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Survival of living beings depends primarily on food, water, air and other basic necessities. Economic development — including access to safe drinking water, processing of food and dairy products, transport systems, healthcare services and overall human comfort — depends significantly on energy utilisation. Electricity, in particular, is the most convenient, clean and versatile form of energy in terms of its use and applicability across sectors.
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Electricity generation involves harnessing both fossil and non-fossil resources. Optimum utilisation of these resources benefits humankind, whereas unwise exploitation leads to environmental degradation and poses serious threats to human and other living beings. A balance, therefore, must always be maintained between development and sustainability.
Among the critical aspects requiring urgent attention is the depletion of groundwater. Crops require water, and water is essential in almost every sphere of life. Industrial and drinking water needs are of paramount importance. A related and increasingly serious issue is the lack of proper water conservation and the inefficient use of irrigation pump sets for highly water-intensive crops. As a consequence, the groundwater table is gradually declining in many regions.
It is necessary to adopt a multidisciplinary approach to sensitise farmers to water conservation measures and to promote the efficient use of irrigation pump sets and agricultural machinery. Rational use of water contributes to healthy crop growth, soil conservation and improved nutrient absorption. Proper irrigation practices ensure soil fertility and long-term agricultural sustainability.
Tube-well irrigation is widely prevalent across the country. Groundwater extraction has reached alarming levels in several regions. Certain areas have been declared “dark zones” by groundwater authorities, where further drilling of borewells is legally prohibited. However, unauthorised borewells continue to be drilled, aggravating the situation.
Excessive groundwater extraction not only threatens water security but also increases electricity consumption, as water must be pumped from greater depths year after year. This creates a vicious cycle of resource depletion and rising energy demand.
Cropping patterns in many states are driven by immediate gains and profit considerations rather than long-term sustainability. The supply of electricity to irrigation pump sets at highly subsidised or even free rates has distorted consumption behaviour. Over the past few decades, cross-subsidies in electricity tariffs have increased to unsustainable levels.
Cross-subsidies tend to conceal operational inefficiencies and financial losses. There is an urgent need to correct this imbalance without imposing sudden tariff shocks on consumers. Reform must be gradual, transparent and well-calibrated.
Existing cross-subsidies in electricity tariffs need to be reduced progressively in a time-bound manner. This process must be carefully planned and implemented with clear milestones. Some State Electricity Boards and DISCOMs charge extremely nominal tariffs to the agricultural sector. While such measures may provide short-term political gains, they create long-term financial stress for utilities.
Reasonable cost recovery from the agricultural sector is closely linked to political commitment and leadership support for reform efforts. The perception that free or highly subsidised power is a fundamental right must be revisited. Electricity, like any other essential service, involves costs that must be managed responsibly.
There is a need to define the “creamy layer” among farmers — those who are economically capable of paying reasonable tariffs — and distinguish them from small and marginal farmers who genuinely require support. The former group is in a better position to pay for the electricity they consume. A national-level decision is required to ensure that subsidies are targeted exclusively towards small and marginal farmers. Simultaneously, state governments should encourage cropping patterns aligned with local water-table conditions to reduce groundwater stress.
A structured financial roadmap must be developed to gradually reduce subsidy dependence. Annual targets should be fixed for each DISCOM, with measurable benchmarks and performance monitoring. The Ministry of Power should circulate a comprehensive consultation paper on reducing cross-subsidies, consolidating all related issues while building political consensus on this critical reform.
State governments have prioritised lift irrigation schemes to reduce groundwater exploitation. High-tension lift irrigation schemes are generally provided with dedicated feeders to ensure reliable supply. Such schemes, when properly designed, can reduce pressure on groundwater resources while ensuring efficient water distribution.
Another effective measure to reduce peak demand is the irrigation feeder separation scheme. Under this arrangement, composite feeders supplying both agricultural pumps and nearby villages are separated into dedicated feeders — one exclusively for agricultural pumps and another for village loads.
This enables agricultural feeders to be supplied electricity during defined off-peak or solar hours, typically for 8-to-10 hours, while remaining switched off during peak demand periods. Such scheduling reduces peak load pressure on the grid and promotes efficient resource utilisation.
Assured supply during fixed hours is often more acceptable to farmers than uncertain supply throughout the day. Moreover, future water conservation imperatives may require limiting agricultural pumping hours, making such schemes even more relevant.
Metered irrigation feeders also generate measurable consumption data, improving revenue collection for utilities. In selecting feeders for separation, priority should be given to areas where agricultural load is high and the resultant feeder length after separation is manageable.
When electricity is supplied at no cost, consumers often lack incentive to conserve energy. Farmers may not prioritise energy-efficient motors or water-saving devices. In some cases, pump sets are left running unnecessarily, resulting in wastage of water and electricity.
DISCOMs incur additional losses due to low power factor in rural grids and the high capital cost of laying long lines in remote areas. Declining water tables further increase energy consumption annually. Governments have often failed to compensate utilities adequately for subsidy burdens, weakening their financial health.
Another major weakness of many utilities is the delay in tariff revision. Inadequate subsidy reimbursement further deteriorates financial conditions, preventing necessary system strengthening.
However, challenges arise during drought years when hydro generation drops significantly below average levels. Power purchase costs increase, and water must be pumped from deeper wells for irrigation and drinking. In such circumstances, imposing higher tariffs may not be socially desirable, making financial break-even difficult.
Governments sometimes accelerate the release of large numbers of agricultural connections to reduce pending applications. While politically appealing, such measures often result in further groundwater depletion and increased system burden — higher peak demand, greater line losses, revenue stress, supply interruptions and distribution transformer failures. These outcomes are counterproductive and place avoidable strain on both DISCOMs and groundwater resources.
Electricity is a concurrent subject under the Constitution. The Electricity Act, 2003 defines the roles and responsibilities of the Central and state governments and statutory bodies. The Central Government has consistently engaged with states to implement reform provisions under the Act.
Reform outcomes indicate:
· A trend towards reducing AT&C losses
· Increased and more focused investments
· Capacity addition and system strengthening
· Reduction of inefficiencies
· Improved customer care
· Progress in metering, billing and collection
· Increased accountability of utilities
· Establishment of regulatory mechanisms
· Empowerment of consumers
· Regular performance monitoring
These reforms have improved supply quality and reliability. However, studies highlight internal resistance and political interference as persistent challenges. Restructuring requires strong political will and sustained commitment.
To deepen reform, the following measures are essential: clear and consistent policy statements, financial and technical support to states, transparent human resource policies, the establishment of a Power Sector Reforms Fund and strengthening utility governance through independent directors. Reforms must be continuous rather than episodic. Sustainable improvements require institutional commitment and long-term planning.
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Balancing food security with water conservation demands rational irrigation practices. Sprinkler and drip irrigation systems can reduce water use. Water-intensive crops should be cultivated in suitable agro-climatic zones. Incentivising farmers to shift from paddy to less water-intensive crops in states, such as, Punjab and Haryana, would significantly reduce electricity consumption and groundwater extraction.
Lower agricultural electricity demand reduces fossil fuel dependence and associated emissions. Restoration of ponds and conservation of water bodies can help stabilise groundwater levels. Deployment of energy-efficient irrigation pumps and appliances further enhances conservation.
By aligning agricultural practices, water management and electricity pricing reforms, India can simultaneously advance energy transition, water security and food security. Reduced fossil fuel consumption and greater reliance on renewable energy will improve environmental quality and strengthen self-reliance.
Sustainable power sector reform is therefore not merely an economic necessity; it is fundamental to safeguarding long-term ecological balance, ensuring food and water security, and building a resilient, self-reliant nation.
Disclaimer: This is an Op-ed article. The opinions expressed in this article are the author's own. PSU Watch does not endorse nor support views, opinions or conclusions drawn in this post and we are not responsible or liable for any content within the article or for any damage or loss caused by and in connection to it.
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