Andhra to bear 80% cost of irrigation pumpsets

Move to cost government Rs 15,000 crore

In a major move, the Andhra Pradesh government has decided to replace the old and sub-standard irrigation pumpsets of 22 lakh-odd farmers, bearing 80 per cent of their cost in a phased manner.

Earlier, the government had made it mandatory for farmers, who are eligible for free power scheme, to replace their old pumpsets with new ISI-mark water lifters by 2008.

While the replacement of old pumpsets is aimed at bringing about energy efficiency, which is expected to yield 30 per cent savings on energy consumption, the decision to subsidise 80 per cent of the cost of replacement of pumpsets has been taken in view of perceived resistance from farmers on account of relatively high investment.

The state Cabinet, which met here today, endorsed the proposal that would cost the government dearly.

According to official sources, the estimated financial burden on account of 80 per cent subsidy is about Rs 15,000 crore. "Though the amount is quite huge, the government will implement the replacement in a phased manner which may extend beyond the earlier deadline," an official said, adding that the government would try to bring down the cost through rate negotiations with the pumpset manufacturers.

Besides the pumpset, the government will also provide new foot valve and a suitable pipe, which are also considered to be the cause of higher energy consumption in irrigation pumpsets, under this package.

"On an average, Rs 15,000 investment per farmer is required to be made for the replacement of a pumpset, of which a nominal 20 per cent cost would be borne by the beneficiary. Farmers will have to surrender their old pumpsets to the government following the replacement to ensure that they are not recycled," officials said.

The state government had in the past made it mandatory for farmers to install capacitors to their pumpsets. According to official information, about 95 per cent of the farmers who are enjoying free power had already complied with the government directions.