The Custom Hiring Centre (CHC) scheme is run by the Ministry of Agriculture and Farmers Welfare under the Sub-Mission on Agricultural Mechanization (SMAM), launched in 2014. It was introduced because most Indian farmers operate on small (1–2 hectare) or marginal (under 1 hectare) landholdings, making it financially unviable for them to own expensive machinery like tractors, combine harvesters, or paddy transplanters. CHCs solve this by setting up local rental hubs from which farmers can hire equipment on an hourly or per-acre basis, paying only for the time they actually use it. This brings modern mechanisation within reach of farmers who could never afford to buy such equipment outright.
Custom Hiring Centre Scheme Overview
- Scheme Name – Custom Hiring Centre (CHC) Scheme, a component of the Sub-Mission on Agricultural Mechanization (SMAM)
- Scheme Launch/Modification – SMAM launched in 2014 under the National Mission on Agricultural Extension and Technology; continues as a Centrally Sponsored Scheme with annual state-wise target allocation (2025-26 cycle notified through the agrimachinery.nic.in DBT portal)
- Scheme Fund Allocated – Financial assistance is disbursed via Direct Benefit Transfer (DBT); the Centre and states jointly fund subsidies, with exact yearly outlay fixed through each state's Annual Action Plan under SMAM
- Type of Scheme – Central Government (Centrally Sponsored Scheme), implemented through state Agriculture Departments
- Helpline No – Kisan Call Centre, 1800-180-1551; state-specific queries can also be raised through the respective state agriculture department portal
- States Covered – All-India, with special enhanced support for North-Eastern states
Objectives of the Scheme
- Bring mechanised farm equipment within reach of small and marginal farmers who cannot afford to own it
- Improve farm power availability in low-mechanisation and remote regions
- Reduce the cost of cultivation and improve timeliness of sowing, harvesting, and other operations
- Create self-employment and rural entrepreneurship opportunities through CHC ownership
- Promote high-value and hi-tech machinery, including drones, through shared-access hubs
Key Features of the Custom Hiring Centre Scheme
- CHCs rent out tractors, rotavators, combine harvesters, paddy transplanters, seed drills, sprayers, threshers, and other implements on an hourly or per-acre basis
- Each CHC typically serves 4–5 surrounding villages and stocks 8–15 types of machinery
- Subsidy for setting up a CHC is generally 40–50% of machinery cost for general applicants, with higher rates for SC/ST farmers, women, and North-Eastern states (up to 100%, capped at ₹1.25 lakh per beneficiary in NER states)
- Farm Machinery Banks (FMBs), a related model, can get up to 80% subsidy on project cost
- Eligible applicants include individual farmers, agriculture graduates, rural entrepreneurs, Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and registered cooperatives; group applications typically need at least 5 registered members
- Small and marginal farmers can also get ₹2,000 per hectare support for accessing mechanised services through CHCs, SHGs, and FPOs, including drone services
- The FARMS (Farm Machinery Solutions) mobile app helps farmers locate nearby CHCs, check machinery availability, and book equipment digitally
- Subsidy is credited directly to the beneficiary's Aadhaar-linked bank account through DBT after verification
Custom Hiring Centre Scheme Benefits to Farmers
- Access to modern, high-value machinery without the burden of upfront ownership cost
- Lower per-hectare cultivation cost, with reported reductions of 15–30% in areas with strong CHC coverage
- Timely completion of critical operations like sowing and harvesting, improving yield and reducing losses
- Machinery access even in remote or low-power-availability regions
- Additional entrepreneurship income for those who set up and operate a CHC
- Reduced dependence on manual or animal labour, cutting production costs
Limitations of the Scheme
- Subsidy caps and percentages vary by state, machinery type, and applicant category, so actual benefit differs across regions
- A CHC generally serves a limited radius of nearby villages, so availability can still be constrained in areas with fewer centres
- Waitlisted applications from a previous financial year are not automatically carried forward; farmers must reapply each cycle
- Applicants who have already availed benefits from another central scheme for the same purpose are usually not eligible again
- Group applications for CHC/FMB setup require a minimum number of registered members, which can be a barrier for very small groups
Documents Required
- Aadhaar Card (mandatory, linked to bank account for DBT)
- Record of Right (RoR) or other land ownership/lease proof
- Bank passbook first page copy
- Passport-size photograph
- GSTN/PAN registration (for rural entrepreneurs or group applicants)
- Caste certificate, where applicable, for SC/ST category benefits
How to Apply for the Custom Hiring Centre Scheme
- Visit the central DBT portal at agrimachinery.nic.in, or your state agriculture department's subsidy portal.
- Register using your Aadhaar number (for individual farmers) or GSTN/PAN (for entrepreneurs and groups).
- Select the CHC or Farm Machinery Bank category and fill in the project details, including machinery type and centre location.
- Upload the required documents: Aadhaar, land records, bank passbook, and photograph.
- Submit the application and note the reference number to track its status on the portal.
- On approval, purchase machinery from SMAM-authorised dealers, upload the purchase bills, and complete physical verification before the subsidy is credited via DBT.
Conclusion
The Custom Hiring Centre Scheme has made mechanisation genuinely reachable for India's small and marginal farmers, who make up the vast majority of the farming community. By turning ownership into a shared, pay-per-use model, CHCs cut cultivation costs, save time during critical farm operations, and open up rural entrepreneurship opportunities. With digital tools like the DBT portal and the FARMS app streamlining access, this scheme continues to push mechanisation into areas that need it most.
Disclaimer: This article is for informational purposes only. Scheme details, interest rates, and subvention amounts are subject to periodic revision by the Government of India, RBI, and NABARD. Farmers are advised to verify the latest terms and eligibility criteria with their bank, NABARD, or official government sources before applying.
