Aajeevika Grameen Express Yojana (AGEY) Guidelines – Sep, 2023.pptx

Aajeevika Grameen Express Yojana (AGEY) Guidelines

1. Aajeevika Grameen Express Yojana (AGEY)

2. Objectives To provide an alternative source of livelihoods to members of SHGs under DAY-NRLM by assisting them to operate public transport services in backward rural areas. To provide an opportunity to CBOs to work and also to support the livelihoods of SHG members in a new domain of public transport to address the limits to mobility and accessibility to public transport facilities faced by rural women. 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 healthcare for the overall economic development of the area.

3. Salient features AGEY aims to provide alternate livelihood opportunities to community members by providing rural transport services to connect remote villages with key services and amenities including access to markets, education, and healthcare. As the vehicles are to be provided in rural areas where the economic feasibility for operating commercial transport vehicles was low, the AGEY provides a provision of meeting the viability gap by providing an interest free loan to the SHG members/CBOs for the purchase of the vehicle and it is envisaged that this will help in the overall economic development of the area. The AGEY is a demand based program and the states can seek to support vehicles in remote blocks (which meet the eligibility criteria defined in these guidelines) and villages of the state based on need and demand, which shall be assessed and approved by the EC of the MoRD .

4. Key Processes under NRLM Identification of Villages and Blocks- Identify areas with gaps in vehicular connectivity. Route Feasibility Survey Conduct surveys to finalize routes for villages with little or no connectivity. Collaborate with state transport departments and panchayati raj institutions. Vehicle Selection and Business Planning Suggest appropriate vehicles (3-wheeler or 4-wheeler) based on survey results. Estimate Profit & Loss (P&L) and viability gap. Recommend vehicle ownership (SHG member or CBO). Operations and Monitoring Develop a business plan for vehicle operations. Regular monitoring and review of operations. Motivation and Training Motivate CBOs and SHG members about the AGEY opportunities. Identify and train potential SHG members through RSETI or similar organizations. Standard Operating Procedures (SOPs) Create SOPs for operating different types of vehicles. Specify cash flow needs and expense management. Emphasize the importance of understanding cash inflows vs. profit. 7. Funding and Vehicle Procurement Transfer AGEY funds to CBOs for vehicle purchase. Ensure vehicles are new and have good after-sales service. Beneficiaries contribute a minimum of 10% of the vehicle cost. 8. Impact Evaluation Capture baseline information of beneficiaries and villages. Evaluate the impact post-implementation. Monitoring and Operation CBOs to ensure vehicle operation on predefined routes and frequencies. Monitor loan or lease repayment to avoid defaults. Data Entry and Tracking SRLM block team to enter vehicle and beneficiary details. Monthly repayment data and revenue achievements to be recorded on the DAY-NRLM MIS portal. Non-entry on the portal disqualifies the state from applying for new vehicles or claiming expenditures under AGEY. Cost Management Costs for route transport surveys, business plan preparation, and training to be covered by SRLM under the Capacity Building budget.

5. Implementation Options Vehicle Financing and Ownership Vehicles financed and owned by CBOs using AGEY funds. Vehicles leased to SHG members via a tripartite lease agreement. CBOs may take top-up loans if AGEY funds are insufficient. Vehicle Purchase and Funding CBOs purchase vehicles based on route viability and type. Interest on top-up loans borne by CLF and recovered through lease rentals. Entire AGEY funds can be used for vehicle purchase if maintenance funds are not required. Operation and Lease Rental SHG members operate vehicles and pay monthly lease rentals. Lease rentals set to ensure viability and cost recovery within 6 years. Periodic evaluation to decide on beneficiary rotation. Cost Recovery and Maintenance No interest charged on lease rentals. Annual costs (insurance, road tax, permits, maintenance) borne by CBOs, up to Rs. 2 lakhs per vehicle. Running and routine maintenance costs borne by SHG members. Vehicle Registration Vehicles initially registered in the name of CBOs. If CBOs are unregistered, vehicles may be registered in the name of a nominated person. Post-Lease Ownership CBOs decide on vehicle ownership after lease cost recovery. Options include transferring ownership to SHG members, selling the vehicle, or continuing lease operations. Interest-Free Loan for Vehicle Purchase CBO provides an interest-free loan from AGEY funds to selected SHG members. Tripartite agreement signed between CLF/VO, SHG, and SHG member. Loan Repayment and Costs SHG member repays the loan over a maximum of 6 years. SHG member bears all operational costs (insurance, road tax, permits, maintenance, fuel, etc.). Monthly EMI set to ensure enterprise viability and cost recovery within 6 years. Vehicle Registration Vehicle registered in the name of the SHG member. Copies of all vehicle-related documents (RC, insurance, RTO permit) kept with the lending CBO. Top-Up Loan for Larger Vehicles SHG members can take a top-up loan from banks for larger vehicles. SHG member repays the bank loan directly, with vehicle hypothecation.

6. Do's and Don'ts Loan Facilitation : SRLMs to facilitate loans for SHG members from various schemes like Women Enterprise Acceleration Fund, SIDBI Prayas , PMEGP, etc. Interest Subsidy : Limited to a maximum loan amount of Rs. 1.5 lakhs, suitable for funding cheaper vehicles like e-rickshaws. Mixed Funding : AGEY should ideally fund only the balance amount required for vehicle viability if mixed funding is used. State Convergence : States to facilitate convergence with other schemes for partial financial assistance, with the balance met from AGEY funds. EMI Reimbursement : SHG members repay EMIs to the bank, and CBO reimburses the interest amount (less subvention) quarterly. Part Financing : At least 20% of vehicles supported should have part financing from banks or through convergence. Cost Savings : Savings in the allocated cost per vehicle can be used to increase the number of AGEY vehicles provided. Fund Transfer : Fund transfers to CLFs to be done using EFMAS and FDM of DAY-NRLM.

7. Selection of Individual beneficiary: Transparent Selection : Based on poverty status (SECC data) and SHG member’s capability. SHG Membership : Must be a member of an SHG for at least 1 year. SHG itself must be at least 1 year old. Meeting Attendance : Must have attended at least 80% of SHG meetings in the past 12 months. Loan History : Must have borrowed and repaid at least one SHG loan. No Defaults : Should not be a defaulter of SHG, CIF, or bank loans. Residence : Preferably lives in the village where the vehicle route starts. Driving Capability : Preferably willing to drive the vehicle or have a family member with a commercial driving license.

8. Selection of FPO/PE Beneficiaries: Existence : Must have been in existence for at least 1 year. No Previous Grants : Should not have received a grant for vehicle purchase from government funding. Income Generation : Must generate enough income to repay the principal amount in EMIs within 6 years. Registration and Audits : Should be a registered entity with audited accounts for at least a year. Membership : At least 60% of members should be SHG members or their immediate family. Vehicle Type : Goods carrying vehicle. Passenger vehicle only if involved in tourism or customer transport business.

9. Selection of CBO Beneficiaries: Eligibility : Block must meet eligibility criteria; CBO recommended by SRLM’s district team. Existence : Must have been in existence for at least 1 year. Meetings : Should have held regular monthly meetings, documented in the minutes book. Registration : Preferably a registered entity. NPA Rate : NPA on CIF/CEF/Livelihood fund loans should be lower than 5%. Declaration : CLF must declare that only eligible beneficiaries are chosen under AGEY.