Farm Machinery Bank (FMB)/Farm Machinery Hub (FMH)

Farm Machinery Bank (FMB)/Farm Machinery Hub (FMH)

The Farm Machinery Bank (FMB) and Farm Machinery Hub (FMH) initiative, introduced by the Agriculture Department of the Government of West Bengal, aims to make modern agricultural machinery accessible to small and marginal farmers. The scheme is structured to provide affordable solutions for farm mechanization, facilitating comprehensive usage from land preparation to residue management.

Overview of the Scheme

Launched in 2023 and set to continue into 2024-25, the Farm Machinery Bank (FMB) and Farm Machinery Hub (FMH) operate under the broader Farm Mechanization Umbrella Scheme. The primary goal is to generate employment for rural youth and entrepreneurs while promoting the establishment of hubs in regions with limited farm power resources.

Objectives of the Scheme

• Encourage self-employment among rural youth and aspiring entrepreneurs.
• Facilitate the comprehensive use of farm machinery, making it affordable for small and marginal farmers.
• Reduce the financial burden of acquiring agricultural machinery for small landholders.
• Support the establishment of primary processing units, including dal mills, oil mills, and grinding machinery, along with seed processing units.
• Enhance farm power availability from the current 2.30 KW/ha to the targeted 2.50 KW/ha, as per Government of India's vision.

Operational Areas

This scheme is applicable across the state of West Bengal, with the exception of the Kolkata district.

Machinery Selection

The types of machinery and implements eligible for the FMB/FMH are detailed in Annexure-IV-A. Before the online application process begins, the State Project Management Team (SPMT) will publish a list of available machinery models along with indicative prices on the Matirkatha portal. Applicants may select multiple machinery options for establishing their FMB/FMH. For setting up primary processing units like dal mills or oil mills, applicants can choose one piece of machinery with a minimum project cost of ₹10,00,000. Though the list is indicative, other suitable machinery may be approved based on the latest guidelines as per the SMAM framework, subject to SPMT approval.

Benefits

Assistance Pattern

The subsidy provided under this scheme will cover 80% of the Total Financial Outlay (TFO), with a cap of ₹8,00,000. The minimum TFO must be ₹10,00,000, which includes the indicative cost of machinery, costs associated with sheds, Annual Maintenance Costs (AMC), and insurance. The beneficiary is responsible for the remaining amount.

Furthermore, the cost for an open shed for machinery is limited to 5% of TFO, while total ancillary expenses (excluding machinery) should not exceed 10% of the TFO.

Important Notes

• Applicants must contribute a margin of at least 25% of the TFO to the financing bank prior to the subsidy release by the Deputy Director of Agriculture (DDA).
• The government will not procure any machinery; instead, it will release a back-ended subsidy against machinery purchased by beneficiaries, who will secure a bank loan for the remaining amount.
• Subsidy disbursement will occur through Direct Benefit Transfer (DBT) to the beneficiary’s bank account.
• Only machinery from approved manufacturers and dealers, as listed on the departmental portal, is eligible for the subsidy.
• Beneficiaries or their spouses may not apply for fresh subsidies for four years following the release of the last subsidy under this scheme.

Eligibility Criteria

• Individuals registered as Rural Youth Entrepreneurs under the Krishak Bandhu (New) Scheme.
• Groups such as Self-Help Groups (SHG), Farmers Producer Organizations (FPO), or cooperatives recognized by government institutions, operational for at least one year.
• The total project cost must be a minimum of ₹10,00,000.
• Applicants must possess sufficient land (own, leased, or hired) suitable for establishing the FMB/FMH, categorized under commercial or bastu or viti.
• Applicants must be at least 18 years old at the time of application.

Application Process

Online Application

The application process consists of two main stages: registration and application submission.

Registration Steps:

1. Visit the official FMS portal and click on “New Registration”.
2. Complete all mandatory fields in the “Applicant Registration” form.
3. Confirm all details and click on “Sign Up”.

Application Submission Steps:

1. Log in to the official FMS portal.
2. Enter your Voter Card number, password, and select the season, then click on “Log In”.
3. Fill in all required details in the application form.
4. After submitting your online application, print the application and acknowledgement receipt, attach a recent passport-sized photograph, and other necessary documents (self-attested if required). Submit these to the District Deputy Director of Agriculture’s office within the designated timeframe.
5. Applicants will have one opportunity to edit specific fields after submission but must finalize changes before submitting the hard copy.