As governments search for ways to make irrigation cleaner, cheaper and less risky, one question remains unanswered: Can a model designed in one State travel to others? The pressures are similar everywhere — agriculture dependent on erratic power and costly diesel; distribution companies burdened by subsidies; and farmers in need of reliable daytime water without a bill they fear. Any scalable solution must address all three.

Maharashtra’s solar pump programme is among the clearest attempts to do so. What began as a way to stabilise irrigation and reduce farm power subsidies has evolved into a structured model that other states — and even other countries — are now adapting.

Scalable and simple

Under the Magel Tyala Saur Krishi Pump Yojana (MTSKPY), Maharashtra set out to install five lakh solar pumps over five years. The PM-KUSUM scheme (Component B) added another 2.75 lakh sanctioned systems. Together, these pumps — expected to be largely in place this year — are projected to irrigate about 10.45 lakh hectares and save roughly ₹4,980 crore annually in avoided subsidies. These numbers matter, but the model’s appeal lies less in its scale and more in the simplicity and repeatability of its design.

The model’s first pillar is equity by design. Eligibility and pump capacity are transparently linked to landholding: farmers with up to 2.5 acres receive 3 HP pumps; those with 2.5–5 acres get 5 HP; larger holdings qualify for 7 HP. A 60:30:10 allocation between small, marginal and larger farmers ensures that smallholders — about 85 per cent of the beneficiaries — are prioritised. This limits discretion and makes replication easier elsewhere.

The second pillar is vendor selection and accountability. Maharashtra State Electricity Distribution Co Ltd (MSEDCL) runs a competitive tendering process with strict pre-qualification, technical evaluation and empanelling by a technical committee. Today, dozens of vendors — 42 under MTSKPY 01 and 60 under MTSKPY 02 — operate under central oversight, enabled by real-time digital tracking. Contracts mandate resolution of complaints within three days; unresolved cases are automatically escalated to MSEDCL, with penalties and blacklisting for repeat violations. Data from 2025 shows that a majority of the complaints were resolved within 72 hours, suggesting that enforcement — not just design — matters.

Financing forms the third pillar. Farmers contribute 10 per cent of the capital cost (5 per cent for SC/ST households), with the remainder funded through a mix of Asian Infrastructure Investment Bank (AIIB) loans, government subsidies, State funds and revenue from the Tax on Open Sale of Electricity (TOSE). Rather than relying heavily on grants, the structure targets a three- to five-year payback through avoided subsidies — an attractive shift for treasuries struggling with rising power support bills.

The fourth pillar is digital infrastructure. A unified beneficiary portal tracks applications and installations in real time. Basic AI analytics flag allocation anomalies and predict maintenance needs, while SMS-based helplines give farmers a simple escalation channel. By keeping much of this architecture standardised, Maharashtra has lowered the barrier for other states to adopt similar systems without rebuilding everything from scratch.

The fifth pillar is demonstrable replication. Rajasthan has adopted land-based allocation and TOSE-linked funding for about two lakh solar pumps in the Thar desert. Gujarat has applied the 60:30:10 ratio under its Surya Gujarat Yojana, coupled with tighter vendor accountability, for roughly 1.5 lakh installations. Uttar Pradesh has adapted the eligibility rules, vendor framework and hybrid financing to suit its diverse agro-climatic zones, with early estimates pointing to about ₹2,000 crore in subsidy savings by 2027.

By the third quarter of 2025, data from the Ministry of New and Renewable Energy showed that 12 states had launched pilots incorporating elements of Maharashtra’s approach — whether in eligibility norms, financing structures or monitoring tools.

Global alternative

Beyond India, AIIB has highlighted Maharashtra’s experience in its lending for similar schemes in Bangladesh, Kenya and Vietnam. Bangladesh has installed around one lakh solar pumps, largely for smallholders, while Vietnam has blended TOSE-like levies with local taxes in the Mekong Delta. A 2025 AIIB report notes faster deployment and higher farmer satisfaction, compared with grant-heavy alternatives.

None of this makes Maharashtra’s programme a one-size-fits-all solution. States differ in climate, politics and administrative capacity.

But early multi-State and international experience suggests that certain building blocks — transparent eligibility, standardised procurement, farmer-friendly financing and digital tracking — travel remarkably well.

Decentralised solar irrigation organised along these lines offers a credible, scalable path forward for governments tackling water stress, energy inefficiency and farm income risk.

(The writer is a former secretary general of the Federation of Indian Chambers of Commerce and Industry)

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Published on January 19, 2026