Ludhiana: 2,400 farmers reaped benefits of Paani Bachao, Paise Kamao scheme in five years
The initiative, launched in July 2019 in Ludhiana, incentivises farmers to reduce electricity consumption by conserving water amid rapid groundwater depletion
As many as 2,400 farmers in the rural areas of Ludhiana have enrolled in “Paani Bachao, Paise Kamao”—the Punjab State Power Corporation Limited’s (PSPCL) flagship scheme—over the last five years, officials said on Wednesday. As per the data released by PSPCL, it disbursed over ₹15.4 lakh incentives last year for saving approximately 3.85 lakh units of electricity.
The initiative, launched in July 2019 in Ludhiana, incentivises farmers to reduce electricity consumption by conserving water amid rapid groundwater depletion.
The scheme is currently operational in four divisions of Ludhiana—Doraha, Khanna, Raikot and Samrala—covering 16 agricultural feeders, including Loharmajra, Jallowal, Dulwan, Barwali Lehi, Julamgarh and Manupur.
“We have separate feeders for agricultural fields that we monitor. Earlier, there was a lot of wastage because farmers used to leave their motors running unnecessarily. Through this scheme, we incentivise them to save electricity and water,” said a PSPCL official from the central zone. Farmers enrolled in the programme also receive two extra hours of electricity supply during the day, he said.
Notably, the Punjab government introduced this scheme in 2018 as a pilot project to combat groundwater depletion, a pressing issue in the state where paddy cultivation relies heavily on underground water sources where the initiative links power consumption with financial rewards, encouraging efficient use of electricity and water.
Under the scheme, farmers are allocated a fixed electricity quota based on land size and crop type. If they use less than the allocated amount, they earn ₹4 per kilowatt-hour (kWh) for the saved electricity, which is transferred directly to their bank accounts. However, if they exceed the quota, they must pay for the extra consumption, officials explained.
The scheme was introduced in Ludhiana in July 2019, as it is one of Punjab’s most water-stressed districts, classified under the “critical” category due to rapid groundwater depletion where the high concentration of tube wells in the district has significantly lowered water tables.
Farmers reaping benefits
Harjeet Singh, a farmer from Payal village, shared his experience: “Earlier, I used to over-irrigate my fields without realising how much water I was wasting. After enrolling in the scheme, I started receiving direct financial incentives for using less electricity to pump groundwater. This scheme not only helped me reduce my water consumption but also gave me extra income. Now, I plan my irrigation more efficiently, and I’ve seen no drop in crop yield.”
Baldev Singh, another beneficiary from Jarg village, highlighted how the scheme helped him cut down on costs: “I was skeptical at first, but decided to try it. I received guidance on scheduling irrigation efficiently, and soon, I was using less electricity. To my surprise, I started receiving incentive payments directly into my account. In the last season, I saved about 1,200 units of electricity and earned nearly ₹4,800 as a reward. This extra income has helped me cover farming expenses.”
Chief engineer Jagdev Singh Hans said, “We are actively encouraging more farmers to participate in this scheme, which is vital in reducing unnecessary electricity use and conserving water.”