What is the subsidy pattern for individual farm machinery under SMAM?

For individual ownership of farm machinery and equipment, SMAM operational guidelines provide a subsidy of 40% for general farmers and 50% for small/marginal farmers, women farmers, SC/ST farmers and farmers from North-Eastern, hilly and Himalayan states, on a notified list of empanelled machines published on the agrimachinery.nic.in portal. For groups of farmers (registered FPOs, SHGs, co-operatives), the rate is the same as for individuals — 40%/50%. The pattern of assistance for specific high-value machinery (combine harvesters, paddy transplanters, sugarcane harvesters, drones) is notified separately in the SMAM Operational Guidelines.

How much subsidy does a Custom Hiring Centre get under SMAM?

A Custom Hiring Centre (CHC) is a project-level subsidy unit set up by a rural entrepreneur, FPO, co-operative, SHG or registered farmer society to rent farm machinery to local farmers. Under SMAM the CHC project ceiling is ₹60 lakh and the financial assistance is 40% of project cost for general areas and 50% for NE / hilly states. The CHC is required to maintain a minimum set of machinery and to register on the official Farms (CHC) Mobile App on agrimachinery.nic.in for booking. Larger Hi-Tech, High-Productivity Equipment Hubs go up to ₹250 lakh project cost at the same 40%/50% rate.

What is a Farm Machinery Bank and how is it different from a CHC?

A Farm Machinery Bank (FMB) is a village-level, smaller-scale custom hiring outlet established by a Gram Panchayat, registered farmer co-operative, FPO, SHG or a panel of farmers, typically operating within a single revenue village or panchayat. The FMB project ceiling under SMAM is ₹10 lakh and the financial assistance is 80% of the project cost (with the balance 20% as the beneficiary contribution), making it the most accessible window for very small communities. The CHC, by contrast, is larger (up to ₹60 lakh at 40-50% subsidy), is typically run by an entrepreneur or larger FPO and is expected to serve a wider area.

What is the Crop Residue Management (CRM) sub-scheme under SMAM?

The Sub-Mission on Agricultural Mechanization for In-Situ Management of Crop Residue (the CRM sub-scheme) was launched in 2018 to address the air-pollution crisis from paddy stubble burning in Punjab, Haryana, Uttar Pradesh and the NCT of Delhi. Under the CRM sub-scheme, farmers get a 50% subsidy on CRM machinery (Super Seeder, Happy Seeder, Smart Seeder, Mulcher, Paddy Straw Chopper, Hydraulic Reversible MB Plough, Rotary Slasher, Straw Rake, Baler) for individual ownership; project-based Custom Hiring Centres for CRM machinery get 80% financial assistance with a project ceiling of ₹15 lakh (and ₹30 lakh for the larger CHCs). Implementation is led by the state agriculture departments of Punjab, Haryana, UP, NCT Delhi and ICAR institutes, with monitoring through the CHC-CRM mobile app.

Are agri-drones covered under SMAM?

Yes. From 2022 onwards, agriculture spray drones (Kisan Drones) are a notified item under SMAM. Individual farmers and farmer-purchaser categories receive financial assistance up to 50% of the cost of the drone and its attachments, with a maximum of ₹5 lakh (40% / ₹4 lakh for general farmers; 50% / ₹5 lakh for SC/ST, small/marginal, women farmers and NE/hilly farmers). FPOs receive up to 75% subsidy for drone purchase for use as a service to farmers. Custom Hiring Centres, Hi-Tech Hubs and Drone Hubs registered on agrimachinery.nic.in receive 40% of cost, capped at ₹4 lakh per drone. SHGs federated under DAY-NRLM receive an 80% subsidy capped at ₹8 lakh per drone under the separate Namo Drone Didi central-sector scheme (see /namo-drone-didi).

What are the Farm Machinery Training & Testing Institutes (FMTTIs)?

Under SMAM, the Government of India runs four Farm Machinery Training & Testing Institutes that train operators and mechanics and conduct mandatory pre-empanelment tests for tractors, combine harvesters, power tillers and other machinery before they can receive SMAM subsidy. The four institutes are: the Central Farm Machinery Training & Testing Institute (CFMTTI), Budni, Madhya Pradesh (the lead institute, established 1955); the Northern Region FMTTI, Hisar, Haryana; the Southern Region FMTTI, Garladinne, Anantapur, Andhra Pradesh; and the North-Eastern Region FMTTI, Biswanath Chariali, Assam. Each institute runs short-duration operator and mechanic courses, conducts confirmatory tests (commercial / batch / initial / commercial type), and publishes test reports on fmttibudni.gov.in.

How do I apply for an SMAM subsidy?

The official route is the Direct Benefit Transfer in Agricultural Mechanization (DBT-AM) portal at agrimachinery.nic.in, operated by DA&FW. Farmers and entities register with Aadhaar and bank account, choose the machinery from the state-notified empanelled list, the state agriculture department generates an approval order, the farmer purchases the machine from an empanelled dealer / manufacturer and uploads the bill and physical-verification certificate, and the subsidy is released by DBT to the farmer's Aadhaar-linked bank account. For CHCs, FMBs and Hi-Tech Hubs the project DPR is submitted to the state agriculture department / state nodal officer; approval is by the State Level Sanctioning Committee and disbursement follows the standard SMAM operational guidelines.

What is the cost-share between Centre and State under SMAM / ISAM?

SMAM (now ISAM under Krishonnati Yojana) follows the standard Centrally Sponsored Scheme pattern: 60:40 Centre-State for general states, 90:10 for the eight North-Eastern states, Himalayan states (Himachal Pradesh, Uttarakhand) and Union Territories with a legislature (Jammu & Kashmir, Puducherry), and 100% central funding for Union Territories without a legislature. The state share is provided by the state government from its agriculture-mechanization budget head, and the consolidated outlay is approved annually as part of the state's Annual Action Plan under the Krishonnati Yojana umbrella from 1 October 2024.

SMAM Guide — Sub-Mission on Agricultural Mechanization (now ISAM under Krishonnati Yojana): Subsidies, Custom Hiring Centres, Farm Machinery Banks, Drones & How to Apply

SMAM (Sub-Mission on Agricultural Mechanization)is the Government of India's flagship scheme for expanding the reach of farm mechanization — particularly to small and marginal farmers and to regions with low farm-power availability. It funds subsidised individual ownership of machinery, village-level Farm Machinery Banks, larger Custom Hiring Centres, Hi-Tech Hubs (including agri-drones), the network of Farm Machinery Training & Testing Institutes (FMTTIs) and the in-situ Crop Residue Management (CRM) sub-scheme that tackles paddy stubble burning in the North-West. From 1 October 2024, by Union Cabinet decision, SMAM was renamed the Integrated Scheme on Agricultural Mechanization (ISAM) and placed under the new Krishonnati Yojana umbrella alongside NFSM, NMEO-Oilseeds, NMEO-OP, the Sub-Mission on Seeds and Planting Material and the Sub-Mission on Agricultural Extension. The component structure and pattern of assistance have largely continued.

This guide walks through the four delivery channels (individual ownership, CHC, FMB, Hi-Tech Hubs), the subsidy slabs by farmer category, the dedicated CRM sub-scheme that targets stubble burning, how agri-drones are funded, the FMTTI training and testing network and how to actually apply on the agrimachinery.nic.in DBT portal. For how SMAM fits into the wider farmer-welfare portfolio, see our India government schemes for farmers reference.

What is SMAM?

SMAM is a Centrally Sponsored Scheme of the Department of Agriculture & Farmers Welfare (DA&FW), Ministry of Agriculture & Farmers Welfare, administered by the Mechanization & Technology (M&T) Division. It was launched in 2014-15after being carved out of the earlier National Mission on Agricultural Extension & Technology (NMAET). On 1 October 2024the Union Cabinet restructured the DA&FW portfolio and SMAM was renamed ISAM (Integrated Scheme on Agricultural Mechanization) and placed under the new Krishonnati Yojana umbrella; the component architecture, operational guidelines and pattern of assistance continue.

The mission was set up because Indian farm-power availability remained well below the levels seen in mechanised agricultures (about 2.5 kW per hectare at the time of launch, against a target of 4.0 kW per hectare by 2030), and because small and marginal farmers — who hold over 86% of operational holdings — generally cannot afford to own high-value machinery individually. SMAM therefore combines subsidised individual ownership of basic machinery with collective-use models (FMBs, CHCs, Hi-Tech Hubs) for higher-value equipment.

Cost-share and funding pattern

SMAM follows the standard Centrally Sponsored Scheme cost-share:

60:40 Centre-State for general states.
90:10Centre-State for the eight North-Eastern states, the Himalayan states (Himachal Pradesh, Uttarakhand) and UTs with a legislature (Jammu & Kashmir, Puducherry).
100% Centre for Union Territories without a legislature.

The state share is met from the state agriculture-mechanization budget; the consolidated outlay is approved annually as part of the state's Annual Action Plan under Krishonnati Yojana from 1 October 2024.

Components and pattern of assistance

1. Individual ownership of farm machinery

The most widely used SMAM window. For machines and equipment on the state-notified empanelled list — tractors (in some states), self-propelled equipment, power tillers, seed drills, planters, rotavators, threshers, sprayers, harvesters, post-harvest equipment — the subsidy is:

40% of cost for general-category farmers.
50% of cost for small / marginal farmers, women farmers, SC / ST farmers and farmers from North-Eastern, hilly and Himalayan states.

The maximum financial assistance per machine, per category and per farmer per year is fixed in the SMAM Operational Guidelines and re-published in each state's Annual Action Plan.

2. Custom Hiring Centres (CHCs)

CHCs are project-level outlets that rent farm machinery to local farmers — typically set up by rural entrepreneurs, FPOs, co-operatives, SHGs or registered farmer societies. SMAM provides:

40% of project cost for general areas, capped at ₹60 lakh per CHC.
50% of project cost for NE / hilly states, capped at ₹60 lakh per CHC.

The CHC must maintain a minimum machinery basket as notified by the state and is required to register on the Farms (CHC) Mobile App on agrimachinery.nic.in so that nearby farmers can book the equipment online.

3. Farm Machinery Banks (FMBs) at village level

FMBs are smaller, village-scale custom-hiring outlets set up by Gram Panchayats, registered farmer co-operatives, FPOs, SHGs or a panel of farmers, typically operating within a single revenue village or panchayat. SMAM provides:

80% of project cost as financial assistance, capped at ₹10 lakh per FMB, with the balance 20% as the beneficiary contribution.

The FMB is the most accessible window for very small communities and the high subsidy rate is designed to make collective ownership viable for SC/ST-dominated and tribal villages.

4. Hi-Tech, High-Productivity Equipment Hubs

For high-value machinery — combine harvesters, sugarcane harvesters, potato planters and harvesters, paddy transplanters, drones — larger Hi-Tech Hubs are funded at:

40% / 50% of project cost (general / NE / hilly), capped at ₹250 lakh per Hub.

Hi-Tech Hubs are typically run by FPOs, agri-entrepreneurs and large co-operatives and serve a multi-district catchment.

Sub-Mission on Crop Residue Management (CRM)

Launched in 2018 to address air-pollution from paddy stubble burning in Punjab, Haryana, Uttar Pradesh and the NCT of Delhi, the Sub-Mission on Agricultural Mechanization for In-Situ Management of Crop Residue (CRM) is a dedicated stream within SMAM. The pattern of assistance is more generous than the base SMAM because the externality being addressed — particulate pollution affecting hundreds of millions — is national.

Individual farmers: 50% subsidy on notified CRM machinery — Super Seeder, Happy Seeder, Smart Seeder, Mulcher, Paddy Straw Chopper, Hydraulic Reversible MB Plough, Rotary Slasher, Straw Rake, Baler.
CHCs for CRM machinery: 80% financial assistance with a project ceiling of ₹15 lakh (and ₹30 lakh for larger CHCs serving multiple villages).

Implementation is led by the state agriculture departments of Punjab, Haryana, Uttar Pradesh and the NCT of Delhi together with ICAR-IARI and the Commission for Air Quality Management (CAQM); monitoring is on the CHC-CRM Mobile App linked to agrimachinery.nic.in.

Agri-drones under SMAM

Agriculture spray drones (often marketed as “Kisan Drones”) became a notified item under SMAM from 2022. The rates are:

Individual farmer purchase: 40% of drone + attachments cost, max ₹4 lakh (general); 50% max ₹5 lakh for SC / ST, small / marginal, women farmers and NE / hilly farmers.
FPO purchase (for use as a service to farmers): up to 75% subsidy on cost of drone + attachments.
CHCs, Hi-Tech Hubs and Drone Hubs: 40% of cost capped at ₹4 lakh per drone.

A parallel central-sector scheme, Namo Drone Didi, provides 80% subsidy capped at ₹8 lakh per drone exclusively for women SHGs under DAY-NRLM — that is a separate, more generous window from the SMAM drone provision described above and the two cannot be stacked on the same drone.

Farm Machinery Training & Testing Institutes (FMTTIs)

SMAM funds four Farm Machinery Training & Testing Institutes which both train operators and mechanics, and conduct mandatory confirmatory tests on tractors, combine harvesters, power tillers and other machinery before they can be empanelled for SMAM subsidy:

CFMTTI Budni, Madhya Pradesh — the lead Central Farm Machinery Training & Testing Institute, established in 1955; publishes test reports at fmttibudni.gov.in.
NRFMTTI, Hisar, Haryana — Northern Region.
SRFMTTI, Garladinne (Anantapur), Andhra Pradesh — Southern Region.
NERFMTTI, Biswanath Chariali, Assam — North Eastern Region.

Each institute runs short-duration operator and mechanic courses and conducts “Commercial / Batch / Initial / Type” tests for new machinery; the test certificate is a pre-condition for empanelment under SMAM.

How to apply on agrimachinery.nic.in

Register on agrimachinery.nic.in with Aadhaar, mobile number and bank account; choose the appropriate role (Farmer / FPO / CHC entrepreneur / SHG / Gram Panchayat).
Select machinery from the state-notified empanelled list shown on the portal; the portal displays the tested machine, manufacturer, model and indicative price.
State approval. The state agriculture department scrutinises the application and generates an approval / sanction order specifying the maximum admissible subsidy.
Purchase from empanelled dealer / manufacturer with the approval order; upload the invoice, physical-verification certificate and geo-tagged photographs.
DBT payout.The state office releases the subsidy by DBT to the farmer's Aadhaar-linked bank account through the PFMS pipeline.

For CHC / FMB / Hi-Tech Hub projects, the project DPR is submitted to the state agriculture department; approval is by the State Level Sanctioning Committee under the Krishonnati Yojana umbrella and disbursement follows the SMAM Operational Guidelines.

Documents required

Aadhaar — mandatory for DBT seeding and beneficiary identification.
Land record — khasra / khatauni / Bhulekh / Mahabhulekh / Dharani reference as per state.
Aadhaar-linked savings bank account with IFSC, for DBT release.
Caste / category certificate for SC / ST / OBC farmers (where applicable for the higher 50% slab).
Small / marginal farmer certificate from the revenue authority for the higher 50% slab.
FPO / SHG / Co-operative registration documents for collective-purchase windows.
DPR with proposed machinery basket and operating model for CHC / FMB / Hi-Tech Hub projects.

How this connects with other farmer-welfare programmes

SMAM is the mechanization leg of the Krishonnati portfolio and stacks neatly with several other DA&FW windows:

RKVY / Krishonnati Yojana umbrella. Since 1 October 2024 ISAM (the new name for SMAM) is under Krishonnati Yojana — see our RKVY / PM-RKVY / Krishonnati Yojana guide for the umbrella architecture and SAP / DAP planning route.
Credit (Kisan Credit Card).The farmer's share of an SMAM-subsidised machine can be financed as KCC investment credit with the 2% interest subvention + 3% prompt repayment incentive (effectively 4%) — see our Kisan Credit Card deep-dive.
FPO scheme. A registered Producer Company can anchor a Custom Hiring Centre or Hi-Tech Hub under SMAM and simultaneously draw equity grant, CGFFPO credit-guarantee cover and management-cost support — see our 10,000 FPO Scheme guide.
Drone Didi. Women SHGs federated under DAY-NRLM should look at the more generous Namo Drone Didi (80% / ₹8 lakh) rather than the SMAM drone window.
Knowledge. Browse our knowledge base for crop-specific guides, the India crop calendar for sowing-window planning and our Soil Health Card guide to balance nutrient inputs alongside mechanization gains.

Important official links

agrimachinery.nic.in — official DBT in Agricultural Mechanization (DBT-AM) portal: registration, empanelled machinery list, subsidy application, CHC and FMB modules.
Department of Agriculture & Farmers Welfare (agriwelfare.gov.in) — policy ministry; SMAM / ISAM operational guidelines and Krishonnati Yojana circulars.
CFMTTI Budni (fmttibudni.gov.in) — lead Farm Machinery Training & Testing Institute; tractor and combine harvester test reports.
Press Information Bureau (PIB) — official press releases on SMAM allocations, CRM disbursements, drone subsidy notifications and Krishonnati Yojana restructuring.

References

DA&FW — SMAM Operational Guidelines, ISAM circulars under Krishonnati Yojana from 1 October 2024.
DBT in Agricultural Mechanization portal — empanelled machinery list, subsidy rules and online application flow.
CFMTTI Budni and the three Regional FMTTIs (Hisar, Garladinne, Biswanath Chariali) — operator / mechanic training and machinery test reports.
Press Information Bureau (PIB) — Cabinet decision of 1 October 2024 restructuring DA&FW schemes into PM-RKVY and Krishonnati Yojana.

Frequently asked questions

What is SMAM and what changed in October 2024?: SMAM — the Sub-Mission on Agricultural Mechanization — is the Government of India's flagship scheme to expand farm-mechanization reach to small and marginal farmers and to regions with low farm-power availability. It is administered by the Mechanization & Technology Division of the Department of Agriculture & Farmers Welfare (DA&FW), Ministry of Agriculture & Farmers Welfare. Originally launched in 2014-15 (carved out of the earlier National Mission on Agricultural Extension & Technology, NMAET), it was restructured by the Union Cabinet on 1 October 2024 into the Integrated Scheme on Agricultural Mechanization (ISAM) and placed under the new Krishonnati Yojana umbrella alongside NFSM, NMEO-Oilseeds, NMEO-OP, the Sub-Mission on Seeds and Planting Material and the Sub-Mission on Agricultural Extension. The pattern of assistance and component structure have largely continued.
What is the subsidy pattern for individual farm machinery under SMAM?: For individual ownership of farm machinery and equipment, SMAM operational guidelines provide a subsidy of 40% for general farmers and 50% for small/marginal farmers, women farmers, SC/ST farmers and farmers from North-Eastern, hilly and Himalayan states, on a notified list of empanelled machines published on the agrimachinery.nic.in portal. For groups of farmers (registered FPOs, SHGs, co-operatives), the rate is the same as for individuals — 40%/50%. The pattern of assistance for specific high-value machinery (combine harvesters, paddy transplanters, sugarcane harvesters, drones) is notified separately in the SMAM Operational Guidelines.
How much subsidy does a Custom Hiring Centre get under SMAM?: A Custom Hiring Centre (CHC) is a project-level subsidy unit set up by a rural entrepreneur, FPO, co-operative, SHG or registered farmer society to rent farm machinery to local farmers. Under SMAM the CHC project ceiling is ₹60 lakh and the financial assistance is 40% of project cost for general areas and 50% for NE / hilly states. The CHC is required to maintain a minimum set of machinery and to register on the official Farms (CHC) Mobile App on agrimachinery.nic.in for booking. Larger Hi-Tech, High-Productivity Equipment Hubs go up to ₹250 lakh project cost at the same 40%/50% rate.
What is a Farm Machinery Bank and how is it different from a CHC?: A Farm Machinery Bank (FMB) is a village-level, smaller-scale custom hiring outlet established by a Gram Panchayat, registered farmer co-operative, FPO, SHG or a panel of farmers, typically operating within a single revenue village or panchayat. The FMB project ceiling under SMAM is ₹10 lakh and the financial assistance is 80% of the project cost (with the balance 20% as the beneficiary contribution), making it the most accessible window for very small communities. The CHC, by contrast, is larger (up to ₹60 lakh at 40-50% subsidy), is typically run by an entrepreneur or larger FPO and is expected to serve a wider area.
What is the Crop Residue Management (CRM) sub-scheme under SMAM?: The Sub-Mission on Agricultural Mechanization for In-Situ Management of Crop Residue (the CRM sub-scheme) was launched in 2018 to address the air-pollution crisis from paddy stubble burning in Punjab, Haryana, Uttar Pradesh and the NCT of Delhi. Under the CRM sub-scheme, farmers get a 50% subsidy on CRM machinery (Super Seeder, Happy Seeder, Smart Seeder, Mulcher, Paddy Straw Chopper, Hydraulic Reversible MB Plough, Rotary Slasher, Straw Rake, Baler) for individual ownership; project-based Custom Hiring Centres for CRM machinery get 80% financial assistance with a project ceiling of ₹15 lakh (and ₹30 lakh for the larger CHCs). Implementation is led by the state agriculture departments of Punjab, Haryana, UP, NCT Delhi and ICAR institutes, with monitoring through the CHC-CRM mobile app.
Are agri-drones covered under SMAM?: Yes. From 2022 onwards, agriculture spray drones (Kisan Drones) are a notified item under SMAM. Individual farmers and farmer-purchaser categories receive financial assistance up to 50% of the cost of the drone and its attachments, with a maximum of ₹5 lakh (40% / ₹4 lakh for general farmers; 50% / ₹5 lakh for SC/ST, small/marginal, women farmers and NE/hilly farmers). FPOs receive up to 75% subsidy for drone purchase for use as a service to farmers. Custom Hiring Centres, Hi-Tech Hubs and Drone Hubs registered on agrimachinery.nic.in receive 40% of cost, capped at ₹4 lakh per drone. SHGs federated under DAY-NRLM receive an 80% subsidy capped at ₹8 lakh per drone under the separate Namo Drone Didi central-sector scheme (see /namo-drone-didi).
What are the Farm Machinery Training & Testing Institutes (FMTTIs)?: Under SMAM, the Government of India runs four Farm Machinery Training & Testing Institutes that train operators and mechanics and conduct mandatory pre-empanelment tests for tractors, combine harvesters, power tillers and other machinery before they can receive SMAM subsidy. The four institutes are: the Central Farm Machinery Training & Testing Institute (CFMTTI), Budni, Madhya Pradesh (the lead institute, established 1955); the Northern Region FMTTI, Hisar, Haryana; the Southern Region FMTTI, Garladinne, Anantapur, Andhra Pradesh; and the North-Eastern Region FMTTI, Biswanath Chariali, Assam. Each institute runs short-duration operator and mechanic courses, conducts confirmatory tests (commercial / batch / initial / commercial type), and publishes test reports on fmttibudni.gov.in.
How do I apply for an SMAM subsidy?: The official route is the Direct Benefit Transfer in Agricultural Mechanization (DBT-AM) portal at agrimachinery.nic.in, operated by DA&FW. Farmers and entities register with Aadhaar and bank account, choose the machinery from the state-notified empanelled list, the state agriculture department generates an approval order, the farmer purchases the machine from an empanelled dealer / manufacturer and uploads the bill and physical-verification certificate, and the subsidy is released by DBT to the farmer's Aadhaar-linked bank account. For CHCs, FMBs and Hi-Tech Hubs the project DPR is submitted to the state agriculture department / state nodal officer; approval is by the State Level Sanctioning Committee and disbursement follows the standard SMAM operational guidelines.
What is the cost-share between Centre and State under SMAM / ISAM?: SMAM (now ISAM under Krishonnati Yojana) follows the standard Centrally Sponsored Scheme pattern: 60:40 Centre-State for general states, 90:10 for the eight North-Eastern states, Himalayan states (Himachal Pradesh, Uttarakhand) and Union Territories with a legislature (Jammu & Kashmir, Puducherry), and 100% central funding for Union Territories without a legislature. The state share is provided by the state government from its agriculture-mechanization budget head, and the consolidated outlay is approved annually as part of the state's Annual Action Plan under the Krishonnati Yojana umbrella from 1 October 2024.

Subsidy slabs, project ceilings and category eligibility above summarise the publicly available SMAM Operational Guidelines on agrimachinery.nic.in and DA&FW circulars current as of mid-2026. Specific machinery prices, empanelled lists and state-level slab variations are updated continuously by the State Level Sanctioning Committee; farmers should always verify current terms on agrimachinery.nic.in or with their state agriculture department before purchasing.