PM PRANAM Scheme

Why in the News?

The Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

Key Points:

About

PM PRANAM

• Objective: To reduce the subsidy burden on chemical fertilisers.

• Budgetary Allocation: 

• • There will be no separate budget for the PM PRANAM scheme. 
  • It will be financed through the – “savings of existing fertiliser subsidy” provided by the department of fertilisers under various schemes. 

Why has PM PRANAM been launched?

• It is estimated that the burden of chemical fertilisers subsidy has reached Rs 2.25 lakh crore in 2022-23.

• The government does not have enough financial resources to sustain such a subsidy burden.
• This scheme is also in line with the government’s focus on promoting the balanced use of fertilisers or alternative fertilisers in the last few years.

Utilising Subsidy Savings

• 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 the technological adoption of alternate fertilisers and alternate fertiliser production units at the village, block and district levels.
• The remaining 30% of 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
• Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.