| Objectives |
- To enable Small Farmers, who cannot afford bullocks or other farm machinery, to hire services of Agro-service Centre for farm operations.
- To make available various farm machineries for custom hire at one place - single window.
- To make available services of Agro-Service Centre (ASC) for repair and maintenance of farm machinery owned by farmers.
|
| Location & Area of Operations |
- The project may be located in rural areas having sizeable number of farmers or area under a village adjacent to a Block headquarter.
|
| Project components |
- Tractor (35 HP) with accessories like Trailer, MB Plough, cultivator, cage wheel, disc harrow, seed drill, etc.
- Power Tiller (13 HP).
- Pump set with accessories (5HP).
- Power Thresher, Winnower, Self propelled Reaper, Sprayer.
- Tools, work shed, Insurance.
|
| Sample Model Project Cost |
- Capital Cost
-
| Tractor & accessories : |
Rs. 3,55,500/- |
| Power Tiller : |
Rs. 1,00,000/- |
| Pump set & accessories : |
Rs. 20,000/- |
| Power Thresher & others : |
Rs. 1,80,900/- |
| Total : |
Rs. 6,56,400/- |
- Recurring Cost
-
- The recurring cost varies from 2.04 (75% utilisation during the first year) to Rs. 2.53 lakh (100% utilisation).
|
| Margin (15%) |
|
| Bank Loan |
|
| Rate of Interest |
|
| Repayment Period |
- 10 years (including 1 year's grace)
|
| Income |
- Amount in Rupees
-
| Sl. No |
Item |
Income on 75% utilisation |
Income on 100% utilisation |
| 1. |
Tractor |
135,000 |
180,000 |
| 2. |
Power Tiller |
46,875 |
62,500 |
| 3. |
Pumpset |
26,250 |
35,000 |
| 4. |
Power Thresher |
3,375 |
4,500 |
| 5. |
Winnower |
1,688 |
2,250 |
| 6. |
Reaper |
30,000 |
40,000 |
| 7. |
Sprayers |
3,825 |
5,100 |
| 8. |
Repairing of Machinery |
54,000 |
72,000 |
| Total |
3,01,013 |
4,01,350 |
|
| Economics of the Project |
- Net Present Worth : Rs. 1.45 lakhs.
- Benefit Cost Ratio : 1.08 : 1.
- Internal Rate of Return : 23%.
|
| Other Information |
- Mechanisation of agricultural operations helps in :
-
- Increasing production, productivity and profitability in agriculture by achieving timeliness in farm operations;
- Increasing utilisation efficiency of costly inputs (seeds, chemical fertilisers, irrigation water) thus reducing unit cost of produce;
- Increasing cropping intensity and additional employment generation at farmers level.
- Remove drudgery in farm operations.
- Employment generation through setting up of agro clinics on farm machinery.
|
| Notes |
- Physical components can be modified depending upon the entrepreneurial assessment.
- Margin of 15% is assumed, but the actual margin will be as per the discretion of the banks.
- The rate of Interest will be as per banks' discretion though here it has been taken at 14%.
- Similarly, the other economic / financial parameters such as the repayment period, DSCR, IRR, etc., may also vary depending upon the margin, interest rate, etc., taken into account by the bank.
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Agri. Machineries Service Center