Ramya Arul Rose
Published on: Sep 17, 2026
Agricultural Mechanization Promotion Scheme
The Ministry of Farmers Welfare, Government of India, has initiated the implementation of the Agricultural Mechanization Promotion Scheme. The primary objective of this scheme is to reduce air pollution caused by stubble burning, a significant issue in urban areas such as Mumbai, Chandigarh, and the National Capital of Delhi. Stubble burning contributes to severe air pollution affecting many other cities and villages. Therefore, to mitigate this problem and control pollution, the Central Government of India launched the Agricultural Mechanization Promotion Scheme for 2018-2019, focusing on crop residue management and related issues.
The Budget
The Central Government has allocated approximately INR 1151.80 Crores for the Agricultural Mechanization Promotion Scheme during 2018-2019 and 2019-2020, with INR 591.65 Crores and INR 560.15 Crores respectively designated for these financial years.
| Name of Scheme | Agricultural Mechanization Promotion Scheme 2018-2019 |
| Implementation Authority | Central Government of India and The Ministry of Agriculture and Farmers Welfare |
| Purpose of proposal | To decrease the rate of Air Pollution caused by Stubble Burning |
| Grantees benefited | Citizens from the states of Punjab, Haryana, Uttar Pradesh and the NCR Delhi |
| Budget allocated | INR 1151.80 Crores |
| Execution Period | Financial Years: 2018 - 2019, 2019 - 2020 |
Establishment of Farm Machinery Banks
Through the Agricultural Mechanization Promotion Scheme, farmers can easily hire in-situ crop residue management machinery. This initiative aims to reduce pollution from the agricultural sectors with government schemes similar to the Farmer Producer Organization Scheme. Moreover, the scheme promises financial aid of up to 80% to various Farmers Societies, Farmer Producer Organizations, Self-Help Groups, and Women Farmer Groups.
Financial Aid to Farmers
Beyond hiring machinery, the scheme provides financial aid up to 50% to farmers for purchasing agricultural equipment. With such substantial benefits, the government anticipates a significant reduction in stubble burning and a corresponding decrease in air pollution. Registration for financial assistance can also be done through governmental financial schemes available.
Education, Information and Communication
Under the Agricultural Mechanization Promotion Scheme, the Central Government provides financial support to state governments and Krishi Vigyan Kendras (KVKs), which are agricultural extension centers in India, including ICAR - Central Island Agricultural Research Institutes and other government institutions. The scheme also promotes awareness through media campaigns, including films, documentaries, radio and TV programs, print advertisements, and camps, to achieve Zero Stubble Burning by educating communities on sustainable practices. Information available in the West Bengal Land Conversion schemes can serve as a reference for land management policies.
Beneficiaries of this Scheme
- State Governments will identify recipients through the District Level Executive Committee (DLEC) for establishing farm machinery banks and utilize the setup for Custom Hiring of products.
- The scheme allows the procurement of machines on an individual ownership basis to ensure benefits are accessed transparently and punctually.
- The State Nodal Department will collaborate with local banks to credit financial aid, simplifying the process for farmers in need of assistance.
- Selected beneficiaries will have their Aadhar/UID numbers documented at the district level, and financial assistance will be distributed through the District Benefit Transfer (DBT) system. Guidance on similar applications can be found in the Income Tax Filing resources.
This program's success lies in its collaborative approach, where farmers, government agencies, and local banks work together to ensure efficient implementation and tangible results in air quality improvement. Institutions interested in implementing related schemes can learn from the RBI Resolution Framework for structured banking solutions.