Minor Irrigation · Kerala

Diesel Subsidy in Kerala

Diesel

NABARD Unit Cost for Diesel in Kerala

Government-approved benchmark amount for minor irrigation financing

NABARD Unit Cost₹25,000
StateKerala
CategoryMinor Irrigation
Sub-CategoryDiesel engine Pumpset
Specification3 HP Including accessories

Diesel — 3 HP Including accessories

Eligibility for Diesel Subsidy in Kerala

Who can apply

  • Individual farmers with land records (7/12, patta, or registered lease deed) in Kerala
  • Farmer Producer Organisations (FPOs) and Self-Help Groups (SHGs)
  • Agri-entrepreneurs and cooperatives for commercial-scale investments
  • SC/ST farmers and women farmers (eligible for enhanced subsidy component of 5–10% additional)

Specification note

This unit cost applies specifically to: 3 HP Including accessories. If your investment differs in scale or configuration, ask your bank to identify the nearest applicable NABARD benchmark.

How to Apply for Diesel Subsidy in Kerala

Step-by-step process

  1. Prepare a Detailed Project Report — Use the NABARD unit cost of ₹25,000 as the benchmark for a 3 HP Including accessories investment.
  2. Visit your bank in Kerala — Bring Aadhaar, land records (7/12 or patta), and the DPR to a nationalised bank, RRB, or PACS branch.
  3. Scheme linkage — The bank will link your application to PM KUSUM or PMKSY.
  4. Technical verification — A department officer inspects the asset after installation and submits a verification report to the sanctioning authority.
  5. Subsidy credit to loan account — The capital subsidy is deposited directly into your loan account, reducing the outstanding principal. Total processing time: 30–60 days.

Relevant central schemes:

Diesel Subsidy — State-wise Comparison

NABARD unit costs for Diesel across 2 states. Amounts reflect local input costs and state-level additions.

Diesel NABARD unit cost across Indian states
StateSubsidy AmountDetails
Keralacurrent₹28,500View →
Keralacurrent₹25,000View →

More Minor Irrigation Subsidies in Kerala

View all Minor Irrigation activities in Kerala →

More Subsidy Categories in Kerala

Frequently Asked Questions

What is the NABARD subsidy amount for Diesel in Kerala?

The NABARD unit cost for Diesel in Kerala is ₹25,000 (specification: 3 HP Including accessories). This is the benchmark amount banks use when sanctioning a term loan for this activity. The actual subsidy you receive depends on the scheme — typically 25–50% of the unit cost.

What does "3 HP Including accessories" mean for Diesel?

The specification "3 HP Including accessories" defines the exact scale or parameters of the investment — such as area in hectares, capacity in litres per day, number of animals, or structural dimensions. NABARD unit costs are tied to this specification; a different scale may have a different unit cost. If your project differs, ask your bank to use the nearest applicable NABARD benchmark.

How do I apply for the Diesel subsidy in Kerala?

Step 1: Prepare a DPR for Diesel using the NABARD unit cost of ₹25,000 as the benchmark. Step 2: Visit a nationalised bank or RRB in Kerala with land records, Aadhaar, and the DPR. Step 3: The bank appraises and routes the subsidy claim through the Minor Irrigation department. Step 4: After physical verification, the subsidy is deposited into your loan account. Total processing time is typically 30–60 days.

Which government scheme covers Diesel in Kerala?

Diesel falls under the Minor Irrigation category. Relevant central schemes include PM-KUSUM (solar pumps) and PMKSY (irrigation). Check the Apply section below for the specific portal and nodal department in Kerala.

Which state gives the highest subsidy for Diesel?

Kerala offers ₹25,000 for Diesel, which is among the higher rates across Indian states. The compare table below shows the exact amount in each state where NABARD has published a unit cost for this activity.

What is the loan repayment period for Diesel financing in Kerala?

NABARD-linked term loans for minor irrigation investments like Diesel typically have a repayment period of 5–9 years (including a moratorium of 1–2 years). The moratorium aligns with the gestation period of the investment — for example, a fruit orchard may take 3 years to yield income, so repayment begins after that. Exact tenure depends on your bank and the specific scheme.