Cabinet approves “Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)” a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada for the fisheries sector micro and small enterprises and envisages an investment of over rupees six thousand crore in the next four years

Cabinet approves “Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)” a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada for the fisheries sector micro and small enterprises and envisages an investment of over rupees six thousand crore in the next four years

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the “Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)”, a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada for formalization of the fisheries sector and supporting fisheries micro and small enterprises with an investment of over Rs. 6,000 crores over a period of next four (4) years from FY 2023-24 to FY 2026-27 in all States/Union Territories.

Expenditure involved

The Sub-scheme will be implemented as a Central Sector Sub-scheme under the Central Sector Component of the PMMSY at an estimated outlay of  Rs.6,000 crore consisting of 50% i.e. Rs.3,000 crore public finance including the World Bank and the AFD external financing, and rest 50% i.e.Rs.3,000 crore being the anticipated investment from the beneficiaries/private sector leverage. It will be implemented for 4 (four) years from FY 2023-24 to FY 2026-27 across all the States and UTs.

Intended Beneficiaries:

 

Major Impact, including employment generation potential

 

Aims and objectives of PM-MKSSY:

 

Implementation strategy:

The Sub-scheme has the following major components:

 

Fisheries, being an unorganised sector needs to be gradually formalized by creation of registry of the fish producers and other supporting actors such as fish workers, vendors and processors including micro and small enterprises working in the sector at the national level. For this purpose, a National Fisheries Digital Platform (NFDP) will be created and all the stakeholders will be mobilized to register on it. They will be encouraged to do so through providing financial incentives. The NFDP will serve multiple functions including disbursement of financial incentives. It is also proposed to undertake activities such as training and extension support, improving financial literacy, facilitating project preparation and documentation through financial support, reimbursing the processing fee and such other charges, if any and strengthening of existing fisheries cooperative societies.

It is proposed to facilitate creation of appropriate insurance product and to cover at least 1 lakh hectare of aquaculture farms during project period to provide the scale of operation. Further, it is proposed to provide onetime incentive to the willing farmers against purchase of insurance with farm size of 4 hectares of water spread area and less. The ‘onetime incentive’ will be at the rate of 40% of the cost of premium subject to a limit of Rs.25000 per hectare of water spread area of the aquaculture farm. The maximum incentive payable to single farmer will be Rs.1,00,000 and maximum farm size eligible for incentive is 4 hectares of water spread area. For more intensive form of aquaculture other than farms such as cage culture, Re-circulatory Aquaculture System (RAS), bio-floc, raceways, etc. the incentive payable is 40% of premium. Maximum incentive payable is 1 lakh and the maximum unit size eligible will be of 1800 m³. The aforesaid benefit of ‘onetime incentive’ will be provided for aquaculture insurance purchased for one crop only i.e. one crop cycle. SC, ST and Women beneficiaries would be provided an additional incentive @ 10% of the incentive payable for General Categories. This is expected to create a robust market for aquaculture insurance products and enable the insurance companies to come up with attractive insurance products in future.

This component seeks to improve value chain efficiencies in fishery sector through a system of performance grants with associated analytics and awareness campaigns. It is proposed to incentivise microenterprises to reengage in production, creation and maintenance of jobs with priority for women and to enhance value chain efficiencies through provisions of performance grants within selected value chains under a set of measurable parameters.

 

The scale of performance grant and the criteria for providing performance grants are indicated below:

d) Component 3: Adoption and expansion of fish and fishery product safety and quality assurance systems:

It is proposed to incentivize fisheries micro and small enterprises to adopt safety and quality assurance systems in marketing of fish and fishery products through provision of performance grants against a set of measurable parameters. This is expected to expand the market for fish and to create and maintain jobs especially for women. This intervention is expected to expand domestic market for fish through increased supply of safe fish and fishery products which will attract new consumers. The scale of performance grants the criteria for providing performance grants are indicated below:

e) Performance Grant disbursement criteria for components 2 and 3

f) Component 4: Project management, monitoring and reporting:

Under this component, it is proposed to set up Project Management Units (PMUs) to manage, implement, monitor and evaluate project activities.

 

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