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 SchemeAgricultural Mechanization Promotion Scheme 2018-2019
Implementation AuthorityCentral Government of India and The Ministry of Agriculture and Farmers Welfare
Purpose of proposalTo decrease the rate of Air Pollution caused by Stubble Burning
Grantees benefitedCitizens from the states of Punjab, Haryana, Uttar Pradesh and the NCR Delhi
Budget allocatedINR 1151.80 Crores
Execution PeriodFinancial 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.

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Frequently Asked Questions

Common questions about Agricultural Mechanization Promotion Scheme.

The Agricultural Mechanization Promotion Scheme is an initiative launched by the Ministry of Farmers Welfare, Government of India, to reduce air pollution caused by stubble burning. It aims to provide farmers with access to crop residue management machinery and equipment through farm machinery banks and financial assistance.
This scheme is crucial because stubble burning by farmers is a significant contributor to air pollution in metro cities like Delhi, Mumbai, and Chandigarh. By promoting agricultural mechanization and providing alternative solutions, the scheme aims to reduce stubble burning and its negative impact on air quality.
The primary beneficiaries of the Agricultural Mechanization Promotion Scheme are farmers from the states of Punjab, Haryana, Uttar Pradesh, and the National Capital Region of Delhi. Farmer societies, Farmer Producer Organizations (FPOs), Self-Help Groups, and Women Farmer Groups are also eligible for financial assistance under the scheme.
The Central Government of India has allocated a budget of INR 1151.80 Crores for the Agricultural Mechanization Promotion Scheme, split into INR 591.65 Crores for the financial year 2018-2019 and INR 560.15 Crores for the financial year 2019-2020.
The scheme facilitates the establishment of farm machinery banks, where farmers can hire crop residue management machinery. Additionally, farmers can receive financial assistance of up to 80% for purchasing agricultural machinery and equipment for crop residue management.
The Central Government provides financial support to Krishi Vigyan Kendras (KVKs), which are agricultural extension centers, ICAR institutes, and other public sector undertakings. These organizations play a crucial role in educating and creating awareness among farmers about the scheme and the importance of reducing stubble burning.
The corresponding State Governments identify beneficiaries through District Level Executive Committees (DLECs). The selection process is designed to be transparent and time-bound, with beneficiaries' names, Aadhaar/UID numbers, and financial assistance details documented at the district level.
The Government of India aims to raise awareness about the scheme and the importance of reducing stubble burning through various campaigns. These include films, documentaries, radio and TV programs, print media advertisements, and camps focused on achieving zero stubble burning.
The State Nodal Department collaborates with local banks to credit financial aid towards the requirements of the farmers. The financial assistance is expected to be paid through Direct Benefit Transfer (DBT) to ensure transparency and efficient delivery.
The Government of India believes that the Agricultural Mechanization Promotion Scheme will significantly reduce stubble burning and air pollution caused by the agricultural sector. By providing farmers with access to machinery, equipment, and financial assistance, the scheme aims to promote sustainable agricultural practices and improve air quality.