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Farmers & AgricultureOfficial Info Verified
Custom Hiring Centre (CHC) Farm Machinery Scheme
Credit-linked capital subsidy scheme (up to 40% of Total Financial Outlay with a minimum stated subsidy of ₹8 Lakh) for rural entrepreneurs, FPOs, SHGs, and PACS to establish Custom Hiring Centres, enabling farmers to hire high-end agricultural machinery at reasonable rental rates.
Department: Department of Agriculture, Government of West Bengal
Subsidy Pattern
Up to 40% TFO
On Total Financial Outlay / Project Cost
Minimum Subsidy
₹8.00 Lakh
Stated baseline in 2025–26 guideline
Target Beneficiaries
Rural Entrepreneurs
FPOs, SHGs, PACS & Individuals
Inception Date
22 Oct 2014
Department of Agriculture, WB
Language:
Scheme Overview
What is Custom Hiring Centre (CHC) Farm Machinery Scheme?
The Credit Linked Subsidy Scheme for Rural Entrepreneurs to set up Custom Hiring Centres (CHC) of Farm Machinery is a flagship enterprise-oriented mechanization initiative of the Department of Agriculture, Government of West Bengal. Launched on 22 October 2014 and governed by the Operational Guidelines for Farm Mechanization Schemes 2025–26, the scheme provides financial subsidy to eligible rural entrepreneurs, Farmers Producer Organisations (FPOs), Self-Help Groups (SHGs), and Primary Agricultural Credit Societies (PACS) to establish machinery hiring hubs in rural areas. Rather than giving free machinery directly to individual farmers, the CHC model establishes community-level equipment banks where high-end machinery—such as combine harvesters, laser land levelers, multi-crop threshers, tractors, and transplanters—is owned by the entrepreneur and made available to local farmers on a rental basis at reasonable charges. Under 2025–26 norms, the scheme offers a maximum subsidy of up to 40% of the Total Financial Outlay (TFO) / Total Project Cost, with a minimum subsidy figure stated at ₹8.00 Lakh, subject to machinery-wise ceilings under SMAM guidelines and SPMT recommendations. Project proposals are scrutinized and sanctioned in-principle by the District Level Selection Committee (DLSC), after which the entrepreneur must submit a bank consent letter and Project Appraisal Report within 15 days to secure credit-linked subsidy release.
Primary Purpose:To establish localized agricultural machinery rental hubs in rural West Bengal by supporting rural entrepreneurs with bank-linked capital subsidies, thereby expanding farmers’ access to advanced, high-end farm equipment at affordable rental rates.
Key Scheme Objectives
- Enable rural entrepreneurs to set up commercially viable Custom Hiring Centres for farm machinery.
- Provide small and marginal farmers affordable access to modern, high-end farm equipment on a rental basis.
- Create rural self-employment opportunities and foster agricultural entrepreneurship across West Bengal.
- Enhance regional agricultural productivity and provide swift mechanization response during climate calamities.
Financial Framework
Credit-Linked Financing Structure & CHC Model Architecture
The Custom Hiring Centre scheme operates on an entrepreneur-driven, credit-linked financial model where bank financing is combined with state capital subsidy and promoter equity to establish rural machinery rental hubs.
Max Subsidy Rate
40% of TFO
Stated Min Subsidy
₹8.00 Lakh
Selection Authority
DLSC Committee
Bank Submission Time
15 Days
How the Custom Hiring Centre (CHC) Model Works
Under the CHC model, a rural entrepreneur or group obtains a bank term loan and sets up a farm equipment centre. The Government provides a credit-linked subsidy of up to 40% of TFO (with a stated minimum of ₹8 lakh). The CHC purchases certified agricultural machinery, which local farmers hire on demand by paying reasonable rental charges. This allows smallholders to access expensive machinery without taking on capital debt.
CHC Sanction & Approval Workflow (2025–26 Norms):
1. Project Proposal & DLSC Evaluation
Applicant submits DPR and Total Financial Outlay (TFO) proposal to the District Level Selection Committee (DLSC) via the Agriculture Department.
2. In-Principle Sanction Issuance
Upon scrutiny, the DLSC issues an official In-Principle Sanction communication for up to 40% subsidy of TFO.
3. Mandatory 15-Day Bank Consent Submission
Within 15 days of sanction communication, the beneficiary MUST submit the financing bank branch consent letter and Project Appraisal Report (failure results in cancellation).
4. Machinery Procurement & Post-Inspection Subsidy Release
Entrepreneur procures certified machinery from empaneled dealers. Post physical verification and geo-tagging, subsidy is released to the bank account.
Critical Scheme Distinction:
CHC is a business/rental hub scheme for rural entrepreneurs (up to 40% TFO subsidy). FSSM is an individual machinery purchase subsidy for farmers. OTA-SFI is for small implements. AIF is a separate central interest-subvention infrastructure scheme.
SMAM Operational Guidelines & SPMT Ceilings
Maximum subsidy ceilings for individual machines inside the CHC package are governed by Sub-Mission on Agricultural Mechanization (SMAM) guidelines and State Project Monitoring Team (SPMT) recommendations.
Eligibility Guidelines
Who is Eligible to Apply?
Review standard qualifying conditions, income limits, and applicable waiver categories. Read our guide on understanding eligibility
Standard Eligibility Requirements
- Eligible Applicants: Individual Rural Entrepreneurs, Registered Farmer Groups, SHGs, FPOs/FPCs, and Primary Agricultural Credit Societies (PACS)
- Must possess or arrange suitable land/premises in a rural area for machinery storage, maintenance, and rental operations
- Must obtain credit financing / term loan sanction from a commercial bank, regional rural bank, or cooperative bank
- Must submit financing Bank Consent Letter and Project Appraisal Report within 15 days of In-Principle Sanction by DLSC
Not Eligible:
- Individual farmers seeking personal farm machinery for private use (such individual purchases fall under FSSM or OTA-SFI).
- Proposals without commercial bank credit linkage or unable to submit bank consent within the mandatory 15-day timeline.
- Applications proposing machinery that does not comply with SMAM testing norms or unauthorized non-empaneled vendors.
Rural Enterprise
Credit-Linked Subsidy Up to 40% of Total Project Cost
Department of Agriculture, West Bengal
Financial subsidy for rural entrepreneurs, FPOs, and cooperatives to establish Custom Hiring Centres with a stated minimum subsidy of ₹8.00 Lakh.
Farmer Benefits
Access to High-End Agricultural Machinery at Reasonable Rental Rates
Local farmers can hire tractors, combine harvesters, transplanters, and rotavators on demand without incurring massive capital debt.
Required Documentation
Commonly Required Documents
Exact document requirements can depend on the application type and applicant circumstances. View our common documents checklist
Standard
Detailed Project Report (DPR) & Total Financial Outlay (TFO) Breakdown
Comprehensive project plan specifying proposed machinery package, capital cost, operational revenue, and viability.
Standard
Bank Consent Letter & Project Appraisal Report (Post In-Principle Sanction)
Mandatory bank consent in prescribed annexure and appraisal report submitted within 15 days of DLSC approval.
Standard
Applicant Identity, Registration & Entity Documents (Aadhaar/PAN/Registration)
Identity proof of entrepreneur or registration certificate, resolution, and PAN for FPO/SHG/PACS.
Standard
Site / Land Possession / Lease Agreement for CHC Yard
Proof of land ownership or valid long-term lease agreement for establishing the machinery garage/yard.
Standard
Machinery Quotations from Empaneled Manufacturers/Dealers
Proforma invoices and commercial test compliance certificates for proposed machinery.
Guidance: Ensure the applicant’s bank account is active and matches the beneficiary name exactly before institutional submission.
Application Process
How to Apply for Custom Hiring Centre (CHC) Farm Machinery Scheme
Step-by-step application and verification procedure based on official guidelines. Read our official portals guide
1
Formulate Detailed Project Report (DPR)
Prepare a viable project proposal detailing the machinery mix, TFO, financial projections, and site plan as per 2025–26 guidelines.
2
Submit Application to District Agriculture Authority
Submit the CHC project application to the Deputy Director of Agriculture (DDA) / Assistant Director of Agriculture (ADA) for DLSC scrutiny.
3
DLSC Evaluation & In-Principle Sanction
The District Level Selection Committee (DLSC) reviews the proposal and issues an official In-Principle Sanction Order for up to 40% subsidy.
4
Submit Bank Consent & Appraisal Report within 15 Days
Beneficiary obtains and submits the financing bank consent letter and project appraisal report within the mandatory 15-day deadline.
5
Establish CHC, Procure Machinery & Post-Verification Subsidy Release
Procure certified machinery from empaneled dealers. Following physical verification and geo-tagging, the credit-linked subsidy is released to the bank account.
Payment Method
The government subsidy (up to 40% of Total Financial Outlay with a stated minimum baseline of ₹8.00 Lakh) is credit-linked and released directly into the beneficiary entrepreneur’s loan/bank account following In-Principle DLSC sanction, submission of the 15-day bank consent letter with project appraisal report, physical inspection, and geo-tagging of the established CHC machinery.
Scheme Inception:Launched on 22 October 2014 by Department of Agriculture, Government of West Bengal
Important to Know
CHC is an entrepreneur/rental hub model (up to 40% TFO subsidy; stated minimum ₹8 Lakh), NOT a free individual farmer giveaway.
Local farmers hire agricultural machinery from the CHC on demand by paying reasonable, competitive rental charges.
In-principle sanction is granted by the District Level Selection Committee (DLSC).
Bank consent letter and Project Appraisal Report must strictly be submitted within 15 days of sanction communication.
CHC is distinct from individual FSSM subsidies, small OTA-SFI grants, collective FMB hubs, and the central AIF scheme.
Frequently Asked Questions
Custom Hiring Centre (CHC) Farm Machinery Scheme Frequently Asked Questions
Common questions and answers regarding eligibility, benefits, documents, and application process for Custom Hiring Centre (CHC) Farm Machinery Scheme.
A Custom Hiring Centre (CHC) is a localized agricultural machinery rental hub established in a rural area where expensive farm equipment is maintained and rented out to local farmers at reasonable charges.
Sources Checked
All factual information on this page has been compiled and verified against official government portals, gazettes, and departmental guidelines.
Last Verified: 2026-08-18T00:00:00Z
Independent Platform Notice:
WBScheme is an independent information platform and is not the Government of West Bengal. CHC eligibility, project cost, subsidy rates, subsidy ceilings, financing requirements, machinery specifications, application procedures and implementation rules may change through Government notifications. Always verify the latest information through the West Bengal Agriculture Department and the concerned financing authority before applying.
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