Street Vendors Management Programme – Mission for Elimination of Poverty in Municipal Areas,Andhra Pradesh

Street Vendors Management Programme

Problem

  1. Street vendors had limited education and skills, restricting their ability to tap into market opportunities.
  2. Vendors lacked access to formal credit and microenterprise support, impeding business growth and sustainability.
  3. Financial institutions were hesitant to lend to street vendors due to their informal nature and perceived credit risk.
  4. A large number of vendors and their families lacked access to government welfare schemes and social security benefits.
  5. Many vendors resorted to high-interest loans from private moneylenders, leading to financial stress and debt cycles.

Solution

  1. Conducted a comprehensive survey of vendors in 110 ULBs, issuing ID cards and Certificates of Vending (CoVs) to 4.62 lakh eligible vendors.
  2. Built trust with banks by organizing regular SLBC, DCC, and JMLBC meetings to ease loan disbursement.
  3. Launched PM SVANidhi scheme offering collateral-free working capital loans of ₹10,000, ₹20,000, and ₹50,000.
  4. Provided targeted trainings such as FSSAI certification, digital literacy, and financial education to over 3.37 lakh vendors.
  5. Formed 1602 Common Interest Groups (CIGs) and conducted Entrepreneurship Development Programs (EDP) to foster group-based access to credit and resources.

Outcomes

  1. Andhra Pradesh achieved 30% of the national share under PM SVANidhi and maintained a 95% loan recovery rate.
  2. Issued vending certificates and ID cards to 4.62 lakh vendors across the state, bringing them into formal systems.
  3. Developed 24 organized street vending markets in 20 ULBs to provide dedicated business spaces.
  4. Enabled 13.25 lakh applications under various welfare schemes, out of which 12.67 lakh were sanctioned.
  5. Significantly increased daily earnings of vendors through training and access to formal credit, as seen in the success stories of Sarvasuddhi Ramana and B. Nallamma.

Innovations

  1. Launched the Vendor Connect App to digitally manage vendor registration, profiles, and real-time data integration.
  2. Created specialized markets like Eat Streets, Food Streets, and Night Markets with structured infrastructure and DIP (Detailed Implementation Plans).
  3. Formed MoUs with Swiggy and Zomato, enabling street vendors to participate in digital food delivery platforms (324 enrolled with Swiggy, 92 with Zomato).
  4. Partnered with digital payment platforms (PhonePe, Paytm, etc.) to offer UPI training and promote cashless transactions.
  5. Conducted monthly digital transaction camps and provided cashback incentives (₹1 per transaction up to ₹100/month) to vendors.

Challenges

  1. Field staff struggled to prepare loan documentation and collect valid address proof, especially for migrant vendors during COVID-19.
  2. Branch managers showed reluctance to disburse loans due to concerns about vendor mobility and lack of credit history.
  3. Migrant nature of vendors made it difficult to track or verify their eligibility for services without a software-based solution.
  4. Vendors reported harassment from traffic police due to the absence of designated vending spaces, leading to conflicts.
  5. Digital initiatives were hampered by limited access to smartphones and internet connectivity among street vendors

SKOCH Award Nominee

Category: State Government – Municipal Administration & Urban Development
Sub-Category: secState Government – Municipal Administration & Urban Development
Project: Street Vendors Management Programme
Start Date: 5-14-2020
Organisation: Mission for Elimination of Poverty in Municipal Areas,Andhra Pradesh
Respondent: Tej Bharath N
www.apmepma.gov.in
Level: Platinum Star

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Case Study

Empowering Street Vendors in Andhra Pradesh: A Model for Inclusive Urban Development

The Street Vendors Management Programme by MEPMA, Andhra Pradesh, is a landmark initiative designed to enhance the livelihoods of urban street vendors. Rooted in the challenges exposed by the COVID-19 pandemic, this intervention leveraged the Government of India’s PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) scheme to provide structured support to a vulnerable and often neglected workforce. By blending financial inclusion, social welfare linkages, digital empowerment, and grassroots institutional mechanisms, MEPMA’s program has become a beacon of effective urban poverty alleviation.

Street vending has long been a primary source of livelihood for millions across India’s urban landscape. Yet, these vendors frequently encounter systemic obstacles including lack of formal recognition, credit access, social security, and skill development. The COVID-19 pandemic exacerbated these vulnerabilities as lockdowns disrupted street-level commerce. In response, the Government of India launched the PM SVANidhi scheme in May 2020 to extend working capital loans and promote financial and digital inclusion among street vendors.

In Andhra Pradesh, MEPMA operationalized this scheme across 110 Urban Local Bodies (ULBs), implementing a multi-tiered intervention that included credit facilitation, identity documentation, capacity building, and linkage to government welfare programs. This effort was grounded in the legal framework of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 and the corresponding Andhra Pradesh State Rules and Scheme.

MEPMA recognized a series of interlinked challenges facing the street vendor community:

  • Limited education and skills curtailed access to formal markets.
  • Dependence on high-interest informal credit sources impeded business growth.
  • Financial institutions lacked confidence in extending credit to unorganized vendors.
  • Street vendors and their families remained outside the ambit of welfare schemes.
  • Migration and lack of documentation created barriers in identification and service delivery.
  • Vendors faced harassment due to lack of formal licenses and vending spaces.

These challenges underscored the need for a holistic approach that could secure livelihoods while enabling social and financial inclusion.

The program unfolded in a structured timeline beginning May 2020. The first step was a comprehensive survey of vendors across all 110 ULBs, identifying 5.7 lakh vendors. Out of these, 4.62 lakh eligible vendors were issued ID cards and Certificates of Vending (CoVs), legitimizing their operations. This formal recognition served as a gateway to further interventions.

The program also institutionalized vendor representation through the formation of Town Vending Committees (TVCs) and Common Interest Groups (CIGs). A total of 1602 CIGs were established, fostering collective bargaining power and easier credit access.

Training was a major component. Over 3.37 lakh vendors received capacity building in digital literacy, food safety (via FSSAI certification), and financial management. Strategic partnerships with digital payment aggregators such as PhonePe, Paytm, and Google Pay facilitated the adoption of cashless transactions. Furthermore, MoUs with Swiggy and Zomato enabled select vendors to access food delivery platforms, boosting income streams.

Vendors received working capital loans in tranches of ₹10,000, ₹20,000, and ₹50,000 with repayment incentives. MEPMA organized biannual district-level meetings with bank branch managers to streamline loan disbursement and reduce hesitancy among lenders.

Infrastructure improvement was another key pillar. MEPMA developed 24 dedicated vending markets across 20 ULBs, providing vendors with organized spaces, basic services like water, sanitation, and lighting, and enhanced customer footfall.

The outcomes of the initiative have been transformative. Andhra Pradesh emerged as the national leader under PM SVANidhi, contributing 30% of the country’s share and achieving an unprecedented 95% loan recovery rate. This is a testament to the program’s effectiveness and the trust built between vendors, financial institutions, and government agencies.

Key milestones include:

  • ID and vending certificates issued to 4.62 lakh vendors.
  • Creation of 1602 CIGs and 24 vending markets.
  • Over 13 lakh social welfare scheme enrollments under “SVANidhi Se Samriddhi.”
  • Successful digital transaction onboarding for 3.37 lakh vendors.
  • Enrollment of 324 vendors with Swiggy and 92 with Zomato.

The project’s impact is also illustrated through personal success stories. One beneficiary, Sarvasuddhi Ramana, a sugarcane juice vendor from Peddapuram, revived his livelihood post-pandemic through a ₹10,000 loan and digital training. Another, B. Nallamma from Adoni, transitioned from domestic work to self-employment, now earning ₹800–₹1000 per day.

Innovation was central to MEPMA’s strategy. The Vendor Connect App was developed to digitally register and manage vendor profiles, enabling real-time data access and eligibility tracking. Theme-based infrastructure like Eat Streets and Night Markets were introduced to enhance vendor visibility and consumer appeal.

From these experiences, several lessons emerged:

  • Ground-level training is vital to empower vendors effectively.
  • Continuous monitoring and handholding ensure sustainable outcomes.
  • A community-driven model enhances acceptance and participation.
  • Tailored financial and digital literacy interventions unlock economic potential.

Despite its success, the program faced notable hurdles. Identifying and supporting migrant vendors proved difficult, as did ensuring access to mobile phones and internet services necessary for digital initiatives. Creating awareness among vendors and building their trust in formal systems was a time-intensive process. Moreover, vendors often reported harassment from authorities, pointing to the need for stronger institutional safeguards.

The program sets a compelling example for replication in other states. By integrating legal recognition, credit access, welfare linkages, and market infrastructure, MEPMA’s Street Vendors Management Programme provides a replicable blueprint for inclusive urban development and poverty alleviation.

For more information, please contact:
Tej Bharath N at mdmepma2@apmepma.gov.in

(The content on the page is provided by the Exhibitor)

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