Aajeevika Grameen Express Yojana (AGEY)

The Ministry of Rural Development launched the Aajeevika Grameen Express Yojana (AGEY), a scheme aimed at enhancing the livelihoods of Self Help Groups (SHG) in underdeveloped areas. It falls under the Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM) scheme, which strives to alleviate poverty through skill training.

Objectives of Aajeevika Grameen Express Yojana (AGEY)

The primary objective of the Aajeevika Grameen Express Yojana (AGEY) is to provide an alternative source of income to Self Help Group members by allowing them to operate public transport services like e-rickshaws and other vehicles in remote rural regions. Additionally, it seeks to deliver secure, affordable, and community-managed transport services, linking remote villages to essential services, promoting the all-around development of these areas.

Aajeevika Grameen Express Yojana Implementation

The implementation of the Aajeevika Grameen Express Yojana has been rolled out in 250 Blocks across the country on a pilot basis, with each block allocated up to 6 vehicles. This rollout occurred over a period from 2017 to 2020 with specific block allocations informed to states for execution. Grants to Self Help Groups are distributed through Revolving Funds and Community Investment Funds to drive this scheme.

Funding Options for SHG Members

The scheme offers Self Help Group members two primary funding options to participate:

Interest-Free Loan

A Community-Based Organization (CBO) provides an interest-free loan up to Rs.6.50 lakhs, which SHG members can use to purchase a new vehicle. Note that second-hand vehicles are not eligible.

Loan repayment should be completed over a maximum period of 6 years. The SHG member is responsible for all associated vehicle costs including maintenance and taxes.
Ownership of the vehicle is transferred after full loan repayment.

Lease Rental

Alternatively, CBOs may use Community Investment Funds (CIF) to purchase and lease vehicles to SHG members, who operate them on chosen routes under the scheme.

CBOs cover operational costs up to Rs.2 Lakhs for the scheme duration, but SHG members need to manage running costs such as fuel and maintenance.
No interest is levied during cost recovery through lease rentals.

Eligibility Criteria

To avail benefits from the Aajeevika Grameen Express Yojana (AGEY), certain eligibility criteria must be met:

Only Self Help Group (SHG) members are eligible.
Selected SHG members must be literate and hold a valid commercial driving license. Learn more about documentation requirements.
A family member with a valid commercial license may also be considered.

Documents Required

Documentation plays an essential role in accessing the AGEY scheme benefits:

Proof of SHG membership
Aadhar card for identity verification
A valid driving license

NOTE: The Aajeevika Grameen Express Yojana places significant emphasis on empowering rural women, enhancing their self-sustaining livelihoods. To learn more about related registrations, visit our Udyam Registration page.

For more insights into legal requirements and procedural compliance, consider our resources on Gujarat Factory Registration and ESI Registration in Gulbarga. Additionally, if you're interested in learning more about transforming your business setup, explore our guide on converting companies to LLPs.

Lastly, to understand the financial dimensions of running SHGs under governmental schemes, read our PF Registration guide in Mangaluru or check out ITR filing information.

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Frequently Asked Questions

Common questions about Aajeevika Grameen Express Yojana: Rural Transport Initiative.

The Aajeevika Grameen Express Yojana (AGEY) is a scheme introduced by the Ministry of Rural Development to assist Self Help Groups (SHGs) in backward areas by providing them an alternative household income through operating public transport services like e-rickshaws, three and four-wheeler motor vehicles. It aims to facilitate secure, affordable, and community-monitored rural transport services.

Only members of Self Help Groups (SHGs) are eligible for the AGEY scheme. Additionally, the selected SHG member must be literate and possess a valid commercial driving license or have a family member with a valid commercial license.

The AGEY scheme will be implemented in 250 Blocks across the country on a pilot basis, with each block being provided up to 6 vehicles to operate the transport services. The implementation will be carried out over a period of 3 years from 2017-2020.

The two options available for SHG members under the AGEY scheme are: 1) Interest-Free Loan, where the CBO sanctions an interest-free loan up to Rs. 6.50 lakhs for the purchase of a new vehicle, and 2) Lease Rental, where the CBO finances and leases the vehicle to the SHG member, who pays a lease rental to the CBO.

Under the Interest-Free Loan option, the SHG member is responsible for repaying the loan over a maximum period of 6 years and bearing all costs related to the vehicle, such as running costs, road tax, permit costs, insurance, and maintenance costs.

Under the Interest-Free Loan option, the ownership of the vehicle will be transferred to the SHG member after the complete repayment of the loan.

Under the Lease Rental option, the CBO bears all operation-related costs of the vehicle, provided that it does not exceed Rs. 2 Lakhs during the scheme's tenure from 2017-2020. However, the SHG member is responsible for routine maintenance and running costs like oil, fuel, and service.

The primary purpose of the AGEY scheme is to offer members of Self Help Groups an alternative household income by facilitating them to operate public transport services in backward rural areas. It also aims to provide secure, affordable, and community-monitored rural transport services, connecting distant villages with essential services and amenities for the overall development of the area.

To avail the benefits of the AGEY scheme, the following documents are required: SHG papers (proof of being an SHG member), Aadhaar card, and a valid driving license (commercial) for the SHG member or a family member.

The AGEY scheme has more provisions comparatively to promote the livelihoods of women in rural areas. As the scheme is implemented through Self Help Groups, which primarily consist of women members, it provides them with an alternative income source and empowers them financially.