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UdyogSetu उद्योग सेतु • 2026
🏡 Gram Panchayat & Rural Level Capital Subsidy for Farm Equipment 2026 Active Scheme

Sub-Mission on Agricultural Mechanization (SMAM - Custom Hiring Centre)

कृषि यंत्रीकरण उप-मिशन (कस्टम हायरिंग सेंटर)

Ministry / Dept: Ministry of Agriculture and Farmers Welfare • Agency: State Directorate of Agricultural Engineering / District Agriculture Officers

Max Funding Limit Up to ₹10 Lakhs to ₹25 Lakhs Project Cost (40% - 50% Direct Subsidy)
Government Subsidy 40% to 50% Capital Subsidy on Farm Machinery & Tractors (Max ₹4L - ₹10L per CHC)
Security / Collateral Hypothecation of purchased tractor and machinery; no third-party property needed
Promoter Margin 10.0% Project Cost

📋 Scheme Objective & Overview

Empowers rural youth and rural entrepreneurs to set up Custom Hiring Centres (CHCs) to rent out tractors, harvesters, laser levelers, and agriculture drones to local farmers with up to 50% subsidy.

Eligible Sectors: Agro-allied / Dairy / PoultryServicesEquipment Rental

💰 Key Financial Benefits & Subsidy Details

  • ✓40% to 50% subsidy on purchase of approved agricultural implements and tractors.
  • ✓Creates sustainable rural rental business with regular seasonal rental income.
  • ✓Special preference and higher subsidy allocation for rural unemployed youth and women SHGs.
  • ✓Integrated with State DBT Agriculture portals for direct DBT credit into bank accounts.

🎯 Who is Eligible? (Eligibility Criteria)

  • •Rural youth having domicile certificate of the rural block/gram panchayat.
  • •Individual farmers, Cooperative Societies of farmers, FPOs, and Registered SHGs.
  • •Applicant must not have availed machinery subsidy under SMAM during the past 5 years.

Age Requirement: 18 to 45 years.

Education Qualification: 10th pass preferred for youth entrepreneurs

📑 Mandatory Documents Required Checklist

Scanned PDF / Copies
📄Aadhaar Card, PAN Card, and Rural Domicile Certificate
📄Driving license (for tractor / machinery operations)
📄Bank account passbook with IFSC details
📄Quotation from authorized agricultural equipment manufacturer/dealer

🚀 Step-by-Step Application Procedure

11. Visit the Central SMAM DBT Portal (agrimachinery.nic.in).
22. Select State, District, and register as 'Rural Youth' or 'Entrepreneur'.
33. Choose machinery models, upload dealer quotations, and submit for District Officer verification.

❓ Frequently Asked Questions (Sub-Mission on Agricultural Mechanization (SMAM - Custom Hiring Centre))

What is the maximum loan limit under Sub-Mission on Agricultural Mechanization (SMAM - Custom Hiring Centre)?

Eligible applicants can avail up to Up to ₹10 Lakhs to ₹25 Lakhs Project Cost (40% - 50% Direct Subsidy) in financial assistance from authorized partner banks.

How much capital subsidy is provided?

The scheme provides 40% to 50% Capital Subsidy on Farm Machinery & Tractors (Max ₹4L - ₹10L per CHC) credited directly to the loan bank account upon milestone verification.

Is collateral security or mortgage required?

Hypothecation of purchased tractor and machinery; no third-party property needed.

Ready to apply for Sub-Mission on Agricultural Mechanization (SMAM - Custom Hiring Centre)?

Submit your online application through the official government portal.

Apply on Official Portal →

Toll-Free Helpline: 011-23382937

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