PM-PRANAM scheme

About the PM-PRANAM scheme:

• It aims to reduce the use of chemical fertilisers by incentivising the state.
• Under the scheme, the states which will adopt alternative fertilisers will be incentivised with the subsidy that is saved by reducing the use of chemical fertilisers.
• The main objective of the scheme is to encourage the balanced use of fertilisers in conjunction with bio fertilisers and organic fertilisers. 
• Funding mechanism:
  • It will not have a separate budget.
  • It will be financed by the savings of existing fertiliser subsidies under schemes.
  • Half of the subsidy savings will be passed on to the state that saves the money as a grant.
  • Out of this grant, 70% can be used to create assets 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 to reward and encourage farmers, panchayats, and other stakeholders involved in fertiliser reduction and awareness generation.
• The government will evaluate the utilisation of fertilisers in terms of increase or decrease in overall consumption in a year vis-a-vis consumption over the past three years.
• The Integrated Fertilisers Management System (iFMS) is the platform envisaged to track the use of fertilisers.