Atal Bhujal Yojana - ABY Scheme

By : Neha Dhyani

Updated : Dec 20, 2022, 17:54

Atal Bhujal Yojana (ABY) is a flagship central government scheme to facilitate and streamline sustainable groundwater management. This scheme is applicable to seven states of India where the groundwater levels are low. Atal Bhujal Yojana was launched by PM Narendra Modi on former PM Atal Bihari Vajpayee's 95th birth anniversary, on 25th December 2019.

In 2018, the Atal Bhujal Yojana was approved by the World Bank and now the organization funds this scheme. We have shared further information about the ABY scheme, its launch date, and the state list where this scheme is valid here.

Atal Bhujal Yojana - Overview

Atal Bhujal Yojana will focus on demand-side interventions and community participation for sustainable groundwater management in 8,353 notable water-stressed Gram Panchayat areas. Under the Atal Bhujal scheme, seven Indian states (Gujarat, Haryana, Karnataka and Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh) will receive funds as grants-in-aid to improve the condition of groundwater levels there.

For the ABY scheme, the World Bank will disburse the funds to participating states depending on their performance in pre-agreed parameters. Here we have shared a brief overview of the Atal Bhujal Yojana

Scheme

Atal Bhujal Yojana

Launched By

PM Narendra Modi

Launched On

25th December 2019 under Jal Jeevan Mission

Funded By

World Bank

Significance

Atal Bhujal Yojana was launched to aid states in sustainable groundwater management.

Atal Bhujal Yojana - Scheme Details

To tackle the crisis of depleting groundwater levels in the water-stressed states the central government introduced the Atal Bhujal Yojana (ABY) under the Jal Jeevan Mission. In budget 2016-17 The scheme was announced as National Groundwater Management Improvement Scheme (NGMIS). The scheme is renamed Atal Bhujal Yojana.

Since 2018, the Atal Bhujal Yojana is being funded by the World Bank. This scheme will be implemented by the Ministry of Water Resources, River Development, and Ganga Rejuvenation in seven states of India.

States covered under the ABY scheme:

  • The Atal Bhujal Yojana is launched in water-stressed states of India, which includes Gujarat, Haryana, Karnataka, Maharashtra, Uttar Pradesh, Rajasthan and Madhya Pradesh.
  • In total, the ABY scheme will cover 78 districts, 193 blocks and more than 8,300 Gram Panchayats across these states.

Duration of the Atal Bhujal Yojana

  • The duration of the Atal Bhujal Yojana will be five years.
  • Through the ABY scheme, the government has taken many initiatives to encourage participatory groundwater management by facilitating an enabling environment, creating a knowledge base, sensitizing communities and building capacities.
  • The Atal Bhujal Yojana will be valid till 2025.

Significance of Atal Bhujal Scheme

Atal Bhujal Yojana was held to deliberate upon the urgent need for participatory groundwater management in the country. On 9th February 2018, under the Chairmanship of Union Minister Shri Nitin Gadkari, the Consultative Committee of the Ministry of Water Resources, River Development and Ganga Rejuvenation held a meeting in New Delhi.

Atal Bhujal Yojana is a significant scheme focused on helping Indian states improve their groundwater levels. Before the Atal Bhujal Scheme was launched, the following statistics were discovered -

  • Groundwater in India provides for about 60% of the country’s irrigation needs, 85% of rural drinking water requirements and 50% of urban water needs.
  • As per 2013 data, 4 per cent of Ground Water assessment units in the country is in a critical state and 10 per cent in a semi-critical state due to over-exploitation and contamination.
  • Therefore, Atal Bhujal Yojana is an important step in improving the groundwater situation in Indian states.

Objectives of Atal Bhujal Yojana

Atal Bhujal Yojana aims to improve groundwater sustainability under the Jal Jeevan Mission. Besides this, the scheme aspires to support the Indian government's objective of doubling farmers' income and encouraging communities to use water optimally. Here are the objectives of the Atal Bhujal Yojana -

  • The main objective of the ABY scheme is to boost groundwater levels and create sufficient water storage for agricultural purposes.
  • The scheme focuses on the renewal of surface water bodies so that groundwater levels can be increased, especially in rural areas.
  • Atal Bhujal Yojana will enable the Indian states to recharge groundwater sources and ensure efficient use of water by involving people at the local level.

Total Budget of Atal Bhujal Scheme

The Atal Bhujal scheme is managed and implemented by the Ministry of Jal Shakti's Water Resources Department. Of the total outlay of INR 6,000 crore in the ABY scheme, INR 3,000 crore will come as a loan from the World Bank, while the Government of India (GoI) will disburse INR 3,000 crore as a matching contribution. Here are the total budget details of the Atal Bhujal Yojana -

  • The total budget of the scheme is INR 6,000 crore.
  • Half of the total project cost will be supported by the central government and the rest of the budgetary cost will be shared by the World Bank.
  • In 2018, the World Bank approved the funding request for the Atal Bhujal Yojana.

Key Components of Atal Bhujal Yojana

Atal Bhujal scheme has two key components - the Institutional Strengthening and Capacity Building component and the Incentive Component. The details of these components is shared below -

  • The total value of the Institutional Strengthening and Capacity Building component is INR 14,000 crore. Its primary goal is to enable community participation and strengthen institutional arrangements for sustainable water resource management through a solid database and scientific approach.
  • Furthermore, the Incentive component of INR 4,600 crore will acknowledge and honour the contribution of the States by incentivising them.

The incentive value in the Atal Bhujal Yojana will be determined based on the states' performance in predefined parameters, emphasising demand management and community participation. Also, the incentive will depend on the increase in the groundwater regime and the convergence of various active Central and State schemes.

Atal Bhujal Scheme - Funding Parameters

The Atal Bhujal Scheme is a pioneering initiative of the Government of India and the World Bank to improve groundwater levels in the dry areas of seven Indian states. The project is expected to end by 2025. The Government of India has identified five parameters, also known as Disbursement Linked Indicators or DLIs, based on which the incentive amount under the Atal Bhujal Yojana will be granted. Here is the list of the five DLIs:

  • Public disclosure of the groundwater level-related data, information, and reports - 10% of the incentive fund
  • Preparation of Water Security Plans led by communities - 15% of the incentive fund
  • Public financing of the interventions through ongoing convergent schemes - 20% of the incentive fund
  • Adoption of the best practices for efficient use of water - 40% of the incentive fund
  • Improvement in the rate of declining groundwater levels - 15% of the incentive fund
  • The incentive funds are fungible, and states or areas performing better than others may receive additional funds.

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FAQs on Atal Bhujal Yojana

Q.1) What is Atal Bhujal Yojana?

Atal Bhujal Yojana is a flagship central government scheme to facilitate and streamline sustainable groundwater management. Atal Bhujal Yojana is implemented and regulated by the Ministry of Water Resources, River Development, and Ganga Rejuvenation, Government of India.

Q.2) When was the Atal Bhujal Yojana launched?

Atal Bhujal Yojana was launched by Prime Minister Narendra Modi on 25th December 2019 to mark former Prime Minister Atal Bihari Vajpayee's 95th birth anniversary. Atal Bhujal Yojana was launched to tackle the crisis of depleting groundwater levels.

Q.3) What is the aim of the Atal Bhujal Yojana?

Atal Bhujal Yojana focuses on demanding interventions and community participation for sustainable groundwater management. Atal Bhujal Yojana is valid in 8,353 notable water-stressed Gram Panchayat areas in the seven states of Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh.

Q.4) How many states are involved in the Atal Bhujal Yojana?

There are seven states involved in the Atal Bhujal Yojana. The seven states are Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh. Atal Bhujal Yojana focuses on helping the Indian states improve their groundwater levels.