Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies

This report applies the GSI Method to estimate irrigation subsidies in four southern Indian states, highlighting significant annual costs, the prevalence of cost overruns in incomplete projects, and the critical lack of organized government data on water costs and revenues.

• Between 2004 and 2008, irrigation subsidies for major projects in Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala were conservatively estimated at US$575 million annually. This figure is likely an underestimate because the study excluded private groundwater electricity subsidies and small- to medium-size schemes.
• The majority of subsidies covered operation and maintenance (O&M) costs and interest on capital that exceeded revenues from pollution abatement fees, hydro power generation, and irrigation services. Additionally, projects that missed their completion schedules experienced significant cost overruns, resulting in government funds being tied up in projects that provided no revenue or benefits.
• The study identified a lack of accurate, compiled government records regarding supply costs for irrigation activities, with available data fragmented across various departments. The report recommends that governments require water authorities to maintain better records and make information on subsidies, revenues, and water costs publicly accessible to enable informed public policy debate.

APA

Charles,, P. P. M. G. (2011). Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies. International Institute for Sustainable Development. https://www.iisd.org/publications/report/measuring-irrigation-subsidies-andhra-pradesh-and-southern-india-application

Chicago

Charles,, P. Palanisami,Kadiri Mohan,Mark Giordano,Chris. Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies. International Institute for Sustainable Development, 2011. https://www.iisd.org/publications/report/measuring-irrigation-subsidies-andhra-pradesh-and-southern-india-application.

Wikipedia

{{cite report |last1=Charles, |first1=P. Palanisami,Kadiri Mohan,Mark Giordano,Chris |title=Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies |publisher=International Institute for Sustainable Development |date=17 March 2011 |url=https://www.iisd.org/publications/report/measuring-irrigation-subsidies-andhra-pradesh-and-southern-india-application |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{charles2011measuring, author = {Charles,, P. Palanisami,Kadiri Mohan,Mark Giordano,Chris}, title = {{Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies}}, institution = {International Institute for Sustainable Development}, year = {2011}, month = mar, url = {https://www.iisd.org/publications/report/measuring-irrigation-subsidies-andhra-pradesh-and-southern-india-application}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }