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Self-employment scheme to become livelihood mission

New Delhi, June 24 (IANS) The Cabinet Committee on Economic Affairs (CCEA) Thursday approved the restructuring of a centrally-sponsored rural self-emeployment scheme as a National Rural Livelihood Mission (NRLM) given past experiences, shortcomings pointed out by research studies and recommendations by various committees.

Home Minister P. Chidmabaram said that NRLM will function in a mission mode for target-based delivery of outcomes. It will follow a demand driven approach which would allow the states to formulate their own poverty alleviation plans on the basis of available allocation, resources and skills, he said.

He was briefing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

The mission aims at reducing poverty through promotion of diversified and gainful self-employment and skilled wage employment opportunities to increase income of the rural poor on a sustainable basis.

The mission will broadly adopt objectives such as universal social mobilisation, formation of people’s institutions, universal financial Inclusion, training and capacity building, enhanced package of economic assistance for setting up of micro enterprises and larger role for Self Help Groups (SHGs).

Under the mission during 10 lakh SHGs will be formed the remaining period of the 11th Plan and 40 percent of the SHGs will be taken up to micro-enterprise level.

Formation of federations will be actively encouraged at various levels under NRLM.

About 17 lakh rural below poverty line (BPL) youth will be provided skill upgradation training for placement in the private sector for wage employment under the special projects component of NRLM.

The SGSY has been implemented in all states except Delhi and Chandigarh since 1999. It was primarily designed to promote self-employment oriented income generating activities for below poverty line households in the rural areas.

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