Updated: 4 October 2026
In Assam, the tractor subsidy the state has published is a group scheme, not an individual one. Under the Assam Tractor Scheme of CMSGUY, the government pays 70% of the price of a tractor unit, up to ₹5.5 lakh, to a group of 8 to 10 farmers from one village. A single farmer cannot apply under it.
The rules on this page come from the April 2018 revised draft guidelines. The department's scheme page gives no new application dates, so confirm with the District Agriculture Officer that a round is open before forming a group. National rules are in the national tractor subsidy overview.
The CMSGUY tractor scheme in numbers
| Item | Rule |
|---|---|
| Scheme | Assam Tractor Scheme under the Chief Minister Samagra Gramya Unnayan Yojana (CMSGUY) |
| Who applies | A group of 8 to 10 adult farmers of the same village, with a common bank account and not more than one member from a family |
| Subsidy | 70% of the price of the tractor, its accessories and the implements the group chooses, up to ₹5.5 lakh |
| Price used | The lowest price in the government notified list for that HP range, and the lowest approved price for each implement |
| Bank loan | 20% of the cost |
| Group share | 10% of the cost |
| Tractor | One tractor of 35 to 50 PTO HP with standard accessories |
| Guideline year | Revised draft guidelines dated April 2018 |
The aim is one tractor in every revenue village, with about 10,109 tractors in the first phase and about 26,000 villages in the full plan.
What the tractor unit contains
- Standard accessories (one set): trailering hook, stabilizer assembly, hitch assembly, hood and tool kit.
- Matching implements, all optional: one rotavator, one disc harrow, one cultivator, one trailer and one pair of cage wheels. The group may take all, any or none, and the 70% still applies to the whole unit up to the ₹5.5 lakh ceiling.
- Make and model: chosen by the group from the list notified by the state government. The lower of the approved rate and the negotiated rate is used.
Who selects the group and how
- The group applies jointly on the application form, with the signature of every member and, preferably, land and crop details.
- The District Agriculture Officer (DAO) places the applications before the District Level Committee (DLC).
- The DLC is chaired by the Deputy Commissioner. Its members include the Circle Officers, the Executive Engineer (Agriculture), the Lead Bank Manager, the NABARD District Development Manager, a KVK representative and two persons nominated by the Mega Mission Society.
- The DLC picks one eligible group in each village. A group that wants a bank loan must have at least 10% of the unit price deposited in its account. A group that does not want a loan must have its whole share deposited.
- The decision of the DLC binds the applicants, and the Member Secretary notifies the names.
Selection is by committee and by the deposit rule. The guidelines name no lottery and no first come first served queue.
After selection
With a bank loan: the Member Secretary sends the proposal to the bank branch the group named. The group pays its 10% as margin money. The bank places the order, and the DAO releases the subsidy to the bank. After an Executive Engineer (Agriculture) verifies the tractor physically, the bank pays the vendor in full. The tractor is registered in the group's name but hypothecated to the bank for at least 5 years. The subsidy stays with the bank as back-ended subsidy and is passed to the group when that period ends. The bank may not charge interest on the part of the loan equal to the subsidy.
Without a loan: the group gives the dealer a bank demand draft for its share. The dealer supplies the tractor after registration and insurance in the group's name. The Executive Engineer verifies it with photographs showing the tractor, the implements and at least two members with the group leader. The Director of Agriculture then pays the subsidy to the dealer.
The group must rent the tractor out to village farmers for at least 5 years at a rate the DLC may fix. All items are geo-tagged, and a log book and cultivation register are checked.
Other subsidy routes under central rules
The central Sub-Mission on Agricultural Mechanization (SMAM) cost norms of 2018-19 treat NE State beneficiaries in the higher 50% column. The table shows selected rows from those norms.
| Machine | Subsidy for SC, ST, small and marginal farmers, women and NE State beneficiaries | Subsidy for others |
|---|---|---|
| Tractor 2WD, 8 to 20 PTO HP | 50%, up to ₹2.00 lakh | 40%, up to ₹1.60 lakh |
| Tractor 2WD, above 20 to 40 PTO HP | 50%, up to ₹2.50 lakh | 40%, up to ₹2.00 lakh |
| Tractor 2WD, above 40 to 70 PTO HP | 50%, up to ₹4.25 lakh | 40%, up to ₹3.40 lakh |
| Power tiller, 8 BHP and above | 50%, up to ₹0.85 lakh | 40%, up to ₹0.70 lakh |
The Assam Directorate of Agriculture SMAM page lists village level farm machinery banks, custom hiring centres and high tech hubs, with documents from 2016-17. It does not show tractor rates for individuals, so ask the DAO whether any individual tractor target exists this year. These norms date from 2018-19, so treat the ceilings as a guide.
Farm machinery banks get 80% of project cost, up to ₹10 lakh per village, under the same 2018-19 guidelines. This suits a village group that wants shared machines instead of one tractor. Where the DBT portal is used, registration asks for Aadhaar, record of rights, a photograph, a bank passbook and a caste certificate where relevant.
If no subsidy round is open
- Price the tractor on the on-road price tool and plan the loan with the EMI calculator and the tractor loan page.
- Compare models on the tractor prices page, find a seller on the dealers page and look at implements that suit a smaller budget.
- Check other schemes on the subsidy finder.
Where to ask
- The scheme page gives the Agriculture Department secretariat email, [email protected].
- Applications go to the District Agriculture Officer of your district. No helpline number is published on the scheme page.
Sources
- Assam Agriculture Department, Assam Tractor Scheme under CMSGUY (scheme page)
- Assam Government, Revised draft Guidelines for Distribution of Tractor Unit under CMSGUY, April 2018 (PDF)
- Ministry of Agriculture, Sub-Mission on Agricultural Mechanization guidelines, revised 2018-19 (cost norms, Annexure II)
- Ministry of Agriculture, FAQ of the farm mechanization DBT portal, 2019 (PDF)
- Assam Directorate of Agriculture, SMAM scheme page