India’s energy–irrigation nexus is rooted in issues of multi-stakeholder governance and incentive structures. As such, purely technological or tariff rationalisation strategies will be ineffective at delivering solutions. Possible solutions are analysed using a multi-stakeholder benefit–cost framework that provides regulators and policymakers with a tool to balance the interests of different stakeholders, that is, farmers, utilities, ratepayers, regulators, manufacturers, energy service companies, and society. This framework provides regulators with a systematic approach to rationalise incentives and transfer payments among stakeholders. Using the framework, agricultural programme strategies for energy-efficient pumpsets and grid-connected solar pumpsets are analysed.
