The Ministry of Housing and Urban Affairs (MoHUA) recently entered into a Memorandum of Understanding (MoU) with the online food delivery service, Swiggy, to integrate urban street food vendors onto its platform. As part of the Prime Minister Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) Scheme, this initiative aims to boost the livelihoods of these micro-entrepreneurs by offering their services to a wider consumer base. Concurrently, an improved version of the PM SVANidhi Dashboard has also been unveiled for enhanced scheme monitoring and comparative analysis.
The Purpose of the MOU
This MoU aims to overhaul the way street vendors do business by enabling them to receive orders and serve customers through e-commerce platforms. This digital transition is particularly important in the context of COVID-19, as it promotes social distancing and minimises physical contact. The ultimate objective is to improve street vendors’ incomes by leveraging digital technology.
Phased Rollout
MoHUA and Swiggy will execute this initiative in phases, starting with a pilot program that includes 250 vendors from five cities — Ahmedabad, Chennai, Delhi, Indore, and Varanasi. If successful, the program intends to expand nationwide gradually.
Key Collaborators
The effort involves multiple stakeholders like MoHUA, Municipal Corporations, the Food Safety and Standards Authority of India (FSSAI), Swiggy, and Goods and Services Tax (GST) officials.
Supporting the Vendors
To facilitate this process, street vendors will be provided assistance with Permanent Account Number (PAN) and FSSAI registration. They will also be trained in technology usage, menu digitisation and pricing, as well as best practices in hygiene and packaging.
About PM SVANidhi Scheme
The PM SVANidhi Scheme, launched on June 1, 2020, is an aspect of the Atmanirbhar Bharat Abhiyan Economic Stimulus-II. The scheme, with a budget of Rs. 700 crore, intends to offer affordable working capital loans to street vendors whose businesses have been significantly impacted due to the COVID-19 induced lockdowns.
Benefits and Features
The scheme targets over 50 lakh street vendors who were vending on or before March 24, 2020. It also promotes digital transactions by offering cash-back incentives up to Rs. 1,200 per annum. Vendors can procure a working capital loan of up to Rs. 10,000, which they can repay in monthly instalments within a year. The scheme also includes benefits like a 7% interest subsidy on timely repayment of the loan, and no penalty on early loan repayment.
Updates and Challenges
Despite receiving over 20 lakh applications by October 2020 and sanctioning over 7.5 lakh loans, only 2 lakh applicants have received the fund so far, owing to administrative issues. These challenges include banks demanding applications on stamp papers and PAN cards, and state authorities asking for voter ID cards, potentially excluding migrant vendors.
Suggested Solutions
To mitigate these obstacles, states should ensure that street vendors are not subjected to unnecessary harassment and that their livelihood rights are upheld. The Centre plans to send applications directly to bank branches listed by the vendor as a “preferred lender” or where the vendor holds a savings account, thus speeding up the process.
