New pension scheme: Relief for farmers and traders under Modi 2.0

New Delhi, Sep 12: Farmers will get a gift in harvest season when Prime Minister Narendra Modi launches the Kisan Mandhan Yojana (KMDY) scheme.

Under the 'Pradhan Mantri Kisan Mandhan Yojana', all the small and marginal farmers who are currently between the ages of 18 to 40 years are eligible to avail the benefits.

The scheme targets 5 crore small and medium farmers and has an outlay of Rs 10,774 crore over the next three years.

The scheme is voluntary and contributory for farmers in the entry age group of 18 to 40 years and a monthly pension of Rs 3,000 will be provided to them on attaining the age of 60 years.

The farmers have to make a monthly contribution of Rs 55 to Rs 200, depending on their age of entry, in the pension fund till they reach the retirement date i.e. the age of 60 years. The Central Government will also make an equal contribution of the same amount in the pension fund.

The prime minister will also launch the 'Pradhan Mantri Laghu Vyaparik Mandhan Yojana' and 'Swarojgar' pension schemes under which beneficiaries between 18 and 40 years will get Rs 3,000 per month after completing 60 years of age.

Pradhan Mantri Kisan Samman Siddhi (PMKSS)

The Rs 75,000-crore Pradhan Mantri Kisan Samman Siddhi (PMKSS) was announced in the interim Budget under which the government decided to provide Rs 6,000 per year (in three equal instalments) to an estimated 12.5 crore small and marginal farmers holding land up to two hectares.

The revised scheme envisages covering around two crores more farmers increasing the coverage of the PM-KISAN to around 14.5 crore beneficiaries.

Pradhan Mantri Kisan Pension Yojana

The Cabinet also approved the Pradhan Mantri Kisan Pension Yojana under which small and marginal farmers will get a minimum fixed pension of Rs 3,000 per month on attaining the age of 60 years.

The government will cover a minimum of five crore small and marginal farmers in the first three years.

Extension of PM-KISAN scheme

The government had recently extended PM-KISAN scheme to all 14.5 crore farmers, costing Rs 87,000 crore a year, and also announced over Rs 10,000 crore pension scheme for five crore farmers, thereby fulfilling the BJP's poll promise.

It was in the run-up to the 2019 Parliamentary elections that PM Narendra Modi first mooted such an idea, which gradually found resonance across the length and breadth of India. Such a plan was mentioned in the BJP manifesto and in the first Cabinet meeting after the formation of a new Government, it has become a reality.