🎯 Farm Mechanization & Energy
SMAM subsidies, PM KUSUM solar scheme components, and Crop Residue Management — mechanization and clean energy in agriculture
Farm mechanization and clean energy adoption are key to improving agricultural productivity, reducing drudgery, and promoting sustainable farming. India's farm power availability has increased from 0.48 kW/ha in 1971 to 3.93 kW/ha (2024-25), with a target of 4 kW/ha by 2030.
Sub-Mission on Agricultural Mechanization (SMAM)
SMAM was originally under the Green Revolution — Krishonnati Yojana umbrella and has been subsumed under PM-RKVY (Rashtriya Krishi Vikas Yojana) since 2022-23, aimed at promoting farm mechanization across India.
Objectives
- Increase farm power availability per unit area
- Promote custom hiring of farm machinery
- Create hubs for testing and training on farm equipment
- Support farm machinery banks at village level
Subsidy Structure
| Beneficiary Category | Subsidy on Cost |
|---|---|
| SC / ST / Small & Marginal Farmers (SF/MF) | 40–50% |
| Other Farmers (General) | 25–40% |
Key Components of SMAM
| Component | Description | Assistance |
|---|---|---|
| Custom Hiring Centres (CHCs) | Farm machinery banks for renting equipment | 40% of project cost (max Rs 10 lakh for individual, Rs 80 lakh for cooperative) |
| Hi-Tech Hubs | High-value equipment hubs in PPP mode | Up to Rs 2.5 crore per hub |
| Farm Machinery Banks | Village-level machinery pools | 80% subsidy for cooperatives/FPOs |
| Testing & Training | Capacity building on modern equipment | 100% grant for government institutions |
| Individual Farmer Purchase | Direct machinery purchase | 40-50% for SC/ST/SF/MF, 25-40% for others |
TIP
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Farm mechanization and clean energy adoption are key to improving agricultural productivity, reducing drudgery, and promoting sustainable farming. India's farm power availability has increased from 0.48 kW/ha in 1971 to 3.93 kW/ha (2024-25), with a target of 4 kW/ha by 2030.
Sub-Mission on Agricultural Mechanization (SMAM)
SMAM was originally under the Green Revolution — Krishonnati Yojana umbrella and has been subsumed under PM-RKVY (Rashtriya Krishi Vikas Yojana) since 2022-23, aimed at promoting farm mechanization across India.
Objectives
- Increase farm power availability per unit area
- Promote custom hiring of farm machinery
- Create hubs for testing and training on farm equipment
- Support farm machinery banks at village level
Subsidy Structure
| Beneficiary Category | Subsidy on Cost |
|---|---|
| SC / ST / Small & Marginal Farmers (SF/MF) | 40–50% |
| Other Farmers (General) | 25–40% |
Key Components of SMAM
| Component | Description | Assistance |
|---|---|---|
| Custom Hiring Centres (CHCs) | Farm machinery banks for renting equipment | 40% of project cost (max Rs 10 lakh for individual, Rs 80 lakh for cooperative) |
| Hi-Tech Hubs | High-value equipment hubs in PPP mode | Up to Rs 2.5 crore per hub |
| Farm Machinery Banks | Village-level machinery pools | 80% subsidy for cooperatives/FPOs |
| Testing & Training | Capacity building on modern equipment | 100% grant for government institutions |
| Individual Farmer Purchase | Direct machinery purchase | 40-50% for SC/ST/SF/MF, 25-40% for others |
TIP
SMAM subsidies for SC/ST/SF/MF are always higher (40-50%) compared to general category (25-40%). Custom Hiring Centres are the most important component — they allow small farmers to access expensive machinery on rent.
Eligible Farm Machinery
Key machines covered under SMAM include:
- Tractors (up to 20 HP for small farmers)
- Power tillers, rotavators, and seed drills
- Self-propelled reaper-binders and combine harvesters
- Laser land levellers
- Paddy transplanters
- Mulchers, shredders, and balers
- Post-harvest equipment (threshers, cleaners, graders)
PM KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan)
PM KUSUM was launched on 8 March 2019 to promote solar energy usage among farmers and reduce dependence on diesel/grid-connected pumps.
| Parameter | Details |
|---|---|
| Launch Date | 8 March 2019 |
| Total Budget | Rs 34,422 crore |
| Implementing Agency | MNRE (Ministry of New & Renewable Energy) |
| Target beneficiaries | Farmers, cooperatives, panchayats, water user associations |
3 Components of PM KUSUM
Component A — Decentralized Solar Power Plants
| Feature | Details |
|---|---|
| Purpose | Solar plants of 500 kW to 2 MW capacity on barren/fallow/marshy lands |
| Eligible land | Barren, fallow, pasture, marshy lands near substations |
| Benefit | Farmers earn additional income by selling solar power to DISCOMs |
| Power Purchase | 25-year PPA (Power Purchase Agreement) with DISCOM |
| Installation by | Farmers, cooperatives, panchayats, FPOs |
NOTE
Component A converts unproductive land into an income source — farmers can earn Rs 60,000 to Rs 1,00,000 per year per MW by selling solar power. This is tested as a "dual income" model.
Component B — Standalone Solar Pumps
| Feature | Details |
|---|---|
| Purpose | Standalone solar-powered water pumps for irrigation |
| Capacity | Up to 7.5 HP (individual farmers) |
| Target areas | Areas with no grid connectivity or unreliable grid supply |
| Suitable for | Farmers with water source (well, borewell, canal) but no electricity |
Component C — Solarization of Grid-Connected Pumps
| Feature | Details |
|---|---|
| Purpose | Solarize existing grid-connected agricultural pumps |
| Target | 35 lakh grid-connected pumps (revised B+C target: 49 lakh) |
| Benefit | Farmers use solar power for irrigation, sell surplus to DISCOM |
| Income model | Extra income through net-metering (sell surplus solar electricity) |
Financial Assistance (CFA) for PM KUSUM
| Source | Share |
|---|---|
| Central Government | 30% |
| State Government | 30% |
| Farmer's Contribution | 40% |
TIP
Memory trick: PM KUSUM follows a 30-30-40 pattern (Centre-State-Farmer). The farmer's 40% can be arranged through bank loan. For Component B (standalone pumps), the farmer share is just 10% for SC/ST/NE states.
PM KUSUM Key Targets
| Target | Numbers |
|---|---|
| Component A — Solar plants | 10,000 MW capacity |
| Component B — Solar pumps | 14 lakh standalone pumps |
| Component C — Solarization | 35 lakh grid-connected pumps (revised B+C target: 49 lakh) |
| Total solar capacity addition | 34.8 GW |
| CO₂ emission reduction | ~32 million tonnes per year |
Crop Residue Management
Crop residue burning, especially in Punjab, Haryana, and western UP after paddy harvest, causes severe air pollution. The government promotes in-situ management of crop residue as an alternative.
Central Scheme for Management of Crop Residue
The Central Sector Scheme on Promotion of Agricultural Mechanization for In-Situ Management of Crop Residue was launched to provide subsidized machinery for residue management.
Subsidized Machinery
| Machine | Purpose | Subsidy |
|---|---|---|
| Happy Seeder | Direct seeding of wheat into paddy stubble | 50% for individual, 80% for CHCs/cooperatives |
| Super SMS | Straw Management System (attachment for combine) | 50% for individual, 80% for CHCs/cooperatives |
| Rotavator | Chops and mixes crop residue into soil | 50% for individual, 80% for CHCs/cooperatives |
| Zero-till Drill | Sowing without ploughing, conserves moisture | 50% for individual, 80% for CHCs |
| Paddy Straw Chopper | Chops paddy straw for incorporation | 50% for individual, 80% for CHCs |
| Baler | Collects and bales crop residue for off-field use | 50% for individual, 80% for CHCs |
| Reaper Binder | Harvests and binds crop for easy collection | 50% for individual |
TIP
The Happy Seeder is the most important machine for crop residue management — it allows direct sowing of wheat into standing paddy stubble without burning. This is the most tested fact in this topic.
In-Situ vs Ex-Situ Management
| Approach | Method | Examples |
|---|---|---|
| In-situ management | Residue incorporated/retained in the field | Happy Seeder, rotavator, zero-till, mulching |
| Ex-situ management | Residue removed and used elsewhere | Biomass power plants, bio-CNG, composting, mushroom cultivation |
States Covered
The scheme primarily targets:
- Punjab — largest contributor to stubble burning
- Haryana
- Uttar Pradesh (western UP)
- NCT of Delhi
NOTE
The scheme was initially limited to Punjab, Haryana, UP, and Delhi — the states contributing most to winter air pollution in the Indo-Gangetic Plain. It has since been extended to other states on demand.
Other Farm Energy Initiatives
| Initiative | Key Feature |
|---|---|
| Solar Irrigation Pumps | Part of PM KUSUM Component B — off-grid areas |
| Biogas Programme (NBMMP) | New National Biogas & Organic Manure Programme |
| Biomass Power (BPCP) | Biomass Power & Cogeneration Programme — use crop residue for power |
| Green Energy Corridor | Transmission infrastructure for renewable energy evacuation |
Current Policies
SMAM — Budget & Status
| Parameter | Details |
|---|---|
| Current umbrella | PM-RKVY (since 2022-23) |
| Budget | Merged into PM-RKVY; no separate line item |
| Focus areas | CHCs, Farm Machinery Banks, Hi-tech Hubs |
CRM Scheme — Subsidy Update
| Beneficiary | Subsidy |
|---|---|
| Custom Hiring Centres (CHCs) | 80% of equipment cost |
| Individual farmers | 50% of equipment cost |
| Target states | Punjab, Haryana, UP, Delhi-NCR |
| Key machine | Happy Seeder — direct wheat sowing into paddy stubble |
Namo Drone Didi
Namo Drone Didi was launched on 30 November 2023 to empower women Self Help Groups (SHGs) through drone technology for agriculture.
| Parameter | Details |
|---|---|
| Launch | 30 November 2023 |
| Total Outlay | Rs 1,261 crore (2023-26) |
| Target | 15,000 drones to women SHGs |
| Use | Crop protection and nutrition spraying via drones |
| Central Financial Assistance | 80% subsidy (up to Rs 8 lakh per drone) |
TIP
Namo Drone Didi = drones + women SHGs. 80% CFA (max Rs 8 lakh). 15,000 drones targeted. Total outlay Rs 1,261 crore. Frequently appears as "who gets drones under this scheme?" → women SHGs.
PM KUSUM — Component B Subsidy (Most Asked)
| Source | Share |
|---|---|
| Central Government | 30% |
| State Government | 30% |
| Farmer contribution | 40% (10% for SC/ST/NE states) |
NOTE
Component B subsidy (standalone solar pumps ≤7.5 HP) is 60% total (30% Centre + 30% State). Asked in 2023 and 2024 papers. Farmer pays remaining 40%, reducible via bank loan.
Frequently Asked Exam Questions
- SMAM subsidy for SC/ST/SF/MF? → 40-50% of cost
- PM KUSUM launched on? → 8 March 2019
- PM KUSUM total budget? → Rs 34,422 crore
- CFA pattern for PM KUSUM? → 30% Centre + 30% State + 40% Farmer
- Component B pump capacity? → Up to 7.5 HP
- Component C target? → Solarize 35 lakh grid-connected pumps (revised B+C: 49 lakh)
- Happy Seeder purpose? → Direct wheat sowing into paddy stubble without burning
- CRM subsidy for CHCs? → 80% of equipment cost
- PM KUSUM Component A capacity range? → 500 kW to 2 MW
- SMAM current umbrella? → PM-RKVY (since 2022-23)
- Namo Drone Didi — who benefits? → 15,000 drones to women SHGs
- Namo Drone Didi CFA? → 80% (up to Rs 8 lakh per drone)
- Namo Drone Didi total outlay? → Rs 1,261 crore (2023-26)
- Namo Drone Didi launched? → 30 November 2023
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Farm power availability | Increased from 0.48 kW/ha (1971) to 3.93 kW/ha (2024-25); target 4 kW/ha by 2030 |
| SMAM – parent scheme | Originally Green Revolution — Krishonnati Yojana; now under PM-RKVY (since 2022-23) |
| SMAM – subsidy (SC/ST/SF/MF) | 40–50% of cost |
| SMAM – subsidy (general) | 25–40% of cost |
| Custom Hiring Centres (CHCs) | 40% of project cost (max Rs 10 lakh individual, Rs 80 lakh cooperative) |
| Hi-Tech Hubs | Up to Rs 2.5 crore per hub |
| Farm Machinery Banks | 80% subsidy for cooperatives/FPOs |
| SMAM budget | Merged into PM-RKVY (no separate line item) |
| PM KUSUM – full form | Kisan Urja Suraksha evam Utthaan Mahabhiyan |
| PM KUSUM – launched | 8 March 2019 |
| PM KUSUM – total budget | Rs 34,422 crore |
| PM KUSUM – implementing agency | MNRE (Ministry of New & Renewable Energy) |
| PM KUSUM – CFA pattern | 30% Centre + 30% State + 40% Farmer |
| Component A | Solar plants 500 kW to 2 MW on barren/fallow/marshy land; 25-year PPA with DISCOM |
| Component B | Standalone solar pumps up to 7.5 HP — off-grid areas |
| Component C | Solarize 35 lakh grid-connected pumps (revised B+C: 49 lakh); surplus sold via net-metering |
| PM KUSUM – Component A target | 10,000 MW capacity |
| PM KUSUM – Component B target | 14 lakh standalone pumps |
| PM KUSUM – total solar addition | 34.8 GW |
| PM KUSUM – CO₂ reduction | ~32 million tonnes/year |
| Crop Residue Management scheme | Central Sector Scheme — subsidized machinery for in-situ residue management |
| Happy Seeder | Direct wheat sowing into paddy stubble — most important CRM machine |
| Happy Seeder / Rotavator / Super SMS | 50% subsidy (individual); 80% subsidy (CHCs/cooperatives) |
| Super SMS | Straw Management System — attachment for combine harvester |
| In-situ management | Residue incorporated in field — Happy Seeder, rotavator, zero-till, mulching |
| Ex-situ management | Residue removed — biomass power plants, bio-CNG, composting, mushroom cultivation |
| CRM target states | Punjab, Haryana, UP, Delhi-NCR |
| Namo Drone Didi – launched | 30 November 2023 |
| Namo Drone Didi – target | 15,000 drones to women SHGs |
| Namo Drone Didi – CFA | 80% (up to Rs 8 lakh per drone) |
| Namo Drone Didi – total outlay | Rs 1,261 crore (2023-26) |
| NBMMP | New National Biogas & Organic Manure Programme |
| Biomass Power (BPCP) | Biomass Power & Cogeneration Programme — uses crop residue for power generation |