Paani Bachao Paisa Kamao Scheme
₹4 for every unit of electricity you do not draw for your tubewell — the free power stays free, and saving it now pays.
Run by: Department of Power, Government of Punjab (implemented by PSPCL)
- Incentive
- ₹4 per unit (kWh) saved
- Free power
- Unaffected — paid on top
- Penalty for overuse
- None
- Allocation
- Fixed per pump HP and crop season
- Enrolment (2021)
- ~2,430 connections, ~259 feeders
Overview
Farm power in Punjab is free, which means there is no bill to reduce and therefore no reason to pump less. Paani Bachao Paisa Kamao — officially the Direct Benefit Transfer through Electricity (DBTE) scheme — fixes that without charging anyone: each enrolled tubewell is given a unit allocation for a two-month billing cycle, and PSPCL pays ₹4 in cash for every unit the farmer stays under it. The free supply is untouched and nothing is deducted for going over — the worst case is that you earn nothing that cycle.
Punjab's Department of Power designed the scheme; PSPCL runs it, Punjab Agricultural University is the nodal body, and it was set up with World Bank support and field help from TERI. It began as a pilot on 25 June 2018 on six agriculture feeders in Fatehgarh Sahib, Jalandhar and Hoshiarpur. In June 2019 it was notified for a second phase across about 250 feeders in 11 water-stressed districts, covering roughly 52,000 connections.
The allocation is not a flat number — it is set from the pump's horsepower and the crop season, since the paddy months need more water than the rest of the year. Enrolled connections are also moved to daytime supply, which cuts the water lost when a pump is left running unattended at night. Because the payment is for units not drawn, the money follows straight from anything that shortens pumping: laser levelling, direct-seeded rice, shorter-duration paddy varieties, or moving the plot to maize.
Enrolment has stayed thin. By late 2021 only about 2,430 connections had joined across roughly 259 feeders in 12 districts — under 5% of eligible farmers in those areas — and PSPCL still owed part of what it had promised, with some farmers reporting waits of six months to a year for a transfer. The reasons cited were small per-cycle amounts, weak awareness, meter faults, and the disruption of Covid and the farm-law protests. The scheme remains on the books as part of Punjab's groundwater plan, with the stated aim of extending it to every feeder that gets smart metering, but a farmer joining today should keep the allocation letter and meter readings to be able to follow up on payment.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- ₹4 in cash for every unit below your two-month allocation, paid by DBT.
- The free-power subsidy is untouched — this is paid on top, and nothing is billed.
- No penalty for exceeding the allocation; you simply earn nothing that cycle.
- Enrolled connections are moved to daytime supply, so less water is lost to unattended night running.
- Rewards anything that cuts pumping — laser levelling, DSR, shorter-duration varieties, a shift to maize.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Agricultural power connection in Punjab, on a feeder covered by the scheme
- A working meter on the connection (installed free under the scheme)
- Enrolled with PSPCL through the local sub-division office
- Bank account for the incentive transfer
Not covered
- Connections on feeders not yet covered by the scheme
- Connections without a working meter — savings cannot be measured
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Agricultural connection account number
- Aadhaar card
- Bank passbook
- Consent form for meter installation
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Check whether your feeder is covered
The scheme runs on selected feeders in water-stressed districts, not statewide. Your PSPCL sub-division office can confirm.
- 2
Enrol and get the meter fitted
The meter is free and enrolment does not touch your free-power entitlement. Your allocation is set from the pump's HP and the crop season.
- 3
Save through the season
Consumption is read against the two-month allocation. Anything that shortens pumping hours adds to the saving.
- 4
Collect the incentive by DBT
₹4 per saved unit is transferred to your bank account for each cycle you stay under the allocation.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- If the transfer does not arrive after a cycle you stayed under the allocation, or the meter reads wrong, raise it with your PSPCL sub-division office and then the divisional (XEN / Superintending Engineer) office. Delayed payment has been a known weak point of this scheme, so keep the allocation letter and your meter readings. For a supply or meter fault, PSPCL's complaint number is 1912.
- Beyond PSPCL, lodge it on Punjab's Public Grievance Redressal System at connect.punjab.gov.in or the unified state helpline 1100 (also through any Sewa Kendra) — the single window the state runs for all departments under its 2020 grievance policy.
Frequently asked questions
Will I start getting an electricity bill?
No. Farm power stays free. The meter measures how much you use so the saving can be calculated — it is not there to bill you.
How is my allocation fixed?
From your pump's horsepower and the crop season — the paddy months carry a higher allocation than the rest of the year — for each two-month billing cycle.
What if I use more than my allocation?
Nothing is charged or deducted. You simply do not earn an incentive for that cycle.
Can any farmer in Punjab join?
Not yet. It runs on selected feeders in water-stressed districts. Ask your PSPCL sub-division whether your feeder is one of them.
Does joining change my hours of supply?
Enrolled connections are put on daytime supply, which also cuts the water lost when a pump is left running unattended at night.
How much can I actually earn?
It depends on how far under the allocation you stay. Enrolled farmers have typically seen a few thousand rupees a season — it rewards real cuts in pumping, not small ones.
The scheme has had payment delays — is it worth joining?
Payments have run late in the past, and low uptake has partly been blamed on that. It still costs nothing to join and the free supply is never at risk, but keep your allocation letter and meter readings so you can chase a transfer if needed.
Facts checked against www.pspcl.in on 20 October 2026. editorial policy.