Assistance for Custom Hiring of Farm machinery

Establishment of Farm Machinery Banks for Custom Hiring
Establishment of Hi- Tech, High Productive Equipment Hub for Custom Hiring
Financial Assistance for Promotion of Mechanized Operations/hectare carried out through Custom Hiring Centres

Cost Norms and pattern of assistance under Sub Mission on Agricultural Mechanization (SMAM)

Establishment of Farm Machinery Banks for Custom Hiring

S.No	ITEM	MAXIMUM PERMISSIBLE PROJECT COST	PATTERN OF ASSISTANCE
A	Procurement subsidy for establishment of Custom Hiring Centre upto 10 lakh	Project based	40% limited to Rs. 4.00 lakh, whichever is less.@#
B	Procurement subsidy for establishment of Custom Hiring Centre upto 25 lakh	Project based	40% limited to Rs. 10.00 lakh, whichever is less.@#
C	Procurement subsidy for establishment of Custom Hiring Centre upto 40 lakh	Project based	40% limited to Rs. 16 .00 lakh, whichever is less.@#
D	Procurement subsidy for establishment of Custom Hiring Centre upto 60 lakh	Project based	40% limited to Rs. 24.00 lakh, whichever is less.@#

Establishment of Hi- Tech, High Productive Equipment Hub for Custom Hiring

S.N	ITEM	MAXIMUM PERMISSIBLE PROJECT COST	PATTERN OF ASSISTANCE
A	Procurement subsidy for establishment of Custom Hiring Centre upto 100 lakh	Project based	40% limited to Rs. 40 lakh, whichever is less. @#
B	Procurement subsidy for establishment of Custom Hiring Centre upto 150 lakh	Project based	40% limited to Rs. 60 lakh, whichever is less. @#
C	Procurement subsidy for establishment of Custom Hiring Centre upto 200 lakh	Project based	40% limited to Rs. 80 lakh, whichever is less. @#
D	Procurement subsidy for establishment of Custom Hiring Centre upto 250 lakh	Project based	40% limited to Rs. 100 lakh, whichever is less. @#

Financial Assistance for Promotion of Mechanized Operations/hectare carried out through Custom Hiring Centres

	ITEM	MAXIMUM PERMISSIBLE PROJECT COST	PATTERN OF ASSISTANCE	Norms for Intervention
I	(a) Hiring Charges to farmer members of Farm Machinery Banks set up under SMAM	Upto a maximum of 2 ha area as per following norms (i) For tractor/power operated operations – Rs. 2000/ha per farmer per year (ii) For animal drawn mechanized operations- Rs. 1000/ha per farmer per year (iii)For manual operations – Rs. 750/ha per farmer per year	50% of the cost of operation/ha	Selection of villages from districts with low productivity in Cereals, Pulses & Oilseeds identified in other Missions for demonstrations One time hiring assistance to farmer members of the farm machinery banks set up under SMAM.
I	(b) Field Demo by CHCs	Minimum 120 ha/season per Custom Hiring Centre	Rs. 2000/ha	Demonstration charges to custom hiring centres set up under SMAM. These demonstrations will be limited to 120 ha/village

@# :The maximum permissible assistance per machine under the project will be as per the assistance indicated against each machine in the scheme guidelines. For other machines which are not indicated in the scheme guidelines, it will be 40% of the machine cost.

To access the SMAM scheme guidelines, click here.

Source : Mechanization & Technology Division, Department of Agriculture, Cooperation and Farmers Welfare

Last Modified : 3/1/2020

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