The National Scheme for Liberation and Rehabilitation of Scavengers was launched by the Government of India on 22.03.1992.

The objective of the scheme is to liberate the scavengers and their dependents from their existing hereditary and obnoxious occupation.

The state level Scheduled Caste Development and Finance Corporations would be the chief agency for implementation of the scheme at the State level. At the district level, the District Collector / District Magistrate / Deputy Commissioner of the District would be responsible for the overall implementation of the scheme.

Scavengers in Urban, Semi-urban and Rural areas and any other town or area including Cantonment Boards, Colonies set up by Public Sector Undertakings etc. are covered under this scheme. There is no age limit for the purpose of rehabilitation of the scavengers.

Rehabilitation of scavengers in various trades / occupations under Agriculture and Allied sectors, Small Industries sector or Service sector by providing subsidy, margin money loan and bank loan.

Scavengers will be trained by the Training Institutions set up by the Government of India / State Government / Union Territory Administrations. The entire cost of the training will be borne by the Central Government. The focus of the training will be on creating / upgrading the skill for self-employment. Training will be limited only to those scavengers and their dependents who are in the age group of 15-50 years.

Margin Money

15% of the project cost at 4% interest from the State Scheduled Caste Development Corporation for SC / ST beneficiaries.

Subsdy is available at the rate of 50% of the project cost with a maximum of Rs.10,000/- per borrower.

All loans up to Rs.6,500/- under the scheme irrespective of the income of the beneficiary is treated under DRI scheme and concessional interest rate of 4% is extended. Interest rates for loans in excess of Rs. 6500/- would be as per Bank’s / Reserve Bank of India’s directives issued from time to time.

Hypothecation of the assets created out of the loan in favour of the banks. The State Scheduled Caste Development Corporations may be allowed to have second charge / pari-passu charge over the assets to cover their margin money loan assistance.

The repayment of the loan should be made within 3-7 years (inclusive of grace period) depending on the life of assets created and the repaying capacity of the beneficiary. Suitable grace period not exceeding six months may be given for each activity.