NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT rrfJrrr^rrf ^^^r^frT^, =^- 600 034. TAMIL NADU REGIONAL OFFICE, CHENNAI - 600 034. i^f^T 3TS5r^^ ^rrr F^i^r: %^ 15 Evaluation Study Series No. : Chennai 15 2003 RURAL ROADS IN TAMIL NADU i f^Ri]d 1%^ t jiFfK 3TmR^ ^f^ tew i^ t
Evaluation Study on Rural Roads Financed under RIDF in Dindlgul District
n$^ ffq" 3fk jniftw tew iNp NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
diHdHI4;^^l^«bW!d'M, %^ - 600 034. t TAMIL NADU REGIONAL OFFICE. CHENNAI - 600 034. i^jr^jchH ai^zpR ^^IcTT ^EJ^^r : %^ 15 Evaluation Study Series No. : Chennal 15 2003 1^
i FOREWORD
The role of infrastructure in economic development is well acknowledged. Basic infrastructure tike roads, bridges, irrigation structures, etc. contribute enormously for tiie devebpment of the rural econorny. Like any o^ sector, irifrastnicture development is essential f)r promotion of agriculture also. As majority of the population in India depend on Afficulturefor their livelihood and they are concentrated in rural areas, the need for strengthening the basic infrastructure in rural area was felt right from our independence. However, till recently investments in these irifrastructure werefimded mainly from budgetary sources. A chcmge in this outlook came in 1995-96 by the setting up of Rural Infrastructure Development Fund in NABARD mth a view to extend finance to infrastructure projects using the frmd from banking sector. As on 31 March 2003, loans to the tune ofRs.29,475 crore were sanctioned to the State Governments, local bodies, etc. for investments in sectors like roads, bridges, minor irrigation projects, power stations, fishing jetties, schools, health centres, etc.
In Tamil Nadu, operation under RIDF started from Tranche II in 1996-97 onwards and as on 31 March 2003, more than Rs. 1,893 crore has been sanctioned and Rs.l300 crore disbursed. Since major share (more than 60 %) of the ban sanetioned in Tamil Nadu was for investments in rural roads, it was thought appropriate to launch an evaluation of the same to estimate the impact.
* Accordingly, a study was conducted in Dindiffil district, Tamil Nadu, which reveal that works have been executed as per stipulated norms. Positive impact was realized by almost all the * sections of the society on account oftlK new/ improved connectivity, mcjor beneficiaries being the farming community, vehicle operators, shop owners etc. More importantly, capital formation in agriculture, which is an area of concern today, showed improvement in the benefited area. However, poor offtake of complementary investmeriis and bw levels of activities by service sectors in the benefited area remains a matter ofconeem. Further, so far, negligjbk maintenance works have been undertaken in the roads leading to the deterioration of the quality of the investment. The study recommends according priority for rural roads under RIDF, comprehensive approach while selecting investments for area development, specific: budgetary albcationfor maintenance of works, imposing user charge to cover the maintenance cost of the road by involving NGOs, extension of activities by service departments like health, education, agriculture, horticulture, animal husbandry, etc. as also banks in the benefited area, measures to reduce time lag at
I. department level, etc.forfiirther improving implementation of works under RIDF. It is hoped that this report will provide valuable feedback about implementation aspect of^ project and helpfid b the policy makers, State Governments and other agencies in improving the i implementation of such works as also in framing theirfriture policies.
Chennai C.R.Patnaik 8 December 2003 Chief General Manager yicittjapT anMcf) f^cfjRT % ^ ^ anefTTgcr ^^fcHTc^fTcfj 3iic|;^Aichdi3ft '^ "gf^ cf^r gokn^ T^\m^ Tfzfj % I jji4|ui srafczjcRSTT % Rcbm ^ smm^ >H>!-cnicHcb ^fci^ntf vi^ ^H^, gcT, tott ^ ^ 3nf^ -^IHMd: ^ "^ fcfcfjRT ^ ci||L|cb ^^iq % >H^|i|ch t I SF^ 5t^ c}?t ?R? fr ^[TSfNTjcT ^^^I^HIcH* ^gtesft % ^ cl^t aTFRlfcpcTT c^
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3fT?T7 % f^ I^ f^qt^ % MR-I^IVJUI ^ chmi-c|iH qgT ^ ^TRRI ^ H^c^Ljuj r^tetfcfj cf8J7 cblilJ-^AJH % cFJI^ ^ ^tcTR 3RT l,'Cjp^4i cfjf Sftpft ITT^t -^^ % f^Wt^W cf cfirat ^ >HyHR ^ >H6l^dl W 08 R^*«l^ 2003 CREDIT LIST f^^t^ ^ ^HT 3Jk 3)PdH ?iT JISFT 35^^ J^eview and Finalisation of the Report Department of Economic Analysis and Research, NABARD, Mumbai 400 051 HPtaf^ Guidance ^•3tR.M Field Visits and Collection of Data G. Gopakumaran Nair, AGM jpj. asteosmfoT, wr.sr.^. N. Kothandapani, Asst. Manager Analysis of Data & Drafting of Report G. Gopakumaran Nair, AGM Acknowledgments The National Bank, Regional Office, Chennai gratefully acknowledges the assistance rendered by Chief Engineer at Chennai, Divisional Engineer at Madurai and Sub Divisional Engineer at Kodaikanal of Rural Roads Wing of Highways Department, Govemement of Tamil Nadu. National Bank also acknowledges the cooperation extended by the Samples covered under the study 111 CONTENTS Page No jiragjSH Foreword i flur ^ stk 3imR Credit List & Acknowledgments Hi ^RrtTHT Abbreviations v tbiifnici* i\\i.\>i\ Executive Summary vii 5€ZRT Chapter 1. MRtiii Introduction 1 2. 35S9zr3?tTqgrffr Objective and Methodology 5 3. ^qcr 3ik foicrtr gflnc^ Sample and District Characteristics 11 4. MRilloiHi (Wi'xjiJH Project Implementation 15 5. ft^^cJPicT Cost of the Investment 23 6. ftt?T ^ 3nf5fg5r Economics of the Investment 27 7. 3i5nf?JOT ?tm / jrfflg Intangible Benefits/Impacts 44 8. snRfgjoqarBTthiT Economic Viability 56 9. ^TRm. ft^ 3fk IV ABBREVIATIONS ADE Assistant Divisional Engineer BT Black Top CD Cross Drainage CE Chief Engineer DE Divisional Engineer DDM District Development Manager ERR Economic Rate of Return GLC Ground Level Credit GO Government Order GOI Government of India GOTN Government of Tamil Nadu JE Junior Engineer Kg. Kilogram KM Kilo Metre M. Metre MSL Mean Sea Level NABARD National Bank for Agriculture and Rural Development NFS Non Farm Sector NGO Non Government Organisation NPW Net Present Worth OPS Other Priority Sector PC Premix Carpet PU Panchayat Union PWD Public Works Department RBI Reserve Bank of India RCC Reinforced Cement Concrete RIDF Rural Infrastructure Development Fund RO Regional Office RR Rural Road SE Superintendent Engineer SHG Self Help Group VOC Vehicle Operating Cost WBM Water Bound Macadam BASIC DATA Project Rural Roads •> Area Kodaikanal Taluk in Dindigul district Period of Loan Tranche n ( 1996-97) Reference year of the Study : January to December 2002 - Period of field visits 20 January 2003 to 01 February 2003 (Rs. lakh) No. Particulars 1 Villagers interviewed during the study (Nos.) 120 2 Works covered under the study (Nos.) 7 3 Estimated/sanctioned cost of investment (historical price) 560.8 4 Actual cost of investment (historical price) 463.7 5 Actual cost of investment (reference year price) 513.3 6 Actual economic price of the investment (reference year price) 484.5 7 Loan from RIDF 417.3 8 Contribution from Government of Tamil Nadu 46.38 9 Length of road constructed (KM) 19.90 10 Total length of bridges constructed (M) 36.60 11 Agricultural area benefited with the road (Ac.) 5,960 • 12 Increase in cropping intensity (%) 2.60 13 Reduction in annual cost of cultivation (Rs./Ac) 194 A 14 Reduction in marketing cost per year (Rs./Ac) 1,523 15 Net benefit from change in cropping pattern per year (Rs./Ac) 324 16 Gross incremental income from farm sector 121.6 17 Net income earned by shop owners 1.92 18 Reduction in VOC by vehicle operators 8.78 19 Net income earned by new vehicle operators 7.31 20 Net income loss by horse operators 7.39 21 Income loss to the jeep operators 0.47 22 Gross benefit from investment in road 130.0 23 Annual cost of maintenance and relying of road 19.96 24 Interest payment to the loan for the cost of investment 55.65 . 25 Net incremental income 54.40 26 Financial Rate of Return (%) 19.90 VI chlJMIdch ^?!R oHIctJdH 3vRT SIT. ?^ f^wfoT 3514 g>r ^n^ ^ 3TR3n^5h?qj ^ >j^IcTr II ^ StcfifcT ^RCJT fgj^TT 2TT. stzRH % stcnfcT 3n^ girt ?^ f^nqfur gjRj 4 (j) mtot ^ ^^cf era; 8.60 fgj.'?f.(6 PIHIUI gjRj) 3tk (ii) ^g5cr ^ TTCT^^ rrai ^ - I I fcu.Tft. •?T?gj asr STSZRH ^^ TRTT 2TT. jTKf^ srra^t udjfpid gj^ h fcro 120 jn^ ^TTJ^ ^ WJ^ W^ srezR?^ % 3t^ gjt ^ 35^ ^ 3raRT 1w Tu f. ^ ^ srf^ii^id: ^j^gj, tf^ T^I^. m^tgjit ^ ^gjcT era? gsr ^r?^ Pi^iui gjitf 1996-97 # ^ter TRTT SJT sfk 1993-99 # ^ ^3Tr 2JT J^f^ ^gScT ^ LildH^igT m \^HW\ W^ 1998-99 ^3IFnTfci3?n7MSJT3ik 2000#^^3TT. f^TRfoT gjR? ^ gicT ^ ^TRTT 7^1% ^ ^?I^ ^ ^?l^ 3.75 OT. dt 3^ ^-^ gJT qJT^^R 5.25 OT. ^ 6.00 U^.c^J 2JT. ?^ l^rrfw ^ 35^ iJHI^ci ##rrT ^ f^ TTZTT sn, foRT^ #cT gsrf^TT ^ s^^g^lfOT ^feT 3tk 3m ^^ jfrfrra^ ^. ^?T§g5t gJT f^TRfuT gjRf^Ft^^^ncT, 3^3T1^^ dlwRj* >l>y^>yic| % fcH? yfl^TjiRch^?!q^ Ljtiiild ij^Pi<4HgjTEixwidRdftowj\m. ^f^,3T^era;^^rf^jf qr a^rf ^>id>(^lc| fqrifDT gjRif q^ fgsjrr 5TT ^[?T t. ^^ ilfdcjod JT^^tf^t. ^T?a; f^TRfuT a;Rf ^ ^ yj^^lPld CTRRT ^.564.80 cTT^ 55t, rrfcR ^ Tf grIcT % g;HT^ f^rrrfur g;i4 ^ diwfd* CIFTCT si^en^ g^^r 3T2ifcT ?>. 463.77 CIRI #. f^ ftt^ ^ 3j^ ofmi^ ^ ^ ^. ^^m mm ^JIMMM CTFTCT 3lk iiidiiiid t^{^ # ^ Ft^, •?FW ^T fdMUH ^ g;RtJT 3cqT^ ^ #qcT # ^. q;?IcT q^ ^ MRCIC^H ^ ^ 3TRT # ^, ^-^ ^ ^dJl^ilf ^ 3TRI ^ ^ ^, LlR^JIdH cTPTcft # sracT, snf^ ^. crm g;r ^11^* ^ifer ^.56.21 cms jrfcT g^f sirar TM #. Qri'dA ^T?ajf qr ^ gic% srracff cTFTcT ^nfrirr ^ t. ilfdMsd ^ STlfsfe S^ fTTcT 35^ # ^ ^ ^^^ P^ ^ cTPTcT ^ ^W ^ STlfsfe #RcT 3ik ^(fZT MRclcin ^ ^im ^fPTTzfrfafcT fen 7M 3tk ^ ^?t^ ^^ ^t^TcT tR" ^.484.58 cIRI #^ t. ZIF ^ ^mfTT TRTT t % ^T?a5 ^ <^>(^lc| ^ diwlddj STracff cTFIcT ^.0.41 cTi^ jrfrr fcp.i^r. # ST ^ ^ 3tk z\^ c^qr ^ RciRjJi/QrldJ 3R m^ ^ SfhlcT cTFTcT JTo^ 5 gif ^^ ?).3 cTRI jrfcT fe^Rt. Ftrjt. foRRT ^?T?g; STctft FlclcT # T]Nt. jipfN ^?T5aj % crmrf^ STTT ^ fcnz JTM cii>wfd* "^raicr CTW a^r ^?T?g; f^TRfur Vll ^ WIS ^Fcr g^ ^ ?).65.9i cn^ 3(m w^ %. ^ g^ ^ sntr ^^snftcf 3m ^ UTO^tJT ^?T?^ -^ ft^ g^ snfsiraj ^ ^ ^sm qrar irar t, fora# ^.137.14 cn^ m f^l^ ^ f3fR3TR 20.3 ^fcT^Icf 3^ W^ t. cTSn 3itafT3J 3lk SRtaf^ T^q^ ^?^^ q^ M^cTT ^t ^ijt ^ snfe 35i4g5cn^ ^ ^ ^ ^T?g5f ^ ^ ^ ^ ^pmK ^ 3ra^ ^H?g^ ^ s[?n ^ ^?M #^-^ q5iT$'T^R^ . ^ ug^eg5^^. ic^ g5^', Ml? f^ ^5^ ^ ^#tn ^. cmiit^ M ^ tf^iq^ gsratc!^. 3q-tfnre: 3Ttfq5?T,3q-M^ffe^3tktg5t^^?i^!Tr ^g^qf^^c?^^ISTT. ^?T?a5t^^^ ir^^3jkSRqcncfrAfgR22T^>5ft cTaisite cimf^^. 31WH ^ f^ 1^1^ ^ ^^ ^ ^fra5cn t fg5 3n^?3nffti2q> t IJTi^^ 3Rm g^ 3tk Mq ^ ^ I5qg5 ^?l^ g^ ^Icf 3lte c^^ ^iq^q^nfgcT^. ^^^^g5Tfg^^TR/^erR3T^ ^ >iid^qaH* f^fcT^ g51t^ ^t. 3m^^ ^ ling ferr Tmr 11^5 ^ fgasm % ^ ^msa ^featrtjr^raq^ ^ t. ^ if "^^ ^ '(^S^^sm h-^^ 'tjoMqr^d g5^ ^ 1cTO 6^<^*\^'\ g^ mTg5T3^1^3q^^H?g5f^g?TTlgn^^-f^^^M^H^cTTt3tkin#n^ f^i^g5T3ik3ite cfmsTM^^^i^ro ^^ M^^MsRisfRSR VIU EXECUTIVE SUMMARY This report is on an Evaluation Study on Rural Road financed under RIDF, conducted in Kodaikanal taluka in Dindigul district, Tamil Nadu. Major objective of the study was to evaluate the impact of the Rural Road on income, employment and quality of life in the benefited area. The works were sanctioned by NABARD under Tranche II of RIDF. The works covered under the study are (i)Parikavai to Kookal road - 8.60 km(6 works) and (ii) Kookal to Palamputhur-11 KM. A sample of 120 villagers, mostly farmers, daily labours, shop owners, etc. were contacted to collect the primary data to cover the objectives of the study. The works in Parikavai-Kookal road commenced in 1996-97 and completed in 1998-99 and that of Kookal-Palamputhur started in 1998-99 period and completed during 2000. After completion, the width of BT surface was found to be 3.75m and the formation width was 5.25m to 6.00m. The works were done with granite soling, WBM bottom lay and top layers premix with seal coating. • After the completion of the works, the roads were formally transferred to the Panchayath Union for further annual maintenance. But so far, no maintenance works have been undertaken in the roads. • In Parikavai - Kookal road, the BT surface is completely washed away in many places, the WBM layers are damaged and the pavements are dislocated including disturbing the V drain and position near to CD work. • Total cost esdmated for the road works was Rs.564.8 Izikh but due to saving in expenditure, total actual cost on the works was relatively less at Rs. 463.77. • Major benefits from the investment were in farm sector on account of reductions in transportation cost, wastage while transporting, increase in price of product due to timely marketing, increase in net income due to change in cropping pattern, net increase in income of NFS units, savings in operating cost, etc. Monetary value of benefit is worked out to Rs.56.20 lakh per year, net of recurring costs on roads. • In order to work out Economic Rate of Retum(ERR), total investment cost was adjusted with the economic price of labour and price changes and the same worked out to Rs.484.58 lakh at reference year price. It is also assumed that annual recurring cost on maintaining road at Rs.0.41 lakh per KM and relaying of the top layer/black top cost averaged at Rs.3.00 lakh per KM per every five year is required to maintain the life of the road. Annual gross benefit accrued for the benefited area from the rural road have been worked out to Rs.65.91 lakh during the first year after the completion of the road. Stabilised net income fi-om the second year onwards was Rs. 131.81 lakh at reference year price. IX The investment in rural road is observed economically viable with a positive net present value at Rs.137.14 lakh. ERR of the investment calculated using discounted cash flow technique is worked out to 20.3 per cent. Improved road condition has facilitated to increase capital formation in agriculture in the form of dairy animal, irrigation well, pumpsets, etc. Liability side of the sample also increased with asset creation and dependence on formal and informal lending institutions banks. Employment opportunity in the service area of the road was also enlarged on account of increased economic activities. Improvement of road condition also attracted farm machinery operators like, excavators, bulldozers, tractors, etc. to extend operation in these areas and to speed up the process of land development. But the same has not adversely affected the employment opportunities. Improved road condition and transportation facilities have facilitated promoters of Non Government Organisations, Banks, etc. to visit the area, form Self Help Groups, monitor them properly and credit link. There was no change m the population of the telephone office, sub post office, sub health centre and Banks in the benefited area. The service area of the road had benefited by better access to school and hospital/health centres. The study derives the conclusion that roads constructed under RIDF has benefited the rural people enormously, especially the farming community. Improved road has also positively influenced the quaUty of life of the villagers in the benefited area. However, complementary investments are yet to take up in the benefited area. Similarly expansion /improvement of service sector in the benefited are also found far firom satisfactory. The study suggest for adoption of a comprehensive approach on area development need to adopted. Streamlining of mechanisam for maintenance of completed roads, imposing user charge and using the same for improvmg the road condition, vigorous extension of service by the service sectors in the newly connected areas, etc. for further enhancing the benefit of the investment in rural road. CHAPTER 1 INTRODUCTION Economic and social infrastructures are the backbone of the economy. Positive correlation between the availability of adequate infrastructure and generation of income and employment in rural economy is obvious, especially in the case of a developing country. Better access to social / economic infrastructure in rural areas nor only enhances production and productivity in agriculture but also leads to reduction in wastage in output. It also encourages setting up of NFS units, reduces the transporting costs, time, etc. hnprovement in access to urban centres also augments mobility of labour which in turn enhances opportunities to get job at higher remuneration. Rural Infrastructure Development Fund(RIDF) 1.2 Acknowledging the significance of infrastructure on Agriculture and Rural Development in the country, NABARD, following the direction from Government of India, has set up Rural Infrastructure Development Fund (RIDF) in 1995-96. The main objective of the Fund was to extend financial assistance to the State Governments, Government owned Corporations, Grama Panchayats, Self Help Groups and Non Government Organisations for completing ongoing or new infrastructure projects in rural areas. Cumulative corpus of the fund as at the end of March 03 has reached Rs.28,500 crore including annual allocation of Rs.5,500 crore for Tranche VIE. Tranchewise details on sanction and disbursement under RIDF as on 31 March 2003 is presented in Table 1.1. Table 1.1: Tranchewise Details of RIDF as on 31 March 2003 (Rs.crore) RIDF Corpus No. Of Amount Amount Amount % of Disbursement to Tranche Projects Sanctioned Phased Disbursed Amount Amount Sanctioned Phased RIDF I 2000 4167 1910.54 1910.54 1760.87 92.20 92.20 RIDF II 2500 8174 2627.82 2627.82 2373.68 90.30 90.30 RIDF III 2500 14357 2707.79 2707.79 2377.03 87.80 87.80 RIDF IV 3000 6229 2976.53 2976.53 2160.77 72.60 72.60 RIDF V 3500 113280 3532.52 3532.52 2502.19 70.80 70.80 RIDF VI 4500 43802 4579.26 4579.26 2788.38 60.90 60.90 RIDF VII 5000 42512 , 5056.77 4083.90 2055.73 40.60 50.30 RIDF VIII 5500 22453 6084.07 1802.37 1126.43 18.50 62.50 Total 28500 254974 29475.30 24220.73 17145.08 58.20 70.80 1.3 Total sanction imder RIDF stood at 29475.3 crore covering 254974 projects and more than 58 per cent of the sanctioned amount has been disbursed alsp. Projects under minor / medium irrigation structures, roads, bridges, market yards, fishing jetties, power projects, drinking water, schools, hospitals, etc., were financed under RIDF. Priority was given for completion of incomplete minor irrigation projects in Tranche I, while tranche 11 onwards the emphasis was shifted to improve rural connectivity. As on 31 March 2003, NABARD has sanctioned 37,037 roads and 8,409 bridges with loan of Rs. 10,874 crore and Rs. 3729 crore, respectively. Purpose wise details on cumulative sanction under RIDF as on 31 March 2003 are given in Table 1.2. Table 1.2: Purposewise Cumulative Sanction under RIDF (31 march 2003) (Rs.crore) Physical units Financial Purpose Nos. % to total Amount % to total Irrigation 178840 -70.20 10010.53 34.0 Rural Bridges 8409 3.30 3729.19 12.6 Rural Roads 37037 14.50 10874.48 36.9 Others 30688 12.00 4861.10 16.5 Total 254974 100.00 29475.30 100.0 RIDF in Tamil Nadu 1.4 In Tamil Nadu, RIDF was operational fi-om Tranche II in 1996-97 onwards. Major investment covered under the Fund include rural roads, bridges, minor irrigation structures, schools, health centres and power projects. During Tranche 11 to Tranche VI, sanction and disbursement under the Fund was confined on minor irrigation, rural roads and rural bridges only. However, activities covered under the Fund got diversification by Tranche VII with the coverage of Power projects. Primary health centres and Schools. In Tamil Nadu, loans under RIDF have been sanctioned to Government of Tamil Nadu and Department of Finance is the nodal agency for all the transaction connected with RIDF. Details of loans under RIDF sanctioned and disbursement in Tamil Nadu are given in Table 1.3 Table 1.3 Sanction and disbursement under RIDF in Tamil Uadu(as on 31 March 2003) (Rs. crore) No. of Potential* Total RIDF Govt, Disbursem Tranche/ year projects Irrigation Bridges Roads outlay loan contri ent II (1996-97) 1541 201 1355 4824 284.45 245.79 25.1 218.86 111(1997-98) 560 - 4300 1580 248.55 209.4 42.9 182.4 IV (1998-99) 470 - 3738 1151 199.19 178.68 19.98 142.06 V (99-2000) 643 8439 4922 1950 281.54 253.04 27.92 208.43 VI (2000-01) 724 8134 5164 1287 288.21 257.67 29.87 206.44 VII (2001-02) 796 13091 2971 1122 420.07 359.95 41.42 223.63 VIII (2002-03) 980 5402 4185 1177 468.6 388.7 71.49 118.62 Total 5714.00 35267.00 26635.00 13091.00 2190.61 1893.23 258.68 1300.44 * Potential for irrigation in ha., rural bridges in metres and for roads in kms. 1.5 As on 31 march 2003, Rs. 1,893.23 crore has been sanctioned by NABARD to Government of Tamil Nadu from RIDF. However, disbursement as against the sanction was 68.7 per cent (Rs. 1,300.43 crore) in the State. Maximum sanction was under Tranche VI at Rs. 359.95 crore. Sanction and disbursement under RIDF in Tamil Nadu is depicted in Diagram 1.1 500 Diagram 1.1: Loan Sanctioned and Disbursed under RIDF inTamil nadu 400 Q Loan Sanctioned I Loan Dlsbureed .>. 300 s Q o M — 200 100 ll(M-«7) lll(«748) IV (91-99) V(9» As total sanction is touching around Rs. 1,900 crore, it was thought appropriate to conduct an Ex-Post Evaluation study with a view to assess the impact of the investment on the socio - economic condition of the targeted villages. CHAPTER 2 OBJECTIVE, SAMPLE DESIGN AND METHODOLOGY I. Objectives of the Study The overall objective of the study was to evaluate the impact of rural roads financed under RIDF. Specific objectives of the study were: •=> To estimate the cost of investment, operational and maintenance cost and system followed in maintenance of the works; •=> To assess the impact of the road-bridge work on income and employment generation in the benefited villages in farm, non farm and service sector activities; ^ To examine the improvement in the credit absorption level, quality of life in terms of access to health care, education, financial institutions and other public utilities. II. Sample Design and Methodology Selection of the Investment 2.2 Share of various investments financed under the Fund is shown in diagram 2.1. It may be noted that around 60 per cent of the loan sanctioned and 70 per cent of the loan disbursed was Diagram 2.1:Share of Various Investments Financed under RIDF in T N for rural roads followed by bridges S.8% -, with shares of 22.5 1.4% 1.5% J\ 0.4% 4.7% ^^ l.'''"^ ^A9.8%l \ per cent and 21.1 per 1 Healtli cen tS:::™?^ 1 \ f ?ii.V% \ D Roads cent respectively. As E:::!iSiiil!i;::::W S Power ^i<:fwifiW 69.8% / 0.7% W***""^ ES Bridges 70.5% / rural road constitute S School n irrigation 2.0% ^--^.^^^^ the highest segment of Sanctions Disburseiment s total disbursement under RIDF in the State, respectively. The study, therefore, covered work that involved rural road only. As the benefit fi"omth e investment require a brief period for stabilisation, works that completed before 31 December 2000 have been considered for study. 5 2.3 Details of roads completed on or before 31 December 2000 revealed that under RIDF, seven road works have been sanctioned in Kodaikanal taluk in Parikavai - Kookal - Palamputhur road. All the seven works were sanctioned under RIDF Tanche 11. Six works of the total seven were sanctioned in Parikavai - Kookal road and completed before December 1999. Further, road work in Kookal-Palamputhur road were also sanctioned under Tranche II and completed by October 2000, is also branching from the Parikavai - Kookal road at 6/6. Hence six works in Parikavai - Kookal road and work of Kookal - Palamputhur road in Dindigul district are found suitable for the study and selected. Details of roads works selected for the study are given in Table 2.1 Table 2.1: Details of Works Selected for the Study (Rs. lakh) Completion Road Loan SI. No. Road / location Estimate cost Actual cost date length(km) sanctioned 1 Parikavai-Kockal 0/0-1/0 5/98 1 16.50 16.2C 15.92 2 „ „ 1/0-2/0 5/98 1 16.50 15.30 14.54 3 „ „ 2/0-3/0 9/99 1 21.55 19.80 15.55 4 „ „ 3/0-4/0 6/99 1 20.50 19.80 15.46 5 „ „ 4/0-4/6 9/99 0.6 14.00 12.87 11.78 6 „ 4/6-8/6 9/99 4 131.8C 124.74 103.70 7 fCookal - Palamputhur 10/00 11 340.00 316.80 286.93 2.4 The total length of roads in all the seven works selected was 19.6 km. There were three minor bridges(two bridges with 9.6M length and one bridge with 10.4 m length) with 7 M approach in Kookal - Palamputhur road. Total cost of the works covered under the study was Rs.463.77 lakh. The field study was conducted during January 2003 in association with Highways Rural Roads Division at Kodaikanal. Sample Coverage 2.5 The study covered six villages benefited by the selected road and bridge. During the study 120 road users were interviewed personally to collect primary data for the study. The samples were drawn randomly almost equally from the selected villages and covering various sections of the society. Discussions were also held with Village Extension Officer, Bank officials. Highways (RR) department Forest Department, Agriculture/Horticulture department, Panchayath Union, Village groups, SHGs, firewood collectors, concerned contractor. Transport operators etc. to enumerate the benefits from the investment/ problems confronted during the implementation of the project. Data Collection 2.6 The study is based on both primary data and secondary data. Direct interview method was used for the collection of primary data. Data on new area brought under crop cultivation, shift in cropping pattern, cost of cultivation, yield, price etc. during the pre investment and reference year were collected from the sample farmers using pre drawn questionnaire and blown up to the total benefited area. Details of vehicle traffic was estimated by way of physical enumeration during the field visit. As seasonal data were not available for arriving at annual traffic, primary data on traffic collected were adjusted for seasonal changes with the help of discussion had with the village groups. Variation in VOC during the pre and post development stage was collected through the interview with the owners/drivers by using separate schedules. Total benefited area was assessed fi-om the village records as well as discussion with Village Administrative Officer and village groups. Secondary data were collected from village office, schools, banks and other concerned government offices. Analysis of Data 2.7 As majority of the social infrastructures are non rival in nature, considerajjle share of the benefits are indirect, intangible, many cases require higher gestation period and accrue for longer period of time etc., economic/fmanacial evaluation of the project become difficult. However, efforts were made during the study to evaluate the investment by quantifying the benefits from the investment received by various sections of the population in the benefited villages. Total villages directly benefited with the investment were estimated through direct inquiry and .all the six villages which are benefited were selected for the study. 2.8 The concept of 'pre and post situation analysis '(comparative static analysis) has been used to find out the net impact of the investment. 2.9 Primary and secondary data collected were tabulated, anlysed using statistical tools like sum, average(simple/weighted), etc., and inference were drawn. Net income from farm operation was derived as the difference between total income from farm operation and cost of cultivation. Net incremental income was arrived as the difference between net income in the reference period and net income in the pre investment period. Cost of the Investment 2.10 Details of the cost of the investment were collected from the implementing Department of the Government of Tamil Nadu at historical prices. Operational and maintenance cost of the road was also collected. The study also examined the system followed for maintenance of the investment through the discussion with the Highways(RR) Department, Panchayath Union, Kodaikanal and Forest Department. Benefits from the Investment 2.11 Both direct and indirect a also quantifiable benefit and non quantifiable benefit from the rural road were assessed for the study. The following benefits were quantified in monetary terms. (i) Incremental income firom farm operation on account of: • increase in net income due to change in cropping pattern • increase in gross cropped area • reduction in cost of cultivation, • reduction in transportation cost, • reduction in wastage while transporting • increase in price of product due to timely marketing (ii) Net increase in income of NFS(existing and set up new)in the benefitted area, (iii) Savings in operating cost(fuel, maintenance, repair and replacement) of the vehicle operated in the road anf net income earned by the new vehicle operators in the developed road. 2.12 The following benefits were also identified but not quantified due to lack of proper valuation technique. • Reduction in travel time, cost etc. by the commuters also savings on its alternative cost of the time reduced. • Increase in capital formation in agriculture in the form of structure, machinery, livestock etc., improvement in availability of job. • Impact of the investment on environment in terms of pollution, forestation, land degradation/upgradation, improvement in access to educational, health, and other infrastructure. • Increase in availability of job due to new/improved connectivity by the road. 2.13 In addition to the above, extent of change in the social parameters like area under agriculture, visit by Government (developmental)officials, Police patrolling / visit, school attendance by children, tourist inflow, deforesting, road accident, political party meeting, illicit liquor sale etc. were also assessed through the discussion with the samples. Concepts and Analysis of Data 2.14 Benefit received by the sample were blown up to the total benefited area to estimate the macro impact of the investments. Financial viability of the investment was assessed in terms of Internal Rate of Return using Discounted Cash Flow technique. Benefit Cost Ratio, Net Present Worth of net benefit of the investment were also worked out using the discounting factor at 15 per cent. All the costs actually incurred and benefits quantified during the study have been used for calculations. Economic Rate of Return of the investment was also calculated using economic value of inputs and outputs. Discounting factors generally used by NABARD (i.e. 80 per cent of monetary value of wage given to labour as economic value) have been used for the study to convert financial cost/benefit into economic cost/benefit. Reference Year of the Study 2.15 As the investments selected for the study were completed by October 2000, and considering a brief period for stabilisation of the benefits, calendar year 2002 has been taken as reference year of the study. All the benefits and recurring cost of the investment were collected for the reference year. Investment cost of the works collected at historical price were updated to reference year prices using suitable price indices, for comparison. Limitations of the Study 2.16 Generally benefit from social infrastructure will be accrued to the society after substantial period for stabilisation. The present study was conducted immediately after the completion of two years and hence cmay not be able to capture all the benefit accruable to the society. Perhaps a detailed study after completion of 8 or 10 years may give better results in these areas. 2.17 The study could not compare the change in the benefited villages when compared to control villages due to non availability of suitable control location as also due to limitations in manpower and time. The study compared before and after the project situation. The methodology adopted was not effective in separating the influence of other promotional / developmental programme implemented in the benefited area. Hence, it was assumed that the effect of other promotional programmes being implemented in the benefited areas on the study parameters is neutral (however, it was also noticed that no special programme was under implementation in the area covered under the study). 10 CHAPTER 3 PROFILE OF STUDY AREA AND SAMPLE I. Profile of Study Area Dindigul is one among the backward districts in Tamil Nadu. The district lies between 10.05° and 10.09° North Latitude and between 77.30° and 78.20° in the East Longitude. It is surrounded by Erode, Karur and Trichy districts at the North, Coimbatore district and Kerala State at the West, Madurai and Theni districts down the South and Sivaganga and Trichy districts at the East. It has seven revenue taluks and 14 developmental blocks. The district is drought prone and climate varies widely. Semi arid tropical climate prevails in the plains and sub tropical climate in the hills of Western ghats. Normal rainfall in the district is 836 mm as against the State average of 925 mm. The district falls in the agro climatic zone of Southern Plateau & Hills. Other basic detail of the district is presented in Appendix 1. 3.2 The district has a population of 19.189 lakh( 9.66 lakh males and 9.52 lakh females) accounting for 3.09 per cent of the State's population as per the 2001 census. The density of population measured in terms of number of people per sq. km. was 317 as against the State average of 477. 3.3 Total geographical area of Dindigul is 6.26 lakh ha. and accounts for 6.51 per cent of the State's total area. Of the total geographical area, net sown area is 37.7 per cent, 22.2 per cent is under forest, 10.4 per cent of land put to non- agricultural use, 20.5 per cent is current fallow and other fallow land and 1.1 per cent is culturable waste. The net irrigated area and gross irrigated area is 0.99 lakh ha. and 1.08 lakh ha. respectively. A wide range of fruits, flowers and vegetable are grown in the district. Other major crops are paddy, cholam, cotton, tobacco, groundnut etc.. Dindigul district has 657 villages and all the villages are electrified, connected with all weather road, and supplied with of potable water. 3.4 Kodaikanal hill station is in western ghats and come under Kodaikanal taluk. There are 15 revenue villages and 88 hamlets in Kodaikanal taluk. Kookal revenue village covered 11 under the study is in Kodaikanal Taluk and 40 km away from Kodaikanal to\vn. Kookal and surrounding villages are in elevated position on around 5500 feet above the MSL. The village is surrounded by reserve forest and as per the village records 1209 ha. of patta land and 1200 ha. of acquired land is under cultivation in the village. Climate in the village is subtropical with good rainfall in both South West and North East monsoort There are six hamlets viz., Kookal, Gundupetty A, Gundupetty B, Gundupetty C, Puthuputhur and Palamputhur. 3.5 Total number of families in the village is 2320 with adults in the voters list at 5450 and total population of (roughly)9800. More than 96 per cent of the villagers depend on agriculture and the rest being shop owners agricultural labours, drivers etc. Figure 1 shows the sketch of road and benefited villages covered under the study. Figure 1: Location of Road Covered under the Study Kodai-Cochin road jushan road •fi?SV?.l Reserve forest Kodai-Cochin road Road covered under the study Benefitted villages ^ 3.6. Kookal hamlet was established around 800 years ago while other hamlets were developed around 30 years ago. Rainwater tank at Kookal provides water for the drinking purpose as well as irrigation of the 45 per cent of the agricultural holding in the village. Vegetable is cultivated in the village in every possible land due to high fertility and favourable climate. Tree species like eucalyptus, acacia etc. are grown in less fertile land with very high slopes. Potato, carrot, garlic, cabbage, beans are the major vegetable grown. 12 II. Profile of Sample Occupational Status and Family Size 3.7 Of the total 120 sample, 54 per cent were farmers, 28 per cent were daily workers and the rest (18 %) belonged to the category of shop owners, lorry drivers post office assistant, school teacher etc.. Of the total sample, 89 per cent were men and 11 per cent were women. All the samples were staying in the same area even before the completion of the road. Almost 90 per cent of the samples were staying in the area traditionally; while, four per cent migrated to this area in search of job and six per cent came to this area due to other reasons like transfer of job, marriage etc. 3.8 Average size of family was five persons including two male, two female and on elderly or child members. Nuclear family was observed among all the sample. Majority of the sample belonged to the age group of 31-40 years and almost a quarter of the sample belonged to 41 to 50 years age group. Around 11 per cent sample had no spouse (either bachelor or lost spouse). Educational status 3.9 Kookal revenue village was about 40 km away from towns having high school facilities. Daily commuting to the high schools were not possible even today as travel time taken for each way is more than three hours. Primary and middle school were provided to the villages even 50 years before which had an influence on the educational status of the villagers. However, educational institutions beyond middle level were not improved which was reflected in the educational level of the younger generation as well. Details of distribution of sample and family members distribution as per educational status are given in Table 3.1. Table 3.1: Educational Level of the Sample (Numbers] SI. No. Educational level Borrower Spouse Sons Daughters Others 1 Illiterate 19 24 59* 16** 21 2 Primary level 81 76 66 38 3 3 Secondary level 16 9 18 10 2 4 Graduates & above 4 0 4 2 0 5 Total 120 109 147 66 26 * of which 34 were below 6 year old, ** of which 4 were below 6 year old 13 3.10 Majority of the sample(&4%) were literate and more than two third studied upto pnmary level, 13 per cent studied upto secondary level arid three per cent had Degree, Diploma or similar qualification level. Around 22 per cent of the spouse were illiterate, 63 per cent had primary educational level and the remaining studied upto secondary level. Surprisingly the younger generation are also having almost similar educational level. Other family members comprising of parents or other relatives were having relatively lesser educational standards. Assets Owned 3.11 Of the total sample, 88 per cent owned houses with RCC/tiled / thatched roofing and other stayed in rented houses. Majority farmers inherited landed property or received under rehabilitation programme for Ceylon bonded workers, around 20 years ago. Average area owned by the sample was 3.4 acres ; of which, 1.17 acres were irrigated through canal or well with pumpsets and the rest i.e., 2.23 acres were cultivated under rainfed condition. Majority of the pumpsets were operated with diesel engine and electrification of pumpsets was very minimum. Details of ownership of assets among the sample are presented in Table 3.2. Ground water exploitation was very low and water table was less than three meter in the low lying areas. Table 3.2: Major Assets Owned by the the Sample Farm (Rs.) SI No. Particulars Sample (%) 1 Sample owned House (RCC/Tile/Thatched) 88 2 Sample owned Dairy animal 31 3 Sample owned Work animal 17 4 Sample owned Sheep/goat/poultry 4 5 Sample owned Agricultural land 58 6 Asample owned Irrigation well 12 7 Sample owed IiTigallon pumpset 9 3.12 Agriculture was the life line of the benefitted villages and the effect of vagaries of monsoon on the villagers was very high. Labour migration to urban centre in search of job was observed to be the minimum and villagers contended with the job available in local area. Agricultural works, firewood collection, loading and unloading of vegetables, shops etc. provided employment to the villagers. 14 CHAPTER 4 PROJECT IMPLEMENTATION The works covered under the study are (i) improvements to the road branching from km 40/2 of Gushan road branching from Parikavai to Kookal road (6 works) ; and, (ii) Improvements to the road branching from km 6/6 of Parikavai-Kookal road to Palamputhur (via) Puthuputhur.. The works covered under the study were sanctioned by NABARD under Tranche II of RIDF. The total length covered by the six works in Parikavai - Kookal road was 8.60 km. and that of Kookal Palamputhur was 11 KM. This chapter scrutinise the systems and procedure followed while excuting works. Implementing Agency 4.2 The loans were sanctioned to the Government of Tamil Nadu. Department of Finance was the nodal agency to receive the fimd on behalf of Government of Tamil Nadu. Works relating to rural roads were implemented / executed by the Rural Roads wing of Highways(Highways RR) Department in the State. Highways(RR) wing is headed by a Chief Engineer(CE) and supported by four Superintendent Engineers'(SE) office at four different locations in the State. There are Divisional Engineers(DE) for each Division having couple or more of districts and each division was again consisting of Sub Divisions. There are 46 subdivisions in Tamil Nadu including two special subdivisions at Kodaikanal and Trichy exclusively for NABARD works. The rural road works covered under the study is in Kodaikanal subdivision of Madurai Division and under the control Superintendent Engineer, Trichy. Selection of the works 4.3 The office of Subdivision Engineer select the roads for development/ improvement for providing connectivity to the unconnected area or to improve the existing poor connectivity. Normally, population in the villages to be connected was the criteria for selection and villages having population morfe than 1000 were given priority. While selecting the road for development suggestion from the elected representatives(like MPs, MLAs, member of local bodies) were also considered. Priortised list of road with provisional estimates will be send to District Collector with detailed proposal for approval. Approved proposal will be forwarded by Finance Department to NABARD through DE, SE, and CE. 15 Appraisal of the Proposals by NABARD 4.4 All the proposal received by the RO of NABARD were subjected to desk level scrutiny. RO conducted field visit in randomly selected road/bridge works(25 % of the total proposed works) with the help of consultant(appointed by NABARD. Additional information on works were called for as per requirement. Economic viability of the works were assessed on sample works with the help of data collected by the consultant/ field visits. Draft Memorandum of Sanction and Appraisal report were prepared and forwarded to HO, Mumbai for sanction. The Projects, technically feasible and financially viable were sanctioned by the Project Sanctioning Committee comprising Chairman NABARD, Deputy Governor RBI, Director- representative fi-om Ministry of Finance in NABARD's Board. 4.5 After the sanction of the works, sanction letter containing terms and conditions(general and special) were conveyed the nodal department for acceptance. The State Government drew 30 per cent of the loan amount as mobilisation advance in order to meet expenditure on account of procurement and supply of materials. 4.6 Disbursements of the loan amount was made on reimbursement basis after satisfactory compliance of all the prescribed formalities. Nodal department submitted the claims based on the physical and financial claims at the field level. NABARD released funds after settling the initial advance released to the Government for the particular work. Sanction of the Works 4.7 Road works proposal approved by NABARD will be returned to the Government for sanction by issuing Government Order(GO) with that effect. The implementing agency(Highways-RR) prepare detailed estimate of the works(now detailed estimates are prepared and submit along with original proposal itself) and submit to the DE for technical sanction. Presently DE can sanction projects upto Rs.30.0 lakh(upto the year 2001 it was Rs.10.0 lakh), SE can sanction project upto Rs.l crore(earlier Rs.30.0 lakh) and the amount over and above the sanctioning power of SE has to be sanctioned by CE. Tenders from the approved contractors called for the sanctioned works. Tenders for outlay upto 10 lakh( with 5 % 16 discretionary power) can be approved by DE, upto Rs.30.0 lakh by SE upto one crore by CE and above one crore by a Board of Engineers. All the works were executed by the contractor to whom the tender is awarded. 4.8 On approval of tenders, agreement were executed between the contractors and Department on behalf of the Government. DE represented Government for contracts upto the Rs. 10.0 lakh and all the contracts over and above Rs. 10.0 lakh was signed by concerned SE. The agreement consisted of time schedule with rate of progress(period wise), technical specifications(for ensuring the quality of the works), commercial conditions(specifying the procurement of quality input/materials, specifications of basic facilities(drinking water, washing and bathing places, latrines and urinals, shelters during rest, creches, canteens and shed for housing etc.) to be provided to worker by the contractor. Works relating to the project were considered as started with effect from the date the site is handed over to the contractor. Progress of work 4.9 Projects are to be completed within the stipulated time and penalty on daily basis depending upon the size of the work were imposed by the department for delay in works in addition to not allowing any cost escalation. At each completed stages, bills were prepared and countersigned bills are submitted to DE for passing for payments to the contractor. Before the completion of the project maximum of 95 per cent of the total outlay were released. On approving of project completion report by the SE, 2.5 per cent from 5 per cent withheld amount were released and the balance 2.5 per cent were released on expiry of the contract/agreement period i.e. one year after the completion of the work. Payments were made through Government cheques. 4.10 Project completion report on the work were prepared by the JE/ADE ( by verifying the itemwise material used vis-a-vis original estimate) and submitted to Accounts office. Highways at Chennai through DE. On satisfactory verification and closing of it by the accounts office, claims were submitted to NABARD refinance through DE, SE, Secretary Highways and Finance. 17 Time Lag and Cost Overrun 4.11 As the works relating to the selection of work, measurement estimation of costs, involvement of representatives of leglature/local bodies with political background etc. and sanction of the work has to push on to various offices the sanction of works since selection of the works were observed a little bit time consuming. On an average selection of the road to sanction of the work by issuing G.O. took almost six months. Similarly after sanction of the work also factor like lower power delegated to ADE, DE and SE for technical sanction and approval of tenders has caused delay in assigning the work to the contract in time. Approval of tenders normally took three to six month time. 4.12 Timely completion of work after commencement have been affected by the following factors: • Delay in land acquisition-disputes on account of compensation • Objection from revenue authorities on account of unauthorised quarrying, collection of sand/soil • Restriction from Forest Department for cutting of trees on the side or on the road / development of forest area • Objection / delay from TN Electricity Board for removing/relocating electric poles, shifting of transformers etc. • Labour problems like non availability of labour in time (normally labour may not be available for work at hilly tracks for a longer period). • Adverse climate, especially in hilly tracks where rainfall is heavy. Table 4.1 gives details on delay in completion of work covered under the study as against the schedule for completion. 18 Table 4.1: Delay in Completion of Works and Cost Overrun (Rs. lakh) SI. Scheduled phasing Actually Cost over run / savings Road work No. Beginning Completion completed Estimated Actual Savings 1 Parikavai-Kookal 0/0-1/0 01/97 10/97 05/98 16.50 15.92 0.58 2 „ ,. 1/0-2/0 12/96 09/97 05/98 16.50 14.54 1.96 3 „ „ 2/0-3/0 09/97 02/98 09/99 21.50 15.50 6.00 4 „ „ 3/0-4/0 10/97 07/98 06/99 20.50 15.42 5.08 5 „ „ 4/0-4/6 09/97 02/98 09/99 14.00 11.78 2.22 6 „ „ 4/6-8/6 10/97 07/98 09/99 131.80 103.68 28.12 7 iCookal-Palamputhur 0/0-1 I/O 02/99 10/00 340.00 286.93 53.07 Total 05/98 560.80 463.77 97.03 4.13 Delay in completion of works as against the scheduled time varied between 7 months and 19 months averaging roughly to one year(l 1.7 months). Reason for delay were objections / restrictions from forest department, non availability of labour to work in the remote hilly places, non availability of inputs and adverse climate. Cost overrun / savings as against the estimated cost has also been estimated and given in Table 4.1. It may be noted that total savings as against the estimate is worked out to 21 per cent. Minimum savings was observed in the Parikavai-Kookal 0/0-1/0 works at 3.6 per cent and maximum was observed in the case of Parikavai-Kookal 2/0-3/0 work at 38.7 per cent. Details reduction in the iteamwise expenditure are discussed elsewhere in the report. Monitoring of Works 4.14 Daily progress on the project were recorded in the measurement (M) book. Progress of the work were monitored by daily visit by the Technical Assistant or Junior Engineer or Assistant Engineer. Assistant Divisional Engineer monitored the works on weekly basis. Divisional Engineer onc« in two week, SE one in a month and CE once in three months. District Collector reviewed the progress of the works monthly or once in two month. The works were also monitored by the DDM(NABARD), Collector, Secretary (Highways), Minister(PWD) etc.. Project completion report was test checked by field verification by officers from NABARD. 19 4.15 A High Power Committee was set in Tamil Nadu under the Chairmanship of Chief Secretary / Development Commissioner, Government of Tamil Nadu, for prioritising the areas for assistance under RIDF and monitoring the project sanctioned in the State. The committee consists of Secretaries and Heads of line departments, representatives from NABARD. The Committee meets on quarterly intervals and discuss matters like tendering procedures, identifying functional responsibilities of the implementing agencies, redeployment of staff, ensuring budgetary allocation, desk monitoring field monitoring impediments, availability of funds in time, maintenance of proper accounts etc. With a view to facilitate social monitoring of the project, physical and financial details of the projects and NABARD's participation were displayed in local language in the project area. Technical Aspects of the Works 4.16 Total sketch of the road was originally earthem surface road with no cross drainage(CD) works and narrow with lot of dips, humps and uridulations. The roads was in a kutcha pathway nature were not fit for ordinary traffic especially during rainy season. The works in Parikavai - Kookal road commenced in 1996-97 and completed in 1998-99 works of Kookal - Palamputhur started in 1998-99 period and completed during 2000. The works contemplated in the technically sanctioned estimates are (1) Jungle clearance, (2) Earth work excavation and forming sub base with 95 per cent compacting partly and 100 per cent partly, (3) Hard rock blasting, (4) Carted earth and compacting to 15 cum thick, (5) Granite soiling 15 cm. thickness, (6) WBM bottom layer 7.5 cm. thickness, (7) WBM top layer 7.5 cum thickness, (8) Top bitumen coat with PC and SC, (9) Providing V shape side drain on hill side, (10) Forming stone pitching pavement on both sides; and, (11) Construction of RCC 90 cm dia. pipe culverts at the required places. All the works have been executed as per the sanction except a paved RCC pipe culvert has been executed instead of a bridge at L.S. 2/2. 20 4.17 The width of black top(BT) surface was checked at various places and found to be 3.75 m and the formation width checked and found to be 5.25 m to 6.00 m. The works were done with granate soling, WBM bottom layer and top layer premix with seal coating. Drainage line with protection wall have been provided through out. In the Parikavai - Kookal road 41 pipe culverts and in Kookal Palamputhur road 32 pipe culverts were constructed to prevent water flow over the road during raining season. In Kookal - Palamputhur road bridges were constructed in three stretches with a total length of 36.60 m. (two bridges with 9.60 m one bridge with 10.40 m and 7.00 m aprroach) and 7.5m width. Bridges were constructed with open foundation and super structure with RCC deck slab. Maintenance of Road 4.18 After the completion of the works, first one year's maintenance were attended by the contractor as the same was insisted in the contract. All the completed roads were handed over to the Highways( regular) department upto 1997, and thereafter the system got changed and the road are formally transferred to the Panchayath Union for forther annual maintenance. It was observed from the field visit and also with the discussion with Panchayath Union and Highway(RR) that no maintenance works have been undertaken in the roads covered under the study. The ownership of the completed was also not formally accepted by the PU who maintain that they have not received any formal communication to that effect. The present fund position of the PU was stated to be so poor that it faces problems even to meet the monthly regular expenditures. So far, no separated fond was provided to PU for maintenance of rural roads constructed under RIDF. Hence it seem that PU may not be a capable agency to maintain the road constructed under RIDF, unless proper and specific fond is provided. 21 Present Condition of the Road 4.19 During the field visit, it was observed that Parikavai - Kookal stretch of road not in good condition. B.T. surface has been damaged in many places having lot of dips and waviness. Especially, the stretches in curves and reaches adjoining CD. works have been damaged heavily to the full depth of the sub-base. The BT surface is completely washed away and the WBM layes are damaged and the pavement are dislocated including disturbing the V drain and position near to CD work. In other stretches the BT surface is having pot holes and shallow dips. The road has served a period of roughly three years since the date of completion in 1999. The main cause for damages is due to non maintenance of side drains for allowing free flow of flood water and non clearing of water ways through pipes in CD works before the on set of rainy season. Because of poor upkeeping of water ways, growth of vegetation and slipping of earths into drains and blocking of water way in pipes, the floodwaters have found its way at every possible location along the road. Water flowing over the road surface damaged the riding surface, sub-base, pitching with stones, V drains etc.. 4.20 The initial damages caused have been developed leading to complete deterioration by subsequent vehicular traffic, the rainy season. The riding surface between km 6/6 to 8/6 is mostly in fair condition but for damages in caused areas and CD works sites. The Kookal - Palamputhur road has served for more than two years as on reference year. The riding surface, pitching and CD works are in fair condition. Incurred areas and near culverts damages to slight extent are noticed and the other reaches to the full length is in good condition. 4.21 Being a ghat road with frequent heavy rains expected regularly, annual maintenance of the road need to be given importance. If proper care and attention was given for clearing of drain to ensure free flow of water and proper clearing of CD works before the on set of monsoon every year, the damages could have been avoided to the maximum extent. It is to be stressed that if no action for restoring the road is taken at least now, and further proper arrangement for regular maintenance, the road will become completely not worthy for traffic within a short period of another 3 - 4 years and restoring at that stage will cause heavy expenditure. 22 CHAPTER 5 COST OF INVESTMENT The works covered under the study were in the ghat region and the average rate prescribed by the Department for the execution of the works was 100 per cent higher when compared to plains. The works were categorised as strengthening and black topping. Details of the sanction and actual disbursement of the road works covered under the study are given in Table 5.1. Table 5.1: Details of Works Covered under the Study (Rs. lakh) Phasing Cost of the works SI. Length of Road work Estimate No. Road(km) Started Completed Actual d 1 Parikavai-Kookal 0/0-1/0 1.00 10/97 05/98 16.50 15.92 2 „ „ 1/0 -2/0 1.00 12/96 05/98 16.50 14.54 3 „ „ 2/0-3/0 1.00 09/97 09/99 21.50 15.50 4 „ „ 3/0-4/0 1.00 10/97 06/99 20.50 15.42 5 „ „ 4/0-4/6 0.60 09/97 09/99 14.00 11.78 6 „ „ 4/6-8/6 4.00 10/97 09/99 131.80 103.68 7 Kookal-Palamputhur 11.00 05/98 10/00 340.00 286.93 rotal 19.60 560.80 463.77 5.2 Works Parikavai - Kookal Road started in 1997 whereas the works in respect of Kookal- Palamputhur Road was started in 1998. All the works in Parikavai-Kookal road was completed by September 1999 and that of Kookal -Palamputhur was completed by October 2000. As total cost estimated was Rs.560.8 lakh and total length of the road including bridge was 19.6 KM for the entire Parikavai-Kookal-Palamputhur Road works, per KM investment cost(estimated) on the road was worked out to Rs.28.61 lakh (Rs.25.67 lakh per KM in case of Parikavai- Kookal road and Rs. 30.91 lakh in the case of Kookal - Palamputhur road). However due to saving in expenditure, total actual cost on the works was relatively less at Rs. 463.77; hence, actual per KM cost was only Rs.23.66 lakh (Rs.20.56 lakh per KM in case of Parikavai- Kookal road and Rs.26.09 lakh in the case of Kookal - Palamputhur road). There is no bridge in the Parikavai-Kookal road , but three minor bridges(two bridges with 9.6M length and one bridge with 10.4 m length) with 7 M approach was constructed in Kookal -Palamputhur road. Construction of bridges and protective works have also loaded in road works which has inflated per KM cost of laying of Kookal-Palamputhur road. 23 5.3 The works sanctioned involved works such as clearing of forest, blasting of rocks, earth works-cutting, earth works - excavation, laying of granite sole, WBM bottom layer, WBM top layer, applying black coat, PC with seal coat, construction of granite 'V drain, culverts, minor bridges, protective works etc.. As the earthen road was existing and majority section were passing through forest, no cost was involved on land acquisition. Based on the data available in the project completion reports of the works and the discussion had with the Highways department, itemwise cost of the works in the selected roads have been tabulated and presented in Table 5.2. Table 5.2 : Itemwise cost Incurred on Works of Parikavai-Kookal-Palamputhur Road. (Rs.lakh) SI. Particulars Parikava - Koolcal Kookal- P.puthur Total No. Sanction Actual Sanction Actual Sanction Actual %Saving! 1 Earth works 14.07 11.54 19.52 18.08 33.59 29.63 11.79 2 Granite soling 39.62 36.29 72.31 73.45 111.93 109.74 1.96 3 WBM bottom layer 17.64 17.05 26.47 26.70 44.11 43.75 0.82 4 WBM top layer 20.41 19.00 29.57 35.16 49.98 54.16 -8.36 5 Premix Carpet /seal coat 27.03 25.01 29.77 31.42 56.79 56.43 0.63 6 Granite 'V drain 3.41 2.07 29.50 9.12 32.91 11.19 66.00 7 Cross Drainage works 68.09 54.98 16.16 17.77 84.25 72.76 13.64 8 Minor bridges 0.00 0.00 46.00 39.58 46.00 39.58 13.96 9 Protective works 1.45 1.48 36.81 27.99 38.27 29.48 22.97 10 Variation in costs 4.31 2.19 7.80 2.28 12.11 4.46 63.17 11 Provision for Workshed 1.83 O.OO 4.00 0.00 5.83 0.00 100.00 12 Petty Supervision charge 4.42 5.09 5.46 2.63 9.88 7.71 21.96 13 Others 18.51 2.13 16.63 2.74 35.14 4.87 86.14 rotal 220.80 176.84 340.00 286.93 560.80 463.77 17.30 5.4 In Parikavai Kookal road, granite solmg is .the major cost component in the total works occupying around 20 percent of the sanction amoimt and around 24 per cent of the actual expenditure incurred. Cross drainage(CD) works was the second largest item with almost 15 per cent share in anticipated and actual cost of the works. WBM bottom layer, WBM top layer, Premix Carpet /seal coat, minor bridges etc., were other major cost components under the works sanctioned. In the case Parikavai - Kookal road, Cross Drainage works was the major items of cost followed by granite soling, WBM top layer, Premix Carpet and WBM bottom layer ; whereas, in the case of Kookal Palamputhur road, granite soling was the single largest item followed by construction of minor bridges, WBM top layer, premix Carpet, protective works etc. 24 5.5 There observed variation between estimated cost and actual cost during executing the work due to inaccurate estimation. For the total works, savings to the tune of Rs.97.03 lakh(17.3% of the sanctioned outlay) was registered. Excess cost over the estimate was observed only in the case of the provision given for WBM top layer. Maximum savings on individual item over the sanctioned amount was observed in the granite 'V drain where actual cost was roughly one third of the sanctioned cost. Though sanction to the tune of Rs.35.14 lakh for items like advertisement, land acquisition, quality control, labour welfare schemes, name board etc., were provided, the actual cost was only Rs.4.87 lakh (roughly 14 % of the sanction) registering a savings of Rs.30.27 lakh. Table 5.3 : Yearwise Details of Actual Cost of Works (Rs. lakh) Years SI. Road work Total No. 1996-97 1997-98 1998-99 99-2000 2000-01 1 Parikavai-Kookal 0/0-1/0 4.53 10.59 0.8 - - 15.92 2 „ „ 1/0 -2/0 4.05 9.83 0.66 - - 14.54 3 „ „ 2/0-3/0 - 1.5 11.12 2.88 - 15.50 4 „ „ 3/0-4/0 - 3.1 5.75 6.57 - 15.42 5 „ „ 4/0-4/6 - 4.51 5.38 1.89 - 11.78 6 „ „ 4/6-8/6 - 20.11 72.92 10.65 - 103.68 7 Kookal-Palamputhur 0/0-11/0 - 21.42 12.16 116.3 137.05 286.93 rotal 8.58 71.06 108.79 138.29 137.05 463.77 Share to total cost(%) 1.85 15.32 23.46 29.82 29.55 100.00 25 5.6 On an average 65 per cent of the total expenditure was incurred during the second year of the work implementation in the case of Parikavai-Kokal road. But around 47 per cent of the total actual cost in the case of Kookal - Parikavai road was incurred during the fourth and final year of the project and around 40 per cent was incurred during the third year of the project. Financing of the Works 5.7 As per the guidelines 90 per cent of the cost of the works was to be covered by loans from RIDF and the remaining (10%) was the contribution fi-om the State Government. As there was considerable savings in the actual cost of the works when compared to the sanction, eligible amount for the works were also underwent change. Actual disbursement for the project from the RIDF were restricted to 90 per cent of the actual cost incurred on the works. Sunk Cost 5.8 A road with earthem surface was existing and the same was developed as BT road with ODR standard. As the road was existing for centuries and value of the same is not easy for estimation, sunk cost has not been taken into account of the study. Instead, incremental benefit to the incremental investment cost was assessed to nullify the influence of sunk cost with the assimiption that a given benefit had been accrued to the society with the earthen road. 26 CHAPTER 6 ECONOMICS OF THE INVESTMENT A majority of benefits from a rural road are indirect, subjective and attainable only after a considerable gestation period. However, in normal cases, changes (both positive and negative) in the service area of the road when compared to before the development of road or with that of villages without ro-ad etc. can be attributable to the new road. Accordingly, efforts were made in the present study to collect the information from both primary and secondary sources to estimate the benefit due to the road. This chapter estimate the benefits due to the of rural roads covered under the study that are quantifiable as described in the methodology part of this report. 1. Benefits from the Investment A. Benefit from Farm Operation 6.2 Kookal is the only revenue village benefited by the roads covered under the study. Within the Kookal revenue village there are six hamlets viz., Kookal, Gundupetty-A, Gundupetty-B, Gundupetty-C, Puthuputhur and Palamputhur and all the hamlets were connected by the developed road. Agriculture is the major activity in the Kookal village with more than 96 per cent of the people depending directly on it. Benefit from farm operation was mainly on account of changes in the cropping pattern, improvement in net income due to reduction in cost of cultivation, marketing cost and wastage improved price realisation etc. Change in the Cropping Pattern 6.3 Kookal village is in high altitude and is almost 5500 m above MSL. The geo-physical condition of the village is highly appropriate for vegetable cultivation and these vegetables are valued high when compared to those in plain terrain. 27 Table 6.1 : Cropping Pattern in Pre and Post Road Development Stages (Acres' SI. Pre Development Post Development Crops Change(%) No. Irrigated Ralnfed Total Irrigate Ralnfed Total 1 Potato 0.28 1.77 2.05 0.28 1.81 2.09 1.95 2 Carrot 0.48 0.21 0.69 0.5 0.21 0.71 2.90 3 Cabbage 0.05 - 0.05 0.07 - 0.07 40.00 4 Garlic 0.16 - 0.16 0.18 - 0.18 12.50 5 Green peas 0.03 0.02 0.05 0.03 0.02 0.05 0.00 6 Beans 0.11 0.13 0.24 0.11 0.13 0.24 0.00 7 Firewood - 0.13 0.13 - 0.06 0.06 -53.85 Total 1.11 2.26 3.37 1.17 2.23 3.4 0.89 Net area 0.65 2.17 2.82 0.68 2.14 2.82 0.00 6.4 Details of the cropping pattern and its change due to road of the sample farmers given in Table 6.1 show that net area owned by the sample farmer at 2.82 acres has not changed with the development in the cormectivity. However, improvement in the irrigation facilities had brought in marginal expansion in the area under assured irrigation- from 23 per cent of the net area in the pre development period to 24 per cent in the reference period. Consequent upon the improvement in the area irrigated, marginal increase yvas also observed in gross area cultivated from 3.37 acres to 3.40 acre in the reference year. Increase in the gross cropped area is worked out to 0.89 per cent for three year period i.e. roughly 0.30 per cent increase per year. Further, cropping intensity measured in terms of ratio of gross area cultivated to net area cultivated was also showed marginal improvement from 125.3 per cent to 128.6 per cent in the post road developed situation. Crops cultivated by the sample farm also undervjent change after the on account investment in rural roads. Area under cabbage, garlic, potato and carrot cultivation increased at the cost of area left for firewood growing. 6.5 As per the village record net sown area in Kookal village is 2435 acres;. However discussion with Village Extension Officer and group discussion was also held with the villagers revealed that an additional 2200 acres of non- patta (not-registered ) land also put under crop cultivation. Hence gross cropped area in the benefited villages is estimated 5960 ac. during the reference year. 28 6.6 Improved access to market and reduction in marketing cost has improved economics of the crop cultivation. Access to farm machinery like excavator, bulldozers, tractors etc. also motivated farmers to bring more area under crop cultivation. During the study, trifling changes in the cropping pattern of the sample farmers' was observed. Vegetable offered higher net income to the farmers and improved road condition and reduction in iharketing cost motivated farmers to cultivate more of vegetable as far as possible. Farmers cultivated potato in more than 60 per cent in pre and post road development situation followed by carrot, beans, garlic and cabbage. Shift in the cropping pattem( to the tune of more than one percent) w^as favourable to vegetables like carrot, garlic and cabbage. More area was brought under the cultivation of vegetables at the cost of firewood tree growing which was less remunerative. Reduction in Cost of Cultivation 6.7 Cost of cultivation of various crops cultivated by the sample farmers during the reference year and during the pre road development period were collected. It was observed that the financial benefit on account of development of road was confined only in reduction of input transportation cost. Total cost of cultivation per acre in the reference year varied from Rs.5,160 in the case of beans to Rs.26,728 incurred in the case of garlic cultivation. Transportation cost of fertiliser averaged to Rs.24 per bag in the pre road developed period which reduced to Rs. 14 per bag of 50 Kg. during the reference year(Table 6.2). Cost reduction was determined by the use of fertiliser per acre and was maximum at Rs.270 per acre in the case garlic cultivation and minimum in the case of beans cultivation. Reduction in the total cost of cultivation ranged from 0.84 per cent in the case of green peas to 1.68 per cent in the case of cabbage. It was also ascertained that reduction in the transportation cost has not influenced the input mix in the crop cultivation. 29 Table 6.2: Cost of Cultivation in the Sample Farm (Rs/Ac) SI. Ferti'r & Pesti Labour/ Input transport Total cost Crops Seed No FYM cide Farmpower Pre Post Pre Post Change(%)" 1 Potato 4180 4380 1270 3580 504 294 13914 13704 -1.51 2 Carrot 2630 4300 1040 5670 456 266 14096 13906 -1.35 3 Cabbage 1700 3560 1300 2600 384 224 9544 9384 -1.68 4 Garlic 11140 6455 3640 5115 648 378 26998 26728 -1.00 5 Green peas 2800 1330 250 2650 144 84 7174 7114 -0.84 6 Beans 1675 1395 575 1445 120 70 5210 5160 -0.96 7 Firewood 0 0 0 0 0 0 0 0 0.00 6.8 Based on the cropping pattern of the sample farm and the fertiliser use in each crop net reduction in the cost of cultivation was worked out at Rs.660 per year for the sample farm. As the sample farm was of 3.40 acres, reduction in cost of cultivation per acre averaged to Rs. 194 per year. Since the gross cropped area in the benefited villages is 5960 acres, total cost reduction due to the road is worked out to Rs. 11.54 lakh per year. Saving in IVIarketing Costs/Wastage 6.9 As there was no change in the mix of factors affecting productivity in the sample farm, yield of the crop did not change on account of the improved connectivity. However, transportation cost for marketing of output has reduced, substantially, when compared to pre development situation. Cost of transportation during the pre road developed period was collected and updated with reference year price by using suitable indices with net inflationary pressures to find out the exact difference. 30 6.10 Earthen road that existed before development was subjected to the damages during rains and the surface was uneven for vehicular traffic. Only lorry traffic and very rarely jeep traffic was possible before development. Vegetable transportation through the road was possible only by lorries with heavy damages. Apart firom the routine damages through staggered transportation, during the rainy season lorries often caught in some marshy points and two three days of efforts were required to revive the journey. Entire/part of the output was damaged in such occasion and almost all the fanners experienced atleast one or two occasion within every five year period. Improvement in the road condition could reduce the damages and the same was a direct benefit to the farmers in addition to the direct reduction in the marketing costs. 6.11 During the pre developed situation, transportation of vegetable took nearly 35 to 45 hours to reach market. Longer period required for transporting adversely affected the fi-eshness of the vegetables and deteriorated the quality also. With the new road, it could be possible to the farmers to consign the vegetable within 15 hours to the market. However, exact benefit on account of savings fi"om damages while transporting, difference in the prices due to the variation in the fi-eshness is far fi-om exact quantification. Attempts were made to calculate the benefits fi-om the experiences of the farmers by quantifying the price increase after nullifying the inflationary effect and tabulated to arrive at average benefit on this account. Table 6.3 evinces the difference in the price realised and reduction in the wastage while transporting. Table 6.3: Variation in Price of Agricultural Products (Rs./Qtl.) SI. Price Crops No. Pre Post Net Change Change(%) I Potato 509 517 8 1.57 2 Carrot 408 414 6 1.47 3 Cabbage 167 170 3 1.80 4 Garlic 4410 4410 0 0.00 5 Green peas 1180 1200 20 1.69 6 Beans 487 495 8 1.64 7 Firewood 30 30 0 0.00 31 6.12 It may be noticed from Table 6.3 that timely marketing without loosing the freshness of the product has realised better prices for the vegetables. The change in price level was marginal ranging from no change in the case of garlic to 1.8 per cent observed in the case of cabbage, hi terms of value the same was ranging from no change in the price of garlic to the maximum in the case of green peas at Rs.20 per quintal. Major vegetable in the area like potato has received Rs. 8 per quintal and carrot received Rs.6 per quintal more when compared to pre development situation. Table 6.4: Reduction in Wastage and Variation in Transportation cost (Rs./Qtl.) SI. Damage on transmit for marketing Transportation cost Crops No. Pre(%) Post (%) Savings (%) Value Pre Post Savings(%) 1 Potato 2.2 0.7 1.5 7.8 91 75 21.3 2 Carrot 3.4 1.9 1.5 6.2 81 65 24.6 3 Cabbage 2.5 0.7 1.8 3.1 81 64 26.6 4 Garlic 1.0 0.5 0.5 22.1 80 64 25.0 5 Green peas 2.5 1.5 1.0 12.0 105 90 16.7 6 Beans 2.3 1.5 0.8 4.0 103 86 19.8 7 Firewood 0.0 0.0 0.0 0.0 0 0 0.0 6.13 Better road condition has reduced the wastage while marketing which was reduced by 0.5 per cent in the case of garlic to 1.86 per cent in the case of carrot (Table 6.4). Perishability of carrot was very high especially during rainy season and reduction in wastage was substantial for that vegetable. Savings on this account in value was worked out to be varying in the range of Rs.3.10 per quintal in the case of cabbage to Rs.22.10 per quintal in the case of garlic. 6.14 Major benefit from the development of road received by the farmers was on account of reduction in the transportation cost of farm output to market. All the farmers in the benefited area marketed vegetable either to Vathalakundu i.e. 90 km. away or to Madurai which was 140 KM away from the benefited area. Transporting charges were determined depending on the volume of the vegetable packs. Transporting charges ranged from Rs.80 per quintal in the case of garlic to Rs.105 per 32 quintal charged in the case of green peas in the pre developed period. With improved road condition transportation charges have come down to the range of Rs. 64 per quintal in case of garlic and cabbage to Rs. 90 in the case of greenpeas. Savings in transportation cost was Rs. 15 to Rs. 17 per quintal. Table 6.5 depicts benefit in terms of marketing of farm output. Table 6.5: Benefit in Marketing by the Sample Farm (Rs.) SI. Area/ Yield Benefits (Rs/qtI.) on account of Benefit to Crops No sample (ac.) Qtl/Ac) Better price Wastage Trans, cost Total sample farm 1 Potato 2.09 49.2 8.0 8.1 16.0 32.1 3301 2 Carrot 0.71 71.0 6.0 6.5 16.0 28.5 1437 3 Cabbage 0.07 114.5 3.0 3.1 17.0 23.1 185 4 Garlic 0.18 11.4 0.0 22.1 16.0 38.1 78 5 Green peas 0.05 13.6 20.0 12.0 15.0 47.0 32 6 Beans 0.24 21.1 8.0 4.1 17.0 29.1 147 7 Firewood 0.06 0.0 0.0 0.0 0.0 0.0 0 Total 3.40 *49.7 *7.1 *8.0 *15.8 *30.9 5180 * refers to weighted average 6.15 Total benefit in marketing of farm output accrued to the sample farm was Rs.5,180 per year and the same was averaged to Rs. 1,523 per acre. By blowing up the per acre benefit to the total benefited area of the road (i.e. 5960 acres) net benefit on account of marketing of output was to the tune of Rs.90.77 lakh per year. Change in Net Income due to Change In Gross Cropped Area 6.16 It may be inferred from Table 6.1, very negligible change in the gross cropped area as well as in the cropping pattern were observed in sample farm in the reference period when compared to pre roads developed stage. Variation in the saving in input and output transportation cost and prices of output had influenced net income from the farm operation also. For working out of net income on account of change in gross cropped area, parameters like cost of cultivation, price and yield at pre development period were taken for calculation, in order to net out the benefit in input/ output transport and price change which were already been accounted earlier. 33 Table 6.6 : Change in Cropping Pattern and Net Income (Acres) Pre Development Post Development Net SI. Crops Cost of Total Net Cost of Total Net incrementa No. Area Area cultivation income income cultivation income income 1 income 1 Potato 2.05 28524 52145 23621 2.09 29080 53162 24082 461 2 Carrot 0.69 9726 19988 10262 0.71 10008 20567 10559 297 3 Cabbage 0.05 477 956 479 0.07 668 1339 670 191 4 Garlic 0.16 4320 8044 3724 0.18 4860 9049 4190 466 5 Green peas 0.05 359 802 444 0.05 359 802 444 0 6 Beans 0.24 1250 2466 1216 0.24 1250 2466 1216 0 7 Firewood 0.13 0 585 585 0.06 0 270 270 -315 Total 3.37 44656 84986 40331 3.40 46225 87655 41431 1100 6.17 As evidenced from Table 6.6, net incremental income (worked out as the difference between the post development net income and pre development net income for the sample farm) is Rs.1,100 per year and the same averaged to Rs.324 per acre during the reference year. For total benefited area the same was worked out to Rs. 19.31 lakh at reference year price. Gross Benefit from Farm Operation 6.18 From the foregoing discussion, it may be observed that farmers have been benefited by way of reduction in cost of cultivation, increase in price of the farm product, reduction wastage while marketing, reduction in transportation cost and increased gross cropped area as also the change in cropping pattern. Details of gross benefit on account of investment in road accrued to the sample farm and benefitted area is given Table 6.7. 34 Table 6.7: Gross Benefit to the Farm Sector (Rs./ year) SI. Sample Total benefited Sareto Item No (3.4 ac) area (5960ac.) total(%) 1 Reduction in cost of cultivation 660 1156941 9.51 Savings in marketing cost of output, 2 S180 9080235 74.64 reduction in wastages etc. Benefit from change in crop area and 3 1100 1928235 15.85 pattern Total 6940 12165411 100 Benefits accrued to the sample farm per year was to the tune of Rs.660 on cost reduction, Rs.5,180 on marketing of output and Rs.1,100 on increased cropped area and cropping pattern and totalled to Rs.6,940 per farm. Since the sample farm sized to 3.40 acres, average benefit per acre is worked to Rs. 2041 per year. During the reference year the benefits accrued to the entire area under crop cultivation was Rs. 121.65 akh. These are the benefit directly reached farmers hand. Major share of the benefit(around three fourth) was on account of reduction in marketing cost of farm output. B. Benefit to Shop Owners 6.19 The benefited areas is an isolated location lies within the reserve forest and roughly 40 km. away from Kodaikanal. Almost all the day to day requirement like grocery, stationery, consumable etc., were met by the purchase from the shop existing in the local area. There were 13 grocery shop cum vegetable shops, 8 tea shops and 3 other shop(like fertiliser/pesticide) in the benefited area before the development of road. With the development of road and improved transport facilities shop population has increased to 17 grocery shops 11 teashops and 5 other shops during the reference year. Improvement in the profit of the existing shop and net profit of the newly emerged shop is attributable to the road development. 35 Table 6.8: Change in net income of shop owners (Rs./month) Pre Development Post Development SI. Net Crops incrementa No. Monthly Transp Profit Wasta Net Monthly Transp Wasta Net Profit 1 income sales ortcost (%) ge profit sates ortcost (%) ge profit 1 Grocery shop 47160 1238 9.81 220 3168 41400 1041 8.50 50 2428 -740 2 Tea shop 6233 0 32.00 0.00 1995 7800 0 33.50 0 2613 618 3 Other shop 70400 4800 9.90 0.00 2170 64000 2800 7.40 0 1936 -234 6.20 Except tea shops net income earned by all other shop declined with the development of road(details may be seen in Table 6.8). hnproved cormectivity motivated some more entrepreneurs to set up shops which adversely affected the sales level and also profit level of individual shops. Better transport faciUties like routine bus service also facilitated village to go to nearby cities and collect consumable at a lower rate. Due to the development of road, economic activities improved, floating population has also increased which has helped to improve the daily sales of teashop. In spite of increase in the tea shop population in the benefited area, sales of the teashop increased in the reference year when compared to the pre developed condition. Based on the information at Table 6.8 monthly net income earned by the shop owners have been worked out and presented in Table 6.9. Table 6.9: Net Incremental Income(NII) of Shop Owners (Rs./month) Nllofexistingshops Net inconfie of nevir shops Net SI. Crops increment No. No. of Nil per No. of Net income Total Net Total Nil al income shops shop shops per shop income 1 Grocery shop 13 -740 -9620 4 2428 9712 92 2 Tea shop 8 618 4944 3 2612 7836 12780 3 Other shop 3 -234 -702 2 1936 3872 3170 Total 24 -5378 9 2380 21420 16042 36 6.21 As indicated earlier total net income earned by the shop owners comprises of (i) difference in the net income in the pre and post condition ; and, (ii) net income earned by new shop owners. It may be noted that monthly net income earned by all the grocery shop owners was worked out to Rs.92 only; whereas, the same is sizable at Rs. 12,783 by the teashops and by other shops at Rs.3,170 in the benefited area. Net income earned by all the shops in the benefited area was Rs. 16,042 per month and Rs. 1,92,504 per year. C. Benefit to the Vehicle Operators Reduction in Veliicle Operating Cost(VOC) 6.22 Direct impact of the development of the road are vehicle operators by way of reduction in the fuel charges maintenance / repair cost. Increased net income had to be pass over to farmers in the form of reduced transportation cost due to high competition which has already been discussed in the previous pages. Improved road condition has heightened the number of vehicle owned by the local and also outstation people operated in the area. Erstwhile earthen road was not suitable for ordinary traffic. Lorry traffic was the major category followed by very few motor bikes, tractors, jeep etc. Road was used with higher risk of accident, at the cost of very high fuel use, available only during suitable climate. Saving in cost incurred on excessive repair, replacement, maintenance and fiiel was attributable to the new road and hence accounted. During the pre developed road condition lorry trip was ranged between 3 to 7 per day depending upon the season and climate. 6.23 Details of vehicle traffic was calculated by physical enumeration during the field visit and the same was crosschecked during the discussion with village groups and adjusted for seasonal changes to arrive at annual traffic. Variation in VOC during the'pre and post development stage was collected through the interview with the owners/drivers by using schedules. Details of vehicular traffic in the road during the reference period was very high when compared to pre developed situation. 37 Table 6.10 : Change in Vehicle Operating Cost (Rs./year) Pre Development Post Development Saving SI. Vehicle in No. Traffic O&M VOC/ Traffic O&M VOC/ KM/yr. Fuel KM/yr. Fuel VOC (No/yr.) cost Rs/KM (No/yr.) cost Rs.KM 1 Motor Cycle 2440 36600 4800 58560 1.73 9820 147300 9600 117840 0.87 0.87 2 Jeep 1220 18300 72000 73200 7.93 4880 73200 76800 183000 3.55 4.39 3 Agri Tractor 340 5100 30000 25500 10.88 2695 40425 252000 115500 9.09 1.79 Excavator / 4 170 2550 21000 7000 10.98 230 3450 12380 15450 8.07 2.91 bulldozer 676500 5 Lorry 3660 54900 280800 732000 18.45 6765 101475 363000 10.24 8.20 0 6.24 In addition to the vehicular traffic shown in Table 6.10, there is three daily regular bus service connecting Kodaikanal and further to Vathalakundu and number of traffic per year was worked out to 2190 trips with a total distance of 41610 KM per year. Number of passengers in these buses are one of the highest in Kodaikanal depot. Improvement in road condition has brought in tremendous reduction in the operating cost of the vehicles. Operation and maintenance cost has come down on accoimt of reduced repair cost, reduction in accident wear and tear etc. Better road has also effected fuel efficiency and thereby reduced the fuel cost per km. Maximum reduction in the VOC was observed in the case of lorries to the tune of around Rs.8.20 per km followed by jeep at Rs.4.39 per km excavator by aroimd Rs.3 per km. As there is no bus service in the pre road condition, comparative saving in VOC could not be estimated in the case of bus. For the study purpose, saving in VOC estimated for lorry has been made applicable to bus also. 6.25 Based on the mileage of each category of vehicle and saving in VOC, total saving in VOC on account of road has been worked out to Rs. 17,10,920. However, as almost all the benefit accrued by the lorry owners have been passed over to the farmers by way of reduction in transportation cost, the same cannot be account for the calculation of economic of the road. Hence reduction in VOC net of income earned by lorry owners is Rs.8,78,200. 38 Net income Earned by Vehicle Operators 6.26 Apart from saving in VOC, there was an increase in the operation of commercial vehicles which attracted improvement in the net income. Hence entire net income earned by the additional lorry operation in developed road as also net income from bus operation is attributable to the new road. Based on the data in Table 6.10, it has been worked out that an additional 1553 trip per year was attended by the lorry operators. Similarly 2190 bus trip are also observed during the reference year. 6.27 As may be recalled from the earlier data, on an average five more lorries started operation in the benefited area. Total cost of operation by al 1 the lorries Table 6.11: Net income earned by Vehicle Operators(reference year) (Rs./year) SI. Trips Depreci other Gross Net Vehicle KM/yr. VOC Wage Total cost No. (No.) ation costs income income 1 Lorry 1553 372600 4451330 1553000 1100000 62000 7166330 7762500 596170 2 Bus 1095 45990 470940 438000 360000 75000 1343940 1478280 134340 Including VOC, wages for driver loading unloading, depreciation, tax, insurance etc. was Rs. 71,66,330. As gross income from the transporting was worked out to Rs.77,62,500, net income was Rs.5,96,170. Since the exact cost of operation was not known in the case of buses, VOC calculated for lorries has been used for buses also. With an average of 90 passengers per trip traveled in these buses total income was roughly Rs. 14,78,280 and net income from buses was Rs. 1,34,340 during the reference year. Total income earned from commercial operation of vehicle was Rs.7,30,510 per year. 39 D. Sectors Affected Adversely Horse Owners 6.28 Before developing the road, farm input and output were transported by using horses maintained by villagers who survived on the net income from the activity. This was prevalent in villages of Palamputhur, Puthuputhur, and Gundupetty(A,B&C) villages while Kookal village which is very near to main road depended mainly on lorry transport. There were roughly 120 horses in each villages which has been reduced to 30 during the reference year(to attend transport of input and output between interior area and the new road). Horses put to work in the pre development days was 720 and average number of days of work was 228 per year. With an average income per day of Rs.50 per horse and average feeding cost of Rs.l4 per haorse average net income per horse was Rs. 36 per day and Rs.8,208 per year. As around 540 horses has been displaced by the development in the road, net loss to the sector was to the tune of Rs.7,38,720 annually. Jeep Operators 6.29 There were two jeep operators in the area who were handling daily drips from the Palamputhur to Kodaikanal. As may be recalled from Table 6.8, VOC of the trip was Rs.2,17,700, wages was Rs.48,800, depreciation accounted for Rs.45,000 and other costs Rs.8,000 totalling to Rs. 3,19,500 per year. For each trip Rs. 40 was charged per person and on an average 16 persons were accommodated in each trip. Since Total income from the daily trip was worked out to Rs3,66,000 per year net income earned in the sector was Rs.46,500 per year. With the introduction of bus rout in this area there was no demand for the jeep journey hence the same was ceased operating and loss to the sector was to the tune of Rs. 46,500 per year. 40 Gross Benefit from the Development of Road 6.30 From the details and calculation developed in the forgoing sessions, gross direct benefit of the road constructed out of RIDF has been reckoned. In order to calculate the gross benefit from the investment in rural road net income loss by the adversely affected section of the society have been reduced fi-om the aggregate net income earned by the benefited section in the society. Table 6.12: Total Net Benefit Accrued to the Benefited Area(reference year) (Rs./year) SI. Particulars Benefited area Share to total(%) No. 1 Net benefit to the Farm Sector 12165411 92.29 2 Net benefit to the shop owners 192504 1.46 3 Net benefit to the vehicle operators* 823490 6.25 Total 13181405 100.00 * net of income loss by the horse operators and jeep operators 6.31 Monetary value of benefit accrued due to the development of road and improved transportation is Rs. 131,81,405 in the benefited area. A glance through the Table 6.12 reveals that the agricultural sector has benefited maximum out of the improved mobility in the newly developed road. Share of each sector in the total net income accrued is shown in Diagramm 6.1 Diagram 6.1 : Net benefit from Rural road to Various Sectors 6,2% 1.5% Q Farm Sector • Shop owners ^ Vehicle operators* 92.3% 41 It may be noted that maximum benefit from the development of rural road is accrued to the Farm Sector (92.3%) followed by vehicle operators (6.2%) and shop owners (1.5%). Total benefits received by the benefited village is sizable when compared to the level of investment. However, development of secondary and tertiary sector requires time and during the present study it was observed that the process of rural industrialisation and service sector activities are yet to pick up in the benefited area. So it may be concluded that the development of rural road offer maximum benefit directly to the agricultural Sector in the initial periods. 2. Maintenance Cost of Rural Road 6.32 Major part of the road covered under study is passing through forest and under the shade of trees. The road is subjected to damages, especially during the rain. In many places the drainage line and culverts are not capable of holding the heavy water flow and rain water were overflowed damaging the black topping. Over a period of time the road structure (even soling )were damaged because of the cumulative effect of damages. Improper / lack of maintenance accelerated the damages and reduce the life of the road. Hence adequate provision has to be made( though not followed in the road under study) in order to sustain the benefit with the road. 6.33 Based on the estimate done by the Highways Department(Rural Roads) / Consultant for rural road(NABARD) annual recurring cost is Rs.41840 per KM(on account of jungle clearing in the side drain and side of the road Rs. 2850, removing and repacking the disturbed stone pitching Rs. 2240, WBM patches Rs. 4500 and B.T. Patches Rs.32,250). Apart from the recurring annual maintenance, relaying of the black top is required once in every five year for which an average cost of Rs. 3.00 lakh is estimated per KM. Hence annualised cost for relaying is worked out to Rs.60,000 per KM. Total cost for maintenance and relaying per year is worked out to Rs. 1,01,840 per KM and for the entire road the same is Rs. 19,96,064. 42 Interest on the Cost of Investment 6.34 Details of cost of investment made on the road covered under the study has already been discussed in the previous chapter. It may be recalled actual investment for laying the road was Rs. 463.77 lakh. As per the sanction, interest for loan charged under RIDF is 12 per cent per annum. For the calculation of the total interest burden of the investment the same rate has been made applicable to the total investment cost. Hence, total interest accrued on the cost of the investment is worked out to Rs. 55,65,240 per year Total Annual Cost 6.35 Based on the details in the previous heads, total costs incurred annually encompasses annual maintenance cost, share of cost on relaying of road, net income forgone by the horse owners and jeep operators. Details of total cost incurred given in Table 6.13 indicate that annual recurring cost of the investment made in the road under the study totalled to Rs.75,61,304. Table 6.13: Annual Recurring Cost on Road (Rs./year SI. No. Particulars Cost 1 Cost on maintenance of road 820064 2 Share of cost on relaying of road 1176000 3 Interest on the cost of the investment 5565240 Total 7561304 3. Net Incremental Benefit 6.36 Net incremental income of the improved road has been worked out as the difference between gross benefit accrued on account of the road and gross cost on the rood. Table 6.14: Annual Recurring Cost on Road (Rs./year) SI. No. Particulars Amount 1 Gross benefit 13181405 2 Annual recurring cost 7561304 3 Net incremental benefit 5620101 Since net benefit was worked out to Rs. 131,81,405 and aimual recurring cost was reckoned as Rs.75,61,304, net incremental income on the investment in road is worked out to Rs.56,20,101 per year at reference year price. 43 CHAPTER? INTANGIBLE BENEFITS/IMPACTS Benefits from the investment in rural road that are quantifiable have been listed out in the previous chapter. However major share of the benefits are indirect, subjective and beyond approximation. This chapter view the non tangible benefit accrued to the society with the improved mobility. Intangible benefit from the development of rural roads are listed out in the following heads: • Increase in capital formation in agriculture in the form of structure, machinery, livestock etc. • Improvement in job availability • Impact on environment in terms of land degradation/upgradation and pollution • Improvement in access to educational, health, credit and other infrastructure. • Impact on the quality of life. It may also be noted that quantification of these benefits in money terms is possible only with wider assumptions which keep the estimation far from reality; hence, not attempted. Impact on Capital Formation in Agriculture 7.2 Capital formation is an important component in the production process as it add to the productive capacity of the sector and thereby income of the farmers. It was hoped that investment in social infrastructure(especially in rural areas) will be supplemented by investment in public and private sector. During the study, therefore, necessary data was collected to analyse the asset accumulation in the private sector. There was no heap of investment in private sector and whatever changes in the asset holding by the household sector was enumerated during the study. Details of change in the asset holding in the sample farm may be seen in Table 7.1. 44 Table 7.1: Change in the Farm Asset Holding of the Sample Farm (Rs.) SI Before After Change in Particulars No. Sample(%) value/sample Sample (%) value/sample value (%) 1 Dairy animal 31 5260 39 6720 27.8 2 Work animal 17 6100 21 6700 9.8 3 Sheep/goat/poultry 4 2000 13 2350 17.5 4 Irrigation well 12 3450 19 6500 88.4 5 Irrigation pumpset 9 6140 17 6920 12.7 7.3 Share of sample owning capital as well as average accumulated capital in the sample farm during the reference year was very low. However, the position has shown improvement in post development when compared to pre development situation. On an average eight per cent more sample owned dairy animal, four per cent more owned work animal, nine per cent more owned sheep/goat/poultry during the reference year when compared to pre development condition.. 7.4 It was also observed a few farmers owned capital structure / machinery for agricultural purposes. Around 12 per cent of the total sample owned irrigation wells which was improved to 19 per cent in the reference year. Similarly, only nine per cent owned irrigation pumpset which was improved to 17 per cent in the reference year of the study. It was also noted that no sample, except lorry owners, owned tractor/ powertiller/carriage vehicle both in pre and post development situation. However, use of farm machinery in the benefited area has improved tremendously and on an average three tractors, two bulldozors, two excavators were utilised in the benefited area for a minimum of six months in a year. All these machinery was owned by outsiders (from Kodaikanal and Palani area). Other asset/ liability holdings of the sample were also undergone change and the same is indicated in Table 7.2 I -^- r 45 Table 7.2: Change in the Asset / liability of the Sample Farm (Rs.) SI Before After Change in Particulars No. Sample(%) value/sample Sample (%) value/sample value (%) 1 Own house 88 10900 89 12500 14.7 2 Vehicles 3 25000 3 25000 0.0 3 Television 9 3340 29 2760 -17.4 4 Bank loan 7 6560 20 17300 163.7 5 Outside Loan 35 19750 55 24050 21.8 7.5 It may be noted that very negligible increase in the change in ownership of house was realised. Surprisingly no change in the share of sample who had vehicle was observed due to improvement in road. In other words complimentary investments has not been effected along with development of road. However, possession of consumer goods like Television could improve by 20 per cent when compared to pre road developed situation. 7.6 Along with improvement in asset holdings, liability side also found increased. As against 7 per cent sample who were having crop loan account with banks (either with PACB, Kookal or with Canara Bank, Poomparai) more than 20 per cent of the sample had bank loan and there was substantial increase in the loan amount also(from Rs.6,560 to Rs. 17,300). All the bank loan was for short term for crop cultivation. Similarly dependence on local money lenders were also on the increase among the benefited area. As against the 35 per cent of the sample who depended during the pre developed period on local money lenders to meet their expenses on crop cultivation, medical, marriage etc. have increased to 55 per cent in the reference year. Amount of loan amount taken from the local money lenders was also increased from Rs. 19,750 to Rs.24,050 in the reference period of the study. 46 7.7 It may, therefore, be concluded that development of the social infrastructure has facilitated capital formation in agriculture atteast in private sector. Further there is increase in demand for credit in this area on account of enhanced farm economic activities. However, the opportunity could not be tapped by the institutional agencies either in cooperative or commercial sector leaving the private moneylender to continue to dominate the scene. Increase in Employment Opportunity 7.8 hnproved road condition has activated the economic activities both in farm and non farm sectors. Increased economic activities has made available more employment opportunities in the service area of the road. The study has also covered 26 daily labours from the benefited areas. The benefited area is around 40 KM away from Kodaikanal and daily commuting was not possible. All the daily workers depended on the job available in the same locality and urban migration in search of job was not observed. Details of the job opportunities available in the area during the pre-developed and post developed area are given in Table 7.3. Table 7.3: Improvement in Employment Availability (Rs./year) SI Particulars Employment (Days/yr) Wages (Rs/day) No. 1 Before road development 169 57 2 After Road development 197 57 3 Net change 28 - 4 % change 17 - 7.9 The employment availability per year has enlarged in the benefited area due to the improvement in the road condition. Each employed got around 28 additional working days per year. Further, due to the migration of labourers from other area (from neighbouring interior areas from the district because of attractive wages prevailing this area), per day wages remained consistent during the years. Improvement of road condition also attracted farm machinery operators like. 47 excavators, bulldozers, tractors etc. to extend their operation in these area and to speed up the process of land development. Though the operation of these machinery has replaced the labour in land development, it has not reduced the total job availability as the recurring employment generated in the newly brought in agricultural area and shift in cropping pattern have more than compensated the job loss in land development. Institutional Development/Access to Social Infrastructure 7.10 It was expected that public sector investment in social infrastructure will attract supplementary investment from both public and private sector. However no phenomenal change in the public sector utilities and its fimctioning was observed in the service area. Details of major public sector infrastructure in the service area are given in Table 7.4 Table 7.4: Change in Social and Economic infrastructure (Nos.) Before road After road SI. No. Particulars development development 1 • SHGs 0 26 2 Sub post office 2 2 3 Telephone office 1 1 4 Health subcentre 1 1 5 PACB/Bank 1 1 6 Schools 5 5 7.11 Being remote area with limited access by the developmental agencies, institutionalisation of the society was deficient in the service area of the road covered under the study. Improved road condition and transportation facilities has facilitated promoters of Non Government Organisations, Banks etc. to visit the area, form groups, monitor them properly and provide credit link. It may be noted from Table 7.4 that in the service area of Kookal - Palamputhur road 26 SHGs have been formed and are ftinctioning properly after the development of road. Of the total SHGs promoted, 20 has opened account with Canara Bank, Poomparai branch and 8 has 48 been credit linked. All the SHGs were promoted by DME an NGO operating from Kodaikanal. All the SHGs were having women members only and each SHGs had 15 to 20 members. There was no change in the number or staff pattern of the telephone office, sub post office, health sub centre and Banks. Staff manned the sub post office and telephone office belonged to the same locality and no change in the availability of staff in these offices and quality of service offered was reported. 7.12 The only financial institutions in the benefited area is the Kookal Primary Agricultural Cooperative Bank(No. A-1288) working under Dindigul DCCB. The PACE was established in April 1938 and functioning well upto the year 1999-2000. Due to the misappropriation of fund and subsequent police cases, the functioning of the PACB was adversely affected. There is a sharp decline in the loan disbursement after 1999-2000(Table7.5). Banking requirement of Gundupetty, Palamputhur, Puthuputhur villages were met by Canara Bank, Poomparai branch and discussion with the bankers revealed that there is no phenomenal change in the availment of loan by customer from these villagers. Table 7.5 : Details of Disbursement of loan by Kookal PACB (Rs.) Crop loan(potato) Jewel Loan Year No. of account Amount No. of account Amount 1995-96 14 159800 61 211100 1996-97 12 168370 170 717200 1997-98 21 292330 204 101745 1998-99 - - 269 787800 99-2000 16 219600 282 796525 2000-01 - - 169 303550 2001-02 10 258984 141 262775 49 7.13 The service area of the road had appropriate educational centres. As may be noted from Table 7.4, there were five government aided schools(four primary school and one middle school) in the service area of the roads. Details of school enrolling in the schools are given in table 7.6. Table 7.6: Details of Enrollment In the Schools in Benefited Area (Average students in each Dn./ school) 1996-98 1998-2000 2000-02 Standard M F M F M F I 104 , 90 83 86 97 90 IltoV 63 50 59 53 64 64 IV to IX 13 15 16 16 22 17 W. average 45 39 43 40 49 46 Total per year 408 352 383 361 438 411 Source: records of various schools in the benefited area 7.14 Students enrolling in the schools of the benefited area has increased tremendously after the laying of road (Table 7.6). There was a decrease in the annual enrollment during the period upto 1999-2000. It may also be noted that a sizable increase in the enrollment after 1999-2000 i.e. after the completion of the road project, annual increase of almost 7 per cent increase during 2000-02 period over the corresponding previous year's. One of the prominent feature of the increase is that girls enrollment in the school has improved relatively better when compared to the boys enrollment and the increase was more strong after 1999 - 2000. Though the villagers are not attributing any direct influence of road on improving the schooling of the children in the benefited area, the secondary data available show its impact on improvement in the schooling rate in the benefited area. 7.15 More than 60 per cent of the available teachers in the schools in the benefited area are from the same locality only and the rest was from out side the area who were staying in the same area. Hence, improved road had not influenced any change in the service of teachers in the school. Better mobility on account of the improved road has helped them in easily accessing nearby towns. It was also observed that a good share of teacher's posts(50 per cent in some school) are still vacant. Despite improved road condition and better transportation facilities, teachers posted to this place are not willing to work in this remote area. 50 7.16 Accessibility to hospital on emergencies was very difficult in the pre developed road condition. Usually patient of serious condition was carried in a stretcher by four people upto the point where transport facilities are available and from there by jeep/bus. The practice was time consuming, labourious and often lead to casualties. Improved road condition has changed the situation as hospital are easily accessible to the patient by direct bus or jeep. Improvement in the transportation facilities have motivated some voluntary agencies to extent immunisation programmes in these villages (once in a week through mobile health centres). However, no hospital either in public or private sector has come up in the benefited area even after improved road condition and all the hospital/health care requirements were met by the hospital at Kodaikanal, Vathalakundu and Madurai. 7.17 Based on the above observation it is concluded that improved road condition alone is not sufficient to attract supplementary investment in infrastructure and also in improving the services or facilities already available. Impact on Environment 7.18 Investment in socio - economic infrastructure will have both positive and negative impact on environment. Improvement in rural road like conversion of old earthen foot path into black topped road as in the case of the road covered under the present study had the following impact on environment. Impact on soil erosion 7.19 Majority of the Parikavai - Kookal - Palamputhur road is passing through the reserve forest. The existing earthen foot path was also operating as a drainage channel during rains. The force and frequency of water washed away top layer soil during the rains causing heavy soil erosion. Every year more than a feet of top soil of the path was lost, damaging the structure of the path. Some of the point in the path way was more than three metre depth before the development of road. Black topping and construction of protective walls and drainage lane by the sides of road and also culverts etc., has prevented soil erosion considerably. It may be concluded that black topping of mud road is having positive impact on soil erosion in forest land. However, it was also be observed that forest is more safe / faced less attack in a no road situation within it when compared to any kind of road within it. 51 7.20 Better road condition has brought more area under crop cultivation by converting tree growing area into farm land. This must have some adverse impact of soil erosion, chemical fertiliser / pesticide use in the converted area. Estimation of the impact and quantification of the benefit/cost on that account are beyond the ambit of this study. Value of Land 7.21 Better road condition has enhanced the value of land in the service area of the road resulted in the appreciation of land value. Though appreciation of land has enriched the land owners, its adverse impact like diversion of agricultural land for non agricultural purposes are yet to be established in the study area. So far, industrialisation or other Non Farm Sector activities in the study area was not come up endangering the growth/existence of agriculture in this area. Impact on forestation 7.22 Higher traffic through the forest area with the help of improved road condition had mixed repercussion on the forest environment. Better road condition has facilitated the forest officials to monitor the service area to prevent unauthorised entry by the intruders and ruining to the trees and animals, more effectively. Better road condition has also attracted tourist in some lonely comers of the forest adjacent to the developed road. 7.23 On the negative side of the improvement of road is that, earlier, it was strongly believed by the local people that permanent road through the forest land was impossible owing to stringent laws protecting the forest. One of the worst damages created by the construction of the road is that the change in the belief in the society. Now a lot of requests are being received by the forest department to permit laying of road through forest land by showing the instance of Parikavai - Kookal - Palamputhur road. It was observed that easy transportation has facilitated easy escape way by the tree cutters. 52 Impact on firewood collectors 7.24 More than 150 women mostly from Kookal village were engaged in firewood collection from the nearby reserve forest. Though improved road condition has enabled easy travel with heavy head load, in general, frequent monitoring of forest officials have adversely affected the firewood collection. Around 60 women among this group who were fully depended on the income from the sale of these wood were the worse affected. Though collection of dry and fallen wood are permissible by the forest officials, many wood collectors cut live, fresh branches or small trees as a matter of prestige. On the angle of forest protection, development of road have contributed positively. Impact on the Quality of Life 7.25 The multitudinous impact of the rural road in improving life is obvious. Some of the benefits accrued to the society are beyond estimation or measurement. During the field visit, changes in the quality of life was ascertained from the samples as well as from the discussion with the groups by degree of variation (increased / no change / decreased). The information so collected have been tabulated and presented in Table 7.7. Table 7.7: Change in Social Condition Due to Improved Road (Resp onse of % of total respondents Increased / Decreased SI. No. Particulars No cliange improved /worse 1 Area under agriculture 78 22 - 2 Visit by Govemment (developmental)officials 76 15 9 3 Police patrolling / visit 84 12 4 4 School attendance by children 69 31 - 5 Tourist inflow 54 46 - 6 Deforesting 9 69 22 7 Road accident - 53 47 8 Political party meeting 69 31 - 9 Illicit liquor sale - 56 44 53 7.26 An estimate of increase in area under agriculture was already done in the previous chapter. However, the fact was confirmed by 78 per sent of the sample while other felt that the same remained the same, hicrease in profitability, better access to farm machinery irrigation facilities were the major reason for increase in area under cultivation. It was assumed that improved access to the remote area will facilitate in providing better service by the developmental/field staff of various department like agriculture, horticulture, revenue, healtb and bankers. Three fourth of the responders were of the view that the visit of these officials have improved while other believed that the same remained same or deteriorated. 7.27 Being a compact area, crime level was so low and police visit was limited to occurrence of specific cases. However, visit by the police to the village even to attend cases was very rare previously which has improved tremendously due to better road. Even today also regular patrolling by the police is not undertaken. Change in the school enrollment have already been explained. Daily attendance of school by the student has been improved as per 69 per cent of the respondent while other viewed the same remained as constant. Visit to the villages by the tourist was not regular. However, it was either increasing (54% respondent)or remained constant(46% respondent) with the improved road. From the point of view of villagers, many (69 %) believed that improved road has not influenced while 22 per cent believed that the road had helped forest official to check deforestation. 7.28 Though there was very limited traffic in the pre development stage of the road vehicles were prone to accidents due to adverse condition of the road. Improved road has reduced accident considerable and 47 per cent feel that the same has decreased while others find it remained the same. One of the changes that had both positive and negative impact on the society due to the improved access was the increased visit by the politicians in the area. Around 69 per cent of the sanple felt that visit by the politicians were on the increase and the rest replied that the same remained the same. A good section of the society consider that due to increased patrolling/visit by custom / police officials, illicit liquor sale in the benefited area has come down, drastically. 54 Reduction in Travel Time and Cost 7.29 Majority of the villagers in the benefited area had to walk to the main road(Gushan road) to visit nearby towns. Generally Kookal villagers walked upto Parikavai(8.6 KM) ; while, villagers from Gundupetty, Puthuputhur and Palamputhur areas walked upto Pomparai to get buses to nearby towns. It was observed that there was an increase in the bus fare in the post road developed period when compared to pre developed stage. However, reduction in the travel time and the strain of the passengers have more than compensated the increase in bus fare. More over, due to non availability of sufficient buses and bad condition of the pathway to be travelled, villagers often had to stay at towns with increased the financial burden of the travel. Table 7.8: Details of Times Saved on Travels. (Rs.) Pre road development Post road development Particulars Visits(Nos.) Cost (Rs/trip) Time(hrs/trip) Visits(Nos.) Cost (Rs/trip) Time(hrs/trip) Farm /business 10 14 9 14 29 6 Hospital 6 14 9 8 29 6 Others 3 14 9 3 29 6 Total 19 14 9 25 29 6 7.30 It may be noted from Table 7.8 number of travel performed by the sample or his/her family averaged to 19 in the pre road developed stage was 19 per year which increased to 25 trip in the reference year. Improved road condition and direct bus route reducing drudgery of walking etc. has resulted in the improvement of visit to towns. Bus fare to each travel was Rs.l4 in the pre developed period which has gone upto Rs.29 in the reference period. But it may also be noted that there was a considerable reduction in the time taken fro travel almost three hours for travel alone due to the development of road. All the respondents felt that the reduction in travel time and physical strain has more than compensated the increased cost of busfare. 7.31 It is concluded that the subjective benefit of the improvement in rural connectivity is innumerable, very high and even may have to be ranked above the economic benefits. However, the methodology adopted for the present study is not sufficient to quantify the impact in this account. 55 CHAPTER 8 ECONOMIC VIABILITY Like any other private sector profit motivated projects, viability (economic or financial) of the investment in social infi-astructure is important in taking policy decision. As the benefit is accrued to the various sectors at various proportion and the beneficiaries have not directly borne the cost of the investment, it is appropriate to calculate the Economic Rate of Retum(ERR) of the investment rather than financial rate of return. This chapter attempts to measure the ERR of the investment covered under the study. ERR of the investment have been calculated using discounted cash flow technique. The following assumptions were made for the calculation of ERR. '^ Actual cost of investment incurred have been taken into account for calculation. Investment cost have been updated to reference year price using suitable indices for comparison. ®° Economic price of labour have been used. Financial cost have been converted into economic price using conversion factor advised by Word Bank for the country. ®° Benefit accrued to the society have been included in the income stream of the work. All the benefits quantified have been included and all the intangible benefits have not been included. '^ Benefit accrued in the reference year of the study has been considered as stabilised and during the first year after completion of the project only 50 per cent of the net income of the reference year is accrued. "^ Costs and benefits are discounted at 15 per cent for estimation of cost benefit ratio and Net present Worth •3^ Economic life of the investment has been taken as 15 yezirs. ®° Incremental benefit to incremental investment only is taken into account i.e., the effect of sunk cost of the investment in the analysis is neutral. •^ The analysis is based on zero year concept that the investment completes in zero year and benefit accrues fi-om first year onwards. 56 Costs 8.2 As the cost of investment has been estimated at historical prices the same was adjusted to inflation change using price indices to make it comparable to the reference year benefits. Similarly, as suggested and acceptable conversion factor for labour, only 80 per cent of the financial cost on labour has been taken as economic cost. It was also estimated that 28 per cent of the total cost of the work has been spent on labour under the road work covered under the study. Updation of historical cost to adjust inflation, conversion of economic cost of labour etc. have been attempted in Table 8.1 Table 8.1: Conversion and Updating of Cost of Investment (Rs. lakh) At historical prices At reference year With economic price Year prices for labour 1996-97 8.58 10.94 10.33 1997-98 71.06 86.12 81.3 1998-99 108.79 123.26 116.36 99-2000 138.29 151.29 142.82 2000-01 137.05 141.71 133.77 Total(2001-02) 463.77 513.32 484.58 8.3 It may be noted from Table 8.1 that total cost of investment made in the Parikavai - Kookal- Palamputhur road has been rose to Rs. 513.32 lakh by loading to inflationary factors to make it comparable with reference year price. By adjusting to the economic price of labour total cost has reduced to Rs.484.58 lakh at reference year price. Annual recurring cost for regular maintenance of road for cleaning of side channel and patch up of black top was worked out to Rs. 7.95 lakh per year. It was recommended that the road have to be re-laid on every fifth year after completion at a cost of Rs. 57.00 lakh. 57 Annual Benefits 8.4 All the tangible benefits enumerated in chapter 6 have been taken for calculation and innumerable intangible benefits estimated have not been accounted. Annual benefit accrued for the benefited area fi-omth e rural road have been worked out to Rs.65.91 during the first year after the completion of the road. Stabilised net income fi-om second year onwards was Rs. 131.81 lakh at reference year price. Table 8.2: Gross Benefit Accrued to the Benefitted Area(reference year) (Rs./year) Benefits SI. Particulars No. 1 St year 2nd year onwards 1 Net income from Farm Sector 60.83 121.65 2 Net income from shops 0.96 1.93 3 Net income earned by vehicle operators 4.12 8.23 Total 65.91 131.81 Economic Viability 8.5 Based on the cost and benefit arrived at the above, economic viability of the investment has been worked out. Details of the working out of ERR is shown in Table 8.3. 58 Table 8.2: ERR of investment in Rural Road (Rs.lakh) SI. Years Total(discou Particulars No. 0 1 2 to 4 5 6 to 9 10 11 to 15 ted@15%) 1 Capital cost 484.58 2 O&M cost 8.20 8.20 8.20 8.20 8.20 8.20 3 Cost of road relaying - - - 58.80 - 58.80 - 4 Total cost 484.58 8.20 8.20 67.00 8.20 67.00 8.20 576J 5 Total benefit - 65.91 131.81 131.81 ,131.81 131.81 131.81 713.4 6 Net benefit (5-4) -484.58 57.71 123.61 64.81 123.61 64.81 123.61 137.1 NPV 137.14 BCR 1 : 1.24 ERR 20.3 % 8.6 It may be seen that the investment in rural road is economically viable with a positive net present value at Rs.137.14 lakh. Benefit Cost Ratio of the investment is also positive and good at 1 : 1.24. ERR of the investment calculated on discounted cash flow technique is worked out to 20.3 per cent. 8.7 Sensitivity analysis on the investment was also attempted for the investment with 10 per cent increase in cost, 10 per cent decrease in benefit and for 10 per cent increase cost along with 10 per cent decrease in benefits. The results shows that the inves^tment is sensitive to the variations in the cost and benefit of the investment. More than two per cent reduction in the ERR was observed in the case of both cost escalation (from 20.3% to 17.7 %) and benefit reduction(from 20.3 % to 17.9%). However 10 per cent increase in cost along with 10 per cent reduction in benefit reduced the ERR by around 5 per cent - from 20.3 per cent to 15.6 per cent. 8.8 The foregoing analysis indicates that the economic benefit accrued to the society due to the investment has more than compensated the cost incurred on the project. 59 CHAPTER 9 SUMMARY, CONCLUSION AND RECOMMENDATIONS 2 This report presents the observation, findings and inferences of an Evaluation Study on Rural Road financed under RIDF, conducted in Kodaikanal taluka in Dindigul district. I The study was conducted with the major objective to evaluate the impact of the Rural Road. Other objectives of the study were to examine the realisation of ex - ante assumption of the investments under ex-post situation, implementation and operational aspects, impact on income and employment generation and to provide feedback / action points for participating agencies. The study covered rural road /bridge works sanctioned under RIDF Tranche 11. The reference year of the study was the calender year 2002. S The study covered 120 villagers drawn almost equally from six benefited villages. Of the total 120 samples 64 were farmers, 26 were daily labours engaged in agriculture, 5 were lorry loading workers, 15 shop owners and the rest were school teachers post office worker, etc. S On an average selection of the road to sanction of the work by issuing GO took almost six months. Similarly after sanction of the work also approval of tenders normally took three to six month time. Timely completion of work after commencement has been affected by the factors like delay in land acquisition- disputes on account of compensation, objection from revenue authorities, Fores;t Department, TN Electricity Board, Labour problems adverse climate, objection from local people, politicians, etc. E Total sketch of the road was originally earthem surface road with no cross drainage(CD) works and narrow with lot of dips, humps and undulations that was not fit for ordinary traffic especially during rainy season. The works in Parikavai-Kookal road commenced in 1996-97 and completed in 1998-99 works of Kookal-Palamputhur started in 1998-99 period and completed during 2000. 60 The width of BT surface was found to be 3.75m and the formation width checked and found to be 5.25m to 6.00m. The works were done with granate soling, WBM bottom lay and top layers premix with seal coating. Drainage lines with protection wall have been provided through out. In Kookal - Palamputhur road bridges were constructed in three stretches with a total length of 36.60 m. After the completion of the works, maintenance of first year were attended by the contractor as per the norms of the contract. The roads are formally transferred to the Panchayath Union for further annual maintenance. It was observed fi-om the field visit and also with the discussion with Panchayath Union and Highway(RR) that no maintenance works have been undertaken in the roads covered under the study. In Parikavai - Kookal road, B.T. Surface has been damaged in many places having lot of dips and waviness, especially the stretches in curves and reaches adjoining CD. Works. The BT surface is completely washed away in many places and the WBM layers are damaged and the pavements are dislocated including disturbing the V drain and posifion near to CD work. Total cost estimated for the road works was Rs.564.8 lakh but due to saving in expenditure, total actual cost on the works was relatively less at Rs. 463.77 with per km cost of investment of Rs.23.66 lakh (Rs.20.56 lakh per KM in case of Parikavai- Kookal road and Rs.26.09 lakh in the case of Kookal - Palamputhur road). As sanctioned, 90 per cent of the total cost of investment were covered under RIDF loan and the rest was contributed by Government of Tamil Nadu. Major benefits fi-om the investment were in farm sector on account of reduction in cost of cultivation, reduction in transportation cost, reduction in wastage while transporting, increase in price of product due to timely marketing, increase in net income due to change in cropping pattern, net increase in income of NFS(existing and new units) in the benefited area, savings in operating cost (fuel, maintenance, repair and replacement) of the vehicle operated in the road. 61 § Monetary value of benefit accrued due to the development of road and improved transportation is Rs. 131.81 lakh in the benefited area. S Annual recurring cost on maintaining road is Rs.41,840 per KM, relaying of the top layer/black top cost averaged to Rs.60,000 per KM per year. Total cost for maintenance and relaying per year is worked out to Rs. 19.96 for the entire road. Total interest accrued on the cost of the investment is worked out to Rs. 55.65 lakh per year. Hence, total annual cost of the investment made in the road under the study totalled at Rs.75.61 lakh. S Net incremental income of the improved road has been worked out as the difference between gross benefit accrued on account of the road and gross cost on the road. Since net benefit was worked out to Rs. 131.81 lakh and annual recurring cost was reckoned as Rs.75.61 lakh, net incremental income on the investment in road is worked out to Rs.56.20 lakh. S By adjusting to the economic price of labour and price changes, total investment cost was worked out to Rs.484.58 lakh at reference year price. Annual benefit accrued for the benefited areas from the rural road have been worked out to Rs.65.91 lakh during the first year after the completion of the road. Stabilised net income from the second year onwards was Rs. 131.81 lakh at reference year price. E The investment in rural road is observed economically viable with a positive net present value at Rs.137.14 lakh. The benefit cost ratio of the investment is also positive and good at 1 : 1.24. ERR of the investment calculated on discounted cash flow technique is worked out to 20.3 per cent. Sensitivity analysis results showed that the investment is sensitive to the variations in the cost and benefit of the investment. 62 The following benefits are also identified but not quantified due to lack of proper valuation technique. • Development of the social infrastructure has facilitated capital formation in agriculture atleast in private sector. On an average eight per cent more sample had owned dairy animal, four per cent more owned work animal, nine per cent more owned sheep/goat/poultry during the reference year when compared to pre development condition. Around 12 per cent of the total sample owned irrigation well which was improved to 19 per cent in the reference year. Only nine per cent owned irrigation pumpset that was improved to 17 per cent. • Along with improvement in asset holding, liability side also went in increasing. Dependence on banks and local money lenders were on the increase in the benefited area. Improved road condition has activated the economic activities both in farm and non farm sectors. However, the increased demand for credit was not utilised by the institutional lending agencies and the opportunity was tapped by private money lenders. • Increased economic activities has made available more employment opportunities in the service area of the road. Improvement of road condition also attracted farm machinery operators like, excavators, bulldozers, tractors, etc. and to extend their operation in this area and to speed up the process of land development. Though the operation of these machineries has replaced the labour in land development, it has not reduced the total job availability as the recurring employment generated in the newly brought in agricultural area and to shift in cropping pattern have more than compensated the job loss in land development. • Improved road condition and transportation facilities have facilitated promoters of Non Government Organisations, Banks, etc. to visit the area, form groups monitor them properly and credit link. In the service area of Kookal - Palamputhur road 26 SHGs have been formed, 20 has opened account with Canara Bank, Poomparai branch and 8 has been credit linked. " There was no change in the population of the telephone office, sub post office, sub health centre and Banks. There was no change in the availability of staff in these offices and quality of service offered. Performance of the only financial institutions in 63 the benefited area, Kookal Primary Agricultural Cooperative Bank was not satisfactory. The service area of the road had appropriate educational centres. School enrolling in the all the five schools in the benefited area has not increased tremendously. One of the prominent feature of the increase is that girl enrollment in the school has improved relatively better when compared to the boy enrollment and the increase was more strong after 1999-2000. Accessibility to hospital on emergencies was very difficult in the pre developed road condition. Improved road condition has changed the situation as hospital are easily accessible to the patient by direct bus or jeep. Improvements in the transportation facilities have motivated some voluntary agencies to extent immunisation programmes in these villages. Black topping and construction of protective walls and drainage lane by the sides of road and also culvert, etc., has prevented soil erosion considerably. Better road condition has brought more area under crop cultivation by converting tree growing area into farm land. This must have some adverse impact of soil erosion, chemical fertiliser / pesticide use in the converted area. Higher traffic through the forest area with the help of improved road condition had mixed repercussion on the forest environment. Better road condition has facilitated the forest officials for easy monitoring of the service area tp unauthorised entry by the intruders and ruining the trees and animals. Earlier, it was strongly believed by the local people that permanent road through the forest land was impossible owing to stringent laws protecting the forest. One of the worst damages created by the construction of the road is that the change in the belief in the society. It was observed that easy transportation has facilitated an easy escape way to the tree cutters. Though improved road condition has enabled easy travel with heavy head load, frequent monitorings of forest officials have adversely affected the firewood collection by women from neighbouring villages. Around 60 women among 150 women fire wood collectors from the benefited villages who were fully depended on the income from the sale of these wood were the worse affected. 64 Conclusion ^ Roads constructed under RIDF has benefited the rural people enormoulsy. The benefit of new/ improved connectivity has gone to the farming community by way of reduced transportation cost of inputs, increase in net income on account of change in cropping pattern, reduction wastage, marketing cost, increased price, etc. si Vehicle operators have also benefited with the road on account of reduction in the operating cost. Improved economic activities in the benefited area has also benefited other sectors by way of expanded business and improved net income. Improved road has also positively influenced the quality of life of the villagers in the benefited area. g<, However, it was also observed that complementary investments are yet to take up in the benefited area. Similarly expansion /improvement of service sector in the benefited are also found far from satisfactory. jsi Changes in the sectoral composition in the village economy, occupational structure, complementary investment, social characteristics, etc. need much more time to establish. 65 Recommendations The benefits accrued to the agricultural sector in the benefited area have been as per expected lines. However, in order to accentuate/sustain the results and also to smoother the implementation of the works, the following suggestions are made. "* Rural road/ bridge construction may be given priority under RIDF as the benefits (both direct and indirect) are substantial especially to farm sector. >=> A comprehensive approach on area development need to adopted. For instance integration of investment on road/bridge with programme like watershed development waste land development will further consolidate the benefits. "=> The ownership of the completed works were not formally accepted by the Panchayat Union who maintain that they have not received any formal communication to that effect. Such formalities may be done in meetings organising regularly in the presence of the District Collector to avoid confusion. '=J> The present fund position of the PU was stated to be so poor that it is not in position to under any kind of maintenance work of works finance under RIDF; An exclusive fund allocation is required to meet maintenance of works finance under RIDF. A portion of road tax collected in the State may be utilised for this purpose <=> In the cases of roads where benefits are direct, actual beneficiaries are identifiable and pricing is possible, a nominal user charge atleast to cover the maintenance cost of the road may be introduced. Depending upon the level of goods transporting through the road and extend of maintenance charges, toll may be fixed and the works collection and maintenance of the road may be assigned to a suitable NGO. •=> In order to reach benefit of improved accessibility, service department like health, education, agriculture, horticulture, animal husbandry as also banks have to extend their services to the benefited area. O Farm Mechanisation and capital formation in the area are very poor. Awareness on the importance of capital formation in agriculture, adoption of improved package of practice, pest management, development of NFS, food processing, etc. may be addressed through SHGs. <=> Technical sanction of works by the competent authority is time consuming. Assigning higher sanctioning power at DE level will help to reduce the time lag on this account. 66 APPENDIX PROFILE OF DINDIGUL DISTRICT No. Particulars Dindigui Tamil Nadu 1 Area(Ha.) 626664 12991322 2 Administrative Units i. No. of blocks 14 385 ii. No. of Taluks 7 201 iii. No. of Villages 357 16317 3 Population(Nos.) i. Total 1918960 62110839 ii. Male 966201 31268654 iii. Female 952759 30842185 iv. Sex ratio(No. of women per 1000 men) 986 986 4 Literacy rate (%) i. Total 69.83 73.47 ii. Male 80.29 82.33 iii. Female 59.3 64.55 iv. Density of population(people/Sq.km.) 317 478 5 Animal Population (Nos.) i. Cattle 203452 9362637 ii. Buffaloes 99628 14796185 iii. Sheep 237915 5373601 iv. Goat 178441 6324873 V. Poultry 633000 27343679 6 Land Utilisation (Ha.) Forest 138923 2133654 ii. Barren & uncultivable 36210 475820 iii. Non-agriculture use 64910 1985891 iv Culturable waste 8150 352154 V Prem. pasture and grazing land 6951 122953 vi Land under tree crops & groves 6439 255302 vii Current fallow 61672 1134280 viii Other fallow Land 66952 1228010 ix Net area sown 236457 5303294 X Area sown more than once 9287 1034815 xi Gross cropped area 245744 6338109 xii Cropping intensity (%) 104 119 67 No. Particulars Dindigul Tamil Nadu 7 Rainfall (mm) i Normal 836 978 ii Actual(2001-02) 611 897 8 Gross Area Irrigated(Ha.) i Canals 4870 1017388 ii Tanks 11251 656387 iii Wells 89476 1513492 iv Tube wells 836 284819 V Other sources 2234 18222 vi Gross Irrigated area 108667 3490308 vii Net area irrigated 99380 2887585 viii Irrigation intensity(%) 109 121 9 Operational Holdings(Nos.) 327550 8230000 i 0-1 ha. 218380 6040000 ii 1-2 ha. 60102 1310000 iii Above 2 ha. 49078 880000 10 Area under major crops (Ha.) i Paddy 22937 2080810 ii Cholam 41130 331349 iii Pearl millet (cumbu) 5624 129256 iv Finger millet (Ragi) 243 126955 V Maize 23002 81467 vi Other cerels 906 53820 vii Pulses 27976 687931 Total Food grains 121823 3500788 vii Sugarcane 1\%1 315316 viii Cotton 4194 169917 ix Groundnut 18736 699385 X Coconut 21183 323485 xi Mango 11936 107850 xii Cashew nut 404 89831 xiii Vegetable 17481 217314 11 Road Infrastructure(Kms.) i Cement concrete 81 1535 ii Bituminous 2594 69241 iii Waterbound macadam 2602 66777 iv Unsurfaced 1100 38604 Total 6377 176157 vi Commercial vehicles(Nos.) 8455 •iAAlAA vii Non-commercial vehicles (Nos.) 61413 3270004 68 REPORTS PUBLISHED UNDER THE EVALUATION STUDY SERIES OF THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT A. Reports published by the Head Office of NABARD SI. Year of Title of Evaluation Study Reports No Publishing *Minor Irrigation scheme <•.Construction of New Wells and Installation of 1 1977 Pumpsets thereon in Solapur District, Maharashtra *Minor Irrigation Scheme - Installation of shallow Tubewells in Kamal District, 2 1977 Haryana *Bhadra Land Development Project - Scheme for Reclamation and 3 1977 Development of Land, Karnataka *Land Development under Nagarjuna Sagar Project, Miryalguda Talluka, 4 1977 Andhra Pradesh 5 *Dairy Development Scheme in Jagadhri Block of Ambala District, Haryana 1978 6 *Dairy Development Scheme in Moga Area of Faridkot District, Punjab 1978 *Poultry Development Scheme in Mulkanoor, Karimnagar District, Andhra 7 1979 Pradesh 8 *Mechanised Fishing Boats in South Kanara District, Karnataka 1979 9 'Development of Acid Gardens in Nellore District,Andhra Pradesh 1981 10 'Groundwater Irrigation in Kota District, Rajasthan 1982 11 Minor Irrigation in Bhojpur District, Bihar 1982 12 Development of Grape Cultivation in Bijapur District. Karnataka 1982 13 River Lift Irrigation Scheme in Pune District, Maharashtra 1982 14 *Dairy Development Scheme in Western Uttar Pradesh 1982 15 *River Lift In-igation Scheme in Kolhapur District,Maharashtra 1982 16 Sheep Rearing in Nalgonda District, Andhra Pradesh 1982 'Development of Coffee Plantation in Lower Plains Area, Madurai District, 17 1982 Tamil Nadu 18 'Public Tubewells and River Lifts in Orissa 1984 (••V 19 Power Tillers in Hooghly District, West Bengal 1985 20 Commercial Poultry in Krishna District, Andhra Pradesh 1986 21 Dugwell Irrigation in Palghat District, Kerala 1986 22 Tractors in North Bihar 1986 69 23 Dairy Development in Darjeeling District, West Bengal 1987 Tractors in Varanasi, Ghazipur and Jaunpur Districts, of Eastern Uttar 24 1987 Pradesh 25 Tractors and Power Tillers in Tamil Nadu 1987 26 Minor Imgation in Muzaffarnagar District, Uttar Pradesh 1987 27 Dairy Development in Quilon District, Kerala 1987 28 Dugwell Irrigation in Dhenkanal District, Orissa 1988 29 Bamboo and Shallow Tubewells in Purnea District, Bihar 1988 30 Dugwell Imgation in Nasik District, Maharashtra 1988 31 Calf Rearing in North Arcot, Salem and Coimbatore Districts, Tamil Nadu 1988 32 Minor Irrigation in Allahabad District, Uttar Pradesh 1988 33 Coconut Development in Quilon District, Kerala 1988 34 Minor Irrigation in Purulia District, West Bengal 1988 35 Sprinkler Irrigation in Semi-arid Areas, Rajasthan 1989 36 Dugwell Irrigation in Amravati District, Mahrashtra 1989 37 Marine Fisheries in Coastal Gujarat and Mahrashtra 1989 Financing of Shallow Tubewells under Massive National Programme in 38 1989 Haryana 39 Financing of Apple Orchards in Hill Districts,Uttar Pradesh 1991 40 Work Animals and Animal Driven Carts in Meerut District, Uttar Pradesh 1991 41 Inland Fishery in Krishna District, Andhra Pradesh 1991 42 Bio-Gas Plants in Nainital and Rampur Districts,Uttar Pradesh 1991 43 Impact of NFS Investments 1994 44 Lift Imgation Schemes in Maharashtra 1995 Mandawan Watershed Project Under Indo German Watershed Development 45 1999 Programme-Maharastra 46 Self Help Groups in Tamil Nadu 2000 47 Micro Finance for Rural Peoaple- An Impact Study 2000 48 Won Farm Sector Investments - An Impact assessment 2002 SHG - Bank Linkage Programme for Rural Poor in India - An Impact 49 2002 Assessment * Reports are out of stock 70 B. Reports Published by Regional Offices of NABARD SI. Regional Series Publish Title of Evaluation Report No Office No. ed Year 1 Ahmedabad Poultry Development Scheme in Gujarat 1 1988 2 Dairy Development Scheme in Mehasana, Gujarat 2 1989 3 Lift Irrigation Scheme of Ul 71 40 Chennai Poultry Development in Salem, TamilNadu 1 1988 41 Dugwell Irrigation in Tamil Nadu 2 1989 42 Tea Gardens in Nilgiris District, Tamil Nadu 3 1990 43 M 1 Investments under MAP in Tamil Nadu 4 1991 44 Jasmine Investments in Salem and Madurai Districts,Tamil Nadu 5 1992 45 Mini Dairy in Coimbatore&Periyar Districts, Tamil Nadu 6 1994 46 Marine Fisheries in Tamil Nadu 7 1998 47 Sericulture in Tamil Nadu 8 1999 48 IRDP in Tamil Nadu 9 2000 49 Modern Rice Mills in Tamil Nadu 10 2001 50 Coconut Development in Tamil Nadu 11 2002 51 MICP under KfW - NB VII in Ramnad&Trichy District 12 2002 52 District Rural Industries Project in Tirunelveli district 13 2003 53 Cold Storages in Tamil Nadu 14 2003 54 Guwahati Private Shallow Tubewells & Lift Points in Assam 1 1989 55 Inland Fishery in West Tripura District, Tripura 2 1992 56 IRDP in Nagaon district 3 2000 57 FM (Power tiller) in Sibsagar district 4 2000 58 Hyderabad Public Tubewells in Khamman District, A P 1 1988 59 Development of Grape Gardens in Ranga Rectdy District, AP 2 1989 60 Dugwell Irrigation in Chitoor District, AP 3 1989 61 Mango Orchards in Krishna and Khammam, AP 4 1991 62 On Farm Development in Khammam&Krishna, AP 5 1995 63 Inland Fishery in West Godavari, Andhra Pradesh 6 1996 64 Dairy development in Krishna District, Andhra Pradesh 7 1999 65 Poultry layer Investment in Andhra Pradesh 8 2000 66 Food (Mango)Processing in Visakhapatinam and Chittor districts 9 2001 67 Sheep Rearing in Mahabubnagar and West Godavari districts 10 2002 68 Sericulture Investment in Andhra Pradesh 11 2003 69 Jaipur Minor Irrigation Structures in Kherwara P.S., Udaipur District 1 1988 70 Tractors in Alwar District, Rajasthan 2 1991 71 Market Yard in Kekri - Ajmer District, Rajasthan 3 1991 72 Borewell in Jodhpur District, Rajasthan 4 1993 73 IRDP in Alwar District, Rajasthan 5 1995 74 Poultry in Ajmer District, Rajasthan 6 1995 75 Sprinkler Irrigation in Barmer District, Rajasthan 7 1997 76 Dairy Schemes in Bharatpur Districts 8 1999 77 Water Management Schemes in Jaipur Districts 9 2000 78 Minor Irrigation in Bikaner district 10 2001 79 Orange Cultivation in Jhalawar district 11 2002 72 80 Jammu IRDP in Baramullah District, Jammu & Kashmir 1 1992 81 Tractors in Jammu District, Jammu & Kashmir 2 1995 82 Kolcutta Inland Fisheries Scheme in Nadia, West Bengal 1 1987 83 Betelvine Gardens in Midnapore, West Bengal 2 1989 84 Bullock and Bullock carts in Malda, West Bengal 3 1991 85 Poultry Farming in (Broiler) in Midnapur District, West Bengal 4 1999 86 Ml Schemes in Birbhum District, West Bengal 5 2000 87 Floriculture in Midnapore District of West Bengal 6 2003 88 Lucknow Minor Irrigation Scheme in Jhansi District, UP 1 1988 89 Tractors in Western Uttar Pradesh 2 1992 90 Inland Fishery in Azamgarh & Deoria Districts,UP 3 1994 91 NFS in Moradabad District, Uttar Pradesh 4 1994 92 Saghan Mini Dairy, Allahabad District, UP 5 1996 93 Mushroom Cultivation in Dehradun District, U P 6 1997 94 Grape Gardens in Muzaffarnagar District, UP 7 1998 95 Ml in Rae Bareily District, Uttar Predesh 8 1998 96 Patna Shallow/ Tubewells in Bihar 1 1988 97 Deep Tubewells in Bihar 2 1989 98 Dairy Development in Begusarai & Singhbhumi in Bihar 3 1989 99 Ml Schemes in Samastipur District, Bihar 4 1996 4 100 Pune Lift Irrigation Schemes in Ahmednagar District 1 1988 101 Well Irrigation in Aurangabad District 2 1991 102 Poultry Development in Pune District 3 1991 103 Grape Gardens in Nasik District 4 1993 104 Land Development in Kukkadi Project 5 1995 105 IRDP in Yavatmal District 6 1998 106 Farm Mechanisation in Ahmednagar district 7 1999 107 Post Harvest Centres (pre cooling etc) for export of Grapes 8 2001 108 Rice Mills in Maharashtra 9 2003 109 Shimla Dairy Development in Mandi district 1 1997 110 Thiruvanan Betelvine gardens in Trivandrum District, Kerala 1 1988 111 thapuram Broiler Poultry Development in Ernakulam District, Kerala 2 1990 112 Development of Rubber Plantation in Kottayam District, Kerala 3 1991 113 Fisheries Development in Kollam District, Kerala 4 1992 114 ~ Farm mechanisation in Palakkad and Ernakulam Districts 5 1995 115 RNFS in Malappuran and Kozikiode Districts, Kerala 6 1998 116 Sprikler Irrigation in Arecanut garden in Kasaragod district 7 2002 117 Dairy development in Kollam district 8 2002 118 Ml in Kasargod and Kannur District in Kerala 9 2003 73 4