Central
₹15 lakh equity
10,000 FPOs Scheme
Equity grant and credit support for forming Farmer Producer Organisations.
Central Government Scheme
· Active – ongoing under SMAM · India
Sub-Mission on Agricultural Mechanisation –
Custom Hiring Centres (CHC)
The CHC scheme under Sub-Mission on Agricultural Mechanisation (SMAM) provides 40–50% subsidy to individuals, FPOs, cooperatives, and SHGs to set up Custom Hiring Centres that make farm machinery available to small farmers at rental rates. Apply now in India with expert guidance from Varahii Consultancy.
Subsidy Rate: 40% (general) to 50% (SC/ST/women/NE states)
Project Cost: Up to ₹25 lakh per CHC
Implementing Agency: State Agriculture Departments under SMAM
Eligible Machinery: Tractors, combined harvesters, rotavators, planters, threshers, spray equipment
Status: Active – ongoing under SMAM
City: India
45,000 +
CHC Hubs Established
40-50 %
Subsidy on Machinery
₹25 lakh
Max Project Cost
50+
Machinery Types Covered
What is Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC)?
The CHC scheme under Sub-Mission on Agricultural Mechanisation (SMAM) provides 40–50% subsidy to individuals, FPOs, cooperatives, and SHGs to set up Custom Hiring Centres that make farm machinery available to small farmers at rental rates.
Many applicants in India lose weeks to incomplete paperwork or missed eligibility steps. Our team in India reviews your case first, so you only submit once everything is in order.
Objective: To mechanise farming for small and marginal farmers who cannot afford to own machinery, by supporting the creation of CHC hubs that rent out tractors, harvesters, and other equipment.
Who is this for in India?
Individual farmers, FPOs, cooperatives, and SHGs in rural areas
Agricultural graduates or entrepreneurs setting up a machinery rental business
Farmer groups in MSME clusters seeking to mechanise operations
Eligibility Criteria – India
To apply for Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) India, applicants must meet the following conditions:
Applicant: Individual farmers, FPOs, cooperatives, SHGs, agri-entrepreneurs
Land Requirement: Applicant or group should have farming land or proven agri-service base in the area
Machinery: Only machinery on the approved state list qualifies for subsidy
Not Eligible: Commercial equipment dealers or trading companies, Entities that already availed CHC subsidy for the same machinery in the last 5 years
Who is NOT Eligible
Commercial equipment dealers or trading companies
Entities that already availed CHC subsidy for the same machinery in the last 5 years
Benefits for India Applicants
Eligible applicants India can receive the following benefits under Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC):
| Benefit | Details |
|---|---|
| Subsidy General | 40% of machinery cost (subject to state-specific ceilings) |
| Subsidy Special | 50% for SC/ST, women farmers, and North-Eastern states |
| Project Ceiling | Total project cost of up to ₹25 lakh per CHC hub |
| Bank Loan | Balance 50-60% financed through bank loan; NABARD refinancing available |
Documents Required
Keep the following documents ready before applying India. Having them prepared speeds up approval significantly.
Aadhaar card and PAN card
Land ownership records or FPO/cooperative registration certificate
Bank account details
Project proposal listing machinery to be procured
Quotations from approved machinery suppliers
Caste certificate (for SC/ST applicants)
Pro tip: Register on Udyam Portal before applying. It strengthens your application and may unlock additional MSME benefits.
How to Apply in India
Follow these steps to apply for Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) India:
From eligibility screening to final approval, our consultants in India support Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) applicants at every stage — including liaising with the relevant department when an application stalls.
1
Contact the State Agriculture Department
Visit your district or block agriculture office or apply through the DBT Agriculture portal of your state.
2
Submit CHC project proposal
Prepare a list of machinery required, projected rental rates, and coverage area. The state department appraises the proposal.
3
Bank loan sanction
Arrange bank financing for the 50-60% of project cost not covered by subsidy.
4
Procurement from approved suppliers
Purchase machinery from state-empanelled dealers only — invoices are required for subsidy release.
5
Subsidy disbursement
Subsidy credited to your bank account after verification of machinery purchase and operational readiness.
6
Register on agrimachinery.nic.in
List your CHC on the national farm machinery portal so nearby farmers can find and book your equipment.
Online Portal: You can apply directly at https://agrimachinery.nic.in. Varahii's consultants can guide you through every step.
Coverage & Limits
| Parameter | Details |
|---|---|
| Machinery Types | 50+ machinery types including tractors, harvesters, seeders, threshers, pumps, and drone sprayers |
| Hiring Radius | Typically serves a 5–10 km radius cluster of villages |
| Digital Booking | National portal and app-based booking system for farmer access |
Applying for Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) in India
Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) is available to entrepreneurs and individuals across India. Whether you are based in the urban core or surrounding areas of India, you can approach any participating bank, NBFC, or Microfinance Institution to begin your application.
Varahii Consultancy has helped hundreds of applicants India successfully complete their Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) applications — from document preparation to follow-up with the sanctioning authority.
Varahii in India: Our local advisors understand the specific requirements of India branches and can help you choose the right lender or government office for faster processing.
Industry & Entrepreneurship Landscape in India
India's small-business economy is shaped in large part by trading, agro-processing, and small-scale manufacturing, sectors that account for a significant share of local MSME and entrepreneurial activity. Udyam registrations have grown steadily as more entrepreneurs formalise their businesses to access government schemes, priority-sector loans, and tender eligibility.
Among individual entrepreneurs in India, current trends show a growing share of women-led and first-generation entrepreneurs registering new micro-enterprises. This shift is directly relevant to Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) applicants, since lenders and sanctioning authorities increasingly favour Udyam-registered, formally documented businesses when reviewing applications.
Banking & credit access in India: Applicants typically work with SBI, regional rural banks, and a network of cooperative banks when applying for government-linked schemes, alongside NBFCs and microfinance institutions for smaller ticket sizes.
Why Varahii Is Among the Best Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) Consultants in India
Choosing the right consultant for Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) in India can be the difference between a smooth approval and months of avoidable delay. Varahii Consultancy has built a reputation in India and across India for handling government scheme and MSME loan applications end-to-end — not just advising, but actively preparing documentation, tracking application status, and following up with the relevant department or bank until a decision is reached.
Specialised, up-to-date knowledge of Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) eligibility and documentation requirements in India
End-to-end application support — not just advice — from document prep to final follow-up
Familiarity with local banks, NBFCs, and government offices in India
Transparent process with no hidden fees and a free initial eligibility check
Varahii in India: If you're evaluating Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) options in India, our consultants can give you a realistic eligibility assessment before you commit any paperwork — most consultations start with a free review of your specific situation.
Important Dates
| Milestone | Date / Status |
|---|---|
| Scheme Origin | 2014-15 under SMAM |
| Current Status | Ongoing — annual state-wise target allocation |
| Progress | Over 45,000 CHC hubs established across India as of 2026 |
Contact & Support
| Channel | Details |
|---|---|
| Implementing Agency | State Agriculture Departments (contact your District Agriculture Officer) |
| Portal | agrimachinery.nic.in |
| Helpline | State agriculture department helplines vary by state |
Frequently Asked Questions
Any individual farmer, FPO, cooperative, SHG, or agricultural entrepreneur can apply, subject to state-specific conditions.
40% for general category applicants and 50% for SC/ST, women farmers, and applicants from North-Eastern states.
Each state publishes an approved machinery list annually. You can choose any machinery from that list; custom or non-standard equipment is not subsidised.
Yes, FPOs and cooperatives are among the priority beneficiary categories and are encouraged to set up CHCs to serve their member farmers.
Through the national agrimachinery.nic.in portal or its app, farmers can search for nearby CHCs, check machinery availability, and book at published rental rates.
Related topics: farm machinery CHC tractor subsidy SMAM FPO custom hiring agri-mechanisation India
Ready to Apply for Sub-Mission on Agricultural Mechanisation – Custom Hiring Centres (CHC) in India?
Varahii's verified consultants handle everything — eligibility check, document preparation, application filing, and follow-up with India authorities. 100% free initial consultation.