Central government PM PRANAM Scheme gives financial incentives to states and union territories for reducing the use of chemical fertilizers. The scheme was approved by the Cabinet Committee on Economic Affairs on 28 June 2023 and covers the period from 2023-24 to 2025-26.
PM PRANAM stands for PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother Earth. The scheme is funded through the money saved in fertilizer subsidy from lower use of chemical fertilizers. This article explains the complete details of PM PRANAM Scheme.
About PM PRANAM Scheme
PM PRANAM Scheme is designed to help states and union territories cut the use of chemical fertilizers like urea, DAP, NPK and MOP. The scheme compares a state's fertilizer use in a financial year with its average consumption over the previous three years. States that reduce their use get an incentive equal to 50% of the fertilizer subsidy saved.
Out of the total incentive grant, 95% goes to the concerned state or union territory, while the remaining 5% is kept by the government of India for monitoring, research and awareness programs. From the state share, 65% must be used for capital expenditure projects, preferably under Centrally Sponsored Schemes. The remaining 30% can be used for other activities like Information, Education and Communication (IEC) schemes to spread awareness about soil health and alternative fertilizers.
The calculation of fertilizer subsidy savings is based on data entered into the Integrated Fertilizer Management System (iFMS) portal during a financial year, along with the subsidy rates of the relevant year. The increase in use of organic and alternative fertilizers and the growth of organic farming are also taken into account.
How PM PRANAM Scheme Works
States and union territories are required to submit Action Plans at the start of each financial year with details of how they plan to use the grants. At the end of the financial year, they must submit Utilization Certificates. Grants for the next financial year depend on the proper use of the earlier grants.
The scheme also works with other government schemes that promote organic and natural farming, like Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) and the National Mission on Natural Farming (NMNF).
Latest Update on PM PRANAM Scheme
During 2025-26, five states and union territories, namely Dadra and Nagar Haveli, Delhi, Goa, Manipur and Mizoram, recorded a cumulative reduction of 0.18 lakh metric tonnes in the consumption of chemical fertilizers compared with their average over the previous three financial years. The government has informed that incentives under the scheme have not yet been disbursed.
PM PRANAM Scheme is funded through savings in fertilizer subsidy arising from reduced consumption of chemical fertilizers. The scheme is part of the wider government effort to promote balanced soil management, organic farming and natural farming across the country.
PM PRANAM Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | PM PRANAM Scheme |
| Approved By | Cabinet Committee on Economic Affairs |
| Approved On | 28 June 2023 |
| Scheme Period | 2023-24 to 2025-26 |
| Beneficiaries | States and Union Territories |
| Incentive | 50% of fertilizer subsidy saved |
| Official Website | fert.gov.in |
More details on PM PRANAM Scheme are available on the official website of the Department of Fertilizers at fert.gov.in.
FAQ's
What is PM PRANAM Scheme?
PM PRANAM Scheme is a central government program that gives financial incentives to states and union territories for reducing the use of chemical fertilizers. It was approved by the Cabinet Committee on Economic Affairs on 28 June 2023.
Who can benefit from PM PRANAM Scheme?
The scheme covers all states and union territories. States that reduce their fertilizer consumption compared with their previous three-year average get an incentive equal to 50% of the fertilizer subsidy saved.
How is the incentive amount calculated?
The incentive is based on data entered into the Integrated Fertilizer Management System (iFMS) portal during a financial year. States that save fertilizer subsidy by cutting chemical fertilizer use get 50% of the amount saved.
Has any state received the incentive under PM PRANAM Scheme?
As of now, the government has not disbursed any incentives under the scheme. During 2025-26, five states and union territories reduced their fertilizer consumption, but the incentives have not yet been paid.
Source / Reference Link: PIB Press Release on PM PRANAM Scheme
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