New Delhi, Feb 1 (IANS): Union Finance Minister Nirmala Sitharaman on Saturday announced the setting up of a Rs 1 lakh crore fund for the development of cities and a revamp of the Prime Minister Street Vendors Atma Nirbhar Nidhi (PM SVANidhi) to enhance the earnings of street vendors as part of her Budget proposals.

“Our government has been giving priority to assisting urban poor and vulnerable groups. A scheme for the socio-economic uplift of urban workers will be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life,” said the Finance Minister.

She added that the PM SVANidhi scheme has helped over 68 lakh street vendors, giving them respite from high-interest informal sector loans.

“Building on this success, the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with Rs 30,000 limit, and capacity-building support,” she said.

The Finance Minister said that this Budget for 2025-26 identifies urban development as a key priority, with the establishment of a ?1 lakh crore Urban Challenge Fund to implement initiatives such as cities as growth hubs, creative redevelopment of cities, and water and sanitation.

Minister for Housing and Urban Affairs Manohar Lal said that the establishment of the Urban Challenge Fund reflects the government’s strong commitment to fostering sustainable and inclusive urban development.

He said that the Budget 2025-26 lays a strong foundation for Viksit Bharat by driving transformative reforms in urban development, housing, and infrastructure.

He also highlighted that the revamped PM SVANidhi scheme, which has already benefited over 68 lakh street vendors, will further facilitate access to enhanced bank loans, introduce UPI-linked credit cards with a Rs 30,000 limit, and provide capacity-building support to empower street vendors.

“This Budget reinforces our government’s commitment to ensuring that the benefits of urbanisation reach every citizen,” he said.

Manohar Lal also pointed out that this Budget aims to drive transformative reforms in six key areas over the next five years, with a focus on enhancing growth potential and strengthening global competitiveness.

“Among these, Urban Development is a key priority, aimed at modernising cities, improving infrastructure, and enhancing the quality of urban living,” he added.

PM SVANidhi was launched in 2020 when the Covid-19 pandemic and the lockdowns hit street vendors.

Under the scheme, vendors can avail themselves of loans of Rs 10,000, Rs 20,000, and Rs 50,000. As many as 95.84 lakh loans worth Rs 13,741 crore have been disbursed so far.