National Safai Karamcharis Finance And Development Corporation (NSKFDC)

Policy Update
Meyhar Kaur Walia

Background:

National Safai Karamcharis Finance and Development Corporation (NSKFDC) is a fully-owned undertaking of the Government of India under the Ministry of Social Justice and Empowerment (M/o SJ&E). It was established on January 24, 1997, as a “Not For Profit” company under Section 8 of the Companies Act, 2013. It has been operational since October 1997 as a premier organization for the all-round socio-economic upliftment of Safai Karamcharis, Waste pickers, Manual Scavengers, and their dependents across the country through its various loan- and non-loan-based schemes.

NSKFDC envisions a society free from the inhumane practice of manual scavenging and is committed to providing alternative means of livelihood to these communities through self-employment, job-based employment, and wage-based employment, as well as skill development initiatives. The loan schemes are implemented through State Channelizing Agencies (SCAs) designated by the respective state governments, as well as through Regional Rural Banks (RRBs) and Public Sector Banks (PSBs). Skill Development Training Programs (SDTPs) are also implemented through government-affiliated training institutions nationwide.

Objectives:

Some of the major objectives of the Corporation are:

To promote economic development activities of Safai Karamcharis and their dependents;
To encourage self-employment ventures aimed at the welfare and rehabilitation of Safai Karamcharis and their dependents;
To provide financial assistance through designated channelizing agencies for viable income-generating activities, and to support government bodies engaged in sanitation-related activities under the Swachhta Udyami Yojana (SUY). Additionally, Self Help Groups with at least 75% of members from the target group may be considered for financial support under micro-financing schemes;
To provide loans to students from the community of Safai Karamcharis for pursuing professional or technical education at graduation or higher levels;
To support the enhancement of technical and entrepreneurial skills of persons belonging to the community of Safai Karamcharis and their dependents, enabling them to effectively manage and operate their own production and service units set up by them;
To promote training, quality control, technology upgradation, and common facility centres for carrying out sanitation work;
To support State-level organisations dealing with the development of Safai Karamcharis and their dependents by providing financial assistance, equity contributions, refinancing, or helping them secure commercial funding;
To mobilize funds such as grants, loans, advances, or deposits from national or international institutions, financial bodies, banks, cooperatives, or bilateral/multilateral development agencies, on terms deemed appropriate and subject to guidelines or directions issued by the Government.

Implementation:

A) Loan-Based Schemes:

General Term Loan (GTL): Its purpose is to finance viable income-generating activities, including sanitation-related schemes. It provides up to 90% of the project cost (max Rs 15 lakh) and channelizing agencies offer the remaining 10%. Beneficiaries repay 8-9% p.a interest over up to 10 years, following a 4-month implementation and 6-month moratorium.
Mahila Adhikarita Yojana (MAY): Loans up to Rs 2 lakh (90% of the project cost) are provided to women safai karamcharis, manual scavengers, and their dependent daughters for small businesses, repayable over 5 years. The channelizing agencies receive funds from NSKFDC at 3% p.a., which they then provide to beneficiaries at 7% p.a.
Mahila Samridhi Yojana (MSY): Loans up to Rs 1 lakh (90% of the project cost) are provided to women safai karamcharis, manual scavengers, and their dependent daughters for small businesses, repayable over 3 years. The channelizing agencies receive funds from NSKFDC at 2% p.a., which they then provide to beneficiaries at 6% p.a.
Micro Credit Finance (MCF): Loans up to Rs 1 lakh (90% of the project cost) are provided to safai karamcharis, manual scavengers, and their dependents for small businesses, repayable over 3 years. The channelizing agencies receive funds from NSKFDC at 3% p.a., which they then provide to beneficiaries at 7% p.a.
Education Loan (EL): It provides loans up to Rs 10 lakh (for study in India) and Rs 20 lakh (for study abroad) for the students of these communities enrolled in professional or technical courses, covering tuition fees, books, and living expenses with 10% promoters’ contribution. The loan has an interest rate of 2% p.a to channel agencies and 6% p.a to beneficiaries for up to Rs 10 lakh, and 3% p.a to channel agencies and 7% p.a to beneficiaries for up to Rs 20 lakh. The repayment period starts after course completion with a one-year moratorium and lasts up to 5 years.
Green Business (GB): It offers loans up to Rs 30 lakh (90% of the unit cost) to safai karamcharis, manual scavengers, and their dependents for eco-friendly income-generating activities such as E-rickshaw, compressed air vehicles, solar energy gadgets, etc. The interest rates range from 6-8% depending on the loan size, with a 10% promoters’ contribution. The repayment has to be done in quarterly installments, within a maximum period of 10 years, including a 6-month moratorium period.
Sanitary Marts (SM): This scheme provides up to Rs 15 lakh, i.e., 90% of the cost, to the target communities for setting up sanitation marts. The channelizing agencies get funds from NSKFDC at 3% p.a, who then provide the loan to beneficiaries at 7% p.a (with a rebate of 1% p.a. to women beneficiaries and a rebate of 0.5% for timely repayment) and a 10% promoters’ contribution. The repayment has to be done in quarterly installments, within a maximum period of 10 years.
Scheme for Pay and Use Community Toilets: provides loans up to Rs 25 lakh for setting up a 10-seater community toilet by individuals/SHGs from the target group of NSKFDC. The loan has an 8% interest rate, which is repayable over 10 years with a moratorium of 180 days.
Swachhta Udyami Yojana (SUY): It has a double objective of cleanliness and providing livelihood. Its 3 implementation models include:

Financial assistance to Target Group through Channelizing Agencies (CAs): Loans up to Rs 15 lakh for individuals and Rs 50 lakh for SHGs at 6% interest rate.
Financial assistance to Urban Local Bodies (ULBs): Loans up to Rs 75 lakh for ULBs at 7% interest.
Financial Assistance to Private Agencies/Contractors: Loans up to Rs 50 lakh for private contractors engaged with ULBs at 8% interest.

B) Non-loan Based Schemes:

Skill Development Training Programmes (SKTP): It is offered by NSKFDC to upgrade the technical, vocational, and entrepreneurial skills of the target group between the ages of 18-45 years, to enable them to secure jobs or be self-employed. Financial support covers the training program and a monthly stipend of ₹1500 for Safai Karamcharis and ₹3000 for identified Manual Scavengers and their dependents is provided.
Workshops: State Channelizing Agencies (SCAs) organize workshops to update district officials and headquarters staff on NSKFDC schemes. Expenses up to Rs 25,000 per workshop are reimbursed to the SCAs.
Awareness Camp: NSKFDCs/CAs organize awareness camps in the bastis of Safai Karamcharis and Manual Scavengers to create awareness about the benefits of the schemes. NSKFDC reimburses up to Rs 30,000 per awareness camp to the CAs.

Impact:

From 1 January 2024 till 12 December 2024, NSFKDC has sanctioned concessional loans up to Rs. 242.66 Crore, covering 40,942 beneficiaries. Out of this, Rs. 239.69 Crore has been disbursed for 40,803 women beneficiaries under the schemes of Mahila Samridhi Yojana (MSY) and Mahila Adhikarita Yojana (MAY) of NSKFDC. The funds disbursed by NSKFDC from 2014-15 to 2022-23 are given in the table below:

S. No.	Financial Year	Share Capital Contribution received (Rs. in Crore)	Loan disbursement (Rs. in Crore)	Coverage of Beneficiaries (Nos.)
1	2014-15	50.00	134.05	19,434
2	2015-16	50.00	156.91	19,334
3	2016-17	50.00	179.10	23,565
4	2017-18	5.00	147.75	22,202
5	2018-19	30.00	198.88	21,301
6	2019-20	35.00	287.52	26,674
7	2020-21	40.00	61.05	11,619
8	2021-22	5.00	260.57	51,356
9	2022-23 (as on 22.11.2022)	0.00	52.91	7,694

A Memorandum of Understanding (MoU) has been signed between the Ministry of Social Justice & Empowerment and National Safai Karamcharis Finance & Development Corporation for the fiscal years 2023-24 and 2024-25. This partnership aims to enhance the socio-economic conditions of Safai Karamcharis, manual scavengers, waste pickers, and their dependents. It focuses on fully mechanized sewer and septic tank cleaning operations. Adequate training is provided free of cost to sanitation workers on safety measures, proper use of PPE kits, and the operation and maintenance of cleaning machines and equipment.

NSKFDC implemented the Self-Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) in 2007, now replaced by the National Action for Mechanised Sanitation Ecosystem (NAMASTE). According to the Centre for Budget and Governance Accountability Report on ‘REVISITING THE PRIORITIES An Analysis of Union Budget 2024-25’, NAMASTE was initially allocated ₹97.41 crore in the 2023–24 Budget Estimates (BE). This was later reduced to ₹30.06 crore in the Revised Estimates (RE). For 2024–25, the allocation has been increased to ₹116.94 crore. NAMASTE, however, has limited coverage in some parts of cities and towns reliant on septic tanks without sewer infrastructure. The new scheme also does not have any provision for direct cash assistance that was provided under the previous scheme.

The Government has discontinued the implementation of SRMS despite the existence of manual scavengers in the country. In 2018, a national survey across 194 districts identified 58,098 manual scavengers. In 2020, civil society organizations associated with the Ministry of Social Justice and Empowerment (MoSJE) found that manual scavenging existed in 170 districts. Over 6,000 such cases of manual scavenging were reported through the Swachhata App. So far, this data has not been verified by the state governments.

Conclusion:

NSKFDC plays a crucial role in empowering Safai Karamcharis, manual scavengers, and their dependents by providing financial assistance, skill development, and livelihood opportunities. Its key advantages include improved access to concessional loans, support for entrepreneurship, comprehensive skill training, and rehabilitation programs that promote dignity and socio-economic upliftment. While there has been some measurable progress, manual scavenging is still a prevalent practice in India. To fully eradicate these inhuman practices, strengthening the implementation and ensuring long-term rehabilitation remains crucial.

References:

Centre for Budget and Governance Accountability. (2024). REVISITING THE PRIORITIES: An analysis of Union Budget 2024-25. https://www.cbgaindia.org/wp-content/uploads/2024/07/Revisting-the-Priorities-An-Analysis-of-Union-Budget-2024-25.pdf
National Safai Karamcharis Finance & Development Corporation (NSKFDC). (n.d.). National Safai Karamcharis Finance & Development Corporation (NSKFDC). https://socialjustice.gov.in/public/ckeditor/upload/72721669977840.pdf
YEAR-END REVIEW 2024. (2024, December 19.). https://www.pib.gov.in/PressReleasePage.aspx?PRID=2085973
Press Information Bureau. (2023, August 2). Budgetary allocation for elimination of manual scavenging. https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=1945069
National Safai Karamcharis Finance and Development Corporation. (n.d.). National Safai Karamcharis Finance & Development Corporation. https://nskfdc.nic.in/
Khan, J. A. (2022, March 7). 15 years later, govt scheme to rehabilitate manual scavengers has made little progress – The Wire. The Wire. https://thewire.in/rights/manual-scavengers-rehabilitation-scheme-progress-report
Online Bureau, ET Government, & www.ETGovernment.com. (2023, August 31). NSKFDC entrusted with socio-economic upliftment of Safai Karamcharis. ETGovernment.com. https://government.economictimes.indiatimes.com/news/governance/nskfdc-entrusted-with-socio-economic-upliftment-of-safai-karamcharis/103239852

About the Author: Meyhar Kaur Walia is a Research Intern at IMPRI and is pursuing her undergraduate degree in Political Science from Delhi University.

Acknowledgement: The author expresses sincere gratitude to all those who provided guidance, with special thanks to Dr Arjun Kumar and Ma’am Aasthaba Jadeja.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.