40% subsidy for rural entrepreneurs to set up hi-tech agriculture machinery hubs

Financial assistance is available for hi-tech hubs with a project cost more than Rs 1 crore

Under its Sub Mission on Agricultural Mechanization (SMAM) scheme, the Indian government is providing financial assistance to establish hi-tech machinery hubs for high value crops like sugarcane and cotton. Financial assistance is provided to rural entrepreneurs (rural youth and farmers as entrepreneurs), cooperative societies of farmers, registered farmers societies, farmer producer organizations (FPOs) and panchayats to establish hi-tech hubs for agriculture machinery.

The maximum permissible assistance per machine under the project is 40% of the machine cost. The hubs having the project cost more than Rs 1 crore will be established under the model of credit-linked back-ended financial assistance, which implies beneficiaries will be provided subsidy after taking loans from designated banks.

The bank will lock the financial assistance released to the beneficiaries for a period of four years. The beneficiary will repay the complete bank loan within the period of not less than four years. The beneficiary will not be allowed to transfer/sell/mortgage the hub to any one before the completion of six years.

Those interested in establishing hi-tech hubs may visit the agriculture/horticulture offices in their respective districts to seek guidance. They can also visit the website https://agrimachinery.nic.in for detailed information.

Cost norms and pattern of financial assistance for establishment of hi-tech hub

Objectives of hi-tech hubs

• To promote utilization of hi-tech, high value machines for higher productivity.
• To provide hiring services for various high-value crop-specific machines and PHT equipment applied for different operations.
• To expand mechanized activities during cropping seasons to cover large areas.
• To involve manufacturers for setting up such centres.

Area of operation and composition of hi-tech hubs

• Hubs will be established in the districts identified for implementation in the state annual action plan (AAP) having a larger area under cash and other value crops.
• Each hub of agricultural machinery/implements will have the capacity to cover at least 500 hectares in a cropping season. Machines can be hired for crop specific operations.
• The following parameters may be chosen for selection of village/town for setting up of custom hiring centres:
  1. Large area under cash or high-value crops
  2. High potential areas
• District-level agencies will identify/invite applications to set up hubs.
• It will be necessary to maintain and upgrade the hubs from time to time.

Identification of machines

The rural entrepreneurs (rural youth and farmer as an entrepreneur), cooperative societies of farmers registered farmers societies, farmer producer organizations (FPOs) and panchayats will select such machinery and post-harvest technology (PHT) equipment appropriate for the cash and other high-value crops grown in the identified districts. The type and capacity of the machines will be selected on the basis of area to be covered in a cropping season.

Monitoring of hi-tech hubs

The established hubs are provided technical assistance from Krishi Vigyan Kendras (KVKs)/enlisted manufacturers/approved testing centres, farm machinery training & testing institutes (FMTTIs) and Indian Council of Agricultural Research (ICAR) centres to maintain and train the hi-tech hub entrepreneurs. The hubs established under the SMAM are supervised by the district agriculture officer for its operation so that custom hiring charges are reasonable and affordable to small and marginal farmers.

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