Policy Update
Tuba Athar
Source- Atal Bhujal Yojna – UDAAN Society
Background
Groundwater is a significant source of freshwater and is crucial for domestic, agricultural, and industrial purposes. However, unchecked extraction, overexploitation, and contamination pose serious threats to its sustainability. The Central Government recognized the importance of sustainable groundwater management. It launched Atal Bhujal Yojana (Atal Jal) on April 1, 2020, for 5 years (2020-21 to 2024-25) with a total outlay of Rs. 6000 Crore (Rs. 3000 Crore from the Government of India and Rs. 3000 Crore from the World Bank). The launch of Atal Bhujal Yojana heralded a paradigm shift in the government policy of groundwater management in the country from the predominantly supply-side augmentation approach to one aiming at reducing the demand for water for various uses and ensuring active community participation.
Objectives
The scheme’s primary objective is to improve the management of groundwater resources in selected water-stressed areas in identified states, viz. Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh, and ensure sustainable groundwater management through a community-driven approach. The other objective of the Atal Bhujal Yojana is to bring about behavioural change at the ground level.
The specific objectives include:
- Strengthening institutional frameworks for groundwater management.
- Developing Water Security Plans at the Gram Panchayat level.
- Encourage demand-side management through drip irrigation, watershed management, and climate-resilient farming.
- Enhancing supply-side interventions by constructing recharge structures like check dams, percolation tanks, and farm ponds.
- Building community awareness through education, participatory rural appraisals, and training programs.
- Ensuring equitable access to groundwater resources to benefit both agricultural and domestic users.
Functioning
The programme is implemented through a four-pronged strategy.
A. Decision support tools for groundwater management: A Management Information System (MIS) is being developed to operationalise and standardise implementation across the Participating States.
B. Strengthen community-based institutions to foster management: The incentives provided under ATAL JAL will trigger initiatives to strengthen enabling institutions and build the required information base for bottom‐up, participatory planning and implementation of appropriate interventions in groundwater management and use.
C. Improve water use efficiency and enhance groundwater recharge: The Program supports volumetric metering and real‐time data systems, as well as raising awareness about the importance of good groundwater governance.
D. Fiscal decentralisation: The program not only focuses on building state institutions but also supports the general move of the Government of India (GoI) towards fiscal decentralisation. In ATAL JAL, funds are to flow from the central government to the states and from there onwards to the appropriate implementing levels (districts, blocks, GPs, and beneficiaries).
Overview of implementing agencies
Central level: At the central level, the Central Ground Water Board (CGWB) under the MoWR, RD&GR will steer the ‘Atal Bhujal Yojana’ project both at the National and State / District levels in respect of both Institutional Strengthening & Capacity Building as well as the Incentive Component.
State level: At the state level, State Program Implementation Agency (SPIA) and Technical Support Agency/Nodal agencies like Water Resource Departments, Agriculture Departments, Departments of Public Health and Engineering, Department of Panchayati Raj, etc, will be responsible.
District level: District Program Management Unit (DPMU) will be established in each program district identified, to support the state and the Gram Panchayats (GPs) in implementing activities under Atal Bhujal Yojana. The DPMU will be responsible for planning and supervision of the implementation of the scheme at the District level.
Gram Panchayat level (GP): GPs have a key role in implementing the Atal Bhujal Yojana, being the last tier of administration and the critical link between the community and the administration. Every GP will strengthen the Water Management Committees/Village Water and Sanitation Committee (WMC / VWSC) with additional co-opted members, including women.
The Program places emphasis on strengthening institutional coordination across departments and agencies, building the central‐state‐district links. This includes (a) establishment of national‐ and state‐ 20 level inter‐agency Steering Committees to improve coordination across various departments and agencies related to groundwater management, (b) disbursement of funds to the states based on achievement, (c) hiring of TSAs at the national and state levels and SOs to bridge capacity gaps and build capacity in public institutions, and (d) development of an integrated MIS that increases the flow of information and eases the implementation of standardized Program procedures.
Monitoring and Evaluation
All implementing agencies are required to share their respective annual work plans, which will be used for results forecasting and to determine annual investment requirements. Independent verification and monitoring assessments are undertaken with the support of IVA, operating in accordance with agreed protocols.
Budget Allocation
The scheme’s ₹6,000 crore budget is allocated into two key components:
i. Institutional Strengthening & Capacity Building (₹1,400 crore): Supports scientific data collection, hydrological research, governance reforms, and institutional capacity-building.
ii. Incentive-Based Performance Grant (₹4,600 crore): Rewards states based on their achievement of key performance indicators, including improved groundwater recharge, behavioral change, and successful implementation of Water Security Plans.
Project Beneficiaries
• Women, small marginal farmers, and agricultural labourers
• Central and state government agencies are responsible for groundwater management
• Population affected by floods and droughts, destitute people living in rural areas
• Environment and agriculture ministries; research and educational institutions; NGOs; civil society organizations; students and researchers; and the private sector
Implementation
| States | No. Of the districts covered | No. Of blocks covered | No. Of the Gram Panchayat covered | Fund allocation (2020-21) in crore | Fund allocation (2021-22) in crore |
| Madhya Pradesh | 6 | 9 | 670 | ₹6.33 | ₹46.57 |
| Uttar Pradesh | 10 | 26 | 549 | ₹7.69 | ₹32.33 |
| Haryana | 14 | 36 | 1,647 | ₹20.80 | ₹32.15 |
| Gujarat | 8 | 20 | 1062 | ₹10.45 | ₹28.50 |
| Rajasthan | 17 | 38 | 1132 | ₹22.05 | ₹46.35 |
| Karnataka | 14 | 11 | 1199 | ₹21.52 | ₹73.62 |
Source: https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1843394, Atal Bhujal Yojana | Objectives, Aim, Budget, Key States, https://atalbhujal.karnataka.gov.in/40/about-project/en
Achievements
A) Strengthened institutional framework and effective groundwater data monitoring and disclosure
B) Improved planning and implementation of groundwater management interventions
C) Communities in all 8220 Gram Panchayats mobilized through existing village and water and sanitation committees
D) Community-led water security plans (WSPs) prepared in all 8220 Gram Panchayats
E) Almost Rs. 1575 crore released till now, including Rs. 1194 crore for incentives after achieving results
F) Construction of thousands of check dams, percolation ponds, and farm-level water conservation structures has enhanced groundwater recharge
G) More than 50,000 farmers have adopted water-saving irrigation methods and precision farming
Issues and Limitations
However, the program is not without challenges, which range from data problems to meaningful participation of the community.
A. Data Challenges: There is a lack of updated, high-quality, and real-time groundwater data in many rural areas, moreover involves many agencies that further fragment it.
B. Behavioral and Institutional Resistance: Groundwater is often treated as a private resource, leading to resistance against collective regulation.
C. Weak Community Participation: Despite being a community-driven program, genuine participation at the panchayat or user group level is limited. Moreover, awareness campaigns often do not reach marginalized groups like smallholders, women, or landless laborers.
D. Limited Coverage: Only seven states and 8,350 Gram Panchayats are covered, whereas groundwater depletion is a nationwide concern. And excludes eastern and northeastern states, which also face water table stress in some pockets.
E. Lack of Convergence with Other Schemes: Poor integration with related schemes like MGNREGA, Jal Shakti Abhiyan, or PM-KUSUM. A fragmented approach leads to inefficiency in using funds and local capacity. Integration could significantly enhance its effectiveness by creating synergies in planning, resource use, and community participation.
Way forward
Though the scheme’s vision of being bottom-up is commendable, it seeks to empower the local community, who are significant stakeholders in water-related issues. Moreover, it has been able to effectively mobilise the community, and community-led water security plans have been made, but it remains far from achieving all of its objectives. To make it more workable, there could be an improvement in data infrastructure, strengthening community institutions by including other marginalized sections like local women, youth, and farmers in planning exercises. Moreover, other ways could be promoting water-efficient technologies and expanding their coverage to more water-stressed regions. While Atal Bhujal Yojana is a promising step toward sustainable groundwater management, it needs deeper integration of local communities, better data use, and broader coverage.
References
1. Chaudhary N. (2025, February 3). Atal Bhujal Yojana | Objectives, Aim, Budget, Key States Atal Bhujal Yojana | Objectives, Aim, Budget, Key States
2. Press Information Bureau. (2023, June 23). Atal Bhujal Yojana: Safeguarding Groundwater for a Sustainable Future. https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/jun/doc2023623216801.pdf
3. Press Information Bureau. (2022, July 21). Atal Bhujal Yojana. https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1843394
4. https://atalbhujal.karnataka.gov.in/40/about-project/en, retrieved on July 23, 2025
5. https://ataljal-mis.mowr.gov.in/About/About, retrieved on July 23, 2025
6. https://ataljal.hid.gov.in/, retrieved on July 23, 2025
7. World Bank. (2018). ATAL BHUJAL YOJANA (ABHY) ‐ NATIONAL GROUNDWATER MANAGEMENT IMPROVEMENT PROGRAM. https://documents1.worldbank.org/curated/en/697581528428694246/pdf/India-PAD-126071-IN-05162018.pdf
About the contributor
Tuba Athar is a research intern at IMPRI. She is pursuing a PhD from the Centre for the Study of Regional Development, Jawaharlal Nehru University, New Delhi.
Acknowledgement
The author sincerely thanks Aasthaba Jadeja and other IMPRI fellows for their valuable contribution.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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