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Ahead of Greater Bengaluru Area elections, the Karnataka Cabinet approves a major welfare scheme to provide subsidised vehicles for eligible beneficiaries and street vendors across five GBA corporations.
Ahead of the upcoming elections to the Greater Bengaluru Area (GBA) corporations, the Karnataka Cabinet has approved a ₹42-crore welfare scheme to provide subsidised auto-rickshaws, cars and e-vending vehicles to eligible beneficiaries and street vendors in Bengaluru.
The decision was taken on Thursday, with the government giving administrative approval to empanel vendors who will supply vehicles under the subsidy programme. The scheme will be implemented across five GBA corporations, where civic polls are scheduled later this year.
Under the proposal, the state’s Urban Development Department has recommended a maximum subsidy of ₹80,000 per auto-rickshaw and ₹1.5 lakh per car for eligible beneficiaries. For street vendors, the government has announced a 90 per cent subsidy on e-vending vehicles, aimed at improving livelihoods and supporting small businesses in the city.
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The Cabinet also cleared the tender process to identify qualified organisations for manufacturing and supplying e-vending vehicles to registered street vendors. The scheme forms part of GBA’s broader welfare initiatives, designed to strengthen economic inclusion and provide structured support to informal workers.
In addition, the Karnataka government had earlier announced an eight per cent interest subsidy on loans up to ₹1 lakh for registered street vendors who had already reached the borrowing limit under the PM Swanidhi Scheme. This support was aimed at enabling vendors to expand their businesses and strengthen financial stability.
Officials said the new subsidy scheme is expected to provide a significant livelihood boost to thousands of beneficiaries while also contributing to smoother urban management across Bengaluru.
