Today's Editorial

Today's Editorial - 01 May 2024

Implementing the Street Vendors Act

Relevance: GS Paper II

Why in News?

The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, which came into effect on May 1, 2014, marks a significant milestone after nearly four decades of legal jurisprudence and the efforts of street vendor movements across India. Despite its progressive nature, the Act faces numerous challenges in its implementation, as it did not guarantee the protection and security of street vendors in Indian cities.

Significance of Street Vendors:

  • Street vendors, estimated to constitute 2.5% of any city’s population, play multifaceted roles in city life. Local vegetable sellers and food vendors are essential providers of daily services.
  • Vending offers many migrants and the urban poor a source of modest yet consistent income. The vendors also make city life affordable for others by providing vital links in the food, nutrition, and goods distribution chain at reasonable prices.
  • Street vendors are also integral to Indian culture — imagine Mumbai without its vada pav or Chennai without its roadside dosa.

Provisions of the law:

  • The law acknowledges the vital role of street vendors in city life. It aimed to ‘protect’ and ‘regulate’ street vending in cities, with State-level rules and schemes executed by urban local bodies (ULBs) through by-laws, planning, and regulation.
  • The Act clearly delineates the roles and responsibilities of vendors and various levels of government. It recognises vendors' positive urban role and the need for livelihood protection. It commits to accommodating all ‘existing’ vendors in vending zones and issuing vending certificates.
  • The Act establishes a participatory governance structure through Town Vending Committees (TVCs). It mandates that street vendor representatives must constitute 40% of TVC members, with a sub-representation of 33% of women street vendors.
    • These committees are tasked with ensuring the inclusion of all existing vendors in vending zones.
  • Additionally, the Act outlines mechanisms for addressing grievances and disputes, proposing the establishment of a Grievance Redressal Committee chaired by a civil judge or judicial magistrate.
  • At least in theory, its provisions set a crucial precedent for inclusive and participatory approaches to addressing street vending needs in cities.

Challenges faced by the act:

  • At the administrative level:
    • There has been a noticeable increase in harassment and evictions of street vendors despite the Act’s emphasis on their protection and regulation.
      • This is often due to an outdated bureaucratic mindset that views vendors as illegal entities that need to be cleared.
    • There is also a pervasive lack of awareness and sensitisation about the Act among state authorities, the wider public, and vendors themselves.
    • TVCs often remain under the control of local city authorities, with limited influence from street vendor representatives.
      • The representation of women vendors in TVCs is mostly tokenistic.
  • At the governance level:
    • Existing urban governance mechanisms are often weak. The Act does not integrate well with the framework established by the 74th Constitutional Amendment Act for urban governance. ULBs lack sufficient powers and capacities.
      • Schemes like the Smart Cities Mission, laden with resources and pushed through as policy priorities from the top down, mostly focus on infrastructure development and ignore the provisions of the Act for the inclusion of street vendors in city planning.
  • At the societal level:
    • The prevailing image of the ‘world-class city' tends to be exclusionary. It marginalises and stigmatises street vendors as obstacles to urban development instead of acknowledging them as legitimate contributors to the urban economy.
      • These challenges are reflected in city designs, urban policies, and public perceptions of neighbourhoods.
  • The Act now faces new challenges, such as the impact of climate change on vendors, a surge in the number of vendors, competition from e-commerce, and reduced incomes.

Way forward:

  • While the Act is progressive and detailed, its implementation requires support, possibly necessitating top-down direction and management starting from the Ministry of Housing and Urban Affairs.
    • This needs to be decentralised over time to ensure effectiveness in addressing street vendors' diverse needs and contexts nationwide.
      • PM SVANidhi, a micro-credit facility for street vendors, has been a positive example in that direction.
    • There is a strong need to decentralise interventions, enhance the capacities of ULBs to plan for street vending in cities, and move away from high-handed department-led actions to actual deliberative processes at the TVC level.
    • Urban schemes, city planning guidelines, and policies need to be amended to include street vending.
  • The Act’s broad welfare provisions must be used creatively to meet the emerging needs of street vendors.
    • The sub-component of street vendors in the National Urban Livelihood Mission needs to take cognisance of the changed realities and facilitate innovative measures for addressing needs.

Conclusion:

The Street Vendors Act case highlights the complex interplay of contestation over space, workers in urban areas, and governance, offering valuable lessons for future lawmaking and implementation.

 

Beyond Editorial:

Sequence of events:

  • The National Policy for Urban Street Vendors was introduced in 2004.
    • Later, it was revised as the National Policy on Urban Street Vendors in 2009.
  • The Ministry of Housing and Urban Affairs (MoH&UA) circulated a draft bill titled Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009.
  • In 2010, the Supreme Court of India recognized street vending as a source of livelihood. SC directed the ministry to work out a central law, and a draft of the same was unveiled.
  • The Street Vendors Act, 2014, came into force. The bill aimed to provide street vendors with social security and livelihood rights.

Why such an increase in street vendors?

  • Poverty and Inequality: Rural-urban migration, lack of education, and poor income prospects have led people to become street vendors.
  • COVID-19 pandemic (lockdown and layoffs): The COVID-19 pandemic, with its consequent lockdowns and mass layoffs by various companies and industries, adversely impacted individuals' livelihoods, forcing them to become street vendors.
  • Entrepreneurial culture: Rising awareness about entrepreneurship among the youth has kicked off the street vending culture. It is easier to earn money with a small setup through street vending and expand it through economies of scale. e.g., Bittu Tikki Wala (BTW), MBA-chaiwala, Btech-chaiwali, etc.

The National Institute of Urban Affairs journal "Inclusive Design for Street Vendors in India" mentions some of the opportunities and challenges faced by street vendors in India.

Opportunities:

  • Creates an interesting city environment.
  • An outlet for formal sector goods links the formal sector with clients.
  • Provides affordable goods.
  • Goods and services at convenient locations.
  • Self-employment for large numbers of people.
  • Keeps the streets clean, busy, and safe.

Challenges:

  • Lack of space, e.g., surfaced pavements and secure vending sites for vendors.
  • Lack of facilities for vendors, e.g., shelter, street drainage, water, toilets, or storage.
  • Vending also takes up street space, blocks pavement and parking spaces, and causes congestion for other road users.
  • Eviction from the municipal authorities and law and order agencies in the name of encroachment.
  • Dual extortion from the police authorities and local gangs (the mafia).
  • Licensing: Street vendors are unable to get licences fairly; bribes are often asked in lieu of licences.
  • The online marketplace has challenged the prospects of street vendors. An uneven competition has been created.

Government initiatives:

  • National Association of Street Vendors of India.
  • The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme: To provide 'Swarozgar, Svavlamban, Swabhimaan' (Self Employment, Self-Sustenance, and Self-Confidence).
  • ‘SVANidhi se Samriddhi’ initiative: Designed to build a safety net for the beneficiaries’ families by linking them to the existing socio-economic welfare schemes of the Government.
  • Main Bhi Digital Drive: Campaign for Digital Onboarding and Training for Street Vendors.

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