New Delhi- The Cabinet Committee on Economic Affairs (CCEA) recently approved the proposal to implement the PM-PRANAM scheme. All States/UTs are covered under the scheme.

Under the said scheme, 50% of the fertilizer subsidy saved by a State/UT in a particular financial year by way of reduction in consumption of chemical fertilizers (Urea, DAP, NPK, MOP) compared to previous 3 years' average consumption, is passed on to that State/UT as Grant.

States/UTs can utilize this grant for the benefit of people in the state, including farmers.​

The purpose of this scheme is to promote sustainable and balanced use of fertilizers, adopt alternate fertilizers, and promote organic and natural farming practices. All the states and UTs are eligible for this scheme.

Under this scheme, the states and UTs will have the option to use the grant amount for various purposes including health of the people, including farmers, increasing farm productivity, promoting natural farming, or any other sustainable purpose.

The Union Minister of State for Chemicals and Fertilizers Smt Anupriya Patel had informed in the Lok Sabha that under this scheme, the states and UTs will be able to decide how to best utilize the fertilizer subsidy amount for the benefit of the people and the environment.