The TDP coalition government, which has been initiating private investments in the irrigation sector due to the severe financial crisis, is now preparing to privatize lift irrigation schemes. It is preparing to hand over the management of the schemes to private individuals in the Hybrid Annuity Model (HUM).
In this regard, the government has already issued a circular to the officials of the Irrigation Development Corporation across the state. It has asked them to prepare a report on the lift irrigation schemes that have been repaired in the district and the schemes to be constructed newly. It has suggested that reports be prepared on the amount of funds required for repairs and construction of new schemes.
With this, the officials have started working to that extent. A workshop was held with district officials in Amaravati in the first week of this month to hand over lift irrigation schemes in the HUM model. In this workshop, 999 lift irrigation schemes were identified across the state. These are irrigating 8.13 lakh acres.
The officials have been busy preparing these as the government has instructed them to send reports on the amount of funds required for lift irrigation schemes. It is reported that the government will call for tenders for these after the calculation of the funds required for the management of the schemes is known.
The private individuals selected in the tenders will be entrusted with the operation and maintenance for ten years in the HUM model. It is designed in a way that benefits them. It is reported that the HUM system has been formulated by modifying some aspects of the Public Private Partnership (PPP).
Since the HUM model is less risky for private individuals than the PPP Build Operate System (BOT), the government will implement this system for lift irrigation schemes. In the HUM model, the government will pay 40 percent of the funds to the private individuals in advance. If financial difficulties arise in the management of the schemes, the government will provide additional assistance.
There is a debate that the burden of lifting irrigation schemes will ultimately fall on the farmers by handing over the schemes to private individuals. Officials say that the government is considering the issue of collecting money from the farmers to that extent as there is a possibility of spending a large amount of money on the construction of pump houses, motors and electricity bills. The government is already collecting Rs. 200 per acre as water levy from farmers who are already receiving water through irrigation projects.