Establishment of High Tech Mechanization Service Centers

The project titled “Establishment of Hi-Tech Mechanization Service Centers (HMSCs)” started under the “Khadim-e-Punjab Package” is in line with the Punjab Growth Strategy 2018 under heading “Tackling the Mechanization gap” viz. modern cropping is typically capital intensive and benefits from the use of heavy machinery throughout the cropping cycle.
However, Punjab is currently deficient in the use of such machines, owing to inter alia:

  • High costs and weak supply of agricultural implements, with locally manufactured machinery often having poor quality.
  • Weak demand for machinery linked to the lack of subsidies
  • Small farm sizes for the majority of farmers limiting the cost effectiveness of heavy machinery.

It envisages establishing of 72 Nos. HMSCs in Punjab (two in each district) with collaboration of private sector on cost sharing basis @ 50:50 offering state of the Art Hi-Tech Machinery to the farmers on affordable rental charges.

Project Objectives

The overall goal of the project is to enhance crop productivity through introduction, promotion and provision of economical & efficient farm mechanization services by establishing HMSCs under private sector at district level. Following are the objectives of the project;

  • Establishment of high-tech farm mechanization service centers      
  • Provision of state of the art farm machinery and equipment on rental basis to the farmers through HMSCs
  • Overcome farm labour shortage
  • Enhanced crop yield and farmers’ profitability
  • Introduce and promote precision farming methods and associated machinery and equipment


Project Design

The Service Providers (SPs) will establish HMSCs premises in their designated areas and import approved Hi-Tech Machinery for rental purposes to the farmers. The SPs will bear all the cost of developing HMSCs premises and its operational cost in addition to their 50% share in hi-tech machinery & equipment. Remaining 50% share in hi-tech machinery & equipment will be borne by GoPb. The SPs will be bound to operate HMSCs for at least four years after signing of contract. During this period, they will not be entitled to sell or rent out the HMSC in order to achieve the essence of the project. The project will be implemented, monitored and supervised by the Project Implementation Supervision Consultants (PISCs) till the completion of the project.