To reduce groundwater waste and misuse, the Union Government intends to levy a tax on water used for agricultural purposes. In collaboration with state governments, the Union government will soon launch 22 pilot projects in various states. Farmers will receive enough water under this initiative and will be taxed based on how much they use.

Key Highlights

• Union government plans to introduce a farm water tax to promote sustainable agricultural water usage.
• The proposed tax aims to encourage water conservation and regulate irrigation practices among Indian farmers.

"We are in the process of finalizing pilot projects," said C R Patil, the Union Minister for Jal Shakti. "These will provide adequate water at a central location with sufficient pressure so that different farmers can use it according to their requirements. Users will be taxed based on the amount of water they use," he said.

According to the Annual Groundwater Extraction Report, the farm sector accounts for 87% of the 239.16 billion cubic meters (BCM) of water extracted. Indiscriminate extraction has resulted in severe groundwater depletion.

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The Centre has set aside Rs 1,600 crore for this scheme. The tax would be determined by the individual states. "It's critical to prevent misuse. Local water user associations, rather than the state, should levy taxes to reduce water waste," said Ashok K Meena, additional secretary, Department of Drinking Water and Sanitation."

When asked about India's position on the Ganga Water Treaty, which is set to expire next year, Patil stated that a decision would be made in the country's best interests because it is an international treaty. "The political situation in Bangladesh is not conducive to discussing another river treaty," Patil stated while speaking with journalists.