Lok Sabha Question No. 4778 (UNSTARRED), answered on 2026-03-20
Subject: Implementation of Centrally Sponsored Schemes in Andhra Pradesh
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri G M Harish Balayogi

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO. 4778 TO BE ANSWERED ON: 20.03.2026

## Implementation of Centrally Sponsored Schemes In Andhra Pradesh

## 4778. Shri G M Harish Balayogi:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  the  details  of  Central  Sector  Schemes  and  Centrally  Sponsored  Schemes  being implemented by the Ministry in the State of Andhra Pradesh during the last three years, year- wise, scheme-wise and district-wise, especially in Konaseema district;
- (b) the details of funds allocated, sanctioned, released and utilised for each of the above schemes  during  the  last  three  years  in  Andhra  Pradesh,  year-wise  and  district-wise, especially for the said district including reasons for any shortfall in utilisation;
- (c) the details of physical targets set and achieved while implementing the said schemes during the last three years and the current year, year-wise, scheme-wise and district-wise;
- (d) whether the Government has found any shortcomings while implementing the said schemes, if so, the details thereof and the measures taken to fix those shortcomings; and
- (e) the steps taken by the Government to enhance the reach, effectiveness and impact of the said schemes in Andhra Pradesh?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a) to (e): Urea Subsidy Scheme which is a Central Sector Scheme of the Ministry of Chemicals & Fertilizers is wholly financed by the Government of India through Budgetary Support. Urea Subsidy Scheme has three components, i.e., Indigenous Urea, Imported Urea and Uniform Freight Subsidy. Under this Scheme, Urea is presently provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea  is  Rs.242  per  bag  (exclusive  of  charges  towards  neem  coating  and  taxes  as applicable). The difference between the delivered cost of urea at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the

Government  of  India.  Accordingly,  all  farmers  of  the  country  including  farmers  of konaseema district of Andhra Pradesh, are being supplied urea at the subsidized rates and thereby are beneficiaries of this scheme.

Government also implement Nutrient Based Subsidy (NBS) Scheme, a Central Sector Scheme, w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, MRP of P&K fertilizers are decontrolled and companies are free to fix MRP as  per  their  business  dynamics  at  a  reasonable  level.  The  subsidy  is  provided  to manufacturer/  importer  on  notified  P&K  fertilizers  on  its  PoS  sale  during  the  season, depending on their nutrient content to ensure availability of fertilizers to farmers. Under the  Scheme,  P&K  fertilizers  are  covered  under  Open  General  License  (OGL)  and companies  are  free  to  import/manufacture  these  fertilizers  as  per  their  business dynamics. NBS scheme is implemented uniformly on pan-India basis including the state of Andhra Pradesh and no regional differentiation is made.

The Cabinet Committee on Economic Affairs (CCEA), on June 28, 2023, approved the PM  Programme for Restoration,  Awareness Generation, Nourishment, and Amelioration  of  Mother-Earth  (PM-PRANAM). The  initiative  aims  to  support  the  mass movement initiated by States and Union Territories (UTs) to preserve the health of Mother Earth  through  the  promotion  of  sustainable  and  balanced  fertilizer  use,  adoption  of alternative  fertilizers,  promotion  of  organic  farming,  and  implementation  of  resource conservation technologies.

All States/UTs, including the State of Andhra Pradesh, are covered under the PMPRANAM  scheme.  Under  the  PM-PRANAM  scheme,  there  is  a  provision  to  provide incentives to States/UTs for reduction of consumption of chemical fertilizers (Urea, DAP, NPK, MOP) in a given financial year, compared to the average consumption over the previous three years, equivalent to 50% of the fertilizer subsidy saved. Of the total grant, 95%  will  be  allocated  to  the  State,  while  the  remaining  5%  will  be  utilized  by  the Government of India. Out of the 95% grant provided to the States, 65% is for capital expenditure (capex) projects, preferably as contributions to Centrally  Sponsored Schemes, and 30% is untied for other activities, including Information, Education, and Communication  (IEC)  initiatives.  There  is  no  separate  budgetary  allocation  for  PMPRANAM and  the  scheme  is  funded  from  savings  of  fertilizer  subsidy  arising  out  of reduction  in  consumption  of  chemical  fertilizers.  Till  date,  no  incentives  have  been disbursed to the States/UTs.

The Government has approved Market Development Assistance (MDA) Scheme (FY 2023-24 to 2025-26) under which assistance @ Rs. 1500/MT is provided to CBG plants/Fertilizer Marketing Companies for promotion of organic carbon enhancers, viz., Fermented  Organic  Manure  (FOM)/Liquid  Fermented  Organic  Manure  (LFOM)  and organic fertilizer, viz., Phosphate Rich Organic Manure (PROM) produced at plants under GOBARdhan initiative.

Fertilizers Subsidies are released to the fertilizers manufacturing companies on Point of Sale (PoS) basis to the buyer and no state-specific physical targets, budget/allocation/fund release is made.

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