What is PM-PRANAM?

What’s in today’s article?

• Why in news?
• What is PM-PRANAM?
• News Summary: Cabinet approves PM-PRANAM
• What are the Key decisions taken by the cabinet?

 

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 is 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 expected to increase to 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.

 

What are the Key decisions taken by the cabinet?

• PM-PRANAM scheme for farmers
  • The Cabinet approved PM-PRANAM scheme to incentivise states to promote alternative fertilisers and reduce reliance on chemical fertilisers.
    • 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, the private sector, and academic and knowledge institutions that aims to promote sustainable development.

 

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Q1) What is Coalition for Disaster Resilient Infrastructure (CDRI)?

The Coalition for Disaster Resilient Infrastructure (CDRI) is an international partnership established to promote and support the resilience of infrastructure systems to the impacts of natural and man-made disasters. It was launched by the Government of India in September 2019 during the United Nations Climate Action Summit. The CDRI aims to bring together governments, United Nations agencies, multilateral development banks, private sector organizations, academic institutions, and other stakeholders to work collaboratively on building and enhancing the resilience of infrastructure. The coalition recognizes that infrastructure plays a crucial role in economic development and well-being, but it is also highly vulnerable to various hazards such as earthquakes, cyclones, floods, and climate change impacts.

 

Q2) What is a Headquarters Agreement?

A Headquarters Agreement is a legal document or agreement between a host country and an international organization that establishes the legal framework for the operations and activities of the organization's headquarters within the host country. It outlines the rights, privileges, and immunities granted to the organization, its staff, and facilities, as well as the obligations and responsibilities of both parties.

 

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Source: Cabinet key decisions: Scheme to promote alternative fertilisers, hike in sugarcane prices; and more | The Hindu | CNBCTV18 | Indian Express