Introduction
Farmers searching for CM Punjab Green Tractor Scheme Apply Online 2025, subsidy details, eligibility criteria, or the last date can find everything explained in this complete guide.
What is the CM Punjab Green Tractor Scheme Phase 2 (2025)?
The CM Punjab Green Tractor Scheme was launched to support small and marginal farmers by offering tractors at highly subsidized rates. Phase 1 began in 2023, while Phase 2 restarted in March 2025. The scheme aims to promote sustainable farming, reduce carbon emissions, and distribute 10,000+ tractors by 2026. It is also linked to Punjab’s Net Zero 2047 Mission, focusing on sustainable agriculture and doubling farmers’ income.
| Feature | Phase 1 | Phase 2 |
|---|---|---|
| Number of Tractors | 10,000 tractors | 10,000 tractors |
| Tractor Horsepower Range | Mostly above 75 HP (75 – 125 HP) | Two categories: 50-65 HP and 75+ HP |
| Subsidy Amount | Rs. 1,000,000 (10 lakh) per tractor | Rs. 500,000 for 50-65 HP, Rs. 1,000,000 for 75+ HP |
| Tractor Types | Both local and imported models | Locally manufactured 50-65 HP and local/imported 75+ HP |
| Land Ownership Eligibility | Minimum 7 acres of land | 1 to 50 acres of land |
| Application Start Date | Earlier phase, completed before Phase 2 | Applications started August 13, 2025 |
| Application Deadline | Closed before Phase 2 | August 31, 2025 (extended to October 31, 2025) |
| Target Group | Larger farmers with more land | Small to medium scale farmers, including those with smaller land holdings |
| Selection Method | Transparent computerized lottery | Transparent computerized lottery |
| Benefits/Foci | Provide large tractors to mechanize farming | Focus on climate-friendly, fuel-efficient tractors with broader access |
In summary, Phase 1 focused on distributing larger tractors (75 HP and above) mainly to farmers owning at least 7 acres, with a subsidy of Rs. 1 million per tractor. Phase 2 expands to include smaller tractors (50 to 65 HP) with a Rs. 500,000 subsidy, alongside the larger tractors with the same Rs. 1 million subsidy, and lowers the land eligibility to 1 acre, thus targeting smaller farmers as well.
Overview of the Punjab Green Tractor Scheme 2025
| Feature | Details |
|---|---|
| Total Tractors in 2025 | 20,000 (phased, 10,000 small 50–65 HP and 10,000 large 75–125 HP) |
| Subsidy (Small Tractors, 50–65 HP) | 70% (up to PKR 1 million) |
| Subsidy (Large Tractors, 75–125 HP) | 50% (up to PKR 1 million) |
| Free Tractors | 1,000 for wheat growers (25–50 acres) |
| Eligibility – Landholding | 1–50 acres (sometimes 6–50 acres, as per latest policy) |
| Age Requirement | 21–65 years |
| Domicile | Punjab only |
| Down Payment | As low as 20% of tractor price |
| Selection Criteria | Transparent digital balloting |
| Installment Facility | Yes, via Punjab Kissan Bank/Bank of Punjab (loans up to PKR 300,000/season) |
| Application | Online at gts.punjab.gov.pk or local agriculture offices |
| Other Support | Kissan Card integration, extra subsidies on seeds/fertilizer/solar wells |
Subsidy & Loan Structure – 2025 Update
Here is an updated comparison of the subsidy and loan structure for the Punjab Green Tractor Scheme 2025 (Phase 2) with Phase 1, along with subsidy rates and loan repayment terms:
| Aspect | Phase 1 (Earlier Phase) | Phase 2 (2025 Update) |
|---|---|---|
| Subsidy Amount | Rs. 1,000,000 (10 lakh) per tractor for tractors above 75 HP | For small tractors (50-65 HP): Up to 70% subsidy (up to Rs. 1 million) For large tractors (75-125 HP): Up to 50% subsidy (up to Rs. 1 million) |
| Eligibility Land Size | Minimum 7 acres owned | Minimum 7 acres owned |
| Loan Amount (Approx.) | Remaining balance after subsidy to be financed through Bank loans | Loans available through Bank of Punjab with subsidized interest rates |
| Loan Interest Rate | Market prevailing rates | 4% per annum for general farmers; 3% per annum for SC/ST/women farmers |
| Loan Repayment Terms | Usually 3 to 5 years installment plans | Flexible installment plans with monitoring; loan repayment typically over 3-5 years |
| Special Incentives | No specific mention | 1,000 free tractors for wheat growers owning 25-50 acres |
| Application Process | Lottery-based selection | Transparent digital lottery-based selection |
| Subsidy Percentage | Approx. 50-60% subsidy for big tractors | Small tractors get 70% subsidy; large tractors get 50% subsidy |
| Target Group | Medium to large scale farmers with larger land holdings | Small to medium-scale farmers; also women and SC/ST farmers receive extra benefits |
Summary:
- Phase 2 offers higher subsidy percentages (up to 70%) for smaller tractors (50-65 HP) along with loans at subsidized interest rates.
- Loans are provided with annual interest rates of 4% for general farmers and reduced by 3% for marginalized groups, including women and SC/ST.
- Repayment terms are flexible and usually span 3 to 5 years.
- Phase 1 focused more on farmers with bigger land (7 acres or more) and tractors above 75 HP with a fixed Rs. 1 million subsidy.
- Phase 2 broadens eligibility and incorporates additional benefits like free tractors for certain wheat growers and enhanced access to loans with favorable terms.
Eligibility Criteria
Eligibility Criteria (Who is Eligible)
- Must be a permanent resident of Punjab province.
- Must hold a valid CNIC (Computerized National Identity Card).
- Must own 7 acres of agricultural land.
- The applicant must be registered with the Punjab Agriculture Department.
- Age of the applicant must be between 21 and 65 years.
- The applicant should not have received a subsidized tractor in Phase 1 of this scheme or any other government tractor subsidy program.
- Must provide valid documents like the Kisan Card Punjab, land ownership proof, and CNIC.
Who is NOT Eligible
- Non-residents of Punjab.
- Those owning less than 1 acre or more than 50 acres of agricultural land.
- Applicants who have already received a subsidized tractor in Phase 1 or from any similar government scheme.
- Those without a valid CNIC or land ownership proof.
- Farmers who do not comply with age or registration requirements.
- Persons with any disqualifying factors under the Punjab Agriculture Department’s rules.
Required Documents for Application
- Valid CNIC (Computerized National Identity Card)
- Proof of land ownership or tenancy (such as Fard, registry, or lease agreement in the applicant’s name)
- Recent passport-size photograph
- Active bank account details (for subsidy disbursement)
- Kisan Card Punjab (if available)
- Utility bills or other documents for residence verification
- For tenant farmers, a No Objection Certificate (NOC) from the landowner
- Optional: documents such as fertilizer or pesticide purchase receipts as additional proof of farming activity
- Caste or disability certificate if applicable (for special categories)
Step-by-Step: How to Apply for the Punjab Green Tractor Scheme 2025
Review Eligibility and Gather Documents
- Ensure you meet the eligibility criteria: Punjab resident, valid CNIC, own 1-50 acres of land, etc.
- Collect required documents: CNIC, land proof, Kisan Card, bank details, photographs, etc.
Choose Application Mode
- Online application is preferred and more convenient.
- Offline application is also possible through nearby Agriculture Department offices or facilitation centers.
Online Application Process
- Visit the official Punjab Green Tractor Scheme portal: gts.punjab.gov.pk
- Create an account using your CNIC and mobile phone number.
- Fill in all required details accurately: Name, CNIC, Mobile number, address, and tractor choice (make and model).
- Upload scanned copies/photos of all required documents.
- Agree to the terms and conditions.
- Submit your application form.
Offline Application Process
- Visit your nearest Tehsil Agriculture Office or facilitation center.
- Obtain the application form and fill it out carefully with complete information.
- Attach all necessary documents.
- Submit the completed application form before the deadline.
Application Confirmation and Verification
- After submission, you will receive a confirmation message acknowledging receipt.
- The Agriculture Department will verify your information, which may take some time.
Waiting for Lottery Results
- All applications are processed through a transparent computerized lottery system.
- The lottery will select eligible farmers for tractor subsidies.
Notification of Selection
- Selected applicants will be notified via SMS or official communication channels.
- The list of beneficiaries will also be published on the official scheme website.
Tractor Purchase and Subsidy Disbursement
- Selected farmers can then proceed to purchase the tractor as per procedure.
- Subsidy and loan disbursement will follow, usually through the Bank of Punjab or other partner banks.
Loan and Payment Terms
- Subsidized tractors may be purchased with easy loan repayment plans at low interest rates (3-4% per annum).
- Repayment terms typically range from 3 to 5 years.
Important Dates
- Application opens early August 2025.
- Deadline is October 31, 2025 (may be subject to extension).
Important Dates to Remember
- Application Start Date: August 13, 2025
- Application Deadline: August 31, 2025 (Note: Some sources mention an extension up to October 31, 2025)
- Selection Through Lottery: Balloting starts in September 2025
- Notification of Selected Farmers: Within 30 days after the lottery
- Tractor Distribution Timeline: Selected farmers are expected to receive their tractors within 60 days of notification, with the entire distribution expected to be completed by March 2026
Tractor Specifications under Punjab Green Tractor Scheme Phase 2 (2025)
Tractor Categories
- Small tractors: 50–65 HP
- Large tractors: 75–125 HP
Major Brands & Models
- Massey Ferguson: MF 235 (50 HP), MF 260 (60 HP), MF 375 (75 HP), MF 385 (85 HP)
- New Holland: NH-480S (55 HP), NH-640 (75 HP), NH-850 (85 HP)
- Other local/imported models meeting efficiency and eco-standards
Subsidy Rates
- Up to Rs. 500,000 for small tractors
- Up to Rs. 1,000,000 for large tractors
Key Features
- Modern, fuel-efficient, eco-friendly engines
- 2WD and 4WD options
- Turbocharged diesel engines in select models
- Lift-O-Matic and other advanced controls
Price Range (after subsidy)
- Small tractors: Rs. 1.8M – 2.8M
- Large tractors: Rs. 2.6M – 4.5M+
Purpose & Use
Designed for plowing, sowing, irrigation, transport, and other mechanized farm operations.
Key Benefits and Support for Farmers
- Substantial Financial Subsidy: Farmers can receive up to 70% subsidy on small tractors (50-65 HP) and 50% on larger tractors (75+ HP), greatly reducing the purchase cost.
- Access to Modern, Efficient Tractors: The scheme provides reliable, fuel-efficient, and eco-friendly tractors, helping farmers modernize and improve productivity.
- Support for Small and Medium Farmers: Expanded eligibility allows farmers with 1 to 50 acres of land to benefit, empowering a larger segment.
- Free Tractors for Wheat Growers: A special lottery offers 1,000 free tractors to wheat farmers owning 25-50 acres to drive wheat production and reduce costs.
- Transparent and Fair Selection: A computerized, digital lottery system ensures equal opportunity to all eligible farmers, fostering trust and transparency.
- Loan and Financing Support: Subsidized loans with low-interest rates (3-4% annually) and flexible repayment terms assist farmers in managing tractor financing.
- Regional Equity in Distribution: Tractors are distributed across districts equitably to ensure broad outreach and support rural economies.
- Agricultural Modernization: The scheme promotes mechanization that reduces manual labor, increases crop production, and advances Punjab’s agricultural sector towards sustainability and higher efficiency.
- Collaboration for Future Growth: Partnerships with organizations like USAID aim to introduce green energy, renewable technologies, and climate-smart farming practices.
- Economic and Social Empowerment: The scheme supports women, marginalized groups, and youth skill development through additional initiatives connected to the agricultural modernization goals.
Challenges and Concerns with the Tractor Scheme
Past Issues Faced by Farmers
Phase 1 mainly benefited medium and large farmers with 7+ acres, leaving small landholders behind. Farmers also reported transparency issues in the selection process, delays in loan and subsidy disbursements, and limited tractor options focused mostly on bigger models.
Transparency Concerns
Manual processes and unclear lottery systems raised doubts about fairness and potential fraud.
Challenges Fixed in Phase 2
Phase 2 introduces full digital verification and lottery through Kisan Card and NADRA, cutting paperwork and fraud risk. Land eligibility is reduced to 1 acre, making the scheme accessible to small and marginal farmers. Smaller tractors (50–65 HP) are now subsidized, applications are processed online for faster approvals, and loans carry lower interest rates (3–4%) with timely subsidy disbursement. Special quotas for women, SC/ST farmers, and youth ensure inclusivity, while tractors are distributed fairly across districts.
Improvements in Loan/Subsidy System
Loans through Bank of Punjab now come at 3% annual interest with flexible 3–5 year repayment. Digital subsidy linkage reduces waiting times and speeds up tractor delivery.
Easier Access for Small Farmers
With just 1 acre eligibility and a 70% subsidy on smaller tractors, small-scale farmers can join easily. The online process minimizes travel and delays, while support centers help those less familiar with digital systems.
Impact of Punjab Green Tractor Scheme 2025
The Punjab Green Tractor Scheme 2025 is transforming agriculture by driving modernization and agritech adoption.
- Mechanization Boost: Affordable subsidized tractors cut manual labor, expand cultivation, and increase yields.
- Agritech Adoption: Promotes precision farming with modern machinery for better sowing, irrigation, and harvesting.
- Improved Productivity: Faster, timely operations lead to healthier crops and higher output.
- Sustainability: Eco-friendly, fuel-efficient tractors support climate-smart farming and reduce carbon footprint.
- Financial Empowerment: Subsidies and low-interest loans make technology affordable for small and medium farmers.
- Transparency & Digitalization: Online applications and digital lottery ensure fairness and quick access.
- Future Partnerships: Collaboration with USAID and others brings renewable energy and green tech integration.
- Youth & Women Empowerment: Training and employment in agritech open opportunities for rural youth and women.
- Service Expansion: Rental and shared-use models increase access for smallholders.
Overall: The scheme is a game-changer—boosting mechanization, productivity, and sustainability while improving farmers’ income and livelihoods.