40-100 per cent subsidy to popularise drones in agriculture until March 2023

The guidelines of Sub-Mission on Agricultural Mechanization (SMAM) have been amended which envisages a grant up to 100 per cent of the cost of agriculture drone or ₹10 lakhs, whichever is less, as a grant for the purchase of drones, the Ministry said in a statement. But, this 100 per cent grant will be limited to only Farm Machinery Training and Testing Institutes, Indian Council of Agricultural Research (ICAR) institutes, Krishi Vigyan Kendras and State Agriculture Universities for taking up large-scale demonstrations of this technology on the farmers’ fields.

40-100 per cent subsidy to popularise drones in agriculture until March 2023

Percent and max amount of subsidy:

  • Farm Machinery Training and Testing Institutes, Indian Council of Agricultural Research (ICAR) institutes, Krishi Vigyan Kendras and State Agriculture Universities- 100% subsidy- Rs 10 lakh maximum
  • Agriculture graduates establishing Custom Hiring Centers (CHCs)= 50 per cent subsidy up to Rs 5 lakh
  • Existing CHCs or new ones, already or to be set up by a cooperative society of farmers, farmer producers organizations (FPOs) and rural entrepreneurs are entitled to receive= 40 per cent subsidy (maximum Rs 4 lakh).

Additionally, ₹6,000/hectare would be given to these implementing agencies that hire drones from CHCs, Hi-tech Hubs, drone manufacturers and start-ups for demonstrations. But, they would receive Rs 3,000/hectare if purchase the drones for demonstrations.

Rural entrepreneurs are defined as those who have passed the class tenth examination from a recognised Board and have a remote pilot license from an institute recognized by the Director-General of Civil Aviation(DGCA)

Ministry said:

The subsidized purchase of agriculture drones for CHCs/Hi-tech Hubs will make the technology affordable, resulting in their widespread adoption, the Ministry said. This would make drones more accessible to the common man and will also significantly encourage domestic drone production.

The demonstrating institutions and all the providers of agricultural services through drone application will have to comply with rules, regulations and Standard Operating Procedures (SOPs) made already by different departments. 

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