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