The Central Sector Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) has been revised under the “Prohibition of Employment as Manual Scavengers and their Rehabilitation Act,2013” effective from Nov.,2013.
Objective
- The objective of the scheme is to assist the manual scavengers, identified during various surveys, for their rehabilitation in alternative occupations.
eligibility:
Cash assistance
- The identified manual scavengers, one from each family, would be eligible for receiving cash assistance of Rs.40,000,immediately after identification. The beneficiary is allowed to withdraw the amount in monthly instalments of maximum of Rs.7000.
Quantum of loan
- Loan up to a maximum cost of Rs.1O lacs will be admissible under the scheme and Rs.15lacs in case of sanitation related projects like Vacuum Loader, Suction Machine with Vehicle, Garbage Disposal Vehicle, Pay & Use Toilets etc. which are extremely relevant for the target group, with high success rate and income.
rate of interest:
| For projects up to Rs. 25000/- | 5% p.a.(4% p.a. for women Beneficiaries) |
| For projects above Rs. 25000/- | 6% p.a. |
Moratorium period:
- Moratorium period will be two years
Repayment period
Repayment period will be five years (including moratorium period of two years) for projects up to Rs.5 lacs and seven years (including moratorium period of two years) for projects above Rs. 5 lacs.
Subsequent loan
- Beneficiaries will be allowed to avail second and subsequent loan from Banks, if required, without capital and interest subsidy? and other grants under the Scheme.
Penalty
Incase of diversion of funds by beneficiaries for their other needs, the Banks can initiate action as per their policy and rules in this regard. In case, It is found that the beneficiary has diverted the subsidy for any purpose, other than for which the assistance was provided them.
He/she will be liable to repay the entire amount of subsidy immediately with a penal interest of 9% p.a., and
He/she will become ineligible for any assistance under the scheme, in future.
Other assistance
Manual Scavengers are also eligible for – Credit linked back-end capital Subsidy
| Range of project cost | Rate of subsidy |
| Up to rs. 2 lacs | 50% of the project cost |
| Rs. 2 lacs – rs. 5 lacs | Rs. 1 lac + 33.3% of the project cost between Rs.2-5lacs |
| Rs. 5 lacs – rs. 10 lacs | Rs. 2 lacs + 25% of the project cost between Rs.5 -1O lacs |
| Rs. 10-15 lacs | Rs.3.25 lacs |
interest subsidy
Where the rate of interest chargeable by the Banks on loans is higher than the rates prescribed in the Scheme, interest subsidy to the extent of the difference will be given to the Banks by the respective State Channelizing Agencies (SCAs). SCAs are required to pay this amount to Banks on monthly basis so that there is no case of charging of compound interest by Banks on the interest subsidy portion.
Operation of Subsidy amount by the Bank
- Subsidy will be back ended.
- Banks/Lending agencies would disburse the full project cost including subsidy to the beneficiaries as loan.
- The repayment schedule of the loan would be drawn in such a way that the subsidy kept under Subsidy Reserve Fund Account would be sufficient for adjustment towards loan repayment equivalent to capital subsidy
- Banks/Lending agencies would issue loan passbooks to beneficiaries.
Training
- Training is provided to the beneficiaries for acquiring new skills and entrepreneurship capabilities. Training can be provided by Govt. agencies Institutes as well as by reputed specialized training agencies. Beneficiaries would be provided training for courses up to two years with stipend @ Rs.3000 per month.