Aajeevika Grameen Express Yojana


  • 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.


  • To provide an alternative source of livelihoods to members of SHGs under DAY – NRLM by facilitating them to operate public transport services in backward rural areas, as identified by the States
  • To provide safe, affordable and community monitored rural transport services to connect remote villages with key services and amenities (including access to markets, education and health) for the overall economic development of the area by making use of the supports available within the framework of DAY – NRLM.

Salient features

  • Under the programme, the Community Investment Fund (CIF) provided to Community based Organisations (CBOs) under the existing provisions of DAY – NRLM scheme will be utilised to support the SHG members to operate the public transport services.

The States will have the following two options to implement the scheme:

Option I:

  • Vehicle will be financed by the Community Based Organisations (CBOs) out of its CIF corpus.
  • The vehicle will be purchased and owned by CBO and leased to SHG member.
  • The beneficiary SHG member will operate the vehicle on selected route and will pay a monthly lease rental to the CBO.
  • Care will be taken to ensure that the monthly lease rental fixed is reasonable and supports viability of the enterprise for the SHG member and the cost of the vehicle is also recovered from the SHG member over a maximum period of 6 years.
  • Interest will not be charged while recovering the cost through lease rental.
  • Annual cost of insurance, road tax, permit cost and maintenance cost including replacement of tyres would be borne by the CBO.
  • The maximum funding for such items shall not exceed Rs. 2.00 lakhs per vehicle per CBO for the duration of the scheme from 2017 – 18 to 2019 – 20.
  • The expenditure on this account will be incurred by the CBOs, as per requirement.
  • The running cost of the vehicle and routine maintenance (i.e. , fuel, oil, engine oil, servicing etc.) shall be borne by the SHG member.
  • The decision regarding the ownership of the vehicle after the cost of vehicle is fully paid up through lease rental will be taken by the CBO which may include transfer of ownership of the vehicle to the SHG member for a consideration or sale of the vehicle to any other person.

Option II:

  • CBO will provide an interest free loan from its CIF corpus to SHG member for purchase of the vehicle.
  • SHG member will repay the loan over a maximum period of 6 years and bear all the costs connected with the operation of the vehicle, including annual cost of insurance, road tax, permit cost, maintenance cost and all other running costs of the vehicle (i.e., fuel, oil, etc.).
  • After repayment of the loan, the ownership of the vehicle will be transferred to the SHG member