Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)
Current Affairs & Government Schemes › Urban Development Schemes · Topic 2.6
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) is the name given in 2016 to the National Urban Livelihoods Mission, run by the Ministry of Housing and Urban Affairs. It is a Centrally Sponsored Scheme that reduces urban poverty by organising the urban poor into self-help groups, training them for jobs, giving bank credit at low interest, supporting street vendors and building shelters for the homeless. The mission was designed for 2013 to 2017, extended several times and its formal period is reported to have ended in 2024, with a successor under consideration.
6 min read · UPSC Prelims · Current Affairs & Government Schemes · Urban Development Schemes
At a Glance
- Renamed 2016, from NULM (2013)
- Ministry Housing and Urban Affairs
- Type Centrally Sponsored Scheme
- Core units Urban SHGs, skill training, shelters, vendors
- Status Formal period reported to have ended in 2024; successor pending
- Exam link UPSC Prelims, Current Affairs and Government Schemes: Urban Development Schemes
Where Does It Fit?
This page continues the story from Urban Poverty Alleviation, now…">National Urban Livelihoods Mission (NULM) and looks at the renamed mission, its components in practice and the question of its present status. The rural counterpart is covered in Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). Previous topic: National Urban Livelihoods Mission (NULM). Next topic: Heritage City Development and Augmentation Yojana (HRIDAY).
What Are the Components of DAY-NULM in Practice?
| Component | What it does |
|---|---|
| Employment through Skill Training and Placement (EST&P) | Trains urban poor youth in demand based skills, with certification and placement support, aligned with the national skills framework |
| Social Mobilisation and Institution Development (SM&ID) | Forms self-help groups, area level federations and city level federations, with a revolving fund of Rs 10,000 for each eligible SHG |
| Capacity Building and Training (CB&T) | Trains mission staff, community resource persons and city officials |
| Self-Employment Programme (SEP) | Interest subvention on bank loans to individuals and groups, to bring the rate down to about 7 per cent |
| Shelter for Urban Homeless (SUH) | Funds to build and run all-weather permanent shelters, with basic services |
| Support to Urban Street Vendors (SUSV) | Surveys, identity cards, vending zones, credit, and social security linked with the Street Vendors Act |
| Innovative and Special Projects | Pilots on new ideas, with a small share of the budget |
What Happened to the Mission After 2024?
- Mission period: the mission was approved for a limited time and extended several times. As reported, its formal phase concluded in 2024
- Pilot: a pilot called DJAY-S was reported to have begun in October 2024 in selected cities, as a bridge towards a new design
- Funding gap: state governments and mission staff have asked for funds to continue support to self-help groups, as reported. No final cabinet approval of a successor mission had been reported when this page was prepared
- Effect on groups: a break in funding threatens bank linkages, training of workers and shelters, so civil society has asked for a quick decision
- Link to vendors: the street vendor component was partly moved into the loan scheme in PM SVANidhi Scheme (Street Vendors), which was extended to 2030
- Convergence: urban SHGs are being linked with schemes for waste management and city services, as in sanitation work
- Data: a mission management information system tracks groups, loans and shelters
- Exam caution: state the status with a date and say as reported, since policy is still moving
What Else Should You Remember?
- Interest rate: Bank loans to SHGs and individuals were to be available at 7 per cent, with the subsidy paid by the Centre. Prompt repayers got an extra benefit in some designs
- Shelters: The Supreme Court in the Peoples Union for Civil Liberties case on the right to food and the later order on homeless shelters directed cities to provide shelter. The mission gave funds to meet this duty
- Shelter norms: Cities were expected to have a shelter for every one lakh people. Reported coverage fell short of this norm
- Women: Most urban SHG members are women, and the mission has been described as a women led collective credit programme
- Credit limits: Group loans and individual loans have ceilings set by the mission, and banks have complained of low recovery in some places
- Link with housing: Better income helps families in affordable housing, as in Pradhan Mantri Awaas Yojana – Urban (PMAY-U)
- Link with cities: Livelihood work is also tied to waste and sanitation workers, as in Swachh Bharat Mission – Urban (SBM-U)
- Institution: The Ministry of Housing and Urban Affairs runs the mission through State Urban Livelihoods Missions and city mission management units
- Evaluation: Reviews found that SHG formation was strong in some states, such as Kerala with Kudumbashree, but weak in others
- Compared with rural: The rural mission has a much larger SHG base and a settled funding line, while the urban mission has remained small and uncertain
Why Does It Matter for the Exam?
- Naming: NULM became DAY-NULM in 2016
- Components: seven components with the SEP interest rate of 7 per cent
- Shelter: SUH for urban homeless
- Vendors: SUSV and the Street Vendors Act, 2014
- Status: formal phase ended in 2024; successor awaited
As an analytical point, the urban poor rely on informal work and unsafe housing, so a stop-start mission hurts them more than a steady one. A permanent, funded urban livelihood programme, linked to cities and banks, is needed. A clear legal base would end the uncertainty of mission periods.
Why Is This Topic Important?
- Renaming Name changed in 2016
- Components Seven parts
- Status Policy in transition
What Came Next?
The next topic covers an older central scheme for the conservation of historic cities. Next topic: Heritage City Development and Augmentation Yojana (HRIDAY).
Key People and Terms
- EST&P Skill training and placement
- SM&ID Mobilising urban poor into groups
- SEP Self-employment programme
- SUH Shelter for urban homeless
- SUSV Support to street vendors
- SULM State Urban Livelihoods Mission
Exam Corner
Points to Remember
- Renamed in 2016.
- Interest subvention: loans at about 7 per cent.
- Revolving fund: Rs 10,000 per SHG.
- Shelters: SUH component.
- Formal phase reported ended in 2024.
Do Not Confuse With
- DAY-NULM and DAY-NRLM Urban versus rural livelihood missions
- DAY-NULM and PM SVANidhi A mission versus a credit scheme for vendors
- SUH and PMAY-U Shelters for the homeless versus housing for the poor
Memory Hook
Group, skill, credit at seven, shelter and vendor: the urban mission with a question mark.
Mains Angle
Questions ask about urban poverty programmes and the uncertainty of their funding. These points give a balanced frame.
- Strengths SHG model, shelters, vendor support
- Weaknesses Funding breaks, small scale, weak city staff
- Way ahead Permanent programme, legal base, bank links
A Question You May Face
An original practice question, not a past paper question.
“Examine the achievements and limitations of DAY-NULM and suggest a design for a successor urban livelihoods programme.”
How to Answer
- Intro Mission and renaming.
- Achievements SHGs, shelters, vendors.
- Limits Funding and capacity.
- Way Permanent and funded programme.
GS Relevance
Frequently Asked Questions
What is DAY-NULM?
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission is the renamed National Urban Livelihoods Mission, run by the Ministry of Housing and Urban Affairs. It is a Centrally Sponsored Scheme that supports the urban poor with self-help groups, skill training, bank credit, street vendor support and shelters for the homeless.
When was NULM renamed DAY-NULM?
The National Urban Livelihoods Mission, launched on 24 September 2013, was renamed Deendayal Antyodaya Yojana – National Urban Livelihoods Mission in 2016 in line with the rural mission, which was also renamed in 2015. The change was in name and branding, while the main components of the mission remained the same.
What are the components of DAY-NULM?
DAY-NULM has seven components: Employment through Skill Training and Placement, Social Mobilisation and Institution Development, Capacity Building and Training, the Self-Employment Programme, Shelter for Urban Homeless, Support to Urban Street Vendors, and Innovative and Special Projects. Each has its own financial norms.
What interest rate does DAY-NULM offer?
Under the Self-Employment Programme, banks lend to individuals and SHGs, and the mission pays an interest subvention so that the effective rate comes to about 7 per cent. A small revolving fund of Rs 10,000 is also given to each eligible self-help group to start internal lending.
What is the latest status of DAY-NULM?
As reported, the formal mission period ended in 2024, and a pilot called DJAY-S began in selected cities as a bridge. Final approval of a successor programme had not been reported when this page was prepared, so check Ministry notices for any new mission or extension.
PYQ Practice — Statement Analysis
1 DAY-NULM is the renamed NULM.
Renamed in 2016.
2 DAY-NULM has a component for shelters for the urban homeless.
The SUH component.
3 DAY-NULM is run by the Ministry of Rural Development.
It is run by the Ministry of Housing and Urban Affairs.
4 DAY-NULM gives each eligible SHG a revolving fund of Rs 10,000.
To start internal lending.
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