PM-MKSSY: Govt Approves Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana to Transform Fisheries Sector

The Union Cabinet, led by Prime Minister Narendra Modi, has greenlit the ‘Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)’ as a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada. This initiative aims to formalize the fisheries sector and provide support to fisheries micro and small enterprises. Over Rs. 6,000 crores will be invested in this scheme over the next four years, from FY 2023-24 to FY 2026-27, across all States and Union Territories.

PM-MKSSY: Expenditure Overview

The scheme will be implemented with an estimated outlay of Rs. 6,000 crore, comprising 50% public finance, including support from the World Bank and the AFD external financing, and the remaining 50% anticipated investment from beneficiaries/private sector leverage. It will run for four years, targeting comprehensive development in the fisheries sector.

Intended Beneficiaries of PM-MKSSY

The beneficiaries of PM-MKSSY include a wide spectrum of stakeholders:

• Fishers, Fish (Aquaculture) Farmers, Fish workers, and Fish Vendors directly engaged in the fisheries value chain.

• Micro and Small enterprises, encompassing various legal entities registered in India, such as Proprietary Firms, Partnership Firms, Companies, Societies, Limited Liability Partnerships (LLPs), Cooperatives, Federations, and Village Level Organizations like Self Help Groups (SHGs) and Fish Farmers Producer Organizations (FFPOs).

• The scheme also allows for the inclusion of any other beneficiaries deemed appropriate by the Department of Fisheries, Government of India.

Major Impact and Employment Generation Potential

The PM-MKSSY is expected to yield significant outcomes:

• Creation of a National Fisheries Digital Platform to provide work-based identities for 40 lakh small and micro-enterprises.

• Formalization of the fisheries sector, facilitating access to institutional credit and supporting 6.4 lakh micro-enterprises and 5,500 fisheries cooperatives.

• The transition from conventional subsidies to performance-based incentives, focusing on improving value chain efficiency and ensuring safe, quality fish from 55,000 targeted micro and small enterprises.

• Promotion of environment and sustainability initiatives, ease of doing business, and transparency.

• Addressing aquaculture crop losses through insurance coverage, enhancing export competitiveness, and boosting domestic market quality and strength.

• Projected creation of 1.7 lakh new jobs, with a special emphasis on employing 75,000 women, along with 5.4 lakh continued employment opportunities in the micro and small enterprise value chain.

Aims and Objectives

The PM-MKSSY aims to achieve the following objectives:

• Gradual formalization of the unorganized fisheries sector through the creation of a National Fisheries Sector Digital Platform.

• Facilitating access to institutional financing for fisheries sector micro and small enterprises.

• Providing one-time incentives to beneficiaries for purchasing aquaculture insurance.

• Incentivizing micro and small enterprises for improving fisheries sector value-chain efficiencies, safety, and quality assurance systems.

PM-MKSSY: Implementation Strategy

The scheme comprises several components:

• Component 1-A: Formalization of the fisheries sector and facilitating access to government programs, including working capital financing.

• Component 1-B: Facilitating the adoption of aquaculture insurance to cover at least 1 lakh hectare of aquaculture farms and providing one-time incentives to farmers.

• Component 2: Supporting microenterprises to enhance fisheries sector value chain efficiencies through performance grants.

• Component 3: Adoption and expansion of fish and fishery product safety and quality assurance systems, incentivizing micro and small enterprises.

• Component 4: Project management, monitoring, and reporting through the establishment of Project Management Units (PMUs).

With its comprehensive approach and focus on inclusivity, the scheme is poised to transform the lives of millions engaged in fisheries activities across India, fostering sustainable growth, job creation, and empowerment.

#Cabinet approves 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 estimated outlay of Rs.6,000… pic.twitter.com/XzLRXNTwv9
— PIB India (@PIB_India) February 8, 2024