Chairing a high-level meeting to review the ground water situation and discuss the implementation of the central scheme here, the chief minister gave his concurrence for the state's share of 40 per cent, amounting to Rs 3,448 crore against the total project cost of Rs 8,658 crore for Punjab.
He directed the concerned officials to immediately send the state's concurrence to the Ministry of Water Resources, Government of India, an official release said here.
He also ordered the formulation of a comprehensive policy through coordinated efforts of various departments handling the subject.
Giving details of the central scheme, an official spokesperson said it envisages the funding of 60:40 (Centre:State) at aggregate level.
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However, the central assistance can go up to 70 per cent if the project meets the performance criteria of timely completion, increased water use efficiency to the optimum level, and successful project implementation management, he said.
It will benefit approximately 3.10 lakh farming families of the state by providing assured supply of water to every farm field by bringing improvements in water-use efficiency, he said.
In addition, it will help reduce burden on the state government, as use of electricity for tubewells will be minimised, besides increasing agriculture production in the state, he said.
With almost the entire wetland area in the state having been destroyed in the past two decades, Punjab has one of the highest rates of decline in the water level, he said.
The state's water table is declining at an average rate of 1.6 ft/annum, as per available data, which further shows that the number of tubewells in the state have increased from 2 lakh in 1970-71 to 14.5 lakh in 2015-16, he said.
Increase in area under paddy, failure to promote crop diversification, lack of knowledge and application of water-saving techniques are some of the factors leading to the decline in the water table, he said.
Decrease in annual rainfall by 30-40 per cent in last three decades has reduced surface water availability and affected the natural recharge to ground water resources, thereby resulting in more stress on ground water, whose consumption is also increasing on the domestic and industrial fronts, he said.