About A PM-SVANidhi Scheme

Context:

As per the recent study that evaluated the impact of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), it was found that the scheme boosted annual income of street vendors by Rs 23,000.

Relevance:

GS II- Government policies and interventions

Dimensions of the Article:

1. Details
2. PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)
3. PM SVANidhi and SIDBI
4. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
5. About SVANidhi se Samriddhi

Details:

• The study that evaluated the impact of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) on street vendors was commissioned by the Union Ministry of Housing and Urban Affairs.
• It was carried out between January and June last year by the Centre for Analytical Finance of the Indian School of Business (ISB).
• The scheme provides small working capital loan for street vendors.
• The study found that the first tranche of `10,000 led to an additional annual income of `23,460 for each beneficiary.

PM Street Vendor’s Atmanitbhar Nidhi (PM SVANidhi)

• PM SVANidhi is a Special Micro-Credit Facility.
• PM SVANidhi was launched by the Ministry of Housing and Urban Affairs for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.
• Under the Scheme, the vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
• The scheme promotes digital transactions through cash back incentives.
• Beneficiaries: 50 lakh Street Vendors.

The eligible vendors are identified as per following criteria:

• Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
• The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;
• Street Vendors, left out of the ULB led identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and
• The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.

PM SVANidhi and SIDBI

• Small Industries Development Bank of India (SIDBI) is the Implementation Agency for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
• SIDBI will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• SIDBI will leverage the network of lending Institutions like Non-Bank Finance Companies (NBFCs), Co-operative Banks etc., for the Scheme implementation.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

• The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
• Beneficiaries: New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc., are eligible.
• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third-party guarantee.

About SVANidhi se Samriddhi

• It is an additional program of PMSVANidhi was launched on 4th January 2021 in 125 cities in Phase 1, covering approximately 35 Lakh Street vendors and their families.
• 22.5 lakh scheme sanctions have been extended to them including 16 lakh insurance benefits under Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeeban Jyoti Yojana and 2.7 Lakh pension benefits under Pradhan Mantri Shram Yogi Maandhan Yojana, amongst other such benefits. 
• Considering the success of Phase I, MoHUA launched the program expansion to additional 126 cities with an aim to cover 28 Lakh Street vendors and their families, with a total target of 20 Lakh scheme sanctions for FY 2022-23. The remaining cities would be gradually added to the program.
•  SVANidhi se Samriddhi program was started to provide social security benefits to street vendors for their holistic development and socio-economic upliftment.

-Source:  The Indian Express, PIB