Entrepreneurship, Costing, Subsidy Schemes and Field Service Management
Enterprise and service management
This domain tests costing, subsidy application and field service operations for micro irrigation. It expects a technician to prepare a realistic quotation, explain the farmer’s share, and manage installation and after-sales service.
Core rules
- Capital cost includes survey, design, pump/filter/head unit, pipes, emitters, valves, installation and commissioning; operating cost includes energy, water, fertilizer, repairs and labour.
- Compare costs and benefits with payback: net annual benefit = yield gain + input savings − added operating cost.
- Subsidy is usually a percentage of approved cost, subject to eligibility, documents, inspection and scheme norms; never promise approval before sanction.
- Field service needs a work order, material list, schedule, safety check, commissioning report and customer training.
- Keep records of serial numbers, warranty, service visits and spare parts.
Worked example
A drip system costs ₹1,20,000 per ha. A 50% subsidy gives ₹60,000, so the farmer pays ₹60,000. Annual benefit is ₹25,000 from water/fertilizer savings plus ₹15,000 from yield gain = ₹40,000. Simple payback on the farmer’s share = 60,000 ÷ 40,000 = 1.5 years. If maintenance costs ₹5,000/year, net benefit is ₹35,000 and payback is 1.7 years. The reasoning must use the farmer’s actual share, not the full cost.
Traps
Do not quote the subsidy as if it is the total cost; do not ignore recurring costs; do not submit incomplete documents; do not promise a subsidy rate without checking current norms; do not skip commissioning or farmer training.