Aajeevika Grameen Express Yojana (AGEY)

The Ministry of Rural Development has introduced a new scheme called Aajeevika Grameen Express Yojana (AGEY) as an initiative to assist the Self Help Groups (SHG) of backward areas. It was launched under Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM) scheme, which aims to alleviate poverty by providing skill training.

Objectives of Aajeevika Grameen Express Yojana (AGEY)

The objective of the Aajeevika Grameen Express Yojana (AGEY) scheme is to offer members of Self Help Groups an alternative household income by facilitating them to operate public transport (e-rickshaws, three and four wheeler motor vehicles) in backward rural areas. Furthermore, it aims to provide a secure, affordable and community-monitored rural transport services connecting distant villages with prime services and amenities for the overall development of the area.

Aajeevika Grameen Express Yojana Implementation

It has been announced that Aajeevika Grameen Express Yojana will be implemented in 250 Blocks in the country on a pilot basis with each block provided up to 6 vehicles to operate the transport services. The implementation will be done over a period of 3 years from 2017-2020. The number of blocks allocated for the States to execute this scheme has been informed.

Allocation of Blocks AGEY NE The grants to the Self Help Groups (SHGs) are given in the form of Revolving Fund and Community Investment Funds. This scheme is made available in two options under which the beneficiary can avail.

Interest Free Loan

Community-Based Organization (CBO) will sanction an interest-free loan up to Rs.6.50 lakhs from its own corpus to the Self Help Group member for the purchase of the vehicle. Purchasing of a second-hand vehicle is not permissible to operate this scheme.

The SHG member should repay the loan over a maximum period of 6 years and is responsible for all costs related to the vehicle (running cost, road tax, permit cost, annual cost of insurance, maintenance cost).
Transfer of ownership to the SHG member will be done after the repayment of the loan.

Lease Rental

Alternatively, CBO will finance from its CIF, i.e., it owns and leases the vehicle to an SHG member to operate the vehicle on a selected route who in turn is required to pay the lease rental to the CBO.

CBO bears all operation related costs of the vehicle provided that it does not exceed Rs.2 Lakhs during the tenure of the scheme from 2017-2020. But, it is the SHG member who is accountable for the routine maintenance and running cost of the vehicle (oil, fuel, service)
During the recovery of cost through lease rental, interest is not charged.

Eligibility Criteria

The following criteria must be satisfied to avail benefit under the Aajeevika Grameen Express Yojana (AGEY) scheme:

Only a member of Self Help Group (SHG) is eligible to benefit from this scheme.
The SHG member selected must be literate.
The selected SHG member should possess a valid commercial driving license to drive the vehicle.
Alternatively, a family member possessing a valid commercial license is eligible.

Documents Required

SHG papers (proof of being an SHG member)
Aadhar card
Driving license

NOTE: The Aajeevika Grameen Express Yojana (AGEY) scheme highly focuses on promoting the livelihoods of the women in the rural areas and thus has more provisions comparatively.

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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.