PM PRANAM Scheme: Cabinet Likely To Give Approval Today, 14 June

PM PRANAM Stands for “Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth”, is a scheme aimed at reducing the usage of chemical fertilizers by farmers and alleviating the subsidy burden on the government. The main objective is to encourage the balanced use of fertilizers with bio and organic fertilizers.

Today, the Union Cabinet is likely to approve the scheme, which was announced by Finance Minister Nirmala Sitharaman on February 1 as part of the FY24 Budget during her Budget speech, the Finance Minister stated that the scheme will be launched to incentivize states and union territories to promote the use of alternative fertilizers and encourage a balanced approach to use chemical fertilizers. It is set to be implemented for three years and is projected to reduce fertilizer usage by 45.78 lakh metric tonnes, resulting in a monetary saving of approximately Rs 20,000 crore.

According to the Department of Fertilizers (DOF), which presented its proposal to the Committee, the scheme is expected to be implemented in the fiscal year 2023-24, post-approval and today it is likely to be approved by the cabinet.

The primary aim of the scheme is to support the widespread movement initiated by States/Union Territories to preserve the well-being of Mother Earth. This will be achieved by promoting a balanced and sustainable approach to the use of chemical fertilizers. The scheme also aims to encourage the adoption of alternative fertilizers such as organic, bio, and nano fertilizers, as well as natural and organic farming practices.

The objective of the scheme is to incentivize and reward States/UTs that actively reduce their reliance on chemical fertilizers and actively promote the use of alternative fertilizers. It is proposed that 50% of the fertilizer subsidy saved by a State/UT in a particular financial year by way of a reduction in consumption of chemical fertilizers (Urea, DAP, NPK, MOP), compared to the previous 3 years average consumption, will be passed on to that State/UT as a grant.

Furthermore, according to the report, a significant portion of 70% of the grant allocated under the scheme is expected to be utilized for the establishment of assets associated with the technological implementation of alternative fertilizers and production units for alternate fertilizers at the village, block, and district levels.