What is the primary objective of the PM-PRANAM Scheme, 2023, approved by the Cabinet Committee on Economic Affairs?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
To incentivize states/UTs for reducing chemical fertilizer usage and promoting sustainability
Explanation
The PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) Scheme was approved by the Cabinet Committee on Economic Affairs (CCEA) in June 2023. The primary objective of the scheme is to incentivize States and Union Territories (UTs) to promote the balanced use of chemical fertilizers alongside alternative fertilizers like bio-fertilizers, organic fertilizers, and nano-fertilizers.
The scheme operates on a unique self-financing incentive model and does not have a separate, dedicated budget layout. Instead, it is funded through the savings generated from existing fertilizer subsidies. When a State or UT successfully reduces its consumption of chemical fertilizers (such as Urea, DAP, NPK, and MOP) in a given financial year compared to its average consumption over the previous three years, the Central Government rewards them. The Centre passes on a grant equivalent to 50% of the fertilizer subsidy saved directly to that specific state. This strategy simultaneously cuts down environmental soil degradation and lightens the financial subsidy burden on the national exchequer.
Key Points
The grant provided to the states is strictly categorized: 70% of the funds must be utilized for asset creation, such as technological adoption of alternate fertilizers and setting up production units at the village, block, and district levels.
The remaining 30% of the grant money can be utilized by the state to reward and incentivize farmers, panchayats, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs) who actively work toward reducing fertilizer consumption and generating community awareness.
The program works in tandem with existing green initiatives like the Paramparagat Krishi Vikas Yojana (PKVY) to restore overall soil health, prevent groundwater pollution, and advance regenerative agriculture across India's agro-climatic zones.
Important Questions and Answers
Question: What is the complete expanded form of the acronym PM-PRANAM as officially released under the Union Budget guidelines?
Answer: It stands for PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth.
Question: What percentage of the total subsidy savings achieved by a state under the PM-PRANAM scheme is returned to it as an operational grant?
Answer: Exactly 50% of the total saved fertilizer subsidy amount is returned to the state as an incentive grant.