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Public Disclosure Authorized 1:-- ReportNo. 5376-IN

s:AEF PPRAisAL REPo.RT Public Disclosure Authorized

INDIA

NAHARASHTR COMPOSITEIRRIGATION III PROJECT Public Disclosure Authorized

June 18, 1985 Public Disclosure Authorized

South Asia Projects Department Irrigation II Division

This document has a restricted distribution and way be used by recipients only in the peirfornnnce of their officia duties. Its c-ontents msay not otherwise be disclosed without World Bank 2authorization. C RREMY EOVMTS '

US$1.00 R- pees (Rs) 12.0

III.GHTS AND F CASURES(M IC SYSTK) 1

I meter (Ca) . 3.8 feet (ft) I kilometer (km) 0.6 miles (mi) i hectare (ha) = 2.4? acres (ac) or 1 million cubic meters (Mi3) = 810 acre-feet (ac-ft) or 35.3 N 1 cubic foot per second (cfs or cusec) - 0.028 c pic meters per second (m Isecond) 1 TC (billion cubic foot) = 28.3 MHa 1 kilogram (kg) = 2.2 pounds Clb) I metric ton Cmt) 2,205 pounds (lb)

FISCAL YEAR

Government of Maharashtra and Agencies - April 1 - March 31 NABARD, Cooperatives - July 1- June 30 Commercial Banks - January 1 - December 31

11 The metric systen has been used in most cases. However, India is still in the process of transition to the metric system; non-metric units are still widely used and have been used in this report where a conversion to the metric system might confuse the reader. FOR OFICIAL USE ONLY

DIA

NARRASETrRACIOOPOSITE IRRIGATIOS III PROJECT

CREDIT AND PROJECT SUNKARY

Borrower: India, acting by its President (GOI).

Beneficiay: Government of Maharashtra (Gol).

Amount: IDA Credit SDR 166.4 million (US$160 million equivalent).

Terms: Standard.

Project Description: The project would encompass two command areas: Jayakwadi (200,000 ha) and Najalgaon (100,000 ha). The main components for Jayakwadi would be: (i) completionof irrigationsystems on about 45,500ha; (ii) completionof main drains,link drains,and rural roads on about 153,000ha; (iii) constructionof field channels,drains, and structureson about 68,000ha and field-channelprotection on about 102,000 ha; (iv) landshaping of about 128,000ha; (v) developmentof three SpeciallyDeveloped Distributories (SDDs) on about 7,300ha; and (vi) technicalsupport to farmers. For MaLjalgaon, the project would include: (i) constructing116 cAnAl regulation structures;(ii) constructionof Majalgaonmain canal from km 67 to km 100; (iii)construction of the distributionsystem up to the 1-cusecoutlet in an area of about 57,000ha; (iv) constructionof main and secondarydrainage and road networkson about 24,000ha; (v) on-farmdevelopments and landshapingof about 24,000 ha; (vi) developmentof a MajalgaonSDD on 4,000 ha; and (vii) technicalsupport to farmers. Other investmentswould include: (i) equipmentfor landshapingand telecomnunication;(ii) monitoringand evaluation,(iii) extensionservice; (iii) technicaland agriculturalextension and researchsupport; and (iv) training, studies,study tours and consultingservices. The projectwould increaseagricultural production and farmers' income in the two

IThsdocume bs a regsijzd disftion and maybe usedby nreients onlyin t n of thL oici duis. Its musmay nt otese be dislosed wih WoddBank auoxizaion. I-

comunds. To minimize the risks that farmer response might not be adequate, or that yield levels might be lower than anticipated, the project provides for landshaping and for system operation methods which will ensure that all farmers, including tail-enders, will obtain a reliable water supvly. In addition, the project focuses on increasing agricultural productivity, especially through the SDDs', technical support to farmers, research and development, and monitoring and evaluation. The combined effects of these activities should result in a high return per unit of water and high level of farmers' participation. PRINCIPAL ABBREVIATIONSAiD ACRONYMSUSED

AA - Agricultural Assistant (or Village Level Worker) AD - Agriculture Department AE - Assistant Engineer AO - Agricultural Officer ARDC - Agricultural Refinnce and Development Corporation BC - Black Cotton (Soils) CAC - Canal Advisory Committee CAD - Command Area Development CADA - Command Area Development Authority CBR - California Bearing Ratio CCA - Cultivable Command Area CE - Chief Engineer CEO - ,hief Executive Officer CI - Canal Inspector CNS - Cohesive Non-Swelling CWC - Central Water Commission DADO - District Agricultural Development Officer DE - Deputy Engineer DIRD - Directorate of Irrigation Research and Development DSCS - District Soil Conservation Service EC - Executive Committee (CADA) ER - Executive Engineer EGS - Employment Guarantee Scheme ERR - Economic Rate of Return GC& - Gross Commanded Area GOI - Government of India GON - Government of Maharashtra HYV - High Yielding Varieties ICB - International Competitive Bidding ICRISAT - International Crop Research Institute for the Semi-Arid Tropics ID - Irrigation Department IDCOM - Irrigation Development Corporation-Mahareshtra JE - Junior Engineer LBC - Left Bank Canal M - Million MERI - Maharashtra Engiueering Research Institute MCIP I - Maharashtra Composite Irrigation I Project MCIP II - Maharashtra Composite Irrigation II Project MCIP III - Maharashtra Composite Irrigation III Project xnDC - Maharashtra Land Development Corporation Kw - Megawatt (1,000 kW) MWL - Mean Water Level NRBC - Najalgaon Right Bank Canal HWUP - Maharashtra Water Utilization Project NABARD - National Bank for Agriculture and Rural Development KARP - National Agricultural Research Project OC - Outlet Committee OFD - On-Farm Development ODSD - On-Farm Development Structures Division OER. - Official Exchange Rate 0&4 - Operation and Maintenance PAO - Principal Agricultural Officer PERT - Program Evaluation Review Technique PLBC - Paitban Left Bank Canal PMF - Probable Maximum Flood PRBC - Paithan Right Bank Canal PWD=PW&HD- Public Works Department RBC - Right Bank Canal RWS - Rotational Water Supply SCS - Soil Conservation Service SD - Sub-Division SDAO - Sub-Divisional Agricultural Officer SDD - Specially Developed Distributary SE - Superintending Engineer SLA - Special Loan Account SMS - Subject Matter Specialist ThV - Training and Visit (System of Agricultural Extension) YEW - Village Extension Worker WALMI - Water and Land Management Institute WmRD - Water Management Research Division WUC - Water Utilization Committee ZP - Zilla Parishad (District Level Authority)

GLOSSARY

Taluk - Sub-division of a district

Zilla Parishad (ZP) - District Level Authority

Panchayat - Village Council

Kharif - Wet Season (June to October)

Rabi - Winter Season (November to March)

Warabandi - Rotational Water Supply (RWS) used in no-thern India and based on allocation of water in proportion to the size of the landholding and delivery at predetermined turns

Shejpali - Rotational Water Supply used in Maharashtra and based on sanction of water by crops, and irrigation on turns, from the tail-enders upstream Rigid Shejpali - Allocation of water according to Shejpali: with delivery at predetermined turns

Main Canal - Main conveyance system originating at the water source (dam, river)

Branch and - Irrig*tion canal with capacity more than distributary canal 0.7 m Is originating at the main canal

Minor - Irrig tion canal with capacity less than 0.7 m I/s and serving group of chaks (q.v.)

Outlet - Outlet discharging from minor to 15 to 24 ha block, designed to take full field channel discharge and be either open or shut

Chak - Block or irrigation service area below the Government outlet

Field channel - Irrigation channel from the Government (chak) outlet to individual farms (with 1 cfs (28 1/sec) discharge)

Equalizer/Divider - Small irrigation channel or ditch within the individual farm, below the field channel, prepared usually by the user himelf, to spread the water along the field

Nullah - Natural drainage waterway

Field drainage channel - Drainage channel within the chak serving the individual farms

On-farm development (OFD) - small-scale works needed for efficient water distribution and soil moisture control at the chak level (e.g., field channels and dividers, drains and landshaping). OFD can be with or without landshaping.

Black cotton (BC) - a heavy, black clay soil, derived from or vertisols basaltic rocks.

Nurrum - Granular material derived from weathered basalt formations N[ 100 grade - Indian (standard) specificationfor concrete quality. For lining, pressure test must have compressive strength of 100 kglcm

Farm - The entire operating unit of a farmer, divided into fields

Field - Sub-division of a farm; the basic irrigation unit INDIA

NAHARASETRACOMPOSITE IRRIGATION III PROJECT

Jayakwadi/Maialxaon Scheme

Staff Appraisal Report

Table of Contents

PafteNo.

I. BACKGROUND ...... 1

Agriculture and Irrigation in India ...... I The State of Mabarashtra...... 1 Previous Bank Group Assistance ...... 3 Rationale for Bank Group Involvement ...... 4

II. THE PROJECT AREA ... ,.,...,,,,,...... 5

General...... 5 Climate ...... 5 Topography...... 6 Soils...... *...... 6 Population and Land Tenure ...... 0 ... .*.. 7 LandUse ...... 7 Crops and Yields ...... 8 Agricultural Extension o ...... 9 Agricultural Research ...... *... .* ... 99...... Other Agricultural Services ...... o. 9 Roads and Communication ...... * 11

III. TME PROJECT .... *...... 11

A. Orizin. Scope and Objectives

Project Origin ...... 11 Project Scope and Objectives .... o ...... 12

This report is based on the findings of an appraisal mission which visited India in September 1984 and comprised of Messrs. E. Gazit, B. Albinson, R. Jones, A. Seager (Bank), C. Peri (Consultant, part-time), and C.S. Nawathe and S. Singh (Bank, New Delhi, part-time). Mrs. G. Leithmann-Frueh has assisted vith the economic analysis. Word processing was done by Ms. Z. Kalinger with the assistance of Ms. C. Batara, Mrs. B. Scott and Mr. J. Maddix. Computing activities were done by Ms. C. Batara, Mrs. B. Scott and Mr. J. Maddix. III. TEE PROJECT (Cont.)

B. Detailed Features

General ...... *13 MajorWorks ... . .*e******e***S**a*...... 14 Command Area Development (CAD) Works *...... 14 Equipment, Technical Services and Extension...... 16

C. Desizn. Construction and luwlementation Criteria

ID Construction Wing Works ...... 18 CAD Works ...... *...... 20 ConLstruction Methods ...... o...... 20 Status of Project Preparation ...... 21 Project Implementation Schedule ...... so.... 21

IV. COST ESTIMATES AND FINANCIAL ARRANGEMENTS ...... 21

Cost Estimates ...... *..*...... 21 Financing ...... 22 Procurement .. e...... *...... *...... a....22 Disbursements ...... * ... .. 24 Accountsand Audits ...... * 24

V. ORGANIZATIONAND MANAGENENT...... 25

GeneraL ...... 25 The Irrigation Department (ID) ...... 25 The Commnd Area Development Authority (CADA) ...... 26 Landshaping ...... o ...... 29 Farmers Organizations...... 31 Establishment of Project Steering Committee...... 32 The Department of Agriculture (AD) ...... 32 The Public Works Department (PWD) ...... 33 Monitoring and Evaluation (MWE) ...... 34

VIo WATER MAJAGEMEITAND TRAINING ...... s. 34

Present Situation ...... 34 Rotational Water Supply Operation ...... 35 Sanctioning, Water Charges and Administrative Procedures ... 36 Groundwater .- ...... 37 Training Requirements ...... 37 -iii-

VII. AGRICULTURAL PRODUCTION. FARM INCOME AND COST RECOVERY ...... e...... ee ..... 39

Agricultural Production ...... 39 MarketProspects and Prices ...... 39 7arm Incomes ...... o...... *... *.a....40 Cost Recovery ...... 41

VIII. BENEFITS AND JUSTIFICATION ...... *.o ...... o. 43

Project Impact...... 43 Economic Analysis ...... 44 Sensitivity Analysis and Risks .....4...... 6 Environmental Impact ...... 47

IX. AGREEMENTS TO BE REACHED AND RECOMMENDATIONS ...... 48

ANNEXES

1 SUPPORTING TABLES:

1 Climatic Data 2 Land Holdings 3a Jayakwadi & Majalgaon Commands - Components, Segments and Missing Works in Each 3b Main Project Components 4-7 Detailed Cost Tables 4a - Jayakvadi fUP 42350 ha Completion 4b - Jayakwadi HCIP2 4000 ha Pilot Project Completion 4c - Jayakvadi XCIP2 7000 ha Farmers Project Completion 5a - Jayakuadi MCIP1 4500 ha Completion 5b - Jayakvadi 33650 ha COM Portion Completion LBC 65170 RBC 26/74 6 - Jayakvadi 68000 ha LBC 65/70 NBC 38/74 New Area 7a - Majalgaon Project - Segment I 7b - Majalgaon Project - Segment II 8 Work in Next Timeslice (1990-94) 9 Detailed Cost Table - SDD/Technical Services/Equipment 10 Sumary Account by Project Component 11 Su-aury Accounts by Year 12a Project Cost Sumary (Without Majalgaon Dam and First 67 km of the Main Canal) 12b Project Cost Summary (With Majalgaon Dam and First 67 km of Main Canal) 13a Equipment for Landshaping and OK 13b Equipment for Monitoring 14 Details of Incremental SDD Costs 15 Schedule of Expenditures 16 Disbursement Schedule 17 Loan/Credit Allocation -1v-

IS Existing and Required Working Teams of ID and CADA 19 Manpower Requirements for CADA Works 20 Training Program for CADA Staff 21 Present and Expected Future Crop Yields 22 Present Cropping Pattern 23a Future Cropping Pattern Without the Project 23b Future Cropping Pattern With Project 24a Crop Comparisons at Full Development (Financial Prices) 24b Crop Comparisons at Full Development (Economic Prices) 25a Irrigation Requirements of Design Cropping Pattern for 4CTP III Area 25b Irrigation Requirements of Design Cropping Pattern for 1985-90 Phase of MCIP III Area 26 Incremental Crop Production and Farm Inputs 27a Production and Inputs of 4.5 ha Model Farm (Jayakwadi) 27b Production and Inputs of 4.5 Model Farm (Majalgaon) 28 Financial and Economic Prices at Farm Gate or Site 29a Financial Analysis - Farm Budgets of 4.5 ha Model Farm (Jayakwadi) 29b Financial Analysis - Farm Budgets of 4.5 ha Model Farm (Majalgaon) 30 Water Charges, Cesses and Taxes in Maharashtra 31 Estimated Farm Budgets & Project Rent at Full Development 33 Estimated Farm Budgets and Project Rent at Full Development 32a Financial Flows for Model 4.5-ha Farm - MMUPand Farmers and Pilot Model 32b Financial Flows for Model -4.5-ha Farm - Majalgaon--First Segment Model 33 Estimated Project Rent and Cost Recovery 34 Derivation of Economic Prices for Major Crops and Inputs in Jayakwadi-MajalgaonArea 35 Economic Analysis

2 - SPECIALLY DEVELOPEDDISTRIBUTARIES (SDDs) 3 - LANDSHAPING 4 - TECHNICALSUPPORT FOR AGRICULTURALDEVELOPHEMT 5 - RESETITLENENTOF PROJECT AFFECTED PERSONS 6 - SELECTEDLIST OF DOCUMENTSUSED

CHARTS

1 Implementation Schedule 2 Irrigation Department (ID) 3 CADA 4 Agriculture Department (AD) 5 The Future Cropping Pattern NAPS AND PLAN

1RD No. 26834 - Typical Section of Najalgaon Nain Cnal ID llio. 18618R - Najor Irrigation Projects in Maharashtra ID l!No. 18630 - Jayakwadiaalgaon Irrigation Project-Stage ml MASARASHTRA COMPOSrIE IRRIGAION III PROJECT

Staff ADpraisal. eport

I. Backxround

Aariculture and Irrisation in India

1.01 With about 750 X inhabitants (mid-1985), India is the vorld's second most populous country. The annual rate of population increase is about 2.2Z. Gross Domestic Product, nov estimated at Rs 1,690,000 x (US$141,000 H) (1983/84) and growing at about 4Z Annually, ranks eleventh in the world. Income per capita is estimated at Rs 2,330 (US$194) (1983184), makig ndia one of the world's poorest countries. Moreover, India has the largest single concentration of people in absolute poverty on earth, betweea 200 and 250 X; over 902 of them are rural. The industrial sector is large, sophisticated, and growing at a respectable 7% per year, yet agriculture still provides the bulk of India's employment-69%-and generates 32Z of the value added in the economy. Agricultural growth has been at an annual rate of 4.6Z during the 5th Plan (1974-79) but only 2.0S during the 6th Plan (1979-84), due to three years of unfavorablemonsoons. 1.02 At least three-fourthsof agriculturalgrowth stems from the synergy of fertilizers and improvedseeds with a water supply provided by irrigation. The irrigated area of India, over 60 M hectares, is now second only to that of China. India is investing more in expansionof irrigationthan any other country. An indication of the high and rising priority attached to irrigation is the share of Plan investments allocated to the sector: 8.6% in the 4th Plan (1969-74), 9.8% in the 5th Plan (1974-79), and 10.6Z in the 6th Plan (1979-84). The State of Maharashtra

1.03 General. With 62.8 H inhabitants(1981), Maharashtra is India's third largest state and, with 35Z of the population urban, its most urbanized. The Greater Bombay area aLone has a population of 8.2 H and there are nuerous secondary industrial centers like Puse, Nagpur and Nashi}. Hahia.ashtra's urban sector is growing more rapidly than the rural one: in the 1970s, urban population grew by 3.4Z per year, rural, by 1.6Z. Maharashtra alzeady has the largest number of factory jobs, as well as the largest non-agricultural employment of any Indian state. Agriculture. however, still makes up 26Z of Hsharashtra's gross state product, and provides 62% of the jobs: about 8.5 million to owner cultivators and tenants and 6.5 million to farm lahore-e. -2-

1.04 The Western Ghats divide the state north-to-south. The Konkan, vest of the Ghats, is very humid, with short, steep rivers. The Konkan contains one-tenth of Maharashtra-s land area and one-quarter of its population, most of the latter in Greater Bombay. East of the Ghats, the land slopes gradually towards the Bay of Bengal. The Ghats cast a rain shadow to the area adjoining their eastern foothills by cutting off the southwest monsoon. Rovever, rainfall increases east of the foothills. It is concentrated in the monsoon months of mid-June to September. All but two of the rivers are dry at the end of the dry season. Natural aquifers are meager and, unlike on the vast alluvial Ganga Plain of the north, fragmented.

1.05 Agriculture. Farming in most of Maharashtra is difficult. The exceptions are the vell-watered Konkan and the relatively well-watered eastern Vidarbha Region, where rice and other humid tropical crops are grown. Agriculture in the semi-arid bulk of Maharashtra is dominated by drought-tolerant crops like sorghum (jowar), pearl millet (bajra), various pulses, cotton and, increasingly, groundnuts and sunflowers. Farming systems are adjusted to the scarce rainfall, to the large deviations from annual norms, and to the area's black cotton soils. The dominant farming systen in middle Maharashtra, Marathwada and western Vidarbha is to plant crops at the end of the rains on residual moisture, and to harvest them in winter. A relatively low level of inputs is used and the yields Are correspondingly low. In fertilizer consumption per cropped hectare, relatively prosperous and modern Maharashtra ranks 11th amongst India's 17 major states. The value of output per hectare is one of the lowest in India; yields of all crops are below the rest of India, except for sugarcane and banana, which are grown entirely under irrigation.

1.06 The average holding in 1970/71 was 4.3 ha; it declined to 3.7 ha by 1976177. According to official statistics, 92% of Maharashtra-s farms are owner-operated, 5Z are partly owned and partly rented, and only 3% are under tenancy arrangements-demonstrating the effectiveness of land reform. The distribution of farm size is:

Size of Holding Area # of Farms (ha)

0-1 ha. 706,200 1,505,400 1-2 ha. 1,675,600 1,142,100 2-4 ha. 3,832,800 1,339,500 4-10 ha. 8,337,800 1,351,800 10+ ha. 6,552,500 425,500

Most of the 425,500 farms over 10 ha have low-quality, drought-prone land; their owner-operators are more likely to be little more than subsistence farmers.

1.07 Irritation. Kaharashtra is a latecomer to investing in irrigation. As recently as 1973, only 750,000 ha were covered by major and medium surface irrigation projects. The potential created increased considerably in the last decade, and is Dresently 1.5 N ha under major and medium surface projects and 1.8 million from wells and minor surface irrigation (Map IBRD No. 18618R). Rowever, the area with irrigation facilities is only 12% of the area farmed, amongst the lowest in India (cf. the national average of 33%). -3-

There are several reasons for the slow development of the irrigation potential. Groundwater development is difficult and costly because aquifers are generally fragmented and not plentiful (para 1.04). Surface irrigation is difficult because river flows are highly seasonal and there are no good reservoir sites. Reservoirs require large structures, inundate large areas per unit of water stored, are shallow and therefore lose much water by evaporation. These factors make irrigation development costly and relatively high incremental benefits are required to make it economically viable. After a long period of research and experiments with the difficult Deccan black cotton soils, adequate construction and agricultural production techniques have now been identified for economically viable irrigated farming system.

Previous Bank Groui-Assistance

1.08 Major problems in earlier generations of surface irrigation projects were the time lag between dam construction and completion of minor canals and farm-level facilities, and, in some cases, slow development of the demand for irrigation water. Bank Group support to irrigation has concentrated on the "scarcity 3 and the adjoining "assured rainfall" zones, (under 900 mm annual precipitation) through four credits, of which two have been completed. The first was the Purna Project CCr. 23-IN) in 1962. That project financed the storage dams, the main canal and the distributaries, but not the works below the cbak outlet. The first Maharashtra Composite Irrigation Project (MCIP I) (Cr. 736-IN, 1977) addressed the problem of on-farm development in the Purna and Jayakwadi Projects. Much agricultural and engineering experience has been gained during implementation. The black cotton soils, which are difficult to cultivate, and create severe problems in constructing and maintaining irrigation channels, were thoroughly studied and satisfactory solutions have been identified. A detailed evaluation of Credit 736-IN is provided in a recent Project Completion Report (November 1984).

1.09 Of the two ongoing projects, the Second Maharashtra Composite Irriga- tion Project (MCIP II) (Cr. 954-IN and IFAD 23-IN, 1979, closing in 1985) fimanced the upgrading of two existing projects (Kula and Girna) and part of the constructionof six relatively new projects (Upper Wardha, Upper Pen- ganga, Kukadi, Krishna, Warns and Bhima) to improved design standards. It was the first "time-slice" project in Maharashtra, with the objective of completing all development down to the farm gate, to ensure that benefits begin to flow soon after the investments have been made. The Maharashtra Water Utilization Project (MWUP) (Cr. 1383 and Lu. 2308-IN, 1983, closing 1988) financed improvements of the irrigation network of underutilized irrigation schemes of Hula, Girna, Purna, Khadakwasla and Jayakwadi. That project was designed to bridge the gap between the speedy creation of surface irrigation potential (dams, main canals) during the 1970s and the slow utilization of this potential. It was estimated that about 750,000 ba com- mended, in which the potential created was not fully utilized, could be brought quickly and cheaply into improved production through a series of "water utilization operations," by providing only the most essential, but hitherto missing, elements to link the main infrastructure to the farmers' plots, while deferring some other works (lining of distributaries and minors, drainage, roads). It is too early to assess results of that approach, although positive trends can be seen; it is clear, however, that it will need, within a short while, complementary investments to add the deferred elements, particularly landshaping and agricultural support, which are -4-

required to realize the full potential of irrigation benefits. To date InA/Bank commitments to the Maharashtra surface irrigation sector have been US$347.7 million of which IDA accounts for US$325 million and for the Bank US$22.7 million.

1.10 Other Bank Group support for Maharashtran agriculture has focused on research, extension and credit. The National Agricultural Research Project (Cr. 855-IN, 1979, closing September 1985), supported research of rainfed agriculture through the State agricultural universities and performed well. The Mabarashtra Agricultural Extension Project (Cr_ 1135-IN, 1981, closing June 1987), is highly rated and proceeding on schedule in its objectives of reorganizing and strengthening agricultural extension. The Bank Group has supported agricultural credit, starting with Maharashtra Agricul- tural Credit Project (Cr. 293-IN), followed by four All-India credits, the latest of which is ARDC IV (Lu. 2095-IN)/Cr. 1209-IN, 1982). ARDC IV encountered .ajor management problems, notably in large and growing overdues, as well as deficiencies in covenant compliance and reporting.

Rationale for-Bank Group Involvement

1.11 Jayakwadi is Maharashtra's largest irrigation scheme. While there have been difficulties with realization of irrigation benefits in the past, it is the opinion of experts familiar with Deccan agriculture that with experience gained under the previous stages, in other projects on the black cotton soils and with certain improvements supported under the proposed project, agriculture production is ready to take off. Better management of the lands (drainage, landshaping, tillage), the water (appropriate distribution systems down to the farms, reliable and timely supply, meticulous O&Mof the systems) and improved support services and incentives to the farmers (farmers- organization, training, input supply, equipment, technical advice, appropriate crops, and marketing outlets), are expected to enhance cultivation, irrigation and production. But most important is the introductionof a different managerial approach and style, where the best expertise will not "trickle down" but dwell within the project, the waterways, the experimental stations and the farmers. Organization of the farmers, demonstration of results obtained by farmers when given the right conditions and advice, meticulous rotational water supply, full control of soil moisture (drainage, landshaping), year-round accessibility (roads) and the like, have not been applied in the past on a meaningful scale in Maharashtra. Bank Group involvement would: (a) assure that works are completed to agreed and adequate standards, so that the system will perform smoothly and to its full capacity (b) change the emphasis from construction to a production-orientedproject, toward which the main management effort and support will be directed and (c) institute a manAgement system that would shoulder increasing day-to-day responsibility to the farmers and the systems operators. All this involves promoting and accelerating drainage works, landshaping and access roads, establishing the four distributaries (SpeciallyDeveloped Dis- tributaries-SDDs)as spearheads for agricultural development, enhancing adaptive research, establishing efficient 0&M, organizing the farmers, and promoting new technologies and crops. With Bank Group involvement, these vital changes are likely to take place faster and increase the viability of investments already made in the past, and the additional ones contemplated under the project. II. THE PROJECT AREA

General

2.01 The project area includes the Jayakwadi and Majalgaon commands, a gross commanded area (GCA) of about 330,000 ha. The culturable commanded area (CCA) i.e. land potentially irrigable and available for cultivation, is about 300,000 ha.J1 The area stretches in a narrow strip along the Godavari river-10-20 km wide on both banks-for about 210 km, to the Purna river on the left bank and to the Sankher, a minor seasonal stream close to Nanded, on the right bank. The Jayakwadi/lajalgaon scheme has been designed to operate at full development as one integrated system. It consists of five main elements: (a) The Paithan reservoir with a live storage of 2,850 Km gross; (b) the left bank canal (PLBC) 208 kmolong, with a carrying capacity of 100.8 m3 /sec, serving a CC& of 154,000 ha and supplying 5 branches, 41 distributaries and 39 minors; {c) the right bank canal (PRBC) 132 km long with a carrying capacity of 63.7 m /sec, supplying 46,000 ha through 80 distributaries; (d) the Maialgaon reservoIr with a live storage of 311 Nm3 , regulating annual fl vs of 403 Mm from the Sindphana river, and a transfer flow of up to 468 No per year from Paithan. Majalgaon reservoir releases its water (and Paithan leftovers) to (e) a right bank canal (NEBC) 165 km long, with a carrying capacity of 82.6 m3/sec, serving a CCA of about 100,000 ha through 94 branches, distributaries and minors. The project area spans six administrative districts (Map IBRD 18630). They are: Aurangabad, Jalna and Parbhani commanded by the Paithan Left-Bank Canal (PLBC), and Abmednagar, Bhid and Nanded commanded by the Paithan Right-Bank Canal (PRBC) and the Majalgaon Right-Bank Canal (NRBC).

Climate (Annex 1, Table 1)

2.02 The climate is sub-tropical. Three seasons can be distinguished: the kharif or monsoon season (June 15-October 1) during which 80% of the annual precipitation falls; the rabi, or sunny, cool season (October 1-February 28) when most of the remaining 20% rainfall comes, and the rain- less hot season (March 1-June 15) when the relative humidity is the lowest and temperatures reach their peak, usually between late April and early June. Rainfall increases from about 600 mm/year at the western end of the project area to 900 mm at the eastern, lower reaches. The rains begin and end at much the same time through the project area; the difference lies mainly in the extent and number of sto,ms.

2.03 In the principal growing seasons (June to March) the difference between monthly temperature means is only about 80 C. The mean minimum temperature in December/January is about 130 C, which is marginal for tiller and ear initiation in wheat but adequate for ensuring high sucrose content in

11 Additional 30-40,000 ha (10-15Z) are expected to be irrigated in the future through low-lift pumping within the commands, and on the unirrigated banks of the Jayakwadi and Majalgaon canals. -6- sugarcane; it also enables a vide range of crops to be grown in the rabi season (para 2.14-2.16).

Toyonahl

2_04 Geologically, the project area belongs to the Deccan trap basement complex. The topography is open, rolling, with isolated, typically angular hills. The drainage lines are deeply incised, but mostly carry only storm water; they are usually dry outside the monsoon season. Overall elevation is between 450-550 m above sea level; the general slope is from west to east, approximately following the course of the Godavari river.

2.05 The rolling countryside has made an extensive soil conservation progran necessary. Grassed-over earth bunds, designed to slow down, impound and harmlessly divert rainwater that the soil cannot absorb, have been constructed in the past, either by the Soil Conservation Service (SCS) or by the farmers, under SCS guidance. Slopes in the CCA are as follows:

below 0.6Z 31Z 0.6 - 1.0O 21% 1 - 2 % 34% above 2% 14%

Soils

2.06 The soils are clayey black cotton soils, formed in situ from the basaltic basement complex rocks. Small alluvial strips occur near the major water channels but their extent is insignificant. Black cotton soils shrink when dry and are self-mulching. The surface crumbling enters the cracks and therefore, when wetted, the soil surface tends to fold slightly. Vertical permeability, once the soils reach field capacity, is slow (in contrast to horizontal permeability, which is quite high). Therefore, after heavy rain or irrigation, plant roots tend to remain waterlogged for several days if the crop is planted on flat ground, i.e. without ridging or bedding. This impedes root development, subsequent drought resistance and nutrient uptake. To overcome these problems in Maharashtra as elsewhere in the world on similar soils, the traditional farming pattern is to plant most crops when the rains ease off; they mature on the moisture stored in the profile. The high horizontal water conductivity,which weakens the internal shearing forces of the soils, and enables side-slopes to slide, makes lining of water channels, especially the main canal, the distributaries and most of the minors, almost an unavoidable necessity.

2.07 The major soil characteristics,determining agricultural production potential, are closely dependent on the soil's depth to bedrock and its clay content. Soil depth is, on the whole, satisfactory:

Shallow (below 40 cm) 21% Medium (40-250 cm) 24% Deep (above 250 cm) 55Z

Since the underlying layer in most cases is fractured, easily weathered murrum rock, the agricultural potential of most of the shallow soils can, over tine, be built up, if sufficient care is taken with initial landshaping. -7-

2.08 Structurally, about 75Z of the soils are classed as clay loams and heavier. Soils with a clay content of over 601 are more extensive in the western end of the area, near the Paithan dam; the clay content decreases towards the eastern boundary of the project but is still high. Therefore, the agronomic problems at opposite ends of the project area differ only in their severity: for the more delicate crops, like groundnuts and cotton, careless cultural practices result in water-logging of the root zone, and yields decrease, more on the heavier than on the lighter soils.

2.09 Soil fertility is generally good: because of the basaltic origin, potash content is adequate for all but the most demanding crops (sugarcane and bananas) or unless yield expectations are high. Nitrogen and phosphates, especially the forwer, are, however, deficient for even medium yield levels and must be added: the current recommendations are based on the principle of nutrient removals which appears, from experimental evidence, to be satisfactory.

Population and Land Tenure (Annex 1, Table 2)

2.10 Farms of 5 ha or more account for about two-thirds of the cultivated area. The average farm size in the two commands is 4.5 ha. Most farms are owner operated. The tenancy situation in the project area is typical of that for the State as a whole (para 1.06).

2.11 As elsewhere in rural Maharashtra east of the Ghats, the population density is relatively low, about 210 per km . Although 35X of the population is landless, there is shortage of labor in peak season, resulting in wide use of seasonal migrant farm labor. The migrants come mostly from the less developed parts of the state, and also from Madhya Pradesh and Orissa, usually for harvesting sugarcane and for construction jobs.

Land Use

2.12 The net cropped area, i.e. land planted with one or more crops in a given year, is about 70X of the gross area. Forests and land not available for cultivation account for about 6%; fallows and culturable waste, for the balance 24Z. There is almost no scope for increasing the net cropped area since most of the cultivable land is already cultivated. GON is aware of the insufficientforest area and an active tree-planting program is being pursued on lands deemed hetter suited for forestry than agriculture. Therefore, the total cropped area can only be significantly increased by increasing double cropping, which would require an expansion of the irrigated area.

2.13 In the rainfed areas, farming is at or near subsistence level and the crops grown, except for the low-yielding, short-staple cotton, are mostly food and fodder crops. In the irrigated areas, cash crops are also grown, especiaLly long-staple cotton, groundnuts and wheat (which is a cash crop in Naharahi.-ra). -8-

Crops and Yields (Annex 1, Tables 21 and 22)

2.14 SorRhum is the staple food crop, which also produces the stover to maintain milch and draft animals. Hybrids are increasingly taking over from the indigenous varieties because of their considerably higher yield potential, although many farmers maintain a small area of indigenous sorghum for home consumption. Pearl millet has begun to replace sorghum, because it exhausts the soil less and land preparation for the following irrigated rabi crops is easier than after sorghum. Green and black tram are traditional kharif pulse crops, which, however, suffer either when rains are excessive or during long dry spells. Chickpea is the pulse for the rabi season; safflower is the traditional, drought-resistantoilseed crop, often consumed at the farm.

2.15 Under irrigated conditions, usually where there are wells for augmen- tation of water supply, sugarcane is the farmers' first choice. It is an easy crop to grow, well adapted to soil and climatic conditions of the project area with a ready market at the cooperative sugarmills. However, its water requirement is very high. Wheat has been introduced with surface irrigation, although the aestivum varieties usually grown in Maharashtra are at, or beyond, their ecological limit on account of the usually mild winters (para 2.03). Many farmers grow the more reliable durum species, on which research and development work is, unfortunately,minimal in Maharashtra. Groundnuts are increasing in popularity, especially when planted and harvested during the hot season. A limited but increasing area is planted just before, or just after, the start of the monsoon rains. Cotton is a popular cash crop: the short-stapled arboreum species are usually grown without irrigation; the medium and medium-long-stapledhirsutum varieties are grown under irrigation, although they thrive reasonably well without irrigation, especially at the eastern end of the project area. Cultural practices for cotton, including pest control, are good.

2.16 Certain crops that could be grown face market constraints. Maize grows well in both the kharif and rabi, but it is not appreciated as a food- crop, and there are, as yet, no facilities for manufacture of starch, corn oil and maize gluten in Maharashtra. Sovabeans also grow reasonably well but cannot be readily marketed, unlike in neighboring Madhya Pradesh. A notable exception are sunflowers, the area of which is increasing; the seeds can be marketed for oil extraction. With relatively little further adaptive research effort, it will undoubtedly become an important crop, suitable for growing in both kharif and rabi. -9-

A ricultura* Extension

2.17 Under the Maharashtra Agricultural Extension Project (Cr. 1135-IN), agricultural extension in the project area was, in 1983, absorbed into the six district extension services 1/. As a result, some of the Village Exten- sion Workers (VEWs), and most of their first- and second-line supervisors and Subject Matter Specialists (SMSs) became responsible for larger farmer groups than when they worked only in the project area; moreover, they now have to divide their attention between problems encountered by farmers who irrigate and those who do not. With this increased work load, they were not able to devote sufficient training and attention to the time-consuming, diverse problems of irrigated agriculture. Nor are there now sufficient VEWs; the VEW-farmer ratio in irrigated lands has been increased to 1:1200. However, changes already approved by the Agriculture Department (AD) intend to increase the numbers of VEWs to a ratio of 1 to 800 farmers. The extension staff dealing with irrigation is due to be strengthened with a Subject Matter Specialist (SMS) trained in irrigation agronomy and water management.

ALriculturai Research

2.18 Agricultural research in the project area is the responsibility of the Marathwada Agricultural University, Parbhani. The University's on-campus research is at present mainly oriented towards varietal improvement, inter- cropping and multiple cropping, although under the ongoing first National Agricultural Research Project (NARP; Cr. 855-IN) the University operates a small project that investigatesyield responses to different levels of irrigation. The University operates a cotton research station in Nanded and an oilseed research station in Latur, both in the 1300 mm rainfall zone. Under the Maharashtra Water Utilization Project-MWUP-(Cr. 1383/Ln. 2308-IN) the University is expected to operate an adaptive research program in two locations within the already irrigated portions of the project area, to investigate and develop appropriate cultural practices, irrigation layout, limited input application and other on-farm practices not addressed previously by their research program. This work is slowly getting underway.

Other-Asricultural-Services

2.19 Seed, fertilizer and pesticide supplies are under the surveillance of the District Agricultural Development Officer (DADO) who is attached to the Chief Executive Officer of the Zilla Parishad, the district administrative authority. Apart from collecting statistical information on the inputs situation in the district, it is the DADOVs task to anticipate supply constraints, and to initiate appropriate action to alleviate them. On the whole, the system works well; if a shortage arises, it is at least evenly distributed throughout the area, and corrective measures are promptly taken.

2.20 Fert-lizer use is well established. There are sufficient outlets within easy reach of farmers who possess ox carts. One third of the outlets,

1/ Prior to that, the extension services were closely linked to the CADA Administration in the project area. -10- operated by the cooperative societies, account for all the trade generated by institutional credit. Almost all fertilizer outlets also sell seeds, pesticides and plant protection equipment. Outlets are licensed and must show proof of working capital and adequate storage facilities. Because of the vell organized supply lines and accessibility to Fertilizer Corporation of India's depots, annual turnover in the average outlet is healthy 13-14 fold, thereby rendering this low-margin business profitable. Consumption shows an upward trend, properly balanced between the major nutrients.

2.21 Seeds are provided by the National and the Maharashtra State Seeds Corporations whose main task is to supply the cooperative outlets. In addition, there are many private producers of certified and hybrid seeds who are tightly controlled by the Seed CertificationAgency and market, usually through the fertilizer outlets, under their own brand names. The only seeds that are occasionally in short supply are those of hybrid cotton and the more popular sorghum hybrids.

2.22 Pesticides are also in adequate supply, as are sprayers to apply them. Hovever, the product advisory service is weak; the dealers are not trained to advise on the use of pesticides and sprayers, unlike for seeds and fertilizers. This puts a major responsibilityon the agricultural extension staff. However, progress is evident in the increasing use of pyretbroids for cotton and the good results obtained.

2.23 Manufacture of aRricuItuirwl-implements is widespread. The several local designs for implements suitable for primary and secondary tillage are good and innovative; it seems reasonably certain that any new design, found useful, can be cheaply and efficiently produced in the region.

2.24 Marketing-and-ProcessinR. The project area is covered by a network of regulated markets, ten of which were built under the now completed MCIP I project. They function satisfactorily. By far the largest marketed good is sugarcane. It is processed in four sugarmills, under contracts with the growers.

2.25 Azricu-lttura-cred-it,both long and short term, is available from the state-owned commercial banks, and the cooperative banks. lIediumand long-term loans for approved agricultural purposes are provided by the banks and 75Z refinanced by the National Bank for Agriculture and Rural Development (NAhARD). Commercial banks are required by law to maintain a stipulated minimum portion of their portfolio in agricultural loans. They seek to reach the targets by making large loans to agro-industriesor commercial farmers wherever possible, because loans to these borrowers are eligible for refinancing by NABARD. However, medium and long-term lending is limited because an estimated 80-90X of the farmers are defaulters and therefore ineligible for new loans through the institutionalcredit system.

2.26 Short-term credit, principally for fertilizers,pesticidesand seeds is well organized, and its volume increasesmodestly every year. -11-

Roads and Communication

2.27 Both the left bank (PLBC) and the right bank (PRBC) including Majal- gaon command (MRBC) are served by main state roads which run parallel to the Godavari river, interconnected by four main roads with bridges across the Godavari. These, together with the Aurangabad-Nanded-Hyderabad railroad are the principal arteries of the project area, connecting the cities of Auran- gabad, Jalna, Parbhani, Nanded, Purli, lajalgaon, Bhid and Abmednagar to the national grid. But the development of rural roads is lagging. Rural roads have a special importance on black cotton soils, where any sort of traffic is almost impossible during the rains and without roads all agricultural activities come to an halt, with resultant crop losses. Under prevailing road development criteria about 1,800 km of rural roads are required adequately to serve the project area. Only about 25% (450 km) existed before 1977 and about 15Z (250 km) have been taken up by MCIP I. MWUPmade no provision for roads, to minimize per ha costs. In addition to the rural roads, there are also over 300 km of service roads along the main and distributary canals and drains of the irrigation systems which are used mainly for maintenance. Rural roads are usually unpaved, except for small portions close to the towns and the sugarmills. The Public Works Department (PWD) maintains the roads, but only the state highways (SH) are well kept. Trains and buses serve the major towns; truck service is available in commercial centers. However, the principal means of transportation continue to be the ox carts, and occasionally wheeled tractors and trailers. Aurangabad, the project headquarters, is equipped with an all-weather airport, served twice daily by Indian Airlines.

III. THE PROJECT

A. Origin. Scope and Objectives

Proiect- Orizin

3.01 The First Stage. The Jayakwadi/Majalgaon scheme is a long-term program to develop irrigation over about 300,000 ha along Godavari river in west Maharashtra (para 2.01). It started in 1965. By mid-1977 the main storage reservoir at Paithan, the upper segments-about one-third-- of the main Paithan Left Bank (PLBC) and Right Bank (PRBC) Canals and a partial area development of about 53,000 ha on the upper reaches of Jayakwadi command, mostly on the PLBC, were completed.

3.02 The Second Stage. The second stage, and Bank involvement, began in mid-1977 with MCIP I (Cr. 736-IN). It covered the construction of the missing two-thirds of the two main canals of Jayakwadi command, distributary and minor canals on 95,000 ha, and on-farm development (OFD), including landshaping, on 45,000 ha. In 1982, upon completion of these 45,000 ha, GOMprovided Jayakwadi Command Area Development Authority (CADA) with additional funds to proceed with OFD works on a further 33,650 ha. This new area was developed without drainage systems, roads, and landshaping. During that stage, more -12- emphasis was given to the construction of the main and distributary canal network than to on-farm works. Further, it was found that the 53,000 ha developed by GOM during the first stage were poorly utilized, due to shortfalls in design, constructionand implementation,lack of OFD, and deficient operation of the system. This, combined with the difficulties in cultivating the black cotton soils resulted in low production levels.

3.03 IntermediateStages. The NCIP II (Cr. 954-IN and IFAD Ln. 23-IN), allocated a small percentage of the funds to the Jayakwadi command, to support staff training and pilot command area development. They covered: (i) the establishment of the Water and Land Management Institute (WALMI), to train newly recruited irrigation staff of all CADAs in Maharashtra; (ii) the upgrading of field irrigation channels to farms on part of the underutilized first stage lands; (iii) "Pilot Project" was started in 1979 on about 4,000 ha, and a second program, called "Farmers' Project" was initiated in 1980, covering about 7,000 ha. The lessons learned from these two modes of irrigation development down to the farms were incorporated in the Maharashtra Water Utilization Project (MWUP, para 1.09). In Jayakwadi, it included the upgrading and integration of 42,350 ha of the first stage development that were not covered by the "Pilot" and "Farmers" projects.

3.04 In accordance with the long-range plans for Jayakwadi/Majalgaon scheme, GOM started in 1980 to build the Majalgaon dam on the Sindphana River, a tributary of the Godavari, about 145 km downstream the Paithan dam. The Majal- gaon reservoir, which is due to become operational by mid-1985, feeds a 165 km long main canal (Plan IBRD 26834) on its right flank, of which the first 67 km have been under construction since 1981. The cost of the dam and earthwork on the first 67 km of the main canal, 1/ which would not be financed under the proposed project, is about US$66 M, including physical and price contingencies.

3.05 The Third State, which begins with the proposed project, aims to: Ci) complete the irrigation network and the OFD works over the entire two commands to the same standards; and (ii) adopt effective OM procedures through the commands. A fourth stage will be needed to complete development of the lower Majalgaon commaand.

Proiect Scope and Obiectives

3.06 Scope. As described above, the Jayakwadi command has been developed over a long period to varying standards. It would be essential to bring it to a uniform level with respect to irrigation network, drainage, roads and landshaping. The proposed project would consolidate development of the Jayakwadi command and expand irrigation into the new Majalgaon command. The total project area will extend to about 300,000 ha. With strong emphasis on water management and agricultural production practices, project activities would trigger a self-sustainedprocess of agriculturalgrowth.

3.07 Obiectives. The main objective of the project is to improve utilization of the black cotton soils and the available water supply to raise substantially agricultural production and farmers' incomes. It would: (a) complete the missing infrastructureelements in all the segments of Jayakwadi command to a uniformly satisfactory standard; (b) stimulate and promote agricultural development of all the command; (c) advance the development of the associated Majalgaon command (100,000 ha), so that the first segment (24,000 ha) would be completed during the present stage; and (d) introduce improved O&M procedures.

1/ See footnote on p. 13 -13-

B. DetailedFeatures General

3.08 Projectworks fall under three main categories: (a) major (large-scale) works; (b) CADA on-farm (small-scale)works; and (c) equipmentand technical services, all of which described and quantifiedin the following table and pages, and in Annex 1, Tables 4 to 9: A. Javakwadi Command B. Maialtaon Command

(a) Major Works (a) Maior Works ti) Not applicable (i) constructionof 116 structures along km 0-67 of the main canal; 1/ (ii) Not applicable (ii) construction of the Main Canal between km 67-100, including lining and structures; 1j (iii) completion of irrigation systems (iii) construction of the irrigation (distributariesand minors) on system (distributariesand minors) about 45,500 ha; down to the 1-cusecoutlets along the first 100 km of the main canal (about57,000 ha); (iv) completionof main drains,and (iv) constructionof the main and link drains on about 153,000 ha; link drainage network covering and tue first segment(24,000 ha); (v) construction and/orrehabilitation (v) constructionof rural road network of rural roads on 537 km in all on 120 km of the first segment parts of the command. (24,000ha); (b) CAD Works (b) CAD Works

(vi) constructionof field channelsand (vi) construction of field channels and structures and field drains on about structuresand field drainson about 68,000 ha, and field channel protec- 24,000 ha; tion on 102,000 ha; (vii) the developmentof three Special (vii) the developmentof Majalgaon Distributaries(SDDs) on about SpecialDistributary (SDD) 7,300 ha; on about 4,000 ha; (viii) landshapingof about 128,000ha; (viii) landshapingof about 24,000ha; (ix) technicalsupport to farmers (ix) technicalsupport to farmers on the entire200,000 ha of the on about 24,000ha, and command. preliminarypromotion programs for farmerson the rest (76,000ha) of the command.

C. Epuiiment and Technical Services (i) equipment for landshaping, telecommunication and monitoring; (ii) strengthening the monitoring and evaluation unit within the project; (iii) technical, and agricultural extension and research support; (iv) training, studies, study tours and consulting services. jj Earthworks and lining on the first 67 km already contracted are being financed by GOM (para3.04). -14-

Maior Works

3.09 Canal construction. About 60 km of main and branch canals, 615 km of distributaries and 1550 km of minors will be constructed andlor lined under the project. All canals down to the 1 cfs level will be lined. Wherever the alignment passes through black cotton soils, a backing of cohesive non-swelling (CNS) material will be placed. The volume of works for the main and distribution system is:

Earthworks (MR3 ) - 9_00 2 Ling (Mm) - 12.00 Structures (No.) - 1200

3.10 Main and link drainage. About 2,120 km of main and 3,500 km of link drains will be constructed to connect the chak drainage systems to the natural drains.

3.11 Roads. About 657 km of rural roads will be constructed throughout the Jayakwadi area and within the first segment (24,000 ha) of Najalgaon. In addition, about 250 km of service roads will be part of the construction of the new main and distributary irrigation canals and main drains (paras 3.34 and 5.29-5.30).

Coumand Area Development (CAD) Works

3.12 Field Channels. About 6,800 km of field channels linking the chak outlets with each farm (or group of farms if less than 1 ha) will be provided. The field channels will be sodded and provided with selective protection over about 20X of their length (para 3.30). While partial linLng implies the need of more regular maintenance, it also reduces construction costs and puts the necessary maintenance within the competence and ability of the farmers served by the channel. The length of field channels is about 70 m/ha and about 14 m/ha will be protected. The volume of on-farm irrigation works is:

Field Channels (Ka) 6,800 Field Channel Protection (km) 1,360 Chak Structures (No.) 15,000

3.13 Field Drainaze. About 4,500 km of field drains will be constructed as part of the CAD program. They will be completed before commencement of landshaping, sodded and protective structures constructed where necessary. Field drains are of extreme importance on the BC soils for quickly draining the heavy monsoon rains during kharif, for disposing of excessive irrigation water, and for lowering the water table. Topography, farm boundaries, irrigation outlets, location of natural waterways and nullabs, and soils and rainfall data will dictate the location and the size of the systems. The CADA, through the farmers organizations (para 5.22), would ensure regular maintenance, avoid negligence by the users which is common with these kind of facilities, and could result in waterlogging and/or salinity. The field drainage plans, prepared by CADA, will be part of the overall land development planning. -15-

3.14 Landshaving. Project authorities will provide special technical support to farmers to promote landshaping, vhich is required on about 80Z of the irrigated areas. Landshaping vithiu a chak would conform to an overall chak plan, to ensure that all fields can be readily irrigated and integrated into the surface drainage system. CADAvould prepare this overall plan, and would oversee its implementation, irrespective of the actual entity that does the work. For further details see paras 3.35-3.36; 5.15-5.20 and Annex 3.

3.15 An agreement has been reached with CON that it would plan, design, construct, operate and maintain the irrigation, drainage and road networks, and the on-farm development of the project, including the lining of all main distributaries and minors down to the I cfs outlets, and plan, design and help implementing landshaping in accordance with standards and criteria satisfactory to the Bank Group (para 9.02 [a]).

3.16 The SpeciallX Developed Distributaries (SDDs). Four SDDs would be established under the project. Farmers in these comuands would be carefully coached to attain the production potential that can be achieved under an accelerated, properly focussed agricultural development program. The SDDs are aimed at triggeriug a process of accelerated agricultural development in the project area. This approach was decided upon by GCO, following a careful analysis of past experience. Two SDDs would be located near the head and tail reaches of the PLBC, one in the command of the PRBC, and one in the command of the MRBC; the latter would not be established until 1986, when the distributary is built and its command developed. The irrigation system in the SDDs would be rapidly upgraded to the standards envisaged for the entire project area, and the farmers-given strong technical and extension support by the project-encouraged to take advantage of the improved production environment.

3.17 The SDDs would be given further management help by ID through a steering committee (paras 5.23-5.25) and through C&A&'s special provisions, to ensure a speedy organization of farmer groups (para 5.22) for efficient water distribution, communal mintenance of field channels, adaptation of improved irrigation practices, and access to credit and input supplies. Each SDD would develop promptly, with project support, field irrigation and cultural practices that would enable multiple cropping to the maximm extent compatible with water and labor availabilities, and mimize production and income levels. It is expected that the quick results, and effective use of the extension service, will demonstrate to farmers throughout the project area the pay-off of concentrated efforts in irrigated agriculture in this difficult environment. A parallel activity would be to identify the constraints to increased production of potentially viable crops which are not yet grown on any important scale (e.g., soyabean, maize) but could widen the range of crops grown and marketed successfully in the region.

3.18 During the first two years of project implementation all concerned GON departments would give high priority of initiating the SDDs and support it to the extent necessary to ensure their success. To support the foregoing, an agreement has been reached with GON that: (i) by August 31, 1985, it would establish and thereafter maintain a Steering Committee for promotion of agricultural development, such committee to be headed by the Secretary of the Irrigation Department and to meet, at least, every six months; and (ii) by December 31, 1985, furnish to the Association a detailed plan for carrying out each of the Specially Developed Distributary under the Project. (para 9.02 [b]). -16-

Equipment. Technical Services and Extension

3.19 Equiument. Equipment costing about Rs 69.5 N (US$5.8 JR) will be purchased for landabaping. telecommunications and monitoring (Annex 1, Tables 9, 13a and b). Provisions have been made for purchase and installation of a radio-telephone network in the Eajalgaon area, linking the dam, catcbment and service area. Communications vill be provided down to each distributary control structure. The new Maialgaon network will be linked to the existing Jayakwadi network, that will also be upgraded to allow unified and improved control of all the entire complex. Agreement has been reached with GOI that it would issue all the authorization and permits required to enable GON to improve in Jayakwadi, and establish in Majalgaon, a radio communication network (para 9.01 [a]).

3.20 Investigations. Trainina and Studies. Provisions have been macke for relevant investigations, training and studies which would accelerate the attaining of project objectives. Accordingly, agreement has been reached with GON that it would, not later than December 31, 1985, prepare and furnish to the Association for its review and comments, a detailed work plan covering the activities to be undertaken to

(i) strengthen basic traiinsg facilities in WALMIand CADAfor technical and operational staff as well as for farmers;

(ii) organize study tours of key personnel of CADA,and AD to suitable areas with problems similar to those encountered on the black cotton soils of Maharashtra and where farmer organizations for water distribution below the outlet are very effective;

(iii) conduct water management research and overall system operation studies, to improve water use efficiency in the project area, in accordance with studies initiated under MMWI;and prepare hydrological and transient flow models for the entire Jayakvadilpajalgaon project area;

(iv) establish a soils laboratory which would investigate fertility, irrigation and soil mechanics problems relevant to the project; and

gv) investigate and refine appropriate farming technologies, and thereafter implement such work plan (para 9.02 [c]).

3.21 Suecial Technical Services. Experience in the Jayakwadi and other projects under similar soil and climatic conditions in Maharashtra highlights the urgent need to refine and extend irrigated crop production techniques. The traditional farming system of planting the main crops late in the monsoon, even if the crop is supple- mented with rabi irrigation, is a response to the present production environment, which is not conducive to high productivity systems. As indicated, intensified production systems suitable to the project area have been identified and operated successfullyunder experimental stations and progressive farmers' conditions. The problem is how to adapt them quickly to average farm conditions. This would require concentrating a critical mass of multidisciplinaryexperts. Consequently, it is proposed to constitute a team of specialists to assist with the introduction of intensive irrigated agriculture into the project area. The specific subjects which they would investigate would include:

(a) refining cultural practices, including land preparation and an irrigation regime, for the crops to be grown, particularly the high-value crops, now only grown on small scale with less than optimal farming techniques; -17-

(b) developing and testing farming systems and crop sequences that ensure fanrm production levels commensurate with the necessary infrastructure investments;

(c) identifying appropriate border length and width for soils of different clay content, bearing in mind the stream size;

(d) developing the right kind of operating regimes for the distributaries and minors, commensurate with an optimal field irrigation regime for the crops grown; and

(e) identifying and establishing the most suitable and feasible farmer organizations to ensure equitable vater use and maintenance of field channels, field drains and their structures.

(f) designing and testing animal-drawn implements that can perform the operations necessary to ensure optimal crop development;

The innovative asd challenging character of the tasks to be undertaken by this team and the high expectations from the results of its operations will necessitate its support by the most competent professionals that can be recruited.

3.22 The venue of this work would initially be the SDDs, but as soon as proven, well-tested results emerge, the team would extend its activities to training appropriately qualified extension workers and to visiting farmers in their fields. Terms of reference for the specialists are in Annex 4, along with the suggested work programe. The project costs include the necessary financial and material support for this component.

3.23 To furnish the necessary expertise and plans, it would be necessary to:

(a) have a full-time special technical team, consisting of an agricultural engineer, agronomist, a part-time (6 months per year) agricultural economist, and an irrigation expert, equivalent in GOM's civil service hierarchy to a SuperintendingEngineer, Deputy Director of Agriculture or Associate Profes- sor of a University, to work during the 5 years of project implementationon problems related to their disciplines, first in the SDDs, and later on in other parts of the project, in an advisory capacity to the team members of the project;

(b) recruit consultants (if required to support the team under (a)] the same disciplines to train and advise the special technical team for an aggregate period of not less than 50 man-months, spread over four years; and

(c) ensure that the members of the special technical team trained in the appropriate disciplines are not reassigned unless suitable replacements are appointed.

An agreement has been reached with GON that it would (i) by December 31, 1985 prepare special technical services working plans, acceptable to the Bank Group, for implementation in the project and in the SDDs; (ii) by January 31, 1986 assign to CADAand its agencies and departments concerned a full-time special technical team, with suitable qualifications and experiences to carry out the special technical services (para 9.02[d]). -18-

3.24 Regarding the recruitment of consultants (para 3.23 [b]), an agreement has been reached with GOB that it would employ consultants whose qualifications, experience and teDms and conditions of employment are satisfactory to the Associa- tion. Such consultants would be selected in accordance with principles and procedures satisfactory to IDA (para 9.02 [el).

3.25 Agricultural Extension support of the project by AD would be adequate once the proposed reorganization at the field and subdivision level has taken place (para 2.17). However, to enable the additional staff to vork effectively, they would require housing, office space, vehicles and other equipment not normally provided for staff posted to established villages. Accordingly, provisions have been made for construction of houses for all VEWs and AOs assigned to the area, office space for any nev subdivision that has to be established because of the higher staffing density and the proposed reorientation of the service (paras 5.26-5.27), and for the PAO who would head up the agricultural extension district that would cover the project area (para 5.26).

C. Design. Construction and Implementation Criteria

ID Construction Wing Works

3.26 Water Supply and Demand (Annex 1, Table 25a and b). The yield of the Sind- phanA river at Majalgaon available in 3 out of 4 years is estimated at 403 Nm33 with allowance made for existing and future upstream irrigaiion developments. The yield from Paithan at the 75% level is estimated at 2,578 Mm , taking into account the existence of 6 Major, 4 Medium, and 28 Minor irrigation projects above the dan. To improve and update the hydrological data and optimize the operation of the overall system, agreements have been reached with GON that a hydrological flow model would be developed by the operational unit of the project (para 9.02 [c]). Crop water requirements were computed using the Modified Penman method. The conveyance efficiency is estimated at 75% (based on canal losses of 2 cfs/msft), the field efficiency at 65Z, making the overall efficiency 49%.

3.27 Dam Safety. The Majalgaon dam was designed by the Central Design Organiza- tion of GOM and reviewed by CWC. Acceptable techniques for foundation investigation, design and constructionwere used. The spillway capacity is based on standard Prob- able Maximum Flood (PEF) criteria. A small self contained hydro-electric plant will operate the spillway gates; they can be manually operated in case of emergency.

3.28 A Dam Safety Directorate of independent experts, satisfactory to the Bank Group, has been appointed by GON in 1979 to review plans and inspect the construction works of all new Bank-financed dams built in Mabarashtra and financed by the Bank. A Dam Safety Panel has reviewed the plans of Iajalgaondam before construction started. Agreement has been reached with GOM that, in accordance vith sound engineering practices, it will cause the Dam Safety Directorate to inspect: (i) on January 1 of each year, commencing on January 1, 1986, the Hajalgaon Dam and its related structures, and (ii) each five years, on January 1, commencing on January 1, 1986K the Paithan Dam and its related structures to determine whether there are any deficiencies in the condition of such structure, or in the quality and adequacy of maintenance or methods of operation of the ame, which may endanger their safety (para 9.02 Ef]).

3.29 Rotational Water Supply C(RWS)and Design Principles. The project is designed to operate on the rigid Shejpali system (Chapter VI). The main and branch canals are sized to provide the maximum irrigation requirement by continuous flow. During peak demand in the rabi and hot seasons, farmers will receive water at 14-day intervals -19- with each distributary being rotated 7 days on and 7 days off.. The capacity of the rotated distributaries will be twice the average flow.

3.30 Desian of the canal network. Because of the variable flow throughout the system, a high degree of control will be provided. Cross regulators will be constructed at all nodes in the main and branch canals and in the distributaries to allow control over supply levels to the outlets at all stages. Radial gates will be used for the main and branch canals. Hovable weir gates will be used in the distributaries and gated pipes in the outlets to the chaks.

3.31 The main, branch, distributary and minor canals will all be designed with least cost sections and be fully lined following a design criteria similar to that used in both MCIP I and MCIP II between 1977-84. Chak size will be close to 24 ha and field channels will be aligned along ridges and field boundaries as far as possible, and selectively lined for protection of structures and vulnerable sections. Lining specificationswill be as follows:

Main Canal: 10cm M 100 grade in situ concrete with 100cm cohesive non-swelling (CNS) backing;

Distributaries: 25-250 cfs: 7.5 cm M 100 grade in situ concrete with 60 cm CNS backing

Minors: < 25 cfs: 5x60x60 cm N 100 grade precast slabs in sides over 60 cm CNS and 5 cm CNS in bed laid over 30 cm CNS backing

< 5 cfs: lining PCC slabs 5 cm thick over 30 cm CNS backing in sides and 20 cm CNS backing in bed.

Field Channels: Selective protection (about 20% of total length) with either precast or cast in situ lining for the folloving cases:

- the slope is greater than 1/800 11 - the canal reaches build on embankment - 5 m upstream and downstream of structures - at bends and 5 m on both sides

3.32 Each chak outlet will be provided with either a measuring device or a limiting device. The limiting device is a lined section of the field channel just below the outlet gate, which is provided with a side weir; all flows greater than 1 cffs are bypassed over the weir. There is thus no incentive to tamper with the gate to obtain extra flow.

3.33 Drainage. Drainage will be required in all areas. Provisions have been made for main and link drains to connect the chak drainage to the natural drains (nullabs and rivers). Great care in design will be needed to avoid the main drainage systems

A survey of existing field channels will be done to confirm this criteria. -20- from developing into erosion gulleys. Bed controls will be needed at drainage out- falls. The drainage will be designed to remove within 48 hours a 1:20 years storm.

3.34 Roads. The program provides for the upgrading and construction of rural roads in the project area to common standards established by GOM. The network deu- sity is planned to provide all-weather access within 3 kms of any part of the irrigated area and to all villages with a population of more than 1500 within the commands. Design standards will be as follows;

(a) construction of only narrow roads (3.5 m width with a surfacing of waterbound macadam);

(b) no black topping; and

The subgrade design strictly adheres to the requirements dictated by traffic and foundation California Bearing Ratio (CBR) values (a worldwide standard accepted in India).

CAD Works

3.35 Design Criteria for Landshapinz. Even water distribution within the field is a major pre-requisite for attaining the yield potential of annual crops. This requires earthmoving on all but a few locations. Given the rolling topography of the project area and the nature and depth of its soil, the amount of soil to be moved can be considerable and its moving difficult. Permissible cuts have to be carefully determined to leave enough topsoil to avoid serious yield reduction following landshaping.

3.36 The ID's standard to shape the land to a longitudinal slope of 0.6Z and a cross slope of 0.2% will be followed. The method of irrigation recommended is border strips, about 5 m wide and 30 m long. Experience has shown that the slopes adopted are correct; however, the length and width of borders recommended will be refined according to the clay content of the soil and the size of the water stream entering the field. This would be established by the proposed technical support team, and if necessary introduced thereafter as recommended design criteria to the project.

ConstructionMethods

3.37 Work on the distributarieswill be divided into suitable reaches and each tender will include earthworks, lining and structures, thus avoiding coordination problems between contractors. The works will be grouped to allow maximum participation by large contractors. Most of the earthworks will be done by manual labor but in difficult sections where rock or deep cuts are encountered, or where large amounts of material require compaction, departmental equipment will be made available. All works below the chak outlet will be labour intensive except landshaping. About 80% of the landshapingwill be done mechanically because the available labor is insufficient to complete the program manually. To speed up landshaping, 50 light bulldozers are to be purchased under the project. -21-

Status of Project Preparation

3.38 The major civil works in the Jayakwadi area are aimed at adding missing elements and/or upgrading of the standard of existing elements. Detailed surveys and designs for the canal lining works are available and plans for roads and drainage systems are well advanced. For the Majalgaon area the major civil works would start in 1985, including the distributary system for the first two segments (up to km 100) most of which has been surveyed and preliminary layouts completed. Cost estimates of the distributaries are based on detailed designs of sample areas. ID, with the support of PWD, has sufficient capacity to produce designs for the works of the new distributaries and minors, and the drainage and road networks required. The CADA of Jayakwadi and Parbhani. together with MLDC, have a proven ability to design and construct 16,000 ha of CAD works per year, including field channels, field drains, field channel protection, and landshaping. Provision has been made to train the additional cadres needed to complete the 30,000 ha per year required under the project. Proper balance would be maintained between MbnC, CADA, ID Construction Wing and PWD works, and the annual budgets will be allocated to each accordingly. The tendency to give priorities to major civil works should be avoided.

Proiect Implementation Schedule (Chart 1)

3.39 All the works in Jayakwadi Command are to be completed under the project (1985-89). In Majalgaon Command, only the dam and the first segment (km 0 to 30-24,000 ha) are to be fully completed, while for the second segment (km 31 to 100-33,000 ha) a substantial part of the civil works would be completed, but none of CADA-s works. The vorks not completed, and the full development of the last segment (km 101 to 165--43,000 ha) are scheduled for 1990-94, the final fourth stage of the project (see Annex 1, Table 8).

IV. COST ESTIMATES AND FINA5NCIALARIANGEISB

Cost Estimates (Annex 1, Tables 4 to 14)

4.01 Estimated project costs would total Rs 3,872 H (US$322.7 K). Ongoing works for completion of the Majalgaon Dam and Main Canal totalling US$66.4 M are not included in this estimate. Cost estimates based on expected April 1985 prices are summarized as follows:

(Rs Million) - (US$ million) -- Proiect Components /a Local Foreign Total Local Foreign Total

(a) Jayakwadi - First Segment 161.7 22.9 184.5 13.5 1.9 15.4 (b) Jayakwadi - Second Segment 278.4 25.8 304.1 23.1 2.1 25.3 (c) Jayakwadi - Third Segment 865.8 85.5 951.3 72.2 7.1 79 ' (d) Majalgaon - First Segment 479.7 56.4 536.1 40.0 4.7 44.7 (e) Hajalgaon - Second Segment 546.9 82.5 629.4 45.6 6.9 52.4 (f) Equipment/SDD/Technical Services 155.8 6.2 161.9 13.0 0.5 13.5

Total Base Costs 2,488.1 279.1 2,767.3 207.3 23.3 230.6 Physical Contingencies 308.0 40.9 348.9 25.7 3.4 29.1 Price Contingencies 677.6 78.4 756.0 56.5 6.5 63.0

Total Project Costs 3,473.7 398.5 3,872.2 289.5 33.2 322.7

La For definition of segments and components and description of works, see Annex 1, Table 3; detailed work quantities, costs and timing are in Annex 1, Tables 4 to 9. -22-

4.02 Physical contingencieswere estimated at 15% for constructionworks and average 13% of the base-costs. Price contingencies,which account for about 192 of total project costs, were based on expected inflation rates of 8.5% per year for local expenditures and 8% for 1985, 9% for 1986, 1987, and 1988, and 7.5% thereafter for foreign expenditures. Taxes and duties included in the cost estimates are negligible.

Finaucinz

4.03 Tue proposed credit of US$160 X would finance the foreign exchange component (US$33.2 M) and about 44% of local costs. All expenditures would be met by GOM from its development budget, which includes a GOI contribution. GOM has allocated adequate funds under the 7th Plan for the project. The IDA credit would be on standard IDA terms. Agreements have been reached with GOI that it will make the proceeds of the credit available to GOM on GOI's standard terms and arrangements for development assistance to the State (para 9.01 [b). Further, an agreement has been reached with GON that it will it would promptly provide resources and funds to execute the project in accordance with the project implementation and expenditure program (para 9.02 [g]). Retroactive financing, not exceeding US$5.0 M, would be provided for qualified expenditures incurred after September 1, 1984.

Procurement

4.04 Civil Works. Major works, other than CADA, financed under the project (about 60% of the total cost) would cost about US$194.6 M, including physicaland price contingencies, but excluding land acquisition, engineering, and administrationcosts. Works will be packaged whenever practicable to attract competition from large contractors yet bids would be allowed on parts of the package to encourage smaller contractors to participate as well. Approximately US$25.0 M worth of the works, most of which on the main and branch canal system of Majalgaon, would exceed US$6.0 M per package and be procured under ICB procedures. Approximately US$111.3 4 worth of works on various sites, would cost between US$25,000 and US$6.0 X per package and would be procured under LCB procedures. The CADA works, totalling US$83.3 X, would be scattered over the entire project area and, for operational reasons, would have to be awarded at different times. None of the CADA contracts would exceed US$0.5 M and about US$45.4 M will be procured under LCB procedures. Bank Group approved work-order 1/ type bidding procedures will be used on small contracts costing equivalent or less than US$25,000 each, up to an aggregate of US$32.6 1. For safety and logistic reasons, or where it will be impracticable to draw up a specification,up to an aggregate of US$63.6 M, may be accomplished with departmental forces.

4.05 Equipment and Vehicles totalling about Rs 69.6 K (US$5.8 M), including physical and price contingencies, are included in the project (see Annex 1,

sJ An Indian system of public tendering for minor works. -23-

Tables 9, 11, 13a and 13b). Items totalling about Rs 61.2 v (US$5.1 M) would be grouped in appropriate bidding packages costing each US$100,000 or more, and procured through ICB procedures in accordance with Bank Group guidelines. Qualified domestic manufacturers would receive a preference in bid evaluation of 15X, or the prevailing customs duty if lower, and bid documents would specify their eligibility and the manner of application of the preference. Light equipment and vehicles estimated to total about RB 7.2 M (US$0.6 1) are readily available domestically. Because of the need for servicing and spare parts facilities, considerable advantages would be derived from procuring locally manufactured light equipment and vehicles. These goods would be procured under LCB procedures satisfactory to Bank Group.

Procurement Method (US$ millions)

Projcct Work Total Categorv ICB LCB Order /a Department a NA Cost

Maior Works /b 25.0 111.3 19.3 39.0 0 194.6 (13.5) (57.0) (10.5) (19.0) (0) (100.0) EguiDment 5.1 0.7 0 0 0 5.8 (4.3) C .5) (O) (0) (0) (4.8) CADA Works /c 0 45.4 13.3 24.6 0 83.3 (0) (25.4) (7.5) (15.3) (0) (48.2) Special Dev. 0 0 0 0 7.3 7.3 Distributaries (0) (0) (0) (0) (4.4) (4.4) Technical Services 0 0 0 0 2.7 2.7 (0) (0) (0) (0) (2.6) (2.6) Engineering &0 0 0 0 29.0 29.0 Administration (0) (0) (0) (0) (0) (0) 30.1 157.4 32.6 63.6 39.0 322.7 Total (17.8) (82.9) (18.0) (34.3) (7.0) (160)

Percentage 11 52 11 21.5 4.5 100

/a Maximum permitted. /b Split between ID Construction Wing and PWD (Annex 1, Table 17) /c Split between CADA and MLDC (Annex 1, Table 17)

Note: Figures in parentheses are the amounts financed by the Credit.

4.06 Contract Review. All bidding packages for works estimated to cost Rs 6 M (US$0.5 H) or more, and all ICB packages for goods, would be subject to the Bank Group's pre-action review of the procurement documents and procedures. Such packages would account for about 45Z of the total estimated value of civil works, and 89Z of goods procurement. The balance of civil works contracts and all CADA contracts would be subject to random post-action review by the Bank Group.

4.07 Standard Bid Documents and GOM Special Tender Committee. The Central Water Commission of GOI has developed model ICB and LCB bidding documents and procedures for both works and goods procurement. The model documents and procedures with any modifications which may be required by the Bank Group, would be used by GOM for procurement under the project. -24-

Disbursements

4.08 Disbursements under the credit would be made against:

(a) Civil works-55Z of expenditures on main canals, distributary canals and minors, main and link drainage, roads, field channels, field channel protection, field drains, landshaping;

(b) Vehicles and equipment:

(i) directly imported-100% of foreign expenditures; (ii) locally manufactured-lOOX of ex-factory costs; (iii) other locally procured-70Z; -

(c) Monitoring and evaluation, housing and offices for agricultural staff, and Specially Developed Distributary (including salaries and allowances for incremental staff)-70Z;

(d) Special surveys, training programs, special technical services and study tours-1OOZ.

Disbursement requests for civil works would be made against certificates of expenditure submitted by GOM, itemized by project component. Disbursements for OFD works excluding landshaping within a chak would only be made upon completion. Disbursement requests for such work would be submitted together with a completion certifi:cateduly signed by the AE in charge, stating that all works in the chak have been completed in accordance with the agreed planning and design criteria. Disbursements for landshaping will be made for fields completed according to CADA specifications.Disbursements for payments of less than Rs 300,000 for works (including departmentalworks) or Rs 150,000 for goods, incremental staff cost for training, adaptive and engineering research, monitoring and evaluation and the costs for the special surveys and study tours would be against certificates of expenditures. Documentation for these works would be retained by GOMand made available for inspection by the Bank Group during review missions. Full documentation would be required for all other disbursements.

4.09 The estimated schedule of expenditures, the semiannual disbursement schedule and the proposed allocation of the proceeds of the credit are presented in Annex 1, Tables 15, 16, and 17, respectively. The disbursement profile is based on the 3rd to 8th year of Indian irrigation sector disbursement profiles. It is expected that disbursementswould be completed by December 31, 1990.

Accounts and Audits

4.10 The project would be subject to normal government control and auditing procedures that are satisfactory. A resident audit officer, representing the state accountant general, would audit project accounts. Separate accounts would be maintained for project expenditures. Although continuous and annual audits are carried out in a timely manner, their finalization is a lengthy process in the Statutory Audit Report presented to the legislature. It would be essential, therefore, to have interim certified statements of account including audited statements of expenditures. Such statements, certified by the accountant general or his designee and supported by an itemized account and summary of expenditures,would be submitted to the Bank -25-

Group as soon as possible but no more than six months after the end of each fiscal year. Agreement has been reached with GOM that it would (i) maintain separate records and accounts to reflect, in accordance with sound accounting principles and procedures, its resources, expenditures and operations related to the project; (ii) furnish to the Association copies of accounts and financial statements for each year, certified as to their accuracy and authen- ticity by an independent auditor acceptable to the Association, not later than nine months after the end of each fiscal year; (iii) have accounts and financial statements for each fiscal year audited by independent auditors acceptable to the Bank Group; (iv) furnish to the Bank Group immediately following its finalization, the report of such audit in such detail as the Bank Group shall reasonably request; {v) furnish to the Bark Group any other information as it shall reasonably request (para 9.02 [hl).

V. ORGANIZATIONAND MANAGEMENT

General

5.01 Under the project, the major emphasis would shift from large infrastructureworks now taken by the Construction Win& of the Irrigation Department (ID), to on-farm development, which is the responsibilityof CADA Win2 of ID and provision of agricultural services to the benefiting farmers to be rendered mainly by the Agriculture (AD) and the Cooperative (CD) Departments. This new emphasis would be reflected in the proposed project organization. CADA, together with the proposed new agricultural extension district of the Agriculture Department would have the major role in executing increasing amounts of project works, providing reliable and timely water supply, and would provide more technical and managerial support than hitherto to enhance agricultural production. Special managerial and logistical effort would be provided to the Specially Developed Distributaries (SDDs) to be established under the project.

The Irrigation Department-

5.02 The overall organization of the Irrigation Department is shown in Chart No. 2. The senior position in the department is held by the Secretary of Irrigation, who is in charge of studies, planning, implementation,operation and maintenance of all irrigation projects in the State. The Secretary and Commissioner of CADA is equal in seniority to tbe Secretary, Irrigation; the CADA regional circles operate under his control.

5.03 The Irrigation Department was the sole organization in the State to deal with irrigation until the mid-1970s, with focus on construction and O&M activities. With the establishment of CADAother aspects of irrigated agriculture, like agricultural support services and on-farm development were taken up in cooperation with other government departments. However, construction continued to get a major share of the funds. Sixteen Chief Engineers (CE) are heading the central and regional offices of ID, none of which are in CADA. These offices are in charge of preparation, planning, design, implementation and O&M of all irrigation projects in the state. CADA takes part only in some of the completed projects, and there, beside its role as a coordinator, takes up on-farm development below the Government outlet and the O&Mof the systems after completion for a currently undetermined period. -26-

5.04 The Jayakvadi/Majalgaonproject is presently managed by the Chief Engineer, Special ProJects in Aurangabad, who sponsors all construction activities in the region. Although officially the CADA Administrator is not under his control and CADA should take over parts of the project once construction is completed, his seniority ensures him to remain the dominant figure of the project.

The-Command-Area DeveloDment-Authorities (CADA-)

5.05 CADA in Maharashtra. CADA, which was created to speed up utilization of the irrigation potential created by the projects, is in effect a coordinating body during project implementation. A State Cabinet Subcommittee directs its policy. The CAnA Commissioner, who is Secretary of the Sub-Committee, is responsible for preparing annual development and financial plans. The plans are worked out im conjunction with the Secretaries of Finance, Agriculture, Irrigation, Public Works, and other ministries involved in CADA schemes. There are 13 CADAs in the State, each headed by an Administrator,with the rank of SE, supported by divisions, subdivisions and sections. The Administrator is in charge of coordinating the activities of all entities involved in the area. He is assisted by officers seconded from other departments: (i) the Irrigation Department completes all construction down to the outlet (24 ha), drainage network (main and link) and service roads; (ii) the Agriculture Department renders technical advice; (iii) the Public Works Department constructs and maintains the command area roads; and (iv) the Cooperative Department coordinates the supply of credit, seeds, fertilizers, and pesticides. Each CADA Administrator has, at least on paper, a single line of control over the works of the different disciplines involved in the project but in practice can be overruled by the regional CE of ID.

5.06 CADAOrzanization in tre- Proiect--Area. The first CADA in the project area was established in 1975, and covered the Jayakwadi and Pumna projects. In 1981, a separate CADAwas established for Purna. As the workload of Jayakwadi's CADA continued to grow, especially with MWIP, a new unit, headed by a SuperintendingEngineer, was established in 1983, with headquarters in Parbhani, to handle land development for the entire Jayakwadi/Majalgaon complex; however, normal CADA responsibilitiescontinue to lie with the Jayakwadi CADA Administrator. Under this arrangement, the construction of the OFD works-except land development-and subsequent management, operation and maintenance, are the responsibilityof the CADA Administrator,whose headquarters are in Aurangabad. He is responsible to an Executive Committee (EC) comprised of regional heads of departments, members of the Legislative Assembly and farmers' representatives. MWUP, which is totally under CADA, includes, however, some works above the outlets, normally taken up by the Construction Wing of ID. This is expected to change with the rapid expansion of CADA's responsibilities (para 5.09).

5.07 The Administrator in Aurangabad directs the work of a team consisting of Deputy Administrator (Engineering),a Deputy Director of Agriculture, an Assistant Administrator of the Revenue Department, Accountant Officers of Finance Department, a Deputy Registrar of the Cooperative Department and a Statistician of the Economics and Statistics Department. A Technical Cell provides the necessary technical support and quality control, and a Monitor- ing Cell monitors the activities in each of the project sections (see Chart 3). -27-

5.08 Because major irrigation projects-except Jayakwadi/Majalgaon--are relatively small and a typical Maharashtra CADA covers less than 100,000 ha, its Administrator is of the level of SE. His staff is correspondinglysmall, with limited slots for professionals. Because of the vast area under the project, its rapid expected development and the intricate multidisciplinary activities to be carried out simultaneously in different locations, much strongeT managerial capability and authority should be given to the Jayak- wadi/Majalgaon CADA. GOM is considering to upgrade the position of CADA Administrator in Aurangabad to the rank of CE, thereby enabling him to control the project as a whole and at the same time administer the various parts and disciplines of the project more effectively. Under the upgraded CADA Administrator, four sub-commands (or units), each to be headed by an SE, would be established and given enough support and authority to carry out and/or coordinate all development programs within their units. Accordingly, an agreement has been reached with GOM that by December 31, 1985, the post of CADA Administrator in charge of the Jayakwadi/Majalgaonscheme will be upgraded to the rank of Chief Engineer and that four sub-commands will be established in the project area (para 9.02 [i]).

5.09 Design and Construction of OFD. All survey, design, planning, procurement and construction activities of OFD are carried out by the appropriate divisions, subdivisions and sections supervised by the Deputy Administrator (Engineering) of GADA. Additional divisions would be established under the project to cover the new units and activities. However, CADA is presently overloaded with constructionworks, more since it has been ch.'rgedwith coordinating all MWUP works in Jayakwadi. Some of the design and construction works presently implemented by CADA, like the completion of distributaries and minors in the first two segments of Jayakwadi, and the construction of main and link drainage systems over the two commands, would be transferred to ID's CE in Aurangebad, whose other works ere slowing down as the project approaches its final stage of construction. consequently, the burden on CADA staff would be eased and they would be able to concentrate their efforts more on OFD works, support to the farmers, accelerated development of the SDDs, day-to-day management and establishment of appropriate O&M on the two commAnds.

5.10 Quality Control and Commissioning. Both CADA and the Construction Wing of CE have their technical units that exercise quality control in the project area. CADA, whose scope of works is larger and more scattered although cheaper than that of the Construction Wing, would use the latter's technical expertise, laboratories and equipment, but should have its own quality control field staff. Specific duties of the EEs and the Assistant Engineers (AEs) in CADA have been defined. Inspection books and chak registers would be maintained to report and monitor observations. The Tech- nical Unit, which is also in charge of quality control, would allocate adequate staff, prepare annual schedules and carry out on a regular basis sys- tematic random spot checks in all parts of the project. With respect to quality of irrigation network and OFD works, the statistical design and frequency of quality checks will be such that it will enable to quantify the quality of project works through estimates (means) having confidence limits of 10% at 95% probability level. It will have control of:

'a) physical works including earthvorks, concrete and gate fabrication;

(b) design, with particular reference to co-ordinatingmain system and chak design; -28-

Similar provision wi11 be taken up by the technical unit of the Construction Wing, Anrangabad, which, besides carrying out its routine quality control assignments, will support CADA. Accordingly, agreement has been reached with GOM that it would take all actions, as shall be necessary, to ensure adequate quality control by CADA (and ID) of surveys, planning, design, construction and O&Mactivities (para 9.02 [j]).

5.11 To ensure that the works will be properly completed, and that the concerned Outlet Committees (OCs) and Minor Water Utilization Committees (i[UCs) can be entrusted with the responsibility for 0OK, water allocations and sanctioning, GON undertook to (i) test and certify that the field irrigation drainage channels, service roads and landshaping within the chak have been carried out in accordance with agreed planning design and construction standards and criteria and, thereafter, entrust the pertinent outlet and Minor Water Utilization Committees (para 5.22) vith the responsibility of operating and maintaining such upgraded field irrigation and drainage channels and maintaining such service roads; (ii) take all such action as shall be required to ensure that such farmers- organizations shall properly operate and maintain such field irrigation and drainage channels and maintain such service roads; and (iii) promptly repair and maintain the field irrigation, drainage channels and service roads at farmers- cost, in case such works are not promptly carried out by the concerned farmers' organizations.

5.12 Engineerini Staff TraininR. To ensure the implementation of the works to the agreed standards it would be essential that the engineering staff working on on-farm development (OFD) be trained by WALMI, and/or by CADAs' own training facilities. The WALMIcan meet part of the overall demand; the rest can be met through special short training courses in WALMI and by CADA (paras 6.08-6.10).

5.13 Operation and Maintenance. Responsibility for the day-to-day operation of the canal system up to the chak outlets in Jayakwadi/lajalgaonrests presently with CADA, although eventually the O&M Wing of ID will take it over. Agreement has been reached with GOMthat it would operate and maintain adequately the distributaries, minors, drainage channels, link drains, service roads and buildings constructed under the project, according to sound engineering principles and standards, and provide sufficient funds to enable such operation and maintenance to be carried out (para 9.02 [k]). For purposes of operating the irrigation systems under the project according to sound engineering principles and standards, CADAwould carry out an annual survey of the required repairs in each irrigation system and execute repairs promptly.

5.14 Operation and maintenance within the chaks will be the responsibility of the Outlet Committees COCs). Strong efforts would be made by GOM to ensure that the OCs cause their members properly to maintain, or pay for maintaining their field channels. However, GOM undertook to cause CADA to repair and maintain the field irrigation and drainage channels at farmers' costs, wherever the maintenance works performed by the OCs are not up to sound engineering standards, and provide the necessary facilities for that purpose. -29-

- sandsaDdoz Annex 3)

5.15 ahbarashtra-liand- Deveo Cment-orporation {WMDC). To support and promote landshaping, farmers were encouraged to apply for loans from commercial banking sources who are able to refinance through NABARD75Z of the sum lent if the applicant bad a clear repayment record. Such applicants pay 10.25X interest. For farmers not eligible for commercial bank loans, funds for anfdshaping came from a Special Loan Account (SL&) with 13.8% interest (para 7.11)_ To channel these loans and organize works not taken up by the farmers, the Maharashtra Land Development Corporation (IwDC) was established, with headquarters in Pone. MLDChas an annual capacity to organize and administer about 25,000 ha of landshaping per annum in all CADAareas, as demonstrated by their achievements during the last five years. The 1984-85 program of NLDC contemplates work of some 45,000 ha, one-third of which in Jayakwadi, which, in the light of past achievements, seems entirely feasible. With minor strengthening, MLDCwill be capable of handling financial assistance for landshaping envisaged under the project.

5.16 Ways of !mplementation. Landshaping has proved to be a key factor to ensure satisfactory levels of field irrigation efficiency and to attain the productivity levels assumed under the project. It is expected that it will be implemented in one of three ways: (a) by farmers, using their own resources and not seeking technical advice; (b) by farmers who seek technical advice but without financial support; (c) by farmers who seek technical, financial and implementation assistance, in which case works will be organized by MLDC and executed by CADA.

5.17 Farmers usims entirely their own initiative would be assisted with free plans and their completed work would be checked whether it conforms to the overall chak plan.

5.1 8 Farmers who-seek-technical-assistance- only would have their fields marked for cut and fill by CAsA's landshaping division, who, on completion of the work, would re-survey the plots and, if necessary, would indicate any additional work required. This service, being entirely of an advisory nature, would be provided as part of the project, free of charge. The farmers would have access, at nominal charge, to metal scraperboards for animal draft, and graders, scrapers and rear blades suitable for farm tractors equipped with standard 3-point linkage; CADAwould maintain a stock of these items.

5.19 landsapin -n beha-If-of-the-farmer. This part of the work is expected to account for about 90X of all landshaping. Work would begin after an agreement with farmers on financing and timing has been reached. The implementing agency would be CADA. They may use EGS manual labor, engage farmers with their oxen or farm tractors for which they would provide suitable attachments, or use their own mechanical equipment. On completion of the work CADAwould provide the farmer with a document showing that the land had been shaped to satisfactory standards. This document would be the farmer's certification, and could be used as evidence if the work turns out to be deficient.

5.20 Finajcg-. Landshaping is relatively expeusive (Rs 3-4,000/ha) and as its speedy execution is important to realize the expected project benefits, the money (Rs 13-18,000 per farm) must be spent over a short period. Consequently many farmers would require financial assistance for -30- landshaping. The main sources of such assistance were to be the institu- tionai credit system (Commercial and Land Development Banks) and the SL& that vas set up by GOI, GOM and NARARD, and out of which farmers not eligible for regular bank loans could borrow for landshaping. However, as indicated (para 2.25), institutional credit sources are severely constrained due to poor recovery of past loans. Despite that, the demand for SLA loans has been low, largely because of the restrictive lending terms. The financial analysis of representative farm models (Anner 1, Tables 29 [a] and 29 (b]) indicates that many farmers would not be able to repay their loans under the prevailing lending terms, especially in view of the temporary decline in productivity following landshaping (para 7.11). The SLA is too small to cover expected needs under the project. To overcome financial and technical constraints, an understanding has been reached with GOMthat it would:

(a) cause CADAto (i) prepare and furnish to the farmers benefiting from the Proje^t, free of charge, an overall plan and detailed plans (including irrigation and drainage facilities) for carrying out the landshaping; (ii) provide, free of charge, any additional technical assistance that may be requested by farmers for purposes of carrying out the landshaping activities under the project;

(b) make available to MLDCall funds requized to enable CADAto make landshaping loans, under terms and conditions identical to those made under the SLA, to farmers wishing to undertake landshaping and vho are not eligible for obtaining loans from other sources on similar or better terms; provided, however, that the amount of any such loan shall not exceed Rs 3,000 per hectare of the area to be landshaped to a maximum loan amount, per farmer, of Rs 30,000;

Cc) make adequate arrangements for the full recovery of the principal, interest and other charges of the landshaping loans made by NLDC; and

,d) cause MnLC to maintain special records for each farmer benefiting under this provision and transfer them on completion of works to the Land Revenue authorities for recovery, with arrears to be treated as arrears on land revenue.

To support the foregoing understandings, an agreement has been reached with GOM that it would (a) take all such action as shall be necessary, including provision of funds, to enable MLDC to provide loans to farmers for purposes of carrying out, through CADA, the landshaping of their fields; and (b) make adequate arrangements for the recovery of the funds so onlent (para 9.02l]).

5.21 In view of the fact that present terms for landshaping loans would appear not to give a long enough grace period and also may predicate loan repayment at a rate that would sizeably reduce farmers' incomes and thereby act as a disincentive, an agreement has been reached with GON that it would carry out a socio-economic study, to be completed not later than by December 31, 1986, to assess the capacity of farmers to repay landshaping loans and use its recommendations to revise the lending terms for landshaping loans, including those made prior to the said review (para 9.02 [m). -31-

Farmers Ortanizations

5.22 Farmers organizations would be set up in the project area at three levels (at the cbak, minor and distributary/branch, or main channel level) to maximize their involvement in project operation and to improve communications with the operating staff (para 5.11). Farmers would be able to convey complaints, requests and suggestions to CADAthrough these organizations. Coor- dination between the three levels is assured as each comprises both farmers' leaders and CADAofficials. The CADAExecutive Committee, which also includes faxmers' representatives, would oversee the performance of these local committees. The proposed organization is similar to what is being established under MWUP which covers only 14Z of the project area. Although operating only since late 1983, indications are that the various committees will, when fully established, be effective, if given appropriate advice and support.

(a) Outlet Committee (OCs) would be organized for each chak to maintain field channels, distribute water according to RWS schedules, and prevent unauthorized irrigation. The irrigation schedules would be prepared by the O&H section of each sub-command, and displayed on signboards near the chak outlet well in advance of actual water delivery. Each OC would have five to seven members: two farmers on each field channel, one tail ender on each field channel, and the responsible Canal Inspector (CI) and VEW. A farmer leader, elected by the chaks farmers and the CI, would serve as secretary. The OCs would be formed as soon as the chak boundaries have been determined and would be consulted on the most appropriate layout of field channels, location of farm outlets and crossings, and constraints in the present system.

(b) Water Utilization Committees (WUCs) (locally known as Water Panchayat Committee) would be organized for each minor. WUC membership would comprise of five farmer leaders (out of which two would be small landholders and/or tail enders), the CI, and the JE. Initially, the WUC would only monitor the irrigation schedules prepared by the O&M sub-command section, process complaints and seek appropriate solutions. However, GOM's final aim is that the WUCs should become fully responsible for water distribution anong the chaks on a minor since the many outlets on a minor are a heavy burden for CADA's O&M organization. The irrigation schedules for the chaks would be displayed at the head of the minor.

(c) Canal Advisory Committees (CACs) would be set up for areas under the jurisdiction of the EE covering 40,000 ha or less. Five to ten members of the WUC would be elected to the CAC. The EE would be the head of the CAC; the Agricultural Development Officer, the Assistant Engineer, Planning Officer of the Zilla Parishad and a representative of the local sugar factories would also be members. The CAC would develop the irrigation programs, monitor the performance of the main system, identify deficiencies and make suggestions for improvements.

Agreement has been reached with GOM that it would establish suitable farmers' organizations in each of the project command areas in accordance with a plan satisfactory to GOX and the 8ank Group (para 9.02 (nu). -32-

Establishment of a Proiect Steerin, Committee

5.23 As indicated, accelerated agricultural production is the main project objective. The four SDDs which will demonstrate accelerated multi- facet development will spearhead agricultural development efforts. For tffective implementation, policy decisions and co-ordination wouLd have to be made at a high level, to ensure the success of these distributaries and the rapid diffusion of their results all over the project area. It is therefore proposed to set up a Project Steering Committee to review progress and provide guidance to the CAD&Administrator who will be in charge of day-to-day execution and operation.

5.24 As proposed by GOM, the Steering Committee would consist of: (a) Secretary, Irrigation Department (Chairman) (b) Commissioner, Comuand Area Development Authority; (c) Director of Agriculture, Maharashtra State, (d) Chief Engineer (Special Projects) Aurangabad; (e) Joint Director of Agriculture (T&V), Anrangabad; (f) Director of Research Parbhani University, (g) Administrator, CADA, Aurangabad (Member, Secretary). Additional members may be coopted at the Chairman's discretion.

5.25 The Committee would meet once in three months and review the program, progress and results of the project with emphasis, during the first 2-3 years, on the SDDs. The Committee would seek expert advice on management, agriculture, sociology, monitoring, and other pertinent issues. Modifica- tions in the plan of operation would be made from time to time as the need for them arises, duly considering the experts' opinions and advice. The Committee shall thus guide the administrator in the execution of the SDDs, shall be closely involved in their developments, and shall propose strategies and ways to spread the results promptly to other areas (para 3.18). Agree- ment has been reached with GOM that it would establish the Steering Committee by April 30, 1985, with the powers and functions outlined above (para 9.02 [b]).

The Department of Acriculture (AD)

5.26 Overall organization of the Department of Agriculture (AD) is shown in Chart No. 4 and its current extension and research activities are described in paras 2.17 and 2.18.

5.27 Aaricultural Extension. Changes in the extension organization would ensure that all staff dealing with technical, supply and administrative problems in the project area will have no, or minimal, responsibilities outside the project area. This would be achieved by establishing two new agricultural districts specifically for the project area; the boundaries will take into account that villages are situated, respectively, north and south of the canals and their farmers have land inside and outside the commanded area. All staff posted to these districts would be of the regular cadre of the Department of Agriculture. The staffing intensity would be 1 VEW per 800 farmers and the existing proportion of upper level staff to VEWs would be maintained. Housing for staff, office space, and necessary equipment would be provided out of project funds. Accordingly, an agreement has been reached with GOM that it would establish and, thereafter maintain within its Agricul- ture Department two new agricultural districts in the Project Area, each headed by a qualified and experienced officer, such districts to be assigned, at all times, with such powers, funds, staffing, resources and responsibilities as shall be required to enable them adequately to undertake their -33- respective responsibilities regarding agricultural research and extension in the Project Area; the first of such districts shall be established not later than December 31, 1985 and the second, not later than September 30, 1988 (para 9.02 fol).

5.28 With the organization outlined above, VEWs would be working in villages where all or most of the farmland is, or will soon be, conmanded by the project. All extension staff located in the newly-created districts would work only in such district(s), under the control of the District Agricultural Officer(s) (PAOs) created under the project.

The Public Works Department (PWD)

5.29 The Role of PWD in the Proiect. As in previous stages and in other irrigation projects in Maharashtra, PWD would survey, plan, design, supervise construction, and thereafter maintain the command area roads in close consultation with the CE of ID and with CADAmanagement of the project. The Road Project Cell in PWD Headquarters would be retained throughout the implementation period, with responsibility for overall control and liaison of the road component. With the large scope of the works (657 km) two Command Area Road Circles would be engaged exclusively in project-related works. In addition, two specialist subdivisions, for quality control and maintenance of construction equipment, would be attached to each circle. Back-up would be provided by the PWD's Quality Control Organization and Mechanical Wing; the Operation Wing would provide field testing equipment for quality control and mobile maintenance units to undertake a regular program of inspection and servicing of equipment employed on the widely scattered construction sites.

5.30 Road Maintenance. GOM is conscious of the need to safeguard the large investments now being made in the rural road programs by ensuring that proper and regular road maintenance is undertaken. For many years, responsibility for constructing and maintaining the roads has been divided between FWD who looked after the national and state highways and the Zilla Parishads (ZP) who took charge of all other roads. The ZP have their own public works organization. They were partly fintnced from State funds, channelled through various GO! departmental budgets (including P1D), and partly from local revenue. The CE (PWD) retains ultimate responsibility for works carried out by the ZP units and financed from state funds, but, in practice, it is often difficult to control effectively the large number of semi-autonomous entities. With the introduction of large rural roads programs in 1977/78, PWDwas appointed as a sole executing agency for the road construction works, regardless of the road category. They are also responsible for the maintenance of selected lengths of important district roads. Thus, many of the scheme roads would be retained by rwD for maintenance when construction is completed; the remainder would be handed over to the local ZP units. In both cases, the ultimate responsibility for adequate maintenance would rest with PWD. -34-

Monitorint and Evaluation

5.31 The monitoringand evaluation unit, nov under CADAAurangabad, will be strengthened and perform the following functions, if appropriate, in coordination with the relevant entities. The Monitoring Unit of the Construction Wing of Aurangabad will participate in some of these assignments. An agreement has been reached with GOMthat (i) it will prepare a plan for monitoring and evaluation activities, for construction activities,expenditures, irrigation performance, groundwater, crops, water charges, and staff posting and training by December 31, 1985; (ii) strengthen the existing Monitoring and Evaluation Unit and provide it with adequate funds and staffing to carry out the monitoring activities under the project; and (iii) commencing June 30, 1986, furnish the Association within three months after the end of each reporting period semi-annual reports, which would compare plan and actual implementation in physical and financial terms; describe deviations from plans and explain the reasons; provide a revised implementation schedule, with analyses and conclusions of the monitoring and evaluation activities; and (iv) submit to the Association a project completion report not later than six months after the closing date of the credit (para 9.02 [p1). A special Mh&Ecell would be established within the M&EUnit of CADAto monitor the four SDDs and adjacent control distributaries. The methodology of conducting the above methods of data collection will be determined in consultation with qualified experts.

5.32 Evaluation studies of project impact on production and income will be conducted through universities or research institutes for which provisions vere made in the cost estimates (Annex 1, Table 9).

VI. WATER MAAAGEMENT AND TRAINING

Present Situation

6.01 Most major projects in Maharashtra use the shejpali system of water management which operates under the Bombay Irrigation Act. Under this system, farmers apply for "sanctions" (permission to use irrigation water) seasonally for annual crops and for up to 6 years for perennials. The sanction is a form of contract under which ID agrees to supply irrigation water until the sanctioned crop matures. Sanctions are granted by ID, after considering demand, availability of water, soil conditions and the current policies of the Govern- ment as to which crops should have priority for irrigation. According to the sanctioned areas in each chak farmers are supplied in turn until their crops are fully irrigated. Irrigation is from tail to head of the chak field channels. When all the sanctioned areas in the chak are irrigated, the supply is either turned off or, if crops require more water, the cycle is started again at the lower end. In the absence of gauging devices to measure the flows, each plot is irrigated until the farmer is satisfied. In such system there is no incentive to save water and therefore the time when the farmer receives or turns off the water is unpredictable,making efficient water management at field level difficult. Intervals between irrigations during maximum demand tend to be too long. The main and distribution systems have to operate according to demand. In times of peak demand, they run continuously; in times of sparse demand, they have to be regulated. -35-

6.02 GOM is aware of the deficienciesof the shejpalisystem and has examinedthe possibilitiesof introducingalternative systems such as warabandi.l/Consequently, a systemwhich combinesthe advantagesof both shejpaliand warabandihas been devised. That system is calledrigid shejpali. It has been introducedinto the area and is the form of RotationalWater Supply (RWS) to be used in the project. In this modifiedsystem a gauged standard irrigation stream provides water to each irrigatoron fixed (preset) time schedule and duration,according to the crops sanctioned. It has the advantage of being predeterminedand havingbuilt-in incentivesto improveirrigation efficiency: the amount of water allottedis based on the crop and its area and assumesaverage irrigationefficiency. If no landshapinghas been done, field efficiency will be low and the farmer will not be able to irrigate the entire area. Its great disadvantagesare the largernumber (than in warabandi) of gate adjustments required and the greater risk that operators will discriminate between farmers. However, if required, both rigid shejpali and warabandi are flexible enough, and interchangeable at a later stage.

Rotational Water Supply Operation

6.03 The Outlet and Field Channels. The fundamental principle of RWSis to supplyan efficient,convenient, easily usable irrigationstream at preset intervalsto each farmer. Experienceand researchhave shown that satisfactory delivery for open-channel gravitational projects with many smallholder users lies roughly in the 18-40 1/sec range. It is influenced by soils, crops, topography,farm size and farmer skills. Given flows of this order, which are equivalent to supplying a depth of 155-345 mm/day over I ha, the irrigation stream must necessarily be intermittent and rotated within the chaks. GOM has standardizedon a 1 cfs (28 uls) flow, which is about 10 mu/hr, for 1 ha. .Z/ The intervalbetween irrigationsdepends on the crop'swater requirementand field capacity. In black cotton soils, a 14-day cycle has been found agronomi- cally suitable for the majority of crops grown, and is convenientsince the farmer can be assured of his supply on the same day in each cycle. A fixed 1 cfs irrigation stream implies a maximum chak size of around 24 ha if the field irrigation intensity is about 70Z. Therefore various durations of chak flow will be necessary for differing chak sizes and irrigated crop intensities within the chak. 6.04 PresentOperation of the JayakwadiSystem. Presently,the outlets in upper Jayakwadihave a more or less uniformdischarge of 28 l/secwhich serve differingchak sizes,and only part of the commandedarea is sanctionedfor irrigation. Thus, the flows at the main canal and the distributariesneed frequentadjustments at the pertinentcontrol structures. To complicatethe situation,many farmersdo not perceive the need for night irrigation,given the presentabundant water supply. To meet these abruptfluctuations in demand,the main canalswere divided into reachesbetween cross regulatorsand

O A slightlymodified version of warabandiwas tried in Girna with some successin the late 1970s. One of the major obstaclesto the introduction of the North-WestIndia versionof warabandiis that the demand for water fluctuatesduring much of the growing seasonbecause of the higherrain- fall.

J Equal to 100 m31hr. -36- through observation, and trial and error, the reservoir releases are computed and carried out. At present, the main canals are running at less than half capacity, and therefore permit large fluctuations without posing any risk. Regulation problems will become more difficult as the project approaches full development, and the operating criteria will require further refinement.

6.05 She Maialxaon system. As in Jayakwadi, the main and branch canals will be designed to supply the peak irrigation demands by continuous flow. The distributarieswill normally be rotated 7 days on and 7 days off, providing an irrigation supply to each farm once in 14 days during periods of peak demand. If irrigation is requested more frequently (i.e., kharif and/or hot season), a 7-day canal rotation can be used, with the distributariesrotating 3-112 days on and 3-1/2 off, all this without readjusting the gates. In case of long dry kharif spells, the system will be geared to provide water promptly to the farmers, following prescheduledprograms. It has been agreed with ID that chak sizes will be as close to 24 ha as possible, and only in exceptional cases less than 15 ha. This will have two benefits: (a) the number of chak gates to be operated will be reduced; and (b) the operation of a proportional flow system - if found beneficial -- will still be possible in the future. While the current policy of the GOM to use the standard 1 cfs irrigation stream throughout the State is acceptable, two distributaries in the Hajalgaon project should be operated with proportional flow, to evaluate the comparativemerit of the two systems. A computer model will be developed to determine the need for on line storage and subsequently to control the daily operation of the system.

Sanctioning. Water Charges and Administrative Procedures

6.06 The following would be considered to ensure the smooth operation of the system:

(a) the ID would be responsible for supplying the sanctioned amount of water at the prescribed time;

(b) crops would be sanctioned in such a way that the volume of water (which may be expressed as a duration of fixed flow) will, if water is a constraint, be proportional to the farmers' CCA;

(c) CADA and its operation staff would prepare irrigation schedules before the commencementof the season based on the crops sanctioned for irrigation. The irrigation programs would be sent to the officers in the field together with directives to improve efficiency;

(d) instead of crop-specificwater charges in the kharif, a flat fee per hectare of cultivable command area (adjusted for inflation) would be levied whether farmers irrigate in the kharif or not. The supply systems would be preset and water promptly provided during kharif, when public facilities normally are underused because of the rainfall.

(e) for the rabi and hot season, water charges would be based on sanctioned applicationsas at present. Crop sanctions for rabi and hot season would be planned annually on the basis of water available in Paithan and Hajalgaon reservoirs on October 15; -37-

CE) the supervising officers would carry out surprise checks and enter the results in a log maintained for the purpose;

(g) the results of monitoring Irrigation performance (para 5.30 [ci) will be analyzed every quarter and every discrepancy clarified and resolved; and

(h) the operation staff should not be burdened with construction. responsibilities and would devote all their attention to OwM.

To support Cd) above, an agreement has been reached with GOMthat, within the capacity of the irrigation system, it would make supplementary kbarif irrigation available for kharif seasonal crops where, and whenever, half of the farmers concerned request water for irrigation (para 9.02 [q]).

Groundwater

6.07 The groundwater in the project area is held in shallow aquifers immediately above the basalt. Exploitation is by shallow dug wells (typically 6-10 m) using small centrifugal pumps. Most of the inflow is from the weathered zone (murrum) just aso ve the basalt. The yield from these surface veils is estimated at 10,000 a /year. Allowing for recharge from the irrigation supply, it is estimated that the CCA can sustain about 30,000 wells. Each well could irrigate about 1 ha, giving a total potential of about 30,000 ha, or 101 of the CCA. There are already about 1,000 wells in the Majalgaon CCA and over 2,000 in Jayakwadi CCA; further development will be left to the private sector because the limited extraction possible from individualwells makes it difficult to utilize them as a public source and there.are ample cheaper surface sources for irrigating most of the area. However, with the project, the open irrigation system will increase the recharge to the wells that will yield more water more reliably than before. The Maharashtra water law has provisions for raising special charges for wells thus augmented. The conjunctive use of well and canal water will increase the area that can be irrigated "on demAnd", much above the 30,000 ha that could be irrigated only from wells, with a substantially increased income to CCA farmers who have also wells, thereby justifying the additional charge.

TrainingtRequirements (Annex 1, Table 20)

6.08 Staff for about 57 new subdivisionswill require training. Subdivi- sions (SD) at present are organized with either an agricultural or an engineering background. A typical agricultural division would deal with landshaping and drainage and would be headed by a Divisional Soil Conserva- tion Officer (DSCO) with 5 subdivisions. Each SD has 5 Agricultural Super- visors and each of these has 5 Agricultural Assistants. Agricultural supervisors have a degree in agriculture and Agricultural Assistants0, a certifi- cate. Engineering Divisions which design and construct chak systems are headed by an Executive Engineer (nE) with 5 Subdlivisionsunder the Deputy EE. Each SD has 5 Junior Engineers with 2 Technical Assistants. The staff of these divisions and subdivisionsrequire training, either in WALMI or by experienced CADA personnel, the latter either on the job or in formal short courses. Irrigation staff would be trained in water management research and -38- overall system operation, including hydrological and transient flow models. Farmers- training, especially in the Majalgaon area where there is at present no irrigation experience, will also be intensifielIsubstantially under the project, and will include basic knowledge of irrigation principles and agronomy.

6.09 The level of training will be matched to the education level of the trainees. Those with professional or sub-professionalbackground will be trained in WALMI, others will be given in-service training by CADA. Annex 1, Table 19 shows the total training requirements and Annex 1, Table 20 shows how this is to be split between WALMI and CADA. Agreement has been reached with GOMregarding the implementation of this program (para 3.20). In addition, an agreement has been reached with GOM that it would, by December 31, 1985, prepare a detailed timetable and logistic plans for training of project staff in CADA and WALMI (para 9.02[r]).

6.10 Water and Land ManaRement Institute (WALMI). WALMI was established in 1980 under a US$3.81 X provision in Credit 954-IN (MCIP II) to provide in-service training, land and water management to CADA and ID personnel. There are 36 faculty members and the current training capacity is 2 intensive and 8 orientationlspecialcourses per year.

(a) Intensive courses last 10-12 months and include hydraulics, irrigation engineering,water management, soils, irrigated crops, statistics and computer programming. Four months of field work is done as part of the course.

(b) Orientation courses over 8 weeks deal with one of several subjects such as water & land management, land development and includes a 2-3 week field exercise.

Cc) Special courses are conducted for special project needs. One was run for XWUP, others have been organized for special groups of senior officers.

The maximum training capacity is about 60 per year for the intensive course and 240 per year for the orientation and special courses. Plans are being made with USAID assistance to double this capacity from 1985 onwards. Some physical (i.e., building, classes, facilities) and conceptual (i.e., lengths of courses, curriculum) changes are under way to increase the training capacity of WALMI, starting mid-1985. -39-

VII. AGRICULTURAL PRODUCTION. FARN INCOME AND COST RECOVERY

Agricultural Production

7.01 In parts of the project area where at present there is no irrigation infrastructure (new Jayakwadi-68,000 ha, and Majalgaon--100,000ha) cropping intensities are 100% to 105% per year. The principal crops are foodgrains and legumes for subsistence, and short-staple cotton. The upper reaches of the project area (about 132,000 ha) are now partly irrigated and grow food and cashcrops, like long-staple cotton and groundnuts (Annex 1, Table 22). Vithout the project, rainfed farming is not expected to change much but improvements are expected in the irrigated area, where cropping intensities ranging from 137Z to 165Z are likely to be attained as a result of previous projects (Annex 1, Table 23a).

7.02 With the project, intensification and shifts to production of higher-value crops are expected to accelerate. Attainment of the higher cropping intensities is expected to take 7 years in previously irrigated areas and 12 years where surface irrigation is newly introduced. The projected yield levels would be attained in about 20 years. The ultimate expected cropping pattern, and the way it fits into the cropping and farm management calendar is shown in Chart 5. Ultimately, at full development, the cropping intensity is expected to reach 175%, with enough water for large scale hot season crops and/or carryover, and the cropping pattern would include more groundnuts, sunflower, and long-staple cotton (Annex 1, Table 23b). The largest output increments in physical terms are projected for sugarcane, bananas and sorghum. In value terms, cotton, sorghum, groundnut, sunflower and bananas are expected to account for 80X of the incremental value of production.

7.03 Until the project area is fully developed, there will be a large surplus water (known as type C). This water is likely to be used to grow an even larger area of hot-season (seasonal) crops than contemplated in the proposed cropping pattern (Chart 5), including groundnuts and sunflowers, which do not require supporting investment in new processing facilities. The use of this water to increase the production of sugarcane beyond the existing processing capacity is undesirable since its net return per unit of water is amongst the lowest in economic prices (Annex 1, Table 24b). However, this additional temporary hot season production has not been taken into consideration in the benefit streams of the project.

Market Prospects and Prices

7.04 In general, incremental production from the project will be a small percentage of Maharashtra's production, generated over a relatively long period, and therefore can be readily handled by existing marketing channels. Prices of groundnut, sunflower and safflower are likely to be kept steady by India's strong income elas- ticity of demand for edible oils, and by its continuing efforts to replace its large palm-oil imports. Cotton prices will, in the long run, be dictated by international market prices. With respect to varieties, it is expected that production will switch from short-staple desi cotton towards medium-to-long-staplecotton which is more readily marketable and provides a higher return per unit of water.

7.05 Maharashtra produces and eats a large share (43%) of India's sorghum. A lot of the buyers are rural landless families and the urban poor. Intra-year price fluctuations are great. Therefore, it is expected that the project-generatedincre- ment might produce some real farm-gate price declines (to the benefit, incidentally, -40-

of rural and urban poor). The financial farm-gate sorghum price has been set accordingly.

7.06 Marketing of incremental output is expected to build up very slowly. Output will amount to 1.5 X tons in the year 2000 and 2.6 M in 2025, of which roughly two-thirds will probably be marketed. Thus, the marketing system will have to accom- modate roughly one million tons within 15 years and 1.7 M tons within 40 years, with sugarcane comprising 40% of the incremental volume. Sugarcane is harvested and transported to local factories by the growers cooperativeswho own these mills. At present, Government procurement of foodgrains and pulses does not operate in the project area; prevailing prices are above support prices.

Farm Incomes

7.07 As can be seen from the following table, net annual farm income for average-sized farms now varies from a low of Rs 4,300 per family (about $60 per capita) for the lower unirrigated reaches of the project to a high of Rs 11,500 per family (about $154 per capita) for the upper, partly irrigated reaches of the project. These figures include the value of marketed produce, home consumption, and allow for the cost of purchased inputs, the use of family labor and bullocks, all valued at prevailing prices.

FINANCIAL DAT. FOR A 4.5 HA FARM (Rupees)

=a akwadi Maialgaon Other First Segment Second Segment Third Segment First Seament Segments (53,350 ha) (78,650 ha) (68,000 ha) (24,000 ha) (76,000 hI

OUTPUT Present 21,018 19,090 9,330 8,892 8,892 Development by 2025: Without Project 24,671 27,426 12,086 12,040 12,040 With Project 63.091 63.820 60.607 60.127 70,179 Incremental 38,420 36,394 48,521 48,087 58,140

INPUTS Present 9,531 8,667 4,464 4,569 4,569 Development by 2025: Without Project 11,282 11,324 5,457 5,435 5,435 With Project 17.220 16.994 16,407 16.146 17.012 Incremental 5,938 5,670 10,950 10,711 11,576

NET INCOME Present 11,487 10,423 4,866 4,323 4,323 Development by 2025: Without Project 13,390 16,102 6,629 6,604 6,604 With Project 45.871 46.826 44.200 43.980 53.167 Incremental 32,481 30,724 37,571 37,376 46.563 -41-

7.08 Currently,farms at the lower reaches,without canal irrigation,use about 145 days of labor per year plus another88 days with animals,with almostall labor furnishedby the familyitself. These farms use only about two 50 kg bags of fertilizerper year and just over Rs 700 worth of seed. The upper reaches' irrigated farms use 260 to 280 days of free-standing farm labor and another 140 associated with bullock-tillage. They are hiring casual labor at peak periods and some permanent labor all the time. They also use over 8 bags of fertilizer a year, and about Rs 1,900-worth of seed (Annex 1, Table 29).

7.09 Between 1985 and 2004, more and more reliable water would bring better yieldsof higher-valuecrops like cottonand oilseeds,with intensive use of purchasedinputs: fertilizers, seeds, etc. These changeswould require substantial increase in labor. At full development - about 2030 - the average farm would need about 475 mandays plus another 230 with bullocks. Most of the farms would have to hire labor, providing fuller employment for the project area's landless population for most of the year and requiring a larger influx of migrant farm labor at peak periods. The import of bullock labor from other districts, especially for cane transport, would expand.

7.10 If 80Z of the land of the average 4.5 ha farm had to be levelled at a cost of Rs 3,000/ha, farmers would face an expense of Rs 10,800 for landshaping during the first dry season, before starting to benefit from the project. Conventional NABARDand SLA terms (10 year repayment with two years' grace) would impose on farmers a significant decline in standard of living, especially in the third and fourthyears of their participation,coinciding with the terminationof the grace period. Therefore,financing of landshaping, whetherbacked by NABARDrediscounting (interest rate - 10.25%) or by SLA (13.8%) or by some other financialentity, would not allow farmersto repay without reducingtheir pre-projectstandard of living(para 5.20). While upper-reach farmers could repay in ten years with a 4-year grace period, lower-reach farms would need at least a 15-year repayment period and a 7-year grace period (Annex 1, Table 32).

Cost Recovery

7.11 The most important vehicle of cost recovery is taxes on agricultural output marketed (Annex1, Tables 30 and 31): sugarcane,groundnuts, and long-staplecotton. These taxes representthe largestsource of cost recoveryfrom projectfarmers (excluding payments for landshaping).Since farmers are price takers for sugarcane,cotton, and oilseeds,the incidence of these taxes is predominantly, if not totally, on farmers (Annex 1, Table 31). Cesses for education, local government, and the Employment Guarantee Scheme are another vehicle. They vary with season and crop and tend to correlate with the value of production obtained from the irrigation area (Annex 1, Table 30).

7.12 Water charges are the most direct instrument for cost recovery. They are fixed roughly in proportion to the amount of water a crop uses and to the value of water in the season of use. Water charges are reviewed every five years. After the 1975 review, when water charges essentially reached their present level, Maharashtra had the highest rates of any Indian state, a -42- status matched recently by Gujarat which raised its water charges to a somewhat higher level. The 1980 review made minor adjustments, increasing the charges for hot-season crops, to reflect the high cost of delivering water in that season and its scarcity. For the cropping pattern assumed under the project, present water and water-related charges would average about Rs 488 per ha of CCA. 11 The water charges will be reviewed in 1985. The intervals between reviews are too long and should be shortened.

7.13 With Bank Group encouragement, GOMhas undertaken studies of alternative water-charge systems in recent years. Under MCIP I, the feasibility of volumetric charges was studied but its administrationwas found to be difficult and expensive. Under MCIP II, a variety of experimental charges (including no charge) were to be tried to increase the use of irrigation water in the kharif. Analysis of the problem of kharif irrigation in years of inadequate or unevenly distributed kharif rains, shows that the most economic use of stored water is to supplement erratic monsoon rains.

7.14 Actual maintenance, repair and minor improvement costs are around Rs 55/ha (1983 data) but the establishment costs have increased during the last four years, from under Rs 50/ha to about Rs 75/ha, or by over 50%. The present allocation for O&M for all Bank-financed projects in Maharashtra is Rs BO/ha. The level of O&Mallocation need to be reassessed to account for changes in O&M component prices. A study of O&M costs is being conducted by GOM to determine an appropriate allocation.

7.15 GOM water-charge collection has been improving and has reached about 8OZ state-wide for all types of projects; however, for major surface projects in the "commissioning" period, collections are characteristicallymuch lower-25 to 40Z, but improve substantially after a maturation period of several years. In estimating the cost and rent recovery levels under the project, it has been assumed that: (a) the level of market taxes, and water-related cesses will remain unchanged; (b) water charges will increase in real terms at about the same rate as the projected increases in productivity; and (c) assessments are collected. Based on these assumptions, cost and rent recovery indices are estimated at 702 and 24%, respectively (Annex 1, Table 33).

7.16 Agreements have been reached with GOM ttat it would: (a) maintain on a continuous basis, its water charges at such levels as shall be required to ensure that revenues from water charges shall cover the average costs of operation and maintenance, and a reasonable portion of the investment costs, taking into account the repayment capacity of farmers; (b) review every two years and, if required, revise Maharashtra's levels of irrigation water charges; (c) conclude its study of O&M costs, not later than December 31, 1986, submit this study to the Bank for comments and based on the study recommendations and Association comments; and (d) determine the appropriate annual amount for operation and maintenance costs for irrigation projects (para 9.02 Es)).

j/ Rs 115 from water charges, Rs 61 from cesses, and Rs 312 from market taxes. -43-

VIII. BEUEITS AINDJUSTIFICAT~ION

Project Iiui,act

8.01 In assessing project impact, it is importaut to be specific about what vould happen vith the project that would not have happened without it. Of the 300,000 ha project area, 132,000 ha (of which 90,000 ha with some OFD,, * ~and 42,000 ha alnostwithout it) already have irrigation facilities. ThLe chanes in agricultural performance are expected to result from:

(a) the improvements in irrigation facilities, drainage, roads, landshaping and management to agreed standards on the 132,000 ha already coimmanded;

(b) the integration of 92,000 ha of new cultivable command area--68,000 ha in Jayakwadi and 24,000 ha in Majalgaon-to be completed to the agreed standards during the disbursement period; and

Cc) the integration of the final 76,000 ha of Majalgaou, to be completed to the agreed standards after 1990.

8.02 Incremental production is presented in Table 26. By 2000, annual incremental production is expected to reach Rs 1,700 M (US$145 M) or Rs 1,400 M (US$16 M) net of incVremental on-farm costs. By 2025, these figures will increase to Rs 3,200 II (US$268 N) gross and Rs 2,600 N (US$220 -) net of on-farm costs.

8.03 The agricultural changes engendered by the project will expand the demand for farm labor by an estimated 10 N labor-days aud 4 N bullock-pair days in 2000 and by 17 M laborer days and 6.5 H bullock-pair days in 2025. This amounts to about 58,000 full-time jobs by 2000 and 95,000 by 2025. A lot of this labor would be provided by the now 66,000 land-owning families of the project area during times whan they are not fully employed. More than half of the additional employment would go to the 35,000 families of landless people in the project or to migrant laborers from poor districts like Bhid.

8.04 Poverty impact. The absolute poverty income level for rural India is estimated at Rs 1370 per capita and year. The landless population in the pro(ect area is estimated to be 227,000, in 38,000 families, of which 83 percent are considered to earn their living as faxm workers. It may be assumed that the per capita income of these families does not exceed the poverty level. On the average, the incomes of the about 66,400 farm families in the project area are above the poverty level. However, with farm income being a function of fam size, farm families below the threshold size are likely to have incomes below the poverty level unless irrigation facilities are provided and production intensified. -44-

PRESENTPOVERTY SITUATION OF FARE-OPERATINGFAMlIES IN PROJECT AREA

Averaae PovertY Farm Percentate of Family Income Income /A Threshold Farm Families Be- Families Size Per Family Per Family Farm Size low Poverty Income Subarea No. No. Rs Rs Ba

Jayakwadi Segment 1 11,600 6.4 8,768 12,600 3.1 44 JayakwadiSegment 2 16,800 6.4 8,768 10,840 3.6 49 JayakwadiSegment 3 14,600 6.4 8,768 6,620 6.2 68 Eajalgaon 23,400 5.7 71809 5,200 6.5 46

TOTAL Project Area 66,400 6.2 8,494 9,320 4.1 54

/a Includingvalue of family labor.

The thresholdfarm sizes in the table are for the differentsubareas, taking into account the present farm size distribution. It is estimated that around 54 percent of the farm families live at or below the poverty line.

8.05 With the project, farm family incomes are expected to increase to an average of Rs 10,608 per hectare, thus moving the poverty thresholdfarnsize to 0.8 ha. Under ceteris paribus conditions, it might be assumed that by full development about 10% of the farm families would be below the poverty level.

8.06 As a result of project-induced agricultural intensification, farmers' higher incomesand higher degree of integration into the market, the project area would also see additional commercial and secondary economic activities.

Economic Analysis

8.07 The benefits streams are based on detailed farm models available in the project files. The costs cover all the items included in detailed project cost tables (Annex 1 Tables 4 to 9). Minor componentsrelating to the SDDs, monitoring units and training studieshave been excluded from the economic calculationsbecause their benefits could not be adequatelyquan- tified. In addition to the costs included in the detailed cost table, the cost streams include: (a) the cost of completing the development of the last 76,000 ha of Majalgaoncommand area betweenkm 30 to km 165 of MRBC, to be completedby 1994 (Annex 1, Table 8), and (b) the recurrentcosts of incrementalextension serviceand of incrementaloperation and maintenanceof the entire system. Transfer payments,such as water-charges and other taxes and duties,were eliminatedfrom the economic account. Engineeringand administration costs at 12Z of net investment,and physical contingenciesat 15% are included in the investment costs. Benefits associated with sunk costs and/or non-projectinvestments and activities(MWUP, extension,etc.) -45- were included in "future without project" benefits which were subtracted from estimated "future with project" benefits.

8.06 The comparison between prevailing (financial) and economic prices may be seen in Annex 1, Table 28. The economic price of traded outputs (groundnuts, cotton, sugai, wheat and rice) and inputs (fertilizers) were derived from Bank Group projections of world market prices and by estimates of transport, handling and processiLg costs reflecting projections as to whether India is likely to be an exporter or importer of these goods. With respect to grains, it was assumed that, in the medium run, India will be on the average close to self-sufficiency, exporting in good agricultural years and importing in bad years. On the theory that what happens to major grains (rice and wheat) and to major oilseeds (groundnuts) determines the relative prices of other grains and legumes (sorghun, millet, green and black gram, chickpeas) and of other oilseeds (sunflower and safflower), the prevailing prices of these commodities were adjusted by the sane factor as the major grains and groundnuts. Other outputs (bananas, vegetables, other) were adjusted by the standard conversion factor (0.8).

8.07 Other project cost adjustmentswere as follows:

(a) unskilled labor at two-thirds of the financial price to account for the substantial un- and under-employment in India at that level;

(b) equipment by the standard conversion factor (0.8), and civil works by a variety of factors ranging from 0.7 to 0.8 and depending basically on the amount of unskilled labor embodied in the activity (Annex 1, Table 28); and

(c) farm inputs other than fertilizer and labor, by using the standard conversion factor 0.8 (chemicals, hybrid cottonseed, etc.). The exceptions to this rule are bullock labor, where the adjustment factor of 0.96 translates a real scarcity, and certain kinds of seed, where adjustment was less than the SCF for the same reason.

8.08 On that basis, the economic rate of return of each segment and of the project as a whole is presented in the following table: -46-

The-Economic Rates of Return for Different Sub-areas of the Proiect

(a) Jayakwadi - First Segment (NWUP, Pilot, Farmers)(53,350 ha) 46Z (b) Jayakwadi - Second Segment (MCIP I and GGK Portion)(78,650 ha) 29Z (c) Jayakwadi - Third Segment (New Area)(68,000 ha) 18X (d) Majalgaon /1 - First Segment (km 0 - 30)(24,000 ha) 13Z

(e) Total Proiect (Annex 1. Table-35) /I 20%

In the event that investmentswere suspended after the current time-slice was completed in 1990 and the final phase of Majalgaon was never completed, the rate of return on investments in this project would not be substantially different-22Z.

Sensitivity Analysis and-Risks

8.09 As a result of 20 years of experience in developing the Jayak- wadi-Kajalgaon irrigation system (the last seven of these with Bank Group involvement), a great deal is already known about the risks and uncertainties of developing irrigated agriculture in the project area. Based on past experience, there are four dangers: (a) that farmers will be slower than expected in using irrigation facilities; (b) that completion of irrigation facilities will take longer than anticipated; (c) that yields levels attained will be lower than expected; and (d) that civil works will be more costly than anticipated. To minimize the risks that farmer response might not be adequate, or that yield levels might be lower than anticipated, the project provides for landshapingand for system operation methods which will ensure that all farmers, including tail-enders,will obtain reliable water supply. In addition, the project focuses on increasing agricultural productivity, especially through the SDDs', technical support to farmers, research and development, and monitoring and evaluation. The combined effects of these activities should result in a high return per unit of water and high level of farmers' participation.

8.10 Tests were made to ascertain the sensitivity of the project's economic rate of return to these risks. Regarding (a), if farmers took fully 20 to 30 years to adjust to irrigation instead of the 7 to 12 years projected, the project's overall economic rate of return would fall to 12%. Regarding (b), if it were to take five years longer to complete each project segment, the overall ERR would fall to 13Z. If (c) full-developmentyields were 15% less, the overall rate of return would only fall to 17%; and (d), if anticipated investmentcosts increased by 20%, the overall ERR would only

11 The other segments of Majalgaon--not included in this time-slice--have ERRs of 12Z. The ERR of the total project takes them into account. If the almost completed Majalgaon dam and the ongoing works on the first part of the main canal that were taken as a sunk cost are included, the ERR will decrease to 17%. -47- fall to 18Z. The "switching values' that would cause the overall ERR to fall below 12% are: (a) farmers' adjustment to irrigation taking 22 years in the upper reaches and 32 in the lower; (b) delays in completion of 7 years; (c) full-developmentyields 45Z lower than projected; or (d) an investment-cost overrun of 87Z. In short, on economic grounds alone and without considering any employment or induced benefits, if the project is an economically viable investment even if afflicted by one of the major risks. The probability that two or more of these events might occur in combination to that extreme level is not significant.

Environmental Impact

8.11 Waterborne Diseases. The project would take an environment which is a difficult one for human habitation, as evidenced by the extreme poverty of residents in the project area completely without irrigation, and make a modest but dignified standard of living possible. Resources of water, soil and solar energy that are presently wasted, either totally or in part, would be converted into food and fiber. All this would be done without adverse effect on human health. The two main health scourges often associated with irrigation projects are under control in the project area. Nalaria incidents were reduced during MCIP I, which included support for GOffHealth Department spraying in the project area. Control is a regular and on-going state-wide activity of the Health Department, which declined the opportunity to request additional assistance under the project. Schistosomiasis which is rare in India, is confined to the small "Gimvi focus" in Ratnagiri District of Maharashtra, far from the project area, and on the western slopes of the Ghats: no water reaching the Ginvi area can possibly enter any of the eastern rivers or their tributaries, which water this and other major- surface-irrigationprojects in the State. Besides, the Health Department is vigilant for its possible spread. Therefore, no additional interventions through the project are appropriate. However, an agreement has been reached with GOM that it would undertake to take all such measures as shall be considered necessary to minimize the risk of malaria and other water related diseases within the project area (para 9.02 [tl).

8.12 Resettlement and Rehabi-litation. The Majalgaon reservoir site, when flooded during the monsoon of 1985, wili affect a total of about 10,500 people in 9 villages. The inhabitarts have al-:eadybeen resettled and rehabilitated according to the provisions of GO's project Affected Persons Act of 1976. Six of the villages chose to aggregate into three groupings near Majalgaon town, which is a thriving, rapidly growing taluq (sub- dis- trict) centre, with many business and employment opportunities. Three villages, that will not be affected by the reservoir were duly compensated for land to be submerged (Annex 5).

11 And without taking into consideration benefits from the temporary use of the excess water, and without including the off-command users. -48-

IX. AGREEMENTSREACHD AND RECOMMENDATIONS

9.01 Agreements have been reached with Gol that it would:

(a) issue all the authorization and permits required to enable GON to improve in Jayakwadi and establish in Majalgaon, a radio conmunica- tion network (para 3.19);

(b) make proceedsof the creditavailable to GOM in accordance with GOI's standard terms and arrangements for development assistance to the Statesof India (para4.03).

9.02 Agreements have been reached with GOM that:

(a) it would plan, design, construct, operate and maintain the irrigation, drainage and road networks, and the on-farm development of the project, including the lining of all main distributaries and minors down to the 1 cfs outlets,and plan, designand help implementing landshapingin accordancewith standardsand criteriasatisfactory to the Bank Group (para 3.15);

(b) for purposes of implementing the Specially Developed Distributary under the Project: (i) by August 31, 1985, establishand thereafter maintaina SteeringCommittee for promotionof agriculturaldevelop- ment, such comittee to be headed by the Secretary of the Irrigation Department and to meet, at least, every six months; and (ii) by December31, 1985, furnish to the Associationa detailedplan for carryingout each of the Specially Developed Distributary under the Project (para 3.18);

'c) it would, not later than December 31, 1985, prepare and furnish to the Associationfor its reviewand comments,a detailedwork plan coveringthe activitiesto be undertaken: {i) strengtheningbasic training facilities in WALMI and CADA for technical and operational staff as well as for farmers; (ii) study tours of key personnelof CADA and AD to suitableareas with problemssimilar to those encounteredon the black cotton soils of Maharashtraand where farmer organizationsfor water distributionbelow the outletare very effective; (iii) conductingwater managementresearch and overallsystem operationstudies, to improvewater use efficiencyin the project area, in accordancewith studiesinitiated under NWUP; and preparing hydrological and transient flow models for the entire Jayak- wadi/Kajalgaonproject area; (iv) establishinga soils laboratory which would investigatefertility, irrigation and soil mechanics problemsrelevant to the project;and (v) investigating and refining appropriate farming technologies, and thereafter implement such work plan (para 3.20);

(d) it would (i) by December 31, 1985 prepare special technical services workingplans, acceptable to the Bank Group,for implementationin tne projectand in the SDDs; (ii) by January31, 1986 assign to CADA -49-

and its agencies and departments concerned a full-time special technical team. with suitable qualifications and experiences to carry out the specialtechnical services (para 3.23);

(e) it would employconsultants whose qualifications, experience and terms and conditions of employment are satisfactory to the Associa- tion. Such consultantswould be selectedin accordance with prin- ciplesand proceduressatisfactory to IDA (para 3.24);

(f) it would, in accordance with sound engineering practicescause the Dan SafetyDirectorate to inspect: (i) on JanuaryI of each year, commencingon January1, 1986, the MajalgaonDam and its related structures,and (ii) each five years,on January1, commencingon January1, 1986, the PaithanDam and its relatedstructures to determine whetherthere are any deficienciesin the conditionsof such structure,or in the quality and adequacyof maintenanceor methods of operationof the same, which may endangertheir safety(para 3.28);

(g) it would promptlyprovide resources and funds to executethe project in accordancewith the project implementationand expenditureprogram (para 4.03); (h) it would (i) maintainseparate records and accountsto reflect,in accordancewith sound accountingprinciples and procedures,its resources,expenditures and operationsrelated to the project; (ii) furnishto the Associationcopies of accountsand financial statementsfor each year, certifiedas to their accuracyand authen- ticityby an independentauditor acceptable to the Association,not later than nine months after the end of each fiscalyear; (iii) have accountsand financialstatements for each fiscal year auditedby independentauditors acceptable to the Bank Group; (iv) furnishto the Bank Group immediatelyfollowing its finalization,the report of such audit in such detailas the Bank Group shall reasonablyrequest; (v) furnishto the Bank Group any other informationas it shall reasonablyrequest (para 4.10);

(i) it would by December31, 1985 upgradethe post of CADA Administrator in chargeof the Jayakwadi/Majalgaonscheme to the rank of Chief Engineerand establishfour sub-commandsin the projectarea (para 5.08);

(j) it would take all action,as shall be necessary,to ensureadequate qualitycontrol of surveys,planning, design, construction and 0&M activities(para 5.10);

(k) it would operateand maintain adequatelythe distributaries,minors, drainagechannels, link drains,service and feeder roads and all buildingsunder the project and provide sufficient funds to carry out such operationand maintentace(para 5.13); -50-

(1) it would (a) take all such action as shall be necessary, including provision of funds, to enable MLDC to provide loans to farmers for purposes of carrying out, through CADA, the landshaping of their fields; and (b) make adequate arrangements for the recovery of the funds so onlent (para 5.20);

(m) it would carry out a socia-economic study, to be completed not later than by December 31, 1986, to assess the capacity of farmers to repay landshaping loans and use its recommendationsto revise the lending terms for landshaping loans, including those made prior to the said review (para 5.21);

(n) it would establish farmers' organizations in the project command areas in accordance with a plan satisfactory to GOM and the Bank Group (para 5.22);

(o) establish and, thereafter, maintain within its Agriculture Depart- ment two new agricultural districts in the project area, each headed by a qualified and experienced officer, such districts to be assigned, at all times, with such powers, funds, staffing, resources and responsibilities as shall be required to enable them adequately to undertake their respective responsibilities regarding agricultural research and extension in the Project Area; the first of such districts shall be established not later than Decemr- ber 31, 1985 and the second, not later than September 30, 1988 (para 5.27);

(p) it would (i) prepare a plan for monitoring and evaluation activities, for construction activities, expenditures, irrigation performance, groundwater, crops, climate, water charges, and staff posting and training by December 31, 1985; (ii) strengthen the existing Monitoring and Evaluation Unit and provide it with adequate funds and staffing to carry out the monitoring activities under the project; (iii) commencing June 30, 1986, furnish the Association within three months after the end of each reporting period semi-annual reports, which would compare plan and actual implementationin physical and financial terms; describe deviations from plans and explain the reasons; provide a revised implementationschedule, with analyses and conclusions of the monitoring and evaluation activities; and (iv) submit to the Association a project completion report not later than six months after the closing date of the credit (para 5.31);

(q) it would, within the capacity of the irrigation system, make supplementarykharif irrigation available for kharif seasonal crops where, and whenever, half of the farmers concerned request water for irrigation (para 6.06);

(r) it would, oy December 31, 1985 prepare a detailed timetable and logistic, plans for training of project staff in CADAand WALMI (para 6.09); -51-

charges shall cover the average costs of operation and maintenance, and a reasonableportion of the investmentcosts, taking into account the repaymentcapacity of farmers; tii) every two years, commencing on a date not later than two years after the date of this Agreement, review and, if required,reviBe Maharashtra'slevels of irrigation water charges;(iii) concludeits study of 06& costs, not later than December31, 1986, submit this study to the Bank for commentsand based on the study recommendationsand Associationcomments (iv) determinethe appropriateannual amountfor operationand main- tenancecosts for irrigationprojects (para 7.16); (t) it would undertaketo take all such measuresas shall be considered necessarxto minimizethe risk of malaria and other water related diseaseswithin the projectarea (para 8.11).

9.03 With the above agreements,the proposedproject would be suitablefor a credit of US$160.0M on standardIDA terms. The Borrowerwould be the Governmentof India. -52- Annex 1 Table 1

INDIA

MAHARASHTRACOMPOSITE- IRRMGATION III PROJECT

Climatic Data

Jan Feb Mar Avr MI Jun Jul Aus Sept Oct Nov Dec Total

Rainfall (Z) 1 1 1 1 2 19 21 19 24 7 3 1 100 rainy days (Z) 1 2 2 2 3 17 24 18 20 7 3 1 100

N.B. Actual average annual precipitation is as follows:

Paithan Dam : 650 -m Aurangabad: 730 mm Parbhani : 900 mm Nanded 1100 mm

Evaporation (MM) 132 161 217 262 283 199 142 131 133 148 131 118 2057

Temperature Co (average) 21.5 24.3 28.0 31.5 32.- 29.4 26.6 50.9 26.1 25.7 23.1 21.3 = -53- Annex 1 Table 2

INDIA

MAHARASHTRA COffPOSITEIRRIGATION III PROJECT

Land Holdinfts

Jayakwadi Majalgaon Average (200.000 ha) (100.000 ha) (300.000 ha) Holding Holding Holding Area Nos. Area Nos. Area Nos. …------in size group-

<1 ha 2 12 2 16 2 13 1- 2 ha 6 19 6 19 6 19 2- 5 ha 30 30 27 35 29 32 5-10 ha 25 28 35 21 28 26 10 ha < 37 11 30 - 9 35 10

Avera2e 4.7 ha 4.3 ha 4.5 ha --

Population ('000)

Total in Population No. of Proiect Area per km 2/ Farm Families

Jayakwadi 275.0 } { 43.0 Majalgaon 134.0 } 135 { 23.4 r i Total 409 } { 66.4 INDIA

MAHARASHTRACOMPOSITE IRRIGATION III PROJECT

JAYAKWADIAND HAJALGAONCOMMANDS

Components.Segments and the Mi-smin Works in Each

Miassai work. to be comoleted under the Rroiect Command Segment CQmPonent COmpQnentiSexment ID and PWD SA (ha)

(a) MWUP 42,350 Lining distributariesand Within HWUP: field minors from 50 - 1 cf£, main channel., field drains JAYAKWADI (b) Project 4,000 drainage, and roads 6 landshaping

(1) JAY I (c) Farmers Proiect 7.000 53.350 Main and link drainage & roada Field drains & landahaping

(d) MCIP 1 45,000 Main and link drainage & roads Field drains 6 landahaping

(2) JAY II (e) GOM Portion 33.650 78.650 Hain and link drainage & roads Main and link drainage

(3) JAY III (f) New Area 68.000 68.000 Constructionand lining distri- Field channels and butaries and minors from 50 -l cfs structures,field channel with structures and outlets; main protection,field drainage and link drainage and roads. and landabaping

Total Jayakwadi Command 200,000 a

MAJALUAON (a) Dam Completion of dyke, spillway, outlet and hydropower plant.

(4) MAJ I (b) km 0 - 30 24.000 24.000 Main canal, excavationand lining; Field channels and distributariesand minors, structures,field channel excavation and lining, structures protection,field drainage and outlets; main and linkage and landshaping drainage, roads

(5) MAJ II (c) km 31 -67 25.000 25.000 Main canal, excavation and lining distributariesand minors excavation (next timeslice) and lining; structures and outlets

(d) km 68 -100 8,000 Main canal excavation and lining part of distributariesand minors; excava- (next timeslice) P tion and lining; structures and lining

(6) KAJ III (e) km 101 - 165 43.000 51.000 (next timealice) (next timeslice)

Total Majalgaon Comand 100,000 -55-

Annex 1 Table 3b

INDIA

MABARASUTBACOMPOSITE IRRIGATION III PROJECT

MAIN PROJECT COMPONENTS

Items. Units. Quantities and Implementation Schedule

Item-of Work Unit 1985/86 1986/87 1987/88 1988/89 1989/90 Total

Lining Distri- butaries/Ninors ha 25,600 25,600 25,600 19,800 10,500 107,100

Main Drains km 400 410 430 470 410 2,120

Link Drains ha 36,800 41,400 42,400 45,600 38,000 204,200

Roads km 137 137 138 138 107 657

OFD Works ha 16,000 19,000 19,000 19,000 19,000 92,000

PC Lining ha 24,000 25,000 25,000 26,000 26,000 126,000

Land Shaping ha 27,900 28,900 30,900 31,900 32,100 151,700 (Jayakwadi and the first segment of Majalgaon) IIAARASHTRACOMIPOSITE IRRIOATION IIIPAOJEC( JAYAKUADIflUP42350 ha COWLETIGH DetailedCost Table (RSNil ion) Ouant1t~~~~~~~~ Due~osCosts TtoalsIncluding Contingencies Unit 95/8696/97 97/99 99/99 99/90 Total Unit Cost 85/86 86/97 97/99 08/09 99/90 Total 9519696/97 07/89 89/89 89/90 Total

1I.WSTNENT COSTS

A. CIVILlNks

LININGCMlPETION DIST/NIN'ORS /a 1000 ha 2.6 2.6 2.6 2.6 - 10,4 4,24 11,24111.241 11,241 11.241 -44.964 13o47714,622 15.965 17.214 - 61.178 HIAINDRAINAGE CWIPETION lb 1000ha 5 5 5 6,2 - 21.2 1.4177,095 7.095 7.095 WU78 - 30.0419,494 9,216 10.000 13o453 - 41,163 LINKDRAINS /c 1000ha 5 5 5 1.2 - 21.2 0,2 1.2481.249 12498 1,549 - 5i2931,497 1.624 1,762 2.371 7.253 ROADS km 21 21 21 22 - 95 0.2996,276 6,276 6.276 6,575 - 25,4037.524 0.164 9,958 10,069 - 34,614

, . .~~~~~~~~~~...... , .. *.. .Z., ...... **...*.... Sub-TotalCIVIL WORKS 25,95125,951 25,951 29.150 105,70230.992 33,626 36.494 43,106 -144,209 So CAMA TotaINYE6THEN COSTS 893295209 3o2 -199 426345421 70 -1926 LANDSWAING /a~TOel ~ InCdi.COIRETEDic ~ ~ 1000~ ha ~ ~ wtt E8mMTE202t ------Sub-TotalCAM ...... C. ENGINEERINGI AWIINISTRATIONVI

ENGINEERINGNIDADNIN FOR CES - - - - 3,1021115.043.102 3.102 3,3798 - 12,6843.234 ,TR50A 3.907 4.498 ENGINEERINGANDADNIN FOR CAMA 4 h COffFl.E110N

Sub-TotalENGINEERING I ADMINISTRATION 3,1023,102 39102 3,379 12.604 3,2343,509 3,807 4.498 - 15,049

/b ESTIMATED501TO K COMPLETED /c MINfDRAINAGE NIBLINKS TO, S CONSTRUCTEDBYID CONTIGOUSLY

March5.19I5 14137 i †s, ''.~ ,, ' ' ' . " . .*' .^" l

INDIA NANARASHTRACOHROSITE IRRIGATION III PROJECT JAYAWADIlCIP2 4000 ha PILOTPROJECI COlWLETION DetailedCost Table (RSMillion)

uantlilv BaseCosts Totals Includini Continiencius , ...... ~...... Unit 8518666/987 7/89 88/899190 Total Unit Cost 65/96 86/97 87/90 88/81 99/90 Total 95/06 06/07 87/98 08/99 89/90 Tohl 333u333 33133 Sa333 3333a 33333 33333 33333 333333333 3a3333 333333 3s33ss 3oa3l3s1 as333 313a33 333333 3a3ss3 3333 g33333 33g333 awis

1. IWN9T1ENTCOSTS At CIVIL W.ic5 ...... MAINDRAINAGE 1000ha I I I I - 4 1.417 1.417 1,417 1.417 1.423 - 5M674 1.699 1.B432?000 2.179 - 7.721 LIIWDRAINAGE a 1000ha I I I I - 4 0.256 0.256 0.256 0.256 0.257 - 1%02604307 0.333 0.362 0.394 - 1.396 ROADS km 2 2 2 2 - B 0.299 0,598 0,598 0.598 0.599 - 2,391 0.717 0.778 0.8440.915 - 3.253

Sub-TotalCIVIL MgAJIS 2;2712,271 2;271 2.279 .90902.;23 2.954 3;205 3,498 12.369 I. CADA

LANDSWHNO 1000ha 0.5 0,5 0.5 0,5 0,5 2.7 1.942 0.995 0,9950,995 0,995 0.995 4,974 193 1,294 1404 1,523 1.653 7.0u?

Sub-TotalCADA 0.9S50.9S5 0.995 0.995 0.995 4.974 1,1931,294 1.404 1,523 W.653 7,067 C. ENGIIEfRINGAND ADKINISTRATION .. _...... ENGINEERINGANDADMIN FOR C(S ------0.2730,273 0.273 0.273 - 1.091 0.201 0,308 0.3340.364 - 1,291 ENGINIERINGANDADfIIN FOR CADA - 0.11 9 0,119 0.119 0.1190,597 0Q124W135 Ot1470,15S 0.172 0.737

Sub-TotalENGINEERING ANDADMIINISTRATION 0,392 0.392 0.392 0.393 0.1191,689 0,409 0.443 t'41 0,523 0.172 2,028

Total INWESTMENTCOSTS 3J658 3,658 3.658 3.665 1.11415.752 4324 4,691 5.190 5.534 1.25 21.464

*aatss Isezv l *ggatz -. Ez..l eStowggle $ ws*ln TS W:alls gXXtEt Ragtag Caselw ozgos Total 3158s3.650 3.659 3.665 1,11415752 4,324 4.691 5.O905.534 1,825 21.464 LS22X2 SZ248 283284 RS gU WXffRU $ :::R *2.229ZZWBSW 1291 88W:r2- 81:S Xssgva zsxgg

.. _...... ze - /a MAINDRAINAGE ANDLINKIS IO BECONSTRUCTED BY ID CONTIGUOUSLY ...... Mlarch51 198 141117 INDIA MHAHRASNTRACOMPOSITE IRRIGATIVH III PROJECT JAYAKNADIMCIP2 7000 ha FARMERSPROJECT COMPLETION DetatledCost Table IRSmillion)

Ouantity past Costs Totals IncludingContingenIeis ...... Unit 95/86 86/9787/88 80/89 89/90 Total Unit Cost 95/86 96/87 97/8898/89 99/90Total 95/D6 86/87 87/88 88/89 89/90 Total :s::::: 2-12, ,",g *:sto womansxoos gnome soa:Sams sanalss stapas awgao wsons"s sxmxas wassus mounw was"sn *sgea soon$ glosaswse"WO

I. INWSTMENTCOSTS

At CIVIL MORKS

LININGCORPLETION DIST MINORS 1000ha 0,9 0'9 0.9 0,9 007 4,3 3,783 3,405 3,405 3,405 3.405 2,649 16.267 4,082 4.429 4,905 5.214 4,400 22,930 mAINIRAINAGE 1000 ha 2 2 2 2 1.5 9,5 1.417 2,934 2,9342.834 2,834 2126 13,462 3.398 3.86 4.900 44340 3,53218.955 LINKDRAINMGE /a 1000ha 2 2 2 2 1.5 9,5 0.2U 0.512 0.512 0,512 0.512 0,384 2.414 0,614 0,666 0,723 0.785 0.638 3.427 ROADS km 3 3 3 3 2 14 0,299 0,9970.997 0.997 0,897 0.598 4.184 1.075 1,166 1.265 1.373 0993 5,873

Sub-Total CIVILWORKS 7,649 7649 7649 7,648 5.756 36,347 9,1699,948 100794 110711 9.563 51,184 B CADA

LANDSWPING 1000ha 0,9 0,9 0.9 0.9 1.1 4.7 1,942 1,659 1,658 159 1,6581.971 89603 1.998 2,157 2.340 2,539 3.275 12,298

Sub-total CAM 1,6581,658 1,658 1;,58 1;;718,603 1;9882;;57 2,340 2.539 3;275 12.2;9 6 C. ENGINEERINOI ADMINISTRATION C ...... ENGINERINGANDADHIN FOR CNKS ------0 .918,918 0,919 0,91804691 4.362 0,957 1.038 1.126 1.222 0,999 5,341 ENGIKNRINGANDADMIN FOR CADA - - - - - O.I99O.199 0.9 0.1990.237 1.032 0.207 0.225 0244 0,2650,342 1.283

Sub-TotalENGINEERING I ADMINISTRATION 1,117 1.117 1.117 1.117 0,927 5,394 151641,263 1,370 1.487 1,3406,624

Total IN1ESTHEHTCOSTS 10,422 10,422 10.422 10.422 9.65450.343 12,320 13,368 14.504 15,737 14,177 70,106 :3333 333333 :::::::::: :::::.:… ::::::::::: * S:SS: :::::t 2:S:33:33X:s Total 10.422 10,422 10,422 IO.2 9,654 50.343 12,320 13,368 14,504 15.737 14417770,106 S.-Cars scasar B.-Sess 8118gs sssirxs *X8ses calist *g|tts Bl8t *gv *wBzsll *xtoon

__._...___._...... ______.____.-_.__..___.._.__....._._.... /a MIN DRAINAGEANDLINKS TO BE CONSTRUCTED DYID CONTIGUOUSLY

Mlarch5 19S5 14138 INDIA MAHARASHTRACOMPOSITE IRRIGATION IIIPROJECT JAYAHWAPIHCIPI 45000 ha COMPLETION DetailedCost Table (RShillion)

Ouintitv BaseCosts Totals IncludninContinsenoles

Unit 85/8686/97 97198 9/819 89/90 lotal UnitCost 05/8686/17 87/88 88/89 89/90 Total 05/8686/87 e7/88 08/09 69/90 Total 222XV92weago xxxa: amaansum roan$ Exuma coessgato awzzs 9828a 829s angaz gsamma oxascxwsrs s X wassas sazzanxeasels atessi 1247.7

to IMES9TENTCOSTS I ...... A. CIVIL MS ...... MAINDRAINACE 1000ha 6,2 6.2 6.2 6,2 6,2 31 1.417 9.7868.786 8,786 8.786 e796 43,926 10.53311,428 12.399 13.453 14.597 62.411 ROADS km 16 16 16 16 26 90 0,299 4.7824,782 4.782 4.782 7,770 26,897 5.733 6,220 6.7497.322 12.910 30,934

Sub-TotalCIVIL IOMKS 13.56713.567 13,567 13.567 16.556 70,825 16.26617,648 19.148 20#776 27,507 101.345 D CADA

LINIIDRAINS /a 1000ha 3,1 6.7 6,7 6.7 6.8 30 0,25 0,776 1,677 1,677 1.677 1.702 7.510 0.930 2.182 2.J67 2.568 2.92810,875 LANDSHAPIN6 1000he 6 6 6 6 6 30 1.84211.053 11,053 11.053 11.053 11.053 55,265 13.25114,377 15.600 16,926 18.364 78.518 ...... "...... e...... Sub-TotalCADA 11.82912,730 12,730 12.730 12,755 62,774 14s.1816.559 17.967 19.494 21,192 89.393 C. EIOIIEERINOAND ADMINISTRATION ...... ENGINEERINGANDADMIN FOR CIVIL WKS ------1,628162 1,6281 1628 1.997 8.499 1,6971.842 1.998 2.168 2.870 10,575 ENGINEERIN6ANDADHIN FOR CADA VKS ------1,4191,528 1,5281,528 1.531 7.533 1.4801,728 I.75 2.0342,211 9,328 ...... Sub-TotalENOINEERING ANDADMINISTRATION 3.048 3,156 3,156 3,156 3.51716.032 3,177 3,569 3,873 4o2025,082 19.903

Total INISTPEYTCOSTS 28,44429.453 29,453 29,453 32,828 149,632 Z33624 37,777 40,988 44,472 53,791 210.641 333531 333333 333333 3.3351 :..331 3x33333 33333...... 3 .:1:33 4:...... :1. :: total 28.44429,45329,453 29.453 32.028 149.632 33,624 37,777 40,988 44,472 53.781 210,641 assilJ*wGS g*Sgs SXXta atalXS stogstt f:sBXB *ag:S: *pgasXZX$820 Rosall* *"suawS

_._.___...... _...... _____.__.__.__.__._...... _____...... _...... *___...... __ /a MAINDRAINAGE ANDFIELD DRAIHItPARTLY CtMPLETE, CADA IS BESTPOSITIONED TOCONSTRUCT LINKS

... ,...... "...... March5 1985 14137

OIIa INDIA MAHARASHIRACHPOSITE IRRIGATION III PROJCT JAYAKIADI33650 hi GONPORTION COMPLETION LIC 65170 RIC 26/74 DetailedCost Table IRSMillion)

Duantitv Dale Costs Totals Including Contingencies ...... Unit 85/8686/87 87/99 98/99 89/90 Total Unit Cost 85/96 86/97 87/88 98/99 69/90 Total 05/96 86/97 87/88 88/69 89/90 Total

Is INYESTRENTCOSTS ...... A. CIVILVORKS

MAINDRAINAGE 1000ha 4.4 4.4 4.4 4,4 4,4 22 1,417 6,235 6,235 6.235 6,2356W235 31s175 7.475 8,110 9.9009,549 10.359 44,292 LINKDRAINAGE /a 1000ha 4.5 4.5 4,5 4,5 4,5 22.4 0.256 1,149 1,119 1.1491.149 1.149 5.747 1,378 1,495 1.622 1,760 1,910 8,165 ROADS km 17 17 17 17 - 68 0,299 5,091 5.091 5.081 5.091 - 20,322 6.091 6,609 7.171 7,790 - 27,650

Sub-Total CIVILWRKS 12,46512,465 12.465 12,465 7.384 57,244 14,94416,214 17.592 19,088 12.269 80.107 9. CADA

FIELDCHANNEL PROTECTION 1000ha 6.7 6.7 6.7 6.7 6,7 33,7 1.17 7.976 7.976 7,976 7.976 7.976 39.381 9.44310.245 11.116 12.061 13.086 55.951 LANDSHAPING 1000ha 4,5 4.5 4.5 4.5 4,5 22,4 1,942 0,266 9,266 8,266 8.266 8,266 41,329 9,91010.752 11,666 12,657 13,733 58,719 ...... Sub-TotalCADA 16.14216,142 16,142 16,142 16.142 80.710 19.35220,997 22,792 24,718 26.919 114,669 C. ENGINEERINGANDADHINISTRATION ...... ENOINEERINDANDADIIN FOR CUKS ------1.4961,496 1.4961,496 09896 6,969 1.559 1.692 1&8361,992 1.290 9.359 ENGINEERINSANDADMIN FOR CADA ------1.9371.937 1.9371,937 1.937 9,695 2.019 2.191 2.377 2.579 2,799 11.965

Sub-TotalENGINEERING ANDADMINISTRATION 3.433 3,433 3.433 3,433 2,823 16,555 3.579 3,983 4,213 4.571 4.079 20.324

Total INVESTMENTCOSTS 32.04032.040 32.040 32,040 26.350 154.509 37.875 41,094 44.587 49.377 43,167 215,301

Total 32.04032,040 32.040 32.040 26.350 154,509 37.875 41,094 44.587 49,377 43.167 215.101

......

/I MAINDRAINAGE ANDLINKS TO BE CONSTRUCTED BYID CONTIGUOUSLY I

...... March5 1985 14138 INDIA MAHARASHTRACWMOSITE IRRIGATION III FROJECT JAYAKYADI69000 ha LbC 65/70 RIC 39/74 NEW AREA DetailedCost Table IRSmillion)

Quantity baseCosts totals IntludingContinisncles ------, ,...... ~...... Unit S5/8686/07 97/89 98/99 99/90 Total UnitCost 65/06 96/9797/89 08/69 C9/90Total 855:6 86/17 07/8 8,99/S S9/90Total

I. IMNESTNENTCOSTS ...... A, CIYILIORKS

LININGCOMPLETION DIST/ KINORS 1000ha 12.3 12,3 12,3 6.5 - 43.4 44896 60,225 60,225 60,225 31,826 - 212.502 72.203 79,340 84,99948.736 - 284.277 PAINDRAINAGE 1000ha 18.2 19,2 15,2 19.219,2 92,9 1.417 25,762 25,762 25,762 27,179 27.179 131.642 30,995 33,510 36,35841.619 45,156 187,52S LINKDRAINGE /a 1000hi 19.2182 19.2192 19,292,9 0,256 4.657 4.657 4.657 4.913 4.913 2J.79D 5,593 6,058 6.573 7.524 9,163 33,901 ROADS .m 54,4 54,4 54.4 54.454.4 272 0.299 16,258 16,259 16,259 16.25816.258 81.290 19.491 21,14822.946 24.896 27,012 115.493

Sub-TotalCIVIL MORKS 106,902106,902 106,902 50,176 48.350449.232 129,162139,056 150.876'122.775 20,332 621,200

FIELDCIWMIELS AND STRUCTURES 1000 h i 13 13 14 14 14 68 1,705 22,159 22,159 23.96423,964 23.564 115.09 26,566 29o924 33.6036.543 39,649165,261 FIELDCEWIL PROJECTION 1000ha 13 13 14 14 14 68 1,17 15,214 15.214 16.384 16.394 16.394 7945P1 19824019.790 23,124 25.090 27.222 113.466 FIELDDRAINAGE 1000ha 13 13 14 14 14 69 0,712 9,255 9,255 9,967 9,967 9.967 40.41211.096 12.039 14,067 15,263 16,560 69.025 LANDSAPING 1000ha 13 13 14 14 14 65 2.297 29.96529.965 32,162 32,162 32.162156.215 35.904389467 45.392 49,25053.436 222,729

Sub-TotalCADA 76,493 76.49382.377 92,377 82,377 400.11991.706 99501 116.263126.145 136,967 570.481 C. ENGINEERINGANDADMINISTRATION ...... ENGINEERINGANDADNIN FOR CWS - - - - - 12,92912.928 12,8299,621 5,80253.908 13,373 14.51015.744 12,911 8.382 64.921 ENOINEERINGANDAhIIN FOR CADA - * - - 9S179 9.179 9.895 9.995 9.855 49,0149.569 10.383 12.132 13416314,282 59.528

Sub-TotalENGINEERING ANDADMINISTRATION 22,007 '22007 22,713 19,506 15,687101,722 22.943 24.893 27.975 25.974 22,664 124.349

Total INYESTIENTCOSTS 205,402205.402 211.993 192.060 146.414 951271 242910263.449 295.013 274.894 239.U63 14316#030 s"wsss:~ ~ sss.. aI%twas:...... :xaS *wallfase wirwr 2988211: Istsaatg offat*s xxxvIRIS: Total 205,402205,402 212,993 182.060 146,414 951.271 242.810263.449 295,013 274894 239.9631.316.030 2211122XX3322212 22222*2N 222r21222222*2 3211 12 13222213 82*22X2 2323232 22222123

...... , ...... /a MINDRAINAGE ANDLINKS TO BE CONSTRUCTED DVSD CONI1$UOI.'Iv

...... …...... Match5 1985 14139 o . (RSmillion) QuintItv last Costs TotalsIncludirs Contnnsmicls Unilt05/86 86/9787/S0 89/89 89/90 Totail Uinit Cost 85/86 84/87 87/8888/89 89/90Total 85/8686/87 87/88 88/89 89/90 Total

Is IWESTIENTCUlSS

AsCIVIL M,SA

ADVANCNOMS km 0 - km30 /a -- 15.13215,132 15.132 45.397 - - 21.35723.172 25.142 69,671 ROADSIN 24000 he CAD km 24 24 24 24 24 120 0.299 7d1737,173 7.173 7.173 7.173 35.863 9,599 9,330 10.12310,914 11,917 50,953 DISTRJUJTIW(SYSTEMI k. 0 - ka 30 12400hi) 1000ha 4,8 4,9 4,9 4,8 4,8 24.2 9,928 43.21243.212 43,212 43,212 43.212 226.059 53.905 56.209 60.987 66.170 73,795 306.966 HAINDRAINAGE km 30 40 60 50 98 308 O,11 3.307 4.410 6.615 9,920 10,80433.957 3.965 5,736 9.336 13,50617.951 50,495 LINKDRAINAGE /b 1000ha 3 4 5 6 6 24 0.256 0.76?1.025 3.281 1,5371,537 0614 0,921 1,333 1,809 2.354 2.554 8,969 Suti-TotalCIYIL NORKS 54.46055.919 73.412 15,873 77,958 337,423 65,293 72.608 103,610 116,186 129.359 4097054 it CAMA FIELDCIWILS MND STRIJCTIMES 24000ha 1000ha 3 4 5 6 6 24 1.7055.114 6.919 8,52310,227 10.227 40.909 6,331 8.86912.028 15.661 16.992 59.691 FIELDCIWML MTECON 24000he 1000he 3 4 5 6 6 24 117 3,5114.683 5.8527,022 7,02228,088 4,209 6.0890.259 10.753 11667 40,976 FIELDDRAINAG 24000 ha 2000ha 3 4 5 6 6 24 0.712 2.1362.498 3.560 4.272 4,27217.087 2,561 3.7045.024 6.5427.097 24.927 LANDSW~ING ~~~~~~~~~~~~~~~~~~~~~~~~~...... 24000 ha ...... 3000 ha 3 4 5 6...... 6 24 2,2976,892 9,189 311486 ...... 133794 13,794 55,135 9,262 11,53 16,23221.107 22,902 90.435 Sub-TotalWAA 37.65223.536 29.420 35,305 35.305 14o2.21 21.163 30.616 41.522 54,062 58.657 206.020 C. ENGIIERIWJAJDADMINISTRATION

ININEERINSAND AMHIN FOR CEKS -6.535 6.698 8.9099,305 9,34340,491 6,933 7.57630,931 12,124 13.499 50.023 ENSINEERINSANDAMIIN FOR CAM- 2,3392.824 3.5304.237 4,23736,946 2.209 3,2954,33 5.6416,221 21,499

Sub-TotalENGINEERING ANDADMINISTRATION 9,654M.23 12.34013.341 13.579 57,437 9.021 10,773 15.344 37,765 19,619 72,321

TotalINYESTMENT COSTS 80.766689.78 115.373 124.519 326.742 536.078 95.475 1323995 160.277 189.033 207,635 765.395 333311z 1117833 311111 932111311l3 3838331 888383 8838333 1831338 1313313 3833313 331182el Total 90,766898579 115.173 124,519 326,742 536.078 95.475 1333.95 160.277 188.0133207.635 765.395

ia 90STRITt1MES ALONG THE MAIN CANAL TKEENkm 0 ANDKMl 30 /b MAINDRAINAGE ANDiLINKS TO BE CONSTRUCTED IVID CONTIGUOUSLY

March5. 1995 14339 INDIA AHARASHIRACOHPOSIlE IRRIGATION III PROJECT MAJALIAONFRDJECt - SEGMENT 11- DatailedCost Table IRSKilltion) Duantit PosteEclts TotalsIncluding ContinSencles

------...... Unit 85/1696/87 87/08 89/89 89/90 Total Unit Cost 85/86 06/17 87/80 80/89 89/90 Total 95/86 86/87 67/98 89/89 8S/90 total :.3 3 * , .:.e= .wszassa:2:1: ::::: 3s333 33333:3:: 3a3313 333383 3333333 3333as3t3 3333383 333 k 333333 3333:3 3s3s33s 4831333 33a3331 3333333

1, IWNESlTENTCOSIS A.CIVIL INORKS

AWMUNCEM SORK km 30 - km67 - - 17,291417.294 17429451.882 - - 24,40926,492 29.733 79.624 ADV MC KSko 67 - 100 - - 95.614 95614 95.614286.843 - - 134.945146415 158.560 440,220 DISTRIIUIIONSYSTEI km 30 - ko 67125000 ha) 1000ha 5 5 5 5 5 25 8,928 44,64044,640 44,640 44.640 44.640 223,201 53.518 58,067 63.003 60.358 74.160 317,114 ...... I...... Sub-TotalCIVIL MORKS 44,64044.640 157.548 157.540 1574548 561,925 53,510 58.067 222.355 241,255 261.762 9360957 3. EN6I1KERIIIAND ADHINISTRATION

ENGINEERINGANIAMIIN FOR CWKS 5,357 5.357 18.90618.906 18.906 67.431 5.54 6.059 23.20225,174 27.314 87.335 ...... Sub-TotalENGIKEERIND MD AMINISTRAIION 5,357 5.357 18,90618.906 19,906 67.431 5,584 6,059 23.20225.174 27.314 87.335 ...... _...... TotalINVESTMENT COSTS 49.997491.997 176,454 176.454 176.454 629,356 59,102 64.126 245.557 266J430 289.076 ?24.292

Total 49,997499997 176.454 176,454 176.454 629.356 59,102 64,126 245.557 266,430 289,076 924,292 st:w:- losses ..a.w". #..Weso 821 ,::....as.::.. ,.,,..,:. .9,.,..... mtss gs2wsx 2184:gT

______.__...... ______.______._.______.______.___...____._...... ______...... _.____._...._.______.____.____...... _.__.._._.___... match51 ?5 14140

I18 -64-

Table 8

AAASLUMA COPOSIr urIICAIn III PROJECr

Work in Next Timslice (1000-94) ft ( in Economic Prices)

199LN91ILLS. lUll3 s311119s4 95196-2024125 ha Eajalgano 43.000 ba-la 100-165 64.9 64.9 64.9 0 0 0

DistributionL Sysems aialsa .000 bha-km 67-100 9.9 9.9 9.9 9.9 9.9 Kajalgso 43.000 ha-kIa 100-165 ILI "Al "A. ILl "Al Total 63.2 63.2 63.2 63.2 63.2 0

fei-L Drainago Eajalgac 25.000 ha--a 30-67 5.1 5.1 5.1 5.1 5.1 Eajalgaca ,ooo b-m 67-100 8.2 8.2 8.2 8.2 8.2 ajalgaca 43.000 ba-Ia 100-165 a. o.1, 8. a._t 8.8 Total 22.1 22.1 22.1 22.1 22.1 0

Link Drainage Najalgaoc 25.000 ba-Ia 30-67 0.9 0.9 0.9 0.9 0.9 lajalgaoa 8,000 bha-h 67-100 0.3 0.3 0.3 0.3 0.3 Hajalgaca 43,000 ba-Ia 1O0-165 _1.A _L _IS _.Jt 1 6 Total 2.8 2.8 2.8 2.8 2.8 0

Roads Najalgaca 25.000 ha-Ia 30-67 4.9 4.9 4.9 4.9 4.9 lajalgeon 8,000 ba-km 67-100 1.5 1.5 1.5 1.5 1.5 Majalgaoa 43.000 ha-km 10O-165 -&A 8L3 LI _. 8.3L - Total 14.7 14.7 14.7 14.7 14.7 0

Telecoianicat ions ESuiument Hajalgaot 25.000 bs-km 30-67 0.1 0.2 0.1 Eajalgaon 8.000 ba-km 67-100 0.1 Hajalgaen 43,000 a-a 100-165 L2A -LI _.A Total 0.3 0.6 0.3 0 0 0

Field Channel and Strctures Htajalgao 25.000 ha-km 30-67 5.9 5.9 5.9 5.9 5.9 ttajalgeon 8,000 ba-Ia 67-1W 1.9 1.9 1.9 1.9 1.9 Hajalgeon 43,000 ba-km Lo-L65 LlA. L.L ILP. Ll.l Ll. Total 17.9 17.9 17.9 17.9 17.9 0

Field Channel Protection tajalgaon 25.000 ba-km 30-67 4.1 4.1 4.1 4.1 4.1 ajalgo 8.000 a 67-100 1.3 1.3 1.3 1.3 1.3 Majalgaon 43.000 ba--a 100-165 .JA 7JA 7.o ,4 0 .24 Total 12.4 12.4 12.4 12.4 12.4 0

Field D,-aimi Najslgao 25.000 ba-km 30-67 2.5 2.5 2.5 2.5 2.5 -ajalgaa 8.000 ha--k 67-100 0.8 0.8 0.8 0.8 0.8 Kajalgeon 43.000 ba-km 100-165 4.2 4j2 4.2 4.2 4.2 Total 7.5 7.5 7.5 7.5 7.5 0

laod SbL oi- Hajalgaot 25,000 ha-km 30-67 8.0 8.0 8.0 8.0 8.0 Kajalgeon 8.000 ba-km 67-LO1 2.5 2.5 2.5 2.5 2.5 Majalgana 43.000 ha-tm 100-165 ILI 7 IL3.13.7 1 L. Total 24.2 24.2 24.2 24.2 24.2 0

Eneineerina lad Administration Najalgwa 25,000 ba-km 30-67 4.0 4.0 4.0 4.0 4.0 Hajalga.. 8,000 ba- 67-100 3.3 3.3 3.3 3.3 3.3 Hajalgeon 43,000 ba-Ia 100-165 flfl ILl Il. ILl ILl Total 28.6 28.6 28.6 25.6 28.6 0

Land Shav_n Eaninment KajalgaoA 25.000 ba-Ia 30-67 1.6 1.6 1.6 1.6 1.6 Kajalgaon 8,000 ha-I= 67-100 0.5 0.5 0.5 0.5 0.5 Kajalgaon 43.000 be-kw 100-165 .24 2.- .2A.LI -1A. rotal 4.7 4.7 4.7 4.7 4.7 0

Incremental OWeration and Haintanace Jayakradi 6,B000 ba 4.9 4.9 4.9 4.9 4.9 4.9 Kajalgan. 24,000 ba-km 0-30 1.7 1.7 1.7 1.7 1.7 1.7 KajalIaou 25,000 ba-km 30-67 - 1.1 1.8 1.8 1.8 1.8 Kajalgaon 51.000 ba-km 67-165 0 4 2 6 _U Total 6.6 7.7 8.8 10.0 11.0 12.0

GRAm TOTL 269.9 271.3 272.1 208.1 209.1 12.0

/.With i15 physical contingency on wrka and equipmet and no price concingeaciea. -65-

Ses I lEIK SMUlt f lBlTM all Ct Tbl

Saulub oa Costs Total, Dledi CaiaEia

bit 11 WV 8710 N 0 TrMM OuLCast MM 7 17.U 1/O /n0 Totl W/. 06 17/lI 13139 W/"6 Tol U flfl flu. uSfi S ,n * ~~~~.. a r m . ... .R...flEfr. ._|

1. 131T1m13ncum

A. PlE K(E110 3S13fl5 (SOI

W9M KEL33*. K11. 1R194 ISI 3- - - - - .4 17.050 14.03 5.239 - 60 3*4 20L. 17J L0.M - 57. W9UP115 a 11s11142 I99 I2 S - - - - a 0.g pie. - - - - 0.43 0. - - - - 0.043 1/J _ fwiaO 41I 1a 2 - - - - 2 0.0 Llf - - - - 0.160 0.1W7 - - - - L.lt7 0341 t too)fl ------0. 0U4260.026 0.6 0.02 0.130 042 S*AN 043 0.035 04A 0.141 [1l11341U03rI3 CM) ------*.22 ea22 0.022 0.022 02 0.0 0*22 L.5 LO7 0.09 1.032 0.16 Yl*( Fgt 2 I AlTfIIfPt 1 SWP U 24 24 24 24 24 120 LO2 4 0.046 00 6 0.06L*J50 .M 0.2 0e456 0.6 04M O.S1 C00T0ff3 FEES110 IJI 1 1 1 1 1 5 0.e3 04 0.L33 0.003 0.03 0.0 0.014 0.0 0.M .003 0.004 0.004 0.017 FFJU 1FF 113 - - 0.0 0.011 *.OU 0.O 0.011 0.034 0.611 0.012 0.013 0.014 0.01 O.W7 2 191 - 9 -0.16 - - 0.1 LOU 0.016 0.016 0.l11 6.16 L.0l O.1 1.021 0.023 0.097 4 91L1 EnO. 43s-- - - 0.A2 0.052 0.52 0.62 0.62 0.260 0.00 0.164 O.6 6.4?5 0. 2D

S*fTo1 PII IfW T JIIlUlRItWEI (s32 WM iL0 143 .44 0.m1 49.,f 9*32 S2! , 7 11.4 0.53 B55 0. SW ITWIlI me I_

c 11 0.6 n1 fL -- - - 2.00 2.0 100 1.00 1.000, 7.00 2.5 N.2M 1.227 I-.3 1.44 L3 TIEIslImm CMS OfMIn -,lb t.t - 1 .00OI.000 1.001.000 5.000 1.043 1.131 1.2 I-2 1.46 7 EIWT FOR7 ITO-N_ - - 1. L.0GO - - - 2.640 1.70 1.131 - - - 2zi go0 HMO la '-I Zt2 2tin t.10t0 2,100 10,30 0.00e 2.2 2.U2 2.M2 2.t12 2.26 11.311:23 . 2 .n76 3.012 J.2 1374 iio 5m C 160 la 260 160 1" 0 0.OI LI" 0.194 0.194 0.194 0.14 0.970 0.202 0219 0.238 #-'A 0.20 1.19 UPD O911(1 I 200 lt - _30 LO0O .174 0.07 - - - 0460 0.1I1 0.03 - - _ 0.2 SL otal 1 omgSJ0oo w3 7.27O4.453 4.456 4536 4.46 27.03 7.577 7.40 . .934 6.A31 32.311 C. Timis 1VIES

FM3 t IIt t2 SO51 k - - - - - 3.000 2.06 2.000 2.06 1.0 10I.OO 3.120 2.212 2.453 2.663 1.46 1I.52 NM HIIIT1ff 11A11 -Id - - - - 0.- 00 0.2 0. 0. e eJo.30 0.313 0.319 0.37 0.3D 0.29 1J.1 S1 TOM / - - - - 0.500 0.00 0.500 0.510 0.= 2400 0l 0.5 0.614 0.66 L722 L IND= n - - - - - 1.06 1.9"0 1.10101.30 1.3 30 1.077 2.149 2.209 1.? .67 10.9 1l3. TEgUU *I r13 /nJ 7 7 7 7 7 35 0.32 054 0.54 0.104 0454 0.54 4.27 0o 0.946 1.043 1.7 12214 5.21

.Le-TotlWEDlDM.1(S133 6.454 5414 540t4 5.144 4.04 26.370 . 6.2 -6.2 6.796 S.17 32.96 0. 62Wof

c ee weArTOBRUPOUT ------18003 . to-So 0L - - 54-SX I7U 20.I 22.03 - - 61.711 la.9ll E - - - - - I.000 2.000 L.OGO - - 4. 1.042 2.22 1.27 - - 4

S_-TOt 0 0 1007 1.000D - - 3.500 I JIIS 23.1052 1 - - 6.1.1

Tota 1nTIE3T elm7 41.3123.632 43.06 17974 L310 61.921 4334 57.23 52.W7 23.93 12.4 lfl.939 Cat 41.32 S 2 43.06517.974 3.0 161.93 6.343 D32 12.S 23.412.3 0".99 rdS41.t2Sf 1?.Ut2t a.... - .aa ssg asS Dfl------..-2J l

La 1110 Sellr F OCZUCS10CU. - E,a.iSTe,UUSrx-rTE013 PW Is not016 MMI W KUMC301370 AMS USICI WM1130L111111AILPV30111 tIUISAU 301 EOIIASIK ib S es ekm DlMINo WMI Me W. rtmwmN mu coe NM TED /c 1t ]NOMIsMM F fll 311PIAMIN M sIMX50 39?S IKSS.6C0 /M 99131ll1l3 1 _0 00E 1113 TIE 93UECt /at am TONSD 130162166s nT 0 5 lUit JM SD

is Q1"OLT DOW MB i;UC0T7W t=_tW E FIR 3 MIs Ut StW USIOIU . EDIIST 13 1111MM 1P U 1S. fs 7200 M1 11 DhMTiL 1L: 7 OM WM1* Mi VACO ft313M PO3 55E ISU 1R00FfP oWi NOW MnP MMnL FiwaMs NM

biab _.1614 INDIA IIAWASHITRACOIPOSIIE IMRlCATION III PROJECT Sueary Accountbe ProJectConcent IRS Million) JAYRAVADI JAYAlIADI 33650ha LK JAYAKUADI JATYANDI MCIP27000 ha 65/70 RK 48000hi LK Phnsical JAAKMO!I ICIP24000 ha FARMERS JMYNXWADI26/74 GMt 65/70RK MAJALDAON Contilrimnies !AN 42350 ha PILOTPROIEC PRWECT l1IPI 45000 PD1IDN 34/74REV MAJGALO ROJECT-SECGENTSDl-TECHNICAL ---.- --. - COIPLEIOiW COWLETION COfLETION ha CWOLEtIONCMPLETION AREA PROJECT'SEGCENT1- II. SERVICES-EOUIPlENTTotal I AowI

1. I STMENTCOSTS

A. CIVILMg5 105.7 9.1 36.13 70.9 57.2 449.2 337.4 561.9 - 11627.I 35.0 244.2 t. EQUIPMENT ------61o4 61.4 0.0 0.0 CADA - 5.0 9.6 62.9 90.7 400iO 141.2 - 69.14 15.0 104.9 C. VMNS 0.0 D. SPECIALDICW'ENOP T DISTRITMJRIES ------73.9 73.9 0.0 E. TECMIICALSERVICES ------26.6 26.6 0.0 0.0 F, ENGINEERINGMD ANTNILTRATION 12.7 1.7 5.4 16.0 16.6 101.9 57.4 67.4 - 279,1 0.0 0.0 ...... ------...... TotalIMSITNENT COSTS 311.4 15.9 50.3 349.6 154,5 951.3 536.1 629.4 161.92.767.3 12.6 349.? TotalMBSELINE COSTS 118,4 35.9 50.3 149.6 154I5 951.3 536.1 629.4 161.9 2.767.3 12.6 343.9 PhnsicalContintnein 15.9 2.1 6.7 20.0 20.7 127.4 71.8 94.3 - 349.9 0.0 0.0 Price Contingencies 25.0 3.6 13.0 4l.O 39.9 237.4 157.5 210.6 29.0 756,0 11.4 36.0

TotalPROCECT COSTS 59.3 21.5 70.1 210.6 215.1 n3,16.0 765.4 924.3 189.93°822 11.2 434.9

Foreign Exchase 21.2 2.2 9.1 19.2 27.4 139.0 9Sl2 122.9 7.3 398.5 32,8 52.0

March5, 11i 14144

iCl INDIA HAHARASHTRACOMPOSITE IRRIGATION III PROJECT SuomaryAccounts bg Year

Totals IncludingContingencies Totals Includins Contingencies (RSKillion) (US$million)

85/0686/87 87/88 88/89 89/90 Total 85/B6 86/87 87/88 88/89 89/90 Total

I. IHVESTHENTCOSTS

A. CIVILWORKS 321.1350.1 564.1 578.4 520.8 2o334.4 26.8 29.2 47.0 48.243.4 194.5 B.EQUIPMENT 21.724.3 23.3 0.0 0.0 69.5 1.8 2.0 1.9 0.0 0.0 5.B C.CADA WORKS 149.6171,1 202.3 228.5 248,5 999,9 12.5 14.3 16.9 19.020.7 83.3 D.SPECIAL DEVELOPMENT DISTRIPUiTARIES 14.9 26,622.9 17.1 6.7 88.2 1,2 2.2 1.9 1.4 0.6 7.3 E. TECHNICALSERVICES 6.7 6.3 6.6 6.8 5.9 32,3 0.6 0.5 0.6 0.6 0,5 2.7 F. ENGINEERINGANDADMINISTRATION 49,154.4 80.084.2 80.3 347.9 4.1 4.5 6,7 7,0 6.7 29.0

Total INVESTMENTCOSTS 563.1632,9 899.2 915.0 862.13u872.2 46,? 52.7 74,9 76.2 71.8322.7 ======U= ==CZ= ==sZ :s:=: :::=:=:=X= ====- =:: ::a:: zzxzw =zz TotalPROJECT COSTS 563.1632,9 899.2 915,0 862,1 3,872.2 46.9 52.7 74,9 76,271,9 322,7 …= =ac=a::: s a n C::==

March5 1985 14142

I~~~~~~~~~~~~~~~~~~~~~~~~- INDIA

KAHAMSHTRA COMPOSITEIRRIGATION III PROJECT ProiectCoat Suumarv

(WithoutMajalgaon Dam and First67 km of Main Canal)

- (Re N) (US$ M) Local Foreign Total Local Foreign Total am=u= nommumm =on== m==ma =sumam= .=w=

A. JayakvadiMWUP 42,350ha Completion 102.9 15.5 118.4 8.6 1.3 9.9 B. JayakwadiNCIP II 4,000 ha Pilot ProjectCompletion 14.2 1.6 15.8 1.2 0.1 1.3 C. JayakvadiMCIP II 7,000ha FarmersProject Completion 44.6 5.8 50.3 3.7 0.5 4.2 D. JayskvadiMCIP I 45,000ha Completion 136.2 13.5 149.6 11.3 1.1 12.5 a' e. Jayakwadi33,650 ha LBC 65/70 RBC 26/74COM PortionCompletion 142.2 12.3 154.5 11.8 1.0 12.9 F. Jayakvsdi68,000 ha LBC 65/70 RBC 38/74 New Area 865.8 85.5 951.3 72.2 7.1 79.3 C. MajalgaonProject - SegmentI 479.7 56.4 536.1 40.0 4.7 44.7 H. KajalgaonProject - SegmentII 546.9 82.5 629.4 45.6 6.9 52.4 I 8DD-TechnicalServices-Equipment 155.8 6.2 161.9 13.0 0.5 13.5 Total BaselineCosts 2,488.1 279.1 2,767.3 207.3 23.3 230.6 PhysicalContingencies 308.0 40.9 348.9 25.7 3.4 29.1 Price Contingencies 677.6 _L8 756.0 56.5 6.5 63.0 Total ProjectCosts 3,473.7 398.5 3,872.2 289.5 33.2 322.7 mum.... muu mmmuuU mumumB mm..S mum.."

F I-A INDIA

HAUARASHTRACOMPOSITE IRRIGATIOt1I III PROJECT

Proiect Cost Summary (With Hajalgaon Dam and Firat 67 km of Main Canal)

-(Rs m) (Us$H) Local Foreign Total Local Foreign Total mum.. ==mum urn... rm=..... mu===..... =.

A, JayakwadiMWUP 42,350 ha Completion 102.9 15.5 118.4 8.6 1.3 9.9 B. JayakwadiMCIP II 4,000 ha Pilot ProjectCompLetion 14.2 1.6 15.8 1.2 0.1 1.3 C. JayakwadiMCIP II 7,000 ha FarmersProject Completion 44.6 5.8 50.3 3.7 0.5 4.2 D. JayakwadiMCIP I 45,000 ha Completion 136.2 13.5 149.6 11.4 1.1 12.5 S. Jayakwadi33,650 ha LBC 65/70 RBC 26/74GOM PortionCompletion 142.2 12.3 154.5 11.9 1.0 12.9 P. Jayakwadi68,000 ha LBO 65/70 RBC 38/74 New Area 865.8 85.5 951.3 72.2 7.1 79.3 C. MajalgaonProject 1,562.6 213.1 1,775.7 130.2 17.8 148.0 B. 8DD-TechnicalServices-Equipment 155.8 Ji22 i61.9 13.0 0.5 13.5 Total BaselineCosts 3,024.3 353.5 3,377.5 252.2 29.4 281.6 PhysicalContingencies 377.3 53.4 430.7 31.4 4.4 35.8 Price Contingencies 763.4 97.4 861.1 63.6 8.1 71.7

Total ProjectCosts 4,165.0 504.3 4,669.3 347.2 41.9 389.1

H. --70-

Annex 1 Table 13a

INDIA

MARARASUTRACOMPOSILTE-URRIGATION III PROJECT

Equivment for Landshapinit and O&M

Rate Amount Total Item Description Quantity Rs M Rs M Rs M

CAD LANDSHAPING

ICB

1. Elevating Scraper 3 1_5 4.5

2. Graders 3 1.2 3.6

3. 100 BP Crawler Tractors with Dozer 50 0.75 37.5

4. Laser Beam Equipment 2 0.5 .1.0

5. Spare parts e 15Z on 1,2,3 6.9 53.5 EQUIPMENT ARD VEHICLES FOR SDD

LCB

1. 4WD Vehicies 2 .08 .16

2. Equipment fabrication LS .11 .11

3. Drip and sprinkler equipment 1.0 1-.27 EQUIPMENT FOR O&M

LCB

1. Telecommunications set 4.0 4.00 Equipment

Total 58.77

. . .~~ Annex 1 Table 13b

INDI

MAHARASHTRA COMPOSITE ITRIRCION III PROJECT

Equipment for Mcnitorinz

Rate Amount Total Item Description Quantitv Rs Rs Rs

MONITORING/EVALUATIONUNIT

LCB

1. Class A Weather Station 3 50,000 150,000 2. Automatic Rain Gauges 10 9,000 90,000 3. Portable Laboratory Sheds 3 100,000 300,000 4. Water Level Recorders (including installation) 8 15,000 120,000 5. Current Meters (Standard) 10 10,000 100,000 6. Current Meters (Pygmy) 10 7,000 70,000 7. Portable Flumes 40 1,000 40,000 8. Microcomputer and peripherals 1 200,000 200,000 9. Miscellaneous Small Equipment 230.000 Subtotal (Equipment) 1,300,000 1,300,000

10. Ambassador Car 1 100,000 100,000 11. 6'-oVehicles 4 80,000 320,000 12. Pic'c-up Trucks 4 80,000 320.000 Subtotal (Vehicles) 740,000 740,000

STRENGTHENING CADA:-OPERATIONS 13. Microcomputer and peripherals 2 200,000 400,000 14. Draving office equipment LS 200.000 - Subtotal (Office Equipment) 600,000 600,0000

Total 2,640,000 -72-

Annex 1 Table 14

MAHARASHTR&COMPOSITE- IRGATION III PROJECT

Details of Incremental SDD Costs

Unit Cost Cost 2nd and I. Item Rsiha/year Ist-vr subseauent years

Irrigation Extension 210 210 210 Agricultural Extension 850 850 150 Farmers' Involvement 125 125 125 Adaptive Research 210 210 210 Monitoring & Evaluation 210 210 Farm Roads 420 420 Mainteuance 340 - 340

TotaL 2,365 1,815 1,245

_-. Tmulementation Unit 1985/86 1986/87 1987/88 1988/89

PLBC SDD1 ha 1094 1094 1094 PLBC SDD2 ha 3576 3576 3576 PRBC SDD3 ha 2620 2620 2620 MRBC SDD4 ha 4000 4000 4000

Total ha 4,670 11,290 11,290 6,620

III. Cost of Program (Rs K) 1985/86 1986/87 1987188 1988/89 Total

SDD1 + 2 8.48 5.81 5.81 SDD3 + 4 12.02 8.24 8.24

Base Costs SDDs 8.48 17.83 14.05 8.24 48.60

Price Contingency 0.36 2.34 3.19 2.73 8.62

Total 8.84 20.17 17.24 10.97 57.22 t_~~~~n c_ _m -73- Annex -1 Cable 15

IINDIA

MAEARASHTRACOMPOSITE IRRIGATION III PROJECT

Schedule of Expenditures La

(Rs H)

Component 85/86 86/87 87/88 88/89 89/90 Total

Jayakwadi MMUP 34.2 37.1 40.3 47.6 - 159.2 42,350 ha Completion

Jayakvadi MCIP II 4,000 ha 4.3 4.7 5.1 5.5 1.8 21.4 Pilot Project Completion

Jayakvadi MCIP II 7,000 ha 12.3 13.4 14.5 15.7 14.2 70.1 Farmers Project Completion

Jayakladi MCIP I 33.6 37.8 41.0 44.5 53.8 210.7 4,500 ha Completioii

Jayakvadi 33,650 ha IBC 65/70 37.9 41.1 44.6 48.4 43.2 215.2 RBC 26/74 GOM Portion Compl.

Jayakwadi 68,090 ha LBC 65/70 242.8 263.4 295.0 274.9 239.9 1,316.0 RBC 38/74 New Area

Majalgaon Project Segment I 95.5 114.0 160.3 188.0 207.6 765.4

Majalgaon Project Segment II 59.1 64.1 245.6 266.4 289.1 924.3

Equipment-SDD-Technical 43.3 57.2 52.9 23.9 12.6 189.9 Services

Total Project Cost 563.0 632.8 899.3 914.9 862.2 3,872.2 === on ==s c =_

/a Based on April-March fiscal year. -- ~~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~Annex~ ~~~~~-474 1 - Table 16

INDIA

MAHARASHTRACOMPOSITE -RMIGATION III PROJECT

Disbursement Schedule La WON)

IDA Fiscal Year During and Semester Semester Cumulative

1986

1st 11.0 11.0 2nd 14.5 25.5

1987

1st 16.1 41.6 2nd 17.7 59.3

1988

1st 17.7 77.0 2nd 22.5 99.5

1989

1st 19.3 118.8 2nd 14.5 133.3

1990

1st 12.9 146.2 2nd 10.2 156.4

1991

1st 3.6 160.0

/a Based on the 3rt to 8th years of Indian irrigation sector disbursement profile. -75- Annex 1 Table 17

INDIA.

NAUAR4SETRA COMPOSITE IRRIGATION III PROJECT

Credit Allocation (US$x)

Amount of credit Category allocated Z Financed

1. Civil Works: 55Z

(a) Major works 85.0 (b) PND 12.0 Cc) CADA 33.0 Ia 'd) MMDC 13.2 lb

2. Equipment and vehicles 4.8 1OOZ of foreign expenditures 100Z of local expenditures (ex-factory costs) and 70Z of local expenditures for other items produced locally. 3. N&E, housing and offices for 4.4 70% agriculture staff and supporting the SDDs (including incremental staff costs)

4. Soil laboratory, special surveys, 2.6 1OOZ study tours, training programs, and special technical services

5. Unallocated 5.0

TOTAL 160.0

/a Of completed work. lb Of completed field.

''-I- IN~DIA MAARAR.SHTRACOMPOSITE IRRIGATION III PROJECT Existingand RequiredWorking Teams of ID and CADA

. ~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~ r fiue is

If. It.,I 3.413.1 I-S93a 1959-N2 F,.u.. Additional Naeru of lb,rief J&VkSal,b ~ ~~'kbd u ZILSI ia.Joalr.d& U adduii h4liu,lo 2I";;k-VA hL=GU Avaiklabltz aiea Phi-le~uUa, uuat IeikM 2.or.oula L L L £ L L L L 'iI.Z 1932-MI'0 to pe loSb. go. l .ciuLO o 22 22 22 22 Is to 23 Is 20 2$ Is 10 is 22 3 peryear.

2. P.C.Lisies L L- 1. L. L I 1- L. L I I I I I iga6-aiL :,ooob.persub. 0. flipraiInmieowro 10 10 I$ IS I 3 IS 1O 3 Is IC 3 Is 10 3 For year. iwindIatiSPlYliOss 3. HellmDrilwe L I L L L 1 111913-SO L 40 keg. per sub. be. d.aouetSieui MMb.D 25 Is 20 20 20 3 2 20 3 0 3 23 S Fopr7.ir*

1961-58 L S

4List Dvalms - - --- 94 8 2 to 10~i - 0 Nit 1932-13

11ioad. L - L L - L L. L L L L L L L L L 3 3 5 5 Ie S is tO S Is 10 1 is 5 Iffy-of I,peedItoreoIofof2.00 ~ ~ ~ ~ IC HiIttonmper SUMNb.ST.Ip

*.6 eIiS . 1 L - L L - L L - L L L L. L 1935441L NaaItmuosNe ll 22 4 II Iis Ii 1I IS 26 4 20 I 5 1114-S1L 4

19,19-9 L 4 1..fil Lt L L L L L 11.3.34L p,ej*et 22 22 22 22 II I9 II it 33 *9I- I912.SiI-j) ~~~surplusavailable 3 for trRaTtaer

0. f. e plol L1. o rI L L L L- oil 1915.1-1 I s0 lb Wab.bU mulmises 4 3 6 633 Jqyakwedi

TOTAL. Li U-1 - IL ML - L L IL tsU- 019S-8OL 92 92 114 114 104 Ii 104 5is lII le 24

12w-U L (4120- I/l */11)

*.L-39 L- * * *(11* __*2- I, INDIA

HH4.spNPOP0THdRIo _ lio IIfQ4LCq1:

l ogwer Reauirements aor_UQ_gLU

------i---n--t-_ 1b.- ______--- N------ev (to be LA Lk1AL _ _ Pouting of New -A -.(1) --- (2) ------_____-___QE __ S---4I---g.jlL_ Lower Medium Lower Hedlum Lower Medium Lower Medium Job Total Level Level Total Level Level Total Level Level Total Level Level lot 2nd 3rd -SD 0jjj11 OLRc SD_ Qjctj QOfera SD QtUims QLfici AD Qjfjgors OUnuu Year YU. YU. Training iDsih1 OFD, Field Channels 19 475 114 3 30 78 2* 50 12 1* 10 26 FC Lining - - 10 100 260 - - - 6 SO 130 5 3 QHm - - - 7 70 182 - - 13 130 33H 6 4 4

Total 475 114 200 520 50 12 190 494

Training In Land Shaping & kconaLe

Main Drain - - - 5 50 130 -- - 20 200 520 10 5 5 1 Link Drain. - - - 7w 175 42 3w 30 78 8 2 % Land Shaping ------4' 100 24 2* 20 52 6

50 130 275 66 250 650

(1) Subdivirion i. mainly composed of officers with education in Agriculture. (2) Subdivision ia mainly composed of officers with education in civil engineering. * Division of new subdivisioninto Ag. and CH la an estimate.

I-H .~ALLIUL~L------.- TriainingFILr,ULm._M 7raining Training Background kgliD&...uAMVIL ..J.LAtL.... _:_U_dYtLr._ Pre- lst 2nd 3rd LI&L1sq" QkiU.liyi. 1kTaasnL Li~ QW&ai.a1 Li QLLiqaLD L, QLiceraOf~ 1D £ QfLfUua[Prgiq6t Xn.E ~UL hai

WIALRI Design Ag.U 19 114 - - - 2 12 2 ('i0) 3 (90) 2 (60) 4(120) Exist. CB 20 520 130 9 234 5 130 3 (90) 4(120) 4(20) Now Total b34m 130 234 142

LS &Drainage A&. - - 4 24 6 36 1 6 (not includ- CE -- 2 52 2 52 1 26 ing main Total - - 76 88 32 2 (60) 2 (60) 1 (30) Now *of 30An trainees averageper .~~~~~~ course.S ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~ . St^£ drains) CADA Design AM. 19 475 - - 2 so 5(15) 17(510) Exist. shwintr paete niaenme ftane 3J~~~~~~~~~th ~nube ~ ~of CE corss NumberLNumbern20 200 - - 9 90 5 50 3 (90) 3(100) Nev Total 675 90 100

LB & Drainage AS. 4 100 6 150 1 25 (not includ- CE 2 20 2 20 1 10 6(170) 1 (36) Nev iog main Total srainin8E4ty-120 TtininB Bac8roundQt L _ 2 Y{t_170 __ 3r Yea15' Pre- et 2nt 3r drains) ik & wfiefiq L of TQ[i£qz lqt u L£ °ticrZ S LSOffcersSD ? Ofi,eu Poie Y"Ye 0

LI AS. Officerswith educationin Agriculture(2) officersIn educationIn engineering. V SD Subjivision. wAn estimatednumber of 134 had alreadytrained in WALMI. -79- Annex 1 Table 21

INDIA

MAHABASETRACOMPOSITE IRRIG&TION III PROJECT

Present and Expected Future Crop Yields (T/ha)

P v VI W2 XF IR BF IR IR IR

Sorghum kharif 0.8 2.0 1.0 2.2 3.0 3.6 rabi 0.8 2.0 0.9 2.2 3.3 4.0

Rice - 1.2 - 1.8 2.0 2.4

Pearl Millet 1.5 1.6 2.0 2.2 3.0 3.6

Wheat 0.5 1.0 0.6 1.2 1.8 2.2

Cotton: short staple 0.5 0.5 0.8 0.8 1.2 1.4 long staple - 1.5 - 1.8 2.5 3.0

Groundnut kharif 0.5 0.6 0.6 0.9 1.2 1.4 hot season - 0.8 - 1.3 2.2 2.6

Chickpea 0.2 0.6 0.3 0.7 0.9 1.1

Green and Black Gram 0.4 0.5 0.5 0.6 0.8 1.0

Safflower 0.4 - 0.5 - 0.9 1.1

Sunflower 0.5 1.0 0.6 1.2 1.8 2.2

Sugarcane - 70 - 80 90 108

Bananas - 50 - 50 80 96

Notes: P = present; W = future without project; 111=7 years after first receiving irrigation; W2 = 20 years after first receiving irrigation RF = rainfed (no supplementary irrigation) TR = irrigated (with irrigation as required) Under the project, all crops would receive irrigation to supplement rainfall or residual soil moisture (table 25).

r~ -80- _4ne 1 Table 22

INDIA

1ABARASHTRACOUIPOSITE UIRIGATION III PROJECT

Present CroDDic Partern (2)

rh.rif(RF) Rabi (RF) Perennials (IR) Seasonbot tIR)

Maialaaon; CCA 100,000 ha (12 irrigated by vells)

Rice I - - Cotton (short staple) 21 - - Sorghum 8 25 Pearl Millet 8 - - Groundnuts 3 - - Grams 18 - - Wheat 3 Chickpea 3 - Safflover 9 Cane - - Sg ~~40

Total 1002

Javakvadi; CCA 68,000 ha (2Z irrigated by wells)

Sorghum 23 40 - Grams 14 - - Cotton (short staple) 13 - _

Chickpea 5 - Safflover B - Cane 2 -0 53 2

Total 105Z

Javakwadi; irrigation provided under earlier projects (132,000 ha)

RF IR RF IR

Rice - 2 - - - Sorghum 20 3 30 14 - Pearl Millet 7 3 - - Green and black gram 10 - - - - Cotton short staple 12 - - - - - long staple - 3 Others 1 1 - 1 1 2 Wheat - - - 14 - - Chickpea - - 5 2 - Safflo_.r - - 8 - - Gronudnuts - - - - - 5 Sugarcane - - - - 3 - Banmnas -Z-= Z LI u 43g 31 5. z 62 74

Total 1482

Legend:

NP - Rainfed IR - Irrigated Annex 1 Table 23a

INDIA

MABARASNTRACOKPOSZ_ IRRGATIOV III PR.CJZC

Future CrOuming Pattern Without the Proiect (1)

Hot Ybarif Rabi Perennial Season RF IR RF I X3t IR Haialneon: CC& 100.000 ha

Rice - I Cotton (short ataple) 20 - Sorghum 8 - 25 - Pearl Millet 8 Cronudnutc 4 - Gra 18 - Wheat 1 - C'ickpea 3 - Safflover 11 - Sugarcane - - - - 2 Total S8 1 40 - 2

101

Javakwadi: CCL 68.000 ha

Sorghum 22 - 38 - Grmsa 14 - Cotton (abort staple) 13 - ChiCkpea 5 - Safflover 10 - SugarCane 3 Total 3

105

Javakwadi: CTP I & GOMAre&. CCL 78.700 hb

Rice - 2 Sorghum 14 3 36 14 Pearl Millet 10 2 Grams 15 Cotton - ahort staple 10 - - long staple - 6 Others 2 1 1 1 Wheat 14 Chickpea 5 2 Safflover 6 Grouodnuta 4 12 Sugarcane 3 Bananas 2 Total 56 20 42 29 6 12

165

JteL.'nnudi. N?. Farmers' Pilot Proiect. CC& 53.350 ha Rice - I Sorghum la 9 20 20 Pearl Millet - 15 Grams Cotton - short staple 2 - long staple 10 Others - 2 - 2 2 Wheat 1S Chickpea 1 2 Safflover - Groundnuts - - 10 Susarcane 6 Bananas 1 Total Z1 37 21 39 7 12

137

Legend:

RF - Rainfed ZR - Irrigated -82- Annex 1 Table 23b

INDIA

MARAASETRA COMPOSITE IRRIGATION III PROJECT

Future Croapin2 Pattern With Proiect (Z)

A. (224.000-ha - Upper Reach)

Kharif Rabi Season Perennial

Sorghum 20 25 Rice 5 Gram 15 Pearl Millet 15 Groundnuts 10 10 Sunflower 7 6 Safflower 14 Wheat 10 Chickpea 7 Cotton - Short Staple 10 - Loag Staple 12 Others 3 S^garcane 4 Bananas 2 Total 94 62 13 6

175

B. (76,000 ha - Lower Reach)

Kharif Rabi Hot Season Perennial

Sorghum 20 20 Rice 3 Gram 10 Pearl Millet 10 Groundnuts 15 13 Sunflower 10 10 Safflower 15 Wheat 10 Chickpea 7 Cotton - Desi 6 - Long Staple 20 Sugarcane 4 Bananas 2 Total 94 62 13 6

175

Note: Under the project, all crops requiring irrigationwill receive it, to supplement rainfall or residual doiL moisture. -83-

Annex 1 Table 24a

INDIA

M&HARASHTRACOMPOSITE IRRIGATION III PROJECT

CroP Comparisons at Full DevelLpment (Financial Prices)

Irrigated Net Revenue/ Water Charges Gross Net Water Re- Unit of Irri- Water Net Financial Season Revenue Revenue/a guirements/b gation Water Charge/c - Benefit

(Rs/ha) (Rs/ha) (m3 Jha) (Rs/m3) (Rs/m3) (X) Crop Kharif Long-staple cotton 15,810 12,519 2,955 4.24 0.017 0.3 Sunflower 9,780 8,136 670 12.14 0.075 0.6 Short-staplecotton 5,760 4,227 2,985 1.42 0.017 1.2 Groundnut 6,576 4,026 310 12.99 0.16 1.2 Sorghum 5,460 3,566 535 6.67 0.093 1.4 Green & black gram 4,392 3,306 120 27.55 0.42 1.5 Pearl millet 4,452 2,693 535 5.03 0.093 1.9 Rice 4,080 1,522 1,915 0.79 0.026 3.3

Rabi Sunflower 9,780 8,136 3,455 2.35 0.022 0.9 Sorghum 5,964 4,214 4,060 1.04 0.018 1.8 Safflower 4,860 4,018 3,405 1.18 0.022 1.9 Chickpea 4,170 3,030 3,520 0.86 0.021 2.5 Wheat 4,380 2,036 4,360 0.47 0.017 3.7

Hot-sea3on Groundnut 12,000 9,470 6,710 1.41 0.30 2.1

Perennials Banana 72,000 68,710 8,595 7.99 0.087 1.1 Sugarcane 21,240 14,300 9,195 1.56 0.082 5.2

la On-farm costs including labor but excludingwater charges, taxes and cesses lb At turnout,net of rainfall. Ic Assuming enough irrigationwater given to meet water requirement.

Sources: Farm Models, WATREQ ~~~~~~~~~~~~~~~~--8-

Anmex 1 Table 24b

MA1AAUTRA^ COMPOSIT IIILG PROJECT

Crol) Counarisons at Futll DeveloIment (Economic Prices)

Irrigated Net Revenue/ Gross Net Water Re- Unit of Irri- Season Revenue Revenue/a cuiremeuts/ib zation Water

(Rs/ha) (Rs/ha) (=31ha) (Rs/=3) Crop Kharif Long-staple cotton 21,030 18,160 2,955 6.15 Sunflower 9,919 8,243 670 12.38 Short-staple cottou 5,933 4,608 2,985 1_54 Groundnut 6,658 4,236 310 13.66 Sorghum 5,808 3,928 535 7.34 Green & black gram 4,752 3,790 120 31.58 Pearl millet 4,750 2,965 535 5.54 Rice 4,704 2,332 1,915 1.22

Rabi Sunflower 9,919 8,293 3,455 2.40 Sorghum 6,355 4,585 4.060 1.13 Safflower 4,936 4,240 3,405 1.25 Chickpea 4,502 3,505 3,520 1.00 Wheat 4,238 1,965 4,360 0.45

Hot-season Groundaut 12,161 9,739 6,710 1.45

Perennials Banana 57,600 53,656 8,595 6.24 Sugarcane 15,480 9,461 9,195 1.03

/a On-farm costs including labor but excluding water charges, taxes and cesses lb At turnout, net of rainfall.

Sources: Farm Nodels, WATREQ &HAMSAMIT$ACOMPOSE IRRIGATlONIII PROJECT Irvination Reagiromenta of DesionCrgopin P,atternfor NCXPIII aFea

200.000 in Javakyadi and 24,000First Segment Hal,alpon

Cton1 Arget(0@laha jf Feb UX An UX June JuLX &A JUL la IN R£ IS Kharif

Rice 11.2 20.9 - - 20,9 SOrghumand Bs3rJ 78.4 41.4 - - 41.4 Cotton LB 26,9 30.5 8.1 43.0 28.9 11.3 121.8 Cotton 88 22,4 48.9 45.9 17.3 112,1 Croundnuts 22.4 4.4 4.4 Green Gzam 33.6 No irrigation3 yearsout of 4----- Sunflower 15.7 7.6 7.6

_abi -T Sorghum 56.0 103.3 74.7 83.4127.0 388.4 Chickpea 15.7 25.8 0 43.6 30.9 100.3 Wheat 22.4 50.5 52.7 37.3 37,2 177.7 Sunflower 13.4 35.9 4.0 16.0 21.6 77.5 Safflower 31.4 62.9 30.6 51.0 49.5 194.0 PfreSijal

Sugarcaneand bananas 13.4 37.7 61.5 51.5 56.1 62.2 38.8 15.2 29.2 40.7 392.9 Hot season Groundautsand other hot seasoncrops 29.1 46.2 53.0 110.8 101.1 10.7 321.8

TOTAL 392 362.3 201.8 162.3 157.2 103.4 46.9 - - - 272.1340.9 313.9 1960.8 (1752) ummum*-i umam. ..." u ... mumPs. u*u**

ROTS: (1) Totalwater availabilityfor the whole300,000 ha in 751 year is 2,981 Hm3 (para3.26) which gives 11. a largemargin of safetyfor the designcropping pattern. (2) Overallefficiency is 49X INDIA '' MAHEAASHTRACOMPQSITL IRRIGATION III PROJECT

IrriRationRe4uirements of DesianCronRina Pattern for 1985-90Phase of M¢IP III Area 76.000ha of Secondand ThirdSeaments of Haialgaon (Mm3)

Crop Area(0OOha) Jan LO M£ An Aux iJmn JUIYiaFS u SD Q££ XeEP£1° Xherif

Rice 2.3 4,4 - - 4.4 Sorghumand Bajra 25.4 13.3 - - 13.3 CottonLB 15.2 17.4 4.6 24.5 16.8 6.4 69.7 Cotton88 4.6 10.3 9.6 3M6 23.5 Groundnut. 11.4 2.2 2.2 Green Gram 7.6 No irrigation3 yearsout of 4------Sunflower 6.3 3.0 3.0 Pearl Millet 9.9 0~~~ Rabl tI ° 00 0 Sorghum 15.2 27.9 ' 0 20.2 22.5 34.3 104.9 Chickpea 5.3 8.8 14.8 10.5 34.1 Wheat 7.6 17.2 17.9 12.7 12.7 60.5 Sunflower 6.3 16.9 1.9 7.5 10.2 36.5 Safflower 11.4 22.6 11.0 18.4 17.8 69.8

Perennial

Sugarcaneand bananas 4.6 12.8 20,9 17.5 19.1 21.2 13.2 5.2 9.9 13.8 133.6 Hot Begson Groundnutsand other hot seasoncrop. ------321.8

TOTAL 133.1 106.2 51.7 17.5 19,1 38.6 17;8 - - - 90.6 174.9 99.1 5S5.5 (1753) **** .. m-. _s. m m...... assu.

NOTEs (1) Total wateravailability for the whole 300,000ha in 752 year is 2,981 Mm3 (part3.26) which give# a largemargin of safetyfor the designcropping pattern. I (2) Overallefficiency is 49X -87- Annex 1 Table 26

INDIA

H&H^usRAS COMPSITE- -IRGATION III PROJECT

Incremental Crop Production and Farm Inputs

Item unit 2000 2025

Sugarcane T 406,000 692,000 Bananas T 260,000 469,000 Straw T 274,000 469,000 Sorghum T 232,000 423,000

Cotton long-staple T 44,000 94,000 short-staple T 17.000 22.000 Sub-total T 61,000 117,000

Groundnut T 57,000 109,000 Sunflower T 47,000 91,000 Wheat T 26,000 49,000 Vegetables, Others T 24,000 31,000 Pearl Millet T 20,000 30,000 Safflower T 18,000 30,000 Paddy T 18,000 27,000 Chickpea T 13,000 22,000 Green and Black Gram T 14,000 18,000

Farm Labor days 10,304,000 17,079,000 Bullock Labor n 4,113,000 6,725,000 Seeds T 11,000 17,000 Nitrogen Fertilizer nutrient T 9,000 15,000 Phosphate n n 6,000 10,000 Potash n 3,000 5,000 Pesticides T 27,000 45,000 MAEARABU11ACOMOSITE IUIUATIOM III PROJECT

Productignand in¶.uteof 4.5 Ha~ OgdalPar

JlvakwadiFirast Betnnt /A J&a^kvadiSecond Beament/ J4AxakvwaThird 8eamcL /A Unit Present Without Yroinct Vith Proiset Prosnt Without Pro3ctL With Project, Prsepo; Withoul IrRIBIL Yith_toEg& t ------Yull Development------Full Development------ull Developmsat- --- Croppin Intanxity 1.37 1.37 1.75 1.48 1.6S 1.75 1.0S 1.06 1.75 MainProduction B&nanas T 2.25 2.25 8.61 2.25 4.50 8.59 - - 8*4# Green and blackGram T 0.22 0.03 0.65 0.22 0.41 0.65 - - 1.33 Cotton Long Staple T 0.67 0.81 1.35 0.20 0.49 1.34 0.30 0.47 Otto Cotton Short Staple T 0.04 0.08 0.77 0.27 0.36 0.77 - 0,06 1.02 Groundaut 1 0.36 0.58 1.63 (7.18 0.86 1.82 0.04 0.06 0.42 Chickpea T 0.06 0.07 0.4U 0.09 0.13 0.44 - - 0.38 Vegetablesand Others T 0.17 0.25 0.47 0.43 0850 2,00 0,31 0.37 0.64 Pearl millet T 1.U1 1.35 1.41 0.67 1,06 1.34 - 1.07 Paddy T 0.05 0.08 0.53 0.11 U.16 0.53 - - 0.53 safflover T - - 0.58 0.14 0.14 0.58 0.14 0,23 0.56 Sunflover T - - 1.16 - - 1.15l 1.15 Borghuu, Irrigated S 2.b1 2.87 8.49 2.97 1,66 8 .55 - - 8.37 Sorshus Rainfed T 1.37 1.62 1.24 1.22 2.08 1.23 2.27 2.44 1,26 lugercane T 18.90 16.by 25.31 9.45 9.45 1Y.37 6.30 9.45 19.32 Whet, Irriated T 0.67 0.81 1.26 0.63 0.76 1,20 - - 0.96 3w-Producta Strav T 12.22 13.78 17.09 10.21 11.48 16.54 5.91 6.59 15.96 OgeratiU Input Seads kg 1016 1039 1016 616 702 852 361 513 837 Nitrogen kg 156 226 372 129 186 368 27 65 349 Phosphate kg 64 113 217 43 102 216 19 27 206 Potash kg 17 35 9b 12 33 98 2 6 93 Bullock Pair day 135 164 238 143 179 236 86 100 220 Chemicals days 315 427 878 247 341 870 38 S4 b50 Labor days 281 304 485 262 331 482 144 162 468

/A Modelfor HWUP,Farmers Project andPilot Project Areas. /b Hodel for MCIPand CON Areas. I/ Model for Nov Aseasin Jayskwadi Co and. p MAkBAmRSICOMPOSITE IUIC TION III tPOJECT troductionand Innuteof 4.5 Ha HodalZara

MajalgaonFlirt Segpent MajalgaonPoet 1990 Sepent 9 Present yiebgjet Pro1cet WithPrnject Plealt Withouttroime-L Nigh ProieLb -- FullDevelopment------lull Development----- CropRintigtonsity 0.99 1.00 1.75 0.99 1.00 1.75

M&i Pr;oduc,tion Bananas T - - 8,40 - - 8,60 Greenand BlackGran T 0,40 0.48 0.68 0,40 0.48 0156 CottonLong Otople T - - 1,32 - - 2,69 Cottonshort staple T 0,47 0.72 0.98 0.47 0.72 0,74 Groundnut T 0.07 0.11 1.84 0,07 0.11 2,56 Chickpea T 0.03 0.04 0,40 0.03 0,04 0,36 Vegetablesand Others T - - 0.38 - - - Pearlmillet T 0.54 0.72 1,08 0,54 0,72 1.08 Paddy T 0.05 0.08 0.53 0.05 0.08 0.32 safflower T 0,16 0.25 0.58 0.16 0,25 0,73 sunflower T - - 1.14 - - 1.93 sorghum,Irrigated T - - 8,30 - - 6.77 Sorghum, Sainfed T 1.19 1,37 0,67 1,19 1,37 0,67 Sugarcane T 3,15 6.30 19,15 3,15 6.30 19,40 I Wheat T 0.07 0,03 0.98 0,07 0,03 1.00 S!-Products straw T 4.20 5.06 15.01 4.20 5.06 13 6d

Oneratit Innuta Seeds kg 237 375 834 237 375 826 Nitrogen kg 22 62 336 22 62 333 Phosphate kg 20 31 19b 20 31 206 Potash kg 1 9 91 0 9 100 BullockPair days 89 101 225 89 100 233 Chemicals kg 72 96 85B 72 96 933 Labor days 148 160 461 148 160 516

vt.. -90-

Table 28

Xn&ARASMRMACOMPOSITE-URIG^A!ID0 III PROJECT

Financial & Economic Prices at Farm Gcte or site (Price Base: April 1985 RsIT unless indicated otherwise)

Financial OutIuts Economic Basis

1400 sorghau (irrigated) 1570 1520 Foodgrain Conversion Factor (tCF) 1800 .orghu (rainfed) 2020 1960 PCF 1150 '-earl millet 1290 1250 PCF 1900 wheat 1900 1860 IBiD Projections (adjusted) 1600 paddy 1950 1880 1R51nProjections (adjusted) 120 atraw 96 96 Standard Conversion Factor (SCr)

4500 green & black gram 5050 4890 FCF 3750 chickpea 4210 4080 PCF

4500 groundnut (dried & shelled) 4600 4570 1USD Projections (adjusted) 4500 sunflower 4600 4570 Oilseed Conversion Factor (OCF) 4500 safflower 4600 4570 OCF

750 banana 600 600 SCF

700 vegetables 560 560 SCF

180 sugarcane 130 130 IWUDProjections (adjusted)

4000 cotton ss (seed cotton) 4070 4120 IBRD Projections (adjusted) 5270 cotton ls (seed cotton) 6930 7010 TIRD Projections (adjusted)

Farm Invuts

8.4 labor (per day) 5.6 5.6 213 Financial Price (FP) 26 bullock pair (per day) 25 25 4600 N 8350 8620 MIRD Projections (adiusted) 5300 P 6320 6320 IBRD Projections (adjusted) 3100 K 3610 3610 TRRB Projections (adjusted)

Selected Seeds

9000 pearl millet 9000 9000 3700 wheat 3900 3900 3200 paddy 3900 3900 8000 green & black gran 10000 10000 8000 chickpea 8000 8000 7000 groundnut 9200 9200 9000 sunflower 9200 9200 7000 safflower 9200 9200 1000 sugarcane cuttings 800 800 6000 cottonseed sa 4800 4800

Off-farm Innuts

equipment 0.80 PP SCF civil works (iml. CADA): main canal 0.77 FP See distribution system 0.75 FP drainage 0.79 PP Detailed field channels 0.75 PP roads 0.70 FP Cost land shaping 0.75 PP buildings 0.80 FP SCF INDIA

HKAMASliTRACOMPOSITS IRUitGATION 1-L PEIJ1CT FINAMCIALANALYSIS

Jar. Budgetsof 4.5 VA Mgodl Farm (ucerge)

JavakwadiFirst Sefretnt /&. JavakvwdiSecond Seammnt 1k JavakwadiThird SeWAmt |t Precent WithoutPraiect With Yoisect kreeuntWitbout Pr iact With Proiuct PrLsent Without Prooiect Withklsect INFI S---- Full Developse nt------Yull Developm ent - -- Full Development--- Main Production ananas 1687 1687 6460 16b7 3374 643Y - 6367 Greea and black Cras 101 121 2903 1012 1822 2906 1418 1701 2909 Cotton Long Staple 3557 4265 7113 1067 2561 7052 . 7011 Cotton Sbort Staple ISO 288 3U96 1079 1439 3108 1170 1872 3202 Goundeut 1620 2632 b248 81U 3888 8197 - 365 8196 Chickpea 236 287 1502 371 489 1687 169 253 1591 Vegetables and Otheer 120 176 333 302 592 1395 - - 268 Pearl Millet 1164 1552 1617 776 1221 1547 _ _ 1234 Paddy 86 129 861 173 259 859 - - 856 Safflower - - 2607 647 607 2605 648 1012 2606 Sunflower - - 5220 - - 5166 - - 5164 Sorghum Irrigated 3654 4019 11U52 4157 2355 119J5 - - 11725 * . SorghumLainfed 2462 2915 2233 2203 3758 2223 4082 4390 2266 Sugar 3402 34112 4557 17U1 1701 3488 1134 1701 3478 Wheat 12b2 1539 2405 1196 1436 2290 - - 1b17 BX-Products Straw 1466 16S4 2051 1225 1377 1984 710 791 1917 ToZalBenefits 21018 24671 63091 18411 26883 62927 9331 12085 60606 COSTS Seeds 2136 2280 2921 1654 2056 2770 746 983 2680 Nitrogen 716 1038 1708 592 b54 1694 124 300 1607 Phoephate 341 599 1151 229 539 1146 103 143 1092 Potaeb 53 110 306 33 102 3U5 6 18 287 BullockPair 3605 4277 6184 3720 4655 61! 2237 2601 5958 Chemicals 314 427 878 247 340 87u 38 54 851 Labor /jd 2364 2550 4071 2192 2778 4054 1211 1357 3931 TotaelCoot 9531 11281 17220 8667 11324 16YY4 4464 5546 16407 NET ON-FARM ENIEFITS 11487 13390 45871 9744 15559 45932 4866 6628 44200 |

/IL Model for MWUP,Yarmeri Project and Pilot Project Area.. /b Model for HCIP and GOHAreas. Ig. Model for New Areas ig JayakvadiCo=and. /g Mired and imputedvalue of familylabor. INDIA

MAIIANSETRACOMPOSITE IllgATION III PROJECT

FimAoNCILAXALYSIS

Farm Budaecu of 4.5 mg Hodel Ifrm (RuDees)

Halalaon FirmtSemernt NailecaonPogt 1990 Sestent Prement WithouLt ProiS it Present Wi;hout-2LP R" ------Yull Devnlopment------ull Development----- Main Production BDnans - - 6303 - - 6414 Green and Black Gram 1822 2157 3121 1822 2187 2527 Cotton Long Staple - - 6952 - - 14109 Cotton Short Staple 18M0 2880 3926 18M0 2880 2945 Groundnut 304 486 8295 304 486 11484 Chickpea 111 152 1520 101 152 1357 Vegetablesand Others - - 265 - - - Pearl millet 621 828 1237 621 828 1241 Paddy 86 130 854 86 130 517 Safflower 729 1114 2595 729 1114 3269 Sunflower - - 5116 - - 8666 SorghumIrrigated - - 11624 - - 9441 Sorghum lainfed 2138 2471 1203 213b 2471 1203 Sugar 567 1134 3448 567 1134 3484 Wheat 12b 51 1866 128 51 1881 By-Products Straw 504 608 1802 504 608 1640

IgtXl sUfics 8892 12040 60127 8892 12040 70179

COSTS Seeds 724 890 2676 724 890 2777 Nitrogen 101 286 1548 101 286 1526 Phospbate 107 167 1052 107 167 1088 Potash 3 29 282 3 29 308 Bullock Pair 2317 i620 5857 2317 2620 6050 Cbemicals 72 96 858 72 96 931 Labor /j 1244 1346 3b73 1244 1346 4332

Total Costs 4569 5436 16146 4569 5436 17012 g|

NET ON-FARM BBNEYIT8 4323 6604 43981 4323 6604 53167

/ Hiredand imputed value of familylabor. IL linedand fimputed valueof familylabor. -93- Annex 1 Table 30

INDIA

NALARASHIRACOMPOSITE IRRIGATION III PROJECT

Water Charxes. Cesses and Taxes in Maharashtra in 1985

I. Basic Water Charges (Rs/ha)

Perennials 750 Hot-season cotton 250 Hot-season groundnuts 200 Other hot-season 150 Rabi seasonals 75 Kharif seasonals 50

II. Water-related Cesses (Rs/ha) Employment Guarantee Education Local Cess Scheme Cess Cess Total

Perennials 150 25 150 325 Hot-season cotton 50 25 150 225 Hot-season groundnuts 50 25 40 115 Other hot-season 30 25 - 55 Rabi seasonals 15 25 - 40 Kharif seasonals 10 25 - 35

III. Sales Taxes Unit

Sugarcane Rs/T 16.60 Cotton Z 4 (of sale price) Oilseeds and cake Z 4 (of sale price) :k-~~~~~~~~~~-4 Annex 1 Table 31

INDIA

MAHARASHTRACOMPOSITE IRRIGATION III PROJECT

Estimated Farm Budgets & Proiect Rent at Full Development (Rs/4.5 ha Farm)

Upper-Reach Farms /a Lower-reach -FarmsNov /b Now Part ilyv Irrigated Without Surface Irrigation

Without With Without With

Gross Value of Production 27,426 63,820 12,040 60,127 On-Farm Production Cost 11,324 16,994 5,435 16,146 (IncludingLabor) Net Return Before Taxes 16,102 46,826 6,605 43,981

Water Charges 359 639 If 0 639 f Other Water Cesses 234 273 0 273 Sales Taxes 526 1,415 284 1,394

Net Return After Taxes 14,983 44,499 6,321 41,675

Return to Family Enterprise Le 1,498 4,450 632 4,168 Return to Risk-taking /d 1,317 1,596 1,204 1,503

Implicit Land Rent le 12.168 38.453 4.485 36.004

Proiect Rent /e 26.285 31.519

Proiect Rent /e (Rs/ha) 5,841 7.004

/a MCIP1 & GON model used for both NCIP1 & GON and MWUP+F+P areas. /b Majalgaon model used for all Majalgaon and Jayakwadi 68000 ha. /c 10X of net return after taxes. Id 10X of gross value of production for rainfed agriculture; 2.5% for irrigated farms, and 5% for farming with incomplete irrigation as in upper reaches of Jayakwadi at present. Ie Rent accruing to farmer. Economic rent = this amount + rent recovered by GON. See Table 35. /f Assumes present system of charges for rabi, hot season and perennials, including Rs 50 flat charge/ha CCA in kharif season. MHARASTU BA COMPOSITE IRRIGATION III PROJECT

Financial Flows for Model 1.5-ha Fals (Rupees)

A. MWP+F+P model

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Het On-Farm Income: With Project 3829 4022 4335 4824 5538 6389 7344 8426 9483 10485 11357 12009 12574 13044 13447 13773 Without Project 3829 3935 4041 4146 4252 4358 4463 4463 4463 4463 4463 4463 4463 4463 4463 4463 Increment 0 87 294 678 1286 2331 2881 3963 5020 6022 6894 7546 8111 8581 8984 9310

Incremental Water Charges: /j 0 -1 -1 -2 -2 -3 -3 -4 -4 -4 -5 -5 -5 -6 -6 -6

Incremental Sugar Taxes: 0 0 +1 -1 -3 -5 -7 -13 -18 -22 -25 -26 -27 -28 -29 -30

Incremental Cotton Taxes; short Staple 0 0 -1 -2 -4 -6 -9 -12 -16 -19 -23 -25 -27 -28 -29 -30 Long Staple 0 0 -1 -3 -6 -9 -13 -17 -22 -26 -28 -30 -32 -33 -34 -35

Incremental Oilseed Taxes: 0 -1 -5 -11 -21 -32 -46 -63 -80 -97 -111 -124 -136 -147 -156 -164

Land-levelling: -3600 in

Net Incremental Income I Before Financing -3600 +85 +287 .659 +1250 +1976 +2803 +3854 +4880 +5854 +6702 +7336 +7884 +8339 +8730 +9045 m=.... .n Nunna ... u .... e m ... n. n l...... fifi ...... S *....

NAR^D Casa/

Loan Proceeds +3600 Loan Service Payments Id 0 0 0 0 0 0 819 1479 1479 1479 1479 1479 1479 1479 1479 0 met Iocremental Income After Financina 0 +85 +287 +659 +1250 +1976 +1984 +2375 +3401 +4375 +5223 +5857 +6405 +6660 +7251 +9045 ...... m M...... = mas U.N.. ==...... Mao mamm a =... .. m ...... mm... m - ....

SLA CAse /I

Loan Proceeds +3600 Loan Service Payments /d 0 0 0 0 0 0 1079 1674 1674 1674 1674 1674 1674 1674 1674 0 Net Incremental Income 0 +85 +287 +659 +1250 +1976 +1724 +2180 +3206 +4180 +5028 +5662 +6210 +6665 +7056 +9045 After Financing m m

I& Assumespresent system of charges for rabi, hot season and perennials, including Re 50 flat charge/ha CCA in kharif season Ik 10.25Xinterest I/£ 13.81 interest /i 15-year repayment period vith interest capitalixed for 6 years and a 7th year of grace in repayment of principal. INDIA MAHAASTHRACOMPOSITB IRRIGATION III PROJECT

Financial Flows for Model 1.5-ha Farm (Rupees)

B. Maialaon - FirstSerment Model

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Net On-FarM Income: With Project 1548 1682 1866 2116 2456 2907 3394 3965 4607 5322 6113 6944 7811 8736 9626 10458 Without Project 1548 1655 1762 1870 1977 2084 2091 2098 2106 2113 2121 2128 2135 2143 2150 2157 Increment 0 27 104 296 479 823 1303 1867 2501 3209 3992 4816 5676 6593 7476 8301 Incremental Water Charges s/ 0 -9 -18 -27 -36 -46 -55 -64 -73 -82 -91 -100 -109 -118 -127 -136 Incremental Sugar Taxec: 0 0 -1 -2 -4 -7 -10 -14 -18 -23 -28 -34 -40 -46 -53 -59 lcresental CottonTaxes; Short Staple 0 0 -1 -3 -5 +8 -11 -15 -20 -26 -32 -39 -46 -54 -61 -68 Long Staple 0 0 +1 +1 41 +1 -1 -2 -3 -3 -4 -4 -5 -5 -5 -6 Incremental OilseedTaxes: 0 -1 -2 -4 -8 -14 -21 -30 -41 -52 -65 -78 -93 -107 -121 -135 Land-levelling: -3600 Net IncrementalIncome BeforeFicencins -3600 +17 +83 +261 +427 +749 +1205 .1742 +2346 .3023 +3772 +4561 +5383 +6263 +7109 +7897 .nn.w now s.. M .. an WaSs saan us... a .a.n M."a. minma USEUM... .. s. .s..a .. sa. mamma

MAURw Case /k

Loan Proceeds +3600 Loan ServicePayments /d 0 0 0 0 0 0 819 1479 1479 1479 1479 1479 1479 1479 1479 0 Net IncrementalIncome AfterPinsncing - 0 +17 +83 +261 +427 +749 +386 +263 +867 +1544 +2293 +3082 +3904 +4784 +5630 +7897 MM-. a.. =a M s..*.ss man mamma Moas ma.s. Musmm mamm *sms susna *s mas man mana

SLA Case /£.

Loan Proceeds +3600 Loan ServicePayments /d 0 0 0 0 0 0 1079 1674 1674 1674 1674 1674 1674 1674 1674 0 Net IncrementalIncome 0 +17 +83 +261 +427 +749 +126 +68 +672 +1349 +2098 +2887 +4099 +4589 +5435 +7897 After FinencInR nfl=.. Mso. son mamma "*a. San= a= s= *aanama asmoa sasn Mssaa MUSSON mamma *se. ua.a a. .. SS

/ Assumespresent system of chargesfor rabi, hot seasonand perennials,including Re 50 flat charge/haCCA in kharifseagon 10.252 interest /c 13.8S interest /I 15-yearrepayment period with interestcapitalized for 6 years and a 7th year of grace in repaymentof principal. I- ,

-97- Annes 1 Table 33 INDXA

AKARASITA leGEPoSXTE-UIGATION- III PROJECT

Estimated Progect lent and Cost Recovery /a (ls/4.5-ha farms)

Upper-leach Farms lb Loer leach Farms Now Ic Nov Partially Irriitated Without Surface Irri*ation

Incremental Gross Value Production 105,071 106,784 Incremental Production Cost (incl. labor) 1-7.180 26.066 Incremental Net Income Before Taxes 87,891 80,718 Return to Family Enterprise /d 8,789 8,072 Incremental Return to Risk-taking /e -- -798 638

Project- Rent 78,304 (100X) 72,008 (100%)

Cost Recovrerr Incremental Water Charges / 1,742 (2Z) 2,625 (4Z) Incremental Cesses 112 (O0) 685 (1%) Incremental Sales Taxes 2,841 (4%) 2,999 (4Z) Payment for Land shaping f 12.741 (16%) 12.741 (18%) Total 17-.436 (22Z) 19.050 (26Z)

Increment&i-0NII Cost 0 2,979

Cost Recovery Available to - Defray -InvestmentCosts 17,436 16,071

Investment Cost per Farm 17,040 65,900 umm

Percent of Investment Costs Recovered 102%Z 24% *

* Weighted Average-70%; if only half landshaping costs recovered-44%.

/a Incremental present values over hypothetical project life of 50 years discounted to present at 12Z. / NCIP1+GOXmodel used for both MCIP1+GOZ(and MWUP+F+Pareas. Jc Majalgaon First Segment model used for all Majalgaon and Jayakwadi 68,000 areas. /d 10% of net return to compensate management and entrepreneurship. /e 10% of gross value of production for rainfed agriculture and 2.5% for less-risky irrigated agriculture. /f Assuming following terms: interest rate 13.8%, repayment period 15 years vith interest capitalized during first 6 years and 7 years grace in principal repayment. /g Assumes present system of charges for rabi, hot season and perennials, including Rs 50 flat charge/ha CC&in kharif season. -98- Am 1 Table 34 TUIA

wAMM cCosm micmw m UtWICT

Derivatios of- comomic Prices for Esor Crone and !amt in J _iak"di-Akiallson hr.. ji 1990 (in US)

Paddy Wheat Cotton Cotton C _roomtSuarcane aitrogen posphate Potash (medim) (ahort) per metric ton loridmrket Pxice 352 159 1793 1795 522 327 59 176 104 1990 (1I$) Quality 75 100 50 54 100 95 100 100 100 Adjustment CZ) orildrket 264 159 1615 969 522 311 259 176 104 Iquiwalest , S$) Internatioal 0 0 -150 -150 67 -67 52 67 67 Sbhppiing (1S$) CIurlsI Price, 264 159 1465 819 589 244 311 244 171 Bombay CUS) xchange late (Rs/USS) 12:1 C-F|OIB Price. 3165 1905 17585 9832 7072 2928 3735 2926 2049 Bombay (am) Domestic KandlinzI 73 73 -208 -208 114 -83 73 73 73 Transportation (Rs) Processiugliutrient 66 100 35 33 68 10 46 48 60 Ratio CZ) value of 0 0 2283 b 2283 lb 0 0 a 0 -prouct (IS) ProcessingR tio 0 0 65 67 0 0 0 0 0 Ny-product (S3 Processing Cost Ci) 114 0 415 415 156 108 0 0 0 Wholesle Price 2023 1978 7151 4290 4731 176 8277 6247 3537 Raw Product is) Transport tolfr.r 73 73 218 218 135 42 -73 -73 -73 Fs ate (Rs) Faragate Price 1950 1905 6933 4072 4596 134 Ij 8350 1e 6320 l 3610 IS 1990 (K) say 1950 1900 6930 1£ 4070 Ic 4600 130 8350 6320 3610

Sorce: CIIDoidiy Price Forecasts dated July 13, 1984 Pricing Basis: Wheat: Canadian No. 1. iestern Red Spring. FOB Thunder Bay. Rice: Thai. Milled 5S Broken, FOB Bangkok. Cotton: Mexican Middling 7-3132". CIY U Europe. Groundunts: Sbelled. any origin. CIF Ebrope Maize: US 3.0 2. YelLow. YOB Gulf Ports Sugar: World. IS& Daily Price. FOb and stowed at Greater Carribean ports Nitrogen: World Market price of urea, FOB Europe. bagged Phospbate: World Market price for T.S.P. (Triple Superphoshat), FOB US Gulf Potash: World Market price of Potassium chloride FOB Vaucouvez. fA India is at the =argiu of self-sufficiency in food grains- It is assumd that, depending on the harvest., impots or exports are equally likely to occur in the sbort and edium rm. Therefore, international transport Costs bwe been amtted. India is a net exporter of cotton and *as and a net importer of veetable oils and fertilizer. Nabarashtra is a net importer of food grains and a net exporter of oilseeds and cotton. fk Value of Cotton sed ex-ginnerY for mu£facture into oil and cake or for cleaning. trea&tNt and storage for subsequent "e as seed. I/ Sed cotton Id Cane Ij Per Nutrient ton IIIIIIN3m1itiI

imim imam Is i,w ,ei a 3 9 im 134 am i I99 1. .NIl ml3 33 NIl Nil 3 14M NI,1 M"9119 nil nil9 Nil His ol Nil Nil Il nI il 34 119 41 Nil 31133N*39-3

m ~~ ~~aa9 a a * 9 I 9 I

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a at.,,~at egat tntint teems ~am Maa Mae.. an.. cM,... tcn ee.ett a..,, Ma.,. etcat a., Uttet,State, ceeteeat..,.,.tetM Mt,. eases.teect em, ceteni4t,tnt tent..teelo"...WOM t e... tt fleet,,m.n.n e-etae..t.,...

NIIE1I ID III IN Ill IN I~ ~~~~A I ~~~A WMALconI INU MI IPA IV I A I I A I I I I I I I I I S I I S I1 I I A I A A A A I I I I I I S ne~~~a at .e Wa a. at..~~~~~-at att a a use esct -n,-.M. tmt em, as as e..a .. ,,ees5weeetie-- ,t att a.,tte at .i.t .s,...... e net,,. ne.,tteteett £w1ism=& bfin IRI 1 43 Wii I N ld111 o 34 Ni ANI "Illal Oi MlN ISO3 So44 WIl in3 1 1 43W VI11111 S Ni a4 4N43il O lin 4444 49

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con1 N P 14 a a 34 3 36 34 34

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M4IV he to -teP Mane at% at -tt at1 t.e9 ate mls WaI at Maa ati to tta at ait ai ali, ata eat.e nil eM, atO Mtot nea Mtn all at M sup Wt eM a ne etsoNi AMs, at " up Ni'95W~~~~~~~~~~~~~~~~~- eoo.ooe.ooef - feel~ sn ooeeo4,ee". e,elo0qepee 444 " oee O O -- ofI O ooMI oe.- M wo'. -100-

Annex 2 Page1 INDIA

NARARUSETRACOMPOSITE IRRIGATION I*1PROJECT

Specially Developed Distributaries

Introduction

1. In the Jayakwadi Command, irrigation water use is low and farmers face difficulties in getting water. To remedy this situation a 4,000 ha Pilot Project was taken up under MCIP 1I to find ways of improving the water delivery system to each field. The Pilot Project has served its purpose; in its area water can reliably reach the fields. Based largely on findings in the Pilot Project area, the Irrigation Department has brought out an OVD manual, album of drawings and other design documents.

2. The cost of Pilot Project was, however, high and another project, named Farmers' Project, with more restrictive cost norms, was taken up in 1980. This project was also successful. Since the water could now reach each farm, irrigation utilization increased from around 25% to 80Z in Pilot Project and to 65% in Farmers- Project. In these projects, the emphasis was on system improvement: little attention was paid to agricultural production in the command.

3. Proposed Solution. As the next stage in solving the problem of lou water utiization, it is proposed to designate four distributaries, two under PLBC, one under PRBC and one under MRBC, as Specially Developed Dis- tributaries (SDDs). Four nearby distributaries will be used as controls for comparison of agricultural production and yields.

4. The SDDs and the control distributarieswill be brought to the same standard of engineering improvement as contemplated in the MCIP I and MCIP III (vide Appendix 1). For works below the outlet, the standard proposed is that laid down for the AMUP. These are the basic prerequisites for comparing the performance of control distributariesand the SDDs. In addition to the above, the following special efforts would be made in the SDD distributaries but not in the control distributaries to increase irrigation water use and total agriculturalproduction from the area.

(a) Irrigation Extension Services:

Farmers' Training which will cover irrigation techniques: bow and when to irrigate, and how much to irrigate.

(b) Azricultural Extension Services

The normal T&V extension advice on cultural practices, but with more CADAparticipation than at present -101- Annex 2 Page 2

Advice on crop sequences, cropping patterns and farm planning, not at present part of the T & V programme;

Organizing and activating farmers' organizations; Maintenance of field channels and field drains by the farmers; Water distribution by the farmers- organization in a minor and in an outlet co;mand.

(d) Supply of-Necessary Inputs

Credit Seeds Fertilizers Pesticides

(e) Adaptive Research

Cf) Marketing

'g) Monitoring and Evaluation

'h) Ortanizational Pattern

(i) Facilities for the ManaRement-Staff. Visitors and Experts

(i) Financial Implications

5. The following four pairs of distributarieshave been selected on which to implement, and to use as a check comparison:

Reference or Special Development Control Distributarv Distributary

P.L.B.C. D-17 D-14 Area 1038 ha 1094 ha Pilot Project Farmers' Project

D-49 D-47 2824 ha 3575 ha MCIP I Old MCIP I Old Standard Standard

P.R.B.C. D-26 D-33 1687 ha 2620 ha MCIP I Part Non-World Bank Non-World Bank and MCIP III MCIP III

N.R.B.C. D-4 D-3 5508 ha 4,000 ha MCIP III MCIP III -102- Annex 2 Page 3

Irrization Extension Services

6. Changing from dry land to irrigated farming requires changes in cultural practices. There is a general feeling amongst cultivators that more water gives higher yields. The cultivators need to be trained in irrigation techniques such as borders, ridge-and-furrow,and basins. Also, they have to be educated how, when, and how much to irrigate. The work can be done by the agricultural extension organization.

Agricultural Develoument and Extension

7. To pay for the irrigation infrastructure and its upkeep, the ultimate cropping intensity must be around 175%. With the available water for irrigation, and maximum utilization of monsoon rains, this would be approximately as follows:

Kharif: 94% 11 Rabi: 62Z Hot season: 13% Perennial 6%

This high intensity, especially in the kharif, can only be achieved with improved cultural practices, and with readily available supplementary kharif irrigation, should there be insufficient rain or too great an interval between effective rainstorms. Further, the right sequences and faming systems that fit agronomic norms and do not create intolerable labour peaks must be developed. These objectives can only be achieved if properly qualified, experienced experts work on the problems and disseminate their findings through a motivated, properly organized extension service.

8. The responsibility for agricultural extension, now operating under the Bank-supported Maharashtra Agricultural Extension Project (Cr. 1135-IN) has been removed from CADAand is now managed by the Joint Director of Agriculture in Aurangabad and the PAOs of the six districts which span the area. There is a strong case for re-establishingmuch closer links with CADA through separate agricultural extension units (districts) for the command area. Such an organization,which would be able to concentrate single-mindedlyon the problems of irrigated agriculture,would be in an excellent position to popularize, and demonstrate on a large scale, the findings of the specialist team envisaged in para 7 above.

9. There would also be a case for having suitable equipment available, on a demonstration scale, to lend to farmers in the SDDs. These should be mainly animal-drawn but some tractor-mountedspecialized equipment would also be justified.

Farmers' Involvement

10. Farmers' Organization have been formed at outlet and minor level in all CADA-operated scheme areas. Few of these are actively participating in the maintenance of field channels and field drains. Yet, the purpose of

11 Including long-staple cotton, some of which would be planted in the hot season and some would finish in the rabi. -103- Annex 2 Page 4 farmers- organization is to maintain field channels and field drains, resolve water disputes, and handle water distribution. These organizations are developing, though it will take time for then to become fully effective. Efforts made to activate them are:

(a) training of outlet comnittee Chairmen and members;

(b) assigning each outlet to a Canal Inspector and Junior Engineer;

(d) organizing meetings of outlet and minor committees; and

(e) routing difficulties through outlet committees and minor committees.

It is proposed to have applications for water allocation for sugarcane and other perennials processed through Minor Committees.

II. Help of a sociologist to assist with the establishment of the committees is necessary.

Marketing and Credit

12. The commercial infrastructure,consisting of both cooperative and private shops, for distributing and selling agricultural inputs in the project area is well established and its growth keeps pace with the expansion of the irrigation system. Inputs are available in good time. Once established, farmers are capable of financing purchase of the inputs they need. However, at the time of converting from extensive, rainfed farming to more intensive, irrigated farming, farmers can intensify more rapidly their use of purchased inputs-principally fertilizers and seeds-if they could finance that expansion with credit.

13. Cultivators sometimes experience difficulty getting credit, mostly because they have defaulted on earlier loans. Moreover, often the loan is inadequate, because banks set loan amounts by the task and the amounts are frequently not commensurate with actual costs (Appendix 2). Credit for long-term investments, such as landshaping, is critical to the very operation of the project and is to be addressed under the project for all participating farmers. Except for those within the four SDDs, farmers would be expected to finance their own incremental costs for additional farm inputs from their own earnings or by recourse to existing short-term credit facilities.

14. As one facet of the SDD program to accelerate the attainment of full development, farmers in the SDDs would be assisted by CADA specialists to:

(a) help acquaint farmers with sources of borrowing where appropriate;

(b) assist them to coutact banks and complete documentation requirements; and

This interventionwould significantly improve access to short-term credit to finance production inputs. Standard nredit terms would apply for SDD cultivators. However, as a financial protection to CADA, and in return for its vouching for SDD borrowers, debts would be guaranteed by cultivators' irrigated land and any arrears that were not promptly }aid to cooperatives or commercial banks would be collected along with land revenue.

15. Output marketing in the project area is adequately handled by the existing system of regulated markets and by private and cooperaLive buyers, which is expanding in concert with the expansion of irrigation facilities. The seasonal nature of farming lead to seasonal fluctuations in farm-gate prices because it is the buyers who bear the cost of storage and the risks of price fluctuation. On the whole, the seasonal fluctuation in farm-gate prices is consistent with these risks and might be considered high only in the case of sorghum, where the market is exceptionally thin relative to production and groundnuts, where merchants discount the product when insuffi- ciently dried.

16. To further the SDD's objective of rapid attainment of full development, CADA would encourage cooperative societies to construct and operate a small number of additional godowns in the four SDDs using their own resources. It is expected that these facilities and their appropriate operation would lessen seasonal fluctuations. This would improve incentives to farmers and speed the transition to more intensive, irrigated agriculture.

Adaptive Research

17. To bridge the gap between possible and actual production levels on farm, adaptive research on a large area is essential to resolve difficulties and to get expert advice on difficulties not previously encountered.

Monitoring and Evaluation

18. The impact of intensive efforts made and changes in crop pattern, sequences and yield levels must be continuously collected and monitored. Evaluation of the results, and the technologies used, needs to be done. Data on crop yields will be collected by canal inspectors and by agricultural extension staff by crop cutting experiments. Analysis of the data will be done by the CADA.

OrganizationalPattern

19. To implement the SDD program, one subdivision per 1000 ha, with 4 Junior Engineers and 4 Canal Inspectors for irrigation and implementing engineering works, will be required. The agricultural extension staff needs to be augmented bv one graduated agriculturist, in addition to the normal VEW cadre.

Financial Implications

20. The financial implicationsof this SDD program are briefly summarized below for a 5-year time slice: -105- Annex 2 Page 6

-ofwhich: Total Investment Recurrent

Irrigation Extension 210/ha - 210 Agricultural Extension 850/ha 700 150 Farmers Involvement 125/ha - 125 Adaptive Research 250/ha - 210 MN-nitoring and Evaluation a! 210/ha - 210 Farm Roads 420/ha 420 - Maintenance 340/ha - 340 2365Jha 1120 1245 a! Starts in Year Two of program for each distributary. -106-

Annex 2 Appendix 1

INDIA

MAH&RASHTRACOMPOSITE- MRIGATION III PROJECT

Ensineerins Standards for SDDs

As a prerequisite, the conveyance system will have been improved/ executed to MCIP I standards. These standards are:

(a) Full lining down to one cusec for distributaries/mianors/sub-minors;

(b) Field channels and field drains with requisite structures, as per the latest standards and as indicated in the OFD Manual;

(d) IOOZ land levelling to presently specified standards;

(e) Provision of farm roads and crossings to ensure approach to any farm;

(f) Providing link drains and improving main drains for effective drainage.

Works are being executed to these standards already, except for farm roads. Land levelling is still voluntary and requires owners' consent. These four items will be attended to in the first two years. -107-

Annex 2 Appyendix2 Page I

INDIA

MAHARASHTRACOMPOSITE IRRIGATION III PROJECT

Note on Providing of Crop Finance to Cultivators in the Command Area

of Special Development Distributaries

Preamble:

1. The existing procedure for approving crop loans and disbursement to the cultivator is to prepare a credit statement by the cooperative societies and get it sanctioned by the District Central Cooperative Banks. The scale of finance is decided by the Technical Group according to certain guidelines. The Technical Group. It is they who decide the cropwise scale of finance. In most cases, the scale of finance is inadequate as it is based on the creditworthinessof the borrower and not on cost of the operation.

2. The Bank does not permit disbursement of one loan unless the previous loan is repaid. In view of this policy, it is difficult for farmers to get loans for double cropping.

3. Kharif and rabi loans are recoverable by 31st March and 31st May respectively, every year. At the expiry of these dates, the loan becomes overdue and is liable for recovery by coercive methods as per provisions of section 101 of the Maharashtra Cooperative Societies Act of 1960. Simul- taneously, the borrower is declared defaulter and is nut eligible for fresh finance till he repays the overdues.

Present Status of Farmers Credit Rating in Respect of Short-Term Loans:

4. The position of preparation, sanction of N.C. Statements and disbursement of crop loan for the last 4 years are as follows: -108-

Annex 2 Appendix 2 Page 2

N.C. Statements Sanctioned No. of No. of No. of Area Amount in Year Societies Khatedars Members in ha lakhs of Re

1980-81 140 34,535 27,944 77,279 395.78 1981-82 140 34,535 28,411 81,229 423.90 -1982-83 140 43,308 34,078 76,134 719.21 1983-84 140 43,308 34,078 77,134 721.00

Disbursement of Crop Loan Percentage of No. of Area Amount Disbursement Recovery Year Members in ha Rs. lakhs. to Sanction Percentage

1980-81 13057 21201 47.07 11.89 37Z 1981-82 6234 18965 105.50 24.88 55Z 1982-83 9931 16969 165.53 23.01 64X 1983-84 8852 11326 175.83 24.38 N.A.

6. It would be possible to optimize the production in the comnud area by introducing the following:

(a) to have CADA Cooperative Officers help acquaint farmers with borrowing possibilities both through their cooperative banks and through the lead commercial banks for the area;

(b) to have CDA. Agricultural and Irzigation Extension officers and Cooperative Officers assist farmers in contacting banks and in completing requisite documentation;

(c) to have CADA, on approval of its Deputy Registrar of Cooperative Societies, vouch for SDD cultivatorswho apply for credit; and

(d) to have CADA Cooperative Officers under the CADA Deputy Registrar of Cooperatives, jointly with the Chairman and Experts Committee of the District Central Cooperative Bank and CADA Extension Officers, review credit norms per crop and per other loan purpose, as well as prescribed repayment periods, with a view to making these norms more consistent with farmers actual costs and financing needs.

7. As a starting point for the review described in para 6 (d) above, it is recommended that the following norms for short-term, crop loans be used as a basis for discussion. -109-

Annex 2 Appendix 2 Page 3

Proposed Annual Short-Term Proposed Crop-Finance Credit Norm Irrigated Credit Norm Crops Per Hectare Croppins Pattern Per Hectare- (Rs/ha) (Z) (Rs/ha)

1) Sugarcane Nil 7 Nil 2) Banana Nil 1 Nil

1) Paddy 1500 5 75.00 2) Kharif Seasonal Crops 1100 20 220.00 3) L.S. Cotton 3400 10 340.00 4) Rabi Seasonals 1250 47 587.50 5) Hot Weather 2450 10 245.00

1467.50

It is proposed that no finance be given directly for sugarcane so as to introduce a disincentive for that crop. -110- Annex 3 Page 1

INDIA

MAHARASHTRA CONPOSITE iRRIGATION III PROJECT

Landshapin2

Introduction

1. The need for even irrigationwater distribution within the field is self-evident,not only to achieve an acceptable degree of water utilization, but also to minimize water losses out of the crop root zone, and thereby avoid water table buildup and consequent drainage problems. Even water distribution can be assisted by a number of land preparation techniques; however, all these presuppose a field that is neither undulating nor too steep. Therefore, given the rolling topography of the project area, a degree of land forming is essential on all but a small portion of the project area.

2. Before irrigation was introduced, the cultural practices adopted enabled reasonably efficient rainfed farming without landshaping. Tradition and experience determined which field was most suited for early or late kharif planting and there was enough land available not to till difficult patches. The only need was for bunding to control erosion. However, experience with the MCIP I project has shown that once irrigationwas introduced, landshaping could no longer be postponed: without it, irrigation benefits, even when water could reliably reach farnmers'fields as in the Pilot and Farmers' Projects, were severely restricted in unshaped fields. Also, it was found that once irrigation water was available, farmers were reluctant to leave their lands unplanted, ready for landshaping and forego a crop, even if that crop yielded far less than had it been grown on properly shaped land. This reluctance to withdraw land from cultivation, even tem- porarily, effectively restricts landshaping to the hot season. If, however, it could be started before irrigation is available, about half the area would be free between about November and May.

3. A considerable amount of landshapinghas been done already during the last several years, and the rate of work can be increased if enough financing can be provided and farmers convinced to participate in the program. The standard adopted, 0.6Z longitudinal and 0.2% cross slope, is satisfactory;however, it is necessary to relate border length and width to soil type and stream size.

Implementing Landshaping

4. Organization. Within each outlet command all land must eventually be shaped in a manner that enables irrigation and drainage of each field without interfering, or damaging, adjoining fields. Therefore, as soon as possible, a master plan for each outlet would be prepared, which would mark cut and fill in each field as well as the location of field channels and field drains. Given existing farm boundaries, this may not be a straightforward task but it is, nevertheless, essential to carry it out, and the sooner the Annex 3 Page 2 better. Moreover, farmers should be persuaded that if necessary, their field boundaries must be changed--something to which insufficient attention has been paid in the past and negativeattitude may developin the future. As an eventual objective,farmers should adjsst farm boundaries,by mutualconsent with their neighbors, to achieve a really efficient irrigation-and what may well, in the long run, be more important -- drainage (and passage) layout. Adjustmentof farm boundariescould also significantlyreduce tillagecosts, by increasing the output and efficiencyof animal and tractor-drawnequipment by making fieldslonger. However,as an immediateobjective, no effort shouldbe made to changefarm boundaries,except in the SDDs,unless absolutelyessential to implementa workablefield irrigationand drainage plan. 5. To supportthese efforts,CADA would have to organizethe necessary surveysand mapping. They must also be equippedto do the cut and fill calculationsfor any farmerwhose fieldswould be shaped in the near future: these calculationsmust be preceededby a visit which would determinepermis- sible cut and fill in relationto the depth of soil in the particularfield. As a rough guide,at least 15 and preferably20 cm of soil must remainon the underlyingmurrun layer if severeearly yield reductionsare to be avoided. Implementation

6. Actual implementationwould be in threedifferent ways: (a) by farmerson theirown, using their own resourcesand initiative;(b) by farmers,using their own resourcesbut seekingtechnical advice on field layout,cut and fill; and (c) organizedby the MaharashtraLand Development Corporation(MLDC), an organizationset up for the purposeand implemented by CADA. More than 80% of the landshapingwill be taken up in this manner.

7. MLDCs operation. MDC may use one or more of the followingmethods:

(a) Manual labor,under the EmploymentGuarantee Scheme, (EGS)as at present;

(b) Mechanicalequipment - usuallysmall (80-100HP) bulldozers,also as at present; (c) Engage farmerswith their oxen or farm tractorsand contractthe job to them, under CADA supervision. Under (c), and indeedto assistfarmers who wish to do the work, it would be necessaryfor CADA to have availablemetal scraperboardsand rear-mounted bladesfor use by the farmers'oxen or tractors. If the work is on contract to MDC, these attachmentswould be availablefree; if the farmerswork on their own farm, there would be a nominal charge for their hire. 8. Under the project,financing needs would increaseconsiderably, because the expected much higher annual rate of landshaping (about 30,000 ha per annum, againstthe currentlyachieved highest rate of 15,000ha and more usual 7-10,000 ha). It is expected that the greater involvement of farmers and the additional50 bulldozerswith which ID's fleet for the projectarea Do-; ~ ~ ~ ~ ~ ~ ~ ~ lz

Annex 3 Page 3 would be augmented, would enable this rate to be increased. Additional financial support for the necessary loans is expected to be of the order of about Rs 360 x partly financed by the project. GOMwould arrange for this sum to be available through WlDC to the needy farmers. Recoveries of loans given to the farmers to shape their lands are to be collected by the Revenue Department, as arrears of land revenue.

Justif:cation

9. Landshaping is justified on the following grounds:

(a) In an undulating topography such as in Jayakwadi/Majalgaon,field efficiency can be increased from below 60% up to 75Z (25Z increase in water saving).

(b) The uniform and more gentle soil slopes prevent erosion and distribute equally the water to the plants; uniform plant growth may increase yields under the Deccan soils conditions by 15-30%.

Cc) Uniform moderate soil slopes combined with appropriate drainage take care of excess water during the heavy kbarif rains, reducing substantially long-tern waterlogging of the plants, with all its negative consequences. This may increase yields by up to 20Z.

Thus a total yield increase of some 75%-90Z can be expected with proper landshaping.

10. The investment in landshaping is relatively small--around 1OZ of the total investment in irrigation in typical large scale projects in Maharashtra. Combined with appropriate drainage it may reach around 15Z-20% of the investment (Rs 4,0001ha). However, the incremental benefits stemming from higher yields compounded with the added amount of water in the system (saved by the higher efficiency) more than compensate for the extra costs.

11. Landshaping, however, is not a simple process and should be approached with care. Soil survey, detailed topographic survey, careful determination of permissible cut and fill, and meticulous supervision should accompany any large scale program of landshaping, like the one proposed under the project.

12. Additional technical aspects of landshaping are dealth with in Annex 4. Annex 4 Page 1

INDIA MA'RRASTRACOMPOSITETIRTGAIION III PROJECT

Technical Supuort for Azrictltural Develqouet

1. This Annex describes the probleims in earlier projects in Mahnrashtra where irrigation was introduced into an established, successful rainfed faxming system under which cultural practices problens of the black cotton soils bave been resolved. multidisciplinary task force vould bring relevant experience from other similar areas where the problems have been resolved. Its function would be to adapt, test and popularize these practices,* increase cropping intensities to us-e the available irrigation water and extend the growing of high-value crops. The task force would work, during project implementation, mostly in the SDDs but would eventually become senior advisers to the entire Jayakwadilliajalgaon cozmmand. The Problem

2. The traditional farming system iu Nabarashtra on soils similar to those of the project area is to plant the crops towards the end of the kharif season, when the profile below about 6-8 cm is wet but the top dry enough to permit access. The seeds planted are normally sustained by light end-of-season showers that allow them to develop their roots to tap the wet profile, therebyensuring a satisfactory crop. Under irrigation, however, such a croppinkg system is not practicable for the following reasons:

(i this late khariflearly rabi crop implies an early kharif fallow, and cannot be followed by hot-season crop;

(ii) crop selection for climatic reasons is limited to sorghum and safflower;

(iii) increments achieved by supplementary irrigation are not high enough to warrant investment in a irrigation system. 3. The success and full benefits9 of the project is contingent on achiev- ing a high percentage of double cropping,* good yields and an increased area of crops that give a high per ha return. Double cropping can only be practised after a kbarif crop: the second crop must be harvested not later than May, otherwise early monsoon rains would spoil it. This means planting not later than early February, something that can only be done after a kharif crop. Therefore, the prime agronomic objective of the project must be to: Ci maximize kharif cropping, thereby enabling as mach double cropping as the -1.14-

Annex 4 Page 2 available irrigation water and the farmer's skill and enterprise permits, and (ii) introduce remunerative crops in all seasons. This, as past experience suggest, is unlikely to occur on a extensive scale, and at a sufficiently rapid rate, unless cultural practices are modified_

4. The area of the kharif crops possible to plant is constrained by the length of time available for final seedbed preparation and planting before the increasingly frequent and heavy rainstorms make it impossible to enter the field. Moreover, the choice of kharif crops is limited to those that can thrive under the conditions created by the heavy rains, given present cultural practices. The coarse grains (sorghum, pearl millet) and, to a lesser extent short-stapled cotton, are such crops; summer pulses are more sensi- tive; medium and long-stapled cotton, groundnuts and sunflowers, only yield really well in years when the rainstorms are light, but still frequent enough to sustain the crop; - the kharif of 1984, notwithstanding the low total rainfall, was one such season.

5. In practice, given the currently practised way of preparing fields, similar problems occur under irrigation in the rabi and hot seasons. This is due to the orientation and slope of the field, which often leads to accumulation of irrigation water at the lover end. A further problem is the erosion within irrigation units caused by the water stream entering them, which relates to the slope within the unit. These factors militate against Maximiing yields and also limit the choice of crops. To sum up, present cultural practices and field layout

(a) limit kharif cropping intensities, yields and crop range;

(b) limit ir-igated yields and, albeit to a lesser extent than above, crop selection.

Discussion

6. Kharif croppin. High kharif cropping intensities on black cotton soils are achieved in other countries, e.g. the Sudan, by the use of high-speed mechanized equipment. Wide polydisks, fitted with seed boxes, operating at relatively shallow depth, pulled by 60-80 HP tractors, covering 2-2.5 ha/br, work round the clock to plant crops that can best tolerate the increasingly adverse conditions as the rains intensify. The area that can be so planted depends on the speed of the tractors, the organization and repair services to back them up and the annually varying pattern of rainfall.

7. This system has the following disadvantages vwich make its adoption, even in a modified form, unlikely and possibly even undesirable in the project area: -115

Annex 4 Page 3

(a) It demands large farms and long fields. The former is not the case and the latter impossible, given the need of permanent field channels and field bands, and the fact that irrigated double cropping requires these permanent features.

(b) Crop selection is still limited to sorghum, pearl millet and similar crops that cannot give a high per hectare return;

Field IrriRation Practices

8. In Mabarashtra, a great deal of thought and enterprise, on the farmners' part, has gone into developing effective field irrigation systems.

(a) Zi&-zaM furrows: used universally for sugarcane, bananas and other high-value crops. This is an efficient system but sustainable only with high-value crops, because, except for basic land preparation, it precludes the use of draft animals, thereby making after-cultivations very expensive.

(b) Level basiLns if made on sloping land (i.e. most of the project area) are either small and therefore inefficient for animal traction or imply much earthuoving. This is expensive and, on the shallower soils, enases yield reductions in the -cut." areas that take a long time to recover.

(c) Border strips which at present are advocated by CADA. Undoub- tedly this will be the right solution when design details of the length and width of the borders are exactly related to the size of the water stream and the clay content of the soils. The slopes recommended by CAD: 0.6% longitudinal and 0.2X cross slope have been shown as correct.

Proposed Action

9. Kharif croE=g1 . In broad principle, the solution to the problems of khArif cropping are well known: ICRISAT and other research organizations have worked on it. The principle is to Irepare the land, preferably before the rains, in a manner tha.t ensures the drainage of the root zone and thereby enable access for planting and weeding, but also to avoid overdraining. Under these conditions groundnuts, medium and long-staple cotton and sunflowers can be grown, and coarse grain yields considerably #creased. The problem is the very high cost of the appropriate implement;V its high power requirement (4 and possibly even 6 oxen) also a problem, although less

lJ See Study by the National Institute of Agricultural Engineering (UK) 1984 (Robert Fieldson). - B ,~~~~~~~~~-116-

Annex 4 Page 4 serious, given the established tradition in the Deccan of sharing draft animals.

10. Irrigation Layout. Here the task is to codify and refine the required slopes, border vidth and length according to soil types and the water stream. While simple to define, this is likely to be a lengthy task, involving much mechanical analysis of soils and many field trials. The Proposed Task Force

11. The problems associated with the raising of cropping intensities, and the popularizing of remunerative crops will have to be resolved by an integratedtean, working closely together. It would consist of the follcwing disciplines:

(a) Atronomic Support. An agriculturist well versed with the problems of crop husbandry under conditions of, or similar to, the Deccan Plateau. With the assistance of a agricultural economist he would identify unconventional, remunerative crops that can be successfully grown and develop farming systems including these crops.

hb)Agricultural Enaineerinf. Implements will have to be devised, prototypes fabricated and tested, and work on land preparation and border length and width pursued. It is not unlikely tuat this would involve two separate individuals. (c) ftricultural cum FarmnaM Systems Economist for the determination of the costs and benefits of the new implements, cultural and irrigation practices that would be developed by the agronomist and the agricultural engineer(s) and for the farming systems work (b); this may well involve a certain amount of market and marketing research. (d) Irrigation Specialist well experienced with management and operation of irrigation systems between distributaries and farmers' fields, to recommend and implement layout and operation and to develop farmer-controlled, operated and managed water allocation and field system maintenance norms and organizations and water distribution schedules for each season. He may well need assistance from a sociologist to develop the methodology that would ensure a rapid change of farmer attitude from rainfed to irrigated farming.

Job descriptions and a proposed organizational setup are given in Appendix 1. 11. The Venue would be the Specially Developed Distributaries; the backup work would be carried out in Parbhani University, whose agricultural engineering workshop would do the necessary prototype fabrication. The CADA Administrator and such of his staff as he thinks appropriate would have to be closely involved with the work programme, its implementation by the team and dissemination of the results. -117- Appendix Page 1

INDIA

MAHARASHTRACOMPOSITE TRRTGATION III PROJECT

Technical Support for AUricultural Development

Job Description and Work Organization

Introduction

1. The principal function of the technical support team is to resolve difficulties of introducing high cropping intensities and securing acceptable yields in the project. To do so they have to review cropping systems currently practised under irrigation, and to identify the components of one that makes better use of an environment improved by an irrigation system that delivers water predictably and reliably to the farmers- field.. Such a famr- ing system can only be developed by close and continuous iteration between the team me the agriculturist has to resolve agronomic problems of crops identified by the economist as readily marketable and sufficiently remunerative; the agricultural engineer must develop fieLd layouts and cultural practices for each crop that would enable farmers to attain the desired yield; the agriculturist and economist must integrate the crops into a pattern that is sustainable with the amount and timing of irrigation water available to the farmer yet does not create intolerable labor peaks; the irrigation expert must develop a system of operation, management, maintenance and water allocation within the chak that enables the farmers actually to implement, and benefit fully from the work of the other disciplines.

Functions

2. In the light of the foregoing, the principal function of the team would be for each member, in close coordination with his colleagues, to contribute to developing all aspects of a farming system that optimizes the farmers' use of his land and water resources; optimizes return on public investments in the system, and ensures its safe and continuous operation and maintenance below the chak.

Duties of the Team Members

3. Each team member will, in addition to contributing to the overall function of the team, perform other duties within his own discipline. Thus, in aggregate, the individual members' duties would include, but not be confined to, the following:

4. Agricultural Engineer

(a) working with the agriculturist and the economist, review present land preparation practices for the commonly grown crops under irrigated conditions and quantify them in technical, economic and agronomic terms; -118-

AlDendix Page 2

(b) assistedand advisedby the agriculturist,identify the shortcomings of presentcultural practices; (c) devise animal-drawn implements that would prepare the land in a suitableway for the crops to be grown, which would cost substan- tiallythe same as the ones they would replace; (d) working with irrigation engineers, refine landshaping criteria and recommended border length and width according to the mechanical analysisof the soil and the water stream entering the field. 5. ftriculturist

(a) workingwith the agriculturalengineer, review presentland preparation practices for the commonly grown crops under irrigation; (b) assist the agricultural engineer to identify the shortcomings of present practices;

fc) evaluate the quality of land preparation done by the implements designed or modified by the agricultural engineer and assess their likelyinfluence on yields; Cd) based on the findings of the agricultural economist as to which new, or not commonly grown, crop is likely to be beneficial to farmers, and in consultation with crop botanists at Parbhani, identify likely crops for inclusionin the croppingpattern, and developand test suitable package of practices for them; (e) working with the economist, develop a number of alternative farming systems, tailored to farmer skills, investment capacity and agronomic potential of typical farms; the systems will have to fit to the expected irrigation regime. (f) identify the best farmers who are willing to try new ideas and share their experiences and use them as vehicles for promoting new ideas, new crops not tried yet, implements and innotivative packages of agricultural practices. 6. Farmizm Svstems-cum-Agricultural Economist:

(a) determine the value of implements devisedby the agricultural engineerto the farmer in terms of their work output and qualityand as alternative investments to traditional implements; (b) examinethe market possibilitiesfor crops at presentnot grown in the area on a large scale and identifyconstraints, if any, to their expansion;

(c) assist the agriculturist to develop new farming systems to suit typical, widespread conditions by farm budget and cash flow analysis; .. ~~~~~~~~~~~~-1.19-

"Apendix Page 3

(d) organize, conduct and evaluate the results of surveys designed to record progress in the SDD's compared to similar areas that do not receive the same concentrated attention. 7. Irriiation Expert:

(a) taking into consideration the chak's water requirements, and working within the time frame of water availabilitiesin the distributaries and minors,as determinedby the overalloperating schedule, develop chak irrigationplans;

(b) in repeated dialogues and interactionwith the farmers, develop an organizational pattern for fine tuning and implementing this system in the chaks;

Cc) initiate the establishment of suitable organizations for the maintenance of field channels and structures, these to be farmercontrol- led; and induce the concerned farmers to play increasing role in the O&Mof their systems, to their advantage. oualifications:

8. ftriculturalEngineer:

(a) A degree in agriculturalengineering and adequateexperience with implementdesign and improvement,with a strongbias for work on soils similarto those in Maharashtra. He shouldbe familiarwith workshopand metal fabricationpractices, and be able to prepare engineeringdrawings from which prototypes can be made. He must have a background of metallurgy,to specifythe metals to be used in differentparts of the implements.

(b) Sufficientfield irrigationexperience to relateborder width, length and stream size to mechanicalsoil analysisdata, and test and developa formulafor border specificationsfor differentsoil types. Note: It may well be necessaryto engage two individuals, as one person may not be adequatelyqualified in both branchesof agriculturalengineering.

9. Africulturi&st. A degree in agriculturewith adequate practical experience in crop husbandry and farm planning. le must be familiar with all the major crops grown on the Deccan and have had extensiveexperience on black cottonsoils. 10. ParmingSvstogs-cegwn-ricultural Economist. A degree in agricultural econonmics and adequaterelevant working experience of fanm and projectplan- ning and budgeting, farm and farm management surveys and market research. -120-

Anpendix Page 4

11. IrrigationExRert. Suitablequalifications for irrigationengineer- ing, relevantexperience of managingsecondary and tertiarysystems (distributaries,minors and sub-minors)and proven experiencein water scheduling, and in organizingfarmers to operatewater distributionsystems. The OperatingPlan

12. The project'sneed would be met by a full-timeagricultural engineer and agriculturist;the economistand the irrigationexpert would be required for six months in the year. If it is necessaryto engagetwo agricultural engineers,the one dealingwith field irrigationwould not be fully occupied; he could be usefullyassigned part-time duties within CADA which would increase his "feel" for project problems. The leader of the team should preferably be the agricultural engineer but, if more suitable, it could be the agriculturist. The leader'sadditional duties (as team leader)would be to ensure complete interaction and coordination of work with relevant authorities in Parbhani University. The team would be probably headquartered in Aurangabad, to ensure close coordination with the CADAAdministrator and his Deputy Directorof Agriculture. However,they would spend not less than half their time in the field,working principally, -- initiallyentirely, - in the SDDs. They would be supportedby one full-timegraduate agriculturist assignedto each SDD. 13. It seems possiblethat scientistswith the appropriatebackground and trainingcannot be found in Maharashtrafor all the requireddisciplines. If that be so, the ones not fully qualified or with insufficient relevant experience would have to be supportedby consultants;the consultantswould have the same functions, duties and qualificationsas the scientists they support. About two man-months consultancy per annum wouia be required to support the economist and irrigation expert; the consultant agricultural engineer and agriculturist, if required, would pay three visits a year to the project, each lasting for one month; the agricultural engineer somewhat longerthan a month, while the agriculturistmay not need more. The total maXimum expectedman-months for consultant'ssupport would be about 50 for the durationof the project. 14. The necessarybudgetary provisions within the projectassume that the supportingconsultants will be expatriates;if not, costs would be lower. -121-

Annex 5 Page 1

DNDIA

MAHARASHTRACOMPOSITE IRRIGATION PROJECT III

RESETTLEMENTOF PROJECT AFFECTED PERSONS

This Annex consists of two parts. Part I, prepared by the Government of Naharashtra (GOM), outlines their policies vis-a-vis persons whose livelihood and lifestyle will be affected by an irrigation project under which land will be submerged. It also contains a detailed description of actions taken and contemplated in case of the Majalgaon reservoir site. Part II describes the findings of Bank missions, analyses responses by GOM to specific questions raised, and outlines steps to be taken to continue observ- ing and monitoring the economic progress of the project-affectedpersons, to enable remedial measures to be taken as soon as the need becomes manifest.

PART I - Submission by the Government of Maharashtra

A. The Resettlement Process - General

1. Compensation and Rehabilitation. In Irrigation Projects, where culturable land and villages get submerged it becomes necessary to acquire lands and villages on a large scale aed to arrange rehabilitation of the villagers, the Project Affected Persons (PAP). The procedure consists of following three operations:

Ca) Land Compensation. (b) Compensation for Structures. 5c) Rehabilitation of the Project Affected Persons.

2. Payment of Land Compensation. The survey of India prepares a nap from aerial photographs of the submergence area with contours at 2.5 m intervals. With village maps superimposed thereon, approximate area under submergence is worked out. To get details of the exact area that will be submerged (for initiating land acquisition proposals), the full reservoir level contour line is established by double levelling. For lands required for quarries, dam site, housing colonies, etc., demarcation is done by the Irrigation Department (ID). Proposals for acquisition of land are prepared by the ID and reviewed by the Special Land Acquisition Officer (SLAO). After carrying out joint measurements by the District Inspector of Land Records and representative of ID to finalize the land titles, the Land Acquisition Officer finalize the documents as per provision of the land Acquisitioi Act of 1976 (para 17). Payment of land is then made out of project funds. -122- Annex 5 Page 2

3. In case the land is required to be acquired urgently while crops are standing in the fields, crop compensation is also given. If the payment of land compensation is delayed, rental charges are paid from the date of pos- session of land to actual date of payment. Compensationfor fruit trees is made separately.

4. Payment of CompensationTowards Structures. Individual structures are grouped into representative categoriesaccording to standard of construction. Type estimates for each category of structure are prepared at the schedule of rates prevailing at the time of initiating the proposals, to determine the rates per unit of plinth area for each category. Whenever a particular structure does not fall under any category, a special estimate is framed. Proposals of compensationfor structures is a function of the plinth area of each structure and its category. Depreciation since construction date is taken into account. After joint measurements with the District Inspector of Land Records and the ID, the proposals are reviewed by the SLAO who, after making payment of compensation arranges to acquire the structures.

5. Rehabilitation. To streamline and coordinate the interrelated activities, Government has established in 1965 an independent directorate for handling rehabilitation. The main objective of this Directorate is to provide "land for land" and "house for house" for a PAP. This Directorate is headed by the Director (DepartmentalSecretary's level) who is assisted at district level by a Deputy Director for Land and one for Development. The District Collector is the Deputy Director of Resettlement for Lands and the Chief Executive Officer of the Zilla Parishad (District Council) is the Deputy Director of Resettlement for Development. The Collector is assisted by SLAOs and RehabilitationOfficers. The Chief Executive Officer is assisted by engineering staff for providing civic amenities to the resettled villages.

6. The Scheme of Resettlement initiated in 1965 has undergone considerable changes in the past few years. Initially a person was said to be 'project affected' if his land and house was acquired for an irrigation project. By now, however, the following are also treated as PAPs.

(a) Persons having less than one hectare of residual cultivable land.

(b) Persons whose residual land is divided into fragments which are thereby rendered difficult for cultivation.

7. The procedure involved in the work of rehabilitationis as follows:

(a) Collection of data about affected persons from all villages.

(b) Selection of sites for new villages.

(d) Distribution of plots.

(e) Provision of civic amenities in the new village, i.e. open vells, boreholes, school, public meeting grounds, internal roads, approach roads.

(f) Distribution of loans in cash or in kind.

(g) Procurement of building materials for constructionof houses in the resettled villages.

(h) Distribution of alternative lands for cultivators.

Ci) Shifting of the affected persons, including their personal belongings and salvageable building material.

Items (a) to td) and (f) to (h) are attended to by the Collector in his capacity as Deputy Director of Resettlement (Lands). All items under (e) are attended to by the Chief Executive Officer of the Zilla Parishad in his capacity as Deputy Director of Resettlement (Development). Funds required for rehabilitation come from project x:unds.

8. Collection of Data for Affected Persons. Statistical data of all the affected persons from each village are collected, tabulated and class- ified in the following categories, to determine the scope of further rehabilitation activities.

Ca) Persons who lose all their land and houses and who need resettlement.

Cb) Persons who lose a major part of their land and their houses and who need resettlement.

Cc) Persons losing all their land, but houses are not affected and who need resettlement.

(d) Persons losing part of their land, but houses are not affected and who need resettlement.

(e) Persons having no land and houses but who live in villages as farm laborers and need resettlement.

(f) Persons who do not stay in the affected village, but whose lands are being cultivated with the help of farm labor or on contract basis.

(g) Persons who lose land and houses but who do not need any assistance from Government and who intend to settle at places of their choice. -124- Annex 5 Page 4

(h) Persons who lose lands and houses and who intend to settle in other villages where they procure private lands for cultivation and who need help and assistance from Government for their rehabilitation.

9. Once data are collected and tabulated it becomes possible to form a clear picture of (a) number of persons who are to be resettled in a new village and (b) number of persons who are to be resettled by way of extension of existing villages.

Selection of Site for a New Village

10. The Village Site. It is desirab'e that the new village sites are selected in consultationwith villagers. However, alternative sites should be selected in advance, keeping in view (a) availability of drinking water, (b) facility to construct an approach road, (c) good foundations for building construction,(d) hygienic condition, (e) distance from the remainiag lands for cultivation.

11. Jnce a site is selected, acquisition proceedings are started by the Deputy Director of Resettlement (Lands). Plan of the land under acquisition is supplied to the Town Planning Department and a suitable layout is prepared. The layout is marked on the site and plots are allocated. Cost of land for the new site is a charge on the project. Separate areas are reserved for threshing ground, cremation or burial grounds, schools with playgrounds, public meeting places, parks, religious places, bus stand, market place and pasture for cattle.

12. Civic Amenities. After the Deputy Director of Resettlement (Lands) completes the work of acquisition of new village site and plots are demar- cated, the Chief Executive Officer, Deputy Director of Resettlement (Develop- ment) arranges for drinking water wells and bores, sites for schools, public meeting grounds, internal roads, approach roads; for electricity and indi%idual or regional piped water supply schemes if water supply from open well or bore wells is inadequate. These works must be completed well before the old village sites and lands are flooded.

13. Distributionof Replacement Farm Lands. Previously agricultural land was granted to the PAPs from unallocated Government lands, forests and land alienated under the Land Ceiling Act. Since 1973 the PAPs are given lands which become surplus due to land ceiling act in the zone benefited by the project and other suitable Government land, in accordance with the scale laid down by GOM. The Rehabilitation Officer is required to ascertain requirement and availabilityof suitable agricultural land in the command area and has to acquire it for distribution to the affected persons. Costs are recovered in suitable installments.

14. Loans for Housink. The affected persons get loans for construction of their new houses. Generally, a housing loan amounts to Rs 5,000 to affected persons if they are farmers and Rs 2,000 if landless. These sums -125- Annex 5 Page 5 are accordingto the "Housingand Loan Scheme"of the Directorateof Reset- tlement.

15. MovinaAffected Persons. The RehabilitationOfficer arranges and prrvidestransport to enablethe affectedpersons to move their belongings. 16. Concessionto ProjectAffected Persons. The Governmenthas granted the followingconcessions to the PAPs. They may: (1) take useful constructionmaterials from their acquiredhouses in the old villagessites withoutany reductionin the amount of compensation; (2) remove,free of cost, quarrymaterials like stones,murrum, etc. from Governmentwaste lands; (3) cultivatetheir acquiredlands till those are actuallysubmerged;

(4) they are allowedfree of cost transportfor removalof their personalkits;

(5) they are suppliedcement, roofing sheets required for construction of their housesat controlledprices, subject to availability,through project authorities; (6) preferenceis given to PAPs and their dependentsfor employment in Government service. The upper age limit is relaxedby three years in the cases of PAPs whose houses are submergedor who lose 75% of their land under Project. In case of Class III and Class IV posts (n.b.non-clerical) one person per family of th-i PAP is given priorityof employmentwithout reference to an employmentexchange; and

(7) accordingto the recommendat:.onsof the committeeappninted by GOM in connectionwith the MaharashtraResettlement of Pr.,jectAffected PersonsAct, 1976, additionalresettlement subsidies, on a sliding scale,are also sanctionedfor certaincategories of .dndholders.

17. RehabilitationAdvisory Committee. The MaharashtraResettlement of ProjectDisplaced Persons Act, 1976 which came into force on March 11, 1977, RehabilitationAdvisory Committees have been appointed to several projects in the State. To deal with PAPs whose propertyfalls in more than one district, the Chairman of the Committee is the Conmissioner of the Division; the Col- lector, Chief Engineer, Project Engineer (SE level), concerned NP, MIA, and Chairmen of Panchayat Samitis (Parish Council) are the members. For PAPs whose propertyis in one district,the Chairman of the Committee is the DistrictCollector, the ProjectEngineer (SE level)concerned MP, MLAs, and Chairmanof PanchayatSamitis are the members. The DistrictResettlement Officeris the member secretary. Meetingsare held once in threemonths. -126- Annex 5 Page 6

B. Rehabilitation Procedures for the Najalzaon Reservoir Site

i8. Selectinz new villate sites. Chincraan. Deokheda and Dhorgaon villages are near to dam site; Nandnr, Renapuri. Brab.agaon, Shelapuri, Punandgaon and Mhunapur are Within 5 km of the dam. Since more than 75Z land from these villages, except Dhorgaon, will be submerged by the reservoir and most of the cultivators had small landholdings, they desired to resettle near Hajalgaon town (a taluka headquarters) which has market, medical and education facilities. Dhorgaon has been moved to a safe place near the old village. The population of eight more villages of about 3,500 people vanted to settle near each other, within 2 km of Najalgaon town, probably because of the expected future development of the town and its surrounding area, better prospects for developing a business, and better employment opportunities due to irrigation development. The sugar factory near Manur (4 km), the Agricul- ture College and its operational pilot sch-ee, housing societies, extension of market facilities and processing industries in the industrial area proposed by the HabArashtra Industrial Development Corporation were added inducements.

19. Nangrool, *adiwadgaon and Iaul villages are large and have their lAnds along major streams that join the Sindhpana and the Godavari rivers; their inhabitants have decided to settle in groups at other convenient places. For some, their remaining land was the attraction; for others, acquisition of future settlement.

Proposed Name of Villafe At to merge with Population

Mangrool 4 Places Sawargaon Jadid Jawala 2,400 Bhatwadagaon Kesapuri

Kadivadgaon 3 Places Kadivadgaon Bhatwadgaon 1,200 Bhatwadgaon

Laul 2 Places Laul 3,200 Deogaon

Sawargaon village, which now has a population of 1650, has resettled on the main Beed-Najalgaon Road. Displaced persons from Ekdara, Telegaon Ihalwat Nimgaon, Deogaou chose to resettle on higher ground above the submergence level. The villagers of Phulepimpalgaon moved to Jadid Jawala. Pungni and Kaudgaon, which vill not be flooded for a while yet, have not yet decided where to move. -127- Annex 5 Page 7

20. Distribution of building plots for all the thirteen villages under the first phase and three villages under the second phase of resettlement bas been cmnpleted. Allotment of plots for the remaining four villages was in progress in 1984.

21. Provision of Civic Amenities in the New Villates. The layout of the new villages is prepared by the Town Planning Department, shoving internal roads, approach roads, school buildings, market sites, dispensaries and parks. Public buildings are constructed by the Zilla Parishad of Beed district.

22. Any village with a population of more than one thousand receives piped water. Villages with less than thousand people are provided with open wells or boreholes. Each village has school buildings, meeting ground and a market place. All village sites are connected to district roads with approach roads wherever necessary, and have an internal road network. The new Zilla Parishad, in consultation with the District of Collector, replaces submerged religious structures.

23. All new village sites will have electricity; 13 were connected in 1984, work was progressing on the rest.

24. Free transport is provided by the Irrigation Department for conveyance of dismantled materials, household articles and fmily members for shifting to new villages. So far there is no specific demand from the displaced persons for allotting lands in the command area. This may be because land is readily available in the vicinity of the settlement sites selected by the villagers.

PART II - Overview and Recommendations

25. Overview. The PAPs will suffer two kinds of material loss for which they must be compensated: loss of home, and loss of land. While, clearly, most will sufferboth losses,the distinctionneeds, nevertheless,to be made.

(a) PAPs losingtheir homes are locatedin 20 villages and number about 18,500, including women and children, and not 10,500, as reportedin paras 18-24 (1981cenaus data). However, their physical relocation is correctly described.

(b) PAPs losing land on the river floodplain. Their numbers have not been reported, only the area, which is divided as follows: the 20 villagesflooded 6,877 ha government land 200 ha from 14 villagesnot flooded 609 ha 7,686 ha -128- Annex 5 Page 8

Of this area about 1,900 ha will be exposed, due to reservoir drawdown, between December and June and can, therefore, be cropped in the hot season.

Compensation has been paid to the extent of Rs 39.8 x by March 1985; this sun paid for 3,371 ha. GON stated (April 1985) that they propose to pay the balance in the 1985-86 financial year.

26. Bank missions visiting the resettled villages and the area where the PAPs now live had the impression that there appeared to be Lo undue resent- ment at having to evacuate homes and abandoning farmland. Dwellings, and house sites, are superior in the new villages; the provision of standpipes is recognized to ensure a readily available, safe water supply in place of shallow wells dug in the riverbed which was their previous source of water; churches, temples and mosques are either completed or undr construction; schooling facilities are better and more convenient than in the old scattered villages; and employment opportunities, directly or indirectly attributable to ECIP III project works, have increased considerably. Further, a very definite cottage industry base is being established, largely because the merging of several villages has created a more compact, accessible market for the products.

27. GOa have repeatedly stated that the "land for land" policy (Part I, Para 5) is, overwhelmingly, not acceptable to the PAPs. The reasons given were that they lost easily workable, fertile, well-vatered land on the river floodplains which can not be replaced with land of similar quality. Rather than accept land of very different quality and characteristics,be it of the same total market value as the one lost because of the larger area offered, they requested cash payment. Many moved to differert areas where they had family and other connections. Uplands owned by the villagers, similar in nature to parcels offered in exchange of the floodplains, were either retained or voluntarily sold. Results of a survey submitted by GOX indicate that eventually, 95Z purchased land of their choice, nearby or in other locations; 2Z abandoned farming and went into trade or business; 3Z comple- mented moneys received for their dwellings and built better houses. Appendix I shows answers to supplementary questions posed, furth2r to amplify Part I, B.

28. Recommendation. Under the project, CADA's existing Monitoring and Evaluation Unit would be strengthened. This unit, supported by outside expertise, either from the socio-econonicfaculty of Parbhani University or by other, independent sociologist consultants, would be in a strong position to monitor the economic and social progress of PAPs who settled in the new villages and of those vho did not have to resettle but lost farmland. Fol- low-up on PAPs who moved into other areas would be more difficult, but per- haps also less important: they are likely to be the more enterprisinggroup and therefore potentially the more successful one. Monitoring would be carried out through extensive surveys, conducted by the Monitoring and Evaluation Unit to ascertain how the moneys paid in compensation for land have in fact spent and how the socio-economicposition of PAPs who opted for cash compensation is developing. :~: -. -

-129-

Annex 6 Page 1

Selective List of Documents Used

1. ATnnal Report, 1982-83. Bombay: National Bank for Agricultural and Rural Development, 1983.

2. Annual Plan 1984-85; Maharashtra State. Government of Maharashtra (GON), Planning Department. 2 Vols.

3. Epitome of Agriculture in NabArashtra, 1983-84. GON, Planning Department, 2 vols.

4. History and Practice of Management of Irrigation Waters in ah-arashtra by P.R. Gandhi. Water and Land Management Institute, Maharashtra, India, June 1981.

5. Performance Budget, Irrigation Department. GOK, Planning Department, 1983-84, 1984-85.

6. Y-aharashtraAct No. XMVIII of 1976 (The Maharashtra Irrigation Act, 1976). GON, Lay and Judiciary Department, 1977.

7. Detailed Project Report - MCIP III (Maharashtra Composite Irrigation Project III). Project Preparation Cell, GOM, Irrigation Department, March 1982.

8. INDIA: Brief Note on Jayakvadi II Cum, Maharashtra Irrigation Project III. Chief Engineer (SP) Aurangabad, GON, Irrigation Department, May 14, 1984.

9. Detailed Project Report - Vol. II - MCIP III (Naharashtra Composite Irrigation Project III). (MajalgaonProject and Jayakvadi Component). Project Preparation Cell, Pune (Maharashtra), GOK, Irrigation Department, June 1984.

10. Detailed Project Report - NCIP III - (Maharashtra Composite Irrigation Project III: Jayakwadi and Majalgaon Project). Project Preparation Cell, Pune (Maharashtra),GON, Irrigation Department, October 1984.

11. Compliance of Remarks on Aide Memoire DT. 19.5.84. GON, Irrigation Department, Project Preparation Cell, Pune (Maharashtra),August 1984.

12. Maharashtra Composite Irrigation I Project (Cr. 736-IN). SAR

13. Project Completion Report. India: Miharashtra Corposite Irrigation Project I (IDA Credit 736), ovviiV_cer 1984. -1.30-

Annex 6 Page 2

14. Naharashtra Composite Irrigation II Project (Cr. 954-IN). SAR, September 1979

15. Maharashtra Water Utilization Project (Cr.1383/Ln.2308-in). SAR, Nay,, 1983

16. Evaluation Studies of Mula Irrigation Project, Naharashtra April 1984. Water and Land Man-agement Institute, Anrangabad, Nabaras'htra, India.

17. First Aunnul Report (Iharif and Rabi 1982-83). Kukadi-41ula CommiandArea Development Project, Abengr( aahra) (ICIP II).

18. The Socio-Economic Survey of JTayakwadi and Purma Coismuad Area (Mahrashtra). Paxrbhani: Narathwada Agricultural University, Department of Agricultural Economics and Statistics, 1981.

19. Typical Cross Section of Majalgaozn Right Bank Canal. Jayakwadi Project Stage :I - Najalgaon Right Rank Canal, Office of the Chief Engineer (SP) Irrigation Department, Aurangabad, February 1982.

20. Interim Report by the Panel of Experts on Canal Systems of World Bank-Aided Project. DesignL Procedures for Canal Structures, GOM, June 1983.

21. Circulars Issued on Technical Matters by Irrigation and Power Department During the Years 1958-1963 Pertaining to Canals. GCK, Irrigation Deatment.

22. Design Approach and Procedure for Masonry Dans, Earth Dams, Gates, Outlets, and Canal Structures. Central Designs Organization, GaK, Irrigation Department, 1981.

23. A Note on Design of Distribution System Under Najalgaon Right BRank Canal. Chief Engineer (SP), Irrigation Department. Aanbd,GOM, Irrigation Department, October 1983.

24. 'A Note on Reuirements for Maintenance and Repairs Grants for Jayakwadi Project" Anrangabad: CoummandArea Development Authority for Jayakwadi Project, 1984, 7 pp.

2.5. Note on Creation and Functioning of New Division - Jayakwadi Water UtilizationProject Division No. 1. Officeof the ExecutiveEngineer, CoumandArea DevelopmentAuthority, Auraugabad, GOK, IrrigationDepartment, September1984.

26. ImportantAdinistrative Government Orders on Irrigation Management. GON, Irrigation Department, Chief Engineer (SP), Irrigation Department Anrangangad, August 1978. ~~~~~~~~~~~-1-

Annex 6 Page 3

27. Seven Years Irrigation Programme. GON, Irrigation Department, Superintending Engineer and Director, Irrigation Research and Development Pune.

28. Co-Operative Rotational Water Supply System. Superintending Engineer & Director, Irrigation Research and Development Pume, August 1982.

29. Majalgaon Project Flood Studies 1981. (Jayakvadi Project Stage II). GON, Irrigation Department, Majalgaon Project Circle, Beed.

30. Majalgaon Masonry Dam. Bore Results of Geological Data. Majalgaon Project Divn., Kesapuri Camp.

31. Important Circulars and Instructions Issued During 1982. Command Area Development Authority for Jayakvadi project Aurangabad.

32. Guidelines for Survey, Design and Planning of Distributaries and Minors Under the NWu0. August 1984.

33. Canal Water Distribution System Cooperative Society, Samarth Bhogeshwar Cooperative Society, Bhogaon, Taluka: Ambad, District. Jadna. Cobmand Area Development Authority, Aurangabad. July 1984.

34. Involvement of Farmers in the Design and Execution of On Farm Development Works. Command Area Development Authority, Aurangabad, August 1983.

35. A Note on hti-aProject, Visit of MCIP III Preappraisal. Mission September 1984. Irrigation Department, Government of Habarashtra.

36. Album of Dravings for Minors and OPD Works. Command Area Development Authority, GON, Irrigation Department, January 1983.

37. Drainage, Volume I, Chapter III, First Draft. S.L. Varudkar, N.V. Sahasrabudhe, December1983.

38. Manual of Design for On Farm Development Works. GON, Irrigation Department, Navember 1982.

39. National Workshop in Scheduling of Irrigation Noy. 12-13, 1983. Water and TLnd Management Institute, Aurangabad, Maharashtra India, November 1983.

40. Annual Report (1981-82). All India Co-ordinated Project for Research on Water Management, Mahatma Phule Agricultural Unversity.

41. Annual Report (1982-83). All India Co-ordinated Project for Research on Water Management, Mahatma Phule Agricultural University. -132-

Annex 6 Page 4

42. Crop Water Requiremeut Calculations for Project File. (Prepared by A. Seager) January 1985.

43. Sorghum Production Technology, Sorghum Research Station, Marathvada Agricultural University, Parbhani (Maharashtra State).

44. Information Papers on 10th Workshop of Co-ordinated Project for Research on Water Management. Mahatma Phule Agricultural University, Rahuri, 413 722, Sept. 10-14, 1984.

45. Research Highlights (1970-81), Co-ordinated Project for Research on Water Management (sponsored by ICAR), Mahatma Phule Agricultural Unversity, May 1982.

46. Roles of Legumes in Nitrogen Economy of Crops. MaHbatmaPhule Agricultural University, May 1982.

47. Note on Formation of High Level Committee for Specially Developed Distributaries. GOn, Irrigation Department, September 1984.

48. Regional Schedule of Rates 1983-84. Aurangabad Region. Government of Maharashtra, Irrigation Department.

49. Jayakwadi Project Stage II (Part II). Revised Estimate of (1) Paithan Right Bank Canal (2) Majalgaon I - Headvorks (3) Majalgaon Right Bank Canal. Government of MahArashtra, Irrigation Department, February 1985. 50. Summaryand detailedcost tablesfor MaharashtraComposite Irrigation III Project (negotiations'version), February 28, 1985. 51. Economiccost tablesand economicanalysis for MaharashtraComposite IrrigationIII-Project (negotiations' version), March 4, 1985.

52. Checklistfor use by Dam SafetyDirectorate, Government of Maharashtra.

53. With-projectcropping patterns proposed by GOM.

54. The Resettlementof MajalgaonProject, Government of Maharashtra. -133-

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