Paani Bachao, Paise Kamao (PBPK) Scheme

Why it matters

Pays farmers real cash for every unit of electricity they save on tube-well irrigation, rewarding water conservation instead of just supplying free power.

What you get

Launched in 2018, Paani Bachao Paise Kamao is a Direct Benefit Transfer scheme that pays farmers Rs 4 for every unit of electricity saved on agricultural tube-well connections compared to a historical baseline, turning the existing free-power-for-agriculture policy into an incentive for restraint rather than a flat entitlement. Smart meters installed on tube-well connections track actual consumption, and savings are credited directly to the farmer's bank account. The scheme directly targets groundwater over-extraction, particularly from paddy irrigation, by financially rewarding farmers who use techniques like Direct Seeded Rice (DSR) and judicious irrigation scheduling rather than continuous flooding. It scaled from an initial pilot to around 250 feeders covering roughly 52,000 farmers across 11 water-stressed districts by 2019, with phased expansion since.

Eligibility criteria

• Farmer with a metered agricultural tube-well electricity connection in a notified feeder area
• Connection must have a smart meter installed under the scheme
• Savings measured against the farmer's own historical consumption baseline

How to apply

1. 1

   Get a smart meter installed on the tube-well connection through PSPCL in a notified feeder area

2. 2

   Adopt water-saving practices such as Direct Seeded Rice and scheduled irrigation

3. 3

   Savings against baseline automatically credited as DBT to the linked bank account

Documents required

• Electricity connection details
• Aadhaar-linked bank account
• Land record for the tube-well connection