Is there a subsidy for electric tractors in India?

The SMAM guidelines (revised 2020-21) set tractor assistance by PTO horsepower and by 2WD or 4WD. The cost-norm table does not list electric tractors as a separate line. Whatever the fuel, eligibility depends on the tractor being tested: only equipment tested by an FMTTI or a designated DAC&FW institute is eligible for subsidy under Government assisted programmes. Confirm the current scheme and rates with your State agriculture department.

Does an electric tractor need an FMTTI test report for subsidy?

Yes. Under SMAM, testing at an FMTTI or designated DAC&FW testing centre is mandatory before supply under Government assisted programmes for machinery costing more than ₹35,000, and only tested equipment is eligible for subsidy in all states. An electric tractor is well above that cost line.

How much is the SMAM tractor subsidy?

In the SMAM guidelines revised for 2020-21, the maximum assistance runs from ₹1.60 lakh (2WD, 8–20 PTO HP, other beneficiaries, 40%) to ₹5.00 lakh (4WD, above 40–70 PTO HP, SC/ST, small and marginal, women and NE-state beneficiaries, 50%). Cost norms are revised from time to time, so check the figures in force with your State before quoting them to a buyer.

Is an FMTTI test report valid for subsidy in every state?

Yes. The SMAM guidelines state that test reports released by the designated institutions are valid across the country and are accepted by all States and UTs for financial assistance and other Government schemes that require test reports.

Does AgPro arrange subsidies?

No. Subsidies are sanctioned by government departments under their own schemes. AgPro helps manufacturers get the test report and documentation that make a machine eligible, and coordinates with the testing institute. The physical testing is always done by the institute's own engineers.

Subsidy & Procurement

Electric Tractor Subsidy in India: Why the Test Report Comes First

October 1, 20268 min read— Farm Machine Testing Desk

"Is there a subsidy on electric tractors?" is one of the questions we hear most often, from farmers, dealers and manufacturers alike. The honest answer starts somewhere else: a tractor can't be supplied with a scheme subsidy until it has been tested. For an electric tractor maker, the test report is the first step towards subsidy eligibility.

A small red tractor with a tillage implement working a ploughed field with palm trees behind — Tractor subsidy under central schemes is set by PTO horsepower, not by fuel type. Photo: Ganesh Mohan T, CC BY-SA 4.0, via Wikimedia Commons (cropped). Shown for illustration only; not an endorsement of any brand.

Rule one: no test report, no subsidy

The SMAM guidelines are explicit. In the note to the cost-norm annexure:^[1]

All tested equipments from either FMTTIs or designated Institute from DAC are only eligible for subsidy in all states under Government assisted programme.

The testing section adds that testing of agricultural implements, tools and machinery costing more than ₹35,000 at the FMTTIs or designated DAC&FW testing centres is mandatory before they are supplied under Government assisted programmes.^[1]

An electric tractor clears that cost threshold many times over. So the question is not whether you need a report, but how soon you can get one. Our SMAM eligibility guide covers the ₹35,000 rule in detail.

How SMAM sets tractor assistance

SMAM's cost norms set the maximum assistance per tractor by PTO horsepower and 2WD or 4WD, with a higher rate for priority beneficiaries. This is the table in the guidelines revised for 2020-21:^[1]

Tractor	SC, ST, small & marginal, women, NE states (50%)	Other beneficiaries (40%)
2WD, 08–20 PTO HP	₹2.00 lakh	₹1.60 lakh
4WD, 08–20 PTO HP	₹2.25 lakh	₹1.80 lakh
2WD, above 20–40 PTO HP	₹2.50 lakh	₹2.00 lakh
4WD, above 20–40 PTO HP	₹3.00 lakh	₹2.40 lakh
2WD, above 40–70 PTO HP	₹4.25 lakh	₹3.40 lakh
4WD, above 40–70 PTO HP	₹5.00 lakh	₹4.00 lakh

Maximum permissible subsidy per machine per beneficiary, SMAM guidelines revised 2020-21, Annexure II(c). Cost norms are revised periodically; confirm the figures in force with your State agriculture department.

Two things stand out for electric tractors.

The bands don't depend on fuel. The table is organised by PTO HP and drive type and has no separate line for electric tractors. We would still confirm with the State implementing the scheme how it treats an electric model, because States run their own approved lists and portals.

PTO horsepower is measured in the test. PTO power is one of the headline measurements in IS 19262:2025, the electric tractor test code.^[2] An independently measured PTO figure is the most reliable way to show which band a model falls in, so declare your PTO rating carefully. The IS 19262 explainer covers the measurement.

From test report to the subsidy list

There is no separate application to "get on the list". A machine reaches it through testing:

Apply for testing on the Agri-Machinery Portal. For tractors this means CFMTTI Budni.
The test is completed and the Final Test Report is released after the draft-comment stage.
The institute publishes it. Testing institutions publish their list of test reports quarterly and forward it to DAC&FW for the Department's website.^[1]
States use it. Reports from the designated institutions are valid across the country and accepted by all States and UTs for financial assistance.^[1] For custom hiring centres, the guidelines also say procurement comes from approved suppliers and only tested equipment qualifies for assistance.^[1]

A tractor preparing a harvested paddy field in Punjab for the next wheat crop — A tractor preparing a field in Punjab. Subsidy reaches farmers through State schemes, and the test report is what makes a model eligible. Photo: CIAT, CC BY-SA 2.0, via Wikimedia Commons (cropped). Shown for illustration only.

Timing: start testing before launch

Manufacturers often discover the subsidy requirement only after launch, when the first dealer asks about it. Starting earlier is far better, because tractor testing has a time limit of 75 working days once it begins, plus the time to prepare and file the application.

A realistic sequence for an electric tractor launch:

Freeze the specification you will declare, including the PTO HP rating.
Apply for a Commercial Test if the machine is production-ready, or a Confidential Test if you're still validating. Our post on India's first electric tractor test shows how a Confidential Test was later converted.
Plan five units for the test sample. Tractors are drawn at 5 units.
Track the report through to the published list before promising subsidy-backed prices to dealers.
Plan for renewal. A tractor's first commercial test report is valid for 3 years, and each Batch Test report after that for 5 years. See the validity guide.

Where we come in

Getting an electric tractor tested, reported and onto the published list, so that States can fund it, is what subsidy and procurement support covers. AgPro does not grant subsidies and does not test machines: State departments sanction the assistance, and CFMTTI Budni's engineers run the test. We make sure the paperwork connecting the two is in order.

For the full testing route, start with our electric tractor testing guide.

Sources

Guidelines of Sub-Mission on Agricultural Mechanization (SMAM), revised 2020-21 — Annexure II(c) cost norms and testing provisions — Department of Agriculture & Farmers Welfare
Union Minister Shri Pralhad Joshi released Indian Standard for Electric Agricultural Tractor (IS 19262:2025) — Press Information Bureau, Ministry of Consumer Affairs, Food & Public Distribution, December 28, 2025
Farm Mechanization and Technology — official portal — Department of Agriculture & Farmers Welfare
Digital Platform for Farm Mechanization and Technology (Agri-Machinery Portal) — Department of Agriculture & Farmers Welfare

Frequently asked questions

: The SMAM guidelines (revised 2020-21) set tractor assistance by PTO horsepower and by 2WD or 4WD. The cost-norm table does not list electric tractors as a separate line. Whatever the fuel, eligibility depends on the tractor being tested: only equipment tested by an FMTTI or a designated DAC&FW institute is eligible for subsidy under Government assisted programmes. Confirm the current scheme and rates with your State agriculture department.
: Yes. Under SMAM, testing at an FMTTI or designated DAC&FW testing centre is mandatory before supply under Government assisted programmes for machinery costing more than ₹35,000, and only tested equipment is eligible for subsidy in all states. An electric tractor is well above that cost line.
: In the SMAM guidelines revised for 2020-21, the maximum assistance runs from ₹1.60 lakh (2WD, 8–20 PTO HP, other beneficiaries, 40%) to ₹5.00 lakh (4WD, above 40–70 PTO HP, SC/ST, small and marginal, women and NE-state beneficiaries, 50%). Cost norms are revised from time to time, so check the figures in force with your State before quoting them to a buyer.
: Yes. The SMAM guidelines state that test reports released by the designated institutions are valid across the country and are accepted by all States and UTs for financial assistance and other Government schemes that require test reports.
: No. Subsidies are sanctioned by government departments under their own schemes. AgPro helps manufacturers get the test report and documentation that make a machine eligible, and coordinates with the testing institute. The physical testing is always done by the institute's own engineers.