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Karnataka Cabinet clears Rs 42 crore subsidy to provide vehicles for street vendors in GBA jurisdiction

Last year, Karnataka Deputy CM D K Shivakumar, who is in-charge of the development of Bengaluru city, had indicated that 27,665 street vendors had registered for the supply of vending carts.

VendorsStreet vendors in Dasarahalli in North Bengaluru. (File Photo)

Ahead of the impending elections for the Greater Bengaluru Area (GBA) corporations, the Karnataka Cabinet Thursday approved the empanelment of vendors for providing subsidised auto-rickshaws, cars and e-vending vehicles to eligible persons in the city at a cost of Rs 42 crore.

The government has proposed providing subsidies for purchases of autorickshaws, cars and e-vending vehicles to eligible beneficiaries and street vendors in the five GBA corporations where elections are due later this year.

The urban development department of the state government has proposed a maximum subsidy of Rs 80,000 per auto-rickshaw and Rs 1.5 lakh for cars for eligible beneficiaries in the five GBA corporations. Street vendors are being provided a 90 per cent subsidy on e-vending vehicles under the GBA proposal. The subsidies have been proposed under the welfare programs of GBA.

The cabinet Thursday provided “administrative approval for the scheme to provide subsidy to the qualified organisations in the Empanelment Tender for purchase of e-vending vehicles desired by eligible street vendors.”

Last year, Karnataka Deputy CM D K Shivakumar, who is in-charge of the development of Bengaluru city, had indicated that 27,665 street vendors had registered for the supply of vending carts as part of efforts to move street vendors to designated zones in the city.

“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,” he had stated in 2025.

The Karnataka government also announced an eight per cent interest last year “for loans up to Rs 1 lakh for the registered street vendors who have reached the maximum loan limit under PM Swanidhi Scheme, to help them expand their business.”

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