Rashtriya Udyamita Vikas Pariyojana

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Context

• Union Minister of Education and Skill Development & Entrepreneurship, Shri Dharmendra Pradhan, inaugurated the Rashtriya Udyamita Vikas Pariyojana in Sambalpur, Odisha.

Objectives and Focus

• Tailored for PM SVANidhi Scheme Beneficiaries: The project is tailored for beneficiaries of the PM SVANidhi scheme, aiming to nurture job providers.
• Entrepreneurship Training: Aims to equip individuals with comprehensive entrepreneurship training, aligning with PM Modi's vision of creating job providers.
• Reskilling and Upskilling: Focuses on reskilling and upskilling employees to enhance competitiveness and adaptability in an era of disruptive technology.

Implementation and Impact

• Training Duration: Offers comprehensive entrepreneurship training over 22 weeks through offline, online, and hybrid modes.
• Certificates: Certificates awarded upon completion, enhancing the course's credibility and value.
• Pilot Program: In partnership with Flipkart, street vendors from 10 big cities will receive training and stipends to expand their businesses.

Government's Commitment

• Empowering Street Vendors: Aims to empower street vendors and small shopkeepers through skill development and training.
• Interaction with Beneficiaries: Shri Pradhan interacted with beneficiaries from ten states, who shared their experiences and successes.
• Monitoring Mechanism: A robust monitoring mechanism will track progress, assess impact, and ensure adherence to quality standards.

Overall Impact and Achievements

• Skill Potential: Reaffirms the government's commitment to harnessing the nation's skill potential.
• Skill Development Achievements: The Ministry of Skill Development and Entrepreneurship, NIESBUD, and IIE have collectively trained over 17 lakh individuals in entrepreneurship development programs.
• Vision of a Skilled India: Aims to realize the vision of a "Kushal Bharat Viksit Bharat" through entrepreneurship promotion and skill development initiatives.

PM SVANidhi (Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi) scheme

The PM SVANidhi (Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi) scheme is a Central Sector Scheme launched by the Ministry of Housing and Urban Affairs (MoHUA) in June 2020.

It aims to provide affordable working capital loans to street vendors to resume their livelihoods that have been adversely affected by the COVID-19 pandemic. Here are the key points about the scheme:

• Objective: The scheme aims to facilitate collateral-free working capital loans of up to ₹10,000 to street vendors to help them restart their businesses and recover from the financial impact of the pandemic.
• Eligibility: Street vendors who were vending regularly on or before March 24, 2020, are eligible for the scheme. They should possess a Certificate of Vending/Identity Card issued by the Urban Local Body (ULB).
• Loan Details: The eligible vendors can avail of a working capital loan of up to ₹10,000, which is repayable in monthly installments within one year. On timely or early repayment, an interest subsidy of 7% per annum is credited to the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) on a quarterly basis.
• Coverage: The scheme covers street vendors, hawkers, thelewalas, rehriwalas, and mobile vendors engaged in vending in urban areas, including those from surrounding peri-urban/rural areas.
• Implementation: The scheme is being implemented through the lending institutions, including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, and Non-Banking Financial Companies (NBFCs).
• Digital Platform: An end-to-end digital platform, PM SVANidhi portal, has been developed to administer the scheme. The portal enables an integrated and seamless work flow, including loan application processing, sanctioning, disbursement, and interest subsidy claim.
• Benefits: The scheme not only provides financial assistance but also aims to formalize the street vendors' businesses by bringing them into the formal financial system. It empowers them to improve their livelihoods and standards of living.
• Implementation Strategy: The scheme's implementation involves mobilizing and sensitizing street vendors, facilitating the loan application process, and providing support services such as financial literacy and digital skills training.
• Monitoring and Evaluation: The scheme includes robust monitoring and evaluation mechanisms to ensure effective implementation and achieve the desired outcomes.
• Impact: The scheme has had a significant impact on the lives of street vendors, providing them with the necessary support to recover from the economic impact of the pandemic and improve their economic well-being.

PRACTICE QUESTIONS Q. Street vending is a significant part of the informal economy in India, providing livelihoods to many. Discuss the challenges faced by street vendors in urban areas and the government's measures to address these challenges. How can policies be further improved to support street vendors and enhance their socio-economic status?