Govt expands National Livelihood Mission with new subsidy provisions

Utkarsh Classes Last Updated 22-02-2024

Govt expands National Livelihood Mission with new subsidy provisions

Government Scheme 4 min read

The government has now decided to include more activities in the National Livelihood Mission (NLM). In this context, the Union Cabinet has decided to modify this scheme on 21 February 2024.

With this amendment, its scope is being expanded with new subsidy provisions. Their objective is to simplify the livestock insurance programme and also to promote entrepreneurship in the livestock sector and improve fodder cultivation.

Provision of capital subsidy for livestock:

Under this, state governments will assist in breed conservation efforts of horses, donkeys, mules and camels.
The central government will earmark ₹10 crore to establish semen stations and nucleus breeding farms for horses, donkeys, mules and camels.

Provision of fodder seed processing infrastructure subsidy:

Under this, private companies, startups and various groups can avail 50% capital subsidy up to Rs 50 lakh for setting up fodder seed processing infrastructure.
The infrastructure under this includes construction, machinery, grading plant and seed storage warehouse.
While the remaining project cost can be managed through bank finance or self-financing by the beneficiaries.

Fodder Crop Assistance:

Under its provisions, assistance will be provided to state governments in growing fodder in non-forest land, barren land and degraded forest land to increase the availability of fodder.
The initiative will target non-arable land and areas with low agricultural productivity.

Provision of Livestock Insurance Simplification:

Under this, the premium sharing between the Center and the states has been kept at 60:40 for all the states while in some cases it has been revised to 90:10.
Farmers' premium contribution has been reduced to 15%.
Insurance coverage has been extended to 10 cattle units for cattle, sheep, and goats, enhancing accessibility for livestock farmers.

About National Livelihood Mission (NLM):

Launched in 2014-15, NLM now has three sub-missions – breed improvement of livestock and poultry, feed and innovation and extension.
The revised NLM has ten activities and goals of entrepreneurship development, feed and fodder development, research and innovation and livestock insurance.
National Rural Livelihood Mission (NRLM) commonly known as Deendayal Antyodaya Yojana - National Rural Livelihood Mission.
NRLM aims to establish efficient and effective institutional platforms for rural poverty alleviation. NRLM partially receives investment assistance from the World Bank.