Context:
Recently, the Union Cabinet Committee on Economic Affairs (CCEA) approved the PM-PRANAM scheme.
About PM-PRANAM Scheme:
- PM-PRANAM stands for (Prime Minister’s Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth).
- Aim: To incentivise states to use alternative, non-chemical fertilisers.
- For Example: If a State was using 10 lakh tonnes of conventional fertilisers and reduces its consumption by three lakh tonnes, then the subsidy saving would be ₹3,000 crore.
- Out of that subsidy savings, the Centre will give 50% of it — ₹1,500 crore to the State for promoting the use of alternative fertiliser and other development works.
- It was first announced in the 2023-24 Budget with a total outlay of ₹3,70,128.7 crore.
- Time Period: 2022-23 to 2024-25.
- The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.
- 50% subsidy savings will be passed on as a grant to the state that saves the money.
- 70% of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers and alternate fertiliser production units at village, block and district levels.
- The remaining 30% grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
News Source: The Hindu
29 Jun 2023
