Why in news?
- The Centre has approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers.
- It also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of ₹3.68 lakh crore.
What’s in today’s article?
PM-PRANAM
- About
- PM-PRANAM stands for PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth.
- The scheme aims to reduce the use of chemical fertilisers by incentivising 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.
- Suppose a state is using 10 lakh tonne of conventional fertiliser.
- If it reduces its consumption by 3 lakh tonne, then the subsidy saving would be ₹3,000 crore.
- Out of that subsidy savings, the Centre will give 50% of it — ₹1,500 crore to the state for promoting the use of alternative fertiliser and other development works.
- Objective
- To encourage the balanced use of fertilisers in conjunction with bio fertilisers and organic fertilisers.
- To reduce the subsidy burden on chemical fertilisers,
- Subsidy burden is around Rs 2.25 lakh crore in 2022-2023.
- This is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
- Features of the scheme
- The scheme will not have a separate budget.
- It will be financed by the savings of existing fertiliser subsidy under schemes run by the Department of fertilisers.
- 50% of subsidy savings will be passed on to the state that saves the money as a grant.
- 70% of this grant 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% grant money can be used to reward and encourage farmers, panchayats, and other stakeholders involved in fertiliser reduction and awareness generation.
- To illustrate the calculation in reducing chemical fertiliser use, a state's increase or decrease in urea consumption in a year will be compared to its average consumption of urea over the previous three years.
News Summary: Cabinet approves PM-PRANAM
- Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi, announced a slew of decisions.
Key decisions taken by the cabinet
- PM-PRANAM scheme for farmers
- The Cabinet approved PM-PRANAM scheme
- The programme had initially been announced by Finance Minister as part of the Union Budget 2023-24.
- A package of ₹3.68 lakh crore has been committed for urea subsidy for the next three years (2022-23 to 2024-25).
- The outlay also provides for the setting up and revival of 6 urea production units to reduce the current import dependency for urea and make India self-sufficient in this aspect by 2025- 26.
- Introduction of sulphur-coated urea (Urea Gold)
- The CCEA also decided to introduce sulphur-coated urea (Urea Gold) in the country for the first time to address sulphur deficiency in the soil.
- Sulphur-coated urea is more economical and efficient than the other kinds of urea.
- For instance, the nitrogen absorption in conventional urea is 30%, neem-coated urea is 50%, and nano urea is 80%.
- Sulphur-coated urea will increase nitrogen absorption efficiency to 78%.
- Providing assistance to organic manure
- The Cabinet approved ₹1,451.84 crore for Market Development Assistance (MDA) for promoting organic fertiliser from Gobardhan Plants.
- Under the scheme, a subsidy of ₹1,500 per tonne will be provided.
- This subsidy will be provided to support the marketing of organic fertilisers produced as by-products from Biogas Plants/Compressed Biogas (CBG) Plants set up under umbrella GOBARdhan initiative.
- The initiative aims to augment income of farmers by converting biodegradable waste into compressed biogas.
- Increased the Fair and Remunerative Price (FRP)
- The Cabinet increased the FRP by Rs 10 to Rs 315 per quintal for the 2023-24 season starting October.
- FRP is the minimum price that mills have to pay to sugarcane growers.
- It is determined by the Government based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- The government has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5 percent.
- National Research Foundation Bill approved
- The government also decided to table a bill to set up the National Research Foundation (NRF) in Parliament.
- The NRF will be an apex body to provide high-level strategic direction of scientific research in India.
- NRF will seed, grow and promote R&D and foster a culture of research and innovation throughout India’s universities, colleges and research institutions.
- The NRF’s governing board will comprise of eminent researchers and professionals, and will be headed by the PM.
- Ratification of Headquarters Agreement with CDRI
- The Union Cabinet also pushed the ratification of the Headquarters Agreement between Government of India (Gol) and Coalition for Disaster Resilient Infrastructure (CDRI).
- The agreement was signed in August 2022.
- The ratification of the signed Headquarters Agreement will make it easier to grant special privileges and benefits to CDRI.
- It will also give CDRI its own legal identity internationally, allowing it to operate more effectively in its global functions.
- The CDRI was launched by PM Modi during the United Nations Climate Action Summit in September 2019.
- It is a global partnership of national governments, UN agencies, multilateral development banks, private sector, and academic and knowledge institutions that aims to promote sustainable development.
