Stressing that the government's top priority is eliminating poverty, Union Minister of Housing and Urban Poverty Alleviation M Venkaiah Naidu today urged commercial banks to scale up lending to the urban poor for setting up micro-enterprises.
In his inaugural address at the National Conference on 'Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM)' here, Naidu emphasised on the need for enhanced credit flow to the Self-Help Groups and for self-employment under the Mission.
He asserted that loan repayment by Self-Help Groups is 98 per cent and hence, were most bankable and eligible for lending.
He expressed concern over inadequate credit linkages to such groups in the states in the Northern and Eastern region of the country with southern states accounting for 62 per cent of total credit linkage of Rs 3,173 groups advanced during the last two years under DAY-NULM.
The Minister said that with several initiatives being taken to promote domestic and Foreign Direct Investment in various sectors, there is a vast scope for employment generation leading to increased demand for skilled manpower.
Naidu said that the Government is committed to eliminating poverty by "skilling the unskilled, funding the unfunded and reaching the unreached".
"25 per cent of people still living Below Poverty Line is clearly unacceptable when the country is aspiring for a lead role in the comity of nations.
"Concerted efforts need to be mounted to eliminate poverty. Due emphasis needs to be given on training to catch the fish instead of giving fish all the time. While banks should scale up financing, loans need to be repaid," he said.
In his address, Skill Development and Entrepreneurship
Minister Rajiv Pratap Rudy said that an integrated eco-system is being put in place for skilling of 30 crore people.
He expressed concern over skills not being given due recognition as a result of which "in our country there are no Professors of Carpentry or Plumbing".
Referring to what he called the paradox of people with 15 years of formal education and not finding jobs being promised jobs after a 15 week training, Rudy said this needs to be resolved with proper course content and certification.
He urged the banks to accept skill certification issued by approved agencies for advancing loans to skilled people.
Minister of State for Finance Jayant Sinha suggested promotion of financial literacy among the beneficiaries as part of skill certification to enable them with better management of money.
He favoured credit lending in the name of women stating that they have proved to be more adept in managing finances.
The minister also called for lending higher amounts under anti-poverty programmes.
He informed that lending target under MUDRA for the current financial year has been increased by Rs 50,000 crore from the Rs 1.30 lakh crore advanced to 3.40 crore beneficiaries during the last fiscal.
The National Conference on 'Deendayal Antyodaya Yojana-NULM' is being organized by the Ministry of Housing and Urban Poverty Alleviation to discuss ways of scaling up skills training and credit flow to self-employment programmes and Self-Help Groups.
