About PM-PRANAM

Context:

The Centre has approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers.

• It also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of ₹3.68 lakh crore.

Relevance:

GS III: Agriculture

Dimensions of the Article:

1. PM-PRANAM
2. Features of the scheme

PM-PRANAM

PM-PRANAM (PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) is a scheme introduced by the Prime Minister of India.

Objective:

• Encourage the balanced use of fertilisers by promoting the use of bio fertilisers and organic fertilisers.
• Reduce the subsidy burden on chemical fertilisers, which has been increasing significantly.

Implementation:

• States that adopt alternative fertilisers and reduce the consumption of chemical fertilisers will be incentivised.
• The subsidy amount saved from reducing chemical fertiliser usage will be provided to the states as a subsidy for promoting alternative fertilisers and other development works.
• The Centre will give 50% of the subsidy savings to the states.

Example:

• If a state reduces its consumption of conventional fertilisers by 3 lakh tonnes and saves ₹3,000 crore in subsidies.
• The Centre will provide 50% of the subsidy savings, which is ₹1,500 crore, to the state for promoting alternative fertilisers and other development initiatives.

Benefits:

• Encourages the adoption of sustainable and environmentally friendly agricultural practices.
• Reduces the dependency on chemical fertilisers, promoting the use of bio fertilisers and organic fertilisers.
• Helps in reducing the subsidy burden on chemical fertilisers, which has been increasing over the years.

Features of the PM-PRANAM scheme include:

Financing:

• The scheme will be financed through the savings from existing fertiliser subsidies under schemes administered by the Department of Fertilisers.
• There will be no separate budget allocated for the scheme.

Subsidy Grant:

• 50% of the subsidy savings resulting from reduced chemical fertiliser usage will be provided to the state as a grant.
• Asset Creation:
• 70% of the grant received by the state can be utilized for creating assets related to the technological adoption of alternative fertilisers.
• This includes establishing alternate fertiliser production units at the village, block, and district levels.

Incentives and Rewards:

• The remaining 30% of the grant money can be used to reward and encourage farmers, panchayats (village councils), and other stakeholders involved in reducing chemical fertiliser usage and generating awareness about alternative fertilisers.

Calculation Method:

• The calculation for reducing chemical fertiliser use will compare a state’s increase or decrease in urea consumption in a given year with its average urea consumption over the previous three years.
• This serves as a reference point to assess the reduction in chemical fertiliser usage.

-Source: The Hindu