Amma scooter subsidy scheme revs up, but loopholes remain

In memory of the late chief minister J Jayalalithaa, the government headed by Chief Minister Edappadi K Palaniswami launched the Amma two-wheeler scheme on February 24, last year. Prime Minister Narendra Modi inaugurated the project, which aims at empowering the working women by providing subsidy for buying scooters.

According to the scheme, working women are eligible for a subsidy of 50 per cent of rate of the scooter or Rs 25,000 whichever is lower. Differently abled women get an additional 25 per cent subsidy or Rs 6,250 to purchase retro-fitted wheels.

Ever since the scheme was launched, it was a huge hit as 1,70,921 women have received the bikes out of the total 2,55,983 sanctioned. 

The government has allotted Rs 252 crore for the scheme and has fixed the annual target of distribution of subsidy for at least one lakh bikes every year. So far, the government has released Rs 397 crore as subsidy to implement the scheme.

Women, who have received the scooters under the scheme, welcome it. “I am now relieved after getting the scooter at a subsidised price. I am now able to reach my office on time and since I am newly married the scooter helps me a lot in easy transportation of groceries to my house,” K Gayathri from Mylapore told DT Next.

However, there were also some bureaucratic red tape attached to the project. “When I applied before the Lok Sabha elections, the officials delayed the process and approved the bike only after four months. The officials also did not say the exact time when the subsidy amount will be released and I think officials should inform the beneficiaries concerned so that they can plan their family expenses accordingly,” said Gayathri.

The scheme also has few drawbacks and loopholes. It does not encourage beneficiaries to buy the scooters in instalments as the officials force the women to pay the entire amount to avail subsidy. 

A Selvi, wife of Anandhan, an auto driver from Poonmallee, said, “When I approached the officials to buy scooter under Amma two-wheeler scheme I was informed that I had to pay the entire amount to buy the scooter and only after buying the scooter the subsidy would be given. My husband is an auto driver and does not earn that big to pay the full amount in one go.”

She also said that if government officials allow EMI option for buying bikes, more women would come forward to avail the subsidy for the two-wheelers. 

One of the loopholes in the scheme is submission of records of one person to avail benefits for another person. The records required to avail the subsidy for a scooter is a photo of a beneficiary along with the vehicle, fitted with a number plate.

However, one of the complaints faced in the scheme is the submission of photo of a woman to get subsidy for another woman. Husband of a beneficiary, on request of anonymity, said, “I have obtained scooter for my sister under the scheme and now I am planning to get another scooter for my wife. 

As my wife is not working, she is not eligible to receive the subsidy. But many women in my family are working and I can use their ID cards to avail the subsidy for my wife. 

One simple task that I need to do is to attach the photo of my relative along with the bike purchased and I had to submit those records to the officials.” Officials at Tamil Nadu Corporation for Development of Women (TNCDW), the implementing authority of the scheme, though accept the loopholes claim that loopholes are of no use for the beneficiaries.

“A beneficiary is eligible for receiving only one scooter under the scheme and if the beneficiary agrees to submit her records to get bike for her relative she will lose the chance of getting subsidy for her bike in future and no woman will be ready to forgo her subsidy,” said a top official from the TNCDW, on request of anonymity.

On allowing instalment option, the official said, the subsidy will be given only after the repayment of the entire EMI amount and the officials sometimes do not encourage it because it will be tough to track the subsidy application after two years and there are chances that the concerned person might even stand to loose the subsidy entirely.