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Rural Prosperity

Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY)

Bridging Socio-Economic Gaps through Targeted Interventions

Posted On: 01 MAY 2025 1:13PM

Introduction

The Pradhan Mantri Anusuchit Jaati Abhyuday Yojna (PM-AJAY) is a comprehensive initiative by the Government of India, launched in FY 2021-22, aimed at the socio-economic upliftment of Scheduled Castes (SCs). It is a merger scheme of three erstwhile Centrally Sponsored Schemes, namely, Pradhan Mantri Adarsh Gram Yojana (PMAGY), Special Central Assistance to Scheduled Castes Sub Plan (SCA to SCSP) and Babu Jagjivan Ram Chhatrawas Yojana (BJRCY). Implemented by the Ministry of Social Justice & Empowerment, the scheme focuses on reducing poverty, enhancing educational opportunities, and improving infrastructure in SC-dominated areas.​

The scheme is 100% funded by the Central Government. However, the States/UTs are free to provide additional funds from their own resources if they so desire. The states are required to submit their Annual Action Plans (AAPs) online through the PM-AJAY portal in order to receive funds from the central government. The planning process is decentralized, allowing for the creation and approval of projects at both state and district levels.​ In 2024-25, the central government received 234 project submissions from state governments, in which 83 projects got sanctioned with 1.18 lakh funds released.

 

 

The Scheme implemented in total 28 States and UTs. Arunachal Pradesh, Nagaland, Meghalaya, Mizoram, Andaman & Nicobar Islands, Dadra Nagar Haveli, Daman & Diu, Ladakh& Lakshadweep are not covered under this scheme.

 

Eligibility Criteria for the Scheme

 

  • The Scheduled Castes persons living below the poverty lines are eligible for getting benefits under the various Income Generating Schemes and Skill Development Programmes.
  • In case of Infrastructure Development, the villages having 50% or more SC population are eligible for grants under the Scheme.
  • As far as definition of poverty line and selection of SC families living below poverty line is concerned, the guidelines issued by the erstwhile Planning Commission and the procedure laid down by the Ministry of Rural Development for selecting the beneficiaries through the Panchayati Raj institutions, is adopted.

 

Key Components of the Scheme

 

PM-AJAY encompasses several components designed to address various aspects of development:​

 

1. Adarsh Gram Development

Transforming SC-majority villages into ‘Adarsh Grams’ (model villages) by filling critical gaps in infrastructure and services.​ Up to 50% of the total allocated funds under the scheme to the States/UTs are used for gap-filling activities for selected villages. In FY 2024-25, 4,991 villages have been declared as Adarsh Gram and 4,25,821 beneficiaries have been benefited. Further, 29,846 villages have been selected for this component for 2025-26. Till March 2025, more than 11,000 villages have been declared as Adarsh Grams.

 

An ‘Adarsh Gram’ is one wherein people have access to various basic services so that the minimum needs of all the sections of the society are fully met and disparities are reduced to a minimum. These villages would have all such infrastructure facilities and its residents will have access to all such basic services (like drinking water, sanitation, education, nutrition, etc.) that are necessary for a dignified living, creating thereby an environment in which everyone is enabled to utilize his/her potential to the fullest.

 

2. Grants-in-Aid for Socio-Economic Projects

Providing financial assistance for district/state-level projects aimed at the socio-economic betterment of SCs. This includes:​

  • Creation of infrastructure in SC-dominated villages.​
  • Construction of hostels/residential schools.​
  • Comprehensive livelihood projects, including skill development and related infrastructure.​
  • Financial assistance towards loans taken by beneficiaries for asset acquisition/creation required for livelihood generation.​

 

The balance available funds under the scheme, after the share for other three components has been taken out, will be provisionally allocated to the States/UTs in proportion to their SC Population (50% weightage) and on the basis of the ratio of Special Component Plan (now known as State SCSP) to the Annual Plan as compared to the SC population in the States/UTs. The State Scheduled Caste Sub-Plan (SCSP), is an umbrella strategy to ensure flow of targeted financial and physical benefits from all the general sectors of development for the benefit of SCs. 25 States have submitted Perspective Plans for 2023-24, 2024-25 & 2025-26 and Rs. 457.82 crore has been released for 8,146 projects including 987 projects for skill development during 2023-24 & 2024-25 under this component.

 

 

3. Construction of Hostels

This component includes building hostels in higher educational institutions ranked under the National Institutional Ranking Framework (NIRF) and funded by the Centre/State/UT Governments. Similarly, it also includes constructing hostels in schools funded by the Centre/State/UT Governments and recommended by the Ministry of Education.​ Up to 2% of the total allocated funds are utilized for hostel construction and repair. So far, 891 hostels are sanctioned (27 hostels sanctioned during 2024-25) under the PM-AJAY covering 69,212 beneficiaries and an amount of Rs.936.27 crore has been released, thereby encouraging students belonging to scheduled castes to attain quality education.

4. Monitoring and Evaluation

This component has an allocation of up to 5% of the total funds for administrative expenses, including:​

  • Development of a centralized Management Information System (MIS).​
  • Hiring institutions for technical resource support and manpower.​
  • Provision of office equipment and IT facilities.​
  • Undertaking evaluation projects and social audits.​
  • Social Audit of the scheme implementation.

During 2024-25, Rs. 6.64 crore has been utilized as administrative expense under PM-AJAY.

 

Success Stories

 

After losing his job during the Covid19 pandemic and struggling to find work for seven months, Kesavan was introduced to the program by his sister, who had benefited from a similar initiative. He applied for and received a loan in 2020-21 under the GIA component, State loan component and contributing Rs 35,000 of his savings to launch his business, demonstrating his commitment to success. Kesavan successfully established his own Pharmacy shop in Vellore district.

 

 

KP Durai from Kanchipuram district, was working for a welding contractor. Due to her working hours, on the advice of her contractor she started her own business 'Ajay Welding Works' in Enathur and provided jobs to two persons. After running this business for 18 years now, she got the opportunity to do L&T's fabrication work for which she needed funds up to Rs. 5 lakhs. She came to know about the GIA component and loans schemes of the State from her friends. She received a loan of Rs. 5 lakhs with a subsidy of Rs. 1.36 lakhs. With this amount, she undertook fabrication work, valve stent works and presented it to L&T in her village. Now she is providing employment to 6 persons, and her monthly income has increased from Rs. 20,000 to Rs. 40,000.

 

Conclusion

 

PM-AJAY represents a significant step towards the holistic development of Scheduled Castes in India. By focusing on poverty alleviation, infrastructure development, and educational support, the scheme aims to bridge socio-economic disparities and promote inclusive growth. Continued monitoring and adaptive strategies will be essential to ensure the scheme's objectives are met effectively.

 

References

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2112697

https://socialjustice.gov.in/writereaddata/UploadFile/86481744793621.pdf

https://pmajay.dosje.gov.in/

https://pmajay.dosje.gov.in/Writereaddata/Guidelines_PM-Ajay_may2023.pdf

https://pib.gov.in/PressReleasePage.aspx?PRID=2117272

https://sansad.in/getFile/loksabhaquestions/annex/184/AS247_3ZhLKW.pdf?source=pqals

Click here to download PDF

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Santosh Kumar | Ritu Kataria | Rishita Aggarwal

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