Lesson
08 of 9
Translate

🎯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 CategorySubsidy on Cost
SC / ST / Small & Marginal Farmers (SF/MF)40–50%
Other Farmers (General)25–40%

Key Components of SMAM

ComponentDescriptionAssistance
Custom Hiring Centres (CHCs)Farm machinery banks for renting equipment40% of project cost (max Rs 10 lakh for individual, Rs 80 lakh for cooperative)
Hi-Tech HubsHigh-value equipment hubs in PPP modeUp to Rs 2.5 crore per hub
Farm Machinery BanksVillage-level machinery pools80% subsidy for cooperatives/FPOs
Testing & TrainingCapacity building on modern equipment100% grant for government institutions
Individual Farmer PurchaseDirect machinery purchase40-50% 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.

ParameterDetails
Launch Date8 March 2019
Total BudgetRs 34,422 crore
Implementing AgencyMNRE (Ministry of New & Renewable Energy)
Target beneficiariesFarmers, cooperatives, panchayats, water user associations

3 Components of PM KUSUM

Component A — Decentralized Solar Power Plants

FeatureDetails
PurposeSolar plants of 500 kW to 2 MW capacity on barren/fallow/marshy lands
Eligible landBarren, fallow, pasture, marshy lands near substations
BenefitFarmers earn additional income by selling solar power to DISCOMs
Power Purchase25-year PPA (Power Purchase Agreement) with DISCOM
Installation byFarmers, 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

FeatureDetails
PurposeStandalone solar-powered water pumps for irrigation
CapacityUp to 7.5 HP (individual farmers)
Target areasAreas with no grid connectivity or unreliable grid supply
Suitable forFarmers with water source (well, borewell, canal) but no electricity

Component C — Solarization of Grid-Connected Pumps

FeatureDetails
PurposeSolarize existing grid-connected agricultural pumps
Target35 lakh grid-connected pumps (revised B+C target: 49 lakh)
BenefitFarmers use solar power for irrigation, sell surplus to DISCOM
Income modelExtra income through net-metering (sell surplus solar electricity)

Financial Assistance (CFA) for PM KUSUM

SourceShare
Central Government30%
State Government30%
Farmer’s Contribution40%

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

TargetNumbers
Component A — Solar plants10,000 MW capacity
Component B — Solar pumps14 lakh standalone pumps
Component C — Solarization35 lakh grid-connected pumps (revised B+C target: 49 lakh)
Total solar capacity addition34.8 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

MachinePurposeSubsidy
Happy SeederDirect seeding of wheat into paddy stubble50% for individual, 80% for CHCs/cooperatives
Super SMSStraw Management System (attachment for combine)50% for individual, 80% for CHCs/cooperatives
RotavatorChops and mixes crop residue into soil50% for individual, 80% for CHCs/cooperatives
Zero-till DrillSowing without ploughing, conserves moisture50% for individual, 80% for CHCs
Paddy Straw ChopperChops paddy straw for incorporation50% for individual, 80% for CHCs
BalerCollects and bales crop residue for off-field use50% for individual, 80% for CHCs
Reaper BinderHarvests and binds crop for easy collection50% 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

ApproachMethodExamples
In-situ managementResidue incorporated/retained in the fieldHappy Seeder, rotavator, zero-till, mulching
Ex-situ managementResidue removed and used elsewhereBiomass 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

InitiativeKey Feature
Solar Irrigation PumpsPart 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 CorridorTransmission infrastructure for renewable energy evacuation

Current Policies

SMAM — Budget & Status

ParameterDetails
Current umbrellaPM-RKVY (since 2022-23)
BudgetMerged into PM-RKVY; no separate line item
Focus areasCHCs, Farm Machinery Banks, Hi-tech Hubs

CRM Scheme — Subsidy Update

BeneficiarySubsidy
Custom Hiring Centres (CHCs)80% of equipment cost
Individual farmers50% of equipment cost
Target statesPunjab, Haryana, UP, Delhi-NCR
Key machineHappy 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.

ParameterDetails
Launch30 November 2023
Total OutlayRs 1,261 crore (2023-26)
Target15,000 drones to women SHGs
UseCrop protection and nutrition spraying via drones
Central Financial Assistance80% 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)

SourceShare
Central Government30%
State Government30%
Farmer contribution40% (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

  1. SMAM subsidy for SC/ST/SF/MF?40-50% of cost
  2. PM KUSUM launched on?8 March 2019
  3. PM KUSUM total budget?Rs 34,422 crore
  4. CFA pattern for PM KUSUM?30% Centre + 30% State + 40% Farmer
  5. Component B pump capacity?Up to 7.5 HP
  6. Component C target?Solarize 35 lakh grid-connected pumps (revised B+C: 49 lakh)
  7. Happy Seeder purpose?Direct wheat sowing into paddy stubble without burning
  8. CRM subsidy for CHCs?80% of equipment cost
  9. PM KUSUM Component A capacity range?500 kW to 2 MW
  10. SMAM current umbrella?PM-RKVY (since 2022-23)
  11. Namo Drone Didi — who benefits?15,000 drones to women SHGs
  12. Namo Drone Didi CFA?80% (up to Rs 8 lakh per drone)
  13. Namo Drone Didi total outlay?Rs 1,261 crore (2023-26)
  14. Namo Drone Didi launched?30 November 2023

Summary Cheat Sheet

Concept / TopicKey Details / Explanation
Farm power availabilityIncreased from 0.48 kW/ha (1971) to 3.93 kW/ha (2024-25); target 4 kW/ha by 2030
SMAM – parent schemeOriginally 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 HubsUp to Rs 2.5 crore per hub
Farm Machinery Banks80% subsidy for cooperatives/FPOs
SMAM budgetMerged into PM-RKVY (no separate line item)
PM KUSUM – full formKisan Urja Suraksha evam Utthaan Mahabhiyan
PM KUSUM – launched8 March 2019
PM KUSUM – total budgetRs 34,422 crore
PM KUSUM – implementing agencyMNRE (Ministry of New & Renewable Energy)
PM KUSUM – CFA pattern30% Centre + 30% State + 40% Farmer
Component ASolar plants 500 kW to 2 MW on barren/fallow/marshy land; 25-year PPA with DISCOM
Component BStandalone solar pumps up to 7.5 HP — off-grid areas
Component CSolarize 35 lakh grid-connected pumps (revised B+C: 49 lakh); surplus sold via net-metering
PM KUSUM – Component A target10,000 MW capacity
PM KUSUM – Component B target14 lakh standalone pumps
PM KUSUM – total solar addition34.8 GW
PM KUSUM – CO₂ reduction~32 million tonnes/year
Crop Residue Management schemeCentral Sector Scheme — subsidized machinery for in-situ residue management
Happy SeederDirect wheat sowing into paddy stubble — most important CRM machine
Happy Seeder / Rotavator / Super SMS50% subsidy (individual); 80% subsidy (CHCs/cooperatives)
Super SMSStraw Management System — attachment for combine harvester
In-situ managementResidue incorporated in field — Happy Seeder, rotavator, zero-till, mulching
Ex-situ managementResidue removed — biomass power plants, bio-CNG, composting, mushroom cultivation
CRM target statesPunjab, Haryana, UP, Delhi-NCR
Namo Drone Didi – launched30 November 2023
Namo Drone Didi – target15,000 drones to women SHGs
Namo Drone Didi – CFA80% (up to Rs 8 lakh per drone)
Namo Drone Didi – total outlayRs 1,261 crore (2023-26)
NBMMPNew National Biogas & Organic Manure Programme
Biomass Power (BPCP)Biomass Power & Cogeneration Programme — uses crop residue for power generation
🔐

Pro Content Locked

Upgrade to Pro to access this lesson and all other premium content.

Pro Popular
199 /mo

₹2388 billed yearly

  • All Agriculture & Banking Courses
  • AI Lesson Questions (100/day)
  • AI Doubt Solver (50/day)
  • Glows & Grows Feedback (30/day)
  • AI Section Quiz (20/day)
  • 22-Language Translation (30/day)
  • Recall Questions (20/day)
  • AI Quiz (15/day)
  • AI Quiz Paper Analysis
  • AI Step-by-Step Explanations
  • Spaced Repetition Recall (FSRS)
  • AI Tutor
  • Immersive Text Questions
  • Audio Lessons — Hindi & English
  • Mock Tests & Previous Year Papers
  • Summary & Mind Maps
  • XP, Levels, Leaderboard & Badges
  • Generate New Classrooms
  • Voice AI Teacher (AgriDots Live)
  • AI Revision Assistant
  • Knowledge Gap Analysis
  • Interactive Revision (LangGraph)

🔒 Secure via Razorpay · Cancel anytime · No hidden fees

Lesson Doubts

Ask questions, get expert answers

Lesson Doubts is a Pro feature.Upgrade