States seek urgent funds for women livelihood mission as new scheme delays

Financial Crunch

At least five states across political lines have written to the Centre warning that a lack of financial clarity over the urban livelihood mission will hurt social protection for the urban poor. Tamil Nadu, Karnataka, Maharashtra, Madhya Pradesh, and Tripura have told Prime Minister Narendra Modi and the Ministry of Housing and Urban Affairs that paused funding disrupts bank links and institutional credit access.

State Demands

The states are asking for funds to sustain operations, with Tamil Nadu demanding Rs 350 crore, Madhya Pradesh asking for Rs 101 crore, Maharashtra seeking Rs 80.99 crore, and Tripura requesting Rs 6.5 crore. The Deendayal Antyodaya Yojana-National Urban Livelihoods Mission ran from 2014 to October 2024 and built over 10 lakh women self-help groups. A pilot project called Deendayal Jan Aajeevika Yojana-Shehari ran until December 2025 to pave the way for a new scheme, but sources note that the new scheme is no longer under consideration.

Context

India's urban livelihood missions have relied on networks of self-help groups and community institutions over the past decade to deliver financial inclusion and micro-enterprise support. Transitions between central welfare schemes often create funding gaps for grassroots staff salaries and ongoing loan interest subsidies until new administrative frameworks are finalized.