Lok Sabha Question No. 3293 (UNSTARRED), answered on 2021-03-16
Subject: Delay in Release of PMFBY Funds
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICLTURE, COOPERATION AND FAREMRS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 3293

TO BE ANSWERED ON THE 16 TH  MARCH, 2021

## DELAY IN RELEASE OF PMFBY FUNDS

## 3293. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government has taken note that there is inordinate delay in the release of funds by the Central and State Governments to pay farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY);
- (b) if so, the details thereof;

(c) the  details  of  funds  released  during  the  last  two  years,  particularly  to  the  State  of Andhra Pradesh;

- (d) the reasons for the delay and the steps being taken for early release of funds?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

## कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a)  to  (d)  :  As  per  provisions  of  Operational  Guidelines  of  Pradhan  Mantri  Fasal  Bima Yojana (PMFBY) premium subsidy is to be paid to the insurance companies on the basis of Government liability  calculated  on  National  Crop  Insurance  Portal  (NCIP)  by  considering approval of individual application of farmers by concerned insurance companies.

Central Government share of funds is made available in advance to the fund routing agency i.e. Agriculture Insurance Company of India Ltd. (AIC), which in turn releases the funds  to  concerned  insurance  companies  on  receipt  of  funds  from  the  concerned  State Government.  However, release of State Government share of premium subsidy is delayed in many cases due to budget considerations and delay in finalization of business statistics on portal etc.

This Department is regularly monitoring the implementation of PMFBY including timely release of premium subsidy and has revised the Operational Guidelines of the scheme to include the timelines for release of funds and penalty provision against defaulting States. Defaulting  States/UTs  are  also  being  asked  in  writing  from  time  to  time  to  release  their respective share in premium subsidy.   Moreover, provisions of penal interest @12% were made in the Revised Operational Guidelines for delay in release of their share in premium subsidy by States/UTs.  Further, as per revamped guidelines w.e.f. Kharif 2020, the states delaying the release of subsidy beyond stipulated timelines can not participate in upcoming seasons.

Being a Central Sector Scheme, State-wise allocation/release is not made under the scheme.      The  requisite  funds  are  released  to  the  Central  fund  routing  agency  i.e. Agriculture  Insurance  Company  of  India  Ltd.  (AIC)  which  in  turn  releases  the  Central Government's  share  in  premium  subsidy  on  receipt  of  respective  State  Government's share, to the concerned insurance companies.   Year-wise details of budget provided by the  Central  Government  and  actual  expenditure  during  last  two  years  i.e.  2019-20  and 2020-21 under PMFBY is given below :

| Year    |   Budget Estimates |   Revised Estimates |   (Rs. in crore) Actual Release |
|---------|--------------------|---------------------|---------------------------------|
| 2019-20 |              14000 |             13640.9 |                         12638.3 |
| 2020-21 |              15695 |             15307.2 |                         13902.8 |

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