• UGI USER
  • May 01, 2024
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A DECADE OF STREET VENDORS ACT

SYLLABUS:

GS 2: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

Focus:

  • A decade has passed since the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act came into effect on May 1, 2014, marking a significant milestone
Source: WEIGO

Understanding Street Vendors

Definition:

  • Nature of Business: A street vendor is defined as someone who sells goods to the public without a permanent built-up structure. This can include various forms of mobile or stationary setups.
  • Location and Mobility: They might occupy public or private spaces such as pavements or move around with their wares on pushcarts or carrying baskets on their heads.

Population Insights:

  • Global Presence: There has been a significant increase in the number of street vendors in major cities worldwide, particularly in developing regions like Asia, Latin America, and Africa.
  • Statistics in India: Approximately 49.48 lakh street vendors have been identified across India, with the highest numbers in Uttar Pradesh (8.49 lakh) and Madhya Pradesh (7.04 lakh).
  • Regional Variation: In contrast, Delhi hosts about 72,457 vendors, while no vendors have been identified in Sikkim.

Constitutional Provisions in India

  • Right to Trade: Article 19(1)(g) grants every Indian citizen the fundamental right to practice any profession, or to carry on any occupation, trade, or business.
  • Equality Before the Law: Article 14 ensures that no person shall be denied equality before the law or the equal protection of the laws within Indian territory.
  • Social Justice Goals: The preamble emphasizes India’s commitment to justice—social, economic, and political—and aims for equality of status and opportunity under a sovereign, socialist, secular, and democratic governance structure.

Directive Principles for State Policy:

  • Article 38(1): The state is directed to promote the welfare of the people by securing a social order infused with justice, influencing all national institutions.
  • Article 38(2): It calls for minimizing inequalities in income, status, facilities, and opportunities.
  • Article 39(a): The state should ensure that all citizens, regardless of gender, have the right to an adequate means of livelihood.
  • Article 41: Advocates for the ‘right to work’, conditional on the state’s economic capacity.

Provisions of the Street Vendors Act

  • Acknowledgement of Vendors’ Role: The Act recognizes the crucial roles street vendors play in city life, providing affordable daily services and contributing to the urban economy.
  • Protection and Regulation: It aims to protect and regulate street vending with state-level rules, urban local bodies (ULBs) executing through by-laws, planning, and regulation.
  • Vending Zones and Certificates: Commits to accommodating all existing vendors in designated vending zones and issuing vending certificates to legitimize their operations.
  • Governance Structure: Establishes Town Vending Committees (TVCs) with mandatory 40% street vendor representation, including a sub-representation of 33% for women.
  • Dispute Resolution: Introduces a Grievance Redressal Committee chaired by a civil judge or judicial magistrate to handle disputes and grievances.

Challenges in Implementation

  • Administrative Hurdles: Notable increase in harassment and evictions despite the Act’s protection clause, largely due to bureaucratic inefficiencies and lack of awareness.
  • Governance Issues: Weak urban governance mechanisms and poor integration with other urban development schemes like the Smart Cities Mission.
  • Societal Barriers: Societal perceptions often stigmatize street vendors as obstacles to urban development, marginalizing them in the process.
  • Tokenistic Representation: Although the Act mandates significant representation of vendors in TVCs, this often remains tokenistic, particularly for women vendors.
  • Inadequate Resources and Powers: ULBs often lack the necessary powers and resources to effectively implement the Act and support street vendors.

The Way Forward

  • Top-Down Support and Decentralization: Initial top-down direction and support from higher government levels are essential, followed by gradual decentralization to address local vendor needs effectively.
  • Enhancing ULB Capacities: Strengthening the capabilities of ULBs to plan and manage street vending within cities and incorporating these plans into broader urban development policies.
  • Integration with Urban Schemes: Amending urban schemes and city planning guidelines to include provisions for street vending, ensuring they are not sidelined in urban development.
  • Addressing New Challenges: Adapting the Act’s provisions to address emerging challenges like climate change, increased competition, and the impact of e-commerce.
  • Innovative Measures in National Policies: Including street vendors as a key component in the National Urban Livelihood Mission and devising innovative strategies to support their livelihoods in changing urban landscapes.
PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme:

  • Launched by the Ministry of Housing and Urban Affairs on June 01, 2020.
  • Purpose: To provide affordable working capital loans to street vendors affected by the Covid-19 lockdown, enabling them to restart their livelihoods.
  • Offers collateral-free loans of Rs 10,000 with low interest rates (below 12%) for one year.
  • Initially scheduled until March 2022, the scheme has been extended till December 2024, focusing on increased digital transactions and holistic socio-economic development of street vendors and their families.

Eligibility Criteria:

  • Open to vendors operating before March 24, 2020, with a certificate of vending issued by the Town Vending Committees as per the Street Vendors Act 2014.
  • Benefits:
  • Vendors can avail working capital loans repayable in monthly instalments over one year.
  • Early repayment earns an interest subsidy of 7% per annum through Direct Benefit Transfer.
  • No penalty on early loan repayment.
  • Encourages digital transactions with cashback incentives up to Rs. 100 per month.
  • Offers the option of credit limit escalation upon timely loan repayment.

Implementation Agency:

  • Managed by the Small Industries Development Bank of India (SIDBI).

Source:The Hindu

Mains Practice Question:

“Discuss the effectiveness of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, in providing a balanced framework for the livelihood protection and regulation of street vendors in urban India. Critically evaluate the challenges in its implementation and suggest measures for its better enforcement.”

Associated Articles:

https://universalinstitutions.com/pm-svanidhi-boosted-annual-income-of-street-vendors-by-rs-23000/#:~:text=PM%2DSVANidhi%20is%20Micro%2Dcredit,one%20year%20with%20monthly%20repayments.