Modi government bets big on smart irrigation with M-CADWM initiative—here’s what the Rs 1,600cr plan includes
India approves ₹1,600 crore plan to modernise irrigation under PMKSY—find out how it could reshape farm incomes and water use efficiency across the country.
In a significant policy move aimed at tackling inefficiencies in India‘s irrigation infrastructure, the Union Cabinet led by Prime Minister Narendra Modi has approved the Modernization of Command Area Development and Water Management (M-CADWM) initiative as a sub-scheme under the broader Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). This targeted initiative, greenlit for the financial year 2025–2026 with an outlay of ₹1,600 crore, is expected to catalyse change in how irrigation water is delivered to farmlands, improve water use efficiency, and support sustainable agricultural productivity.
The scheme is designed to address systemic bottlenecks in the delivery of irrigation water by upgrading backend infrastructure in India’s command areas—designated zones served by canal irrigation systems. M-CADWM aims to facilitate seamless delivery of irrigation water through underground, pressurised piped systems extending up to one hectare, moving beyond the traditional open canal models that often suffer from losses due to seepage, evaporation, and unauthorised diversion.

By introducing next-generation water management techniques and empowering Water User Societies (WUS) with operational responsibilities, this sub-scheme seeks to bridge the longstanding gap between water potential created through large irrigation projects and actual water utilisation at the farm gate.
How will the ₹1,600 crore M-CADWM scheme improve water use efficiency and farm productivity?
At its core, the M-CADWM programme is designed to increase Water Use Efficiency (WUE) at the field level. The strategy includes integrating underground, pressurised piped irrigation systems to reduce water losses typically associated with surface water distribution. By doing so, the scheme aims to ensure reliable water access for farmers on a per-hectare basis, enhancing the efficiency of irrigation water usage.
Modern automation systems will also be employed under this initiative. The use of SCADA (Supervisory Control and Data Acquisition) and Internet of Things (IoT) technologies will enable precision water delivery and real-time water accounting. These technologies allow for better monitoring and control of irrigation networks, ensuring water reaches its intended destination without wastage.
The Ministry of Jal Shakti, which oversees water resource management in India, has long advocated for such digitisation as part of India’s broader water governance strategy. These tools are increasingly seen as critical in a country where agriculture still accounts for over 80% of freshwater consumption. M-CADWM’s emphasis on smart irrigation aligns with the PMKSY’s larger goal: “Har Khet Ko Pani” (Water for every field), a long-term vision introduced in 2015.
What role will Water User Societies and local institutions play in project sustainability?
To ensure long-term impact, M-CADWM incorporates a decentralised management model through Irrigation Management Transfer (IMT). Under this model, Water User Societies—local farmer collectives—will be entrusted with managing irrigation infrastructure. These societies will receive sustained support to ensure they function effectively as custodians of public irrigation assets.
Crucially, WUS groups will also be linked to existing economic institutions such as Farmer Producer Organisations (FPOs) and Primary Agricultural Credit Societies (PACS). These linkages are intended to provide the societies with financial and logistical support, which will be necessary to manage the infrastructure efficiently. The central government has committed to a five-year handholding programme to ensure WUS groups are adequately trained and operationalised.
This handholding is significant, given past challenges in sustaining user-managed irrigation projects in India. The move echoes lessons from earlier schemes such as the original Command Area Development Programme (CADP) launched in the 1970s. While that programme focused on field-level infrastructure and crop alignment, it often faltered in maintenance and accountability—areas this modern sub-scheme now seeks to fortify.
Why is this sub-scheme being piloted through challenge-based funding?
To promote innovation and state-level accountability, the ₹1,600 crore fund will be disbursed through challenge-based funding. This model will invite states across diverse agro-climatic zones to propose pilot projects that meet defined criteria. By introducing competitive funding, the Centre aims to encourage tailored irrigation solutions suited to the local topography, water availability, and cropping patterns.
The results of these pilot projects are expected to shape the contours of a full-scale National Plan for Command Area Development and Water Management, scheduled for roll-out beginning in April 2026. This upcoming plan will coincide with the 16th Finance Commission period, ensuring a structured fiscal foundation for scaling up efforts nationally.
The challenge fund approach is rooted in earlier success stories under similar formats, including the Rurban Mission and Smart Cities Mission. In both, central funding was tied to state-level performance and innovation, leading to more responsive implementation and measurable outcomes.
How does M-CADWM fit into India’s long-term agricultural water management policy?
India’s dependence on erratic monsoons and deteriorating groundwater tables has underscored the urgency of creating a sustainable irrigation model. While the country has built vast irrigation infrastructure, much of it suffers from inefficiencies in last-mile connectivity, maintenance gaps, and low on-farm efficiency. PMKSY was launched in 2015 as an umbrella initiative to unify and streamline existing irrigation schemes under a single comprehensive vision.
Over the past decade, PMKSY has funded key initiatives such as Accelerated Irrigation Benefits Programme (AIBP), Watershed Development, and Per Drop More Crop. M-CADWM complements these efforts by focusing on the integration of backend infrastructure and technological interventions in command areas already serviced by canal systems.
With climate change intensifying weather unpredictability, pressure on water resources is likely to worsen. The M-CADWM sub-scheme offers a technology-first approach to this problem. By embedding IoT-driven monitoring and decentralised governance models, the scheme seeks to align with India’s twin goals of climate resilience and rural prosperity.
Moreover, the government is hoping that this modern irrigation framework will make agriculture more appealing to the youth. By showcasing the application of data-driven decision-making and infrastructure modernisation, the Centre envisions a more technologically literate generation of farmers taking root in rural India.
India’s newly approved M-CADWM scheme under PMKSY marks a pivotal shift in how the government intends to tackle water inefficiency in irrigation. With its ₹1,600 crore outlay, smart infrastructure rollout, and decentralised governance approach, it signals a modern template for managing India’s irrigation assets. As pilot projects take shape across agro-climatic zones, the coming year will provide critical insights into what it will take to build a truly water-efficient agricultural future for the world’s most populous nation.
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.