No. N.

11028/2/2002-UPA=III Gavernment of India,
M inistry of Urbar, Development & Poverty Alleviation Department of Urban Employment and Poverty Alleviation

t

215-B, Nirman Bhavan, New Delhi, dated the 21s` Feb., 2003.

To The Chief Secretaries/ Nodal Officers (Task Force) Subjegft,i - Comments on Draft National Policy on Street Vendors prepared by the Task Force.

.(.War

Sir, I am directed to forward a copy of the Draft National Policy on Street Vendors prepared by the Task Force constituted for the ` purpose. You are requested to forward your suggestions/comments, if If any, on the draft Policy latest by 31St March 2003. wijlw comments/suggestions are not received by the stipulated date 'it be presumed that you have no comments to offer.

Encl: As above.
Y ours faithfully,

( K. Raja ýMohan) Under Secretary to the Govt. of India,
Tele-2301018x. FAX 3016597

Copy for similar action t Dehi New Cor-nrnission, Planning 1. The p.{Jviser (HUD). (Sh.P.P.S,Thornas, Principal Lal, DG (Lab l". . The M o f I aho"r , ( S t), t,,:;;nohar Flouse, Mansingh Welfare) /Joint S ecy, ) J ais;'ii(a:er
N ew Delhi.

T he Min. of R.a11ways (Sh. [).P
llway Bd., HIP- New [)e1hi.

Gupta, Dir.

t . of Social Justice 6( Empowermen Delhi. Dir,) Shastri Bhavan, New

(I S

U nder Secretary t`

a lso for Information to: 41
1. 2. The PMO, (Addl.Secy., Dr. All the Members of Task Force,: Ghosh, h
K olkatci-?0

New Delh

S ecretar-v to i tie Govt, of India,

OLI
N E T VENDORS
Of URBAN DEVELOPMENT MINISTRY POVERTY ALLEVIATION
N IRMAN NEW DELHI -- 110011 BHAVAN,

FOR STREET VENDORS FT NATIONAL POLICY

r oduction
since time in existence in India a protes inn has been S treet vending as recent years. manifold i their number has increased vendors immemorial. Howeverf largest num'°^'' s t u d Y Mun-ibai has the According to one Calcutta has more Delhi has around 2QQ,0®0. while numbering around 25Cý,OQOf Women around 100,000. and Ahmedabad has vendors than 1SýJ,Q0Q street every city. Some

almost of street vendors in constitute a large nu ber approximately 2% of the street vendors constitute studies estimate that in the country is
vendors The total number of street p opulation of a metropolis. pop vending is not only

a source of Urban crore. e stimated at around 1 the majority of urban %affordable` services to employment but provide the economy as also in the played by the hawkers in role population. The as unlawful entities due credit but they are considered society needs to be given This is by civic authorities. to continuous harassment and are subjected "if the Supreme Court that even after the ruling of reported to .be continuing the small of the circumstances, according to the exigency properly regulated to the comfort and convenience walks can considerably add traders on the side of everyday use for a

available ordinary articles gene p of the g eneral public, by making very a ffiuent f while hurrying ordinary person, not esset compa t ping out up these articles wrtýlou 9 a fter a day's work can pick b usi mess t owards on trade or maru.ec, The right to carry o f his way to find a regular if property

the Constitution, on street pavements, m entioned in Article 19(1)9 of exclusively that the streets are meant cannot be denied on the ground regulated no other use." for passing or re-passing and
clearly mention that (a) and (b) of the Constitution direct its policy s the State shall in particular are adequate gave the right to men and women equally, the citizens, a means of livelihood. cor arrýun resources of the control of the material (l?) the ownership and good. to sub serve the corr7nron are so distributed as best F urther Articles 3

protect the right of this livelihood and it is the duty of the State to that livelihood. This policy tries to ensure segment: of population to earn their for its population finds recognition this important section of the urban for urban and is conceived of as a major initiative contribution to so poverty alleviation.

to the urban population while trying Street vendors provide valuable services

.

Definition

t

who offers goods for sale to the A street vendor is broadly defined as a person structure but with a temporary static public without having a permanent built LIP by Street vendors may be stationary structure or mobile stall (or headload).
e ._

o ccupying

space

on the pavements

or other public/private areas,

or ma

m obile in the sense p ush carts or in cycles or bas e trains, bus etc. In this

on lace to place carrying their wares in it heads, or may sell their wares

is document, the term urban vendor providers, stationary as well as -nobile inclusive of both traders and service to describe rates all other local/region specific terms used v endors a
hawker, p heriwalla, rehri-pa w alla, footpath dukandarsi

lk traders, etc.

i
poli rarching objective to be achieved through this ironm rning liveli o

re absence of congestion and
h ygiene in public spaces and streets.

is ON
a sic objectives of the policy are: enacting, repealing Legal To give vendors legal status by amending,
urban development/ zoning plans. Facilities: To provide facilitie including the creation of hawking plans

and

h<1VVKMg zones t11 laws and providing legitimate appropriate zom, use of identified space
zoning

t he urban

on access to public spaces gulation" To eschew imposing numerical limits to fee-based regulation of by discretionary licenses and instead moving access. Role in di tributi
. To ke Stre ndors special component of the them as an integral and reet vendors.

g plans by treating u rban development s legitimate part of the urban distribution amon Self Compliance: To promote self-compliance 0

e.g. Unions / Coof Stree Organization: To promote organizations of organization to facilitate their operatives/ Associations and other forms

e mpowerment.

with representation by Participation: To set up participatory mechanisms (Unions / Co-operatives/ Associations), urban vendors' organizations, police, Residents Welfare Voluntary organizations, local authorities, the Iconduct of urban Association (RWAs) and others for orderly activities.
future

measures for promoting a better Rehabilitation of Child Vendors: To take
for child vendors by making appropriate interventions for their rehabilitation and schooling. promote social security ,al Security & Financial Services; To provide/

promotion

Street vendors through insurance, etc.,) and access to credit for ofSHGs/co-operatives/Federations/ FIs etc.

F ollowing

the

Supreme

Court orders,

some

cities

drafted

guidelines

for

the provisions made so far do not regulating urban vending activities. However, for their wares/ services is ha ý generally recognize the fact that demand arid time, manifesting as a ýý' s ecific and variable as to location laces a particular locate in various propensity of Street vendors to suc h systems in place. They .also do not lave implementation such natural markets. Planning norms should be supportive of n atural markets.

O n the co

t hey completely

disregard the formation of

zones .4.1.1 Spatial Planning norms - demarcation of vending make the plans The demarcation of zones should be city/town specific. To city / town, the conducive and adequate for the hawkers of the respective folio old be adhered to: it should take into account the natural propensity of to locate in certain places at certain times

should provide sufficient spaces, designated as `vendors markets` in layout plans at locations of such natural markets, to for the number of vendors (static and mobile) which can cater demand for their wares / services. If aspirants to such location exceed a uthorities
f spaces available, ex s s may be regulated y fees and

not discr
M obile urban

t enses.

ing should be permitted in ail areas even outside the zone' designated vendors' markets, unless designated as 'no-vending zones` through a participative process (see below). The `no-vending should may be notified both in terms of location and time.' Locations the not be designated as 'no--vending' zones for frivolous reasons; claration of a no-vending zone should clearly p ublic benefits of livelihood and non-availability of goods the pote and services that it would involve. own every new area should have adequate With the gro provisions for Street vendors. ation of vendors markets / no-vending zones should not
must be s ole discretion of any civic or police authority but by a participatory process by a To accomplished on the ice ( which for large towns / cities may be constituted

b asis of wards ) whose membership may be as follows: " Municipal Authority
" " Traffic and Local Police Public Land Owning Authority

ciation,(Market, Traders, Resident welfare, slum
static & R epresentative from associations of Street vendors ( mobile)

` Ac'corrdttip)t ý\cck CIC

,t ();rttICrrht

tr!:u tr;c, IOC;tIrorr 111,1. ht tuoirfCt1 ;tý rrcý-ýctrdurtý /mw c'nk .r; p:1rtu,

kja%ý; (it 111C

The hawker'
n umber representatives selection of stre following criteria: of

es should constitute atleast 4U°/a of the total
t he Committee. should be Atleast women. 1/ `® of th for street vendors Process

r presentativ

should be based on the

based organisations
u ntability

vendors` Committee should ensure that provisions for space for markets are pragmatic, consistent with formation of natural markets, sufficient increase in existing demand for vendor's goods and services, as well as likely T he
line with anticipated population growth. Provisions of space may include whose use ternoorarv designations as vendors` markets (e.g. as weekly markets) Timing parking lot). u blic pa a t othe tion on urban vending should correspond congestion of public spaces / public hygiene. o ntinuation an u _

o f e nsuring nonradation f weekly

m arkets

O ther fun

ec

ribe

below:

to the norms on amount of space to be should be provided for vendors` markets. At the town / city level enough space total city designated for vendors` markets atleast to the extent of 2..5% of the but after population. Each town / city may evolve its own quantitative norms, nnexure --I for indicative norms provided in Delhi proper surveys (See Master Plan)
4 .1.3 Qualitative guidelines refer to facilities to be provide

markets by the civic authorities. They would invariably include:

"

ide provisions for solid waste disposal Public toilets to maintain cleanliness. Aesthetic design of mobile stalls/ push carts

o vision for electricity
Provision for drinking water P rovision for protective covers to protect their wares as well as themselves front heat, rain, dust etc. Storacie facilities including cold storage

"

e ull
T raditionally issuing licenses to vendors was s seen as an instrument to give some of them 'legal' status, i on environment where urban vending is "°°"° `ý ý`- iiltegal, which would in turn remove the very basis of their harassment, extortion and eviction by the concerned authorities. However, numerical limits to such licenses, which are sought to be justified on the argument that congestion in public places would thus be avoided, has ..,-

rise to an elaborate regime of rent seeking. In the first instance, rent are derived from the issue of licenses, since .the demand exceeds the (often arbitrary) numerical limits of such licenses. Second, given the demand for
'treet vendors exceeds the supply from licensed vendors,

these inadequacies of the licensing system and the associated rent seeking, doing away with licensing system is the appropriate course. However, the
only prevent rent seeking but also enable the

a number of unlicensed vendors see k to operate, and rents are extracted during enforcement by allowing them to operate without licenses. Given

t rade-off to

be resolved.

Hence, a

system of

ion of
rd a ibed in

r to register would be v d ors to sort, city shou1,k e registered at a nominal fee to be d eed c id by the ULUS. Registration should be renewed after every three years. The registration process must be simple.

The vendors will be issued Identity Cards which would contain: -husband and wife
N ame of any one nominee from the family r members in the family (may be used for health nr

o cner social security programme) Nature of business
e rg below 14 years would not be allowed in the card for conduc::t of
S.

T

e

r

Committee

would

be

composed

of

representatives

of

hawkers

h ers, police, local councillors, resident welfare association rs associ tions and municipal functionaries and would be empowered to: a Set the terms and conditions (planning) for hawking. e Take corrective action against defiant hawkers.

lection of Revenue - the vendors would be charged a monthly fee ccess to various services. There should be direct linkage between the urban local bodies -(UL Bs) and hawkers for collection of: Registration fee
M onthly o a nte charges

differentiated

to

Fines, if any, etc

T he Ward

Committee should e made available a proportion of revenue generated from registration fees and monthly fees from thei tions subject to a minimum grant from the local authority.

o uld be entrusted with adequate powers and resources
to:

M onitor the hawking activity of a particular ward and the quali provid Take corrective action, if required Report to City level Committee, if required
e nd revaluation / changes nodal officer to monitor and report to the Central Ministry on the

nin

of the Street vendors of the State.

l c

io

b ill

s t vulnerable to forced eviction and denial of basic right to livelihood. It causes severe long-term hardship, impoverishment and other Therefore, no street vendor should be damage including loss of dignity. forcefully evicted. They would e relocated with adequate rehabilitation only where the land is needed for a public purpose of urgent need. Therefore the
p olicy states that: a) b) Eviction should be avoided wherever feasi Where relocation absolutely ne

n otic

m inimum 30 days

should be served to the concerned vendors.

involve vendors/ representative's c) Affected implementation of the rehabilitation project.
n dors should be assisted in their efforts to improve their

standards ted leve

of living or at least to restore them, in real

f)

is should also be necessarily compensated. control State machinery must take comprehensive measures to check and the practice of forced evictions. 1

Police Act and Indian. Penal

rrents to the professi

line of er wi ert

n ding. They are as folic or obstruction in public way or the any act car by omitting to take

in his possession or under his charge, causes son in any public way or public two tion, shall be punished with fine which may extend to
is tine

obstruction in anv street or public place by . 0 Allowing ani Leaving vehicle

any vehicle in the public place

c attl

p art of a street or public place as a halting place for vehicles or cattle
Leaving any box, bale package of time or upon a street for an unreasonable length to any regula for sale anything for sale or setting out anything or in any in or upon any stall, booth, board, cask, and basket other way vrliatsoever.

a legal 'licensed` vendor These two provisions create the contradi al eviction of even in and `illegal` obstruction or causing nuisance resulting licensed vendors. amend the Police Act 6.2 The policy recommends that all States should respective state and add the ride /hawkers and service prov's eet ven e of " Exce p heir

a sonable r egulations"
6 .3 The Central Government include t . Id also amend the Section 283 anti Section

e.
restrictive provisions in the

The state government should also

a l Acts to make street vendors 7. Self Regullatio B esides, monitoring: by external authorities, S elf-Regulation et vendors to practic following: 7.1 Hygiene and qua
nsiderable ex practice of "health inspect 7.2 ss: The stre l:

e in the city plan/ cityscape.

ecially

ely impoi giant for the with respect to the

t important with respect to food

v ending especially in s

like near schools, parks etc where a l, the children. Though quality control is essent not be suitable for the hawkers. ponsibility to keep the the waste etc.

in s pecified area) every S cale of operation (Number of vendors to operate also. Overuse may cause t hreshold and it is true for hawking iana u may be avoided if the c omplications drawing stringent actions, which 'corms c ould be Therefore, t he quant specifications are adhered to.

environs clean - by properly disposin

typical trade to be allowed in a respected in terms of number of vendors of a h hawkers union / associa place. Registration system in participation that the threshold limit is not may be used to regulate the scale of opera

crossed.
H ERS Access to Credit

sector have little tar no access to Street Vendors being a part of the unorganized particularly for their economic credit from the formal sector financial institutions

tivities without which they will have to depend on private moneylem. borrowing at higher interest rates. NABARD has already started refinancin Income banks in rural areas for on-lending to Self-Help Groups (SHGs) for s hould be encouraged and directed to generation a ctiv ties. Likewi
e xtend credit to SHGs T he Vendors' Associations should be assisted by NGOs and under SIS for organizing SHGs, networking and federating the SHGs to create a ncial to gain

interface between the vendors and formal sector financial institutions access to larger credit not only for income generation but also for ho
w henever the need a

only While the Insurance Sector has opened up in a big way, according to IRDA, which means 12% of the insurable population to India is covered by insurance,

a privilege average Indian is abysmally underinsured. Insurance is not just responsibility. The Street Vendors being a part of WC but also a

u norganised se under i

the vulnerability is very high. Hence, they should be brought hrough the federation.

death ducts that are offered by the Insurance Companies include

a bility, group insurance, pension fund
high, provision of country, though the need for social security is very

security to the
ithMS meager sources

unorganized
would be a

sector through governmental
So far,

difficult proposition.

Hence, it is efforts have been restricted to OW Age Pension. ive th t the unorganized sector should evolve a mechanism to mo ile ing social security to the clients in tree unorganiz funds -to invest sector. Social
e mployment security laws bene ý__._ rally covers medical care, sickness, maternity etc. SociL ry, inability and survivors' benefits, old age pension viz. our country are broadly divided into two categories which non-contributory. The contributory laws are those

by t he social security programmes by contribution paid p rovide for / ers and in some cases supplemented by contributions workers and em ESI, include o vernment. Important contributory schemes grants from nsion and Deposit Linked Insurance schemes etc. NonP rovident Fund, are workmen's Compensation Act, Maternity Beneti ributory Act. most of these acts are applicable to organised se P ayment of Gra
labour. sea_tcýt but also are The Street Vendors are not only a part c>f ilw unorganized from tine `street Vendors self-employed and tile contribution has to (,()tile only 1l1or,gh The Government carp provide a matching contritMhOla. themselves. sector of which Street insurance schemes are available to the unorganized

for the promoters workers are disbursed, it is difficult Vendors are a part as the access for their products. of these schemes to create / gain for the social enlisting Street Vendors are available f 2 optio Basically, security benefits: Vendors by the registration office Of' of the contribution of Street Ilection monthly basis.

Either bank should be of Welfare Board for Street Vendors. the vendors can deposit C reation vendors, or instructed to collect the money from the basis. At the end of the month, their contribution in banks on monthly of Labour Welfare Boards. Ministry b anks will transfer the money t o the the lines of Welfare
Boards -Id take initiative for creating Welfare Beedi Workers B oard for Construction Workers/
..>I 6w-

variety of social security benefits amount will be deposited for a A fixed would pension. This kind of arrangement including health, medicare, family
e nactment of an A

Groups and networking and or other agencies to promote Self-Help N GQs which will look into emerge as a financial institution, federating there to such as insurance, old age and also delivering other products credit
pension etc.
that the t he workers I it is desirable he contribution is solely rrom under contribution. The products also provides some niatcliing nt ould cover the follow for health facilities;

Qther o ption is that the Street

by Vendors' unions should be assisted

m aternity benefits old age pension child care facilities
as due to natural as well t erable to loss of goods uric their econo hampers There shout

man

a

situation.

that adversely to cover their be special insurance schemes

u
T ra ining a nd Skill pgradatio with training should e provided treet vendors being micro enterprises S so as to increase their technical and business skills rade their alternatives. income as well as to look for
S .ý

Street Vendors are part of the unorganized sector. The main objective
to get the street vendors to get organised is for providing the following services0 group insurance for a variety of insurance prod

financial se
0 v elopment of small and medium enterprise Housing - at a later date

V ocational Training an city Build ng for aware w ell as skill up-gradation g')z n addrtron, rt is also imnortant to organize them for creation of a united front for negotiation / protection of their rights. in this regard, it is required promote organizations of street vendors e.g. SH s, Co-operatives and other .. . ilitate their empowerment. The organisation should build adequate ging finances/ investment and to be handled by professionals.

All State govern with e Nation

sure that institutional ,arrangements, or[cs and other necessary actions achieve conformity licy for Street Vendors

comprehensive survey of street v street vendors particularly on large ernments.

build an adequate database on m d iu cities to be undertaken b,