Incentivizing farmers in Punjab to save electricity and water

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00:07 70 year old Nirwal Singh has plowed these fields for as long as he can remember.

00:14 Today,

00:14 he says the water table has fallen so drastically that every year

00:18 he has to dig deeper to find water to irrigate his fields.

00:29 How did Punjab,

00:30 the land of five rivers,

00:32 reach such a water crisis?

00:34 While the fertile state led the green revolution

00:37 that helped India become a food secure nation,

00:39 some government incentives to increase food grain production

00:43 had unintended consequences.

00:46 The provision of free unmetered electricity for irrigation led Punjab's

00:50 farmers to turn to tube wells to irrigate their crops.

00:54 Since farmers had no incentive to save electricity,

00:58 they would often leave their pumps on for hours,

01:01 especially at night when power is often provided

01:04 for irrigation as other demands are low.

01:07 This led to both the rising use of electricity and rapid depletion of groundwater.

01:13 The cost of supplying free electricity for irrigation

01:16 places a huge financial burden on the state,

01:19 accounting for almost 1/3 of Punjab's fiscal deficit.

01:24 To address these interlinked issues,

01:26 the government of Punjab,

01:27 with World Bank support,

01:28 has piloted an innovative program called Pai Bachao Besikamau,

01:33 or Save Water,

01:35 Earn Money.

01:36 Farmers who sign up for the pilot program now receive between

01:40 5 to 8 hours of free but metered electricity a day,

01:44 depending on the crop season.

01:46 Smart meters measure the electricity used.

01:49 If a farmer uses less than the amount allocated,

01:52 he or she receives a cash transfer for every unit of electricity saved.

01:58 Some farmers also use a simple mobile app

02:01 to regulate their water use from wherever they are,

02:04 even from their homes at night.

02:07 Farmers are also taught water efficient practices and acquainted

02:08 with new varieties of rice that requires less water.

02:35 Together,

02:35 these measures have resulted in up to 30% saving in water and electricity,

02:40 while farmers have earned cash incentives totaling more than $350,000.

02:46 The program has since been scaled up

02:49 to more water-stressed districts of the state.

02:52 Other governments interested in delivering

02:54 power subsidies directly to consumers

02:56 can learn valuable lessons from Punjab's Pani Bachaw Besi Kamau program

03:02 that helped farmers save both electricity and water.

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70 year old Nirwal Singh has plowed these fields for as long as he can remember. Today, he says the water table has fallen so drastically that every year he has to dig deeper to find water to irrigate his fields. How did Punjab, the land of five rivers, reach such a water crisis? While the fertile state led the green revolution that helped India become a food secure nation, some government incentives to increase food grain production had unintended consequences. The provision of free unmetered electricity for irrigation led Punjab's farmers to turn to tube wells to irrigate their crops. Since farmers had no incentive to save electricity, they would often leave their pumps on for hours, especially at night when power is often provided for irrigation as other demands are low. This led to both the rising use of electricity and rapid depletion of groundwater. The cost of supplying free electricity for irrigation places a huge financial burden on the state, accounting for almost 1/3 of Punjab's fiscal deficit. To address these interlinked issues, the government of Punjab, with World Bank support, has piloted an innovative program called Pai Bachao Besikamau, or Save Water, Earn Money. Farmers who sign up for the pilot program now receive between 5 to 8 hours of free but metered electricity a day, depending on the crop season. Smart meters measure the electricity used. If a farmer uses less than the amount allocated, he or she receives a cash transfer for every unit of electricity saved. Some farmers also use a simple mobile app to regulate their water use from wherever they are, even from their homes at night. Farmers are also taught water efficient practices and acquainted with new varieties of rice that requires less water. Together, these measures have resulted in up to 30% saving in water and electricity, while farmers have earned cash incentives totaling more than $350,000. The program has since been scaled up to more water-stressed districts of the state. Other governments interested in delivering power subsidies directly to consumers can learn valuable lessons from Punjab's Pani Bachaw Besi Kamau program that helped farmers save both electricity and water.

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