Maarg Manthan · Topic 2.5

National Urban Livelihoods Mission (NULM)

Current Affairs & Government Schemes › Urban Development Schemes · Topic 2.5

The National Urban Livelihoods Mission (NULM) is a Centrally Sponsored Scheme of the Ministry of Housing and Urban Poverty Alleviation, launched on 24 September 2013 by restructuring the Swarna Jayanti Shahari Rozgar Yojana. It aims to reduce poverty and vulnerability of the urban poor by enabling them to get gainful self-employment and skilled wage employment, and to give shelter to the urban homeless. The mission works through skill training, self-help groups, bank credit, support for street vendors and shelters, and was renamed in 2016 after Deendayal Upadhyaya.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Urban Development Schemes

At a Glance

Launch 24 September 2013
Predecessor Swarna Jayanti Shahari Rozgar Yojana (SJSRY), 1997
Ministry Housing and Urban Poverty Alleviation, now Housing and Urban Affairs
Target Urban poor, street vendors, homeless
Renamed DAY-NULM in 2016
Exam link UPSC Prelims, Current Affairs and Government Schemes: Urban Development Schemes

Where Does It Fit?

This is the fifth topic of the macro on urban development. This page tells the story of how the mission was designed in 2013 and why the older scheme was replaced, while the next page, Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM), follows the renamed mission and its current status. Previous topic: Swachh Bharat Mission – Urban (SBM-U). Next topic: Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM).

Why Was NULM Created?

Issue with SJSRY	Design change in NULM
Subsidy led loans to individuals	Shift to group enterprises and self-help groups with bank linkage and interest subvention
Focus on a few trades	A wide menu of skills linked to market demand, with placement support
Little help for street vendors	A dedicated component for street vendors, with identity cards, vending zones and credit
No shelter for the homeless	A component to build and run permanent community shelters for the urban homeless
Weak community institutions	Formation of federations of urban poor and a mission approach like the rural one
Low capacity of city staff	Capacity building and training for city officials and community resource persons

What Are the Features of NULM?

Type: a Centrally Sponsored Scheme, with the Centre and states sharing cost in a 75:25 ratio, and 90:10 for special category states
Coverage: all statutory towns, with phased cover of cities, starting with towns of 1 lakh and above
Employment through Skill Training and Placement: training of the urban poor for jobs, with aligned costs for training and placement
Self-Employment Programme: loans for individual and group micro enterprises, with interest subvention to bring the rate down to about 7 per cent
Social Mobilisation and Institution Development: forming self-help groups and federations of the urban poor
Shelter for Urban Homeless: permanent community shelters with basic services, in cities with large homeless numbers
Support to Urban Street Vendors: surveys, identity cards, vending markets, and credit, linked with the Street Vendors Act of 2014
Innovative and Special Projects: a small component for pilots and special urban projects

What Else Should You Remember?

Predecessor: The Swarna Jayanti Shahari Rozgar Yojana was launched in 1997 and had two main parts, one for self-employment and one for wage employment
Reasons for the shift: Reviews showed that SJSRY did not reach the poorest, gave small subsidies and had high loan default and low training quality
Urban poverty: Urban poverty is tied to informal work, lack of tenure and poor services, so a mission with many components was designed
Link with law: The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 gave a legal base for the street vendor component
Skill link: Training under the mission is aligned with the National Skills Qualification Framework
Homeless shelters: The Supreme Court in the case of homeless people urged cities to provide shelters, and the mission gave funds for shelters for urban homeless in cities
Reform: Self-help groups of the urban poor were linked to banks through a revolving fund and a Community Based Organisation structure, as in the rural mission
Women: A large share of beneficiaries of self-employment and group loans are women
Ministry change: The Ministry of Housing and Urban Poverty Alleviation was merged with the Urban Development Ministry in 2017 to form the Ministry of Housing and Urban Affairs
Gaps: Urban local bodies had weak staff, banks were slow to lend, and the homeless shelters were few compared with need
Link: Livelihood support also feeds housing for workers, as in Pradhan Mantri Awaas Yojana – Urban (PMAY-U)

Why Does It Matter for the Exam?

Launch: 24 September 2013, replacing SJSRY of 1997
Funding: Centre and states 75:25; 90:10 for special category states
Components: skills, self-employment, shelters, street vendors, mobilisation
Law link: Street Vendors Act, 2014
Renaming: DAY-NULM in 2016

As an analytical point, urban livelihoods programmes must work with informal markets, not against them. Vending rights, shelters and skills linked to local demand matter more than small subsidies. Strong urban bodies are needed to deliver this.

Why Is This Topic Important?

Predecessor SJSRY to NULM
Components Many parts in one mission
Street vendors Legal base of 2014

What Came Next?

The next topic follows the same mission after its renaming in 2016. Next topic: Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM).

Key People and Terms

SJSRY Older urban poverty scheme
SHG Self-help group
Interest subvention Subsidy on loan interest
Shelter Home for urban homeless
Street vendor Seller in public space
Federation Group of SHGs

Exam Corner

Points to Remember

Launched on 24 September 2013.
Replaced SJSRY.
Funding 75:25; 90:10 for special category.
Street vendor law: 2014.
Renamed DAY-NULM in 2016.

Do Not Confuse With

NULM and DAY-NRLM Urban versus rural livelihood missions
NULM and PM SVANidhi A mission component versus a micro-credit scheme for vendors
SJSRY and NULM Older individual subsidy scheme versus a group based mission

Memory Hook

Skill, group, shelter, vendor: one mission for the urban poor.

Mains Angle

Questions ask about the design of urban poverty programmes and how they differ from earlier ones. These points give a balanced frame.

Strengths Group approach, shelters, vendor support
Weaknesses Weak city capacity, bank reluctance
Way ahead Legal rights, skill linked jobs, bank partnership

A Question You May Face

An original practice question, not a past paper question.

“Why was the National Urban Livelihoods Mission introduced in place of SJSRY, and how far did it address urban poverty?”

How to Answer

Intro SJSRY and its gaps.
New design Group, skills, shelters, vendors.
Gaps Capacity and credit.
Way Rights and bank links.

GS Relevance

Prelims: launch, predecessor, components, funding pattern. GS Paper 2: urban poverty, welfare schemes. GS Paper 3: inclusive growth and employment.

Frequently Asked Questions

What is the National Urban Livelihoods Mission?

NULM is a Centrally Sponsored Scheme launched on 24 September 2013 by the then Ministry of Housing and Urban Poverty Alleviation. It replaced the Swarna Jayanti Shahari Rozgar Yojana and aims to reduce urban poverty through skills, self-employment, support for street vendors and shelters for the urban homeless.

Which scheme did NULM replace?

NULM replaced the Swarna Jayanti Shahari Rozgar Yojana, which began in 1997. That older scheme gave subsidy linked loans to individuals and some wage employment, but it had low reach among the poorest and weak training quality, so the new mission moved to group based and market linked methods.

What are the components of NULM?

The components are 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 component has its own guidelines and cost norms.

What is the funding pattern of NULM?

NULM is a Centrally Sponsored Scheme in which the Centre and the states share costs in the ratio 75:25, while special category states in the north-east and hills share in 90:10. Some components, such as skill training, have fixed unit costs defined in the mission guidelines.

Which ministry runs NULM today?

NULM was launched under the Ministry of Housing and Urban Poverty Alleviation, which was merged with the Urban Development Ministry in 2017 to form the Ministry of Housing and Urban Affairs. The mission was renamed Deendayal Antyodaya Yojana – NULM in 2016, and its present status is covered on the next page.

PYQ Practice — Statement Analysis

1 NULM was launched in 2013.

True

On 24 September 2013.

2 NULM replaced the Swarnajayanti Gram Swarozgar Yojana.

False

It replaced the urban SJSRY. SGSY was replaced by the rural mission.

3 NULM includes support to urban street vendors.