building Support.
C. Employment through Skills Training and Placement (EST&P)
i. Skills Training for Self-Employment;
ii. Skills Training & Placement for Wage Employment;
iii. Innovative & Special Projects.
D. Self-employment Programme (SEP):
i. Individual Enterprises (SEP-I);
ii. Group Enterprises (SEP-G); and
iii. Technology, Marketing and Other Support.
Component 1: Social Mobilisation and Institution Development
4.3. 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 mobilisation
of urban poor households into thrift and credit-based Self-Help Groups
(SHGs) and their federations/collectives. At least one member from each
urban poor household, identified through Socio-economic Survey,
preferably a woman, should be brought under the Self-Help Group
network in a time-bound manner. The minimum number of members for
a SHG will be 5, but preferably 10-15. The SHG may or may not be
registered. NULM envisages that on priority slums in a city/town will be
covered under the SHG programme, covering both notified and nonnotified
slums. The thrift-based groups will serve as a support system for
the poorest to meet their financial and social needs. These groups have
been found to be particularly useful to the assetless and landless urban
poor to reduce the exploitative influence of moneylenders over them.
Crucial investments in social mobilisation and institution development
would optimize the impact of livelihoods programmes.
4.4. NULM would lay particular emphasis on the mobilisation of
vulnerable sections like SCs, STs, minorities, woman-headed households,
persons with disability, landless, migrant labourers, street vendors etc.
NULM firmly recognizes that investing in poverty alleviation
programmes without making suitable investments in social mobilization
and institution-building would not result in the desired poverty reduction
4.5. Like SJSRY, NULM will rest on the foundation of promoting
urban poverty alleviation and livelihoods development through
community mobilization from the grassroots level, women’s
empowerment and development. It will rely on establishing and
nurturing community organizations and structures that will facilitate
sustained urban poverty alleviation. This will make the livelihoods
activities far more sustainable by creating collectives of women, which
will form a network to sustain their activities. NULM envisages close
partnerships with the civil society in social mobilisation and community
4.6. Under SJSRY, the targeted poor are first mobilised as
Neighbourhood Groups (NHGs). These are typically a group of 15-20
women living in the same contiguous area. The Neighbourhood Groups
are federated at the slum level as Neighbourhood Committee (NHC). The
NHCs are further federated at the Municipality level as Community
Development Society (CDS). NULM envisages that Thrift and Credit
would be the main activity of NHG, which would be organized as Self-
Help Group (SHG). These Thrift and Credit Groups, once matured, could
take up small enterprises at Group level or Individual levels with credit
facilitation from the banks. The SHGs will federate at the Slum/Ward
level into Slum/Ward Level Federation – Area Level Federation (ALF).
Area Level Federations are to be further federated at the
Zonal/Town/City level as Town or City Level Federation (TLF). Where
considered appropriate, cities/towns may organise ward level (rather than
slum level) and zone level (rather than city/town level) federations. The
existing area-based structures created under SJSRY – NHG, NHC and
CDS may be suitably transformed into self-help based structures – SHG,
ALF and TLF. The ALF and TLF need to be registered. NULM will aim
at strengthening all types of institutions of the urban poor in a partnership
4.7. Under NULM, bank linkages for T&CS/SHG will be promoted for
sustenance of the system and self-reliance in the long term through SHGBank
Linkage programme. Necessary engagement with banks will be
undertaken with the help of support professionals/NGOs/CBOs etc.
4.8. Social Mobilisation and Institution Development (SM&ID) will
have three sub-components: (i) Building Community Institutions: SHGs
and their Federations; (ii) Universal Financial Inclusion; and (iii)
Revolving Fund Support to SHGs and their Federations.
Sub-Component 1.1 – Building Community Institutions: SHGs and
their Federations
4.9. For catalysing the formation of SHGs and their federations,
promoting financial inclusion of SHG members,
NGOs/CBOs/Facilitators/ Animators will be engaged with slum/ward as
the unit. Support of self-help and mutual help promoting institutions in
both Government and Civil Society sectors will be solicited. Rs. 5,000
per SHG will be available for NGOs/CBOs / Facilitators/Animators, etc.
under NULM towards group formation and development, basic financial
inclusion, including bank linkages, and establishing links to ULBs and
schemes related to social, occupational and residential vulnerabilities.
This amount will be made available for support to SHGs over a period of
18 months. Urban Local Bodies are free to engage institutions/agencies
on a ‘whole slum’ or ward basis rather than on a SHG basis, subject to
Rs.5,000 being the ceiling limit per SHG. Further guidelines in this
regard will be issued by the NULM Mission Directorate.
Sub-Component 1.2 – Universal Financial Inclusion
4.10. NULM aims to achieve universal financial inclusion, beyond basic
banking services, covering all urban poor households, SHGs and their
federations. On one hand, it will promote financial literacy among the
urban poor and provide support through Revolving Fund. On the other, it
will coordinate with the financial sector to encourage the use of ICTbased
technologies, financial correspondents and community facilitators
like “Bank Mitras”. It will also make effort for universal coverage of the
urban poor under insurance against the loss of life, health and assets. In
particular, NULM will try to cover urban poor households under
Rashtriya Swasthya Bima Yojana (RSBY) and similar programmes.
4.11. SHGs will be eligible for subsidy on interest above 7 percent per
annum on loans availed from banks based on prompt repayment. This
subsidy would be available till a member accesses credit through repeat
cumulative loaning upto Rs.200,000 per household. Interest subsidy
would not be applicable when a SHG avails capital subsidy, say for group
enterprise. However, interest subsidy could be availed by a SHG when a
fresh loan after repaying the capital subsidy-linked loan is taken. Further
guidelines for availing interest subsidy will be issued by the Mission
Directorate from time to time.
4.12. Registration of SHGs may be encouraged. Federations of SHGs /
T&CS at the area / ward / zone / city levels – ALF and TLF – will need to
be registered for channelization of the revolving fund, bank credit, etc.
4.13. Bank linkages will be accorded high priority under NULM. SHGs
will be encouraged to avail bank credit on the basis of their performance
for their requirements. Flexibility is available to States / UTs for the
involvement of financial institutions.
Sub-Component 1.3 – Revolving Fund Support to SHGs and their
4.14. A Revolving Fund support to the tune of Rs.10,000 will be
provided to SHGs with more than 70 per cent BPL members and those
which have not availed such support earlier. Similarly, a Revolving Fund
support of Rs.50,000 would be available to a registered Slum/Ward Level
Federation (ALF) and Rs.100,000 to a registered Zonal/Town/City Level
Federation (TLF) for sustaining their activities.
4.15. SHGs under NULM will be eligible for Revolving Fund support
that can be towards corpus not earlier than one year after its formation. In
other words, only such a body, in existence and functioning for at least
one year, shall be eligible for benefit of the Revolving Fund. The decision
of whether a group has been in existence and functioning for more than
one year shall be taken on the basis of examination of the records of the
group as regards the number of meetings held, the collections made from
members towards group savings, the regularity of collection, the role of
the group in capacity building / training of its members, etc. Suitable
criteria will be prescribed by the Mission Directorate at the national level
regarding eligibility of SHGs and their federations to avail Revolving
Fund support. Guidelines will also be issued on the areas/activities where
Revolving Fund by SHGs and their federations can be utilised.
Component 2: Capacity Building and Training (CB&T)
4.16. NULM envisages that the urban poor are equipped with the
requisite skills and capacity for organizing them, creating and managing
their own institutions, linking up with banks, markets and government
agencies, managing their own business, promoting self-help and mutual
help, enhancing own credit-worthiness, demanding tenure security,
physical and social services and participating in decision-making
structures/ processes, etc. Accordingly, a multi-pronged approach is
contemplated under NULM for continuous capacity building of targeted
families – SHGs and their federations/collectives, government
functionaries at Central, State and City/Town levels, bankers, NGOs,
CBOs and other stakeholders. Particular emphasis would be placed on
engaging and equipping Community Organizers/community resource
persons/professionals/civil society organisations for capacity building of
the Self-Help Groups and linking them and their federations to Urban
Local Bodies, government programmes and schemes.
4.17. A key objective of the Capacity Building and Training component
is to transform the role of the M/o HUPA and State Agencies in charge of
urban poverty alleviation into providers of high quality technical
assistance in the fields of livelihoods promotion and poverty alleviation.
NULM will create national and state pools of professionals to support the
implementation of programmes for the poor. It is also envisaged that all
cities with a population of more than 300,000 as per 2011 Census
(numbering 154 in the country covering about 55 percent of total urban
population), will be provided with technical support at city level so that
they can implement programmes independently with support for the State
Mission Management Unit.
4.18. The CB&T component will include the sub-components of:
i. Technical Support at National, State, District and City levels;
ii. Service Centres/Aadhar Kendras at City/Town level; and
iii. Support for Training and other Capacity Building Programmes,
including Immersion and Exposure visits.
Guidelines will be issued by the Mission Directorate for implementation
of the above-mentioned sub-components.
Sub-Component 2.1 - Technical Support at National, State and City
4.19. The objective of this sub-component is to establish timely and high
quality technical assistance at Central, State, District and City levels for
rolling out and implementing NULM. This would be achieved by
establishing teams of high quality professionals at various levels and
institutionalizing partnerships with resource institutions/agencies, public
and private sectors considering their domain expertise and experience, for
providing technical assistance to cities and towns in various thematic
areas such as urban poverty alleviation, skills and livelihoods, social
development and convergence, community mobilisation, credit,
marketing, research and training, social audit, MIS etc. Task and theme
based teams called National/State/City Livelihoods Teams would be
established to meet the specific technical support needs. These mobile
teams would be drawn from out of a pool of resource persons in the
National Mission Management Unit (NMMU)/State Mission
Management Unit (SMMU)/District Mission Management Unit (DMMU)
for cities/towns with less than 300,000 population as per 2011
Census/City Mission Management Unit (CMMU) for the rest of the
cities, resource institutions, agencies etc., hired on retainer basis through
a transparent selection process to be followed.
4.20. In the initial phase of implementation, dedicated technical
assistance to States would be provided to facilitate their compliance with
NULM framework. This would include support for setting-up
SMMU/DMMU/CMMU (in cities with more than 300,000 population),
staffing 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. This would help States to prioritize
interventions and resources while formulating State/City Urban Poverty
Reduction Strategy/Action Plans. Specific technical assistance products
in each of programmatic themes would be offered to provide
implementation support to States/Cities for achieving NULM outcomes.
Sub-Component 2.2 – Service Centres/Aadhar Kendras at City/Town
4.21. The informal sector has traditionally been a source of service
provider for the middle and higher income groups in cities/towns through
the provision of services such as domestic help, security, gardening,
construction, plumbing, carpentry, electrical work, health care-related
work, etc. However, matching demand for such work with the supply of
services is the key to the long-term sustenance of any urban livelihoods
4.22. NULM will establish Service Centres or Aadhar Kendras, which
will act as “one-stop shop” for those seeking services from the informal
sector as well as for the urban poor promoting their services and products
or seeking information relating to employment and training. Aadhar
Kendras can also act as information, facilitation and counselling centres,
where the poor can access information on market demand/placement
opportunities and skills training programmes offered by reputed
institutions, including IITs, NITs, industry associations, engineering
colleges, management institutes, foundations and other reputed agencies
run by the Government, private or voluntary organisations and industry
associations to secure salaried employment with enhanced remuneration.
For those seeking to establish and sustain self-employment ventures, the
Aadhar Kendras can also facilitate necessary guidance and counselling
support. They can also be used for imparting training on basic skills such
as life skills, language skills and computer skills. Further, they can be
used as demonstration/sale outlets for products manufactured by the selfemployed
urban poor. The beneficiaries registered with Aadhar Kendras
for offering services to citizens will be issued Identity Cards by the Urban
Local Body at the time of registration.
4.23. The number of Aadhar Kendras in a city will depend on demand.
NULM envisages that one Aadhar Kendra be set up at zonal/city level to
cater to a population of about 100,000 persons. To start with, Aadhar
Kendras may be established in cities with a population more than 300,000
as per the 2011 Census. The central support for each centre would be
limited to Rs. 5 lakhs subject to State/Urban Local Body making building
available. This amount can be used for rent (where building is not
available), furniture, basic training facilities and equipment like
computers, product demonstration outlets, telephone and other
operational expenses, including staffing support on contract basis for 2
years. The Aadhar Kendras will be run on PPP mode or through
partnerships of federations of the poor with NGOs/CBOs/resource
institutions. They may eventually operate on a revenue-generating and
self-sustaining model. Urban Local Bodies may consider additional
support to these centres from their own resources. Proposals for Aadhar
Kendras will be approved by the State Urban Livelihoods Mission
Management Unit.
Sub-Component 2.3 – Training & Other Capacity Building
4.24. This component will be used for training and capacity building not
only for beneficiaries, but also for other stakeholders such as programme
officers, community professionals, NGO/CBO partners, Community
Organisers, Urban Local Body functionaries, etc. Part of the amount can
be used for community-to-community learning/exposure and immersion
visits of members of SHGs and their federations and programme-related
personnel. 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 State and city level will
be Rs.7500 per trainee – with higher rates for national/state level training
and lower rates for city and community level programmes. Scales of costs
will be as per guidelines issued by NULM. Resource
centres/institutions/agencies will be empanelled through a transparent
process as per guidelines to be issued by the Mission Directorate.
Component 3: Employment through Skills Training and Placement
4.25. This component of NULM will focus on providing assistance for
skill formation / up-gradation of the urban poor to enhance their capacity
for self-employment or better salaried employment.
4.26. 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 ST&P. The percentage
of women beneficiaries under ST&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 below poverty line (BPL). A
special provision of 3 percent reservation should be made for the
differently-abled under this programme. In view of the Prime Minister’s
new 15-Point Programme for the Welfare of Minorities, 15 percent of the
physical and financial targets under this component at the national level
shall be earmarked for the minority communities.
4.27. ST&P intends to provide training to the urban poor in a variety of
service, business and manufacturing activities as well as in local skills
and local crafts so that they can set up self-employment ventures or
secure salaried employment with enhanced remuneration. Skills training
will also cover vital components of the service sector like the
construction trade and allied services such as carpentry, plumbing,
electrical, electronics, tourism and hospitality, security, health care, etc.
and also in manufacturing low-cost building materials based on improved
or cost-effective technology using local materials.
4.28. Skill training will be linked to accreditation and certification and
preferably be undertaken on a Public-Private-Partnership (PPP) mode
with linkage to industry. It will involve reputed institutes, including IITs,
Polytechnics, NITs, industry associations, engineering colleges,
management institutes, skill training centres, foundations 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. For this purpose and for working
out other modalities such as training costs, duration of training
programme, curriculum, certification etc., a Committee comprising the
concerned State Secretary in charge, State Mission Director, National
Urban Livelihood Mission, State Mission Director, National Rural
Livelihoods Mission and State Director in charge of Technical Education
and Training/Modular Employable Skills will be constituted at the State
level. The Committee may involve industry experts as needed as invitees.
4.29. At the district / city level, a similar committee consisting of the
District Collector / Dy. Commissioner, Municipal Commissioner / CEO,
District Project Officer (DPO) in charge of NULM, District Officer in
charge of NRLM and District Officer in charge of Modular Employable
Skills (MES) and District Officer in charge of Industry will deal with
selection of agencies/institutions, training costs and duration and other
modalities at the district/city level. Suitable Guidelines will be issued by
the NULM Mission Directorate in this regard. Services of Building
Centres sponsored by the Housing and Urban Development Corporation
(HUDCO)/ Building Material Technology Promotion Council (BMPTC)/
Academies of Construction within the States/UTs may be utilized for the
purpose of construction-related training, as per local requirements.
4.30. For the purpose of skill training with placement, catalyst
organizations/skills training agencies will be selected nationally and in
each state through a process of competitive bidding/transparent selection
process. Selection of marketable trades, competent skills training
providers and certification that have national recognition are the keys to
the success of a skills training programme, as the same will ensure
absorption of the trained persons into the local industry. The catalyst
organizations/agencies should, therefore, be responsible for market scans
of skills, identification of institutes, conduct of proper training and
placement (at least 75%). The organizations/agencies should work closely
with reputed institutes, certifying institutions, industry, SHGs, their
federations and Aadhar Kendras in Urban Local Bodies for identification,
counselling, training, certification and placement of beneficiaries.
4.31. Given the diversity of local contexts, each State will decide the
skills important for their local economies. Apart from the hard skills,
training on soft skills should also be provided. This may include spoken
English/National/State Language, computer literacy, life skills including
training on office and social etiquette, punctuality, etc.
4.32. EST&P will have three sub-components:
i. Skills Training for Self-Employment;
ii. Skills Training & Placement for Wage Employment;
iii. Innovative & Special Projects
Sub-Component 3.1 – Skills Training for Self-Employment; Subcomponent
3.2 – Skills Training & Placement for Wage Employment
4.33. The cost per trainee under (i) shall not exceed Rs.12,000
(Rs.15,000 in the case of bank linkage, credit mobilization, establishment
of micro-enterprise and handholding). That under (ii) will have a ceiling
of Rs. 15,000 (Rs.18,000 in the case of NER States and J&K) including
placement costs. The sub-component 3.2 will focus on linking skills
training to placement and will be implemented at three levels – Central,
State and District/City level through a transparent competitive bidding
process to select competent skill-training agencies/providers on a PPP
mode. 40 per cent of the total funding under NULM will be made
available for implementation of EST&P component. 7 percent will be
used at the central level on multi-state projects. For the centrally
implemented component, no state share provision will be needed. 10
percent will be used at State level and 20 percent at the level of selected
districts/cities. 3 percent will be available centrally for innovative or
special skills and livelihoods projects. This component can be used for
skills training projects at the central level, if required. For proper
implementation of the Central/State/ District/City components of EST&P,
suitable guidelines will be issued by the Mission Directorate at the
national level.
4.34. Sub-components 3.1 and 3.2 will target urban population
determined eligible for benefit under the National Food Security
Act/Programme. While focus will on the priority segment living below
poverty line, SCs, STs, minorities, women and differently abled persons
falling outside the priority list but eligible for food security can be
covered under EST&P component of NULM.
4.35. Training cost will cover trainee selection, counselling, training
material, trainers’ fee, certification, toolkit, other miscellaneous expenses
to be incurred by the training institution and also placement-related
expenses. Cost for training in different sectors for varying durations with
placement/certification is to be worked out by the respective Mission
Management Units at Central, State and District levels subject to the
guidelines to be issued under NULM. Stipend will need to be avoided.
Sub-Component 3.3 – Innovative and Special Projects
4.36. This component shall focus on the promotion of novel initiatives in
the form of innovative/special projects. These initiatives may be in the
nature of pioneering efforts, aimed at catalysing sustainable approaches
to urban livelihoods, demonstrating a promising technology or making a
distinct impact on the urban poverty situation through scalable initiatives.
4.37. The projects must demonstrate strategies to create long-term and
sustainable wage employment and self-employment opportunities and
may cover organisation of the urban poor, formulation and
implementation of innovative skill development programme, provision of
support infrastructure, technology, marketing, capacity building, etc. or a
combination of these. Innovative / special projects may be undertaken on
a partnership mode involving CBOs, NGOs, semi-government
organizations, private sector, industry associations, government
departments, urban local bodies, national/state/city resource centres or
international organisations. The ceiling cost in respect of sanction for of a
single innovative/special project is Rs.1 crore.
4.38. This component will be centrally administered in conjunction with
the central component for skills training.
Component 4: Self-Employment Programme (SEP)
4.39. This component shall have three sub-components focusing on:
i. Self-Employment - Individual Enterprises (SEP-I);
ii. Self-Employment - Group Enterprises (SEP-G); and
iii. Technology, Marketing and Other Support – TM&OS.
Sub-Component 4.1 & 4.2 – Individual (SEP-I) and Group
Enterprises (SEP-G) - Loan and Subsidy
4.40. These sub-components will focus on 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. Besides generation of income, these sub-components will
strive to empower the urban poor by making them self-reliant and
providing a facilitating atmosphere for pursuing self-employment.
4.41. Coverage: The sub-components will be applicable to all cities and
towns. Within each town, it will be implemented by selecting slums or
whole clusters of poor in slums, so as to bring in efficiency in the
administration and delivery mechanisms as well as making the impact
4.42. Target Groups: SEP will target the urban poor individually and in
groups subjected to occupational vulnerability. It will lay special focus on
women, persons belonging to Scheduled Castes (SC)/Scheduled Tribes
(ST), differently-abled persons and such other categories as may be
indicated by the Mission from time to time. The percentage of women
beneficiaries under SEP-I and SEP-G 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 below poverty line (BPL). A
special provision of 3 percent reservation in the total number of
beneficiaries should be made for the differently-abled under SEP-I and
SEP-G. In view of the Prime Minister’s "New 15-Point Programme for
the Welfare of Minorities", 15 percent of the physical and financial
targets under the Self Employment Programme at the national level shall
be earmarked for the minority communities.
4.43. Educational Qualifications: No minimum or maximum
educational qualification is prescribed for selection of beneficiaries under
SEP-I and SEP-G. Where the identified activity for micro-enterprise
development requires skills training of an appropriate level, the same will
be provided to the beneficiaries before extending financial support.
4.44. Beneficiary Identification: A house-to-house Socio-economic
Survey for identification of the urban poor beneficiaries will be
conducted periodically seeking information on residential, social and
occupational vulnerabilities. The Ministry of Housing and Urban Poverty
Alleviation will communicate formats for conduct of survey and
guidelines for the same. Under the current programme of Socio-economic
Survey/Census, the Ministry of Housing & Urban Poverty Alleviation has
circulated broad guidelines and questionnaire to States/UTs for the
conduct of survey for the purpose of identification of urban poor.
4.45. Cluster Approach: Identifiably, slums or slum clusters should be
taken for support under NULM and efforts should be to ensure that all
eligible adults in the cluster are provided with benefits of skill
development, self-employment or wage employment so that no urban
poor household is left with an adult having no means of earning income.
Clusters should be so chosen that the SEP target groups get attention.
4.46. Prioritisation of Micro-Enterprises: SEP-I and SEP-G will
encourage under-employed and unemployed urban poor to set up small
enterprises relating to manufacturing, servicing and petty business for
which there is considerable demand. Local skills and local crafts should
be particularly encouraged. Each district/town/urban local body should
develop a compendium of such activities/projects keeping in view skills
available, marketability of products, costs, economic viability etc. For the
purpose of self-employment, focus may be on two key sectors i.e.
Production (Micro-industry), and Business.
4.47. Under the Micro-industry (Manufacturing) side, a group of microentrepreneurs
(hub) will be encouraged for setting up of enterprises
centered around and supported by a Micro Business Centre (MBC), that
may be established following a cluster approach. Space may be provided
by MBC in the form of working sheds with tools or micro-entrepreneurs
may work from their homes and access MBC facilities.
4.48. In the Business Sector, i.e. shop-based enterprises, kiosks/ spaces
may be leased out by ULBs to the urban poor for setting up microventures.
Vendors’ markets will be promoted by all ULBs. Mobile
vending outlets, running on motorized scooters could be encouraged with
suitable technological interventions. Beneficiaries could also run their
ventures from their own houses /shops.
4.49. Opportunities in the transport sector, viz. running of scooter
rickshaws, motorized cycle rickshaws for ferrying people/goods, auto
mechanics etc. could be explored in cities. Group Ownership/
Occupational Credit Groups concept in this sector may be encouraged.
4.50. Pattern of Financial Support: For setting of individual microenterprises,
the project cost ceiling will be Rs. 2.00 lakhs and the subsidy
will be at 25 percent of the project cost (subject to a maximum of
Rs.50,000/-). Margin Money is to be 5%. No collateral is envisaged other
than the micro-enterprise itself. Interest subsidy at 7 percent will be
available on bank loan to SHG member. But both interest subsidy and
capital subsidy cannot be availed. Loans can be taken in more than one
tranche, if necessary.
4.51. For setting up group enterprises, a group shall be entitled to a
subsidy of Rs.300,000/- or 35 percent of the cost of project or Rs.60,000/-
per member of the group, whichever is less. The remaining amount will
be mobilized as Bank Loan and Margin Money. Subsidy on interest rate
above 7 percent will be available on bank loans availed by SHGs from
mainstream financial institutions based on prompt repayment. But both
interest subsidy and capital subsidy cannot be availed. Loans can be taken
in more than one tranche subject the overall subsidy ceiling.
4.52. Individual and group enterprises will be encouraged to avail funds
(through loans) under the Credit Guarantee Fund Scheme for Micro and
Small Enterprises (CGMSE) of the M/o Micro Small and Medium
Enterprises (MSME) and Small Industries Development Bank of India
(SIDBI). This will enable a credit assistance of up to a limit of Rs.50
lakhs for both term loans and working capital, as is specified in the
CGMSE guidelines.
4.53. The lack of identity of the urban poor acts as an impediment to
their accessing credit from financial institutions. NULM will strive for
the establishment of a dedicated mechanism for creating guarantee and
other facilities in connection with lending to the urban poor so that they
can have easy access to institutional credit through credit cards, etc.
4.54. To be eligible for subsidy under the group enterprise, the SEP
group should consist of at least 5 urban poor women, preferably 10-15 or
may be a combined group with more than 70 percent belonging to urban
poor. It is essential that the group set itself up as a Self-Help Group/Thrift
and Credit Society undertaking thrift, mobilizing savings and credit.
Before starting an income-generating activity the group members must
get to know each other well, understand the group strategy, and also
recognize the strength and the potential of each member of the group. The
group will select an organizer from amongst the members. The group will
also select its own activity. Care should be exercised in the selection of
activity because the future of the group will rest on the appropriateness of
the selection. As far as possible, activities should be selected out of an
identified shelf of projects for the area concerned maintained by the
district/city authorities.
Sub-Component 4.3 – Technology, Marketing and Other Support
4.55. This component will mainly focus on handholding support for the
urban poor entrepreneurs who want to be self-employed and set up their
own small businesses or manufacturing units. Under this component,
Micro-Business Centres (MBC) will be established at cluster level (e.g.
handlooms/handicrafts, food processing, construction, glass and
ceramics, electrical and electronics, mechanical engineering, auto driving
and mechanics, metal works, etc.), supported with one-time capital grant
subject to the concerned State Government/Urban Local Body providing
the required land free of cost. This will be run on the basis of a Public-
Private-Partnership (P-P-P) model. MBCs could also be run by a society
of entrepreneurs themselves with manpower hired on contract basis.
Eventually MBCs must run on a revenue generating and self-sustaining
4.56. Micro-Business Centres can be planned to cover Services and
Business sectors, apart from Micro-industry. For businesses they can help
with project preparation, permissions from planning and regulatory
agencies, maintenance of accounts, securing of inputs, advertisement,
packaging, branding, deciding maximum retail price, marketing, etc.
MBC proposals will be approved at the level of the State Urban
Livelihoods Mission Management Unit
4.57. Small Enterprise Advisory Services (SEAS) will be provided
through the MBC, which may be supported by the District Mission
Management Unit of NULM. The specialists at the DMMU may
undertake handholding activities for the development of entrepreneurs
from the urban poor community and promote business development by
them from the concept stage to commissioning to sustainability. The
MBCs and Small Enterprise Advisory Services (SEAS) will specially
focus on handholding the urban poor micro-entrepreneurs who have
opted for self-employment, with a view to enhancing the success rate of
micro-enterprises. The respective State Mission Management Units,
adopting a cluster-based approach, will issue operative guidelines for
MBCs and SEAS. A Micro Business Centre under NULM can be
provided financial support not exceeding one-time amount of Rs.1.00
crore, with central assistance for the same being 75% for States other than
NER and Special Category States for which the central support will be
90%. States may provide additional share if needed.
4.58. Technology, marketing, consultancy (advice) and other support
may also be provided by States/cities to beneficiaries setting up microenterprises,
in relation to input procurement, production, packaging,
branding, marketing, etc. This can be accomplished by providing selling
places for the poor in the form of kiosks and rehri markets, setting up of
Aadhar Kendras for a variety of services (like those provided by
carpenters, plumbers, electricians, TV/radio/ refrigerator/mobile phone
mechanics, etc. who will be available to city residents on call), and
through liaison for establishment of 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.
4.59. Up to 20 percent (25 percent in the case North Eastern Region,
including Sikkim) of the State programme outlay (central plus state
share) can be utilized for infrastructure and marketing, including setting
up of Micro-Business Centres etc.
12th Plan – Key Targets
4.60. Key targets for the 12th Five Year Plan (2012-17) envisaged under
NULM are as follows:
A. Skill Training & Placement: 5 Million
B. Self-Employment: Individual and Group: 1 Million
C. Coverage under Self-Help Groups (SHGs) : 1 Million
V. NULM: Administration and Mission Structure
5.1. The National Urban Livelihoods Mission will have a three-tier
interdependent structure. At the apex of the structure will be the National
Mission Management Unit (NMMU), under the Ministry of HUPA, GoI
headed by a Mission Director. At the State level, there will be State
Mission Management Unit (SMMU) under an independent society
headed by a Mission Director reporting to the Secretariat Department
dealing with Municipalities, which is responsible for implementing skill
development/ employment /livelihoods promotion programmes. At the
District level, there will be a District Mission Management Unit
(DMMU) – for cities with less than 300,000 population - to supervise the
implementation NULM under the overall guidance of the State Mission -
suitably linked to the District Urban Development Agency (DUDA),
where the same exists. At the city level, a City Mission Management
Unit (CMMU) – for cities and towns with more than 300,000 population
- will be established to work under the overall guidance of the SMMU. At
the ULB level, setting up of the community institutions (viz. NHG/SHG,
NHC/ALF, CDS/TLF etc.) under the scheme aided by a cadre of
Community Organisers hired on contract basis as in SJSRY may be
spread gradually in the urban poor localities/slum clusters, in a phased
manner, so as to cover the entire urban poor population within a specified
period of time. This may be coordinated by the CMMU.
National Mission Management Unit (NMMU) under NULM
5.2. The ‘National Mission Management Unit (NMMU)’, set up in the
Ministry of Housing & Urban Poverty Alleviation under the overall
supervision of an Additional Secretary/Joint Secretary in-charge of
NULM, to be called the Mission Director, will support implementation of
the National Urban Livelihoods Mission. NULM will have a Governing
Council (GC) and an Executive Committee (EC). The GC will be
constituted under the chairpersonship of the Hon’ble Minister for
Housing and Urban Poverty Alleviation, GOI, whereas the EC will be
headed by Secretary (HUPA). The GC will have representation from
various Ministries at the level of Ministers, Member, Planning
Commission, Experts and Civil Society representatives.
5.3. The GC will be the policy-making body setting overall vision and
direction to the Mission, consistent with the national objectives. It will
lay down priorities and review overall progress and development of the
Mission. The GC will be empowered to lay down and amend operational
guidelines. However, the subsidy norms of the NULM as approved by the
Government shall in no circumstances be changed or exceeded for any of
the Mission components. The GC will meet at least twice a year.
5.4. The Executive Committee (EC) will be constituted under the
chairmanship of Secretary, Mo/HUPA, GoI, to oversee the activities of
the Mission and approve the state action plans to ensure that overall
objectives of the NULM are achieved within stipulated period. The EC
will ensure smooth functional linkages between different Missions,
departments and institutions through its constitution. The Chairperson of
the EC may nominate additional members to the Committee as per
requirement. The EC will meet at least once in every quarter.
5.5. The National Mission Management Unit (NMMU) will be the
implementation arm of the NULM. The Unit will provide necessary
support to the GC and EC and will administer the Mission. The Unit,
headed by the Mission Director and supported by at least four Directors
and a multi-disciplinary team of experts in the area of poverty alleviation,
skills and livelihoods, slum development/ redevelopment, community
mobilization, institution development, social development, credit,
marketing, research and training, MIS etc. would be put in place for
giving need/demand-based technical assistance to States and Cities. The
NMMU will have a dedicated MIS/e-Governance cell to implement online
monitoring of the Mission. The Unit will converge support from
Programme Management Units for JNNURM and RAY to ensure
convergence of NULM with shelter/basic services/slum development
5.6. The NMMU will perform the following functions:
i. Facilitate establishment of state level umbrella agencies by the state
governments for providing institutional support for poverty
elimination and livelihoods development programmes;
ii. Support state level umbrella organizations in the design and
implementation of pro-poor policies, programmes and reforms;
iii. Provide professional and technical support and guidance to the state
agencies by seeking out and disseminating pro-poor technologies and
institutional innovations through research and development and
forging linkages between the state agencies and the national network
of resource centres;
iv. Liaise with other Missions/ Ministries/Departments to explore areas
for convergent action and facilitate such convergence to enhance
capabilities and access to other entitlements such as food security,
education, health, social security etc.;
v. Explore and facilitate partnerships between National/ State Urban
Livelihoods Missions and public, private, NGO/CSO partners for
diversifying and sustaining the livelihoods of the urban poor;
vi. Undertake/commission studies to assess emerging selfemployment/
skill-based market employment opportunities and
disseminate the information to the State agencies;
vii. Study best practices in skills training/ self-employment/ microenterprise
development across the country and support their
replication in other parts through workshops, cross-learning visits and
exchange programmes;
viii. Develop capacity building and training modules for functionaries
of the peoples’ institutions as well as the state agencies and
district/city units, and other stakeholders participating in the poverty
alleviation programmes;
ix. Facilitate analysis and dissemination of the impact of changing
economic policies on the poor and play policy advocacy role;
x. Act as database on urban poverty statistics by accessing information
from multiple sources;
xi. Identify shortcomings in programme design and implementation and
facilitate debates/discussions thereof by experts for finding innovative
and workable solutions and their dissemination to the state agencies;
xii. Promote the institution of comprehensive monitoring and learning
systems at the state agencies and district/city units, including web
enabled MIS and community monitoring systems; and
xiii. undertake monitoring/ evaluation/social audit of the Mission
xiv. Establish a national resource centre on urban poverty, slums and
livelihoods as a repository of data, research documents, best practices
including books and e-resources, etc.
State Mission Management Unit (SMMU) under NULM
5.7. The implementation of National Urban Livelihoods Mission at the
State level will be managed by a two-tier structure – A Governing
Council and an Executive Committee.
5.8. The State Urban Livelihoods Mission supported by a State Mission
Management Unit (SMMU) will have a society structure and have
dedicated professionals/domain experts under an identified agency or a
new agency. It will be guided financially, technically and supported by
the NULM on need basis. The National and the State Missions will have
a symbiotic relationship. They will have mutual access to the knowledge
and services in the area of urban livelihoods and poverty alleviation.
5.9. The State Mission Management Unit (SMMU), headed by State
Mission Director (SMD) would be set up by all State Governments to
oversee the implementation of the Mission and other poverty alleviation
programmes in the State. The SMMU will assist the SMD in the effective
implementation of the Mission. As per the requirements, the State Unit
would include experts in the areas of social mobilization, institution
development, capacity building and training, microfinance development,
livelihoods promotion, skill training and placement support, gender,
communication, MIS, monitoring and evaluation, human resource,
finance, administration, etc. The SMMU will have a dedicated MIS/e-
Governance Cell to undertake online monitoring. The SMMU will
converge support from programme management units for JNNURM and
RAY to ensure convergence with shelter/basic services/slum
development programmes. The SMMU may engage thematic experts or
empanel reputed resource agencies to provide technical assistance/
capacity building to its implementation teams at the district/city levels.
The State Mission will have functional autonomy under the overall
charge of the Secretary/Principal Secretary concerned for implementing
the Mission in the State. The State level Mission will have a Governing
Body notified by the State Government.
5.10. Apart from providing technical inputs required for the promotion
of peoples’ institutions and the implementation of the Mission’s
programmes, the State Team will have the responsibility to ensure
collaboration among various line Departments of the State Government to
facilitate convergence of activities to derive optimal benefits from NULM
and other programmes. The team will use the services of national,
regional and state resource institutions for the effective implementation of
different components of the Mission’s programmes and will also ensure
proper coordination with the district and city levels units of NULM.
5.11. The state level agency will have the following specific
i. Prepare perspective/urban poverty reduction strategy and state action
plan by following a bottom-up approach in consonance with the
Mission goals and objectives and in close coordination with the state
level agencies responsible for implementation of poverty alleviation
ii. Provide professional support through a dedicated in-house
professional team or outsourced support, to the district/city units;
iii. Facilitate setting up of district units suitably linked with the DUDAs
and city units at ULB level to implement the Mission’s activities;
iv. Guide the district/city units in organizational and technical issues;
v. Facilitate implementation of the Mission’s programmes in the state
through district/city units, peoples’ institutions, NGOs/ CSOs and
private sector partners;
vi. Coordinate and develop convergence with other Missions and
programmes in the state for the required synergy to enhance the
capabilities of urban poor and their access to other entitlements such
as wage employment, food security, risk mitigation etc. necessary for
poverty alleviation;
vii. Organize state level skill training and placement support programmes,
capacity building activities, workshops, seminars and cross-learning
visits to promote the objectives of the Mission in the state;
viii. Document the progress and process of implementation and best
practices, including institution of comprehensive MIS and monitoring
ix. Conduct/commission studies to assess the impact of the Mission on
poverty alleviation; and
x. Facilitate institution of monitoring and learning systems and
undertake concurrent/periodic evaluation/social audit, etc.
District Mission Management Unit (DMMU) under NULM
5.12. At the district level, NULM will be managed by an Executive
Committee headed by the District Collector / Deputy Commissioner
supported by a District Project Officer (DPO) so designated. The
Committee will have District Officers in charge of NRLM, Industry,
Modular Employable Skills, District Lead Bank Officer and
representative of another Bank, 2 representatives of SHGs/Federation,
Municipal Commissioners/ Executive Officers of Cities/Towns having
population less than 300,000 as per 2011 Census and District Project
Officer in charge NULM as members. The State Government may issue
appropriate guidelines in the matter, if necessary. A dedicated unit
(District Mission Management Unit-DMMU), suitably linked to DUDA
under the District Project Officer, will be set up by all States. The
DMMU will be guided by the SMMU in planning and implementation of
livelihood promotion activities in collaboration with DUDAs. States
where DUDAs are not operating may opt for suitable regional support/
alternative structures.
5.13. The DMMUs will be responsible for implementing the Mission’s
programmes in the district following NULM guidelines. The district level
unit will function under the overall supervision of the state agency and as
such it will not be an independent society or entity. In case of cities with
a population less than 300,000 selected for NULM, DMMU will closely
supervise the city-level management units and undertake district level
programmes like skills training and placement. All other cities - with
population more than 300,000 - will be covered by their respective
5.14. The DPO will manage the Mission activities in the District under
the direction of SMMU and District Collector/Deputy Commissioner.
The DPO will be assisted by one Assistant Project Officer (APO) and a
team of functional specialists in the fields of social mobilization,
institution and capacity building, micro finance, livelihoods/ micro
enterprises, gender, communication/IEC, MIS etc. in addition to
administration and finance. These specialists will be appointed on
contractual basis and will undertake activities in the respective fields
under the leadership of District Project Officer and the overall guidance
and supervision of the SMMU team. DMMU will report progress of
NULM activities to SMMU.
5.15. The district unit will essentially function as a capacity building,
coordination, supervision, convergence and support unit for the field
implementation structures at the ULB level. In particular, the DMMU
will monitor the implementation of the programme in cities selected,
including setting up of and functioning of Micro Business Centres, Small
Enterprise Advisory Services, Aadhar Kendras, capacity building
activities and undertake concurrent evaluation/social audit of the
programme for cities within the district implementing NULM. DMMU
will liaise with line departments for implementing urban poverty
alleviation and livelihoods development programmes effectively and in a
convergent manner. The DMMU will select skill training
agencies/institutes and decide on training costs, training duration,
certification process, other modalities etc. following NULM guidelines.
City Mission Management Unit (CMMU) under NULM
5.16. At the city level, NULM will be managed by an Executive
Committee headed by the Municipal Commissioner/Chief Executive
Officer and comprising of officer in charge of NRLM, Industry, Modular
Employable Skills, representative of Lead Bank, 2 representatives of
SHGs/Federations and City Project Officer in charge of NULM as
members, The State Government may issue appropriate guidelines in the
matter, if necessary. A dedicated unit (City Mission Management Unit-
CMMU), suitably linked to SMMU will be set up by all States in cities
with a population of more than 300,000 persons as per 2011 census
selected under NULM managed by a City Project Officer (CPO). The
CMMU will be guided by the SMMU in planning and implementation of
livelihood development and other activities under NULM. They will
report progress directly to the SMMU.
5.17. CMMU will be responsible for implementing the Mission’s
programmes in the city following the NULM guidelines. The City Project
Officer (CPO) will ideally be of the rank of a Deputy Municipal
Commissioner/Executive Officer. The CPO will be assisted by one or
more Assistant Project Officers (APOs) and a team of functional
specialists in the fields of social mobilization, institution and capacity
building, micro finance, livelihoods/ micro enterprises, gender,
communication/ IEC, MIS etc., in addition to administration and finance.
In metropolitan cities, the CPO will be assisted by at least two Assistant
Project Officers (APO). The functional specialists will be appointed on
contractual basis and will undertake activities in the respective fields
under the leadership of City Project Officer.
5.18. The CMMU will be linked with the community development
structures in cities.
5.19. The MMUs at the State, District and City-levels are envisaged as
long-term structures for livelihood and skill development of the urban
poor on a continuous basis. Therefore, States will be expected to source
human resources for the State, District and city-level MMUs through
dedicated State/Municipal Cadres for Urban Community Development/
Poverty Alleviation(created where the same do not exist) who will be
supported by experts/professionals on contract basis. Until the
formulation and operationalisation of the cadres, funds will be available
for various positions for managing NULM on contract basis.
5.20. The various tiers of NULM will be closely interlinked and guided
by the common objective of promoting sustainable livelihoods of the
poor and work with the goal of eradication of urban poverty and
empowerment of the urban poor.
5.21. Support for NMMU, SMMU, DMMU and CMMU will be funded
under the Capacity Building and Training Component. A total of 5% of
the State / UT allocation under NULM can be utilized / distributed to the
administrative units and implementing agencies for A&OE purposes.
Guidelines for Implementation
5.22. The Mission Directorate in the Ministry of Housing and Urban
Poverty Alleviation (Mo/HUPA), Government of India will issue a set of
guidelines from time to time, for effective operationalisation,
implementation and monitoring of the Mission, in close consultation with
various stakeholders.
VI. Monitoring and Evaluation
6.1. Given the geographic scale and magnitude of the resources and
activities to be supported by the NULM, a comprehensive and robust
monitoring and evaluation system would be established. This will not
only track the implementation of progress online but also to provide
meaningful reports on household level impacts and implementation
experiences so as to enable Mo/HUPA and State Governments to take
corrective actions, if necessary. The monitoring activities will include,
but not limited to MIS, concurrent and impact evaluation studies, social
audit, etc.
6.2. States / UTs will be required to send in Monthly/Quarterly Progress
Reports (QPRs) in prescribed formats with regard to targets and
achievements. Apart from MPRs/QPRs, the Mission Directorate, NULM
may prescribe other progress reports as may be considered appropriate
from time to time. The States / UTs will establish suitable monitoring
mechanisms and monthly reporting from the CMMUs and DMMUs
regarding the progress of various components of NULM.
6.3. The Mission Directorate, NULM will facilitate the concurrent
evaluation of NULM at periodic intervals. The evaluation of the mission
will be undertaken during the course of its implementation to effect midterm
corrections and align the scheme on the achievement of its key
6.4. The cost of monitoring, evaluation and social audit activities will
be met under the A&OE component of NULM. States / UTs will be
encouraged to undertake online monitoring systems and submit progress
reports and other required information online. The NMMU will develop
suitable e-tools and training programmes in this regard.

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