Support to Urban Street Vendors

Presentation Prepared byC Ashoka MA. M.Phil. In Economics

Faculty, State Institute of Urban Development, Mysore

ashoknagappac@gmail.com

Context of the Component

• Objectives .

• Role of State Government, Local Authority and Planning Authority

• Component 1: Survey and Issue of Identity Cards.

• Component 2: Preparation of City Street Vending Plan.

• Component 3: Infrastructure Iimprovement

• Component 4: Training and Skill Development .

• Component 5: Financial Inclusion.

• Component 6: Access to Credit.

• Component 7: Linkage with Social Security Schemes .

• Sanctioning Committee at the State Urban Livelihoods Mission.

• Monitoring and Evaluation.

• Funding Pattern.

Why street vendor’s are important

• Street vendors constitute an important segment at thebottom of the pyramid of the informal economy in cities.

• Street vending provides a source of self-employment, and actsas a measure of urban poverty alleviation.

• Street vending also has a prominent place in the urban supplychain, and provides inexpensive and convenient access togoods and services to all segments of the population includingthe poor.

• Street vending is therefore an integral part of the economicgrowth process in urban areas.

• Low levels of education and skills, limited access toformal credit and micro enterprise support constrainstreet vendors’ ability to access emerging marketopportunities.

• In this context, the National Urban LivelihoodsMission (NULM) seeks to address the concerns ofurban street vendors by facilitating access to suitablespaces for vending, institutional credit, improvedskills and social security linkages.

• The Support to Urban Street Vendors Component ofNULM sets out the strategy and operationalguidelines with regard to this component.

ObjectivesThe objective of the component is to address the vulnerabilities ofthe urban street vendors through a multi-pronged approach.

This includes:

(i) Survey of street vendors and issue of Identity Cards

(ii) Development of city street vending plans

(iii) Infrastructure development of vending zones in the city

(iv) Training and Skill Development

(v) Financial Inclusion

(vi) Access to credit

(vii) Linkages to social security schemes

Role of State Government, Local Authority and Planning AuthorityThe State Government shall have overall responsibility for:

(i) Providing overall direction.

(ii) Establishing mechanisms for sanction of projectproposals.

(iii) Establishing mechanisms for monitoring andsupervision of implementation.

(iv) Establishing mechanisms for progress reporting.

• The State Urban Livelihoods Mission (SULM) will be the nodalagency responsible for Overall implementation of thecomponent. At the city level, the responsibility forimplementation will rest with the Urban Local Body (ULB).

• The implementation would also require coordination betweenseveral authorities including Urban Local Bodies,Development Authorities and Town Planning Agencies, Landand Revenue Departments and District Collector offices. Thiscoordination will be ensured by the State Government andthe ULB.

• The ULB will consult and coordinate with the planningauthority, which could be an Urban Development Authority orany other authority in a city or town responsible for regulatingland use in the city.

• The role of the town planning authority in theimplementation of the scheme will includepreparation and notification of pro-vendingland use plans, and for providing land anddevelopment approval for vendors’ markets.

• Other agencies such as the RevenueDepartment, the Police Department andPublic Health and Engineering Department (orWater Board) may be required to providesupport and assistance to the local authorityto facilitate the implementation of thecomponent.

Components 1: Survey and Issue of Identity Cards

• Under this sub-component, financial support willbe provided to the ULBs for conduct of survey foridentification and enlisting of street vendors.

• The survey should preferably be conducted on awhole city basis.

• Alternatively, the ULB may also choose tocomplete the survey in a phased manner,covering one area (ward/ zone/ specified part ofcity) at a time.

• In this case, the area identified should besufficiently large to accommodate mobility ofvendors within the area.

• The ULB will issue Identity Cards to all the surveyed/identifiedstreet vendors. A data base of all street vendors will bemaintained by the ULB.

• Since the vendors are mobile, the software should be able totrack (based on either present/permanent address or anyother criteria) whether the vendor has already been coveredand issued an Identity Card.

• The State or ULB may engage an agency through an RFPfollowing a transparent process of selection to carry outsurvey of street vendors. In case the ULB issues the RFP, theshortlisted proposals must be sent to the SanctioningCommittee of SULM for consideration and approval. The ULBmay also propose alternative methods of survey, such asthrough community participation or with the support of NGOsor government or research agencies. Such proposals too willneed approval of the Sanctioning Committee of SULM.

Component 2: Preparation of City Street Vending Plan

Under this sub-component, financial support will be provided to

the ULB for preparation of City Street Vending Plan which willcontain the following:

(i) Profile of street vending trades and activities;

(ii) Spatial distribution of street vending activities;

(iii) Earmarking of space or area for vending zones;

(iv) Determination of vending zones as restriction- free vendingzones, restricted vending zones and no-vending zones;

(v) Estimates of holding capacity of vending zones, which is themaximum number of street vendors who can be accommodatedin any vending zone;

(vi)Understanding of key challenges, constraints and issues relatingto street vending; and

(vii) Possible solutions and potential street vending areas.

Component 3: Infrastructure Improvement

• Under this sub-component, financial support will be providedto the ULBs for improvement of infrastructure and provisionof basic services in the existing markets of street vendors.

• The ULBs will prepare a Detailed Implementation Plan (DIP)for such infrastructure improvement projects which mayinclude improved civic facilities such as paving, water supply,toilets, waste disposal facility, lighting, common storagespace, specialized carts for specific types of trades,temporary sheds and/or parking facilities.

• The infrastructure requirements for vendors markets will beassessed based on consultations with street vendors andtheir associations, local agencies and other stakeholders andwill be facilitated by the ULB.

Detailed Implementation Plan (DIP)

DIPs should contain:

(i) Project rationale, details of beneficiaries and stakeholders, how it willcontribute to improved street vending in the surrounding area, andhow it fits within the overall City Street Vending Plan

(ii) Land ownership details: (iii) Relocation plan, if any must be supportedby a letter of consent from the affected street vendors and/or theirassociation :

(iv)Specific infrastructure improvement project details with costs,including operations and maintenance plan

(v)Detailed and complete list of beneficiaries who will benefit from theproject – in case the survey is not complete and will be conducted aspart of the DIP, the list of beneficiaries will have to be provided uponcompletion of the survey and prior to commencement of infrastructureimprovement. SULM may release the second instalment of funds forthe project, contingent on the list of beneficiaries.

(vi) Safety concerns, if any, relating to fire hazard or other hazards.

• The ULB may also develop DIP for creation of “foodstreets”, “farmers markets”, “night market” andother such specialised/theme based markets subjectto the provisions stipulated above.

• In markets where food will be prepared in themarket, the ULB should take into account issues offood safety and fire hazard in addition to otherelements of infrastructure improvement that will berequired.

• For preparation of DIPs, the ULB may hireconsultants using a process similar to above.DIPsmust be submitted to the Sanctioning Committee ofSULM for approval.

Component 4: Training and Skill Development

• The ULB will conduct one to two days training programmesfor all street vendors taking one area at a time.

• The aim of this program will be to orient the street vendorson aspects such as their rights and responsibilities, specificpolicies or laws related to street vendors, food safety,maintenance of hygiene, waste disposal, etc.

• Modules for training, IEC material and workshops may bedeveloped/organised by the SULM/ULB in partnership withany resource agency identified by them.

• Delivery of training may be outsourced to a training institute,a specialized agency such as Food Safety and StandardsAuthority of India or a reputed NGO.

• Street vendors who undergo a trainingprogramme/workshop will be paid a daily amount asstipend for number of days attended, and calculatedbased upon opportunity cost of livelihood.

• This daily stipend should not be less than the minimumwage applicable in the State for urban areas.

• The training cost should also include trainer fee, food,and travel cost, subject to a maximum of Rs. 750 perperson per day.

• Cost of conducting such specialised trainingprogrammes for the street vendors will be met fromthe Employment through Skill Training and Placement(EST&P) component of NULM.

• Reports of training conducted and feedback fromparticipants of the training programme will besubmitted by the ULB on a monthly basis.

Component 5: Financial Inclusion

• Street vendors are often unable to access organisedbanking services as they lack identity documents, proofof address, tenure or legal rights over their place orbusiness and evidence of their trades and professions.

• It is envisaged that the Identity Cards issued to streetvendors under this scheme will help promote access tobanking services.

• SULM and ULBs will liaise with banks and other financialinstitutions to facilitate access to banking and financialservices based on documents issued to street vendorsby the ULBs.

• The SULM at state level will include financial inclusion ofurban street vendors as a separate agenda in State LevelBankers Committee (SLBC) and District ConsultativeCommittee (DCC) meetings.

• The aim of inclusion will be to ensure that all street vendorshave bank accounts and are included in financial literacyprogrammes organized by the banks.

Financial Literacy:

• The ULB will organise sessions on financial literacy foridentified street vendors with support of resourceorganisation and field staff.

• In these sessions the street vendors will be made awareabout the savings, credit, insurance etc., along with themodalities and operational requirements for accessing thesame.

• The banks and Financial Institutions may be encouraged tocommunicate with the street vendors through CityLivelihoods Centre (CLC), camps etc.

• The ULB will do the necessary coordination with the LeadDistrict Manager (LDM) of the Lead Bank and FinancialLiteracy & Credit Counselling Centres (FLCCs) of the banksto organise financial literacy sessions and camps.

Opening of Basic Savings Bank Deposit Account:

• Basic Savings Bank Deposit Accounts for all theidentified street vendors. The SULM in discussion andcoordination with respective SLBC convenor bank, ULB,DCC and LDM will ensure the following:

• Provide the Lead District Manager of the Lead Bankand DCC with the list of identified street vendors to becovered at city level Operational formalities such asavailability of forms at all the branches/extensioncounter of the banks, CLCs, & ULB office.

• Organise camps within the respective jurisdiction ofbanks for opening of accounts with support of ULBfield staff and Resource Organisation.

• Engagement of Business Correspondents (BC)/BusinessFacilitators by banks as per the requirement of the cityfor better outreach.

Component 6: Access to Credit

• Access to credit to fulfil the working capital requirement of thestreet vendors includes facilitating access to loans to the streetvendors from banks.

• It will also focus on facilitating access to credit cards to identifiedindividual street vendors to meet their working capitalrequirements.

Access to Credit: The Self Employment Programme–IndividualEnterprises (SEP-I)

• Component of NULM provides financial assistance to urban poorin the form of interest subsidy on bank loans for setting upindividual enterprises.

• In accordance with SEP guidelines, loans can be made availableto the identified urban poor street vendors at 7% rate of interest.

• The modalities and procedure for availing loans for poor streetvendors will be similar as detailed out in SEP-I component.

Credit Card for Urban Street Vendors:

• The ULB will also facilitate access to credit cards for eligible urbanstreet vendors to meet their working capital and miscellaneouscredit needs.

• The ULB will identify the prospective street vendors and willfacilitate linkages with banks for issuance of credit cards.

• The focus is to initially facilitate issuance of existing credit cards ofbanks such as General Credit Card (GCC) or any other variant ofcredit card for micro enterprise development to the urban streetvendors.

• The Ministry of HUPA will also explore the possibility of devisingan exclusive Credit Card Scheme for Urban Street Vendors inconsultation with Department of Financial Services, Reserve Bankof India and other banks.

Component 7: Linkage with Social Security Schemes

• In order to bring the street vendors within the ambit ofsocial insurance and to provide coverage from risks/uncertainties, ULBs will facilitate enrolment of streetvendors in insurance schemes of Government of Indiasuch as Rashtriya Swasthya Bima Yojana (RSBY) for healthinsurance, Aam Aadmi Bima Yojna (erstwhile JanashreeBima Yojna) for Life Insurance or any state specificinsurance schemes.

• However, the enrolment in any insurance scheme by ULBshould be as per the free will of the street vendors.

• The ULB will also promote awareness and facilitateenrolment of street vendors in other social security,welfare and social assistance schemes of state andcentral government.