The adoption of micro-irrigation projects has resulted in water saving, yield and income enhancement at the farm level. However, the overall impression is that they are capital-intensive and suited to large farms. In this context, a study was undertaken in nine states, mainly to examine the actual area covered compared to the potential area and to understand the adoption level of mi as well as to analyse the cost and returns under different farm categories. The results indicated that only about 9% of the mi potential is covered in the country.