Pradhan Mantri Gram Parivahan Yojana (PMGPY)

Pradhan Mantri Gram Parivahan Yojana: Transforming Rural Connectivity

What is Pradhan Mantri Gram Parivahan Yojana?

The Pradhan Mantri Gram Parivahan Yojana (PMGPY), launched by the Government of India, is a visionary rural transport scheme aimed at enhancing connectivity in remote and underserved villages. Building on the success of the Pradhan Mantri Gram Sadak Yojana (PMGSY), PMGPY provides subsidized commercial vehicles and interest-free loans to boost public transport and create job opportunities. Focused on women empowerment and financial inclusion, the scheme supports rural entrepreneurs, particularly women self-help groups (SHGs), tribal communities, and Below Poverty Line (BPL) families, by offering up to 35% subsidies on vehicles with a maximum seating capacity of 10–12 passengers. As of 2025, PMGPY operates in select blocks, with plans to expand to 80,000 vehicles nationwide.

Key Features of PMGPY

• Subsidized Vehicles: Up to 35% subsidy or interest-free loans for commercial vehicles seating 10–12 passengers.
• Women Empowerment: Prioritizes women SHGs with interest-free loans up to ₹6 lakh for vehicle purchases.
• [](https://www.wheels42.com/cars/article/Pradhan-Mantri-Gram-Parivahan-Yojana-2024-2025)
• Viability Gap Funding (VGF): Government covers part of operational costs to ensure affordability and prevent overloading.
• [](https://www.hindustantimes.com/india/after-gram-sadak-yojna-centre-s-new-scheme-to-focus-on-rural-transport/story-tFUNJjfOJtFX1PJgvR394I.html)
• Rural Connectivity: Enhances access to markets, schools, and healthcare by connecting remote villages.
• [](https://rural.gov.in/en/press-release/gram-parivahan-yojana)
• Employment Generation: Creates jobs for rural youth, women, and marginalized communities through vehicle operation.
• Integration with PMGSY: Leverages rural roads built under PMGSY for effective transport services.
• [](https://auto.economictimes.indiatimes.com/news/industry/new-scheme-to-provide-80000-commercial-pvs-in-rural-areas-likely/53137029)

Benefits of Pradhan Mantri Gram Parivahan Yojana

PMGPY is a game-changer for rural India, offering:

• Improved rural transport for students, workers, and farmers, reducing travel time and costs.
• Financial inclusion by enabling rural entrepreneurs to own and operate commercial vehicles.
• Women empowerment through interest-free loans and training for SHGs to run transport services.
• [](https://indianexpress.com/article/india/rural-india-to-get-public-transport-with-women-behind-steering-wheel-4695650/)
• Job opportunities for BPL families, tribal communities, and rural youth, fostering economic growth.
• Enhanced access to essential services like healthcare and education in remote areas.
• Safe and regulated transport with vehicles designed for 10–12 passengers, preventing overloading.

Eligibility for PMGPY

To avail benefits under PMGPY, applicants must meet the following criteria:

• Reside in rural areas of India, preferably in blocks identified for PMGPY implementation.
• Priority given to women SHGs, tribal communities, BPL families, and retired defense personnel.
• [](https://www.hindustantimes.com/india/pm-offers-subsidy-for-rural-transport-plan/story-ekKEOuTVP3xs3gxylRDFBO.html)
• Age above 21 years with an annual income not exceeding ₹3 lakh.
• [](https://www.wheels42.com/cars/article/Pradhan-Mantri-Gram-Parivahan-Yojana-2024-2025)
• No existing ownership of commercial vehicles.
• Valid driving license and willingness to operate vehicles on designated rural routes.

How to Apply for PMGPY

To apply for Pradhan Mantri Gram Parivahan Yojana, follow these steps:

1. Contact the local Block Development Officer (BDO) or State Rural Livelihoods Mission (SRLM) office.
2. Join a women SHG or community-based organization (CBO) if applying as a group.
3. Submit an application with Aadhaar, income certificate, and proof of residence.
4. Specify the vehicle type (10–12 seater) and route for operation, aligned with PMGSY roads.
5. Avail interest-free loans or subsidies (up to ₹6 lakh) through banks or the Community Investment Fund (CIF) under DAY-NRLM.
6. [](https://egovernancecsp.in/gram-parivahan-yojana/)
7. Purchase the vehicle within 12 months, or repay the subsidy.
8. [](https://www.wheels42.com/cars/article/Pradhan-Mantri-Gram-Parivahan-Yojana-2024-2025)

For updates, visit rural.nic.in or contact the Ministry of Rural Development.

Implementation and Impact

PMGPY, initially piloted in 250 blocks, including Maoist-affected areas, has improved rural connectivity in states like Chhattisgarh, Bihar, and Uttar Pradesh. A survey in Bilaspur, Chhattisgarh, confirmed the viability of 10–12 seater vehicles for routes covering 20–22 km, connecting 10–14 villages. The scheme complements PMGSY, which constructs 150 km of rural roads daily. By 2025, PMGPY aims to deploy 80,000 vehicles, generating employment for thousands and empowering women through SHGs.

Clarification on Aajeevika Grameen Express Yojana (AGEY)

Note: The Ministry of Rural Development has clarified that no scheme is officially named “Gram Parivahan Yojana.” Instead, similar objectives are met through the Aajeevika Grameen Express Yojana (AGEY), a sub-scheme under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), launched in August 2017. AGEY provides interest-free loans to SHGs for operating transport services in 18 states, with 624 vehicles operational as of November 2018. This content uses PMGPY for clarity, as it is widely referenced.

Why PMGPY Matters

The Pradhan Mantri Gram Parivahan Yojana bridges the gap between rural and urban India by ensuring affordable, safe, and reliable transport. By empowering women and marginalized communities, it drives financial inclusion and economic growth. Apply today to transform your village’s connectivity and secure a sustainable livelihood!