The Government of India has introduced a new sub-scheme under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY – NRLM) entitled “Aajeevika Grameen Express Yojana” (AGEY) from the financial year 2017-18.
Objectives of Aajeevika Grameen Express Yojana
- We aim to help members of Self-Help Groups (SHGs) in rural areas, who are part of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), find new ways to make a living. One way we’re exploring is by supporting them to run public transport services in underserved rural regions, as identified by each state.
- Our goal is to establish reliable, safe, and affordable transportation options that are managed by the community. These services will link remote villages with essential facilities like markets, schools, and healthcare centers. By leveraging the resources available through DAY-NRLM, we aim to foster economic growth and development in these neglected areas.
Salient Features
The program will use the Community Investment Fund (CIF) provided to Community Based Organizations (CBOs) under the current provisions of the DAY-NRLM scheme to help SHG members run public transport services.
The States will have the following two options to implement the scheme:
Option I:
- The Community Based Organisations (CBOs) will use funds from their CIF corpus to finance the purchase of vehicles.
- The CBO will own the vehicle but lease it to Self-Help Group (SHG) members.
- SHG members will operate the vehicle on designated routes and pay a monthly lease rental to the CBO.
- We’ll set the monthly lease rental at a reasonable amount to make sure the SHG member’s enterprise stays sustainable. The SHG member will pay back the vehicle’s cost over a maximum period of 6 years without any interest charges.
- The CBO will cover annual expenses such as insurance, road tax, permit costs, and maintenance, including tire replacement, up to a maximum of Rs. 2.00 lakhs per vehicle per CBO for the scheme duration from 2017-18 to 2019-20.Running costs and routine maintenance (e.g., fuel, oil, servicing) will be the responsibility of the SHG member.
- Once the vehicle’s cost is fully paid through lease rentals, the CBO will decide on its ownership. This may involve transferring ownership to the SHG member for a fee or selling it to another party.
Option II:
- The Community-Based Organization (CBO) is offering interest-free loans from its Community Investment Fund (CIF) to Self-Help Group (SHG) members for purchasing vehicles.
- SHG members are expected to repay the loan within a maximum period of 6 years.
- SHG members are responsible for covering all expenses associated with operating the vehicle. These include annual costs such as insurance, road tax, permit fees, maintenance, as well as ongoing expenses like fuel and oil.
- Once you’ve fully repaid the loan, we’ll transfer ownership of the vehicle to you, the SHG member.
Implementation
- State authorities, in collaboration with Community-Based Organizations (CBOs) under the DAY-NRLM initiative, identify roads lacking adequate transportation facilities, particularly those constructed through the Pradhan Mantri Gram Sadak Yojana (PMGSY).
- Self-Help Groups (SHGs) then receive interest-free loans to buy new vehicles for operating on these identified routes, enabling them to provide public transportation services.
- The SHG members will operate these vehicles on approved routes based on the assessed need and financial viability, determined jointly by the CBO and SHG.
- All vehicles enrolled in this program will be easily recognizable due to a predefined color code and branding associated with the Atal Bhujal Yojana (AGEY), ensuring clear identification.
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