Tamil Nadu Demands Rs 350 Crore for Urban Livelihood Mission Amidst Funding Uncertainty

Key Highlights

• Tamil Nadu seeks significant funding of Rs 350 crore for its urban livelihood mission.
• Maharashtra is seeking funding of Rs 81 crore.
• Madhya Pradesh is seeking funding of Rs 101 crore.
• Tripura is seeking funding of Rs 6.5 crore.

At least five states, including Tamil Nadu, Karnataka, and Maharashtra, have expressed concerns to the Centre over the lack of clarity on financial support for the flagship urban livelihood mission. This initiative has benefited over one crore women over the last decade, providing them with sustainable livelihood opportunities.

The states have sought the release of funds under the scheme. With Tamil Nadu demanding Rs 350 crore. Maharashtra Rs 81 crore, Madhya Pradesh Rs 101 crore, and Tripura Rs 6.5 crore, among others.

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Tamil Nadu Chief Minister C Joseph Vijay has highlighted the need for promoting self-help group activities in urban areas to realise the objectives of the Urban Livelihood Mission and ensure sustainable livelihood opportunities for the urban poor. He also emphasized the importance of financial inclusion and social protection for this vulnerable population.

The proposed assistance would enable the states to sustain the existing urban livelihood ecosystem. Protect and strengthen community institutions, and ensure continuity of essential Mission personnel and services.

The pilot project, Deendayal Jan Aajeevika Yojana - Shehari (DJAY-S), was carried out until December 2025. Although the pilot was initially intended to pave the way for a new scheme, it is no longer under consideration. With the new scheme in limbo, Chennai and Tiruppur were selected for the pilot from Tamil Nadu.

According to MoHUA sources, states were responsible for recruiting support staff for the functioning of the scheme, as per the operational guidelines under NULM. The Ministry had advised all states to retain the existing Mission structure and workforce to ensure continuity of services and uninterrupted support to beneficiaries.

Karnataka has also sought clarification on using the amount released for the pilot scheme for payment of staff salary.

MoHUA sources revealed that around Rs 9,000 crore was spent by the Centre and states in the 10-year NULM period. The scheme provided a revolving fund of Rs 10,000 to each group.

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As well as training, interest subvention for bank loans, and help in setting up micro enterprises. The pilot had focused on six vulnerable occupational groups - gig workers. Transportation workers, construction workers, waste workers, care workers, and domestic workers.

Self-help groups established under NULM are now being leveraged by various ongoing missions of the government of India. This includes Pradhan Mantri Awas Yojana, Swachh Bharat Mission, AMRUT, and PM Surya Ghar: Muft Bijli Yojana.

NULM was launched in 2014 as the successor to the UPA-era Swarna Jayanti Shahari Rozgar Yojana. The initiative led to the creation of 10.02 lakh self-help groups, covering about 1 crore women across cities.

As of September 30, 2024, MoHUA reported that over 1 crore urban poor women were brought into Self Help Groups, over 39.43 lakh livelihoods were created through skill training and placement, access to subsidized credit was provided to individuals and groups for setting up micro-enterprises, and over 6.56 lakh SHGs received bank linkage.