As part of the strategy to arrest the rapid decline in groundwater level, the Planning Commission has recommended a cap of sorts on subsidy being given to farmers for use of electricity in pumping waters for agricultural purposes.

An expert group of the Planning Commission that looked into various issues relating to exploitation of groundwater, has recommended that a long-term strategy that links the extent of the subsidy with the reliability and duration of power supply can have positive results for groundwater management and viability of power sector.

“While the huge electricity subsidy may have contributed to the depletion of groundwater, a subsidy cut could have only marginal positive impact on extraction,” the committee said in its report submitted to Planning Commission Deputy Chairman Montek Singh Ahluwalia.

The committee, headed by noted economist Kirit S Parikh, noted, “Politically, it is difficult to raise power tariff for agricultural users. However, to make farmers accountable for the marginal cost of pumping water, they can be given upfront energy units at a fixed cost.”

The charges for their consumption should be deducted from this amount and the surplus, if any, be returned to farmers at the end of the year, it suggested and recommended that “this approach may be tested on a pilot basis”.

However, it has noted that the excessive exploitation of groundwater has resulted in one out of every four blocks in the country facing shortage of the critical resource, requiring urgent attention of policy markers.

Alarming situation
“The rate of extraction of groundwater is increasing. Twenty eight per cent of the blocks are now in semi-critical, critical or over-exploited stage,” it noted with concern.

As the quantity of groundwater available is limited, its increased exploitation by some deprives others of their rightful share, the committee said, adding that this also raises the costs of lifting water through deepening of wells and more powerful motors.

Calling for provisions to limit water extraction, the committee felt that the emphasis should be on balancing the land owner’s right to use groundwater and the public interest.