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MoU between Ministry of Social Justice & Empowerment and NSKFDC

  • 01 Sep 2023

On 30th August, the Ministry of Social Justice & Empowerment and the National Safai Karamcharis Finance and Development Corporation (NSKFDC) signed a Memorandum of Understanding (MoU) for the fiscal years 2023-24 and 2024-25.

This partnership is dedicated to improving the socio-economic conditions of Safai Karamcharis, manual scavengers, waste pickers, and their dependents.

Key Points:

  • Complete Mechanization: The collaboration aims to achieve complete mechanization of sewer and septic tank cleaning operations.
  • It will provide soft loans with low-interest rates to Sanitation Workers and Urban Local Bodies.
  • Capital Subsidy: Sanitation workers engaged in mechanized cleaning work under Swachhta Udyami Yojana (SUY) will receive capital subsidies ranging from 32 to 50 percent.
  • Training: Free training on safety precautions, the use of PPE kits, and the operation and maintenance of cleaning machines and equipment will be provided to sanitation workers.
  • Mahila Samridhi Yojana: NSKFDC offers loans up to Rs. 1.00 lakh under this scheme, with an overall interest rate of 4%.
  • Micro Credit Finance Scheme: Loans up to Rs. 1.00 lakh are available under this scheme, with an interest rate of 5%.
  • General Term Loan and Green Business Schemes: NSKFDC provides loans up to Rs. 15.00 lakhs and up to Rs. 30.00 lakhs, respectively, with an interest rate of 6%. Women beneficiaries receive a 1% interest rate rebate.
  • Loan Disbursements: In FY 2022-23, NSKFDC disbursed loans totaling Rs. 261.49 crores, benefiting 43,862 individuals, with around 80% being women.
  • Target for Beneficiaries: NSKFDC aims to cover 52,634 new beneficiaries in FY 2023-24 and 63,161 new beneficiaries in FY 2024-25.
  • Skill Development: In FY 2022-23, NSKFDC provided skill development training to 20,686 sanitation workers and their dependents under SRMS and PM DAKSH Yojana.
  • It plans to train 11,000 and 12,500 beneficiaries in FY 2023-24 and FY 2024-25, respectively, under PM DAKSH Yojana to support the government's initiatives for Safai Karamcharis' welfare.