PM Dhan‑Dhaanya Krishi Yojana: A Massive Green Boost for India's Agriculture

In a transformative move aimed at revitalizing India’s agricultural sector and aligning it with the country’s green energy ambitions, the Union Cabinet chaired by Prime Minister Modi has approved the Prime Minister Dhan‑Dhaanya Krishi Yojana (PMDDKY). This ambitious scheme, with an annual financial outlay of ₹24,000 crore, is set to be implemented over a six-year period. It seeks to bring sustainable growth and self-reliance to the agriculture sector, while simultaneously accelerating India’s green energy goals.

PMDDKY, modelled on NITI Aayog’s Aspirational Districts Programme, is the first scheme of its kind dedicated exclusively to enhancing farm productivity, promoting crop diversification and sustainable practices, and improving post-harvest infrastructure at the panchayat and block levels. (HT) | LiveMint

A Mission to Uplift 100 Underperforming Agricultural Districts

The PM Dhan‑Dhaanya Krishi Yojana is designed to focus on 100 selected districts across India that have shown low agricultural productivity, limited irrigation infrastructure, low cropping intensity, and inadequate access to institutional credit. Each state will have at least one district included under the scheme, benefiting approximately 1.7 crore farmers.

These districts will undergo intensive and targeted development in a mission mode, ensuring saturation of agricultural and rural infrastructure. The selection of these districts is strategic, based on a range of key indicators, ensuring the intervention reaches the regions that need it the most. The government aims to transform these districts into models of integrated agricultural development.

Convergence of Government Schemes and Governance Model

One of the key features of this scheme is the integration of 36 existing government schemes under 11 different ministries. These include programs related to crop diversification, water conservation, irrigation efficiency, farm mechanization, post-harvest management, warehousing, cold storage, and rural connectivity.

The governance model will mirror the highly successful Aspirational Districts Programme run by NITI Aayog. It will involve real-time monitoring through digital dashboards and performance tracking using 117 Key Performance Indicators (KPIs). Central, state, and local bodies will work in tandem, supported by district-level committees, ensuring smooth execution and accountability. Technical experts and convergence officers will provide additional support and guidance in each of the target districts.

Massive Investment in Green Energy Through PSUs

Complementing the agricultural reform push is a major cabinet approval related to green energy investment. The government has allowed NTPC Ltd. to increase its investment limit in its renewable energy arm, NTPC Green Energy Ltd., from ₹7,500 crore to ₹20,000 crore. This step is expected to significantly boost NTPC's efforts to reach its ambitious goal of achieving 60 GW of renewable energy capacity by 2032.

Similarly, NLC India Ltd. has been granted permission to invest ₹7,500 crore in its green subsidiary, NLC India Renewables Ltd., targeting a capacity of 10 GW by 2030. Both PSUs have been exempted from the usual ceiling limits that restrict investment in subsidiary companies by Central Public Sector Enterprises (CPSEs), thereby allowing greater flexibility and faster deployment of resources in the renewable sector.

Aligning Agriculture with India's Climate Goals

The PMDDKY is not just about enhancing food production or improving rural livelihoods. It is part of a broader strategy to combat climate change by embedding sustainability into agriculture. By promoting renewable energy for irrigation, cold storage, and agro-processing, and by encouraging organic and natural farming practices, the scheme is poised to lower the carbon footprint of Indian agriculture.

The focus on green infrastructure and energy efficiency in the farming sector is expected to reduce the reliance on diesel and fossil fuels, which have been a significant source of emissions in rural India. This move aligns with India’s commitment to achieving net-zero carbon emissions by 2070, as outlined in its international climate pledges.

Empowering Farmers and Strengthening the Rural Economy

Another important pillar of the scheme is farmer empowerment. By improving access to irrigation, promoting modern agricultural techniques, and ensuring better post-harvest infrastructure, the government intends to boost farmers’ incomes and improve agricultural resilience. Better storage and transport infrastructure will reduce post-harvest losses, helping farmers realize fair prices for their produce.

Additionally, convergence with financial schemes will enhance access to institutional credit, which remains a major barrier for small and marginal farmers in India. Training, capacity building, and market linkages will be facilitated at the grassroots level to ensure long-term benefits for rural communities.

Conclusion: A Historic Step Toward Climate-Smart Agriculture

The PM Dhan‑Dhaanya Krishi Yojana, along with the increased green investment limits for NTPC and NLC India, marks a significant milestone in India’s agricultural and environmental policy. This dual-pronged strategy—reviving backward districts while investing in clean energy—will not only uplift millions of farmers but also lay a strong foundation for climate-smart agriculture.

By intertwining economic development with ecological responsibility, this initiative showcases India’s resolve to lead by example. It brings together multiple ministries, public sector undertakings, and local governance structures in a united mission to secure the future of food, energy, and the environment.

(Sources: LiveMint, Money Control, Economic Times)