Telangana State Street Vending Scheme, 2016


Municipal Administration and Urban Development Department. – Telangana State Street
Vending Scheme, 2016 – Notification – Issued .

G.O.MS.No. 11 Dated: 05-01-2016

Street Vendors (Protection of Livelihood & Regulation of Street
Vending) Act, 2014 (Central Act No.7 of 2014).

O R D E R:

           The following Notification will be published in an Extraordinary Issue of Telagana
Gazette dated 05.01.2016.

                                          N O T I F I C A T I O N

In exercise of the powers conferred under sub-section (1) of section 38 of the Street
Vendors (Protection of Livelihood & Regulation of Street Vending) Act, 2014, (Central Act, 7
of 2014, the Government of Telangana hereby makes the scheme appended to this

                    - - - -

1. Definition of Street Vendor:
“street vendor” means a person engaged in vending of articles, goods, wares, food items or
merchandise of everyday use or offering services to the general public, in a street, lane, side
walk, footpath, pavement, public park or any other public place or private area, from a
temporary built up structure or by moving from place to place and includes hawker, peddler,
squatter and all other synonymous terms which may be local or region specific; and the
words “street vending” with their grammatical variations and cognate expressions, shall be
construed accordingly”
1.1. Categories of street vendors:
Mobile Vendors category is vendors doing street vending with carts/ vehicles and moving in
entire area except no vending zone.
Static vendor’s category is street vendors fixed to a place and performs vending and they
are to be covered in free or restricted vending zones.
The peripatetic category of street vendor is with small basket on the shoulder and travels
from one place to other during shorter intervals. This category also gets all provisions of
other categories of street vendors.
2. Manner of conducting survey;
2.1. The survey must cover all street vendors in the area being surveyed. The concerned
ULB has to develop a strategy suitable to it for conducting the survey.
2.2. The survey is to be conducted through Community Resource Persons (CRPs) and
payment of CRPs as per norms of MEPMA.
2.3. Wherever the District Resource Persons are utilized for the purpose of training and
monitoring of survey, their services are to be compensated as per payment policy of
MEPMA and travel charges, wherever applicable.
2.4. The data so collected in the survey is to be verified randomly, 10% through DRP,
5% through Town Mission Coordinator, 2% at District Mission Coordinator, 1% at
Municipal Commissioner level and random check by the Project Director, MEPMA in all
ULBs, for ascertaining the quality of data.
2.5. During the survey, the original documents pertaining to present/ permanent address
proof, especially in the case of migratory population may also be verified so that the
Identity Cards issued to the surveyed street vendors can act as sufficient
documentation for opening of their bank accounts, getting loans from banks, accessing
social security benefits, etc.
2.6. Generally the vendors will be Stationary, Mobile and Peripatetic. Care should be taken
to cover all categories and by all times by making suitable action plan and by forming
suitable number of teams of CRPs and Support officer of the team from among ULB staff .
2.7. The survey should preferably be conducted on a whole city basis. Alternatively, the
ULB may also choose to complete the survey in a phased manner, covering one area
(ward/ zone/ specified part of city) at a time. In this case, the area identified should be
sufficiently large to accommodate mobility of vendors within the area.
2.8. The survey data must be collected in the prescribed format and the data is to be
supported with ration card. Voter-card or aadhar-card can be considered as additional
residential proof, when the ration card is not having present address. The signed
declaration of the street vendor must be uploaded as it is also mandatory as per act
2.9. The Town Vending Committee shall, conduct a survey of all existing street vendors,
within the area under its jurisdiction, and subsequent survey shall be carried out at least
once in every five years. The Town Vending Committee shall ensure that all existing street
vendors, identified in the survey, are accommodated in the vending zones subject to a norm
conforming to two and half per cent. of the population of the ward or zone or town or city and
the holding capacity of the vending zones. No street vendor shall be evicted or, as the case
may be, relocated till the survey has been completed and the certificate of vending is issued
to all street vendors.
3. The period within which certificate of vending shall be issued :
The process of issuing identity card and vending certificate to the street vendors identified
under survey shall be completed within 15 days from the payment of fees for registration and
application made to the ULB.
4. The terms and conditions for issue of certificate of vending:
Any person, who is willing to carry on street vending during the intervening period of two
surveys is also be given vending certificate and identity card duly following the terms and
conditions applicable for regular street vendor, subject to the scheme, the plan for street
vending and the holding capacity of the vending zones.
5. The form and the manner of issuing certificate of vending:
The form of vending certificate is enclosed as annexure. The manner of issuing certificate of
vending is as per the details of survey and the same will be issued through software directly
after entering preliminary survey and after approval of concerned Municipal Commissioner.
After verification of payment of required registration fees, nature of vending and allotment of
vending zone, the Commissioner approves the status of street vendor in software, the
vending certificate will get generated automatically. If it is disapproved, the data will be
reverted to Town Mission Coordinator’ login along with Municipal Commissioners’ remarks
for further process. The automatically generated Vending certificate shall get printed and is
to be signed by the Municipal Commissioner and affixing the seal of the Municipality and can
be issued to the street vendor duly entering the details of the card and taking the signature
of street vendor for due acknowledgement.
The vending certificate shall contain the following information.
(i) Photo of the vendor along with his or her spouse or dependent child above 14
years if involved in vending with the vendor.
(ii) Name of the vendor.
(iii) Name of the spouse or dependent child if involved in vending with the vendor.
(iv) Age and Sex of the person/s whose photo appears. Age shall not be less than
18 years for main vendor.
(v) Address of residence.
(vi) Category of Vending (Mobile/Stationary /Natural/ Weekly etc.)
(vii) Name of the Vending Place (Whether it is historical place, park, market, in
front of school/college/hospital/bus stand or malls etc.)
(viii) Name of the Municipal Body.
(ix) Date of Issuing Vending Certificate
(x) Validity.
(xi) Unique Registration Number.
6. The form and manner of issuing identity cards:
The form of identity card is enclosed as annexure. The manner of issuing identity card is as
per the details of survey and the same will be issued through software directly after entering
preliminary survey data and after approval of concerned Municipal Commissioner. After
verification of payment of required registration fees, nature of vending and allotment of
vending zone, the Commissioner approves in software, the identity card will get generated
automatically. If it is disapproved, the data will be reverted to Town Mission Coordinator’
login along with Municipal Commissioners’ remarks for further process. The automatically
generated Identity card shall get printed and is to be signed by the Municipal Commissioner
and affixing the seal of the Municipality and can be issued to the street vendor duly entering
the details of the card and taking the signature of street vendor for due acknowledgement.
The Identity Card shall contain the following information.
(i) Name of the vendor.
(ii) Age (shall be more than 18 years),
(iii) Sex.
(iv) Address of residence.
(v) Address of the vending site.
(vi) Photo
(vii) Phone number.
(viii) Category of vending.
(ix) Municipal ward or zone number.
(x) Police Station.
7. Criteria to be followed for issuing ID and Vending Certificate:
(1) Ration card or Adhar-card is mandate, which will be both residential & age proof of
18 years and above. ( New proposal)
(2) If Ration card/Adhar-card is with old address, Voter-card can be furnished
as residential proof document for getting Residential Vending Certificate.
.(3) Individual passport photo ( for ID card) and photo of family members involved in
street vending. If any dependent children is involved in vending the age of child
should be more than 14 years. Children below 14 years and old-age persons, who are not
Involved in vending shall not be included in family photo ( for Vending Certificate).
(4) Declaration of the street vendor as per sec.5 of the Act.
(5) Payment of fees for registration as specified by the TVC.
(6) Preference shall be given to SC, ST, PWD, BC, Women of deprived &
vulnerable categories, Minorities and Destitute persons in issuing IDC and VC.
(7) Certificate of Vending and Identity cards shall be issued by the TVC, representative
by Municipal Commissioner of ULB concerned.
8. Registration Charges:
Fee structure for Registration and renewals of Identity card (IDC) & Vending Certificate (VC):
Level of ULB Fee to be collected
1 ULBs except Corporations & Mission cities Rs.100
2 Municipal Corporations Rs. 150
3. Mission Cities Rs. 200
4. Renewal charges same as above after 3 years as validity
period of Vending Certificate is three (3) years
9. Manner of collecting collection of registration & renewal fees and other fees:
The TVC shall collect the registration & renewal fees, vending fees, maintenance charges,
penalties and parking charges through Banks, Mee-seva, and ULB collection Centres.
Ultimately the amount so collected is to be deposited into the bank account opened
separately by the TVC.
10. Period of validity of Certificate of vending;
The validity period of Vending Certificate is three (3) years from the date of issue by the
11. Process of Renewal:
Renewal of vending certificate is to be done by collecting the required fees, after 3 years from the
date of issue.
12. Manner of suspension or cancellation of Certificate of vending;
The manner of cancellation or suspension of vending certificate shall be in accordance with
the sec.10 & 11 of the Act and the process invariably followed with appeal and hearing to
the street vendor before disposal.
13. Preference for issue of certificate of vending;
Preference shall be given to Scheduled Caste, Schedule Tribe, Person With Disability,
Backward Caste, Women of deprived & vulnerable categories, Minorities and Destitute
persons while issuing the certificate of vending.
14. Manner for carrying out social audit:
The Town Vending Committee has to appoint a organisation or institute well versed with
Social Audit process and conducts the same in the vending areas with street vendors
especially at leisure hours. During the process the audit team has to verify the survey
process, attitude of survey team and support officers, payment systems of registration &
other fees, process of issuing identity card & vending certificate, process of maintaining
health & hygiene practices, disposal of solid wastes generated in market, decisions of TVC
and any other matter related to the welfare of the street vendors. Provided the Social audit
must be done once in six months in prime area of street vending and rectification measures
are to be undertaken as per the audit findings and after discussing the same in the TVC
15. Conditions under which private places may be designated as restriction freevending
zones, restricted-vending zones and no-vending zones;
Generally ULB is not having any right over the private places and cannot be designated
under street vending. But vending in such private places can be permitted, where the owners
of the private place permit for such vending by collecting lease/ rent amount duly agreed.
The TVCs shall make a Memorandum of Agreement with the owner of the private place.
16. Norms to be observed for up keeping public health and hygiene;
Every street vendor shall pay due attention to public health and hygiene in the vending
zone/vendors’ market concerned and the adjoining area. He/she shall keep a waste
collection basket in the place of vending. Further, he/she shall contribute to/promote the
collective disposal of waste in the vending zone/area. Associations of/for street vendors may
construct public toilet facilities which may be run by them on "pay and use" basis. To
promote such associations, the Central Government/State Governments/Municipal
Authorities shall encourage the organisation of/for street vendors, by providing financial
assistance. The State Government/Municipal Authorities may take special steps to cover
street vendors and their families with benefits of programs such as preventive and curative
health care including reproductive and child health care facilities and health insurance.
17. Designation of State Nodal Officer:
The State Government has to designate the Mission Director of Mission for Eliminating
Poverty in Municipal Areas (TSMEPMA) as the State Nodal Officer (SNO), responsible
for overall implementation of the component. At the city/town level, the responsibility
for implementation will rest with the Urban Local Body. The implementation would
also require coordination between several authorities including Commissioner &
Director of Municipal Administration (C&DMA), Director of Town & Country Planning
(DTCP), Urban Local Bodies, Development Authorities and Town Planning Agencies,
Land & Revenue Departments and District Collector and other offices. This Coordination
shall be ensured by the State Government by constituting a State Level Review Committee
under chairmanship of the Principal Secretary of MA&UD Department.
18. Town Vending Committees (TVCs):
Town Vending Committee (TVC) is to be constituted at each ULB and the implementation of
program rests with the TVC under the overall supervision of Municipal Council. In bigger
Corporations and cities ward level/ circle level/ zonal level committees shall be constituted
for effective monitoring of street vending program.
􀂾 ULBs with less than 10.00 lakhs population shall constitute TVC at ULB level .
􀂾 ULBs with more than 10.00 lakhs population shall constitute TVC along with
Ward/ Circle level committees
18.1 TVC – Constitution:
a). Town Vending Committee to be headed by the Municipal Commissioner
with representation of
o 40% of members from Street vending community
o 20% from ULB and other Govt Departments (local authority, planning
authority and Revenue)
o 10% from Police Department.
o 10% representatives from Banks and LIC
o 10% elected members of ULB ( Area/Ward Sabha representatives Or CBOs)
o 10% from NGOs, Professional groups ( lawyers, doctor, town planners,
b). Commissioner of ULB or representative to be the chairperson for Town
vending Committee and Zonal Commissioner for Zonal Vending committee
(Members will be in the above proposition).
c). Number of members in TVC subject to condition that there should be
representation across the Urban Local Body.
18 members committee in all Mission cities
15 member committee in the Corporations
12 members committee in ULBs having more than a lakh population.
10 members committee in ULBs having less than one lakh population.
Adequate representation should also be provided to the SC, ST, Women and
physically challenged persons in the TVC. The Committee meets once in a month
duly following 51% quorum and 3 clear days notice period.
18.2 Functions of TVCs:
Registration of street vendors through photo census, registration, new
entrants, ID cards, registration fee and process
Collection of revenue - registration fee, Monthly maintenance charges,
fines and others
Recommending to the ULB for demarcation of vending Zones
Eviction, relocation and Confiscation
Promotional measures ( Public Health and Hygiene, Education and skill
trainings, Credit and insurance, Social security, allotment of space,
stationery stalls, rehabilitation of child vendors etc.,)
Maintenance of records and conducting Social Audit.
Conducting Social Audit once in year by engaging experts for the purpose
18.3. Manner of maintenance of proper records and other documents:
The TVC is responsible to send reports on quarterly basis to the State Nodal officer and
Principal Secretary to Govt. MA&UD dept., with the following details:
o No. of vending Zones/Vendors markets earmarked or developed
o No. of registered street vendors
o CIGs formed among homogenous registered residential street vendors
o Revenue collected
o Expenditure incurred
o Promotional and other measures under taken
o Complaints registered and redressed
o Other matter as prescribed by the State Nodal Agency.
The Town Vending Committee shall maintain the books and records pertaining to the above
transactions separately and to be verified on regular basis by the Officers concerned and to
suggest any rectifications if required. Every Town Vending Committee shall maintain up to
date records of registered street vendors and street vendors to whom certificate of vending
has been issued containing name of such street vendor, stall allotted to him, nature of
business carried out by him, category of street vending and such other particulars which may
be relevant to the street vendors, in such manner as may be prescribed.
Accordingly the planning authority has to devise spatial norms for demarcation of vending
zones and has to build the capacities of state level, regional level and ULB level planning
staff to ensure the implementation of all norms while making demarcation of vending zones,
appropriation of spaces for vending in Master Plans/ Developmental plans/ Zonal plans and
Local area plans.
Further the maintenance of records pertaining to demarcation of vending zones and
reservation of spaces for vendor markets and vending zones at ULB level is responsibility of
them at each level.
The State Nodal Officer will have secondary data collected from the periodical reports from
ULBs and Planning Authority. A robust software will be made in collaboration with Centre for
Good Governance and the information so collected will be placed open in order to attain
transparency except the personal and banking information.
19. Manner of carrying out vending activities on time-sharing basis;
If Street vendors occupying a space on time sharing basis, the vending activity wll be
regulated in such a manner that all street vendors shall remove their goods/ wares everyday
on expiry of the time sharing period allotted. Timing restrictions on vending shall be in
accordance with the need for ensuring non-congestion of public places and maintenance of
public hygiene. Rationing of space should be resorted to if the number of vendors exceeds
the spaces available in the zone. Attempts shall also be made to provide ample parking
space to the mobile vendors for providing security to their vehicles and wares during night
on payment of suitable fees. The TVC will determine the fees depending on the market
needs and requirement. Women vendors should not be discriminated while allotting timesharing
vending activities.
20. Principles for determination of vending zones
The State Government on recommendation from DTCP has to issue necessary guidelines
and principles for demarcation vending zones. Separate orders will be issued after
finalisation of the guidelines.
21 Principles for determining holding capacity of vending zones
Under section 3 of the Act, the estimation of street vendors of the area is to be determined
basing on 2.5% of the population of the area. The holding capacity of a vending zone will be
according to the vending site divided by the total area of the vending area and that space is
to be provided for vending shall be 2.5% of the total area. Comprehensive census and
survey of street vendors shall be planned accordingly.
22. Promotional measures for welfare of street vendors
22.1 Formation of Common Interest Groups and their associations:
Street Vendor Common Interest Group (CIG) formation is to be done by
following the procedure laid down:
(a) Unlike women SHG, where the members are all women, Street Vendor group- CIG, is
a mixed group of male and female members since more than 50 per cent of the
vendors as per data happen to be male vendors.
(b) .Location of vending is the basic criteria for group formation. Residential Street
Vendors, who are having valid identity card and vending license are eligible to become
members of CIGs.
(c) In case of SHG formation, slum residence is the main criteria for group formation
whereas in case Street Vendor group, cluster area is the main criteria.
(d) 10 to 12 vendors, operating in a particular area of vending in a town, should be
formed into a CIG of vendors
(e) Possibly, similar activity, which can be ascertained after profiling, can be preferred and
the members with similar vending or close similarity will be taken as members while
forming CIG.
(f) 10 to 15 CIGs of street vendors will be formed into Area/ Territory Level Association in
the lines of a Area Level Federation.
(g) similarly, all CIGs of street vendors can formed into the Town Level Association in the
lines of City Level Federation.
22.2. Steps in CIG formation
(a) Sensitization about the issue of street vendors at the cluster level
(b) Creating an orientation among the street vendors in a particular cluster area as to
why it is important for the vendors to organize themselves into a common interest
group in the lines of SHG
(c) After the formation of the groups, training should be imparted to group members
about group dynamics like regular meeting, regular saving and book-keeping.
CRPs, selected for the purpose are to be given proper orientation and
honorarium shall be paid as per norms decided by MEPMA.
(d) To strengthen the CIGs, Community Resource Persons (CRP) strategy is to be
followed and CRPs are to be identified among Street Vendors or from the existing
SHGs in the area, by following norms of CRP selection. CRPs are to be trained by
District Resource Persons, who are given inputs
(e) The CRPs should create awareness among members about social security schemes
like Janasree Bhima Yojana (JBY) or any other special policy which will cover life,
health, theft, accidental and natural calamities and the benefits available under them
along with the group dynamics.
(f) Awareness about issues like hygiene and sanitation should be spread among the
vendors along with quality, fair pricing and customer relation techniques.
(g) Protection available in the National Street Vendor Policy and Act 2014, which are
aiming to accord legal status to street vending should be inculcated among the street
(h) Process about Bank account opening after naming the group and electing leaders
among the CIG members. CRP has to facilitate the process. Orientation about group
meetings, process of meetings, leadership and rotation, following Panchasuthras and
group conditions will be provided and the savings collected from members has to be
deposited in this account on next day itself.
(i) Once the groups are formed and start working towards availing bank loans and other
governmental benefits which are available to women SHGs, then the next tier of
organization in which area/ territory level association of vendors should take place
with representatives from CIG of vendors, It should be followed by the town level
grouping of vendors.
(j) CIGs are to be facilitated on internal lending and book keeping of the money
transactions, are to be maintained from the beginning.
23. Preparation of City Street Vending Plan
Financial support from National Urban Livelihood Mission (NULM) will be provided to the
ULB for Preparation of City Street Vending Plan which will contain 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) Demarcation of vending zones as free-vending zones, restricted-vending
zones and no-vending zones;
(v) Estimates of holding capacity of vending zones, which is the maximum number
of street vendors who can be accommodated in any vending zone; If required
allotment can be done on time sharing basis among street vendors if no of
vendors are more and area in the zone is less.
(vi) Understanding of key challenges, constraints and issues relating to
street vending; and
(vii) Possible solutions and potential street vending areas.
The Street Vending Plan will also take into account the natural markets where sellers and
buyers naturally congregate for the sale and purchase of products and services. The Plan
will be developed after consultations with Street Vendor’s representatives and other
relevant stakeholders. While preparing the Street Vending Plan, the ULB, in coordination
with the city police, traffic police, planning authority and other local agencies, should also
devise and promote vendor friendly policies, solutions and strategies to accommodate and
facilitate street vending in a manner that is conducive to street vendors and the
public at large. This may include policies for traffic management and regulation on
market days or at certain times of the day, and arrangements for lighting, water,
sanitation and waste disposal in street vendor market areas.
The ULB may coordinate with planning authorities to develop pro-vending norms and
stipulation of vending spaces in new or refurbished roads, markets, office and
residential complexes and other public spaces and public infrastructure. This will ensure
greater acceptability of Street Vending Plans among the stakeholders. The ULB should
make every effort to minimize disruption to existing markets while developing the city
street vending plan. Accordingly, the plan may be developed in such a manner that no
relocation or eviction of street vendors takes place. Re-location of street vendors, if
required, must be based on consultation with the affected vendors. Based on the survey
findings, the City Street Vending plan may also include a digitized or non-digitized map of
vending activities, vending trades and existing markets at ward or zone level.
For preparing the City Street Vending Plan, the MEPMA shall engage consultants/
agency hired through a transparent selection process and the work shall be awarded after
approval by the state level sanctioning committee of MEPMA ie., State Urban Livelihood
Mission (SULM). City Street Vending Plans shall be submitted to the MEPMA for
approval, and will be considered final once approved by MEPMA. MEPMA will also
ensure that these plans are integrated into development plans of the city as per
requirement of the law and procedures.
24. Infrastructure Improvement:
Financial support from NULM will be provided to the ULBs for
improvement of infrastructure and provision of basic services in the existing markets
of street vendors. The ULBs will prepare a Detailed Implementation Plan (DIP) for
such infrastructure improvement projects which may include improved civic facilities
such as paving, water supply, toilets, waste disposal facility, lighting, common
storage space, and specialized carts for specific types of trades, temporary sheds and/or
parking facilities. The infrastructure requirements for vendors markets will be
assessed based on consultations with street vendors and their associations, local
agencies and other stakeholders and will be facilitated by the ULB.
The DIP for infrastructure improvement must be prepared only after the street
vendor survey for the area where the project is located, has been completed. In
exceptional cases where the survey is not initiated and the ULB feels that there is an
immediate need for a project, which will benefit a large number of street vendors,
then the survey for that area along with its cost may be included in the DIP. The ULB
must ensure that prior to commencing work on the project, the street vendors who
will benefit, have been issued the Identity Card as well as the Street Vending
Certificate as per the prevailing policy, Act or guidelines of the state. The list of
beneficiaries of the project should be placed in the public domain and displayed on
the notice board of the ULB and posted on the website of the ULB/State before
taking up the project.
While preparing the DIP, provision for providing specialized carts to the street
vendors for specific types of trades such as food vending etc. may be included with a view
to improve the hygiene and optimal utilization of space. These carts may be funded
through individual loans covered under the SEP component of NULM.
24.1. DIPs should contain:
(i) Project rationale, details of beneficiaries and stakeholders, how it will
contribute to improved street vending in the surrounding area, and how it fits
within the overall City Street Vending Plan
(ii) Land ownership details
(iii) Relocation plan, if any must be supported by a letter of consent from the
affected street vendors and/or their association
(iv) Specific infrastructure improvement project details with costs, including
operations and maintenance plan
(v) Detailed and complete list of beneficiaries who will benefit from the project - in
case the survey is not complete and will be conducted as part of the DIP, the
list of beneficiaries will have to be provided upon completion of the survey and
prior to commencement of infrastructure improvement.
(vi) Safety concerns, if any, relating to fire hazard or other hazards.
The ULB has to develop DIP for creation of “food streets”, “farmers markets”, “night
market” and other such specialized/theme based markets subject to the provisions
stipulated above. In markets where food will be prepared in the market, the ULB
should take into account issues of food safety and fire hazard in addition to other elements
of infrastructure improvement that will be required. For preparation of DIPs, the ULB shall
hire consultants using a transparent selection process DIPs must be submitted to the
Sanctioning Committee of MEPMA for approval.
25. Education & Skills Training
Street vendors, being micro entrepreneurs should be provided with vocational education and training and entrepreneurial development skills to upgrade their technical and business
potentials so as to increase their income levels as well as to look for more remunerative
The ULB will conduct one to two days training programmes for all street vendors taking
one area at a time. The aim of this program will be to orient the street vendors on aspects
such as their rights and responsibilities, specific policies or laws related to street vendors,
food safety, maintenance of hygiene, waste disposal, etc. Food vendors will be given 5 day
training for covering special knowledge pertaining to quality food, provisions of Food Safety
and Security Act, process of obtaining licence and promotion of enterprenurship among them.
Cost of conducting such specialized training programmes for the street vendors shall be met
from the Employment through Skill Training and Placement (EST&P) component of NULM.
Modules for training, IEC material and workshops may be developed/organized by the
MEPMA /ULB in partnership with any resource agency identified by them. Delivery of
training may be outsourced to a training institute, a specialized agency such as Food
Safety and Standards Authority of India or a reputed NGO. Reports of training conducted
and feedback from participants of the training programme will be submitted by the ULB on
a monthly basis.
26. Financial Inclusion
Street vendors are often unable to access organized banking services as they lack identity
documents, proof of address, tenure or legal rights over their place or business and
evidence of their trades and professions. It is envisaged that the Identity Cards issued
to street vendors under this scheme will help promote access to banking services.
MEPMA and ULBs will liaise with banks and other financial institutions to facilitate
access to banking and financial services based on documents issued to street vendors by
the ULBs.
The MEPMA at state level will include financial inclusion of urban street vendors as a
separate agenda in State Level Bankers Committee (SLBC) and District Consultative
Committee (DCC) meetings. The aim of inclusion will be to ensure that all street vendors
have bank accounts and are included in financial literacy programmes organized by
the banks.
26.1. Financial Literacy
The ULB will organise sessions on financial literacy for identified street vendors with
support of resource organisation and field staff. In these sessions the street vendors
will be made aware about the savings, credit, insurance etc., along with the modalities
and operational requirements for accessing the same. The banks and financial Institutions
shall be encouraged to communicate with the street vendors through City Livelihoods
Centre (CLC), camps etc. The ULB shall do the necessary coordination with the Lead
District Manager (LDM) of the Lead Bank and Financial Literacy & Credit Counselling
Centres (FLCCs) of the banks to organise financial literacy sessions and camps.
26.2. Opening of Basic Savings Bank Deposit Account:
This includes opening of Basic Savings Bank Deposit Accounts for all the identified
street vendors. The MEPMA in discussion and coordination with respective SLBC
Convener bank, ULB, DCC and LDM will ensure the following:
Provide the Lead District Manager of the Lead Bank and DCC with the list of identified street vendors to be covered at city level Operational formalities such as availability of forms at all the branches/ extension counter of the banks, CLCs, &ULB office.
Organize camps within the respective jurisdiction of banks for opening up of accounts with support of ULB field staff and Resource Organization.
Engagement of Business correspondents (BC) / Business Facilitators by banks as per the requirement of the city for better outreach.
26.3. Credit to Street vendors
Credit is an important requirement in street vending, both to sustain existing activity and to
upscale it. Since vendors work on a turnover basis, they often take recourse to high
interest loans from non-institutional lenders. Although they usually demonstrate high
repayment capacity, absence of collateral and firm domiciliary status usually debars them from institutional credit. State Governments and the Municipal Authorities should enable Self-Help Groups (SHGs) and organizations of street vendors to access credit from banks
through mechanism like SHG-Bank Linkage. The TVC should disseminate information
pertaining to availability of credit from various sources, especially micro-finance and should
take steps to link street vendors with formal credit structures. Street vendors should also
be assisted in obtaining insurance through Micro-insurance and other agencies.
The Government of India has launched a scheme National Urban Livelihood Mission for the
promotion of livelihoods of street vendors, where Self Employment Program ( Individual)
scheme is applied to them with a maximum of Rs. 2.00 lakhs unit cost. This loans are
based on interest subsidy, which is charged by the Banks over and above 7% rate of
interest for regular payment of instalments. The modalities and procedure for availing
loans for poor street vendors shall be similar as detailed out in SEP-Individual component
under NULM.
26.4. Credit Card for Urban Street Vendors:
The ULB shall also facilitate credit cards for eligible urban street vendors to meet
their working capital and miscellaneous credit needs. The ULB shall identify the
prospective street vendors and facilitate linkages with banks for issuance of credit cards. The focus is to initially facilitate issuance of existing credit cards of banks such as General
Credit Card (GCC) or any other variant of credit card for micro enterprise development to
the urban street vendors. With respect to credit, the Credit Guarantee Fund Scheme for Small Industries (CGFSI), designed by the Ministry of Micro, Small & Medium Enterprises,
Government of India and the Small Industries Development Bank of India (SIDBI) shall be
extended to the street vendors. This scheme is aiming at resolving the problem of collaterals, and inducing banks to gradually move away from a completely risk-averse stance toward small scale industries.
25. Social Security (Insurance)
Street vendors as a group belong to the unorganized sector of the economy. As such, they
have access to Government-assisted social security schemes such as Old Age Pension
and other benefits are being provided through the Welfare Boards and similar bodies. But,
their coverage of street vendors is very small. S t e p s f o r facilitating protective social
security to the street vendors to take care of contingencies such as sickness, maternity and
old age are to taken care.
In order to bring the street vendors within the ambit of social insurance and to
provide coverage from risks/ uncertainties ULBs shall facilitate enrolment of street
vendors in insurance schemes of Government of India such as Rashtriya Swasthya
Bima Yojana (RSBY) for health insurance, Janashree Bima Yojna and Micro Insurance
of LIC for Life Insurance or any state specific insurance schemes. However, the
enrolment in any insurance scheme by ULB should be as per the free will of the street
vendors. The ULB will also promote awareness and facilitate enrolment of street
vendors in other social security, welfare and social assistance schemes of state and
central government.
26. Allotment of Space/Stationary Stalls
Stationary vendors should be allowed space/stalls, whether open or covered, on license
basis after photo census/ survey and due enquiry in this regard, initially for a period of
10 years with the provision that only one extension of ten years shall be provided
thereafter. After 20 years, the vendor will be required to exit the stationary stall (whether
open or covered) as it is reasonably expected that the licensee would have suitably
enhanced his/her income, thereby making the said stall available for being licensed to a
person belonging to the weaker sections of society. Wherever vending stall/vending space
is provided to a vendor on a lease basis for a certain number of years, care should be
taken that adequate reservation is made for the SCs/STs in accordance with their share
in the total population of the city. Similarly, priority should be given to physically
challenged/disabled persons in the allocation of vending stalls/vending spaces as
vending space can be a useful medium for rehabilitating physically challenged/disabled
persons. Further, a suitable monitoring system should be put in place by the TVC to
ensure that the licensees of the stationary stalls do not sell/ let out their stalls.
27. Rehabilitation of Child Vendors
To prevent vending by children and seek their rehabilitation wherever such practice
exists, in conformity with the Child Labour (Prohibition & Regulation) Act,1986, the State
Government and Municipal Authorities should undertake measures such as sending the
children to regular or bridge schools, imparting them skills training etc.
28. Sanctioning Committee at the State Level
State Urban Livelihood Mission, a state level sanctioning committee, under the
chairmanship of Principal Secretary/Secretary in-charge of NULM, Commissioner& Director
of Municipal Administration, Commissioner of Women & Child Welfare, State level
representative from the Police Department, Managing Director, TUFIDC, Engineer in Chief of Public Health, One Nominee from the Ministry of H&UPA as members at the State level. The Mission Director, MEPMA is the Member Convener of the Committee for consideration and approval of proposals of street vending programs submitted by ULBs/ MEPMA.
29. Monitoring and Evaluation
The MEPMA at the State level and Town Vending Committee at the ULB level will closely
monitor progress of activities / targets of street vending programs, undertake
reporting and evaluation. The MEPMA and the ULB shall report timely progress in
formats indicating the cumulative achievement monthly and up to the end of the quarter
and key issues in implementation.
In addition, the ULBs will be required to submit their progress reports online and may also
use this tool to monitor progress on the ground. In the spirit of proactive disclosure of
information and ensuring transparency under NULM, key progress reports under Support
to Urban Street Vendors will also be made available in the public domain in a timely
30. Promoting Vendors’ Organizations
To enable street vendors to access the benefits of social security schemes and other
promotional measures in an effective manner, it is essential that the street vendors are
assisted to form their own organizations. The TVC should take steps to facilitate the
formation and smooth functioning of such organizations of street vendors to organize
themselves by providing counseling and guidance services wherever required.
31. Capacity Building to Street Vendors and Town Vending Committees:
The MEPMA shall organize capacity building programmes to enable the street vendors to
exercise the rights contemplated under Act. Further training programs shall be conducted for the members of the TVCs, Elected representatives of ULB and others from time to time for providing awareness and refreshing the policies and provisions of the Act. Further to
undertake research, education and training programmes to advance knowledge and
understanding of the role of the informal sector in the economy, in general and the street
vendors, in particular and to raise awareness among the public through Town Vending
32. Other Promotional Measures
The Government of India has launched a scheme National Urban Livelihood Mission and
included support to street vendors as one of the components. Major financial
assistance will be provided under this scheme. Any promotional measures suggested
from time to time will also be covered for the welfare of street vendors in the State.


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