The Punjab government is contemplating a reduction in canal water usage charges in an effort to discourage the extraction of groundwater, which is a major contributor to the state’s declining groundwater levels. Discussions on this matter have taken place between the Water Resources Department and the Finance Department, and the proposal awaits approval from Chief Minister Bhagwant Mann.
Farmers have not paid water bills for canal water usage for years
Farmers have not paid water bills for canal water usage for years, and previous governments have been reluctant to collect water cess, fearing a backlash from farmers. Outstanding dues from farmers for canal water usage amount to approximately Rs 208.21 crore.
Officials in the Water Resources Department believe that it would be beneficial to either eliminate or significantly reduce the water cess, as this could incentivize farmers to use canal water for irrigation. This shift could also reduce the government’s expenditure on power subsidies, as farmers may rely less on electricity-operated agricultural pump sets for groundwater extraction.
During the Akali-BJP government’s tenure from 2007-2012, the Irrigation Department introduced a ‘water cess’ of Rs 100 per acre per year, with the funds earmarked for channel cleaning and repair. The government also decided not to recover previously unpaid abiyana (water tax) during that period.
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