Centre releases Rs 553 crore to states for agricultural mechanization

News: Central Government has released Rs 553 crore to states under the Sub-Mission on Agricultural Mechanization(SMAM).

Facts:

• Sub-Mission on Agricultural Mechanization(SMAM): It was launched in 2014 with an aim to have inclusive growth of farm mechanization to boost productivity.
• Objectives:
  • Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low;
  • Promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership;
  • Creating hubs for hi-tech & high value farm equipments;
  • Creating awareness among stakeholders through demonstration and capacity building activities;
  • Ensuring performance testing and certification at designated testing centers located all over the country.

Additional Facts:

• Agriculture Infrastructure Fund: It is a Central Sector Scheme which aims to provide medium to long-term debt financing for setting up of post-harvest infrastructure and community assets for marketing of farm produce.
  • Approach: Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE) scheme for loans up to Rs. 2 Crore.
  • Duration: The duration of the scheme shall be from FY2020 to FY2029 (10 years).
  • Beneficiaries: Farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.
• PM KISAN: It is a Central Sector Scheme launched in 2018 to provide income support by way of a cash benefit to all landholding farmers (subject to certain exclusion criteria) to enable them to fulfill their agricultural requirements and support their families. 
  • Under the scheme, the financial benefit of Rs.6000/- per year is provided to eligible beneficiary farmers in three equal installments.