Context: 

To formalize and support the Indian Fishery Sector, recently the Union Cabinet approved the PM MKSSY (Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana).

• Further, the Fisheries Infrastructure Development Fund (FIDF) extension for another 3 years up to 2025-26 was approved.

PM MKSSY Scheme: Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana

• PM MKSSY is a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada Yojana.
• Tenure: FY 2023-24 to FY 2026-27 in all States/Union Territories.
• Budgetary Outlay: Rs.6,000 crore consisting of 50% public finance including the World Bank and the AFD external financing, and rest 50% being the anticipated investment from the beneficiaries/private sector leverage.
• Intended Beneficiaries of PM MKSSY: Aquaculture Farmers, Fish workers, Fish Farmers Producer Organizations (FFPOs).

Objectives Of PM MKSSY Scheme

• Gradual Formalization of the Unorganized Fisheries Sector.
• Facilitating Access to institutional financing fisheries sector micro and small enterprises.
• Providing a One-time Incentive to Beneficiaries For purchasing aquaculture insurance.
• Incentivizing through Performance Grants:
  • Fisheries and Aquaculture Micro-Enterprises: For improving fisheries sector value-chain efficiencies including the creation and maintenance of jobs.
  • Micro and Small Enterprises: For adoption and expansion of fish and fishery product safety and quality assurance systems, including creating and maintaining jobs.

Major Components Of PM MKSSY Scheme

• Formalization and facilitating Access for Working Capital Financing: For this purpose, a National Fisheries Digital Platform (NFDP) will be created and all the stakeholders will be mobilized to register on it. It will serve multiple functions including disbursement of financial incentives. 
• Facilitating Adoption of Aquaculture Insurance: The maximum incentive payable to a single farmer will be Rs. 1,00,000 and maximum farm size eligible for incentive is 4 hectares of water spread area. 
  • For more intensive forms of aquaculture other than farms such as cage culture, Recirculatory Aquaculture System (RAS), biofloc, raceways, etc. the incentive payable is 40% of premium. 
  • Maximum incentive payable is 1 lakh and maximum unit size eligible will be of 1800m3. 
    • SC, ST and Women beneficiaries would be provided an additional incentive @ 10% of the incentive payable for General Categories.
• Supporting Microenterprises to Improve Fisheries Sector Value Chain Efficiencies: Through a system of performance grants with associated analytics and awareness campaigns. 
  • The Scale of Performance Grant and the Criteria for Providing Performance Grants:
    • For a Microenterprise shall not exceed 25% of the total investment or Rs. 35 lakhs, whichever is lower, for General Category and 35% of total investment or Rs. 45 lakhs, whichever is lower, for SC, ST and Women owned microenterprises.
    • Performance Grant for Village Level Organizations and Federations of SHGs, FFPOs and Cooperatives shall not exceed 35% of total investment or Rs. 200 lakhs, whichever is lower.
    • The total investment shall consist of expenditure incurred on capital investments made on new plant and machinery, technology, salary bills for additional jobs created, etc.
• Adoption and Expansion of Fish and Fishery Product Safety and Quality Assurance Systems: To expand the market for fish and to create and maintain jobs especially for women. 
• The Scale of Performance Grant: 
  • For a Microenterprise shall not exceed 25% of the total investment or, Rs.35 lakhs, whichever is lower, for General Category and 35% of total investment or, Rs.45 lakhs, whichever is lower, for SC, ST and Women owned microenterprises.
  • For a Small enterprise shall not exceed 25% of total investment or Rs.75 lakhs, whichever is lower, for General Category and 35% of total investment or Rs. 100 lakhs, whichever is lower, for SC, ST and Women owned small enterprises.
  • For Village Level Organizations and Federations of SHGs, FFPOs and Cooperatives shall not exceed 35% of total investment or Rs.200 lakhs, whichever is lower.
  • Total investment shall consist of the expenditure incurred on:
    • capital investments made on new plant and machinery
    • equipment including technical civil/electrical works & associated infrastructure
    • transport and distribution infrastructure
    • collection and treatment facility for wastes
    • disease management, best management practices and such other investments leading to production and supply of safe fish
    • salary bills for additional jobs created
• Performance Grant Disbursement Criteria: For each job created and maintained for a woman an amount of Rs.15,000 per year will be paid, similarly, for man, an amount of Rs.10,000 per year will be paid, subject to the limit of 50% of total eligible grant.
  • Performance grant for such investments made will be disbursed after completion of the investment subject to the limit of 50% of the eligible grant.
• Project Management, Monitoring and Reporting: It is proposed to set up Project Management Units (PMUs) to manage, implement, monitor and evaluate project activities.

Significance Of PM MKSSY Scheme

• Working Identity: To create a National Fisheries Digital Platform to provide 40 lakh small and micro-enterprises work-based identities.
• Formalization & Access to Credit: It would gradually formalize the fisheries sector and enhance access to institutional credit. 
• Performance-based Incentives: Gradual shift from conventional subsidies to performance-based incentives.
• Efficiency & Safety: It focuses on improving value chain efficiency and ensuring safe, quality fish by supporting 55,000 targeted micro and small enterprises.
• Environment Sustainability: Promotion of Environment and Sustainability Initiatives.
• Growth & Development: Income Enhancer due to enhanced profit margins due to value chain efficiencies.
• Insurance Coverage: Address issues of aquaculture crop losses due to disease through insurance coverage for aquaculture to strengthen production and productivity.

News Source: PIB