Atal Bhujal Yojana - ABY Scheme

By : Neha Dhyani

Updated : Apr 15, 2022, 13:32

The Atal Bhujal Yojana or Atal Bhujal scheme is a flagship central government scheme to facilitate and streamline sustainable groundwater management.

The scheme was launched by Prime Minister Narendra Modi on former Prime Minister Atal Bihari Vajpayee's 95th birth anniversary on 25th December 2019.

Atal Bhujal Yojana - Objectives

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 Atal Bhujal 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.

The scheme will focus on demand-side interventions and community participation for sustainable groundwater management in 8,353 notable water-stressed Gram Panchayat areas in Gujarat, Haryana, Karnataka and Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh.

The scheme also aims to improve source sustainability for 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.

Under the Atal Bhujal scheme, seven Indian states will receive funds as grants-in-aid. The World Bank financing will come under the Program for Results (PforR), a new lending instrument. The World Bank will disburse the funds to participating states depending on their performance in pre-agreed parameters.

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Atal Bhujal Yojana - Key Components

Atal Bhujal scheme has two key components - the Institutional Strengthening and Capacity Building component and the Incentive Component.

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 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 groundwater regime and the convergence of various active Central and State schemes.

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Disbursement Linked Indicators of the Atal Bhujal scheme

The Government of India has identified five parameters, also known as Disbursement Linked Indicators or DLIs, based on which the incentive amount 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.

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.

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FAQs on Atal Bhujal Yojana

Q.1) What is Atal Bhujal Yojana?

Atal Bhujal Yojana or Atal Bhujal scheme is a flagship central government scheme to facilitate and streamline sustainable groundwater management.

Q.2) What is the total outlay of Atal Bhujal Yojana?

Of the total outlay of INR 6,000 crore in the Atal Bhujal 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.

Q.3) When was the Atal Bhujal Yojana launched?

The Atal Bhujal Yojana was launched by Prime Minister Narendra Modi on former Prime Minister Atal Bihari Vajpayee's 95th birth anniversary on 25th December 2019.

Q.4) What is the goal of the Atal Bhujal Yojana?

The 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 in Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh.