Two schemes — one to impart job-oriented skills to help urban poor
get gainful employment and another to provide housing to slumdwellers —
are likely to be approved by the cabinet on Tuesday. Both schemes are
piloted by the Union housing and urban poverty alleviation ministry. 

In 2009, NREGA which targeted the rural poor was perceived by the
Congress to be a major vote plank for the UPA. Ahead of the 2014 polls,
along with the ambitious food security bill that the Parliament passed
on Monday, the UPA hopes to encash on the NULM  and RAY as well.

While the National Urban Livelihood Mission (NULM) proposes to give
skill development training to four million poor youth living in cities
during the 12th plan period (2012-17), under the Rajiv Awas Yojana (RAY)
the Centre plans to build about two million houses for the slum
dwellers.

RAY is, however, not a new scheme. It was launched in 2011 on a pilot
basis. “We are taking it to the cabinet to get it approved for its
nationwide launch. An allocation of R35,000 crore has been made for it
during the 12th plan,” said an official.

According to a ministry report, 93 million urban residents in India
are estimated to be slumdwellers. Under the RAY, while the Centre will 
provide between 50% and 70% of the project cost of respective states to
redevelop existing slums and create affordable housing, the remaining
cost will be borne by states, municipalities and the beneficiaries.

On the other hand, for the NULM an allocation of over R7,000 crore
has been made during the 12th plan. Unlike the wage-based National Rural
Employment Guarantee Scheme (NREGA), NULM would help develop the job
skill of the poor youth.

NULM proposes to provide placement to those who have been provided
skill training. Besides, those opting to start their own enterprise, the
government would facilitate financial assistance.

The funding for NULM will be shared between the Centre and states in the ratio of 75: 25.

It will have four components — building community institutions like
self-help groups and their federations, employment through skills
training and placement, capacity building and training and
self-employment programme.