Deendayal Antyodaya Yojana National Urban Livelihoods Mission: Building Grassroots Institutions for Urban Poor

India’s urban population has witnessed remarkable growth, reaching 377 million as per the 2011 Census-a 31% increase from 2001. With cities contributing over 60% to the national GDP, urban areas have become engines of economic growth. However, this rapid urbanisation has also brought significant challenges for the urban poor, who face multiple vulnerabilities related to occupation, residence, and social exclusion. To address these complex challenges, the Government of India launched the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) in September 2013, replacing the earlier Swarna Jayanti Shahari Rozgar Yojana (SJSRY). This mission represents a comprehensive, people-centric approach to urban poverty alleviation through skill development, institutional capacity building, and sustainable livelihood generation.

Mission objectives and coverage 🔗

The primary objective of DAY-NULM is to reduce poverty and vulnerability among urban poor households by enabling access to gainful self-employment and skilled wage employment opportunities. The mission aims to achieve appreciable improvement in livelihoods on a sustainable basis through building strong grassroots-level institutions of the poor. What makes DAY-NULM distinctive is its core belief that the urban poor are inherently entrepreneurial and possess the capability to overcome poverty when provided with the right support systems.

The mission addresses two primary vulnerabilities faced by urban poor communities. Occupational vulnerability is tackled through skill development initiatives leading to market-based employment and support for setting up self-employment ventures. Social vulnerability is addressed through universal social mobilisation into community institutions that enhance solidarity, voice, and bargaining power. Residential vulnerability is addressed through convergence with programmes like Pradhan Mantri Awas Yojana (Urban).

DAY-NULM is implemented across all District Headquarter Towns and cities with populations of 100,000 or more according to the 2011 Census. The coverage has been extended to all 4,041 statutory cities and towns in India, covering almost the entire urban population. The primary target population consists of urban poor households identified through the Socio-economic and Caste Census (SECC) 2011, with special emphasis on disadvantaged groups including Scheduled Castes (SCs), Scheduled Tribes (STs), women, minorities, and persons with disabilities-covering up to 25% of the urban poor population.

Social mobilisation and institution development 🔗

The Social Mobilisation and Institution Development (SM&ID) component forms the foundation of DAY-NULM’s implementation strategy. The mission envisions universal social mobilisation of urban poor households into Self-Help Groups (SHGs) and their federations, with at least one member from each identified urban poor household-preferably women-brought under the SHG network.

Building community institutions 🔗

The institutional architecture under SM&ID follows a three-tier structure. At the base level, SHGs comprising 10-20 members are formed, focusing primarily on women. These SHGs then federate at the Slum or Ward level into Area Level Federations (ALFs), which in turn organise into City Level Federations (CLFs) at the city level. Existing area-based organisations created under the earlier SJSRY scheme-such as Neighbourhood Groups (NHG), Neighbourhood Committees (NHC), and Community Development Societies (CDS)-are progressively converted into this SHG-based institutional structure.

Both ALFs and CLFs are registered organisations that act as support systems for the poor in meeting their financial and social requirements. While only female SHGs are normally created, the mission permits male SHGs specifically for persons with disabilities. A Revolving Fund of Rs.10,000 per SHG is provided to eligible groups, while registered ALFs receive Rs.50,000 to sustain their activities. Resource Organisations are engaged to facilitate SHG formation and development, with a maximum expenditure of Rs.10,000 per SHG for formation, hand-holding, member training, bank linkage, and federation development over a two-year period.

City livelihood centres 🔗

City Livelihood Centres (CLCs) are established under the SM&ID component to bridge the gap between demand and supply of goods and services produced by the urban poor. These centres can be established by any Facilitating Agency including CLFs, SHGs, NGOs, CBOs, Resource Institutions, or private sector organisations through the Public Private Community Partnership (PPCP) model. CLCs serve as one-stop resource centres offering various services to urban poor entrepreneurs.

Employment through skills training and self-employment 🔗

The Employment Through Skills Training and Placement (EST&P) component focuses on assisting urban poor in developing and upgrading their skills for increased self-employment potential and salaried work opportunities. The component emphasises market demand-based training with a requirement that at least 30% of beneficiaries be women.

Skills training provisions 🔗

Training costs under EST&P include expenses for mobilisation, counselling, training materials, trainers’ fees, certification, toolkits, and placement facilitation. The maximum training cost is capped at Rs.15,000 per beneficiary for regular states and Rs.18,000 for North-Eastern and Special Category States. The training programmes are designed in consultation with industry to ensure relevance to actual market demands, and beneficiaries receive placement support upon successful completion of training.

Self-employment programme 🔗

The Self-Employment Programme (SEP) provides financial assistance to individuals and groups for setting up gainful self-employment ventures and micro-enterprises suited to their skills, training, aptitude, and local conditions. For individual micro-enterprises, the maximum project cost is Rs.2,00,000, while group enterprises are eligible for up to Rs.2 lakh per member or Rs.10 lakh, whichever is lower.

No margin money is required for loans up to Rs.50,000, and for higher amounts, preferably 5% (maximum 10%) of project cost serves as margin money. No collateral security is required, with only the assets created being hypothecated to banks. The repayment schedule ranges from 5 to 7 years after an initial moratorium of 6-18 months. DAY-NULM provides interest subsidy on bank loans-the difference between the prevailing rate of interest and 7% per annum is reimbursed to banks, making credit more affordable for the urban poor. Women SHGs who repay loans on time receive an additional 3% interest subvention.

Support to urban street vendors 🔗

Street vendors constitute a significant segment of urban population at the bottom of the pyramid, providing self-employment opportunities and contributing to urban economic growth. DAY-NULM addresses their livelihood concerns through a dedicated Support to Urban Street Vendors (SUSV) component, which can utilise up to 5% of the total mission budget.

The component includes conducting city-wide street vendor surveys, registering vendors, and issuing identity cards. Vendors receive access to skill training under EST&P and micro-enterprise development support under SEP. The programme also facilitates development of City Street Vending Plans, pro-vending urban planning policies, and access to institutional credit, social security convergence, and digital payment systems. This comprehensive approach ensures that street vendors can access emerging market opportunities while gaining formal recognition and protection.

Scheme of shelter for urban homeless 🔗

The Scheme of Shelter for Urban Homeless (SUH) addresses the critical needs of the most vulnerable urban population-those living without shelter or social security on the streets. The Supreme Court of India has recognised that the right to dignified shelter is a necessary component of the right to life under Article 21 of the Constitution.

Shelter provisions and design 🔗

SUH aims to provide permanent, all-weather shelters that remain operational 24 hours a day, 7 days a week. The provisions mandate permanent community shelters for a minimum of 100 persons per lakh (100,000) of urban population. Each shelter typically accommodates 50 to 100 persons, with minimum space allocation of 50 square feet (approximately 4.65 square metres) per person. Priority is accorded to cities with populations exceeding one million as per the 2011 Census and cities with special social, historical, or tourist significance.

Shelters are designed according to specific categories including men shelters for single working men, women shelters with dedicated facilities for women and their dependent children, family shelters with privacy provisions and shared common spaces, and special shelters for elderly persons without care, mentally or physically challenged individuals, and other vulnerable groups. Every Urban Local Body, regardless of population size, must construct at least one shelter for women.

Facilities and entitlements 🔗

Shelters under SUH are equipped with essential facilities including well-ventilated rooms, potable drinking water, adequate bathing and toilet facilities, standard lighting, fire protection measures, first aid kits, pest and vector control, personal lockers for storage, common recreation spaces, and kitchen or cooking areas. Importantly, shelters serve as convergence points for various entitlements including Aadhaar cards, Elector’s Photo Identity Cards, BPL cards, PDS ration cards, and direct benefit transfers under various government schemes. Linkages with Anganwadi centres, Primary Health Centres, and childcare facilities ensure that shelter residents can access comprehensive social assistance.

Administration structure and funding pattern 🔗

DAY-NULM operates through a three-tiered administrative structure ensuring coordination from national to local levels. At the apex, the National Mission Management Unit (NMMU) functions as an autonomous society under the Ministry of Housing and Urban Affairs, providing overall guidance and policy direction. The Mission Director at NMMU is supported by Directors, Under Secretaries, Section Officers, and a technical support team.

At the state level, State Mission Management Units (SMMUs) are established under the leadership of Mission Directors who coordinate implementation across all urban areas within their jurisdictions. At the city level, City Mission Management Units (CMMUs) operate under SMMU direction, headed by City Project Officers (CPOs) who are assisted by functional specialists in social mobilisation, institution and capacity building, microfinance, and livelihoods or micro-enterprises.

Technical support and funding 🔗

Technical Advisory Groups (TAGs) at national, state, and local levels include experts in skills and livelihoods, financial inclusion, social mobilisation, capacity building, and industry association members. These groups provide specialised guidance for effective implementation of various mission components.

The Capacity Building and Training (CB&T) component aims to transform Ministry and State agencies into providers of high-quality technical assistance in urban livelihoods promotion. Funding for DAY-NULM is shared between the Centre and States or Union Territories. For North Eastern States and Special Category States (including Uttarakhand, Himachal Pradesh, and Jammu & Kashmir), the sharing ratio is 90:10 (Centre:State). For all other States and Union Territories, the ratio is 75:25, though some sources indicate certain components follow a 60:40 pattern. Union Territories without legislatures receive 100% central funding.

DAY-NULM places high emphasis on convergence with schemes and programmes of relevant line Ministries and Departments dealing with skills, livelihoods, entrepreneurship development, health, education, and social assistance. The mission encourages partnerships with the private sector and civil society organisations for providing shelters, skill training, and support services to urban poor entrepreneurs.

What do you think? With urban poverty being multi-dimensional and cities increasingly becoming engines of economic growth, how can grassroots institutions like SHGs and their federations be further strengthened to ensure sustainable livelihoods for the urban poor? What role can technology and digital platforms play in connecting urban poor entrepreneurs with larger markets and financial services?

References

1. https://nulm.gov.in/
2. https://en.wikipedia.org/wiki/Deen_Dayal_Upadhyaya_Antyodaya_Yojana
3. https://dohua.assam.gov.in/portlet-innerpage/services-offered-under-day-nulm
4. https://bankofmaharashtra.in/nulm
5. https://sulm.delhi.gov.in/sulm/shelter-urban-homeless-suh
6. https://mohua.gov.in/upload/uploadfiles/files/10(1).pdf