Can an FPO or SHG get a SMAM subsidy to run a Farm Machinery Bank?

Yes. SMAM specifically encourages FPOs, SHGs, cooperatives, registered farmer groups and panchayats to set up Custom Hiring Centres and Farm Machinery Banks so members and nearby farmers can hire machines instead of buying them. The grant is project-based, commonly around 40 percent of the machinery cost for the standard category, and some states or special schemes give a higher share to groups, especially for residue management or women SHGs. The group submits a project proposal listing the machines, costs and location on the agrimachinery or state portal, buys the approved machines from empanelled dealers after sanction, gets them inspected, and receives subsidy by DBT to the group's account. Running it well needs a booking system and rental records, and registering on the CHC app helps farmers find your machines. Confirm the exact grant share and project ceiling for FPOs and SHGs on your state agriculture portal, since these differ by state.