The Centre has not disbursed any incentives to states or Union Territories under the PM-PRANAM scheme since its launch in 2023, Union Fertilisers Minister J P Nadda informed Parliament on Friday.
Launched following the Union Budget 2023 announcement and approved by the Cabinet in June that year, the PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth (PM-PRANAM) aims to reduce the use of chemical fertilisers in agriculture.
The scheme was envisaged as a three-year programme covering 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 the scheme, states and Union Territories are eligible for incentives if they reduce consumption of chemical fertilisers, urea, DAP, NPK and MOP, in a financial year compared with the average usage over the previous three years.
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The incentive amount is equivalent to 50 per cent of the fertiliser subsidy saved. Of the total grant, 95 per cent is allocated to the state or UT concerned, while the remaining 5 per cent is retained by the Centre for disaster-adjusted incentives.
The calculation of the grant first adjusts fertiliser consumption to account for any increase in cropping area during the year. The actual reduction in chemical fertiliser usage is then computed to arrive at the final incentive amount. Any increase in fertiliser consumption in adjoining districts of neighbouring states is also deducted from the savings.
Of the 95 per cent share released to states and UTs, 65 per cent is earmarked for capital expenditure projects, preferably as contributions to centrally sponsored schemes, while 30 per cent is untied and may be used for other activities, including Information, Education and Communication initiatives.
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