Optimizing groundwater usage through DBT in electricity: Lessons from Punjab-Part I

• by Anusha Jain and Diganta Nayak
• Mar 2, 2021
• 1 min
Download resource

This note discusses how free power to the agriculture sector has led to the overexploitation of groundwater in India. It highlights the case of Punjab, where the government launched Paani Bachao, Paise Kamao (Save water, earn money), an innovative pilot program for Direct Benefit Transfer in Electricity (DBTE), to address the rapidly declining water tables in the state.

Free or highly subsidized power to farmers in India has led to overconsumption of groundwater by the agricultural sector. The situation has reached a near-crisis level in many states due to these high subsidies. Unique models like Paani Bachao, Paise Kamao (Save water, earn money), the Direct Benefit Transfer in Electricity (DBTE) introduced in Punjab, offer a politically feasible and effective solution to the persistent issue of overuse of groundwater