‘Paani Bachao, Paisa Kamao' Scheme

Another Innovation in Punjab. To address the electricity–water–agriculture nexus problem in Punjab that has long confined the farmers, power utilities, consumers, and governments, an innovative approach was the need of the hour. In this article, Apoorva Bamal, Prajnasish Swain, and Amit Kumar tell us about the innovative ‘Paani Bachao, Paisa Kamao’ scheme in Punjab.

- Apoorva Bamal, Prajnasish Swain, and Amit Kumar

To achieve food security and make agriculture the primary source of livelihood for approximately 58 per cent of India’s population, remunerative for farmers; state governments across the country have been providing various subsidies for inputs such as fertilizers, power, water, and seeds, among others. However, over a period of time, these interventions have resulted in unintended adverse impacts, such as soil degradation, overuse of fertilizers and pesticides, groundwater depletion, and rising fiscal burden on governments. Also, the system of public procurement and minimum support price (MSP) has led to a shift from traditional, geographically more appropriate crops to water-intensive crops in many states. Free or highly subsidized electricity tariffs caused a rapid increase in the use of electrified pumpsets and a resultant proportionate surge in electricity consumption by agriculture consumers, leading to over-extraction of groundwater. As per the 15th Finance Commission report on agriculture subsidies, during 2015–16, the cumulative state governments’ agricultural power subsidy was approximately ₹90,000 crore, which is increasing exponentially.