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No. N.

Gavernment of India,
M inistry of Urbar, Development & Poverty Alleviation
Department of Urban Employment and Poverty Alleviation

215-B, Nirman Bhavan, New Delhi,

dated the 21s` Feb., 2003.

The Chief Secretaries/ Nodal Officers (Task Force)

Subjegft,i - Comments on Draft National Policy on Street .(.War

Vendors prepared by the Task Force.


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
any, on the draft Policy latest by 31St March 2003.
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,
FAX 3016597
Copy for similar action t

Cor-nrnission, New Dehi

1. The Planning
p.{Jviser (HUD).
(Sh.P.P.S,Thornas, Principal
Lal, DG (Lab
l". o f I aho"r , ( S t), t,,:;;nohar
. The M
Flouse, Mansingh
Welfare) /Joint S ecy, ) J ais;'ii(a:er
N ew Delhi.
Gupta, Dir.
T he Min. of R.a11ways (Sh. [).P
llway Bd., HIP- New [)e1hi. (I S
. of Social Justice 6( Empowermen
Dir,) Shastri Bhavan, New

U nder Secretary t`

a lso for Information to: -


New Delh
1. The PMO, (Addl.Secy., Dr.
2. All the Members of Task Force,:
Ghosh, h
K olkatci-?0

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



NEW DELHI -- 110011

r oduction
since time
inn has been in existence in India
S treet vending as a protes
i recent years.
their number has increased manifold
immemorial. Howeverf vendors
s t u d Mun-ibai has the largest num'°^''
According to one Y more
Delhi has around 2QQ,0®0. Calcutta has
numbering around 25Cý,OQOf Women
and Ahmedabad has around 100,000.
than 1SýJ,Q0Q street almost every city. Some
of street vendors in
constitute a large nu ber
vendors constitute approximately 2% of the
studies estimate that in the country is
The total number of street
opulation of a metropolis.
ppop a source of
crore. vending is not only
e stimated at around 1
%affordable` services to the majority of urban
employment but provide in the
by the hawkers in the economy as also
role played
population. The are considered as unlawful
due credit but they
society needs to be given This is
harassment by civic authorities.
and are subjected to continuous that "if
even after the ruling of the Supreme Court
reported to .be continuing the small
according to the exigency of the circumstances,
properly regulated convenience
walks can considerably add to the comfort and
traders on the side of everyday use for a
g eneral public,
of the gene p by making available ordinary
ordinary person, not very a ffiuent f while
compa esset
wrtýlou t 9 ping out
a fter a day's work can pick up these articles b usimess
t owards, The right to carry on trade or
o f his way to find a regular if property
the Constitution, on street pavements,
m entioned in Article 19(1)9 of are meant exclusively
cannot be denied on the ground that the streets
no other use."
for passing or re-passing and

clearly mention that

F urther Articles 3 (a) and (b) of the Constitution
direct its policy s
the State shall in particular to are adequate
men and women equally, gave the right
a the citizens,
means of livelihood. of the cor arrýun
control of the material resources
(l?) the ownership and good.
to sub serve the corr7nron
are so distributed as best
to the urban population while trying
Street vendors provide valuable services
protect the right of this
livelihood and it is the duty of the State to
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
contribution to so and is conceived of as a major initiative

poverty alleviation.

. 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
Street vendors may be stationary
structure or mobile stall (or headload). e ._
or ma
space on the pavements or other public/private areas,
o ccupying
lace to place carrying their wares
m obile in the sense
it heads, or may sell their wares
p ush carts or in cycles or bas e is
trains, bus etc. In this document, the term urban vendor
providers, stationary as well as -nobile
inclusive of both traders and service
to describe
v endors a rates all other local/region specific terms used
rehri-pa w alla, footpath dukandarsi
hawker, p heriwalla,

lk traders, etc.

rarching objective to be achieved through this

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 and
Legal To give vendors legal status by amending,
h<1VVKMg zones t11
laws and providing legitimate

urban development/ zoning plans.

appropriate use of identified space
Facilities: To provide facilitie
zom, t he urban
including the creation of hawking
on access to public spaces
gulation" To eschew imposing numerical limits
to fee-based regulation of
by discretionary licenses and instead moving
. To ke Stre ndors special component of the
Role in di tributi
g plans by treating them as an integral and
u rban development
legitimate part of the urban distribution
amon reet vendors.
Self Compliance: To promote self-compliance
of Stree e.g. Unions / Co-
0 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
urban vendors' organizations, (Unions / Co-operatives/ Associations),
police, Residents Welfare
Voluntary organizations, local authorities, the I-
conduct of urban
Association (RWAs) and others for orderly
measures for promoting a better
Rehabilitation of Child Vendors: To take
appropriate interventions for their
future for child vendors by making

rehabilitation and schooling.

promote social security
,al Security & Financial Services; To provide/
Street vendors through
insurance, etc.,) and access to credit for
promotion ofSHGs/co-operatives/Federations/ FIs etc.

drafted guidelines for

the Supreme Court orders, some cities
F ollowing
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
locate in various laces a particular
propensity of Street vendors to
suc h
disregard the formation of
O n the co t hey completely
systems in place.
n atural markets. They .also do not lave implementation
such natural markets.
Planning norms should be supportive of
.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
a uthorities
`vendors markets` in layout plans at locations of such natural markets,
for the number of vendors (static and mobile) which can cater
demand for their wares / services. If aspirants to such location exceed
f spaces available, ex s s may be regulated y fees and

not discr t enses.

M obile urban ing should be permitted in ail areas even outside the
designated vendors' markets, unless designated as 'no-vending
through a participative process (see below). The `no-vending
may be notified both in terms of location and time.' Locations
not be designated as 'no--vending' zones for frivolous reasons;
p ublic benefits claration of a no-vending zone should clearly
the pote of livelihood and non-availability of goods
and services that it would involve.
With the gro own every new area should have adequate
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
accomplished by a participatory process by a To
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 (

tr!:u tr;c, kja%ý; (it 111C

` Ac'corrdttip)t ,t ();rttICrrht IOC;tIrorr 111,1. ht tuoirfCt1 ;tý rrcý-ýctrdurtý /mw c'nk .r; p:1rtu,
ý\cck CIC
The hawker' es should constitute atleast 4U°/a of the total
t he Committee. Atleast 1/ `® of th
n umber
should be women. Process for
representatives of street vendors
selection of stre r presentativ should be based on the

following criteria:
based organisations
u ntability

T heCommittee 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
anticipated population growth. Provisions of space may include
line with
whose use
ternoorarv designations as vendors` markets (e.g. as weekly markets)
u blic pa parking lot). Timing
a t othe
tion on urban vending should correspond o f e nsuring non-
congestion of public spaces / public hygiene.
o ntinuation an u _ radation 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,
proper surveys (See nnexure --I for indicative norms provided in Delhi
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
covers to protect their wares as well as
P rovision for protective
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
"°°"° `ý ý`- iiltegal, which would in turn remove
the very basis of their
harassment, extortion and
eviction by the concerned authorities.
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
'treet vendors exceeds the supply from
licensed vendors,
number of unlicensed vendors see k
to operate, and rents are extracted
during enforcement by allowing
them to operate without licenses. Given
these inadequacies of the licensing
system and the associated rent
doing away with licensing system
is the appropriate course. However,
only prevent rent seeking but also enable the
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
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 a nte charges differentiated to

o 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


M onitor the hawking activity of a particular ward and the quali

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
damage including loss of dignity. Therefore, no street vendor should be
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) Eviction should be avoided wherever feasi
b) Where relocation absolutely ne n otic m inimum 30 days

should be served to the concerned vendors.

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

standards of living or at least to restore them, in real

ted leve
is should also be necessarily compensated.
f) State machinery must take comprehensive measures to check and
the practice of forced evictions.

Police Act and Indian. Penal

rrents to the professi n ding. They are as folic

or obstruction in public way or the
line of any act car by omitting to take

er wi ert in his possession or under his charge, causes

son in any public way or public
tion, shall be punished with fine which may extend to
is tine

obstruction in anv

street or public place by -

. Allowing ani vehicle
0 Leaving any vehicle c attl

in the public place

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
in al eviction of even
and `illegal` obstruction or causing nuisance resulting
licensed vendors.

amend the Police Act heir

6.2 The policy recommends that all States should
respective state and add the ride
" Exce p e of eet ven /hawkers and service prov's

a sonable r egulations"
6 .3 The Central Government Id also amend the Section 283 anti Section
include t e.
restrictive provisions in the
. The state government should also
e in the city plan/ cityscape.
a l Acts to make street vendors

7. Self Regullatio
ely impoi giant for the
B esides, monitoring: by external authorities,
S elf-Regulation ecially with respect to the
et vendors to practic
l: t important with respect to food
7.1 Hygiene and qua
v ending especially in s like near schools, parks etc where
a l, the
nsiderable ex children. Though quality control is essent

practice of "health inspect not be suitable for the hawkers.

ponsibility to keep the
7.2 ss: The stre
the waste etc.
environs clean - by properly disposin
in s pecified area) every
S cale of operation (Number of vendors to operate
also. Overuse may cause
iana u t hreshold and it is true for hawking
may be avoided if the
c omplications drawing stringent actions, which
Therefore, t he quant 'corms c ould be
specifications are adhered to.
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


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
banks in rural areas for on-lending to Self-Help Groups (SHGs) for
generation a ctiv ties. Likewi s hould be encouraged and directed to
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
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

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
but also a responsibility. The Street Vendors being a part of WC
u norganised se the vulnerability is very high. Hence, they should be brought
under i hrough the federation.

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 unorganized sector through governmental
would be a difficult proposition. So far,
ithMS meager sources
efforts have been restricted to OW Age Pension. Hence, it is
ive th t the unorganized sector should evolve a mechanism to mo ile
funds -to invest ing social security to the clients in tree unorganiz
Social ý__._ rally covers medical care, sickness, maternity
etc. SociL
e mployment ry, inability and survivors' benefits, old age pension
security laws our country are broadly divided into two categories
non-contributory. The contributory laws are those
p rovide for t he social security programmes by contribution paid
workers and em ers and in some cases supplemented by contributions
include ESI,
grants from o vernment. Important contributory schemes
P rovident Fund, nsion and Deposit Linked Insurance schemes etc. Non-
ributory are workmen's Compensation Act, Maternity Beneti
P ayment of Gra Act. most of these acts are applicable to organised se

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
themselves. The Government carp provide a matching contritMhOla.
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
are available f enlisting Street Vendors
Basically, 2 optio
security benefits:
office Of'
of the contribution of Street Vendors by the registration
monthly basis.
Board for Street Vendors. Either bank should
C reation of Welfare
vendors, or the vendors can deposit
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
..>I 6w-

Beedi Workers
B oard for Construction Workers/
will be deposited for a variety of social security
A fixed amount would
pension. This kind of arrangement
including health, medicare, family
e nactment of an A
Vendors' unions should be assisted
Qther o ption is that the Street and
or other agencies to promote Self-Help Groups and networking
a financial institution, which will look into
federating there to emerge as
also delivering other products such as insurance, old age
credit and
pension etc.
that the
t he workers I it is desirable
he contribution is solely rrom under
provides some niatcliing contribution. The products
nt also
ould cover the follow

for health facilities;

m aternity benefits
old age pension
child care facilities
due to natural as well
t erable to loss of goods uric
hampers their econo
a that adversely
man to cover their
There shout be special insurance schemes

S .ý T ra ining a nd Skill pgradatio

provided with training
treet vendors being micro enterprises should e
S their
technical and business skills so as to increase
rade their
income as well as to look for
Street Vendors are part of the unorganized
sector. The main objective
to get the street vendors to get organised is
for providing the following services-
0 group insurance for a variety of insurance
financial se
v elopment of small and medium
0 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 sure that institutional ,arrangements,

or[cs and other necessary actions achieve
with e Nation licy for Street Vendors

comprehensive survey of street v

build an adequate database on
street vendors particularly on large
m d iu cities to be undertaken b,