The Andhra Pradesh government is considering privatising lift irrigation schemes to ensure better management and water supply to upland farmers.

The irrigation department has identified over 900 schemes, designed to irrigate nearly 8.5 lakh acres, but many have faced frequent breakdowns and rising power costs, burdening farmers. Currently managed by the AP Irrigation Development Corporation, the schemes have suffered from inefficiency, while water users’ associations remained limited to canal management. To address these issues, the state is planning to hand over operations to private players under the hybrid annuity model (HAM).

Contractors would receive at least 40 percent of maintenance costs in advance, with the remaining to be cleared through a minor cess on farmers. Chief Minister Chandrababu Naidu has directed officials to prepare a comprehensive report on scheme status, fund needs, and water availability before finalising the decision.