Foodtech major Swiggy has signed an MoU with the Ministry of Housing & Urban Affairs or MoHUA to bring India’s street food vendors on to its online platform.
The initiative under PM Street Vendor’s AtmaNirbhar Nidhi or PM SVANidhi Scheme will help these vendors grow their business which was severely hit and are still struggling due to the Covid-19 pandemic.
According to a statement released by the ministry, “MoHUA and Swiggy will run a pilot program by on-boarding 250 vendors across five cities namely – Ahmedabad, Chennai, Delhi, Indore, and Varanasi.”
MoHUA has coordinated with the key stakeholders including Municipal Corporations, FSSAI, Swiggy and GST officials to ensure all mandatory guidelines are followed, the statement said.
As a part of the initiative, street food vendors will also be helped in getting PAN and FSSAI registration, menu digitization and pricing, and training for packaging and maintaining hygiene practices.
The government is targeting to benefit over 50 lakh street vendors, who also will be provided with a working capital loan of up to Rs 10,000 to be payable via 12 months EMI.
MoHUA will also reward on time and early repayment of the loan with an interest subsidy at 7% per annum. According to the ministry, the subsidy will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer and paid quarterly.
If the scheme covers more cities and opens to all kinds of vendors, it would definitely emerge as a notable distribution channel for street vendors. However, online ordering platforms like Swiggy and government agencies will have a tough time complying with regulations and maintaining hygiene standards.
After successful completion of the pilot, MoHUA and Swiggy have planned to expand this initiative across the country in phases.