Centre plans common interest groups, social infra, micro-credit for urban poor workers across 25 cities

• The Centre is working on a new urban livelihood mission for vulnerable groups, including domestic workers, construction workers and gig workers, with common interest groups on the lines of self-help groups.

Highlights:

• The Central government is developing a new urban livelihood mission aimed at providing support to vulnerable groups, such as domestic workers, construction workers, and gig workers.
• The mission is modeled after self-help groups (SHGs) and will focus on creating common interest groups, improving social infrastructure, and offering access to micro-credit.

Revamping DAY-NULM:

• The initiative is a second version of the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), which is set to be launched next year. Before its full implementation, the Ministry of Housing and Urban Affairs (MoHUA) will conduct a pilot project across 25 cities, targeting vulnerable worker groups like construction workers, waste management workers, care workers, and transportation workers.

Pilot Project Rollout:

• Target Groups: The pilot will focus on gig workers, construction workers, domestic workers, and other informal sector employees.
• Timeline: Preparations are already underway, with the enumeration of vulnerable households expected to begin after Diwali.
• Data Sources: The data from National Food Security Act (NFSA) beneficiaries, the Labour Ministry’s e-Shram portal, and the Building and Other Construction Workers Board will serve as the starting point for identifying the target population. Cities will then validate and profile the data.

Scope and Reach:

• The project aims to cover 50,000 households within a span of three months, with detailed socio-economic profiling, including household members’ employment and migration details. The total number of beneficiaries for the mission will be determined after data validation by the cities.

Cities Involved in the Pilot:

• The pilot project will cover cities across various states, including:
  • Eastern India: Guwahati, Bhubaneswar, Puri, Kolkata
  • Western India: Surat, Ahmedabad, Durgapur
  • Northern India: Lucknow, Agra, Varanasi
  • Southern India: Vijayawada, Visakhapatnam, Chennai, Tirupur
  • Other Cities: Bhopal, Indore, Patna, Aizawl, and others.

Key Features of the Project:

• Common Interest Groups: Worker categories will be grouped into common interest groups (CIGs) to foster collaboration. These groups will receive seed capital to facilitate internal lending among members.
• Social Infrastructure: Plans include developing labor chowks for construction workers and providing access to micro-credit schemes. Individuals can receive loans up to ₹4 lakh, while groups may access credit of ₹20 lakh.
• Integration with Welfare Schemes: Eligible workers will be enrolled into existing central welfare schemes to expand their financial and social safety nets.

Budget and Timeline:

• The pilot project has been approved with a budget of ₹180 crore and is expected to be completed by January 2025. Once completed, it will provide key insights for the larger rollout of the mission.

Prelims Takeaways:

• Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM)
• National Food Security Act beneficiaries