The National Medicinal Plants Board (NMPB) under the Department of Ayush has allocated Rs 120 crore to various state governments in the financial year 2009-10 under the National Mission on Medicinal Plants, a centrally sponsored scheme to promote cultivation of medicinal herbs in the country.

Under the Rs 630-crore scheme, approved by the Cabinet Committee on Economic Affairs (CCEA) in July 2008, the Board has sanctioned Rs 30 crore tentatively to eight states in the current financial year, according to NMPB sources. The Board is planning to increase the fund by four fold expecting participation of more states in the project with major medicinal plant cultivation projects in the coming financial year.

When contacted, B S Sajwan, chief executive officer, NMPB said, "The project got sanctioned considerably late in August 2008, which constrained the hasty disbursal of funds as per expectations of the board. Next year, we are expecting a quantum jump in investments under the mission and participation of more states." The central government has already kept budget outlay of Rs 120 crore for the process, he added.

The board has sanctioned projects to Madhya Pradesh, Maharashtra, Uttar Pradesh, Bihar, Karnataka, Kerala and Manipur in the current financial year. The projects were sanctioned tentatively and the board has suggested the state governments to come up with expanded project blue prints for the funds in the next financial year, according to board sources.

The board is also actively in talks with more state governments to attract more investments in medicinal plants cultivation under the scheme. The NMPB has been assigned as the body for implementing the NMMP scheme in the country through collaboration with the state governments and state medicinal plant boards.

Under the NMMP scheme, 80,000 to one lakh hectares of land is proposed to be covered with medicinal plants by 2011-12, to serve the herbal industry through direct financial assistance for plant cultivation.

Infrastructure for quality planting material, processing, warehousing, marketing, quality testing and certification will be promoted through cooperatives of growers, self-help groups, corporate etc. About 200 nurseries will be established both in public and private sector, for making available planting material of certified quality. The interventions are expected to generate approximately six crore man-days of employment by the year 2011-12, said Board sources.