Draft Nat Policy On Street Vendor

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". o f I aho"r , ( S t), t,,:;;nohar . The M Mansingh Flouse, 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`

to: a lso for Information 41 1. 2.

The PMO, (Addl.Secy., Dr. All the Members of Task Force,: Ghosh, h

New Delh

K olkatci-?0

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

OLI N E T VENDORS DEVELOPMENT URBAN Of MINISTRY POVERTY ALLEVIATION N IRMAN

DELHI -- 110011 NEW BHAVAN,

FOR STREET VENDORS FT NATIONAL POLICY

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

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

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

articles by making available ordinary g eneral public, p of the gene hurrying not very a ffiuent f while person, ordinary esset compa wrtýlou t 9 ping out work can pick up these articles a day's a fter b usimess t owards to carry on trade or right The maru.ec, 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 the ground that the streets on be denied cannot 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 to are adequate equally, gave the right women and men the citizens, a means of livelihood. cor arrýun of the material resources the of control (l?) the ownership and good. to sub serve the corr7nron are so distributed as best F urther Articles 3

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 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.

.

t

Definition

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,

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

or ma

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,

w alla,

rehri-pa

footpath

dukandarsi

lk traders, etc.

i poli rarching objective to be achieved through this o

rning liveli

ironm

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,

and

h<1VVKMg zones t11 laws and providing legitimate

urban development/ zoning plans. Facilities: To provide facilitie including the creation of hawking plans

appropriate zom,

use

t he urban

of

identified

space zoning

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

ndors

ke Stre

special component of the them as an integral and

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

reet vendors.

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 Iurban of conduct Association (RWAs) and others for orderly activities.

measures for promoting a better Rehabilitation of Child Vendors: To take

future

for child

vendors by making

appropriate

interventions

for

their

rehabilitation and schooling. promote social security ,al Security & Financial Services; To provide/

promotion

F ollowing

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

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

O n the co

t hey completely

disregard the formation of

systems in place. They .also do not lave implementation such natural markets. Planning norms should be supportive of n atural markets.

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 old be adhered to:

folio

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

t enses.

not discr

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 M obile urban

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

es should constitute atleast 4U°/a of the total

The hawker'

t he

n umber representatives

of

street vendors

should

be

r presentativ

selection of stre

of

1/ `®

Atleast

Committee.

women.

Process

th for

should be based on the

following criteria:

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

Provisions of

population growth.

anticipated

space

may include

whose use ternoorarv designations as vendors` markets (e.g. as weekly markets) Timing parking lot). u blic pa a t othe

o f e nsuring non-

tion on urban vending should correspond congestion of public spaces / public hygiene. o ntinuation an

u

_

radation

f weekly

m arkets

ribe

ec

O ther fun

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

themselves front heat, rain, dust etc. Storacie facilities including cold storage

wares

as

well

as

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,

a 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 seeking, doing away with licensing system is the appropriate course. However, the only

prevent

t rade-off to

rent

seeking

be resolved.

but

also

Hence, a

enable

the

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

r

e

Committee

would

be

composed

of

representatives

of

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.

hawkers

Take corrective action against defiant hawkers.

e

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 a nte

M onthly o

charges

differentiated

to

Fines, if any, etc

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.

T he Ward

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

l c

of the Street vendors of the State.

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)

Eviction should be avoided wherever feasi

b)

Where

relocation

absolutely ne

should be served to the concerned vendors.

n otic

m inimum 30 days

involve vendors/ representative's c) Affected implementation of the rehabilitation project. n dors should

standards

be assisted in their efforts

to

improve their

of living or at least to restore them, in real

ted leve

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

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 ert

is tine

obstruction in anv street or public place by .

Allowing ani

0

Leaving

vehicle

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 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

.

e in the city plan/ cityscape.

a l Acts to make street vendors 7. Self Regullatio B esides, monitoring: by external authorities, S elf-Regulation et vendors to practic

ecially

ely impoi giant for the with respect to the

following: Hygiene and qua

7.1

v ending especially in s nsiderable ex practice of "health inspect ss: The stre

7.2

l:

t important with respect to food

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

environs clean - by properly disposin

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.

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

difficult proposition.

So

far,

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 SociL etc. 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 f available are 2 optio Basically, security benefits: office Of' Street Vendors by the registration of contribution the of Ilection monthly basis.

be Vendors. Either bank should for Street Board of Welfare C reation 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 Beedi Workers B oard for Construction Workers/ ..>I 6w-

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

Qther o ption is that the Street

by Vendors' unions should be assisted

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

m aternity benefits old age pension child care facilities

a

man

situation.

as due to natural as well t erable to loss of goods uric their econo hampers There shout

that adversely to cover their be special insurance schemes

u T ra ining a nd Skill pgradatio provided with training enterprises should e micro being vendors treet S their skills so as to increase business and technical 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,