Covid effect: Govt to switch gears, double ‘Apni Gaddi’ scheme subsidy

As per the scheme, the department of employment generation and training contributes 15% of the on-road price of the vehicle or Rs 75,000, whichever is less, for four-wheelers

The Punjab government has decided to rejig its ‘Apni Gaddi Apna Rozgar’ scheme to create self-employment opportunities for jobless youth in the changed post-coronavirus market scenario in the state.

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The department of employment generation and training has set in motion the process to double the subsidy support and facilitate finance for two-wheelers and light commercial vehicles (LCVs) under the self-employment programme. A proposal has been sent to the finance department to increase the subsidy given to unemployed persons on purchase of vehicles from the existing 15% to 30%.

The scheme was launched by the state government in January 2020. As per the scheme, the department of employment generation and training contributes 15% of the on-road price of the vehicle or Rs 75,000, whichever is less, for four-wheelers. In case of three-wheelers, the maximum subsidy was capped at Rs 50,000.

The beneficiary is required to make a matching contribution of 15% and the balance 70% is funded by the Punjab State Cooperative Bank through a collateral-free loan. The department has also collaborated with leading ride-hailing companies Uber and Ola to help them get on the road quickly.

Harpreet Singh Sudan, director, employment generation and training, said the scheme was started to help jobless persons purchase three-wheelers or four wheelers and collaborate with cab aggregators but the market scenario has changed due to the Covid-19 outbreak.

“As the business of cab aggregators has been hit and new opportunities are emerging, the scope of the scheme is being expanded to provide subsidy on purchase of two-wheelers, LCVs and utility vehicles,” he said.

The scheme was started in six districts, including Amritsar, Mohali, Ludhiana, Ropar and Patiala, on a pilot basis with an initial provision for subsidy of Rs 5 crore for 600 vehicles. However, it did not get the desired response and only 353 applications were received till June-end.

“The Covid-19 pandemic was not the only dampener. There have been requests from several applicants, who belong to economically weaker families, for additional support because they find it difficult to contribute their share,” another official of the department said.

The scheme was among a slew of job-oriented programmes – Harra (Green) Tractor Scheme and Yaari Enterprises being the other ones, announced by the Congress in its poll manifesto. The party had promised to provide 1 lakh taxis and light commercial vehicles per annum to jobless youth at subsidised rates without any collateral with the state government standing guarantee under it. The state government initially drew a plan to set aside a hefty sum of money and enter into an agreement with cab aggregators to help unemployed youth get taxis and LCVs on hire-purchase basis, but then abandoned for want for funds.