Self Employment Scheme for Rehabilitation of Manual Scavengers

Ministry of Social Justice & Empowerment had been considering for the past some time the proposal to bring a new Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) for rehabilitation of all the scavengers and their dependents by March 2009 and Government has recently approved the new scheme.

Objective:

Objective of the scheme is to assist the remaining scavengers for rehabilitation, which are yet to be assisted, in a time bound manner by March 2009 Scavengers and their dependents, irrespective of their income, who are yet to be provided assistance for rehabilitation, under any scheme of Government of India/State Governments will be eligible for assistance.

Quantum of Loan: Both, term Loan up to a maximum cost of Rs. 5.00 lac) and micro financing up to a maximum of Rs. 25000/- will be admissible under the scheme.

Rate of Interest:

  1. For projects up to Rs. 25000/- : 4% p.a. for women beneficiaries and 5% for others.
  1. For project above Rs. 25000/- : 6% p.a.

(The difference with bank’s normal interest rate will be subsidized by GOI.)
Repayment:

3 years for projects up to 25000/- and 5 years for projects above Rs.25000/- with moratorium of six months.

Credit Linked capital subsidy will be provided upfront to the beneficiaries in a scaled manner:

 
For projects costing up to
Rs. 25000/- Maximum of Rs. 50000/-

 

For projects costing above
Rs.25000/- -@ 25% of the project cost with a minimum of and a maximum of Rs.20,000/-
Rs. 12,500/-

The Scheme is proposed to be implemented at the national level through the NSKFDC or other identified agencies for the purpose. At the State level, the implementing agencies will be the State channelising agencies identified for the purpose.