Cabinet clears PM-PRANAM; states to get incentivises to trim chemical fertiliser use

The Cabinet on Wednesday approved a new scheme under which states which reduce the use of chemical fertilisers will be able to earn 50 per cent of the subsidy saved in the process.

The scheme PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) was announced by Finance Minister Nirmala Sitharaman on February 1.

“Under the scheme, the Centre will incentivise states which will promote alternative fertilisers and reduce chemical fertilisers,” Fertiliser Minister Mansukh Mandaviya told the media after a cabinet meeting.

Citing example, suppose a state is using 10 lakh tonne of conventional fertiliser and if it reduces its consumption by 3 lakh tonne, then the subsidy saving would be Rs 3,000 crore.

Of that subsidy savings, the Centre will give 50 per cent — Rs 1,500 crore — to the state for promoting the use of alternative fertiliser and other development works, he added.

(With agency inputs)