Bihar Urban Livelihoods Mission

DAY-NULM Component

SEP

Self Employment Programme (SEP)

This component focuses on financial assistance to individuals/groups of urban poor for setting up gainful self-employment ventures/micro-enterprises, suited to their skills, training, aptitude, and local conditions. The under-employed and unemployed urban poor is being encouraged to set up small enterprises relating to manufacturing, servicing, and petty business for which there is considerable local demand. Local skills and local crafts are particularly encouraged. Each City/Town is to develop a compendium of such activities/projects keeping in view skills available, marketability of products, costs, economic viability, etc. No minimum or maximum educational qualification is prescribed for the selection of beneficiaries under SEP. The percentage of women beneficiaries under SEP shall not be less than 30 percent. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/ town population of poor.

A special provision of 3 percent reservation has been made for the differently-abled under this component. In view of the Prime Minister’s 15-Point Programme for the Welfare of Minorities, at least 15 percent of the physical and financial targets under this component have been earmarked for the minority communities.

Under this component, the setting up of both individual and group micro-enterprises is supported. The project cost ceiling is Rs. 2 lakh for individual enterprises and Rs. 10 Lakh for group enterprises. Individuals and groups may be provided loans from the banks. Interest subsidy over and above 7 percent rate of interest is available on a bank loan for setting up of an individual or group enterprise. No collateral is envisaged other than the micro-enterprise itself. Also, Interest Subsidy over and above 7 percent rate of interest applies to all SHGs accessing bank loans. An additional 3 percent interest subvention is being provided to all women SHGs who repay their loan in time in all the cities.

Efforts are also being made to beneficiaries with credit cards for working capital and other purposes under the component.