A meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh cleared the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill.
The Ministry of Housing and Urban Poverty Alleviation is likely to introduce the bill in the ongoing Monsoon session of Parliament.
Under the bill, anyone over 18 years can register as a street vendor by making a one-time fee.
Once registered with local authorities, vendors will be provided with identity cards which will allow them to sell their products in vending zones allocated to them.
The bill will also help the authorities to regulate hawking activities in public areas such as pavements and roads.
The measure also provides for setting up of vending zones for hawkers to sell their products with minimal restrictions and without fear of being fined by municipal authorities for vending in unauthorised areas.
Sonia Gandhi-led National Advisory Council had recently batted for a central legislation, saying the model bill prepared by the ministry limits the Centre's responsibility.
The bill approved today includes the recommendations of the NAC.
"A central law will prevail over all state municipal laws to the extent that they are inconsistent with the law for street vendors. Hence the states will not be required to amend municipal and police laws," the Council had said.
