Incentive mechanisms for springshed management in the Indian Himalayan Region

About the event

NITI Aayog, in collaboration with the International Centre for Integrated Mountain Development (ICIMOD) is convening a one-day national consultation to deliberate on practical incentive pathways across financial, institutional, community and ecosystem dimensions. The consultation will bring together senior participants from NITI Aayog, Central Ministries, Indian Himalayan State Governments, research, technical and financial institutions, civil society organisations, development partners and the private sector.

The workshop aims to explore how existing policy instruments and programmes can converge to support springshed restoration at scale. This discussion will also explore the feasibility of innovative financial incentives, including Payment for Ecosystem Services (PES), Green Credit Programme, biodiversity credits, performance-linked green incentives, and upcoming green bonds around water and springs. The discussions will contribute to the design and operationalisation of the proposed National Springs Mission framework.

This event is delivered through ICIMOD’s Himalayan Resilience Enabling Action Programme (HI-REAP), supported by United Kingdom International Development through its flagship Climate Action for a Resilient Asia (CARA).

Objectives

The consultation has four specific objectives:

1. Document and distil state and sectoral experiences on incentive mechanisms, identifying enabling conditions and barriers to scaling
2. Identify viable incentive pathways drawing on existing policy instruments, financing mechanisms, and institutional arrangements across all four dimensions
3. Examine opportunities for convergence across water, forest, rural development, and climate programmes around measurable springshed outcomes
4. Identify 3–5 priority incentive pathways emerging from participant experience, for consideration as inputs to the national springs mission framework under Himalayan State Regional Council’s (HSRC) Working Group I: Springs Inventory and Revival of Springs in Himalayas

Expected output

A set of 3–5 priority incentive pathways for springshed management, identified through practitioner experience and assessed for feasibility by sector experts

1. Participant recommendations on priority incentive pathways, for consideration as inputs to the national springs mission (NSM) framework and the agenda of HSRC Working Group-1: Inventory and revival of springs
2. Structured consultation note (ICIMOD, within 7 days) and four technical follow-up notes, one per incentive pathway, within 30 days

Background

India’s Himalayan springs are the primary source of drinking water, irrigation, and livelihood security for mountain communities across the twelve Himalayan states. NITI Aayog (2018) estimated that 60% of the population in hilly regions depends on springs from Himalayan forests for sustenance, livelihoods, and ecotourism. Beyond mountain communities, a 2010 study in the journal Science found that springs and surface run-off from the Himalaya contribute 57–87% of river flow, sustaining power generation, industrial production, and agriculture across major plains states, and underpinning the water security of over a billion people downstream.

NITI Aayog, under its Himalayan State Regional Council (HSRC), has laid significant groundwork through the coordinated efforts of central and state governments, research institutions, civil society organisations, and international partners, in its working group on ‘Inventory and revival of springs in the Indian Himalayas’ (2018). Subsequent reviews under HSRC revealed that 34,180 springs are mapped across 12+ states; ~5,452 springs are treated (15.9%), benefiting around 41000 households. Moreover, status update revealed that around 3800 community members (including 14.7% women) were trained as parahydrogeologists; 700 community committees have been formed; and over 6,800 stakeholders have been engaged across springshed management initiatives in the Indian Himalayan Region (IHR).

Despite this progress and ecological and economic role of springs, a persistent implementation gap remains. Only 0.2% of mapped springs are under continuous monitoring and implementation rarely graduates from pilot to sustained efforts. The technical protocols are in place. The gap is structural, rooted in the absence of a coherent incentive architecture that aligns financing streams, governance mandates, and community motivations around sustained springshed outcomes.

The 2025 national workshop organised by NITI Aayog with NIHE and ICIMOD identified the development of a framework for a national springs mission as the central policy recommendation, alongside the need for innovative pathways like Payment for Ecosystem Services (PES), performance-linked green incentives, and convergence of national schemes around measurable springshed outcomes. This consultation is convened to fill the incentive architecture gap, providing structured, practitioner-grounded inputs to the NSM design process and providing sustainable support beyond pilot modes.