Economic Rationale, Subsidy and Cost Sharing in Watershed Projects

The rationalisation of subsidies in watershed development programmes is critical not only to reduce the financial burden of the state but also to mobilise the effective participation of people and induce private investment by farmers. Together, these would help the programmes to operate on a more sustainable economic, environmental and financial basis. More effective subsidy structures could also unfold new avenues for negotiation among watershed communities and thereby strengthen the participatory processes for natural resource development across different activities and schemes.