• The Union Cabinet approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme till March 31, 2030, with a total outlay of Rs 7,332 crore.

• The decision was taken at a meeting chaired by Prime Minister Narendra Modi on August 27.

PM SVANidhi

• Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the doorsteps of the city dwellers. 

• The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, footwear, artisan products, books/stationery, etc. The services include barber shops, cobblers, pan shops, laundry services, etc. 

• The COVID-19 pandemic and consequent lockdowns adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown.

• The Ministry of Housing and Urban Affairs (MoHUA) has been implementing Prime Minister Street Vendors Atmanirbhar Nidhi (PM SVANidhi), a central sector scheme, since June 1, 2020.

• The scheme has proved to be more than financial support for street vendors since the inception of the scheme and has given them a sense of identity and formal recognition for their contribution to the economy.

• The scheme has already achieved significant milestones. 

• As of July 30, over 96 lakh loans amounting to Rs 13,797 crore have been disbursed to more than 68 lakh street vendors.

• Nearly 47 lakh digitally active beneficiaries have conducted over 557 crore digital transactions worth Rs 6.09 lakh crore, earning a total cashback of Rs 241 crore. 

Restructuring of the scheme

• The restructured scheme provides enhanced loan amounts, UPI-linked RuPay credit cards, digital cashback incentives and wider geographical coverage.

• The lending period has now been extended until March 31, 2030. 

• The total outlay for the scheme is Rs 7,332 crore. 

• The restructured scheme aims to benefit 1.15 crore beneficiaries including 50 lakh new beneficiaries. 

• The first tranche loan limit has been raised from Rs 10,000 to Rs 15,000 and the second from Rs 20,000 to Rs 25,000, while the third tranche remains at Rs 50,000.

• Street vendors repaying their second loan on time will be eligible for a UPI-linked RuPay credit card to meet emergent business and personal needs.

• Incentives of up to Rs 1,600 will also be offered to vendors opting for digital payments on retail and wholesale transactions.

• Implementation of the scheme would be the joint responsibility of Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS), with DFS being responsible for facilitating access to loan/ credit cards through banks/financial institutions and their ground level functionaries.

• It also focuses on building the capacity of the street vendors with a focus on entrepreneurship, financial literacy, digital skills and marketing through convergence. 

• Standard hygiene and food safety training would be conducted for street food vendors, in partnership with FSSAI.

(The author is a trainer for Civil Services aspirants.)