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Phosphorus is one of the key elements for growth and development of plants. Soils may contain a number of hundred pounds of phosphate in organic and inorganic forms per acre. Still its availability is limited to the plants due to its poor solubility and precipitation. The uses of phosphate solo bilizing microbes (PSM) as fertilizer have added advantage over chemical fertilizer in terms of cost and pollu-tions. Therefore In present studies we are reporting isolation screening and characterization of novel PSM from its natural habitat and its concurrent effect on agricultural crop and environment. The bacteria isolated from the field of capsicum has shown highest P-solubilisation as well as P-fertilizer potential and was further characterized as Bacillus megatertian by 16s rRNA sequencing technique.