The central government pays 55% of the cost of a drip or sprinkler system for small and marginal farmers and 45% for other farmers, for up to 5 hectares per farmer. That national rate comes from the Per Drop More Crop (PDMC) scheme. The "up to 75%" figure you see in headlines is not national: it only happens where your state adds its own top-up on top of the central 55% or 45%, and those top-ups, and how you apply, change from state to state and year to year.
Below is what is confirmed in government releases, what varies by state, and a step-by-step way to apply. For how the systems compare, see our drip irrigation page and sprinkler irrigation.
The national pattern (PDMC)
| Item | What the government says |
|---|---|
| Assistance: small and marginal farmers | 55% of the cost (by the approved unit cost norms) |
| Assistance: other farmers | 45% |
| Maximum area per farmer | 5 hectares (about 12.4 acres) |
| Repeat assistance on the same land | After 7 years |
| Higher unit cost for subsidy calculation | 25% higher in North-Eastern and Himalayan states; 15% higher in states with low micro-irrigation coverage |
| Who pays the subsidy | Centre and state share; earlier guidelines fixed this at 60:40 (90:10 in NE and Himalayan states). Since 2022-23 the scheme runs under PM-RKVY |
| State top-ups | "Some states" give extra subsidy from their own budget |
Small farmer means up to 2 hectares and marginal means up to 1 hectare under the usual land-holding definitions. Your state's land-record category (and a certificate where required) decides which rate you get.
What a top-up can look like, and what I could not confirm
I could not open an official state-by-state table for 2026, so I am not giving a percentage for every state. Trade-press reports (not official tables, which I could not open) mention Maharashtra giving up to 80% to marginal farmers through MahaDBT, and Gujarat giving SC/ST farmers up to 75% of the unit cost with a per-hectare cap through the iKhedut portal and the state's GGRC agency. Treat those as reported figures. Tamil Nadu, Karnataka, Andhra Pradesh, Rajasthan, Telangana and Madhya Pradesh also run state-level schemes. Always confirm the current percentage, the per-hectare cost ceiling, and the crops allowed, from your district horticulture or agriculture office before you buy.
The central scheme's Micro Irrigation Fund with NABARD also lets states borrow to give incentives beyond the PDMC provisions, which is how some top-ups are financed.
What the subsidy means in rupees: an illustration
| Assumed approved cost for 1 hectare | Small/marginal (55%) | Other (45%) |
|---|---|---|
| ₹1,00,000 (assumed) | Subsidy ₹55,000; you pay ₹45,000 | Subsidy ₹45,000; you pay ₹55,000 |
| Same farmer, if a state adds a 20-point top-up (hypothetical) | Subsidy 75% = ₹75,000 | Subsidy 65% = ₹65,000 |
The ₹1,00,000 is only to show how the percentage works. Actual approved costs depend on crop spacing, pipe size, and the state's cost norms, and the subsidy is on the approved cost, not on whatever the dealer quotes. If your quotation is higher than the approved norm, the extra is yours to pay. GST and fitting charges may or may not be included in a state's cost norm, so ask.
How to apply: step by step
- Find the right agency. It is usually the state horticulture or agriculture department, or a special body such as GGRC in Gujarat. Ask at the block or district office which portal is live: Maharashtra uses MahaDBT, Gujarat iKhedut, Rajasthan Raj Kisan Sathi, and other states have their own.
- Register with Aadhaar, mobile number and bank account on that portal or at the office. Some states require online registration first, others take a paper form at the block.
- Keep these documents ready: Aadhaar; land record (7/12, khatauni, patta or equivalent); bank passbook with IFSC; passport photo; caste certificate for SC/ST benefits; small/marginal farmer certificate if asked; proof of water source (well, borewell, canal or farm pond); in some states a soil or water test report; consent letter from neighbours if the source is shared; and a mobile number linked to Aadhaar for OTP.
- Select the crop and area you want to put under drip. Fruit, vegetable and plantation crops are usually eligible; wide-spaced crops cost more per hectare.
- Pick an approved supplier from your state's empanelled list, get a survey and quotation, and submit it if asked. Do not buy first; in most states the subsidy is only given if the system is sanctioned, installed by an approved supplier and inspected.
- Wait for sanction, then install and pay your share. Depending on the state, the subsidy is adjusted with the supplier or reaches you by direct bank transfer after field verification.
- Keep the system. Many states require you not to sell or transfer it for a set period (Tamil Nadu's horticulture micro-irrigation paperwork historically asked for 3 years) and allow officials to inspect it.
Common reasons applications fail
- Land record not in the applicant's name, or a mismatch between land record, Aadhaar and bank account names.
- Aadhaar not seeded to the bank account for direct benefit transfer.
- Water source not shown or not dependable, or area larger than the land holding.
- Claiming again within 7 years on the same land, or more than 5 hectares in total.
- System bought from a supplier that is not approved, or installed before sanction.
- State budget for the year exhausted; applications are then queued or rejected. Apply early in the financial year (April onwards) where the state works on first-come, first-served funds.
Is it worth it? A quick check
A drip system pays back through lower water, power and labour use, and through fertigation. The Press Information Bureau's August 2026 explainer describes studies showing higher yields and lower cost, and gives one orchard example from Andhra Pradesh where net income rose after drip (yield from 90 to 105 quintals per acre of acid lime, cost of cultivation down from ₹3.0 lakh to ₹2.4 lakh). That is one farm and one crop; your result depends on crop, soil and management. Drip is most useful for orchards, vegetables, cotton, sugarcane and other wide-row crops on water-short land.
As of July 2026 PIB reports 115 lakh hectares under micro-irrigation through PDMC. In 2025-26, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, Gujarat and Rajasthan covered the largest areas, so these states usually have the best-oiled approval systems.
If you are also thinking of a solar pump to run the system, read the PM-KUSUM solar pump guide; the two schemes are separate but some states allow both.