In the last article, I have discussed the Housing-Based Poverty Alleviation Programmes in India. However, in this article, I will further continue that topic and discuss Employment Generation-based and Women Empowerment-based Poverty Alleviation Programmes in India.
Employment Generation based Poverty Alleviation Programmes in India
This Poverty Alleviation Programme Reduces urban households’ poverty and vulnerability by allowing them to attain lucrative self-employment and specialized wage job options, resulting in a substantial boost in their incomes on a long-term basis while building social grassroots organizations.
These initiatives also address the urban street seller’s worry about their income by providing sufficient area, institutional finance, social assistance, and skills to embrace growing market possibilities.
Prime Minister Rozgar Yojana
The Branch of Electronics and Information Technology under the Ministry of Communication and Information Technology, launched the PMRY to provide financial assistance to skilled jobless youth and women, who like to run their own businesses. The Directorates of Industries and District Industries Centers are in charge of putting this agreement into action.
The Prime Minister Rozgar Yojana initiative under Poverty Alleviation Programmes in India plans to develop 7 lakh micro-enterprises, which might give job possibilities to millions of educated youngsters across the nation. Apart from direct agricultural operations, Prime Minister Rozgar Yojana focuses on establishing self-employment businesses in all financially viable setups. Prerequisites of the scheme:
- The candidate must be a long-term resident of the area.
- Applicants must have completed the eighth grade.
- The age range should be between 18 and 35 years old.
- Individuals in the SC or ST categories, women, ex-servicemen, and physically disabled people have their age limit increased to 40 years.
- An average household annual income should be at least Rs.1 lac.
The money available through this approach is limited to 15% of the project’s overall cost. In addition, each company owner is only eligible for Rs 12,500. In the North-Eastern states of J & K, Himachal Pradesh, and Uttaranchal, the cap has been extended to Rs 15,000 per company owner. Self-help organizations may be eligible for up to Rs 15,000 in credit per entrepreneur. This is only available to self-help organizations having a budget of Rs 1.25 lakh.
Collateral: No security is obligatory for ventures up to 2 lakh rupees.
Rate Of interest: The interest will vary depending on the loan amount and the criteria set forth by the Indian government.
Moratorium Interval: The scheme includes a frozen time frame that allows the recipient to profit from the project before the payment plan begins.
Deen Dayal Antyodaya Yojana
The Deen Dayal Antyodaya Yojana, commonly known as the National Urban Livelihood Mission, was established to help urban disadvantaged people gain sustainable living standards by expanding their skills and abilities under Poverty Alleviation Programmes in India. This plan is critical for social and economic growth since it contributes to the aims and objectives of the Make in India and Skill Development programmes.
The Housing and Urban Poverty Alleviation Ministry is responsible for launching this initiative. A capital of 500 crores has been arranged by the government for this project. As indicated following, the program is broken into different halves, one for activities and community and another for rural activities:
- The urban component is the Deen Dayal Antyodaya Initiative, which has been executed by the Housing and Urban Poverty Alleviation Ministry.
- The Deen Dayal Upadhyaya Grameen Kaushalya Yojana, which was implemented by the Rural Development Ministry, is the rural aspect.
Urban areas, by enclosing practically the entire urban population, outstretched the exposure to all 4041 legal towns under the system. At the moment, only 790 towns are covered by full urban poverty alleviation programmes in India.
Employment through Skill Training and Placement: An investment of Rs.15 thousand per person is authorized for urban poor training, compared to Rs.18 thousand in J&K and other North-Eastern districts. Furthermore, via City Livelihood Centers, urban poor people are being trained to meet the tremendous demand from city residents by teaching market-based skills.
Subsidy for the needy in the city: A 5% to 7% bank rate subsidies for starting up a specific micro-enterprise with a sanctioned limit of up to Rs. 2 lakh and group associates with a sanctioned limit of up to Rs. 10 lakhs.
Self-Help Groups for training affiliates will be formed to facilitate social deployment and institutional growth. Each group receives a one-time grant of ten thousand rupees. Registered Area Level Federations are also eligible for 50 thousand rupees in aid.
Shelters for the homeless in cities: Under this programme, the cost of accommodation for the homeless in cities is totally subsidized.
Other methods include the expansion of vendor marketplaces, the development of vendor skills through infrastructure, specific developments for differently-abled individuals, scrap pickers, and others.
Women Empowerment based Credit Expansion Schemes
There is much focus on promoting women’s entrepreneurship in India, with government-based financial institutions showcasing numerous schemes.
Stree Shakti Package for Women Entrepreneurs
Women who are actively involved in the business are eligible for loans under this programme. The definition proposed by the Department of MSME India will be useful in recognizing the term Women Entrepreneurs Businesses.
Eligibility for Stree Shakti Package for Women Entrepreneurs:
A Women Entrepreneur business is a small industry-related assistance or business organization controlled by one or more female entrepreneurship in proprietary considerations or where they independently or collectively have an equity share of at least % as associates of Pvt. Ltd. Company or cooperative firms.
No collateral security is required for loans up to Rs.10 lakhs granted to MSME companies operated by female entrepreneurship. For disbursements to female entrepreneurs of up to ₹ 1 crore that could be guaranteed under the CGTMSE initiative, there is no necessity for security. Any advance of moreover Rs.1 crore, however, requires collateral security.
As a result, women who work in manufacturing, retail, or services are eligible for this programme. Similarly, women’s experts such as stylists, physicians, designers, and accounting firms can take benefit of the Stree Shakti package’s credit.
Under this system, money can be granted in the form of working capital or a term loan. The amount of money given out would be determined by the beneficiary’s profile as well as the following rules:
- Business Venture: Rs. 50000 – Rs.2 Lakhs
- Retail Dealers: Rs. 50000 – Rs.2 Lakhs
- Small Scale Industry: Rs. 50000 – Rs.25 Lakhs
- Professionals: Rs. 50000 – Rs.25 Lakhs
As the scheme is intended to benefit Women Entrepreneurs, relaxations and concessions are given in this scheme like a low floating rate of interest connected to the bank base rate.
Mahila Samriddhi Yojana (Micro Finance Scheme for Women)
The Ministry of Social Justice and Empowerment of the Government of India created the Poverty Alleviation Programmes in India in order to provide financing to female entrepreneurship, particularly those from lower socioeconomic classes. The Government of India (GOI) provides microfinance to female entrepreneurs from the target category, namely the disadvantaged classes, under this structure.
Poor women readily formed Self-help societies to save and provide required funds to their group members since they were financially comparable and empathetic.
A single Self-Help Group can only have a max of 20 women in it. 75 percent of the women in a Self-Help Group shall come from the Backward Classes, with the remaining 25% coming from other vulnerable sectors such as Scheduled Caste or differently-abled women.
Cleaner, Safai Karamchari, and their dependents are eligible for MSY financing for minor businesses and small earnings operations with a maximum cost of the project of Rs.60000.
Eligibility for Mahila Samridhi Yojana:
- This initiative is open to women entrepreneurs over the age of 18 who are from economically disadvantaged backgrounds.
- Women who are members of the Backward Classes and live in poverty have the right to vote.
- Women’s yearly income must be less than Rs.3 lakh per year.
Agencies: They sanctioned Advances to the backward classes through SCAs (State Channelizing Agencies), Nationalized Banks, and RRBs (Regional Rural Banks) under this system.
The financing scheme will be as follows: It will provide up to 95% of the funding, with the remaining 5% coming from Channelizing Agencies (SCAs) or Beneficiary contributions. The consumption term is four months from the date of the funding distribution.
Loan repayment: The credit must be paid in quarterly payments over the course of four years, including a six-month grace period on the recovery of the original amount.