The Cabinet Committee on Economic Affairs has approved the National Urban Livelihoods Mission (NULM) with an allocation of approximately Rs. 6,405 crore.

The Mission of NULM is to reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self-employment and skilled wage employment opportunities, resulting in an appreciable improvement in their livelihoods on a sustainable basis, through building strong grassroots level institutions of the poor. The mission would also aim at providing shelter equipped with essential services to the urban homeless in a phased manner. In addition, the Mission would also address livelihood concerns of the urban street vendors also by facilitating access to suitable spaces, institutional credit, social security and skills to the urban street vendors for accessing emerging market opportunities.

NULM will rest on the foundation of community mobilization and women empowerment. NULM envisages universal mobilisation of urban poor households into thrift and credit-based Self-Help Groups (SHGs) and their federations/collectives. These groups will serve as a” support system for the poor, to meet their financial and social need. Under the Mission, City Livelihood Centres (CLCs) will be established in Mission cities to provide a platform whereby the urban poor can market their services and access information on self-employment, skill training and other benefits.

The Support to Urban Street Vendors (USV) component will cover a socio-economic survey of street vendors, development of pro-vending urban planning and vendors’ markets, credit enablement of vendors, skill development and micro-enterprise development and convergence under various schemes of the Government.

NULM would aim at providing shelter for the urban homeless equipped with essential services. The shelters should be permanent all-weather 24 x 7 shelters for the urban homeless. For every one lakh urban population, provisions will be made for permanent community shelters for a minimum of one hundred persons. Depending upon local conditions each shelter could cater to between 50 and 100 persons.

The NULM will be implemented in two phases: Phase I (2013-2017) and Phase II (2017-2022). In Phase I, NULM will target all cities with a population of one lakh or more and district headquarter towns with a population of less than one lakh as per Census of India 2011. However, other towns may be allowed in exceptional cases on the request of the States. Funding will be shared between the Centre and the States in the ratio of 75:25.