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Swiggy takes street food vendors online under PM SVANIDHI Scheme
Pilot launched in five cities – Ahmedabad, Chennai, Delhi, Indore, and Varanasi
New Delhi, October 5, 2020
The Ministry of Housing & Urban Affairs (MoHUA) has entered into an MoU with Swiggy, a food ordering and delivery platform, to get street food vendors on its e-commerce platform, giving them online access to thousands of consumers.
The MoU was exchanged by MoHUA Joint Secretary Sanjay Kumar and Swiggy’s Chief Financial Officer Rahul Bothra through a webinar in the presence of Secretary, Housing & Urban Affairs Durga Shanker Mishra and other officials.
To begin with, the Ministry and Swiggy will run a pilot program by on-boarding 250 vendors across five cities – Ahmedabad, Chennai, Delhi, Indore, and Varanasi. Municipal Commissioners of the five cities also participated in the ceremony through video conferencing.
Upon the successful completion of the pilot, this initiative will be expanded across the country in phases, an official press release said.
During the ongoing COVID-19 pandemic where physical distancing is the key to checking its spread, this initiative aims to radically transform the business of street vendors across cities, by facilitating them to receive orders and serve customers using the online mode of business.
In a first of its kind initiative, the Ministry has coordinated with the key stakeholders including Municipal Corporations, FSSAI, Swiggy and GST officials to ensure that necessary prerequisites were completed.
The street vendors will be helped with PAN and FSSAI registration, training on technology/ partner app usage, menu digitization and pricing, hygiene and packaging best practices.
During the ceremony, Mishra also launched the updated and modified version of PM SVANidhi Dashboard, which facilitates users not only with a better granular view of the scheme’s performance but also with additional tools for comparisons.
The Ministry began implementing PM SVANidhi Scheme from June 1 this year for providing affordable working capital loan to street vendors to resume their livelihood adversely affected due to COVID-19 lockdown.
This scheme would benefit more than 50 lakh street vendors who had been in the business on or before March 24 in urban areas including those from surrounding peri-urban/ rural areas.
Under the scheme, the vendors can avail a working capital loan of up to Rs 10,000, repayable in monthly instalments within a year. On timely/ early repayment of the loan, an interest subsidy at the rate of 7% per annum will be credited to the bank accounts of the beneficiaries through Direct Benefit Transfer on a quarterly basis. There will be no penalty on early repayment of the loan.
The scheme promotes digital transactions through cash-back incentives up to an amount of Rs 1,200 per annum. The vendors can also avail of the facility of an enhanced credit limit on timely/ early repayment of the loan.
As on October 4, more than 20 lakh loan applications have been received under the scheme. Out of these, more than 7.5 lakh loans have been sanctioned and more than 2.4 lakh loans disbursed, the release added.