Sri. Abhijeet Laxman Mahadik, 

 Newazi, Sangli dist, Maharashtra



Sri. Bhalarao Ramchandra Dhordira, 

Vasmar, Hingoli dist, Maharashtra



Sri.Kandula Narasi Reddy,

Kurnool, Andhra Pradesh



Agroservice Centre - Farm Machinery



1. Objective :

  • 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.

2. Location & Area of Operations :


The project may be located in rural areas having sizeable number of farmers or area under a taluka/villages adjacent to a big Panchayat head quarters.


3. 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.


4. Project Cost


A. 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/-


B. Recurring Cost


The recurring cost varies from 2.04 (75% utilisation during the first year) to Rs. 2.53 lakh (100% utilisation).


5. Margin (15%) : Rs. 0.98 lakh

6. Bank Loan : Rs. 5.58 lakhs

7. Rate of Interest : 14% p.a.

8. Repayment Period : 10 years (including 1 year's grace)

9. Income : Amount in Rupees


Sr.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 54,000 72,000


Total 3,01,013 4,01,350


10. Economics of the Project :


a) Net Present Worth : Rs. 1.45 lakhs

b) Benefit Cost Ratio : 1.08 : 1

c) Internal Rate of Return : 23%


11. Other Information :


Mechanisation of agricultural operations helps in :

i. Increasing production, productivity and profitability in agriculture by achieving timeliness in farm operations;

ii. Increasing utilisation efficiency of costly inputs (seeds, chemical fertilisers, irrigation water) thus reducing unit cost of produce;

iii. Increasing cropping intensity and additional employment generation at farmers level;

iv. Remove drudgery in farm operations.

v. Employment generation through setting up of agro clinics on farm machinery.

Note :

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


All Rights Reserved - MANAGE, Rajendranagar, Hyderabad

(Best viewed in 1028 x 768 resolution)