Despite eviction, street vendor loans under PM SVANidhi scheme have surged.
Credit: DH FILE PHOTO
Bengaluru, DHNS (BYLINE COPY)
Over the last few weeks, Bruhat Bengaluru Mahanagara Palike (BBMP) has been evicting street vendors occupying the footpaths at Banashankari, Jayanagar, and many other busy areas. While on the one hand, BBMP is clearing them out, on the other, the number of street vendors in Bengaluru who have received a loan under the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has nearly doubled over the last six months. According to the data by the Bruhat Bengaluru Mahanagara Palike (BBMP), close to 1.34 lakh vendors have applied for the loan so far and the officials plan to touch the 1.5 lakh mark by the end of November.
While the BBMP officials maintain that they are creating awareness among the vendors and helping them get a loan with ease, many street vendors alleged that the BBMP was providing a Letter of Recommendation (LoR) to those not engaged in street vending, just to meet the target. The Ministry of Housing and Urban Affairs had given the BBMP a target of mobilising close to 1.11 lakh street vendors in the city.
“They are randomly issuing a LoR and getting people to apply for a loan just to meet the targets. Many housewives and those not engaged in vending have also received the loan and this has turned into a money-making project. Many of them are also taking a commission of Rs 1,000 and getting a LoR for non-street vendors,” alleged Babu S from the Bengaluru Urban District Street Vendors Federation. The Town Vending Committee (TVC) members in the South zone, Babu said, have complained to the BBMP on the same and have submitted an audio recording of a middleman demanding money to get the loan approved.
According to Rangaswamy C E,
President of the Karnataka Beedi Badi Vyaapari Sanghatanegala Okkuta (KBBVS), of the 1.34 lakh beneficiaries, at least 30,000 are not eligible and this could be a problem in the future, he said.
“Without having run a trade, they will have to be given an identity card since they have availed the loans. The real vendors are already in trouble since these people tend to occupy vending areas claiming that they are authorised to. There are also cases where many of them claim an area and rent them out to other vendors,” he said.
However, BBMP officials maintained that all the applications were verified.
“The banks do not approve a loan so easily. They also check. Many street vendors do not consider those distributing paper, milk, and many other essentials as ‘street vendors’. The scheme is there to help all those making a livelihood by providing service on the streets. We should consider them as well,” said B Reddy Shankar Babu, BBMP Special Commissioner (Welfare).
Poor repayment
According to the scheme, the vendors are eligible for a loan of Rs 10,000 at a subsidised rate of interest. On repayment of the loan within a year, they would be eligible for a loan of Rs 20,000 and this would increase to Rs 50,000 subsequently. However, data from the BBMP showed that only close to 25,035 of them have repaid the loan so far, just close to 18% of those who have received the loan so far. The street vendors pointed out that the eviction and the problems by the authorities had made it difficult to run their businesses at ease.
“On one hand, they give loans to reach their target. On the other hand, they evict us. How can we work and repay the loan when such is the situation,” said Babu.
The BBMP officials, acknowledging that the repayment rate was low, said that they are trying to get the vendors to pay up. “Many of them are not aware of the benefits of repayment. Also, it is a typical human nature to not repay till they are followed up. We will go back to them and nudge them to repay by explaining the benefits,” Reddy Shankar Babu said.
New survey soon
Nearly five years after the last survey which identified only close to 25000 street vendors the Bruhat Bengaluru Mahanagara Palike (BBMP) is set to begin a new survey.
Speaking to DH B Reddy Shankar Babu BBMP Special Commissioner (Welfare) said that the survey will start within the next few days and the BBMP will use a customised mobile application to ensure transparency.
“Now we are training the enumerators to use the mobile application. The data will be stored electronically and this will prevent any malpractice” Reddy Shankar Babu said.
Though the BBMP wanted to recruit a firm to take up the survey poor response for the two tenders floated by the civic body has forced the officials to recruit the Palike staff to take up the survey.
“Our community resource officers and tailoring teachers will go on the ground for the survey. We are also seeking assistance from recognised small help groups” he added.
While the street vendors claim that nearly 1.5 lakh people are operating various trades across the city roads BBMP’s 2017 survey had identified only 25000 and only a mere 60% of them have been issued an ID card legalising their business.
“Back in 2017 the survey was not conducted in the right manner as they surveyed only a few big markets. Hence most of the traders were left out. We have been requesting a new survey ever since but in vain” Babu S said.
It’s not an eviction says civic body
Following the BBMP’s clearance drive the vendors alleged that the BBMP was illegally evicting them from their area of business and this was affecting their livelihood.
While they argued that this was against the law since the Supreme Court had said that they could not be evicted unless the civic body marked out vending zones the BBMP officials maintained that it was not an eviction but a move to decongest the junctions.
“The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act also says that the vendors cannot do business within a 10-metre radius of major junctions. Also there are specifications on the size of footpaths they can set up business. Considering this we have taken action to decongest the areas for public convenience” Reddy Shankar Babu said.
He added that the BBMP is in the process of marking vending zones.