Centre yet to disburse incentives under PM-PRANAM scheme, JPNadda tells Parliament

New Delhi, The Centre has not disbursed any incentives to states and union territories under the PM-PRANAM scheme since its launch, Fertilisers Minister J P Nadda informed Parliament on Friday.

Launched following the Budget 2023 announcement and subsequent Cabinet approval in June 2023, the PM Programme for Restoration, Awareness, Generation, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) was designed to reduce chemical fertiliser use in Indian agriculture.

The scheme was envisaged as a three-year programme spanning FY 2023-24 to FY 2025-26.


"Till date, no incentives have been disbursed to the states/UTs," Nadda said in a written reply to the Lok Sabha.

Under PM-PRANAM, states and UTs are eligible for incentives if they reduce consumption of chemical fertilisers - urea, DAP, NPK, and MOP - in a given financial year compared to the average consumption over the previous three years.

The incentive is equivalent to 50 per cent of the fertiliser subsidy saved.

Of the total grant, 95 per cent is allocated to the state, while the remaining 5 per cent is retained by the Centre for disaster-adjusted incentives.

The grant calculation mechanism first accounts for any increase in a state's cropping area by proportionately adjusting fertiliser consumption.

The actual reduction in chemical fertiliser usage during the year is then computed to arrive at the final incentive amount.

Additionally, any increase in fertiliser consumption in adjoining districts of neighbouring states is deducted from the savings.

Of the 95 per cent grant provided to states, 65 per cent is earmarked for capital expenditure projects, preferably as contributions to centrally sponsored schemes, while 30 per cent is untied and can be used for other activities, including Information, Education, and Communication (IEC) initiatives.