Karnataka Government Greenlights Major Subsidy for Street Vendors' Vehicles
In a significant move aimed at supporting urban livelihoods, the Karnataka Cabinet has given its official approval to a substantial subsidy scheme worth Rs 42 crore. This initiative is designed to provide eligible street vendors and beneficiaries within the Greater Bengaluru Area (GBA) jurisdiction with subsidized vehicles, including auto-rickshaws, cars, and specialized e-vending carts.
Details of the Subsidy Scheme and Financial Allocation
The cabinet's decision, made on Thursday, grants administrative approval for the empanelment of vendors who will supply these vehicles at reduced costs. According to the proposal from the state's urban development department, the subsidy structure is as follows:
- A maximum subsidy of Rs 80,000 per auto-rickshaw for qualified individuals.
- Up to Rs 1.5 lakh in subsidy for cars purchased by eligible beneficiaries.
- An impressive 90 percent subsidy on e-vending vehicles specifically for street vendors operating in the five GBA corporations.
This financial support falls under the welfare programs of the Greater Bengaluru Area and comes at a crucial time, with elections for the GBA corporations scheduled later this year.
Background and Registration Figures
The scheme builds upon previous efforts to organize and support street vendors in Bengaluru. Last year, Karnataka Deputy Chief Minister D K Shivakumar, who oversees the development of Bengaluru city, revealed that 27,665 street vendors had already registered for the supply of vending carts. This registration was part of a broader initiative to relocate street vendors to designated zones within the city, thereby reducing conflicts with authorities and improving urban management.
Shivakumar emphasized the protective aspect of the scheme in 2025, stating, "Tenders will be called for manufacturing this. We are bringing this scheme to ensure that the police, hooligans and officials don’t bother the street vendors." This statement underscores the government's intent to provide not just economic assistance but also a measure of security and legitimacy to street vendors.
Additional Financial Support and Broader Context
Beyond the vehicle subsidies, the Karnataka government has previously announced additional financial measures to aid street vendors. Last year, it introduced an eight percent interest subsidy on loans up to Rs 1 lakh for registered street vendors who have reached the maximum loan limit under the PM Swanidhi Scheme. This move is aimed at helping them expand their businesses and achieve greater financial stability.
The approval of the Rs 42 crore subsidy scheme represents a concerted effort by the state government to enhance the livelihoods of street vendors, who form a vital part of Bengaluru's informal economy. By providing access to modern vehicles, the initiative seeks to improve mobility, increase business efficiency, and integrate vendors more formally into the urban fabric, all while addressing practical challenges they face in their daily operations.
