Credit Linked Subsidy Scheme for Rural Entrepreneurs to set up Custom Hiring Centres (CHC) of Farm Machinery

Credit Linked Subsidy Scheme for Rural Entrepreneurs to Establish Custom Hiring Centres (CHC) of Farm Machinery

The “Credit Linked Subsidy Scheme for Rural Entrepreneurs to set up Custom Hiring Centres (CHC) of Farm Machinery” is an initiative launched by the Agriculture Department of the Government of West Bengal. This program seeks to empower rural entrepreneurs to establish CHCs, enabling farmers to access high-quality farm machinery at affordable rates. The scheme aims to enhance rural employment opportunities, increase agricultural productivity, and provide risk management during adverse conditions.

Overview of the Scheme

Initiated on October 22, 2014, under the Farm Mechanization Umbrella Scheme, this initiative encourages rural entrepreneurs to set up Custom Hiring Centres. These centres facilitate farmers in hiring various advanced agricultural equipment, thus promoting efficient farming practices. The scheme is applicable across the state of West Bengal, excluding the Kolkata district.

Machinery Options Available

Entrepreneurs can select from a comprehensive list of machinery and implements for CHCs, as detailed in Annexure-V (Page No. 38). The State Project Management Team (SPMT) will publish a list of farm machinery models along with their indicative prices on the Matirkatha portal before the online application process begins. Applicants are encouraged to select a minimum of four types of machinery and up to two tractors of a particular type from this list. Additional suitable machinery not listed may be included upon approval from the SPMT, following the latest SMAM guidelines.

Benefits of the Scheme

• Financial Assistance: The maximum subsidy offered is 40% of the Total Financial Outlay (TFO), which encompasses machinery costs, transportation, Annual Maintenance Contract (AMC) for three years, open shed costs, and one year of insurance.
• Minimum and Maximum TFO: The minimum TFO is set at ₹20,00,000, while the maximum will be determined according to SMAM guidelines and SPMT recommendations.
• Subsidy Limit: An individual entrepreneur can receive a subsidy of up to ₹16,00,000 or 40% of TFO, whichever is lower.
• Open Shed Costs: The maximum funding for constructing a shed for the machinery is capped at 5% of TFO, and ancillary costs should not exceed 10% of TFO.

It is important to note that applicants are required to contribute a margin of at least 25% of the TFO to the financing bank before the subsidy is released. The government does not procure machinery; instead, subsidies are provided as back-ended support to beneficiaries who acquire machinery through bank loans. Subsidies will be transferred directly to the relevant bank branch via the Direct Benefit Transfer (DBT) system.

Eligibility Criteria

• Individuals must be registered under the Krishak Bandhu (New) Scheme.
• Groups such as SKUS, PACS, FPO, FPC, FIG, SHG, and other recognized entities by government bodies are also eligible to establish CHCs.
• The Total Financial Outlay (TFO) for the project must be between a minimum of ₹20,00,000 and a maximum as per SMAM guidelines.
• Applicants must possess adequate land (owned, leased, or hired) for establishing the CHC, categorized as “commercial,” “bastu,” or “viti.”
• The beneficiary must be at least 18 years old at the time of application.

Application Process

Online Registration

• Step 1: Access the official FMS portal and choose “New Registration.”
• Step 2: Complete all mandatory fields in the “Applicant Registration” form.
• Step 3: Review all information and click “Sign Up.”

Application Submission

• Step 1: Log in to the FMS portal using your Voter Card number and password, then select the season.
• Step 2: Fill out all required details in the application form.
• Step 3: After successful online submission, print the application along with the acknowledgement receipt, recent passport-sized photograph, and any other necessary documents (self-attested if required) to be submitted to the District Deputy Director of Agriculture.
• Step 4: A one-time edit option will be available in specified fields after the online submission but before submitting the hard copy. No further edits are permitted once the hard copy is submitted.
• Step 5: Retain the serial number generated during online application for future reference.

For assistance, you can contact the helpline at 8336957298 (available from 10:00 AM to 6:00 PM).

Note: The online application must be completed on the Matirkatha/FMS portal following official announcements in leading newspapers and the departmental website.

Official Source

For further details, please visit myScheme.gov.in.